We have audited the Standalone Financial Statements of Dynamic Cables Limited ("the Company"), which comprise the balancesheet as at 31st March 2025, and the statement of Profit and Loss (including other comprehensive income), and statement of cashflows, and Statement of changes in equity, for the year then ended, and notes to the standalone financial statements, including asummary of material accounting policies and other explanatory information (hereinafter referred to as "Standalone FinancialsStatements")
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalonefinancial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give atrue and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generallyaccepted in India, of the state of affairs of the Company as at March 31, 2025, and its profit (including other comprehensiveincome), Statement of changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the CompaniesAct, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalonefinancial statements of the current period. These matters were addressed in the context of our audit of the standalone financialstatements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We havedetermined the matter described below to be the key audit matter to be communicated in our report.
Key Audit Matter
Auditor's Response
Revenue Recognition:
Based on its business model in Cables & Conductor, thecompany has many different types of terms of deliveryarising from different types of performance obligationswith its customers. Revenue from sale of goods isrecognised when control is transferred to thecustomers and when there are no other unfulfilledobligations. This requires detailed analysis of eachcontract regarding timing of revenue recognition.Inappropriate assessment could lead to risk of revenuegetting recognised before control has beentransferred. Accordingly, timing of recognition ofrevenue is a key audit matter.
Our audit procedures over the recognition of revenueincluded the following:
• We assessed the compliance of the company's revenuerecognition accounting policies against the requirements ofIndian Accounting Standards ("Ind AS") to identify anyinappropriate policy;
• We tested the design, implementation and operatingeffectiveness of key internal financial controls and processesfor revenue recognition along with effectiveness ofinformation technology controls built in automatedprocesses;
•
On a sample basis, we tested revenue transactionsrecorded during the year, by verifying the underlyingdocuments, including invoices and shipping documentsfor assessment of fulfillment of performance obligationscompleted during the year; We analyzed the timing ofrecognition of revenue and any unusual contractualterms;
On a sample basis, we tested the invoice and shippingdocuments for revenue transactions recorded during theperiod closer to the year end and subsequent to the yearend to verify recognition of revenue in the correct period.
Trade Receivable
Our audit procedure included, among others: Ý
Trade receivables is a significant item in the Company'sfinancial statements as at March 31, 2025 and
Evaluated the accounting policy of the company.
assumptions used for estimating the credit loss oncertain receivables is an area which is determined by
Inquired with senior management regarding status of
management's judgment. The Company makes anassessment of the estimated credit losses on certain
collectability of the receivable.
trade receivables based on credit risk, project status,
Amount recovered subsequent to the Balance Sheet
past history, latest discussion/ correspondence with thecustomer. Given the significance of these receivables in
date.
the financial statements as at 31st March, 2025, we
Discussion of material outstanding balances with the
determined this to be a key audit matter.
audit committee.
Assessed the information/assumptions used by themanagement to determine the expected credit losses byconsidering credit risk of the customer, cash collection,and the level of credit loss over time. Based on our workas stated above, no significant deviations were observedin respect of management's assessment of valuation oftrade receivables.
The Company's Board of Directors are responsible for the other information. The other information comprises the informationincluded in the Annual Report, but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assuranceconclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact, since these reports are expected to be made available to us after the date of this audit report hencecurrently, we have nothing to report in this regard.
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") withrespect to the preparation of these financial statements that give a true and fair view of the financial position, financialperformance, and cash flows of the Company in accordance with the accounting principles generally accepted in India,including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for
• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and, based on the auditevidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubton the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required todraw attention in our auditor's report to the relateddisclosures in the financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of ourauditor's report. However, future events or conditions maycause the Company to cease to continue as a going concern.
preventing and detecting frauds and other irregularities;selection and application of appropriate accountingpolicies; making judgments and estimates that arereasonable and prudent; and design, implementation andmaintenance of adequate internal financial controls, thatwere operating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant to thepreparation and presentation of the financial statementsthat give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
In preparing the financial statements, the Board ofDirectors is responsible for assessing the Company's abilityto continue as a going concern, disclosing, as applicable,matters related to going concern and using the goingconcern basis of accounting unless the Board of Directorseither intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeingthe company's financial reporting process.
Auditor's Responsibilities for the Audit of theFinancial Statements
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a whole arefree from material misstatement, whether due to fraud orerror, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurancebut is not a guarantee that an audit conducted inaccordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on thebasis of these standalone financial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement of thefinancial statements, whether due to fraud or error, designand perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resultingfrom fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that areappropriate in the circumstances. Under Section143(3)(i) of the Act, we are also responsible forexpressing our opinion on whether the company hasadequate internal financial controls with reference tostandalone financial statements in place and theoperating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates andrelated disclosures made by management.
• Evaluate the overall presentation, structure and content of thefinancial statements, including the disclosures, and whether thefinancial statements represent the underlying transactionsand events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding thefinancial information of the company to express an opinion on thestatement.
Materiality is the magnitude of misstatements in the standalonefinancial statements that, individually or in aggregate, makes itprobable that the economic decisions of a reasonablyknowledgeable user of the standalone financial statements may beinfluenced. We consider quantitative materiality and qualitativefactors in (i) planning the scope of our audit work and inevaluating the results of our work; and (ii) to evaluate the effectof any identified misstatements in the standalone financialstatements.
We communicate with those charged with governance regarding,among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide those charged with governance with a statementthat we have complied with relevant ethical requirements regardingindependence, and to communicate with them all relationships andother matters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.
(1) As required by the Companies (Auditor's Report) Order, 2020("the Order"), issued by the Central Government of India interms of sub-section (11) of section 143 of the Companies Act,2013, we give in the Annexure I statement on the mattersspecified in paragraphs 3 and 4 of the Order, to the extentapplicable.
(2) As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information andexplanations, which to the best of our knowledge andbelief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required bylaw have been kept by the Company so far as it appearsfrom our examination of those books
(c) The Balance Sheet, the Statement of Profit and Loss,and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements complywith the Accounting Standards specified under Section133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014.
(e) On the basis of the written representations received fromthe directors as on 31st March, 2025 taken on record bythe Board of Directors, none of the directors isdisqualified as on 31st March, 2025 from beingappointed as a director in terms of Section 164(2) of theAct.
(f) With respect to adequacy of Internal Financial Controlswith reference to financial statements of the Companyand the operating effectiveness of such controls, refer toour separate report in Annexure II. Our report expressesan Unmodified Opinion on the adequacy and operatingeffectiveness of the company internal financial controlsover financial reporting.
(g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements ofsection 197(16) of the Act, as amended:
In our opinion and to the best of our information andaccording to the explanations given to us, theremuneration paid by the Company to its directorsduring the year is in accordance with the provisions ofsection 197 of the Act.
(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in ouropinion and to the best of our information andaccording to the explanations given to us:
(i) The Company has disclosed the impact of pendinglitigations on its financial position in its financialstatements - Refer Note No. 39 to the financialstatements.
(ii) The Company did not have any long-term contractsincluding derivative contracts for which there were anymaterial foreseeable losses.
(iii) There were no amounts, which were required to betransferred to the Investor Education and ProtectionFund by the Company.
(iv) .a) The management has represented that Refer Note No.
52(n) to the financial statements, to the best of itsknowledge and belief, no funds have been advanced orloaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by thecompany to or in any other person(s) or entity(ies),including foreign entities ("Intermediaries"), with theunderstanding, whether recorded in writing or otherwise,that the Intermediary shall, whether, directly or indirectlylend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the company("Ultimate Beneficiaries") or provide any guarantee,security or the like on behalf of the Ultimate Beneficiaries.
(b) The management has represented Refer Note No. 52(n) tothe financial statements, that, to the best of its knowledgeand belief, no funds have been received by the companyfrom any person(s) or entity(ies), including foreign entities("Funding Parties"), with the understanding, whetherrecorded in writing or otherwise, that the company shall,whether, directly or indirectly, lend or invest in otherpersons or entities identified in any manner whatsoever byor on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee, security or thelike on behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures that have been consideredreasonable and appropriate in the circumstances, nothinghas come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (A) and (B) above contain anymaterial misstatement.
(v) Based on our examination which included test checks, thecompany has used an accounting software for maintainingits books of account which has a feature of recording audittrail (edit log) facility and the same has operatedthroughout the year for all relevant transactions recorded inthe software. Further, during the course of our audit we didnot come across any instance of the audit trail feature beingtampered with & the audit trail has been preserved by thecompany as per the statutory requirements.
For M/s A Bafna & Co.Chartered Accountants
Place: Jaipur FRN: 003660C
Date:13th May, 2025
Vivek Gupta
M.No. 400543UDIN:25400543BMLIFM2419