1.2.15. Provisions (other than employee benefits) and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be
made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based
on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the note 32.7
Contingent assets are not recognised in the financial statements.
Onerous contracts
A contract is considered to be onerous when the expected economic benefits to be derived by the Company from
the contract are lower than the unavoidable cost of meeting its obligations under the contract.
The provision for an onerous contract is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before such a provision is made, the Company
recognises any impairment loss on the assets associated with that contract.
1.2.16. Leases
Lease Identification
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.
The Company's lease asset primarily consist of lease for buildings. The Company assesses whether a contract
contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease
and
(iii) the Company has the right to direct the use of the asset.
Lessee Accounting
Ind AS 116 “Leases” sets out the principles for the recognition, measurement, presentation and disclosure of leases
for both lessees and lessors.
Recognition
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term and
lease liability at the lease commencement date.
Measurement of ROU Asset
The cost of the right of- use asset measured at inception comprises of the amount of the initial measurement of the
lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives
received, plus any initial direct costs incurred.
Subsequent Measurement of ROU Asset
The right-of-use assets is subsequently measured at cost less any accumulated depreciation and accumulated
impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of use assets is
depreciated using the straight-line method from the commencement date over the lease term life of right-of-use
asset.
Measurement of Lease Liability
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating
the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do
not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in
the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease
payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
Subsequent Measurement of Lease Liability
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting
from a change in an index or rate used to determine such lease payments) or a change in the assessment of an
option to purchase the underlying asset.
Short-Term and Low-Value Leases
The company has elected not to recognize assets and liabilities for (a) short- term leases (for a period of twelve
months or less) and (b) leases of low value assets. For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing cash flows.
Finance Lease
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as
finance leases. The lower of fair value of asset and present value of minimum lease rentals is capitalized as fixed
assets with corresponding amount shown as lease liability. The principle component in the lease rentals is adjusted
against the lease liability and interest component is charged to profit and loss account.
Company as a lessor
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance
lease.
The Company recognises lease payments received under operating leases as income on a straight-line basis over
the lease term.
In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor's net investment in the lease.
In the case company has entered into lease agreements for IT hardware & same are deployed to customers under
service contracts & under the service contracts the customers have full control and use of the assets during the term
and are entitled to acquire the assets at the end of the term, the Company derecognises the Right-of-Use assets as
Financial Assets, The corresponding lease liabilities remain recognized
1.2.17. Financial instruments
Financial assets (other than trade receivables) and financial liabilities are recognized when the Company becomes
a party to the contractual provisions of the financial instrument. All financial assets and financial liabilities contracts
are initially measured at fair value adjusted for transaction costs, and where such price is different from fair value, at
fair value. Trade receivables are recognized at their transaction price as the same do not contain significant financing
component.
Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from, as the case
may be, the fair value of such financial assets or liabilities on initial recognition. T ransaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.
Classification and subsequent measurement of financial assets
For the purpose of subsequent measurement financial assets are classified and measured based on the entity's
business model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:
a. Amortized cost
b. Fair Value Through Other Comprehensive Income (FVTOCI) or
c. Fair Value Through Profit and Loss (FVTPL)
All financial assets are reviewed for impairment at least at each reporting date to identify whether there is any
objective evidence that a financial asset or a Company of financial assets is impaired. Different criteria to determine
impairment are applied for each category of financial assets, which are described below.
Financial assets at amortized Cost
Financial assets at amortized Cost Includes assets that are held within a business model where the objective is to
hold the financial assets to collect contractual cash flows and the contractual terms gives rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.
These assets are measured subsequently at amortized cost using the effective interest method. The loss allowance
at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure.
The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition.
Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)
Includes assets that are held within a business model where the objective is both collecting contractual cash flows
and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. At initial application of Ind As 109,
the Company, based on its assessment, makes an irrevocable election to present in other comprehensive income
the changes in the fair value of an investment in an equity instrument that is not held for trading. These selections
are made on an instrument-by- instrument (i.e., share-by-share) basis. If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or
losses and foreign exchange gains and losses, are recognized in other comprehensive income. There is no recycling
of the amounts from OCI to profit or loss, even on sale of investment. The dividends from such instruments are
recognized in statement of profit and loss.
The fair value of financial assets in this category are determined by reference to active market transactions or using
a valuation technique where no active market exists. The loss allowance at each reporting period is evaluated based
on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss
allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial recognition. The loss allowance shall be recognized in
other comprehensive income and shall not reduce the carrying amount of the financial asset in the balance sheet.
Financial assets at Fair Value Through Profit and Loss (FVTPL)
Financial assets at FVTPL include financial assets that are designated at FVTPL upon initial recognition and financial
assets that are not measured at amortized cost or at fair value through other comprehensive income. All derivative
financial instruments fall into this category, except for those designated and effective as hedging instruments, for
which the hedge accounting requirements apply. Assets in this category are measured at fair value with gains or
losses recognized in profit or loss. The fair value of financial assets in this category are determined by reference to
active market transactions or using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and
credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount
equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly
since initial recognition. The loss allowance shall be recognized in profit and loss.
1.2.18. Impairment
a) Impairment of financial instruments
The Company recognises loss allowances for expected credit losses on:
Financial assets measured at amortised cost;
At each reporting date, the Company assesses whether financial assets are carried at amortised cost. A financial
asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows
of the financial asset have occurred.
The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected credit losses:
- debt securities that are determined to have low credit risk at the reporting date; and
- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected
life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.
12-month expected credit losses are the portion of expected credit losses that result from default events that are
possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less
than 12 months).
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and
when estimating expected credit losses, the Company considers reasonable and supportable information that is
relevant and available without undue cost or effort. This includes both quantitative and qualitative information and
analysis, based on the Company's historical experience and informed credit assessment and including forward¬
looking information.
Measurement of expected credit losses
Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance
with the contract and the cash flows that the Company expects to receive).
Presentation of allowance for expected credit losses in the balance sheet
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of
the assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no
realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not
have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the
write-off.
b) Impairment of non-financial assets
The Company's non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then the asset's
recoverable amount is estimated.
For impairment testing, assets that do not generate independent cash inflows are grouped together into cash¬
generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are
largely independent of the cash inflows of other assets or CGUs.
The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs
to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU
(or the asset).
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses are recognised in the standalone statement of profit and loss. Impairment loss recognised
in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then
to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.
1.2.19. Share based payment transactions:
Employee Stock Option Plans (“ESOPs”):
The fair value of options determined at the grant date is recognized as an employee expense on a straight line
basis (on the basis of multiple vesting of options granted), with a corresponding increase in other equity under
“Employee Stock Options Outstanding account”, over the vesting period of the grant, where the employee becomes
entitled to the options. At the end of each reporting period, the Company revises its estimate of the number of
equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in the
Statement of Profit and Loss such that the cumulative expenses reflects the revised estimate, with a corresponding
adjustment to the “Employee Stock Options Outstanding account”.
Stock Options are granted to eligible employees in accordance with “Dynacons - Employees Stock Option Plan 2020”
(ESOP 2020), as approved by the Shareholders in accordance with the SEBI (Share Based Employee Benefits)
Regulations, 2014 which was amended by the Board of Directors of the Company to align with the provisions of the
SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Under Ind AS 102 on Share based Payment, the cost of stock options is recognised based on the fair value of stock
options as on the grant date.
1.2.20. Earnings per share
Basic earnings per equity share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted for
events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse
share split (consolidation of shares). In this scenario, the number of equity shares outstanding increases without
an increase in resources due to which the number of equity shares outstanding before the event is adjusted for the
proportionate change in the number of equity shares outstanding as if the event had occurred at the beginning of the
earliest period reported.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.
15.4 The Company has allotted 12,200 equity shares of face value ' 10 each on January 03, 2025, to the eligible employees
at an exercise price of ' 10 per share as per the 'Dynacons - Employees Stock Option Plan 2020' ('ESOP - 2020')
15.5 As per records of the company, including its register of shareholders/members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of
shares.
15.6 The company has only one class of equity shares having a par value of ' 10 per share. Each shareholder is eligible for
one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets
of the company in proportion to their shareholdings.
15.7 During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as fully paid up
pursuant to contract without payment being received in cash, no bonus shares were issued and there was no buy-back
of equity shares of the Company.
15.8 The Company declares and pays dividends in Indian Rupees. The Board of Directors in their meeting held on August
12,2024, declared an interim dividend of ' 0.50/- per share on the nominal value of ?10/-each and paid to all the eligible
shareholders as at August 23, 2024. The interim dividend paid is considered as the final dividend for the financial year
ended 31st March, 2025.
15.9 Shares reserved for issue under option
For details of shares reserved for issue and shares issued under the Employee Stock Option Plan (ESOP) of the Company,
refer note 32.3. These options are granted to the employees subject to cancellation under circumstance of his cessation
of employment with the Company on or before the vesting date.
32.2. EMPLOYEE BENEFIT OBLIGATIONS
Defined benefit plans - Gratuity:
Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable
Indian laws, the Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible
employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion
of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn
salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the
reporting date.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis
presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that
the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods
and assumptions used in preparing the sensitivity analysis from prior years.
Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees
at the rate 12% of basic salary as per regulations. The contributions are made to registered provident fund administered
by the government. The obligations of the Company is limited to the amount contributed and it has no further contractual
nor any constructive obligation. Employer's contribution to Provident Fund during the year is 139.05 Lakh (P.Y. 126.53
Lakhs)
32.3. Employee Stock Option Plan
The Company had Dynacons - Employees Stock Option Plan 2020 (ESOP - 2020) which provided for the grant of
equity shares of the Company to the eligible employees of the Company. The Board of Directors recommended the
establishment of the ESOP 2020 on September 03, 2020 and shareholders approved the recommendations of the
Board of Directors in Annual General Meeting held on September 30, 2020. ESOP - 2020 was further amended by the
Nomination and Remuneration Committee and Board of Directors of the Company at their meetings held on March 10,
2022 in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (SEBI SBEB
and Sweat Equity Regulations). The maximum aggregate number of shares that may be awarded on the grant of stock
options under ESOP 2020 is 15,00,000 equity shares. Under ESOP 2020, the Company had approved grant vide its
Nomination and Remuneration committee meeting held on August 10, 2022 & January 09,2025 under ESOP 2020 details
of which are tabulated as Grant I & Grant II below. As per the plan, option granted under ESOP- 2020 would vest over a
period of 1 year to 2 years from the date of grant of such options. The Plan is Equity Settled Plan.
ii) Fair Value Measurements (Ind AS 113):
Fair value measurement hierarchy
The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company
determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date and in the principal or most advantageous market
for that asset or liability.
The Company holds certain fixed income investments and other financial assets, which must be measured using the
fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques
based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect
market data obtained from independent sources, while unobservable inputs reflect the Company's assumptions
about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value.
Financial assets and Financial liabilities measured at fair value in the balance sheet are grouped into three Levels of
fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:
> Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
> Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level
1 inputs; and
> Level 3: Unobservable inputs for the asset or liability.
The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured
at fair value on a recurring basis at 31st March 2025 and 31st March 2024,:
Loans, cash and bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have
fair values that approximate to their carrying amounts due to their short-term nature.
32.9. Nature and extent of risks arising from financial instruments and respective financial risk management objectives
and policies
The Company's principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial
guarantee contracts. The main purpose of these financial liabilities is to finance the Company's operations and to provide
guarantees to support its and group companies' operations. The Company's principal financial assets include loans, trade
and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company
also enters into derivative transactions to hedge and holds short term investments. The Company is exposed to market
risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The
Company's senior management is supported by the Group T reasury Team that advises on financial risks and the appropriate
financial risk governance framework in accordance with the Company's policies and risk objectives. All derivative activities
for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience
and supervision. It is the Group's policy that no trading in derivatives for speculative purposes may be undertaken.
The Board of Directors review and agree on policies for managing each of these risks, which are summarized below:
a) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed
to this risk for various financial instruments, for example trade receivables, investment in mutual funds etc.
Trade and other receivables
Customer credit is managed by each business unit subject to the Company's established policies, procedures and
control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on
90 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding
customer receivables are regularly monitored.
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices
and the business environment in which the entity operates. Loss rates are based on actual credit loss experience
and past trends.
The Company continuously monitors defaults of customers and other counterparties, identified either individually or
by the Company, and incorporates this information into its credit risk controls. The Company's policy is to transact
only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters.
In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single
counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large
number of customers in various geographical areas. Based on historical information about customer default rates
management consider the credit quality of trade receivables that are not past due or impaired to be good.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in mutual
funds. The Company has diversified portfolio of investment with various number of counterparties which have
secure credit ratings hence the risk is reduced. Individual risk limits are set for each counterparty based on financial
position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by
the Management of the Company.
b) Liquidity risk
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs
by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows
and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used
in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and
week-to week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash
requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This
analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.
Liquidity risk is managed by Company through effective fund management. The Company's principal sources
of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The
Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated
from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in
particular its cash resources and trade receivables. The Company's existing cash resources and trade receivables
significantly exceed the current cash outflow requirements. Cash flows from trade receivables are all contractually
due within 90-120 days based on the credit period. The Company's objective is to maintain a balance between
c) Market risk
The Company is exposed to market risk through its use of financial instruments and specifically to currency risk,
interest rate risk and certain other price risks, which result from both its operating and investing activities.
Foreign currency risk
Most of the Company's transactions are carried out in Indian rupees. Exposures to currency exchange rates arise
from the Company's overseas sales and purchases, which are primarily denominated in US dollars (USD)
To mitigate the Company's exposure to foreign currency risk, cash flows are continuously monitored.
Foreign currency denominated financial assets and financial liabilities which expose the Company to currency risk
are disclosed below. The amounts shown are those reported to key management translated at the closing rate: -
Sensitivity analysis
The following table details the Company's sensitivity to a 5% increase and decrease in the Rupee against the relevant
foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management
personnel and represents management's assessment of the reasonably possible change in foreign exchange rates.
This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end
of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary
items and adjusts their translation at the period end for a 5% charge in foreign currency rate. This analysis assumes
that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and
purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised
directly in reserves, the impact indicated below may affect the Company's income statement over the remaining life
of the related fixed assets or the remaining tenure of the borrowing respectively.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates are
managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.
The Company's investments in term deposits (i.e. certificates of deposits) with banks are at fixed interest rate and
therefore do not expose the company to significant interest rate risk.
32.13. COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:
Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017
32.14. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM
a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company ("Ultimately Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company, shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
32.17. The management have neither come across any instance of fraud on or by the Company, noticed or reported during
the financial year.
32.18. The Company does not hold any benami property and no proceedings have been initiated or pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder.
32.19. There are no charges or satisfaction yet to be registered with Registrar of companies (ROC).
32.20. The Company did not have any transactions which had not been recorded in the books of accounts that had been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).
32.21. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company.
As per our report of even date attached For and on behalf of the Board of Directors
For M S P & CO. Dynacons Systems & Solutions Ltd.
Chartered Accountants CIN No: L72200MH1995PLC093130
Firm Registration 107565W
Shirish Anjaria Parag Dalal
Chairman cum Managing Director Whole-time/Executive Director
DIN : 00444104 DIN :00409894
M. S. PARIKH Dharmesh Anjaria Pooja Patwa
Partner Whole-time/Executive Director & Company Secretary &
Membership No. 08684 Chief Financial Officer(CFO) Compliance Officer
DIN : 00445009 Membership No. A60986
Mumbai : May 24, 2025
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