| We have audited the accompanying financial statements of DYNAMIC
MIRCOSTEPPERS LIMITED f the Company") which comprises the Balance Sheet
as at 31st March. 2014 and the Statement of Profit and Loss and Cash
Flow Statement for the year ended, and a summary of significant
accounting policies and other explanatory information. These financial
statements are the responsibility of the company's management. The
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the Standards on Auditing
issues by the Institute of Chartered Accountants of India. Those
standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as voll as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies { Auditor's Report ) Order , 2003 {'the
order") issued by the Central Government in terms of sub-section (4A)
of section 227 of the Act, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the ANNEXURE referred to above we report
that
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
Audit.
(ii) In our opinion proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
(iii) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, the Statement of Profit and
Loss and Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with General Circular
15/2013 dated 13 September 2013, issued by the Ministry of Corporate
Affairs, in respect of section 133 of the Companies Act, 2013.
(v) On the basis of the written representation received from the
Directors, as on 31st March, 2014 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, Statement of Profit &
Loss and Cash Flow Statement give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2014,
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in clause 1 of paragraph on Report on Other Legal
and Regulatory Requirements of our report of even date
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets
(b) The fixed assets have been physical'y verified by the management
during the year at reasonable intervals; which in our opinion is
reasonable, having regard to the size of the company and the nature of
assets. Physical verification was carried out and this revealed no
material discrepancies.
(c) In our opinion, and according to the information and explanation
provided to us, no substantial part of the fixed assets belonging to
the company has not been disposed off thereby affecting the going
concern.
2. (a) The Company has not granted any Loans, secured or unsecured to
companies, firms or other Parties covered in the Register maintained
under section 301 of The Companies Act, 1956. Accordingly, the provisi
-ons of the clauses 4(iii)(a) to (d) of the order are not applicable
to the company and hence not commented upon.
(b) The Company has taken unsecured loans from 2 parties covered in the
register maintained under section 301 of the companies Act. 1956. The
maximum amount involved during the year was Rs. 61,96,030/- and the year
end balance was Rs. 61,96,030/- (Prev. Yr : Rs. 55,71,030/-).
(c) The rate of interest and other terms and conditions of loans taken
are prima facie not prejudicial to the interest of the company.
(d) The company has not paid any amount towards the repayment of the
above said loans the same being not due.
3. There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, the procedure &
policies adopted by the Management ensure smooth functioning thereby
preventing errors & frauds..
4. (a) The particulars of contracts or arrangement referred to in
Section 301 of the Companies Act, 1956 that need to be entered into
the register maintained under section 301 of the Act have been so
entered.
(b) According to the information and explanation given to us, there has
been no trading activities or any arrangement of similar nature during
the year.
5. The company has not accepted deposits from the public, and hence the
directives issued by the Reserve Bank of India and the provisions of
sections 58A and 58AA of the Act and the rules framed there under,
would not apply.
6. The company is not having paid up capital and reserves exceeding Rs.
50 lacs or having Annual Average Turnover exceeding Rs. 5 Crores and
hence requirement of having an internal Audit system is not applicable
to it.
7. The maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub-section (1) of section 209
of the Act.
8. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund
Education and Protection Fund, Employees' State insurance, Income
Tax,Wealth Tax, Custom Duty, Excise Duty, Cess and any other statue
dues, extent applicable to it.
(b) There are no dues of Sales Tax/ incorrteOtax/ Cujwffl Duty / Wealth
Tax/ Excise Duty/ Cess as at 31st March 2014, for a period of more than
six months from the date they became payable.
9. The company's accumulated losses at the end of the year are more
than fifty percent of its Networth and the company has incurred a cash
loss of Rs. 6,30,524/- during the year (P.Y. Rs. 5,07,060/-)
10. The company has has not taken any loan from Banks or Financial
Institution, accordingly disclosure referred to therein clause 4(xi) of
the order is not applicable to the company.
11. The company has not granted guarantee for bank guarantees issued by
Banks to others.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to information and explanations given
to us, the company is not a chit fund or a Nidhi Mutual Benefit Fund
society. Therefore clause no 4(xiii) of Companies (Auditor's Report)
Order, 2003 (as amended) are not applicable to the Company.
14. In our opinion and according to information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore clause no 4(xiv) of
Companies (Auditor's Report) Order, 2003 amended) are not applicable to
the Company.
15. In our opinion and according to information and explanations given
to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. In our opinion and according to information and explanations given
to us, there were no funds raised on term loan basis. Accordingly, the
provisions of Clause 4(xvi) of the order are not applicable to the
company.
17. The company has not made any preferential allotment of shares to
parties or companies covered in the Register maintained under section
301 of the Act.
18. The company has not issued any debentures.
19. The Company has not raised any money through a public issue during
the year.
20. Based upon the audit procedures performed for the purpose of
reporting the true & fair view of the Financial Statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has not been noticed or reported
during the year.
For: P.JASANI & ASSOCIATES
[Chartered Accountants]
FRN:-116628W
P R. JASAN
( Partner)
Mem. No. 032477
Place : MUMBAI
Date : 29.05.2014
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