Dynacons Systems & Solutions Ltd. — Annual Report 2021

Jun 30, 2021

	DYNACONS
	EMPOWERSOLUTIONSTHAT
Date: June 30, 2021
To,BSE Limited	National Stock Exchange of India Limited
Phiroze Jeejeebhoy Tower,Dalal Street,	Exchange Plaza, C— 1, Block G,Bandra Kurla Complex, Bandra (East),
Mumbai — 400 001	Mumbai — 400051
Scrip Code- 532365	Symbol - DSSL
Sub: Outcome of Board Meeting held on June 30, 2021
	Pursuant to the Regulation 30 and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements)
	Regulations, 2015, we hereby inform you that in the meeting of the Board of Directors of the Company heldtoday i.e. on June 30, 2021, the Board has adopted Audited Standalone and Consolidated Financial Results for
same.	the quarter and year ended on March 31, 2021 along with Auditors Report with unmodified opinion for the
	Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we
enclose the following:1.	Adopted Audited Standalone and Consolidated Financial Results for the quarter/year ended on March
31, 2021 along with Auditors Report for the same.2.	Auditors' Reports with unmodified opinions on the aforesaid Audited Financial Results (Standalone and
Consolidated)	AuditReportpursuanttoRegulation33(3)(d)oftheSEBI(Listing
3.DeclarationofUnmodified
Obligations and Disclosure Requirement) Regulations, 2015.
	Further, in continuation of our letter dated June 30, 2021 and March 30, 2021 and in terms of the Dynacons
remain closed till 48 (Forty-Eight)	Systems & Solutions Limited Code of Business Conduct and Code to Regulate, Monitor and Report Trading byDesignated Person, the trading window for insiders has been closed from March 30, 2021 and shall continue tohours after the dissemination of the un-audited financialresults of the
Company (both days inclusive) for the quarter ended on June 30, 2021.
	We request you to kindly take the same on your record and acknowledge the receipt of same.
The meeting commenced at 430 P:m.and concluded at )» 30 pm,
Thanking you,
For DynaconsSystems & Solutions Ltd.
DharmeshAnjariaExecutiveDirector
00445009Din:
	Dynacons Systems & Solutions LimitedCIN NO : L72200MH1995PLC093130Certified ISO 9001:2008, ISO 14001:2015, ISO 20000-1:2011, ISO 27001:2013, CMMI Maturity Level 3

Sub: Outcome of Board Meeting held on June 30, 2021

• 1. Adopted Audited Standalone and Consolidated Financial Results for the quarter/year ended on March 31, 2021 along with Auditors Report for the same.
• 1. Auditors' Reports with unmodified opinions on the aforesaid Audited Financial Results (Standalone and Consolidated)
• 1. Declaration of Unmodified Audit Report pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015.

Dharmesh Executive Din: 00445009 Director Anjaria

Statement of Audited Standalone Financial Results for the Year Ended March 31, 2021

	DYNACONSSOLUTIONS	THAT	EMPOWER
	Statement of Audited Standalone Financial Results for the Year Ended March 31, 2021				(Rs in lakh)
Particulars		Quarter Ended	STANDALONE	Year Ended
Income from Operations	March 31, 2021]	Dec. 31, 2020	March 31, 2020]	March 31, 2021]	March 31, 2020
a) Net Sales/ Income from operationsb) Other Income	13,087.2020.38	15,382.8033.05	5,483.8549.55	43,593.93186.74)	32,794.50223.89
Total Income from OperationsExpensesa) Cost of material consumed	13,107.5815,349.84	15,415.8613,872.76	5,533.404,403.63	43,780.67)42,185.41	33,018.3927,557.92
b) Chanaes in Inventoriesc) Emplovee benefits expense	(3,763.55)650.06	195.26694.17	(58.43)574.31	(3,374.80)2,393.67	807.302,237.65
d) Finance Costse) Depreciation and amortization expense	144.8551.64	149.0829.65	234.8134.64	705.80125.80	758.19102.57
f) Other expensesTotal expenses (a to f)	232.1012,664.94	134.2915,075.20	131.855,320.81	535.3042,571.17	748.9132,212.54
Profit before taxTax expense	442.64129.15)	340.6668.12	212.5962.20	1,209.49287.24	805.85194.10
Net Profit for the periodOther comprehensive incomeA(i) Items that will not be reclassified to profit or loss	313.49	272.54	150.39	922.26	611.75
- Remeasurement of defined Benefit Plans- Gains and losses from investments in equity	(0.37)	(4.13).	(26.73)	(9.61)	(25.80)
	(0.16)0.00	0.260.00	0.690.00	0.000.00	0.69}0.00;
- Foreign Exchanae Gains or loss		3.85}	7.16	2.41	6.49
	0.09
	0.00	0.00	0.00	0.00	0.00
	0.00(0.44)	0.00(0.02)	0.00(18.87)	0.00	0.00
	313.05	272,52	131.52	(7.20)915.06	(18.61)593.14
EPS (N Profit)EPS (Total Comprehensive Income)	3.453.45	2,972.97	1.641.43	10.0810.09	6.676.47
EPS (N Profit)EPS (Total Comprehensive Income)	2.692.69)	2.972.97	1.641.43	7.887.88	6.676.47
			For Dynacons Systems & Solutions Ltd.
instrumentsA(ii) Income tax relating to items that will not bereclassified to profit or lossB(i) Items that will be reclassified to profit or lossB(ii) Income tax relating to Items that will bereclassified to profit or loss'Total other comprehensive income (A (i-ii) +B (i-ii)Total comprehensive incomeEarnings Per ShareBasicDiluted			for and on behalf of the Board of Directors		PALMS & S
			DharmeshAnjaria§.	aS a>/	eN
			Executive DirectorDin No: 00445009	£"a	( ( MUMBAI} = C=& /
MumbaiJun 30, 2021				t	A "Oy

PALMS & S Mumbai aS a > eN "a & / t A "Oy

Statement of Audited Consolidated Financial Results for the Year Ended March 31, 2021

	DYNACONS
	SOLUTIONS	THAT	EMPOWER
Statement of Audited Consolidated Financial Results for the Year Ended March 31, 2021
			CONSOLIDATED		(Rs in lakh)
Particulars	March 31, 2021]	Quarter Ended	Dec. 31, 2020 March 31, 2020	Year EndedMarch 31, 2021 March 31, 2020
Income from Operations
a) Net Sales/ Income from operationsb) Other Income	13,087.0220.31	15,382.8033.12	5,494.3255.73	43,593.68131.46	32,884.91172,96
Total Income from OperationsExpenses	13,107.34	15,415.92	5,550.05	43,725.14
					33,057.87
a) Cost of material consumed	15,349.84	13,872.76	4,408.09	42,185.41	27,640.72
b) Changes in Inventories	(3,763.55)	195.26	(58.43)	(3,374.80)	807.30
c) Employee benefits expensed) Finance Costs	650.06144.85	694.17	574.31	2,393.67	2,237.65
) Depreciation and amortization expense	51.57	149.0829.65	234.8134.64	705.80125.80	758.19102.57
f) Other expenses	241.19	133.52	136.08	543.89	754.88
Total expenses (a to f)	12,673.96	15,074.44	§,329.51	42,579.76	32,301.32
Profit before tax	433.38	341.49	220.54	1,145.38)	756.55
Tax expense	133.56	68.12	53.06	291.65	185.17
Net Profit for the periodOther comprehensive income	299.82	273.37	167.48	853.73	571.38
A(i) Items that will not be reclassified to profit or loss
- Remeasurement of defined Benefit Plans	(0.37)	(4.13)	(26.73)	(9.61)	(25.80)
- Gains and losses from investments in equityinstruments	7.93	0.25	0.69	7.93
- Foreign Exchanae Gains or loss	0.00	1.28	6.17	0.00	0.69,6.17
A(ii) Income tax relating to items that will not bereclassified to profit or loss	0.09	(0.25)	6,80,	2.41	6.49]
B(i) Items that will be reclassified to profit or lossB(ii) Income tax relating to Items that will be	0.00	0.00	0.00	0.00	0.00
reclassified to profit or lossTotal other comprehensive income (A (i-ii) +B (i-ii)	0.007.46	0.00(2.35)	0.00(26.67)	0.000.73	0.00(12.45)
Total comprehensive income	307.28	271.01	140.81	854.46	558.94
Earnings Per Share
BasicEPS (N Profit)	3.30	2.98	1.83	9.33,	6.23
EPS (Total Comprehensive Income)	3.38	2.95	1.54	9.34	6.09
DilutedEPS (N Profit)EPS (Total Comprehensive Income)	2.582.64	2.982.95	1.831.54	7.29	6.23

Mumbai

For Dynacons Systems & Solutions Ltd. for and on behalf of the Board of Directors _o =

Dharmesh S. Anjaria SGN four Jun 30, 2021 Executive Director =! Matias Din No: 00445009 3. UME

Dynacons Systems & Solutions Limited

CIN NO : L72200MH1995PLC093130

Certified ISO 9001:2008, ISO 14001:2015, ISO 20000-1:2011, iSO 27001:2013, CMMI Maturity Level 3

Registered Office : 78, Ratnajyot Industrial Estate, Irla Lane, Vile Parle West, Mumbai - 400 056. Corporate Office : 3rd Floor, A Wing, Sunteck Centre, Subhash Road, Near Garware Chowk, Vile Parle East, Mumbai - 400 057. 'GP +91-22-66889900 | Wim +91-22-26716641 | © www.dynacons.com | a sales@dynacons.com | 1860-123-4444

Audited Standalone and Consolidated Statement of Assets & Liabilities as on March 31, 2021

	DYNACONS
SOLUTIONS	THAT	EMPOWER
Audited Standalone and Consolidated Statement of Assets & Liabilities as on March 31, 2021Particulars	STANDALONE	(Rs in lakh)		(Rs in lakh)
	Year Ended31/03/2021	Year Ended31/03/2020	CONSOLIDATEDYear Ended31/03/2021	Year Ended31/03/2020
A ASSETS	Audited	Audited	Audited	Audited
1 Non-current assets(a)Property, Plan and Equipment
(b}Riqht-of-use as set(c)Investment in Subsidiaries	360.35278.735.05	178.67195.605.05	360.35278.73-	178.67195.60-
(d)Financial Assetsi) Investments	39,00	1.07	39.00	1.07
ii) Long-term loans and advances(e)Deferred Tax Assets (Net)	"24.95	ii11.49	=24.95	i11.49
Sub-total-Non-Current Assets2 Current assets	708.08	391.89	703.03	386.83
(a)Inventories(b)Financial Assets	4,246.66	871.85	4,246.66	871.85
i) Trade receivablesii) Cash and cash equivalents	10,189.532,302.47	8,399.571,660.68	10,189.532,325.92	8,399.571,744.47
iii) Short-term loans and advancesiv) Other Financial Assets(c)Other Current Assets	19.87454.66134.61	14,21265.26611.31	19.87454.66	14.21265.26
Sub-total-Current Assets	17,347.79	11,822.88	143.1517,379.79	622.6011,917.96
TOTAL ASSETS	18,055.88	12,214.77	18,082.82	12,304.80
B EQUITY AND LIABILITIES1 Equity
(a)Equity Share Capital(b)Other Equity	1,013.313,931.21	917.312,702.09	1,013.313,945.76	917.312,785.30
Sub-total-Shareholders' funds2 Non-current liabilities	4,944.52	3,619.39	4,959.07	3,702.60
(a)Financial Liabilitiesi) Long-term borrowings	361.30	17.64	361.30	17,64
ii) Lease Liabilities(b)Long-term provisions(c)	245.16143.79	159.86111.50	245.16143.79	159.86111.50
Deferred tax liabilities (net)(d)Other non-current liabilitiesSub-total-Non-Current Liabilities	-4.38754.62	-8.95297.95	-4.38	-8.95
3 Current liabilities			754.62	297.95
(a)Financial Liabilitiesi) Short-term borrowings	3,428.91	3,481.75	3,428.91	3,481.75
ii) Trade payables(a)Total outstanding dues of micro enterprisesand small enterprises	14.79	2.02	14.79
(b) — Total outstanding dues of creditors otherthan micro enterprises	7,961.01	4,273.09	7,973.40	2.024,279.91
(c)Lease Liabilities	60.42891.61	39.03501.53	60.42891.61	39.03501.53	fiaSeypissSs So\
(b)Other current liabilities	12,356.74	8,297.43	12,369,13	8,304.24 / oN a	3{Mumaat }=
Sub-total-Current Liabilities
TOTAL - EQUITY AND LIABILITIES	18,055.88Dynacons Systems & Solutions Limited	12,214.77	18,082.82	12,304.80	NS6*OS

Notes :

1. The above results were reviewed and recommeded by the Audit Committee at its meeting held on June 30, 2021 and were placed and approved at the meeting of the Board of Directors held on June 30, 2021

2. The company operates in the segment of Systems Integration and Services

3. Figures for the quarter ended March 31, 2021 and March 31, 2020 pertaining to the Company are the balancing figures between audited figures in respect of the full financial year and published year to date unaudited figures up to the third quarter of the year ended March 31, 2021 and March 31, 2020 for the Company .

4. These statements have been prepared in accordance with Companies (Indian Accounting Standards) Rules 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 other accounting practises and policies to the extent applicable.

5)The Central Government has publsihed The Code on Social Security, 2020 and Industrial Relations Code,2020 ("the codes") in the Gazette of India, interalia, subsuming various existing labour and industrial laws which deals with employees including post employment period. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes if any will be assessed and recognised post notification of relevant provisions.

6)The outbreak of Coronavirus pandemic is causing disturbance and slowdown of economic activity. COVID-19 is impacting business operation of the companies, by way of interruption in production, supply chain disruption, unavailability of personnel, closure / lock down of production facilities etc. The pandemic has presented an operational challenge of scale, speed and execution. Despite the lockdown we continued to serve our customers and managed to maintain all essential services for our customers. The Company has assessed the impact of COVID-19 on the financial statements, business operations, liquidity position, cash flows and has concluded that no material adjustments are required in the financial results. The Company will continue to monitor the impact of COVID-19 and any material changes to future economic conditions.

1. The Statutory Auditors of the Company have carried out the audit and have issued their unmodified opinion on the financial statements.

2. The previous years have been restated wherever necessary.

3. An interim dividend of Rs. 0.50 per share of the nominal value of Rs. 10/- each was declared on September 15, 2020 and paid to all the eligible shareholders on September 23, 2020.

Jun 30, 2021

Mumbai For Dynacons Systems & Solutions Ltd. for and on Board of Directors

Oy as

• 400 057.

Son "4 c\ eicc = Cc Dharmesh S. Anjaria (o M UMBa| E Executive Director \ ee 1S Din No: 00445009 \ Z a: oY

Dynacons Systems & Solutions Limited CIN NO : L72200MH199S5PLC093130

Certified ISO 9001:2008, ISO 14001:2015, ISO 20000-1:2011, ISO 27001:2013, CMMI Maturity Level 3

Corporate Office Registered : 3rd Floor, Office A Wing, : 78, Sunteck Ratnajyot Centre, Industrial Subhash Estate, Road, Irla Near Lane, Garware Vile Parle Chowk, West, Mumbai Vile Parle - 400 East, 056. Mumbai

GE +91-22-66889900 | lig +91-22-26716641 | G www.dynacons.com | Ma sales@dynacons.com | 160-123-4444

Standalone Cash Flow Statement for the Year Ended 31st March, 2021

DYNACONS
SOLUTIONSTHAT	EMPOWER
Standalone Cash Flow Statement for the Year Ended 31st March, 2021
Particulars	For the period ended For the period ended3ist March, 2021	(@ in Lakhs)31st March, 2020
CASH FLOW FROM OPERATING ACTIVITIESA
Net profit before Tax and extraordinary items	1,209.49	805.85
Add:Depreciation And Amortisation Expense	125.80	102.57
(Profit)/Loss on w\ioff of Property, Plant and EquipmentFinance CostsReversal of lease rentals	2.34705.80	0.00758.19
Dividend IncomeLoss On Investments Written off	(1.41)(55.28)0.00	0.00(53.30)
	777.25	0.51807.98
Operating profit before working Capital	1,986.74	1,613.83
Changes in current assets and liabilitiesAdjustments for (increase) / decrease in operating assets:
InventoriesTrade receivables	(3,374.80)	807.30
Other current financial assetsOther current assets	(1,789.96)(196.86)	(2,631.98)(520.67)
	351.81	(308.30)
Adjustments for increase / (decrease) in operating liabilities:		1,735.80
Trade payablesOther current financial liabilitiesOther current liabilities	3,700.69234.17	(28.62)
Other non current LiabilitiesProvisions	155.90(4.58)	(83.14)2.03
	22.68(900.95)	19.10(1,008.48)
Cash Generated from Operations	1,085.79	605.35
Taxes paid	(173.40)	(203.02)
Net Cash Flow froin operating activities	912.39	402.32
CASH FLOW FROM INVESTING ACTIVITIESB
Purchase of Property, Plant and Equipment	(252.24)	(4.96)
Sale of Property, Plant and EquipmentDividend received	0.0055.28	0.0053.30
Purchase of Investments	(30.00)	0.00
Net Cash Used for Investing Activities	(226.96)	48.34
CASH FLOW FROM FINANCING ACTIVITIESC
Repayment of Lease LiabiliitesMoney received against share warrantsDividend Paid	(32.60)448.00	(23.40)0.00
Repayment of long-term borrowingsShort-term borrowings (net)	(45.87)343.66	(45.87)(12.71)
Interest Paid	(52.84)(705.80)	18.85(758.19)
Net cash From Financing Activities	(45.44)	(821,32)
		2iSi
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Standalone Cash Flow Statement for the Year Ended 31st March, 2024

	DYNACONSSOLUTIONSTHAT	EMPOWER
	Standalone Cash Flow Statement for the Year Ended 31st March, 2024		(@ in Lakhs)
	Particulars	For the period ended For the period ended31st March, 2021	31st March, 2020
D_	Net Increase in Cash and Cash Equivalents (A+B+C)	639.99	(370.66)
—	Cash and Cash Equivalents (Opening Balance)	309.90	680.56
F	Cash and Cash Equivalents (Closing Balance)	949,88	309.90

For Dynacons Systems & Solutions Ltd. for and on behalf of the Board of Directors

4J, % rae SW GO?

oe —— fic ol EMSs ; Mumbai : June 30, 2021 DharmeshS. Anjaria. 2-7 Executive Director fo My Din No: 00445009 ° S M } UmBa, )

Dynacons Systems & Solutions Limited CIN NO : L72200MH1995PLC093130 Certified ISO 9001:2008, ISO 14001:2015, ISO 20000-1:2011, ISO 27001:2013, CMMI Maturity Level 3

Registered Office : 78, Ratnajyot Industrial Estate, Irla Lane, Vile Parle West, Mumbai - 400 056. Corporate Office : 3rd Floor, A Wing, Sunteck Centre, Subhash Road, Near Garware Chowk, Vile Parle East, Mumbai - 400 057. GH +91-22-66889900 | iim +91-22-26716641 | @ www.dynacons.com | ia sales@dynacons.com | 1860-123-4444

Consolidated Cash Flow Statement for the Year Ended 31st March, 2021

DYNACONS
SOLUTIONSTHAT	EMPOWER
Consolidated Cash Flow Statement for the Year Ended 31st March, 2021	For the period ended For the period ended
Particulars	31st Mar, 2021	3ist Mar, 2020
CASH FLOW FROM OPERATING ACTIVITIESA
Net profit before Tax and extraordinary itemsAdd:Depreciation And Amortisation Expense	1,145.38125.80	756.55
(Profit)/Loss on w\ioff of Property, Plant and EquipmentFinance Costs	2.34705.80	102.570.00758,19
Reversal of lease rentalsDividend Income	(1.41)0.00	0.000.00
Difference in Foreign Exchange RatesLoss On Investments Written off	(0.13)0.00	6.900.51
	832.40	868.18
Operating profit before working CapitalChanges in current assets and liabilities	1,977.78	1,624.73
Adjustments for (increase) / decrease in operating assets:Inventories	(3,374.80)	807.30
Trade receivablesOther current financial assets	(1,789.96)(196.86)	(2,438.13)(520.67)
Other current assetsAdjustments for increase / (decrease) in operating liabilities:	350.15	(320.07)
Increase/(Decrease) in Current Liabilities & ProvisionTrade payablesOther current financial liabilities	3,706.26234.17	1,569.97(28.62)
Other current liabilitiesOther non current Liabilities	155.90(4.58)	(83.14)2.03
Provisions	22.68	19.10
	(897.04)	(992.24)
Cash Generated from Operations	1,080.74	632.49
	(173.40)	(203.02)429.47
Taxes paidNet Cash Flow from operating activities	907.34
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property, Plant and EquipmentSale of Property, Plant and EquipmentDividend received	(252.24)0.000.00	(4.96)0.00-
Investments	(30.00)	-
Net Cash Used for Investing Activities	282.24	4.96
CASH FLOW FROM FINANCING ACTIVITIESRepayment of Lease Liabiliites	(32.60)	(23.40)
Payment of DividendMoney received against share warrants	(45.87)448.00	(45.87)0.00
Addition / (Repayment) of long-term borrowingsShort-term borrowings (net)	343.66(52.84)	(12.71)18.85
interest PaidNet cash From Financing Activities	(705.80)45.44	(758.19)
Dynacons Systems & Solutions LimitedCIN NO : L72200MH1995PLC093130
Certified ISO 9001:2008, ISO 14001:2015, ISO 20000-1:2011,Registered Office : 78, Ratnajyot Industrial Estate, Irla Lane, Vile Parle West, Mumbai - 400 056.	Iso 27001:2013, CMMI Maturity Level 3

Dynacons Systems & Solutions Limited

Consolidated Cash Flow Statement for the Year Ended 31st March, 2027

	DYNACONS
	SOLUTIONSTHAT	EMPOWER
	Consolidated Cash Flow Statement for the Year Ended 31st March, 2027
		For the period ended For the period ended
	Particulars	31st Mar, 202131st Mar, 2020
	Net Increase in Cash and Cash Equivalents (A+B+C)DCash and Cash Equivalents (Opening Balance)E	579.65(396.81)393.69790,50
	Cash and Cash Equivalents (Closing Balance)F	973.34393.69
		579.65(396.81)
	Mumbai : June 30, 2021
		DharmeshS. AnjariaxoExecutive Director= f<Din No: 00445009 S) MUnyp
	Dynacons Systems & Solutions Limited
	CIN NO : L72200MH1995PLC093130Certified ISO 9001:2008, ISO 14001:2015, ISO 20000-1:2011, ISO 27001:2013, CMMI Maturity Level 3
Corporate Office'GE +91-22-66889900	Registered Office : 78, Ratnajyot Industrial Estate, Irla Lane, Vile Parle West, Mumbai - 400 056. lim)+91-22-26716641 @www.dynacons.com	: 3rd Floor, A Wing, Sunteck Centre, Subhash Road, Near Garware Chowk, Vile Parle East, Mumbai - 400 057. Masales@dynacons.com 1860-123-4444

Mumbai : June 30, 2021 Dharmesh S. Anjaria xo Executive Director = f < Din No: 00445009 |S) MUnyp

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001, EMAIL: mspandco@gmail.com

Independent Auditor's Report on Quarterly Financial Results and Year to Date Audited Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

To,

Board of Directors of Dynacons Systems and Solutions Limited.

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying standalone quarterly financial results of Dynacons Systems and Solutions Limited (the "Company") for the quarter ended March 31, 2021 and for the year to date results for the period from April 1, 2020 to March 31, 2021 (the "Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

• i. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
• ii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter ended March 31, 2021 as well as the year to date results for the period from April 1, 2020 to March 31, 2021.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Standalone Financial Results" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial results under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001. EMAIL: mspandco@gmail.com

Emphasis of Matters

• i) Attention is drawn to Note No.6 to the Standalone financials results, which describes that the extent to which the COVID-19 Pandemic will impact the Company's results in next financial year will depend on future developments, which are highly uncertain.
• ii) Further, we wish to highlight that due to the COVID-19 induced restrictions on physical movement and strict timelines, the entire audit team could not visit the offices/various branches of the Company for undertaking the required audit procedures as prescribed under ICAI issued Standards on Auditing, including but not limited to:
• e Inspection, Observation, examination and verification of the original documents of
• e Participation in the year end activity of physical verification of Cash, Inventories and Property, Plant and Equipment carried on by the management as on March 31, 2021, however we have performed alternate audit procedures / reconciliation of such items to obtain sufficient appropriate audit evidence about existence of Cash, Inventories and Property, Plant and Equipment as at the year end.
• e Any other processes which required physical presence of the audit team.

Our opinion is not modified in respect of these matters.

Management's Responsibilities for the Standalone Financial Results

The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income of the Company and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of [he Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001. EMAIL: mspandco@gmail.com

In preparing the Statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• ¢ Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• e Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• e Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• e Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001. EMAIL: mspandco@gmail.com

e Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The Statement includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

ForMSP &Co. Chartered Accountants Firm Registration No: 107565W

MADHUSUDAN SHANTILAL PARIKH

M.S. Parikh, Partner Membership No. 08684 Mumbai June 30, 2021 UDIN: 21008684AAAABY6195

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBA] 400 056. TEL. 96999 57001. EMAIL: mspandco@gmail.com

Auditor's Report on consolidated audited quarterly and year to date financial results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To Board of Directors of Dynacons System & Solutions Limited

Report on the Audit of the Consolidated Financial Results

Opinion

We have audited the accompanying Statement of Consolidated Financial Results System & Solutions Limited("Holding company"), and its Subsidiary (Holding company and its Subsidiary together referred to as "the Group") for the quarter ended March 31, 2021 and for the period from April 1, 2020 to March 31, 2021 ("the Statement"), being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations"). ae Ta; 1 Cajnecone Lylldtons

1, In our opinion and to the best of our information and according to the explanations given to us, and based on the our audit procedures referred to in paragraph 4 below, the Statement includes the results of the following entities:

i) Dynacons Systems & Solutions Limited (Holding Company)

• ii) Dynacons Systems & Solutions PTE. Ltd (Subsidiary Company)
• a. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• b. gives a true and fair view in conformity with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India of the consolidated total comprehensive income and other financial information of the Group for the quarter ended 31st March 2021 as well as year to date results for the period from April 1, 2020 to March 31, 2021.

Basis of Opinion

1. This Statement which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been compiled from the related consolidated financial statements which has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standards, prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express an opinion on the Statement based on our audit of such consolidated financial statements.

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001. EMAIL: mspandco@gmail.com

3: We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Statement. The procedures selected depend on the auditor's judgment, including the assessment of the risk of material misstatement of the Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Parent's preparation and fair presentation of the Statement in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall! presentation of the Statement.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

We believe that the audit evidence obtained by us and audit procedures referred to in paragraph 4 below for audit of subsidiary company adjustments, are sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matters

• i) Attention is drawn to Note No.6 to the Consolidated financials results, which describes that the extent to which the COVID-19 Pandemic will impact the Company's results in next financial year will depend on future developments, which are highly uncertain.

• ii) | The Opinion expressed in the present report is based on the information, facts and inputs made available to us through electronic means by the Company. We wish to highlight that due to the COVID-19 induced restrictions on physical movement and strict timelines, the entire audit team could not visit the office of the Company for undertaking the required audit procedures as prescribed under ICAI issued Standards on Auditing, including but not limited to:

  • e Inspection, Observation, examination and verification of the original documents of invoices, legal agreements, bank accounts statements / loan accounts statements and files.

• e Physical verification of Cash, including adequate internal controlsthereof.

• e Physical Verification of Property, Plant and Equipment, Inventories as on March 31, 2021,

• e Any other processes which required physical presence of the audit team.

Our opinion is not modified in respect of these matters.

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001 EMAIL: mspandco@gmail.com

Management's Responsibilities for the Consolidated Financial Results

These quarterly financial results as well as the year to date consolidated financial results have been prepared on the basis of the interim financial statements.

The Holding Company's Management is responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the net profit and other comprehensive income and other financial information of the Group including its associate in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Groupand are responsible for maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial results that give a true and fair viewand are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial results by the Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial results, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group .

Auditor's Responsibilities for the Audit of the Consolidated Financial Results

Our objectives are to obtain reasonable assurance about whether the consolidated financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financialresults.

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001. EMAIL: mspandco@gmail.com

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• e Identify and assess the risks of material misstatement of the consolidated financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• e Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
• ¢ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Directors.
• e Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and its associates to cease to continue as a going concern.
• ¢ Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the yantc In a manner ths underlying transactions and events in a manner tha
• e Obtain sufficient appropriate audit evidence regarding the financial results / financial information of the entities within the Group and its associates to express an opinion on the consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors. Forthe other entities included in the consolidated Financial Results, which have been audited by us, we remain responsible for the direction, supervision and performance of the audits carried out by us and we remain solely responsible for our audit opinion.

CHARTERED ACCOUNTANTS

76, RATNAJYOT INDUSTRIAL ESTATE, IRLA LANE, VILE PARLE (WEST), MUMBAI 400 056. TEL. 96999 57001. EMAIL: mspandco@gmail.com

We communicate with those Management of the Holding Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Management with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

We also performed procedures in accordance with the circular issued by the SEBI under 29/90% Reguiation 33(8) of the Listing Reguiations, as amended, to the extent applicable.

Other Matter

1. We did not audit the financial statements and other financial information in respect of 1 subsidiary namely Dynacons Systems & Solutions PTE. Ltd (Subsidiary) located outside India, whose financial statements include Total Assets of Rs.26.95 Lakhs as at 31st March 2021, and total revenue from operation of Rs. NIL and Rs. NIL Lakhs for the quarter ended and the year ended on that date respectively. These financial statements have been prepared in accordance with accounting principles generally accepted in their respective country and which have been audited by other auditors under generally accepted auditing standards applicable in their respective country. The Holding Company's management has converted the financial statements of such subsidiary from accounting principles generally accepted in their respective country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Holding Company's management. Our opinion, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based on the conversion adjustments prepared by the management of the Holding Company and audited by us.

Our opinion on the Statement is not modified in respect of the above matter.

ForMSP&CO. Chartered Accountants Firm Registration No: 107565W

MADHUSUDAN aon SHANTILAL PARIKH i

M S Parikh, Partner Membership No: 08684 Mumbai June 30, 2021 UDIN : 21008684AAAABZ2194

Declaration

Declaration of Unmodified Audit Report pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015

|, Mr. Dharmesh Anjaria, Executive Director and Chief Financial Officer of Dynacons Systems & Solutions Limited having its registered office at 78, Ratnajyot Industrial Estate, Irla Lane, Vile-Parle (W), Mumbai-400056, hereby declare that M/s. MS P & Co., Statutory Auditors of the Company, have issued an Audit Report with Unmodified Opinion on Audited Standalone and Consolidated Financial Results of the Company for the quarter and year ended on March 31, 2021.

This declaration is given pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended and Circular No., CIR/CFD/CMD/56 /2016 dated May 27, 2016.

For Dynacons Systems & Solutions

Dharmesh Anjaria \ Executive Director & Chief Finarr Din: 00445009

Dynacons Systems & Solutions Limited CIN NO : L72200MH1995PLC093130 Certified ISO 9001:2008, ISO 14001:2015, ISO 20000-1:2011, ISO 27001:2013, CMMI Maturity Level 3

Registered Office : 78, Ratnajyot Industrial Estate, Irla Lane, Vile Parle West, Mumbai - 400 056. Corporate Office : 3rd Floor, A Wing, Sunteck Centre, Subhash Road, Near Garware Chowk, Vile Parle East, Mumbai - 400 057. GE +91-22-66889900 | lim) +91-22-26716641 | @ www.dynacons.com | ia sales@dynacons.com | 1860-123-4444