Dynemic Products Ltd

Dear Shareholders,

Your Directors have pleasure in presenting the 34th Annual Report together with the audited Statement of Accounts of the Company for the year ended March 31, 2024.

(Amount in Lakhs)

During the year Board of Directors vide their meeting dated April 21, 2023, forfeit partly paid up equity shares of such shareholders from whom the balance money on 15,726 shares was not received. Further, Company has also received the BSE approval for forfeiture of shares vide their letter dated May 10, 2023. The Company has complied with all the applicable regulatory provisions, rules and regulations in respect of the rights issue, call money and forfeiture of shares.

The Members in the Annual General Meeting held on 12th September, 2023 inter alia considered and approved the raising of funds by way of Preferential Issue by issuing 3,50,000 Equity shares and 4,00,000 convertible warrants for an amount not exceeding 23.14 Crore. The purpose/object to raise capital was to meet Working Capital and General Corporate Purposes. The company allotted 3,50,000 Equity shares during the year.

Your Directors, after considering the financial performance has decided not to recommend dividend for the year under review. The Company was not require to transfer any Unpaid Dividend to Investor Education & Protection Fund (IEPF) during the year under review.

The Board of Directors has decided not to transfer any amount to any reserves.

Information on operational and financial performance, etc. of the Company for the financial year is given in the Management Discussion and Analysis which is set out as Annexure E to the Boards' Report.

The information to be disclosed under Section 134 (3) (m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014, are set out in Annexure A to this Report.

The Company has not changed its nature of Business during the year under review.

As part of its initiatives under "Corporate Social Responsibility" (CSR), the company has contributed funds to Dynemic Foundation. The contributions in this regard has been made to the registered trust which is undertaking these scheme. The Annual Report on CSR activities is annexed herewith as : Annexure B.

The company has not given any loans or guarantees covered under the provisions of section 186 of the-vestments made by company is given in the notes to the financial statements.

Pursuant to requirement of the Companies Act, 2013, Shri Rameshbhai B. Patel shall retire at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment. The details of Directors seeking appointment/re-appointment at the ensuing Annual General Meeting has been provided in the Notice of the Annual Meeting, forming part of the Annual Report.General The Independent Directors hold office for a fixed term of five years andarenotliabletoretire by rotation. In accordance with Section 149(7) of the Act, each independent director has given a written declaration to the Company confirming that he/she meets the criteria of independence as mentioned under Section 149(6) of the Act and SEBI Regulations.

During the year under review Shri Jagdish S. Shah and Shri Shankarlal B. Mundra had retired from the second term on 31st March, 2024 as an independent directors. The Board of Directors of the Company after approval of Shareholders had appointed Shri Vikash Jain and Shri Iyengar Padmanab-han as an Independent Director of the Company for a term of 5 (five) years with effect from April 1, 2024 to March 31, 2029 (both days inclusive).

Company's Policy on Directors, KMP and other employees as per Section 134(3) of Companies Act, 2013 is given in Corporate Governance Section forming part of Annual Report.

The Board of Directors duly met 6 (Six) times respectively on 21.04.2023, 30.05.2023, 14.08.2023, 26.09.2023, 10.11.2023 and 14.02.2024 in respect of which meetings proper notices were given and the proceedings were properly recorded and signed. STATEMENT REGARDING OPINION OF THE BOARD WITH REGARD TO INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING THE PROFICIENCY) OF THE INDEPENDENT DIRECTORS APPOINTED DURING THE YEAR.

In terms of the provisions of rule 8(5)(iiia) of the Companies (Accounts) Rules, 2014, the Board opines that the Independent directors so appointed/ re-appointed hold highest standards of integrity and possess necessary expertise and experience.

All movable and immovable properties as owned by the Company continued to be adequately insured against risks.

Directors and Officers Liability Insurance Policy : The Company has a Directors and Officers Liability Insurance Policy which protects Directors and Officers of the Company for any breach of fiduciary duty.

The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013 and also has constituted Internal Complaints Committee (ICC). All employees (permanent, contractual, temporary, trainees) are covered under this policy. The company has complied with provisions relating to the Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The following is a summary of sexual harassment complaints received and disposed off during the year.

No. of complaints filed during the financial year - NIL

No. of complaints disposed off during the financial year Not Applicable

Number of complaints pending as on end of the financial year - NIL

Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013 it is hereby confirmed that :

in the preparation of the annual accounts for the financialyear ended March 31, 2024,

and that there are no material departures;

the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable

and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit / loss of

the Company for the year under review;

the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of

the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

the Directors have prepared the accounts for the financial year ended March 31, 2024 on a going concern basis;

the Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate

and were operating effectively;

the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate

and operating effectively.

All related party transactions that were entered into during the financial year were on arm's length basis and were in the ordinary course of the business. There are no materially significant related party transactions made by the company with Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with interest of the company at large. Prior Omnibus approval of the Audit Committee is obtained on yearly basis for the transactions which are of a foreseen and repetitive nature. The Company had also taken members' approval at its Annual General Meeting held on 11th September, 2014 for entering into the transactions with Related Parties. The policy on Related Party Transactions as approved by the Board is uploaded on the Company's website http://www.dynemic.com/db/uploads/5m1124157539.pdf Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable.

Disclosure of transactions with promoter / promoter group holding 10% or more shareholding.

(in Lacs)

Transactions with related parties are disclosed in Note No. 38 to the Annual Financial Statements.

There have been no materialchangesandcommitmentsaffectingthe financial position of the Company since the close of financial year i.e. since

March 31, 2024. Further, it is hereby confirmed that there has been no change in the nature of business of the Company.

M/s B. K. Patel & Co., Chartered Accountants were appointed as Statutory Auditors of your Company at the Annual General Meeting held on Sep-tember 29, 2022 for a term of five consecutive years. The Companies (Amendment) Act, 2017 has waived the requirement for ratification of the appointment by the members at every AGM. Hence, the approval of the members is not being sought for the re-appointment of the Statutory Auditors. The Report given by the Auditors on the financial statements of the Company is part of the Annual Report. There has been no qualification, -tion, adverse remark or disclaimer given by the Auditors in their Report.

Pursuant to provisions of section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the company has appointed M/s. Ashok P. Pathak & Company, Company Secretary in practice to undertake the Secretarial Audit of the Company. The Secretarial Audit report is annexed herewith as "Annexure C" for the financial year ended on March 31, 2024. The Secretarial Audit Report contains qualification remark. The explanation on comments / observation(s) in the Secretarial Audit Report are as under - (a ) The Company hasprovidedthedetailsofCSRActivities forming part of Board's Report but the format in which the said details are provided is not as per the format provided in Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 as amended vide the Companies (Corporate Social Responsibility Policy), Amendment Rules, 2021. The Company though has not provided as per format but all the required details are covered under the said report.

(b) As per the requirement of sub-rule (8) of Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, every Company shall within a period of sixty days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 96 of the Act, whichever is earlier and every year thereafter till completionof the seven years period, identify the unclaimed amounts, as referred in sub-section section125 of the Act, as on the date of closure of financial(2)of year the account of which are to be adopted in the Annual General Meeting as per sub-section (1) of section 137 of the Act, separately furnish and upload on its own website and also on website of Authority or any other website as may be specified by the Government, a statement or information of unclaimed and unpaid amounts separately for each of the previous seven financial years through Form No. IEPF 2 containing specified information. The Company has filed Form IEPF 2 well in time but due to technical difficulties the said SRN has been cancelled. Com-panyisinprocessofagainfilingthe

Pursuant to Section 148 of the Companies Act, 2013 read with The Companies (Cost Records and Audit) Amendment Rules, 2014, the Cost Audit records maintained by the Company are required to be audited by a qualified Cost Accountant.

Your Directors have on the recommendation of the Audit Committee, appointed M/s Anuj Aggarwal & Co., Cost Accountants (Firm Registration number 102409) to audit the cost accounts of the Company for the Financial Year 2024-25. As required under the Act, the remuneration payable to the Cost Auditor is required to be placed before the Members in a General Meeting for their ratification.

A Resolution seeking ratification of remuneration payable to M/s Anuj Aggarwal & Co, Cost Accountants is included in the Notice convening the Annual General Meeting.

In accordance with the provisions of Section 92(3) of the Act, Annual Return of the Company as on March 31, 2024 is hosted on the website of the Company at https://www.dynemic.com/db/uploads/5m1652413924.pdf

In compliance with the provisions of Regulation 21 of SEBI LODR Regulations, the Board of Directors has constituted a Risk The details of Committee and its terms of reference are set out in the Corporate Governance Report forming part of the Board's Report.

At present the company has not identified any

As per Clause 34(2) (e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report, is appended to this report.

A separate section on Corporate Governance practices followed by the Company, together with a certificate from Practicing Company Secretary confirming compliance forms an integral part of this Report, as per SEBI Regulations.

There was no employee drawing salary in excess of limits described under Section 134 of the Companies Act, 2013 read with Companies (Appointment & Remuneration of Managerial Personnel) Rules 2014.

The Company has not accepted any deposits during the year under report.

The Consolidated Financial Statements of the Company for the Financial Year 2023-24 are prepared in compliance with the applicable provisions of the Act, Accounting Standards and Regulations as prescribed by Securities and Exchange Board of India (SEBI) under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Pursuant to the provisions of Section 136 of the Companies Act, 2013, the Financial Statements of the Company, the Consolidated Financial Statements along with all relevant documents and the Auditor's Report thereon form part of this Annual Report. The Financial Statements as stated above are also available on the website www.dynemic.com of the Company.

A report on the performance and financial position of subsidiary and associate company as per Companies Act, 2013 is provided in Annexure D.

The details in respect of internal financial control and their adequacy are included in the Management and Discussion & Analysis, which forms part of this report.

The Company has a WHISTLE BLOWER POLICY to deal with instance of unethical behaviour, actual or suspected fraud or violation of the Company's code of conduct, if any. The details of the WHISTLE BLOWER POLICY are posted on the website of the Company. During the year under review, no employee was denied access to the Audit Committee http://www.dynemic.com/db/uploads/5m674996272.pdf

The Listing Regulations mandate the inclusion of the BRSR as part of the Annual Report for the top 1,000 listed entities based on market capitalization. Since your Company is not in Top 1,000 Companies by Market Cap hence the said report is not applicable to the Company.

In terms of the provisions of section 143(12) of the Act read with rule 13 of the Companies (Audit and Auditors) Rules, 2014, during the year under review, the auditors have not reported any frauds to the Audit Committee or to the Board and therefore, no details pursuant to the provisions of section 134(3)(ca) of the Act are required to be disclosed.

During the year under review there was no application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.

Not applicable

GENERAL the Regulators or Courts or Tribunals which impact the going concern status and Company's opera No -tions in future.

The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Meetings of the Board of Directors and General Meetings.

The Board wishes to express appreciation and place on record its gratitude for the faith reposed in and co-operationextended to the Company by all customers, vendors, investors, bankers, insurance companies, consultants and advisors of the Company. Your Directors place on record their appreciation of the dedicated and sincere services rendered by the employees of the company.