Dynamic Industries Ltd

Dear Members,

Your Directors have pleasure in presenting their 36^th Annual Report together with the Audited financial statements of the Company for the Financial Year ended 31^st March, 2025

The summary of your Company's financial performance on standalone basis is given below :

The Company has achieved a significant growth in its operational performance during the financial year ended 31^st March, 2025. Revenue from operations stood at ' 7,305.96 lakhs, reflecting a robust increase of over 100% as compared to ' 3,628.53 lakhs in the previous financial year. Notably, the Company reported a net profit of ' 158.57 lakhs during the year, marking a strong turnaround from a net loss of ' 29.95 lakhs in the previous financial year. The growth was primarily driven by improved demand across key product segments, operational efficiencies, and expansion in both domestic and export markets. The Company continues to strengthen its position in the chemical industry by focusing on product diversification, quality enhancement and customer-centric strategies.

The Company has not transferred any amount to reserves during the year.

Your directors recommended a dividend of ' 1 (10%) per Equity Share of the nominal value of ' 10.00 each for the year ended on 31^st March, 2025 to be paid subject to the approval of the members at the ensuing Annual General Meeting.

At present, the Company has only one class of shares - equity shares with face value of ' 10.00 each. The authorized share capital of the company is ' 350.00 Lacs divided into 35,00,000 equity shares of ' 10.00 each. The paid-up share capital of the company is ' 302.85 Lacs divided into 30,28,500 equity shares of ' 10.00 each.

During the year under review, the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity.

Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.

The chemical industry is undergoing significant transformation, driven by advancements in technology, changing customer demands, and improved operational practices. The Company, being a leading manufacturer of direct dyes and acid dyes, is well-positioned to benefit from these changes.

Looking ahead, our strategic focus will be on diversifying into new product categories to meet a wider range of customer needs and explore new market opportunities. This will not only strengthen our market position but also help us adapt to evolving industry trends.

The Company has successfully stabilized its manufacturing plant located at Plot No. 125, G.I.D.C., Vatva, Ahmedabad, by implementing modern technologies and improving infrastructure. This has enhanced our production capabilities and efficiency.

Going forward the Company is committed to:

• Improving operational efficiency and productivity;

• Introducing innovative and value-added products;

• Expanding our presence in domestic and international markets;

• Strengthening customer relationships through quality and service;

• Adopting sustainable practices and complying with environmental norms.

With these steps, the Company aims to regain and sustain growth momentum, while creating long-term value for stakeholders.

In accordance with the provisions of Clause (m) of Sub Section (3) of Section 134 the Companies Act, 2013 read with Companies (Accounts) Rules, 2014, the relevant information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo is given in ANNEXURE -II and forms part of this report.

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which these financial statements relate on the date of this report.

No such Orders have been passed by the Regulators/Court or Tribunals which can impact the going concern status and Company's operation in future.

Company do not have any subsidiary/associate company.

No loan, guarantee or security has been provided by the Company during the year under review. Details of Investments covered u/s 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.

During the Financial Year 2024-2025, the Company held 6 (Six) board meetings of the Board of Directors as per Section 173 of Companies Act, 2013 which is summarized below. The provisions of Companies Act, 2013 and SEBI LODR were adhered to while considering the time gap between two meetings.

Pursuant to Section 92(3) read with section 134(3)(a) of the Companies Act, 2013, copies of the Annual Returns of the Company prepared in accordance with Section 92(1) of the Companies Act, 2013 read with Rule 11 of the Companies (Management and Administration) Rules, 2014 are placed on the website of the Company and is accessible at the weblink: https://www.dvnaind.com/investor-relations.html#left-tab2

Your Company has adequately insured all its properties including Plant and Machinery, Building and Stocks.

There were no materially significant related party transactions entered between the Company, Directors, management or their relatives except for those disclosed in the financial statements.

All the contracts/arrangements/transactions entered into by the Company with the related parties during the financial year 2024-25 were in the ordinary course of business and on an arm's length basis as disclosed in the financial statements.

Accordingly, particulars of contracts or arrangements with related parties referred to as disclosed in the financial statements in Section 188(1) in Form AOC-2 is attached herewith as AnNEXURE-III.

The Audit Committee has granted omnibus approval for Related Party Transactions as per the provisions and restrictions contained in the SEBI (LODR) Regulation.

The company has formulated a policy on “Materiality of Related Party transactions and on dealing with Related Party Transactions'' and the same is on the company's website at https://www.dvnaind.com/investor-relations.html#s1:left- tab6

The details of related party disclosure form a part of the notes to the financial statements provided in the annual report.

The Board of Directors of your company has various executive and non-executive directors including Independent Directors who have wide and varied experience in different disciplines of corporate functioning.

In accordance with the provisions of Section 152 of the Companies Act, 2013 and Articles of Association of the Company, Mr. Neeraj Shah (DIN: 05112261) retires by rotation at the ensuing Annual General Meeting and being eligible in terms of Section 164 of the Act offers himself for re-appointment.

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

As required under Section 203 of the Companies Act, 2013, the Company has

Mr. Neeraj Shah as Managing Director, Mr. Apurva Kamleshbhai Modi as Chairman and Whole-time Director, Mr. Kalpesh Chandulal Patel as Chief Financial Officer, Ms. Ritu Agarwal as Company Secretary , Mrs. Viraj Darshit Shah and Aditya Bharat Modi as Independent Directors as on 31^st March, 2025.

Remuneration to Key Managerial Personnel, Senior Management and other employees will involve a balance between fixed and incentive pay reflecting short and long-term performance objectives of the employees in line with the working of the Company and its goals.

Mr. Kedar Choksi was appointed as Independent Director of the company w.e.f. 11^th November, 2024 and resigned from the Board as on 08^th February, 2025.

Mr. Apurva Kamleshbhai Modi (DIN:07046796) has been reappointed as a Whole Time Director for a period of 5 (Five) years commencing from 27^th July 2024 to 26^th July 2029 in the Annual General Meeting held on 10^th September, 2024.

Mr. Neeraj Shah (DIN: 05112261) has been reappointed as a Managing Director for a period of 5 (Five) years commencing from 27^th July 2024 to 26^th July 2029 in the Annual General Meeting held on 10^th September, 2024.

Mr. Aditya Modi (DIN: 10680803), who was appointed as an Additional Non -Executive Independent Director in the Board meeting held on 19^th July, 2024 was regularised as an Independent Director (Non-Executive) in the Annual General Meeting held on 10^th September, 2024.

Mr. Harin Mamlatdarna , Wholetime Director and Chairman of the company was resigned from the Board of the company w.e.f. 19^th July, 2024.

The term of Mr. Jatinbhai Surti and Mr. Pravinchandra Master, Independent directors of the company was ended on 21^st June , 2024. The Board has took note of the same

In compliance with the Companies Act, 2013 and Regulation 17(10) of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, the performance evaluation of the Board was carried out during the year under review. More details on the same are given in the Corporate Governance Report.

Criteria determining the qualifications, positive attributes and independence of Directors.

• Qualifications of Independent Director.

An Independent director shall possess appropriate skills, qualifications, experience and knowledge in one or more fields of finance, law, management, marketing, administration, corporate governance, operations or other disciplines related to the Company's business.

• Positive attributes of Independent Directors.

An independent director shall be a person of integrity, who possesses knowledge, qualifications, experience, expertise in any specific area of business, integrity, level of independence from the Board and the Company etc. Independent Directors are appointed on the basis of requirement of the Company, qualifications & experience, expertise in any area of business, association with the Company etc. He / She should also devote sufficient time to his/her professional obligations for informed and balanced decision making; and assist the Company in implementing the best corporate governance practices.

• Independence of Independent Directors.

An Independent director should meet the requirements of Section 149(6) of the Companies Act, 2013 and SEBI (LODR)Regulations, 2015 and give declaration to the Board of Directors for the same every year.

The Nomination and Remuneration Committee shall identify and ascertain the qualifications, expertise and experience of the person for appointment as Director or at senior management level and recommend to the Board for his / her appointment. The Company shall not appoint or continue the employment of any person as Whole-time Director or Senior Management

Personnel if the evaluation of his / her performance is not satisfactory. Other details are disclosed in the Corporate Governance Report under the head Nomination and Remuneration

Committee and details of Remuneration (Managing Director / Whole Time Director(s) and

This Nomination and Remuneration Policy (“Policy”) provides the framework and key guiding principles to be followed in for appointment and determination of remuneration of Directors, Key Managerial Personnel and Senior management personnel. This Policy is to establish and govern the procedure applicable:

a) To evaluate the performance of the members of the Board.

b) To ensure remuneration to Directors, KMP and Senior Management involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the Company and its goals.

c) To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage. The said Policy is available on the website of the Company.

Managerial Remuneration and Employees :

Managerial Remuneration and Employees Details required pursuant to Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 are enclosed separate as an Annexure IV.

There were no employees covered under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The Company has received the necessary declaration from each Independent Director, in accordance with Section 149(7) of the Companies Act, 2013, that he/she met the criteria of independence as laid out in sub-section (6) of Section 149 of the Companies Act, 2013 and the Regulation 16(1)(B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board of Directors confirms that in their opinion, the independent directors fulfill all the conditions specified in 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and are independent of the management.

The Company has also received a certificate from Mr. Chintan K. Patel a company secretary in practice that none of the directors on the board of the company have been debarred or disqualified from being appointed or continuing as directors of companies by the Board/Ministry of Corporate Affairs or any such statutory authority.

Familiarization Programme for Independent Directors:

The Company has an ongoing programme where Directors in the course of meetings of the Board of Directors give information about developments and amendments in legal and regulatory areas which include mandatory disclosures and fair disclosures stated under SEBI (LODR) Regulations, 2015 (herein referred to as “Listing Regulation”), Prohibition & Insider Trading Regulations and SAST Regulations so as to enable them to effectively discharge their roles, rights and responsibilities in the Company.

The Company has uploaded the details of the above on the website of the company i.e.www.dynaind.com.

During the year, in accordance with the Companies Act, 2013, the Board re-constituted some of its committees.

There are currently Three Committees of the Board, as follows:

1. Audit Committee

2. Nomination and Remuneration Committee

3. Stakeholders' Relationship Committee

Details of all the Committees along with their charters, composition and meetings held during the year, are provided in the “Report on Corporate Governance”, a part of this Annual Report.

M/s. G. K. CHOKSI & Co., Chartered Accountants (Firm registration number 101895W) are the statutory auditors of the Company. They are appointed for a period of five years, from the conclusion of 34^th AGM till the conclusion of the 39^th AGM (AGM of financial year 2027-28).

The Report given by the Auditors on the financial statement's year ended 31^st March 2025 of the Company is part of the Annual Report. The notes to the accounts referred to in the Auditors' Report are self-explanatory and therefore do not call for any further comments.

The Auditors' Report to the members for the financial year under review does not contain any qualification, reservation or adverse remark or disclaimer.

Pursuant to the provisions of Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors as recommended by Audit Committee and subject to members approval at this AGM, recommended appointment of Mr. Chintan K. Patel Practicing Company Secretary (C.P No. 11959), as Secretarial Auditors of Company for the term of 5 (five) consecutive years from 1^st April, 2025 to 31^st March, 2030.

Secretarial Audit Report for the financial year ended 31^st March, 2025 issued by Mr. Chintan K. Patel Practicing Company Secretary in Form MR-3 forms part to this report - as Annexure V. The said report does not contain any observation or qualification requiring explanation or adverse remark.

The Company has an Internal Control System, commensurate with size, scale and complexity of its operations. The internal financial controls are adequate and are operating effectively to ensure orderly and efficient conduct of business operations. The Company has appointed M/s. VKJD & Associates, Chartered Accountant vide (FRN 128985W) as Internal Auditors of the Company. The Audit Committee in consultation with the internal auditors formulates the scope, functioning, periodicity and methodology for conducting the internal audit. The internal auditors carry out audit, covering inter alia, monitoring and evaluating the efficiency & adequacy of internal control systems in the Company, its compliance with operating systems, accounting procedures and policies at all locations and submit their periodical internal audit reports to the Audit Committee. Based on the internal audit report and review by the Audit committee, process owners undertake necessary actions in their respective areas. The internal auditors have expressed that the internal control system in the Company is robust and effective. The Board has also put in place requisite legal compliance framework to ensure compliance of all the applicable laws and that such systems are adequate and operating effectively.

Company has implemented an integrated risk management approach through which it reviews and assesses significant risks on a regular basis to help ensure that there is a robust system of risk controls and mitigation in place. Senior management periodically reviews this risk management framework to keep updated and address emerging challenges. Major risks identified for the Company by the management are Currency fluctuation, Compliances of various applicable Laws, Regulatory changes, Manufacturing & Supply, Litigation, Technological Changes. The management is however, of the view that none of the above risks may threaten the existence of the Company as robust Risk mitigation mechanism is put in place to ensure that there is nil or minimum impact on the Company in case any of these risks materialize.

In accordance with Section 177 of the Companies Act, 2013 and Regulation 22 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company has constituted a Whistle Blower Policy/ Vigil Mechanism to establish a vigil mechanism for the directors and employees to report genuine concerns in such manner as may be prescribed and to report to the management instances of unethical behavior, actual or suspected fraud or violation of the Company's code of conduct.

The detail of the Whistle Blower Policy is explained in the Corporate Governance Report.

None of the Non-Executive Directors has any pecuniary relationship or transactions with the Company other than sitting fees payable to them.

The provisions of Corporate Social Responsibility are not applicable to Company as the company was not fall within the prescribed limits given under section 135 of the companies Act, 2013. Hence, The Company is not required to constitute a Corporate Social Responsibility Committee as it does not fall within purview of Section 135(1) of the Companies Act, 2013 and hence it is not required to formulate policy on corporate social responsibility.

As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (‘Act') and Rules made thereunder, your Company has assigned the responsibilities to Sexual Harassment Committee. During the year, no complaint with allegations of sexual harassment was filed against the Company.

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Company's shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Company has also adopted a Policy and Procedure for Inquiry in Case of Leak of Unpublished Price Sensitive Information. The Board is responsible for implementation of the Code. All Board Directors and the designated employees have confirmed compliance with the Code.

In accordance with the provisions of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013 and to the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors state that-

i. In the preparation of the annual accounts, the applicable Indian Accounting Standards (Ind AS) had been followed along with proper explanation relating to material departures;

ii. The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are 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 31^st March, 2025 and of the profit and loss of the company for that period;

iii. The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 2013 and Rules made thereunder for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

iv. The directors had prepared the annual accounts on a going concern basis; and

v. 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.

vi. The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

As required by the Regulation 27 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 entered into with the Stock Exchanges, a detailed report on Corporate Governance is given as a part of the Annual Report as ANNEXURE VI AND ANNEXURE -I respectively.

The Company has also complied with all the mandatory Secretarial Standards issued by The ICSI (Institute of Company Secretaries of India).

No changes have been made in nature of business carried out by company during the Financial Year 2024-25.

During the year under review, the Statutory Auditors and Secretarial Auditors have not reported any instances of fraud committed in the company by its officers or employees to the Audit Committees and/or Board under the section 143(12) of the Act.

General Shareholder Information is given in Report on Corporate Governance forming part of the Annual Report.

Your directors take this opportunity to express their gratitude for the unstinted commitment, dedication, hard work and significant contribution made by employees at all levels in ensuring sustained growth of the Company. Your directors also sincerely thank all the stakeholders, customers, vendors, bankers, business associates, government, other statutory bodies and look forward to their continued assistance, co-operation and support.