TO THE MEMBERS OF
DECOROUS INVESTMENT AND TRADING COMPANY LIMITED
Opinion
We have audited the accompanying Financial Statements of DECOROUS INVESTMENT AND
TRADING COMPANY LIMITED, [CIN: L67120DL1982PLC289090] ("the company") which
comprises the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss for the
year ended, Statement of Changes in Equity and Statement of Cash Flows for the year then
ended, and Notes to the Financial Statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS financial statements give the information required by
the Companies, Act 2013 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
31.03.2022;
b) In the case of the Statement of Profit and Loss, of the Profit of the company for
the year ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows of the company for the
year ended on that date. d) In the case of the Changes in Equity, of the equity flows of
the company for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements 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 statements under the provisions of the Companies Act, 2013 and the Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
This section of our auditors report is intended to describe the matters selected from
those communicated with management that, in our professional judgment, were of most
significance in our audit of the financial statements, except for the matter described in
the Basis for Qualified (or Adverse) Opinion section and the material uncertainty
described in the Going Concern section. We have determined that there are no such matters
to report on the basis of these financial statements.
Managements responsibilities for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, (changes in equity) and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
accounting Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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 implementation and maintenance of
accounting policies; making judgments and estimates that are reasonable and prudent; and
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 the financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
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 companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors 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, As part of an audit in
accordance with SAs professional judgment is exercised and professional skepticism is
maintained throughut the audit. Misstatements can arise from fraud or errorand are
considered materialif, individually or in the aggregate, they could reasonably be expected
to influence the economin decisions of userstaken on the basis of these financial
statements.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Department of Company Affairs, in terms of sub-section (11) of section 143
of the Companies Act, 2013, we give in the "Annexure "I" a statement
on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we Report that: a) We have sought and
obtained all the information and explanations, which to the best of our knowledge and
belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
c) The Balance Sheet, Statement of Profit & Loss (Including other comprehensive
income), Cash Flow Statement and Change in Equity dealt with by this Report are in
agreement with the books of account;
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rule, 2014;
e) On the basis of written representations received from the Directors as on 31st
March, 2022 and taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 2022 from being appointed as a director in terms of section
164(2) of the Act.
f) The company has no branch offices and consequently we have not received any report
on accounts of accounts of branch of the company
. g) With respect to the adequacy of the internal financial controls with reference to
financial statement of the Company and the operating effectiveness of such controls, refer
to our separate report in "Annexure "II". h) With respect to the
other matters to be included in the Auditors Report in accordance with Rule 11 of the
Companies (Audit & Auditors), Rule, 2014, in our opinion and to the best of our
information and according to the explanations given to us: (i) The Company does not have
any pending litigation which would impact its financial position; (ii) The Company has not
entered in any of the long-term derivative contracts as on March 31, 2022. Therefore, the
Company does not require making any provision thereof, as required under the applicable
law or accounting standards.
(iii) No amount is required to be transferred to the Investor Education and Protection
Fund by the company as on March 31, 2022.
(iv) The management has represented that, to the best of its knowledge & belief,
other than those disclosed in the notes to accounts, a) No funds have been advanced or
loaned or invested by the company to or in any other person(s) or entities, including
foreign entities ("Intermediaries"), with the understanding whether recorded in
writing or otherwise, that the intermediary shall whether directly or indirectly lend or
invest in other persons or entities identified in any manner by or on behalf of the
company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf
of ultimate beneficiaries.
b) No funds have been received by the company from any person(s) or entities including
foreign entities ("Funding Parties") with the understanding that such company
shall whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the funding party (ultimate
beneficiaries) or provide guarantee, security or the like on behalf of the Ultimate
beneficiaries. c) Based on the information & explanation provided to us &
performing such audit procedures that has been considered reasonable and appropriate in
the circumstances, nothing has come to the notice that has caused to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
(v) No Dividend declared or paid during the year by the company which is in compliance
with section 123 of the Companies Act, 2013.
| For G. K. Kedia & Co. |
|
| Chartered Accountants |
|
| F. R. No.: 013016N |
|
| Kanishka Aggarwal |
Place: New Delhi |
| Partner |
Date: 21.05.2022 |
| Membership No. 544129 |
|
| UDIN: 22544129AJISEY9480 |
|
ANNEXURE - "I" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE IND AS
FINANCIAL STATEMENTS OF DECOROUS INVESTMENT AND TRADING COMPANY LIMITED
(as referred in Paragraph 1 of Other Legal and Regulatory Matters in Independent
Auditors Report)
We report on the matters contained in Paragraph 3 of the Companies(Auditors
Report)Order, 2020asfollows:
i) a) A) The company has maintained proper records showing full particulars,including
quantitative details and situation of Property, Plant and Equipment;
B) According to the information and explanation given to us, there are no intangible
assets held by the company. So, this sub-clause is not applicable to the Company.
b) According to the information and explanation given to us, those fixed assets were
physically verified by the management at reasonable intervals & no material
discrepancies have been noticed.
c) According to the information and explanation given to us, there is no immovable
property held by the company.
d) The company has not revalued its Property, Plant & Equipment (including Right of
Use assets) or intangible assets or both during the year.
e) No Proceedings have been initiated or pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 & rules made
thereunder.
ii) a) According to the information and explanation given to us, there is no inventory
held by the company. So, this sub clause is not applicable to the Company.
b) The Company has not been sanctioned working capital limits in excess of five crore
rupees, in aggregate from banks or financial institutions, at any point of time during the
year on the basis of security of current assets.
iii) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, the Company has not granted loans and advances,
secured or unsecured, to companies, firms, LLP or other parties covered in the register
maintained under section 189 of the Companies Act, 2013.
a) In respect of loans or advances in nature of loans provided or stood guarantee or
provided security to any other entity.
A) With respect to subsidiaries, joint ventures & associates
| Particulars |
Aggregate Amt during the year |
Balance o/s st as on 31 March 2022 |
| N.A. |
N.A. |
N.A. |
| B) With respect to parties other than subsidiaries, joint ventures &
associates |
| Particulars |
Aggregate Amt during the year |
Balance o/s st as on 31 March 2022 |
| N.A. |
N.A. |
N.A. |
b) The terms of loans and advances in nature of loans and guarantees provided are not
prejudicial to the companys interest.
c) In respect of loans and advances in nature of loans, the repayment of principal will
be made as bullet payment within the stipulated time by the borrower and payment of
interest has been stipulated and the receipts are regular.
d) The total amount overdue for more than ninety days is Rs. 2,04,730.00 and the
company has provided constant reminders for payment of interest to the borrowers of such
loans.
e) The company has not renewed or extended or granted any fresh loans to settle the
overdues of existing loans. Therefore, this sub-clause is not applicable to the company.
f) The company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment.
iv) According to the information and explanations given to us and on the basis of
ourexaminationofthebooksofaccounts, the Company has complied with the provisions of
section 185 & 186 of the Companies Act,2013in respect of loans, Investments,
Guarantees and Securities; v) The Company has not accepted any deposits from the public in
accordance with theprovisions of sections 73 to 76 of the Act and the rules framed
thereunder.
vi) Company is not covered by the Companies (Cost Records and Auditors) Rules, 2014; so
this clause is not applicable to company.
vii) According to the information and explanations given to us, in respect of statutory
dues:
a) The Companyhasbeenregularindepositingundisputedstatutorydues,includingprovident
fund, employees state insurance, Income Tax, sales tax, service tax, duty of customs,
duty of excise, value added tax, cess and other statutory dues applicable to it with the
appropriate authorities and as on 31.03.2022, no amount was outstanding for a period of
more than six months from the date they became payable;
b) No dues were required to be deposited on account of any dispute with income tax or
sales tax or service tax or duty of customs or duty of excise or value added tax.
Therefore, this sub-clause is not applicable for this company;
viii) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of accounts, the Company does not have any
transactions to be recorded in the books of account that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
ix) a) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of accounts, the Company does not have any
loans or borrowing from a financial institution, bank, Government or dues to debenture
holders, therefore this clause of the Order is not applicable to this company;
b) The company is not a declared willful defaulter by any bank or financial institution
or other lender. c) No Term loans were applied by the company during the year. d) Funds
raised on short term basis have not been utilised for long term purposes.
e) Company has not taken any funds from any entity or person on account of or to meet
the obligations of its subsidiaries, associates, or joint ventures.
f) Company has not raised loans during the year on pledge of securities held in its
subsidiaries, joint ventures, or associate companies.
x) a) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of accounts, the Company did not raise any
moneys by way of IPO/ FPO (including debt instruments) and term loans during the year,
therefore this clause of the Order is not applicable to this company;
b) Company has not made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year.
xi) a) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of accounts, no fraud by Company or any fraud
on the company by its officers or employees has been noticed or reported during the year;
b) No Report under sub-section (12) of section 143 of the companies act was required to
be filed in form ADT-4 as prescribed under rule 13 of companies (audit and auditors)
rules,2014 with the central government.
c) Whistle blower complaints if any, received by the company during the year has been
duly considered.
xii) The Company is not Nidhi company, therefore the provisions of clause (3) (xii) of
the Order are not applicable to the company;
xiii) In our opinion and according to the information and explanations given to us, all
related partys transactions are in compliance with sections 177 and 188 of Companies
Act,2013 and the details of same have been disclosed in Ind AS financial statements etc.,
as required by the applicable accounting standards;
xiv) a) The company has maintained an adequate internal audit system commensurate with
the size and nature of its business;
b) The reports of the Internal Auditors for the period under audit were considered by
the statutory auditors for the purpose of drawing the opinion.
xv) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, the Company has not entered into any non cash
transactions with directors or person connected with him, during the reporting period,
therefore this clause of the Order is not applicable to this company;
xvi) a) According to the information and explanations given to us and on the basis of
our examination of the books of accounts, the company is not required to be registered u/s
45-IA of Reserve Bank of India Act, 1934.
b) Company has not conducted any non banking financial or housing finance activities
without a valid certificate of registration from the Reserve Bank of India, as per Reserve
Bank of India Act, 1934.
c) Company is not a core investment company (CIC) as defined in the regulation made by
the Reserve Bank of India, so this clause is not applicable.
d) The group has not CIC as part of the group.
xvii) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company has not incurred any
cash losses in the financial year and in the immediately preceding financial year.
xviii) According to the information and explanations given to us, there has not been
any resignation of the statutory auditors during the year. Therefore, this clause is not
applicable for the company;
xix) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, on the basis of the financial ratios, ageing and
expected dates of realization of financial assets and payment of financial liabilities,
other information accompanying the financial statements, the auditors knowledge of the
Board of Directors and management plans, we are of the opinion that no material
uncertainty exists as on the date of the audit report that company is capable of meeting
its liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date;
xx) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the books of accounts, the Company is not having any
ongoing projects or are coming in the upcoming future. Therefore, this clause of the Order
is not applicable to the company;
xxi) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, the Company is a standalone company and doesnt
prepare any consolidated financials. Therefore, this clause of the Order is not applicable
to the company.
| For G. K. Kedia & Co. |
|
| Chartered Accountants |
|
| F. R. No.: 013016N |
|
| Kanishka Aggarwal |
Place: New Delhi |
| Partner |
Date: 21.05.2022 |
| Membership No. 544129 |
|
| UDIN: 22544129AJISEY9480 |
|
ANNEXURE - "II" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE IND
AS FINANCIAL STATEMENTS
(As referred in Paragraph 2(g) of Other Legal and Regulatory Matters in Independent
Auditors Report)
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013 ("THE ACT")*
We have audited the internal financial controls over financial reporting of DECOROUS
INVESTMENT AND TRADING COMPANY LIMITED ("the Company") as of March 31, 2022
in conjunction with our audit of the Ind AS financial statements of the Company for the
year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that amaterial weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding their liability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2022, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
| For G. K. Kedia & Co. |
|
| Chartered Accountants |
|
| F. R. No.: 013016N |
|
| Kanishka Aggarwal |
Place: New Delhi |
| Partner |
Date: 21.05.2022 |
| Membership No. 544129 |
|
| UDIN: 22544129AJISEY9480 |
|
+91-9892691696
