TO THE MEMBERSOF DECOROUS INVESTMENT AND TRADING COMPANY LIMITED
REPORT ONTHE FINANCIALSTATEMENTS
We have audited the accompanying financial statements of DECOROUS INVESTMENT ANDTRADING COMPANY LIMITED[CIN:L67120DL1982PLC289090]("the Company") whichcomprise ofthe Balance Sheet as at March 31 2016the Statement of Profit and Loss andCash Flow Statement for the year then endedand a summary of significant accountingpolicies notes and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIALSTATEMENTS
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial positionfinancialperformance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from materialmisstatementwhether due to fraud orerror.
Our responsibilityis to express anopinion on these standalone financialstatements basedon our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions oftheActandthe Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10)ofthe Act.Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assuranee about whether thefinancialstatements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement ofthe financialstatementswhether due to fraud or error.In making those risk assessments;the auditorconsiders internalfinancial control relevant to the Company's preparation of thefinancialstatements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directorsas well as evaluatingtheoverall presentationof thefinancialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on thefinancialstatements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalonefinancialstatements give the information required bythe Act in the manner so required and give a true and fair view in conformity withtheaccounting principlesgenerally accepted in India: a) Inthe case of theBalance Sheetof thestate of affairs of the company as at 31.03.2016; b) Inthe case oftheStatement of Profitand Lossof the Profit of the companyforthe year ended on that date. c) Inthe caseoftheCash Flow Statementsof thecash flows of the company for the year ended on that date.
We further report that Section 203 of Companies Act 2013 read with Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 requires to appointCompany Secretary in whole-time employment. Mr. Mohit KumarCompany Secretary of theCompany has resigned during the year dated 08.02.2016 as accepted by the Board by passingresolution on 08.02.2016.As explained to us by the management the company is in theprocess to appoint new Company Secretary.
No Company Secretary has been appointed till the date of signing of ourreport.Financials Statements are required to be signed by the Company Secretary whereverthey are appointedas required by Section134 of CompaniesAct2013. Thereforewe furtherreport that financialstatements have not been signed by the Company Secretary.
The above reporting does not affect our opiniononfinancialstatement. REPORT ON OTHERLEGALANDREGULATORYREQUIREMENTS
1. As required by sub-section (11) of Section 143 of theActa statement on the mattersspecified in paragraphs 3and 4 of the Companies (Auditors'Report) Order2016 ("theOrder") issued by the Central Government of India has been reported in"Annexure-l"to this report.
2. As required by section 143(3) of theActwe Report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessaryfor the purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c) The company has no branch offices and consequently we havenot received any report on accounts of branch of the company. d) The Balance Sheet theStatement of Profit & Lossand Cash Flow Statement dealt with by this Report are inagreement with the books of account; e) In our opinion the aforesaid financial statementscomply with the Accounting Standards specified under Section 133 of theAct read with Rule7 of the Companies (Accounts)Rule2014: f) On the basis of written representationsreceived from theDirectors as on 31st March2016and taken on record by the Board ofDirectors none ofthe Directors is disqualified as on 31st March 2016 from beingappointed as a director interms of section 164(2)of the Act; g) With respect to theadequacy ofthe internalfinancial controls over financial reporting of the Company and theoperating effectiveness of such controlsrefer to our separate report in"Annexure-11". h) With respect to the other matters to be included in theAuditer's Report in accordance with Rule 11 of the Companies (Audit&Auditors)Rule2014inour opinionandto the best of our information and according tothe explanations given to us: (i) Company does not have any pending litigation which wouldimpact its financialposition: (ii) Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses (iii) Noamounts were required to be transferred to the Investor Education and Protection Fund bythe company as on31.03.2016.
For G.K.Kedia& Co. CharteredAccountants
Satish Kumar Singh Partner M.No.525888 Place:NewDelhi Date:26.05.2016
ANNEXURE-ITOTHE INDEPENDENT AUDITOR'S REPORT OF EVENDATEON THESTANDALONE FINANCIALSTATEMENTSOF DECOROUSINVESTMENTANDTRADING COMPANY LIMITED
(asreferred inParagraph 1of otherLegaland RegulatoryMatters in IndependentAuditer'sReport)
We report onthe matters containedin Paragraph3 of the Companies (Auditor's Report)Order2016 asfollows: i) a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets; b) Those fixedassets were physically verified by the management at reasonable intervals and according tothe information and explanation given to usno material discrepancies were noticed on suchverification; c) According to information and explanation given to us and on the basis ofour examination of the books of accounts the company does not have any immovableproperty. Hence this clause is not applicable for this company; ii) Physicalverificationof inventories i.e.gold/ diamond jewellery has been conducted at reasonable intervals bythe management and according to information andexplanation givento usnomaterialdiscrepancies were noticed; iii) According to the information and explanationsgiven to us and on the basis of our examination of the books of accountsthe Companyhasnot granted loanssecuredor unsecured to companiesfirmsorotherparties covered in theregister maintained under section 189 of the CompaniesAct2013.Hencesub clause (a)(b)and (c)of this clause arenot applicable tothis company; iv) According to the informationand explanations given to us and on the basis of our examination of the books ofaccountsthe Company has not granted loansmade investmentsprovide guarantees orsecurities under section 185 & 186 ofthe CompaniesAct 2013; v) According to theinformation and explanations given to us and on the basis of our examination of the booksof accounts the Company has not accepted any deposits. Therefore compliances as statedin this clause with respect to directive issued by the Reserve Bank of India theprovision of section 73 to 76 or any other relevant provisions of the Companies Act 2013the rules framed thereunder are not required. Further according to the information andexplanations given to us no order was passed by Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other tribunal for this company.Therefore question of complianceorcontraventionwiththe samedoes not arise; vi) Theprovisionof clause(3) (vi) ofthe Order are not applicabletothe Company as the Company isnot coveredby the Companies (Cost RecordsandAuditors)Rules2014; vii) Accordingtotheinformation and explanations given tous in respect of statutory dues: a. The Companyhas been regular in depositing undisputed statutory duesincluding provident fundemployees' state insurance Income Taxsales taxservice taxduty of customs duty ofexcisevalue added tax cess and other statutory dues applicable to it with theappropriate authorities and as on 31.03.2016 no amount was outstanding foraperiod ofmorethansix months fromthe date they became payable; b. No dues were required to bedeposited on account of any dispute with income tax orsales tax or service tax or duty ofcustoms or duty of excise or value added tax. Therefore this sub-clause is not applicablefor this company; viii) In our opinion and according to the information andexplanationsgiven to us andonthe basis of our examinationof the books of accounts the Company doesnot have any loans or borrowing from a financial institution bank Governmentorduestodebentureholderstherefore this clause of theOrder is not applicableto this company; ix)In our opinion and according to the information andexplanations given to us andon thebasis of our examinationof the books of accountsthe Company did not raise any moneys byway of IPO I FPO (including debt instruments) and term loans during theyearthereforethisclause of theOrder is not applicable to this company: x) In our opinion and according tothe information and explanations given to us and on the basis of our examinationof thebooks of accountsno fraud by Company or any fraud on the company by its officers oremployees has been noticed or reported during the year; xi) In our opinion and accordingto the information and explanations given to us and on the basis of our examinationof thebooks of accounts no Managerial Remuneration has been paid during the year thereforethis clause of the Order is not applicable to thiscompany; xii) The Company is not Nidhicompanytherefore the provisions of clause (3) (xii) of the Order are not applicable tothe company; xiii) In our opinion and according to the information and explanations givento us all related parties transactions are in compliance with sections 177 and 188 ofCompanies Act 2013 and the details of same have been disclosed in Financial Statementsetc.as required by the applicable accounting standards; xiv) In our opinion and accordingto the information and explanations given to us and on the basis of our examinationof thebooks of accounts the Company has not made any preferential issue I private placement ofshares or debentures during reporting periodthereforethisclause oftheOrder isnotapplicable to this company; xv) According to the information and explanations given to usand on the basis of our examination of the books of accounts the Company has not enteredinto any non -cash transactions with directors or person connected withhimduringthereporting periodtherefore this clause oftheOrder is not applicable to thiscompany; xvi) According to the information and explanations given to usand on the basis ofour examination of the books of accountsthecompany is not required to be registered u/s45-IAofReserve Bank of IndiaAct1934.
For G.K.Kedia & Co.
Satish Kumar Singh
ANNEXURE-II TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF DECOROUS INVESTMENT AND TRADING COMPANY LIMITED
(as referred inParagraph 3(h)of Other Legaland Regulatory Matters inlndependentAuditor'sReport)
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE(I) OF SUB-SECTION 3 OFSECTION143 OF THE COMPANIES ACT2013("THEACT") We have audited the internalfinancialcontrols over financial reporting of DECOROUS INVESTMENT AND TRADING COMPANYLIMITED ("the Company") as of March 31 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNALFINANCIALCONTROLS
The Company's management is responsible for establishing and maintaining internalfinancial controls based onthe internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of InternalFinancialControls Over FinancialReporting issuedby the Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errorsthe accuracy and completeness of the accountingrecordsand the timely preparation of reliable financialinformationasrequired undertheCompaniesAct2013.
Our responsibility is to express an opinion on the Company'sinternalfinancialcontrolsover financialreporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note ) and the Standards on Auditing issued byICAl and deemed to be prescribed under section 143(10) of the CompaniesAct2013to theextent applicable to an audit of internal financial controlsboth applicable to an auditof InternalFinancial Controls and both issued by the Institute of CharteredAccountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was establishedandmaintained and if suchcontrols operated effectively inallmaterialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacyofthe internal financialcontrols system over financialreporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financialcontrols over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk.The proceduresselected depend on the auditor's judgement including the assessment of the risksofmaterialmisstatement of the financialstatementswhetherdue to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financialcontrolssystemover financialreporting.
MEANING OF INTERNAL FINANCIALCONTROLS OVERFINANCIAL REPORTING
A company's internal financialcontrol over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords thatin reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded as necessary to permitreparation of financial statements in accordance with generally accepted accountingprinciplesand that receipts and expenditures ofthe company are being made only inaccordance with authorizations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets thatcouldhave a material effect onthefinancialstatements.
INHERENT LIMITATIONS OF INTERNALFINANCIALCONTROLSOVER FINANCIALREPORTING
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not bedetected.Alsoprojections of any evaIuation of the internalfinancialcontrols overfinancialreportingto future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes inconditionsorthatthe degree of compliance with the policies or proceduresmay deteriorate.
In our opinion the Company has in all material respects an adequateinternalfinancial controls system over financial reporting and such internal financialcontrols over financialreporting were operating effectively as at March 31 2016 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofCharteredAccountantsof India.
For G.K.Kedia & Co.
Firm's Registration No.01316N
Satish Kumar Singh
DECOROUS INVESTMENT & TRADING CO.LTD