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Decorous Investment And Trading Co Ltd.

BSE: 539405 Sector: Others
NSE: N.A. ISIN Code: INE183R01010
BSE 05:30 | 01 Jan Decorous Investment And Trading Co Ltd
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Decorous Investment And Trading Co Ltd. (DECOROUSINVTRD) - Auditors Report

Company auditors report

TO THE MEMBERS OF

DECOROUS INVESTMENT AND TRADING COMPANY LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of DECOROUS INVESTMENT ANDTRADING COMPANY LIMITED [CIN: L67120DL1982PLC289090]("the Company") whichcomprise of the Balance Sheet as at March 31 2017 the Statement of Profit and Loss andCash Flow Statement for the year then ended and a summary of significant accountingpolicies notes and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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 position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting standards specified under Section133 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 material misstatement whether due to fraud orerror.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these standalone financial statementsbased on 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 of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act.Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

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 of the financialstatements whether due to fraud or error. In making those risk assessments; the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements 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 Directors as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalonefinancial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) In the case of the Balance Sheet of the state of affairs of the company as at31.03.2017;

b) In the case of the Statement of Profit and Loss of the Loss of the company for theyear ended on that date.

c) In the case of the Cash Flow Statements of the cash flows of the company for theyear ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by sub section (11) of Section 143 of the Act a statement on thematters specified in paragraphs 3 and 4 of the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government of India has been reported in"Annexure-I"to this Report.

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 bestof 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 theCompany so far as appears from our examination of those books;

c) The company has no branch offices and consequently we have not received any reporton account of branch of the company

.

d) The Balance Sheet the Statement of Profit & Lossand Cash Flow Statement dealtwith by thisReport are in agreement with the books of account;

e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rule 2014;

f) On the basis of written representations received from the Directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of section164(2) of the Act;

g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure-II".

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies

(Audit & Auditors) Rule 2014 in our opinion and to the best of our informationand according to the explanations given to us:

(i) Company does not have any pending litigation which would impact its financialposition;

(ii) Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses

(iii) No amounts were required to be transferred to the Investor Education andProtection Fund by the company as on 31.03.2017.

(iv) The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in

Specified Bank Notes during the period from 8th November 2016 to 30th December 2016and as per information and explanation given to us these are in accordance with the booksof account maintained by the company.

For G. K.Kedia & Co.

Chartered Accountants

Firm Registration No.: 013016N

Arvind Sharma

Partner

M. No. 530217

Place: New Delhi

Date: 26.05.2017

Annexure I

ANNEXURE-I TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL

STATEMENTS OF DECOROUS INVESTMENT AND TRADING COMPANY LIMITED

(as referred in Paragraph 1 of Other Legal and Regulatory Matters in IndependentAuditor's Report)

We report on the matters contained in Paragraph 3 of the Companies (Auditor's Report)Order 2016 as follows:

i) a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

b) According to the information and explanation given to us those fixed assets werephysically verified by the management at reasonable intervals & no materialdiscrepancies have been noticed

.

c) According to the information and explanation given to us the title deeds ofimmovable properties are held in the name of the company.

ii) According to the information and explanation given to us inventories werephysically verified by the management at reasonable intervals & no materialdiscrepancies have been noticed.

iii) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts

the Company has not granted loans secured or unsecured to companies firms LLP orother parties covered in the register maintained under section 189 of the Companies Act2013. Hence sub clause (a) (b) and (c) of this clause are not applicable to thiscompany;

iv) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the Company has not granted loans made investmentsprovide guarantees or securities under section 185 & 186 of the Companies Act 2013;

v) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the Company has not accepted any deposits.Therefore compliances as stated in this clause with respect to directive issued by theReserve Bank of India the provision of section 73 to 76 or any other relevant provisionsof the Companies Act 2013 the rules framed thereunder are not required. Furtheraccording to the information and explanations given to us no order was passed by CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any court or anyother tribunal for this company. Therefore question of compliance or contravention withthe same does not arise

;

vi) The provision of clause (3) (vi) of the Order are not applicable to the Company asthe Company is not covered by the

Companies (Cost Records and Auditors) Rules 2014;

vii) According to the information and explanations given to us in respect of statutorydues:

a. The Company has been regular in depositing undisputed statutory dues includingprovident fund employees' state insurance Income Tax sales tax service tax duty ofcustoms duty of excise value added tax cess and other statutory dues applicable to itwith the appropriate authorities and as on 31.03.2017 no amount was outstanding for aperiod 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 orsales 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 andon the basis of our examination of the books of accounts the Company does not have anyloans or borrowing from a financial institution bank Government or dues to debentureholders therefore this clause of the Order is not applicable to this company;

ix) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the

books of accounts the Company did not raise any moneys by way of IPO / FPO (includingdebt instruments) and term loans during the year therefore this clause of the Order isnot applicable to this company;

x) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the books of accounts no fraud by Company or any fraud onthe company by its officers or employees has been noticed or reported during the year; xi)In our opinion and according to the information and explanations given to us and on thebasis of our examination of the books of accounts no Managerial Remuneration has beenpaid during the year therefore this clause of the Order is not applicable to thiscompany;

xii) The Company is not Nidhi company therefore the provisions of clause (3) (xii) ofthe Order are not applicable to the company;

xiii) In our opinion and according to the information and explanations given to us allrelated parties transactions are in compliance with sections 177 and 188 of Companies Act2013 and the details of same have been disclosed in Financial Statements etc. as requiredby the applicable accounting standards;

xiv) In our opinion and according to the information and explanations given to us andon the basis of our examination of the books of accounts the Company has not made anypreferential issue / private placement of shares or debentures during reporting periodtherefore this clause of the Order is not applicable to this company;

xv) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the Company has not entered into any non cashtransactions with directors or person connected with him during the reporting periodtherefore this clause of the Order is not applicable to this company;

xvi) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the company is not required to be registered u/s45-IA of Reserve Bank of India Act 1934.

For G. K. Kedia & Co.

Chartered Accountants

Firm Registration No.: 013016N

Arvind Sharma

Partner

Membership No.: 530217

Place: New Delhi

Date: 26.05.2017

ANNEXURE-II

ANNEXURE-II TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF DECOROUS INVESTMENT AND TRADING COMPANY LIMITED

(As referred in Paragraph 2(g) of Other Legal and Regulatory Matters in IndependentAuditor's Report)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of DECOROUSINVESTMENT AND TRADING COMPANY LIMITED ("the Company") as of March 31 2017in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating 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 errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants 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 established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls 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 risks ofmaterial misstatement of the financial statements whether due 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 financial controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements

in accordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

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 be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For G. K. Kedia & Co.

Chartered Accountants

Firm's Registration No.01316N

Arvind Sharma

Partner

Membership No. 530217

Place : New Delhi Date : 26.05.2017