Decorous Investment & Trading Co Limited (DITCL) has reported a significant increase in its net profit for the half-year ended September 30, 2025. The company's financial performance shows a remarkable improvement compared to the same period last year.

Financial Highlights

Key Points

• DITCL's net profit for Q2 FY2026 reached ₹348.48 thousand, compared to ₹198.49 thousand in Q2 FY2025, marking a 75.57% increase.
• The company's half-year profit nearly doubled, rising to ₹784.54 thousand from ₹393.62 thousand in the previous year, representing a 99.31% growth.
• The substantial profit growth was primarily driven by other income receipts.

Financial Performance Analysis

The unaudited financial results for the quarter and half-year ended September 30, 2025, reveal:

• Total revenue for Q2 FY2026 stood at ₹549.88 thousand, entirely from other income/receipts.
• Operating expenses for the quarter were ₹201.39 thousand, including employee benefits expense of ₹149 thousand.
• The company maintained a lean operation with minimal depreciation and other expenses.

Balance Sheet Highlights

As of September 30, 2025:

• Total assets stood at ₹39,232.23 thousand, a slight increase from ₹38,441 thousand as of March 31, 2025.
• The company's equity share capital remained unchanged at ₹34,500 thousand.
• Other equity increased to ₹4,576.01 thousand from ₹3,791.46 thousand at the end of the previous fiscal year.

Cash Flow Position

• Cash and cash equivalents decreased to ₹37.35 thousand as of September 30, 2025, compared to ₹604.88 thousand at the beginning of the fiscal year.
• The decrease in cash balance was primarily due to an increase in other financial assets and current assets.

DITCL's strong performance in H1 FY2026 demonstrates its ability to generate significant profits, primarily through other income sources. The company's lean operational structure and growing equity position indicate a focus on financial stability and growth.

Decorous Investment & Trading Co Ltd. (DITCL) has announced a significant change in its auditing arrangements, as the company begins the process of appointing new statutory auditors. This development comes after receiving a withdrawal letter from G.K. Kedia & Co. Chartered Accountants, citing ineligibility for reappointment under Section 139(2) of the Companies Act, 2013.

Background of the Auditor Change

G.K. Kedia & Co. has served as DITCL's statutory auditors for the past ten years. Initially, the firm had provided consent for reappointment. However, upon further review, they determined that the company falls under the mandatory auditor rotation provisions, making them ineligible for another term.

Key Points of the Withdrawal

• Immediate Effect: G.K. Kedia & Co. will cease to act as statutory auditors with immediate effect.
• No Objection: The auditing firm has confirmed they have no objection to the company appointing new auditors.
• Cooperation Assured: G.K. Kedia & Co. has committed to extending full cooperation to ensure a smooth transition and support in any future regulatory or legal proceedings if required.

Company's Response and Next Steps

DITCL has taken prompt action in response to this development:

1. Initiation of Appointment Process: The company has begun the process to appoint new statutory auditors.
2. Scheduled Meetings: DITCL has called for meetings of the Audit Committee, Remuneration & Nomination Committee, and Board of Directors to be held on October 18, 2025.
3. Extraordinary General Meeting: An EGM has been scheduled for October 18, 2025, to address the auditor reappointment matter.

Financial Position of DITCL

As per the latest available financial information:

It's worth noting that these figures place DITCL below the threshold limits specified in SEBI (LODR) Regulations, 2015, exempting the company from certain corporate governance provisions applicable to larger entities.

Shareholding Pattern

As of September 30, 2025, the equity shares of DITCL are held as follows:

This change in statutory auditors marks a significant corporate governance event for Decorous Investment & Trading Co. Ltd. The company's proactive approach in addressing this matter and scheduling necessary meetings demonstrates its commitment to regulatory compliance and transparent operations.