Decorous Investment & Trading Co. Ltd. Initiates Process for New Statutory Auditors

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:

Initiation of Appointment Process: The company has begun the process to appoint new statutory auditors.
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.
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:

Financial Metric	Amount (in ₹)
Paid-Up Equity Share Capital	3,45,00,000.00
Reserves & Surplus	37,91,460.00
Net Worth	3,82,91,460.00

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:

Depository/Form	Number of Equity Shares
NSDL	10,89,375
CDSL	23,10,325
Physical	50,300
Total	34,50,000

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.00%	-1.96%	+29.50%	+32.37%	+10.53%	+4.65%

Decorous Investment & Trading Co Ltd. has recently uncovered a compliance oversight regarding the mandatory rotation of statutory auditors, as required by Section 139(2) of the Companies Act, 2013. The company has taken swift action to rectify this issue and ensure adherence to regulatory requirements.

Key Developments

Compliance Lapse Discovery: The company discovered that M/s G.K. KEDIA & CO., their previous statutory auditors, had completed the maximum permissible tenure of ten consecutive years.
Nullification of Previous Appointment: The re-appointment of M/s G.K. KEDIA & CO., approved at the Annual General Meeting (AGM) held on September 29, 2025, has been deemed null and void ab initio.
New Auditor Appointment: The board has recommended the appointment of M/s S M G A & Co., Chartered Accountants (Firm Registration No. 014671C), as the new statutory auditors.
Shareholder Approval Pending: The appointment of the new auditors is subject to shareholder approval at an upcoming Extra-Ordinary General Meeting (EoGM).

EoGM Details

Particulars	Details
Date	November 12, 2025
Time	11:00 A.M. onwards
Mode	Video Conferencing (VC/OAVM)
E-Voting Period	November 9, 2025 (9:00 A.M.) to November 11, 2025 (5:00 P.M.)
Book Closure	November 5, 2025 to November 16, 2025 (both days inclusive)

Corrective Actions Taken

The company has initiated the process to suppress the earlier auditor appointment resolution passed at the 42nd AGM.
The Audit Committee reviewed the situation and recommended corrective action to the Board of Directors.
The Board formally reviewed and cancelled the earlier resolution, approving the proposal to appoint a new auditor.
M/s S M G A & Co. have provided written consent confirming their eligibility under Section 139(1) of the Companies Act, 2013.

The proposed appointment of M/s S M G A & Co. is for a term until the conclusion of the Annual General Meeting for the Financial Year 2025-26. Shareholders are advised to refer to the EoGM notice for further details and to participate in the e-voting process to approve the new auditor appointment.

This incident underscores the importance of rigorous compliance checks and the need for companies to stay vigilant about regulatory requirements, particularly those related to corporate governance and financial reporting.