H. K. KOTWALIA & CO. CHARTERED ACCOUNTANTS. B-2A31, Janak Puri, Metro Pillar No. 536, New Delhi - 110058 Phone : 011-41650299 Mobile :+81-9810450299, 9999701196, E-mail : [email protected] / [email protected] ‘[email protected] Web. : www.hkkotwalia.com INDEPENDENT AUDITOR'S REPORT ‘To the Members of DELHI CREATIVE ARTS DEVELOPMENT LIMITED (Formerly known as DSIIDC EXIM LIMITED) New Delhi Report on the Audit of the Financial Statements 1) Opinion We have audited the accompanying financial statements of DELHI CREATIVE ARTS DEVELOPMENT LIMITED, (Formerly known as DSIDC EXIM LTD), NEW DELHI with CIN U74900DL2011SGC219497 ("the Company"), which comprise the balance sheet as at March 31, 2023 and the Statement of Profit and Loss 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 financial statements give the information required by the Companies Act, 2013 (‘Aci) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its Loss for the year ended on that date. 11) Basis for opinion ‘We conducted our audit in accordance with the standards on auditing specified under section 143 (10) ofthe Companies Act, 2013. Our responsibilities under those Standards are further described is auditor's 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 Act 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. the™m, Iv) Material Uncertainty Related to Going Concern We draw attention to Point no. Note no. 10 & 11 in the financial statements, which indicates that the company incurred a net toss of Rs 48,217.50/- during the year ended 31" March 2023, and, as of that date, the Company's liabilities exceeded its total assets by 1,48,217.50/- in addition to waiver of loan liability by DSIIDC Ltd. Of Rs. 5,69,082/- As stated in Note I()(C) ie. “Going Concern” the company though had mace change of name and inserted new line of business in its object clause of Memorandum of Association in F.Y. 2015-16, same had not been started and there was no existing business, which together with only some minimum compliance expenses being incurred year to year, leads t0 significant un-certainty about the company’s ability to continue as @ going concern. Further Point C of Note no. | of Significant Accounting Policies and Additional Notes to Accounts the Board of DSIDC (Holding Co) in its 293rd meeting held on 30.03.2022 it was discussed and after deliberation gave its approval for initiating steps for closure of the Company Delhi Creative Aris Development Limited. Shareholders in its Annual General Meeting dated 22.12.2022 has approved to strike off the name of Dethi Creative Arts Development Lid. from the records of the Registrar of Companies (ROC). It is explained to us that the procedure to strike off the name of company has already been started and is under process. Emphasis of Matter We draw the attention of members to following financial matter: 1) Company, in its notes to accounts under the head “Contingent Liabilities” vide Para 2 vy) (I(A)(0) to Q) of Note no-I to the financial statement, had mentioned the delay in filing of certain forms / resolutions, doing certain compliances ete with Registrar of Companies, Delhi in past years which may entail certain penalties. It had also mentioned steps are being taken to resolve the same by proper determination. Management also ‘submitted that they are obtaining an independent legal opinion from Practicing Company Secretary on the matter, which they would be submitting during the subsequent audit on Final determination. In view of same, the contingency still remained and we are not in position to offer any opinion on it till final determination, The Company is filing its income tax return under old name. The Company has not got changed its PAN in new name. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the eurrent period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion ther 1¢ do not provide a separate opinion on these matters.Information other than the financial statements and auditors' report thereon vp vi) ‘The Company's board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Board's Report including Annexure to Board's Report, Business Responsibility Report but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements do not cover the other information and we do not express any form of assurance / conclusion thereon. In connection with our audit of the financial statements, our responsibility isto read the other information and, in doing so, consider Whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact, and we have nothing to report in this regard. I statements Management's responsibility for the finan ‘The Company’s board of directors is responsible for the matters stated in section 134 (5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act. 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 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 Company's ability to continue as a going concems, disclosing, as applicable, matters related to going concem 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 is also responsible for overseeing the Company’s financial reporting process. Auditor's responsibilities 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 auditor's report tha TAY 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. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: + Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide ‘a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. + Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls + Evaluate the appropriateness of accounting policies used andthe reasonableness of accounting estimates and related disclosures made by management, + Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained ,whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concer If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, If such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. Future events or conditions may cause the Company to cease to continue as a going concer, + Evaluate the overall presentation, structure and content of the fina statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation, We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify du i ig our audWe also provide those charged with governance with a statement that we have complied with relevant cthical requirements regarding independence, and to communicate with them all relationships and fther matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the pul benefits of such communication, interest VII) Report on other legal and regulatory requirements 1, As required by the Companies (Auditor's Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A. a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 2. We are also enclosing our report in terms of Section 143(5) of the Companies Act, 2013 in respect of directions & additional Sub-directions issued by C&AG of India on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us & which to the best of our knowledge and belief, were necessary for the purpose of our audit in Annexure-I and Annexure IL, respectively. 3. As required by Section 143(3) of the Act, we report that: a) Subject to our observations as per para IV (Emphasis of Matter), 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) Subject 10 our observations as per para IV (Emphasis of Maiter), in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; ©) The balance sheet and the statement of profit and loss dealt with by this report are in agreement with the books of account; 4) Subject 10 our observations as per para IV (Emphasis of Matter) covered by IND-AS -8 dealing with prior period items, in our opinion, the aforesaid financial statements comply with the accounting standards specified under section 133 of the Act, read with rule 7_ of the Companies (Accounts) Rules,2014;©) The going concern matter described under Material Uncertainty Related to Going Concern paragraph above, in our opinion, may have an adverse effect on the functioning of the Company; £) The Central Government vide notification GSR 463(E) and (F. No. 1/2/2014-CL-V) dated Sth June 2015, has exempted Government Companies from the application of the provision of section 164(2) of the Companies Act 2013; 8) In view of exemption granted by Central Government, in terms of Notification no GSR 583(E) dtd, 13th June 2017, reporting on the Internal Financial Controls under clause (i) of sub section 3 of section 143 of the Companies Act, 2013 (the Act), is not applicable in case of the company. h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us; a, The Company does not have any pending litigations which would impact its financial position ; b. The Company did not have any long-term contracts inclu: which there were any material foreseeable losses; and 1 derivative contracts for ©. There has been no delay in transferring amounts, required 10 be transferred, to the investor Education and Protection Fund by the Company. For HK. Kotwal Chartered Acea % Partner M. No. 095946 Date: 26.09.2023 UDIN: 23095946BGY ADG3649Annexure I Direction under section 143(5) of Companies Act 2013 Applicable for the year 2022-23 accounts Direction Reply |_| Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT’ system on the integrity of the accounts alongwith the financial implications, if any, may be stated. ‘Accounting of audit fees. ROC fees and other professional fees are being accounted through Tally accounting software. There is no other transaction during the year. | Whether there is any restructuring of an. loan or cases of waiveriwrite off of debts Ioans/interest etc, made by a lender to the company due to the company's _ inability to repay the loan? If yes, the financial impact may be stated existing Yes, the outstanding balance in Toan account of DSIIDC Ltd. (holding company) for Rs. 5,69,082/- has been waived off by DSIIDC Ltd. due to the company’s inability to repay the Joan, Due to this the balance of Reserves reduced by Rs. $,69,082/ Whether funds receivedireceivable for specific scheme from central/ state agencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation. No such fund received by the Company during the year. CA. Rajesh Khun Partner Mano. 095946 Place: New Delhi Date: 26.09.2023 UDIN: 23095946BGYADG3649Annexure Il Additional Sub- Directions under section 143 (5) of Companies Act 2013 for the year 2022-23, S.No. Direction Reply Please examine the balances which appear in the balance sheet for more than three years and to see whether transaction wise details are available, valuation and estimation have been correctly done, provisions for non-realizability of debts and advances and for all diminution of value of assets is adequate. There was of debt from Holding Company (DSIIDC Ltd) on account of annual compliances and other expenses (audit / professional payments) of the auditee company due to non- operating business of latter. The said debt was increasing from year to year and is subject 10 observations in our audit report of even date (para no. VII thereof). The auditee might have not be able to pay off the same in view of un- certainty existing about its ability to continue as going concern as mentioned in para IIT of ow ‘audit report. The outstanding debt has been waived off by the DSIIDC Ltd. during the year. ~ 2 | Whether the company has assessed/ estimated the | There are no ongoing projects in the company, losses in the ongoing contracts and the company | hence this clause is not applicable. has made adequate provisions for losses in accounts? 3_| What is system regarding payment of interest on | There are no deposits made by other government deposits made by other government departments | departments in the company, in terms of instructions of Finance Department of the state Government? 4 | Whether funds received! receivable for specific | Company has not received any funds from schemes from central/state agencies were | Central/State agencies during the year under properly accounted for/ utilized? List the cases of | audit. As per the explanation given to us there is deviation, no receivable from Central/State Govt 5 | Examine and state the system of allotment of | The company has not allotted any industrial industrial plots/ sheds including recovery of installments from the allottees. What is the system of imposing penalty due to delay in setting up of business or starting business other than the one for which the allotment was made? plots/sheds during the year under audit. Hence this clause is not applicable, UDIN: 23095946BGYADG3649o Annexure A to Independent Au tors’ Report Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ of the Independent Auditors’ Report of even date to the members of DELHI CREATIVE ARTS DEVELOPMENT LIMITED (Formerly known as DSIDC EXIM LIMITED) on the financial statements as of and for the year ended 31 March 2023 To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that: vi. vii viii, In respect of the Company's Property, Plant and Equipment and Intangible Assets: The Company does not have any Property, Plant and Equipment and Intangible Assets and hence reporting under clause 3(i) of the Order is not applicable. (a) The Company does not have any inventory and hence reporting under clause 3(ii)(a) of the Order is not applicable. (b) The Company has not been sanctioned working capital limits in excess of € 5 crore, in aggregate, at any points of time during the year, from banks or financial institutions on the basis of current assets and hence reporting under clause 3(ii)(b) of the Order is not (a) The Company has not granted loans or advances to any companies during the year. Hence clause 3 (iii) (a),(b),(c),(4), and 9 (¢ ) of the Order is not applicable. The Company has not granted any loans or made any investments, or provided any guarantee or Securities, hence clause 3 (iv) of the Order is not applicable. ‘The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of the Order is not applicable The maintenance of cost records has not been specified by the Central Government under subsection (1) of section 148 of the Companies Act, 2013 for the business activities carried out by the Company. Hence, reporting under clause (vi) of the Order is not applicable to the Company. 18) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees’ state insurance, income tax, Goods and Services Tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities. b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income tax, Goods and Services Tax, duty of customs, and duty of excise or value added tax which have not been deposited on account of any dispute. There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) (a) The Company has not taken any loans or other borrowings from any lender. Hence reporting, under clause 3(ix)(a) of the Order is not aAnnexure A to Independent Auditors’ Report Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ of the Independent Auditors’ Report of even date to the members of DELHI CREATIVE ARTS DEVELOPMENT LIMITED (Formerly known as DSIIDC EXIM LIMITED) on the financial statements as of and for the year ended 31 March 2023 xi xii xili xv. (b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority. (¢) The Company has not taken any term loan during the year and there are no outstanding term loans at the beginning of the year and hence, reporting under clause 3(ix)(c) of the Order is not, applicable. (@) On an overall examination of the financial statements of the Company, funds raised on short- term basis have, prima facie, not been used during the year for long-term purposes by the Company. (©) The company does not have any subsidiaries, associate and joint venture. Hence reporting under clause 3(ix)(e) does not applicable to the company. (®) The Company has not raised any loans during the year and hence reporting on clause 3(ix)(f) of the Order is not applicable. (@) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x) of the Order is not applicable, (@)No fraud by the Company and no material fraud on the Company has been noticed or reported during the year. (b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report. (©) No whistle blower complaints received during the year by the company. Hence reporting under clause 3(xi)(¢ ) of the order is not applicable. ‘The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable, In our opinion, the Company is in compliance with Section 88 of the Companies Act, 2013 with respect to applicable transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards. ‘The Company does not have internal audit system commensurate with the size and nature of its business. In our opinion during the year the Company has not entered into any non-cash transactions with its directors or persons connected with its directors. and hence provisions of section 192 of theAnnexure A to Independent Auditors’ Report Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ of the Independent Au rs’ Report of even date to the members of DELHI CREATIVE ARTS DEVELOPMENT LIMITED (Formerly known as DSIDC EXIM LIMITED) on the financial statements as of and for the year ended 31 March 2023 xvii xviii xix, (xx) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) (c ) and (d) of the Order is not applicable, ‘The Company has incurred cash losses of Rs. 48217.50/- during the financial year covered by our audit and Rs. 49130/- in the immediately preceding financial year. ‘There has been no resignation of the statutory auditors of the Company during the year as the Company is a Government Company, the Statutory Auditors has been appointed by the CAG every year. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due a period of one year from the balance sheet date. (a) The company has not transferred any unspent amount to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year. (b) The Company does not have any unspent amount under sub-section (5) of section 135 of the Companies Act. Accordingly, reporting under clause 3(xx)(b) of the Order is not applicable for the year. For H.K-Kotwalia & Co. Chartered Accountants Firm’s Registration No, ; 015187-N Rajesh Khurana Partner ‘Membership No. 095946 Place: New Delhi Date: 26.09.2023, UDIN: 23095946BGYADG3649 2B4 H. K. KOTWALIA & CO. CHARTERED ACCOUNTANTS. 8.24/31, Janak Puri, Metro Pillar No. 536, New Delhi - 110058 Phone :011-41650299 Mobile: +91-9810450299, 9999701196 E-mail : [email protected] / [email protected] [email protected] Web. : www-hkkotwala.com COMPLIANCE CERTIFICATE We have conducted the audit of accounts of DELHI CREATIVE ARTS DEVELOPMENT LIMITED NEW DELHI (Formerly known as DSUDC EXIM LIMITED) for the year ended 31.03.2023 in accordance with the directions / additional sub-directions issued by the C&AG of India under Section 143(5) of the Companies Act, 2013 & enclosed with our report as Annexure-L & Ito it and certify that we have complied with all the directions /additional sub directions issued to us. ‘M.no, 095946 Place: New Delhi Date: 26.09.2023 UDIN: 23095946BGYADG3649