TO THE SHAREHOLDERS OF CONTINENTAL CHEMICALS LIMITED
We have audited the accompanying financial statements of CONTINENTAL CHEMICALSLIMITED (the Company) which comprise the Balance Sheet as at March312021 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information(hereafter referred to as Ind AS Financial Statements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312021 and profit changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditors Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignifi cance in our audit of the financial statements of the current period. Key auditmatters are selected from matters communicated with those charge with governance but arenot intended to represent all matters that were discussed with them. The auditorsprocedures relating to these matters were designed in the context of the audit of thefinancial statements as a whole.
However there are no Key audit matters to report .
Management's Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance of the Company inaccordance with the AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for prventing anddetecting 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.
In preparing the financial statements management is responsible for assessing theCompanys ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are responsible for overseeing the companys financi alreporting process.
Auditor's Responsibilities for the Audit of Financial Statements
Our Objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in aggregate theycould reasonably be expected to influence the economic decision of users taken on thebasis of these financial statements. (Refer Appendix A)
As part of an audit in accordance with SAs We exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and to obtain audit evidence that is sufficient and a ppropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an un derstanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate
internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on thecompanys ability to continue as a going concern. If we conclude that materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opin ion. Our conclusion are based on the audit evidences obtained up to thedate of our auditors report. However future events or conditions may cause thecompany to cease to continue as a going concern.
Evaluate the overall presentation Structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statement thatindividually or in aggregate makes it probable that the economic decision of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factor in (i) planning the scope of our audit work; and (ii)to evaluate the effect of any identified misstatement in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant decencies in internal control that we identify during our audit.
We also provide those charge with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communicat i on.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order 2016 (theOrder) issued by the Central Government of India in terms of section 143(11) of theAct we give in Annexure I a statement on the matters specified in paragraphs3 and 4 of the Order.
As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the info rmation and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by the law have been kept bythe Company so far as it appears from our examination of those bo oks.
(c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Reportare in agreement with the relevant books of account.
(d) In our opinion the aforesaid financial statements comply with Ind AS specifiedunder Section 133 of the Act read with relevant rules issued there under.
(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the director is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.
(f) 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 . Our report express an unmodified opinion on the adequacyand operating effectiveness of the Companys internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Auditors report inaccordance with the requirements of section 197(16) of the Act as amended the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.
(h) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
(i) The company does not have any pending litigations which would impact its financialposition.
(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to Investor Educationand Protection Fund by the Com pany.
|sd/- B.K.KAPUR AND CO. Chartered Accountants |
|Firm Registration No. 000852c |
|(m.s.kapur) f. c a. |
|(Partner) Membership No: 0746i5 |
|Place : NOIDA |
|Dated : 19-06-2021 |
|UDIN - 21074615AAAAHV3641 |
ANNEXURE A TO THE AUDITORS' REPORT
(Referred to in paragraph (1) of our Report on other Legal and Regulatory requirementssection of our report of even date)
1. a. The company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.
b. To the best of our knowledge and belief and according to information given to usCentral Government has not prescribed the maintenance of cost records under subsection (1)of section 148 of the Companies Act 2013 for the products of the Company.
1. a. The company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.
b. The fixed assets of the company have been physically verified during the year by themanagement at reasonable intervals and no material discrepancies between the book recordsand the physical inventory have been noticed on such verification.
c. According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties are heldin the name of the Company.
2. Since the company does not have any inventory information required under Para 3(H)is not being given.
3. According to information made available to us the company has not granted any loan secured or unsecured to companies firms LLPs or other parties covered in the registermaintained under section 189 of the Act accordingly Para 3(iii)(a) & (c) of the Orderare not applicable to the company.
4. On the basis of information and explanation given to us the company has not enteredinto transactions mentioned in section 185 and 186 of the Act accordingly paragraph 3(iv)of the Order is not applicable.
5. On the basis of information and explanation given to us and our scrutiny ofcompany's records in our opinion the company has not accepted any public deposits.
6. To the best of our knowledge and belief and according to information given to usCentral Government has not prescribed the maintenance of cost records under subsection (1)of section 148 of the Companies Act 2013 for the products of the Company.
7. (a) According to the information and explanation given to us the company isgenerally regular in depositing with appropriate authorities the undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxcustom duty excise duty value added tax cess and any other statutory dues applicable toit. Further there was no arrears of undisputed statutory dues outstanding as at 31stMarch 2021for a period of more than six month from the date they became payable.
(b) According to the information and explanations given to us there are no tax dues ofincome-tax sales-tax service tax custom duty excise duty value added tax which havenot been deposited on account of any dispute.
8. Based on our examination and according to the information and explanation given usthe company has not defaulted in repayment of dues to banks. There are no dues tofinancial institution or debenture holders.
9. The company did not raise money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.
10. To the best of our knowledge and belief and according to the information andexplanation given to us no fraud on or by the company has been noticed or reported duringthe course of our audit for the year ended 31 March 2021
11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has - not entered into non cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
16. The Company is not required to be registered under-section 451 A of the ReserveBank of India Act 1934.
| ||For B.K.KAPUR AND CO. Chartered Accountants |
| ||Firm Registration No. 000852C |
| ||Sd/- |
|PLACE: NOIDA DATED: 19-06-2021 ||(M.S.KAPUR) F. C. A (Partner) |
| ||M. No: 074615 |
Annexure' - B to Independent Auditors" 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 CONTINENTALCHEMICALS LIMITED (the Company) as of March 31 2021 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.
These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to companys policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note) issued by the Institute of Chartered Accountant of India andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 judgment 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 internal financial controls system overfinancial reporting of the company.
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 accountingprinciples and those receipts and expenditures of the company are being made only inaccordance with authorizations of management 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.
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 2021 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.
|b.k.kapur and co. |
|Chartered Accountants Firm Registration No. 000852c |
|(Partner) Membership No: 0746i5 |
|Place : NOIDA |
|Dated : 19-06-2021 |