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Continental Chemicals Ltd.

BSE: 506935 Sector: IT
NSE: N.A. ISIN Code: INE423K01015
BSE 00:00 | 06 Aug 19.00 -0.95
(-4.76%)
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NSE 05:30 | 01 Jan Continental Chemicals Ltd
OPEN 19.00
PREVIOUS CLOSE 19.95
VOLUME 50
52-Week high 23.15
52-Week low 10.00
P/E 54.29
Mkt Cap.(Rs cr) 4
Buy Price 19.00
Buy Qty 50.00
Sell Price 20.90
Sell Qty 50.00
OPEN 19.00
CLOSE 19.95
VOLUME 50
52-Week high 23.15
52-Week low 10.00
P/E 54.29
Mkt Cap.(Rs cr) 4
Buy Price 19.00
Buy Qty 50.00
Sell Price 20.90
Sell Qty 50.00

Continental Chemicals Ltd. (CONTCHEMICALS) - Auditors Report

Company auditors report

TO THE SHAREHOLDERS OF CONTINENTAL CHEMICALS LIMITED

Opinion

We have audited the accompanying standalone financial statements of ''CONTINENTAL CHEMICALS LIMITED'' (the Company) which comprise the Balance Sheet as at March 31 2019 the Statement of Profit and Loss including the Statement of Other Comprehensive Income the Cash Flow Statement and the Statement of Changes in Equity for the year then ended 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 explanations given to us the aforesaid standalone financial statements give the information required by the Act 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 2019 and profit /loss 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) specified under section 143(10) of the companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements s ection 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 companies Act 2013 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.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of most significance in our audit of the financial statements of the current period. Key audit matters are selected from matters communicated with those charge with governance but are not intended to represent all matters that were discussed with them. The auditors' procedures relating to those matters were designed in the context of the audit of the standalone financial statements as a whole.

However there are no Key audit matters to report.

Management's Responsibility for the standalone financial statements

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 AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting recor ds in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements 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 statements 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 concern disclosing as applicable matters related to going concern 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 are responsible for overseeing the company's financial reporting process.

Auditor's Responsibilities for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our 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 aggregate they could reasonably be expected to influence the economic decision of users taken on the basis of these standalone financial statements. ( Refer Appendix A)

As part of an audit in accordance with SAs we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the standalone financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and to 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 international 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 Act 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 and the reasonableness of accounting estimates and related disclosers 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 c ompany's ability to continue as a going concern. If we conclude that material uncertainty exists we are required to draw attention in our auditor's report to the related disclosers in the standalone financial statements or if such disclosures are inadequate to modify our opinion. Our conclusion are based on the audit evidences obtained up to the date of our auditor's report. However future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation structure and content of the standalone financial statements including the disclosures and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statement that individually or in aggregate makes it probable that the economic decision of a reasonably knowledge user of the financial statements may be influenced. We consider quantitative materiality 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 the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charge with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably by 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 discloser 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 public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by the Central Government in terms of section 143(11) of the Act we give in the Annexure A statement on the matters specified in paragraphs 3 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 information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

(b) In our opinion proper books of account as required by the law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Report are in agreement with the relevant books of account.

(d) In our opinion the aforesaid standalone financial statements comply with Ind AS specified under 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 March 312019 taken on record by the Board of Directors none of the director is disqualified as on March 312019 from being appointed as a director in terms of section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B. Our report express an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.

(g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197 (16) of the Act as amended: the company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated 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 Auditor's Report in accordance with Rule 11 of the companies ( Audit and Auditors) Rules 2014 as amended in our opinion and to the best of our information and according to the explanations given to us :

(i) The Company does not have any pending litigations which would impact its financial position.

(ii) The company didn't have any long term contracts including derivative contracts for which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to investor Education and Protection Fund by the Company.

For B.K.KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
PLACE: NOIDA(Partner)
DATED:29th May 2019M. No. 074615

''ANNEXURE A'' TO THE AUDITORS REPORT

(Referred to in paragraph (1) of our report on other Legal and Regulatory requirements section of our report of even date)

1. a. The company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets.

b. The fixed assets of the company have been physically verified during the year by the management at reasonable intervals and no material discrepancies between the book records and the physical inventory have been noticed on such verification.

c. According to the information and explanation given to us and on the basis of our examination of the records of the company the title deeds of immovable properties are held in the name of the company.

2. Since the company does not have any inventory information required under Para 3(ii) 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 register maintained under section 189 of the Act accordingly Para 3 (iii) (a) & (c) of the order are not applicable to the company.

4. On the basis of information and explanation given to us the company has not entered into 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 of company's records in our opinion the company has not accepted any public deposits.

4. To the best of our knowledge and belief and according to information given to us central government has not prescribed the maintenance of cost records under sub-section (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 is generally regular in depositing with appropriate authorities the undisputed statutory dues including provident fund employees' state insurance income tax sales-tax service tax custom duty excise duty value added tax cess and any other statutory dues applicable to it. Further there was no arrears of undisputed statutory dues outstanding as 31st March2019 for a period of more than six month from the date they became payable.

(b) According to the information and explanation given to us there are no tax dues of income-tax sales-tax service tax custom duty excise duty Value added tax which have not been deposited on account of any dispute.

8. Based on our examination and according to the information and explanation given us the company has not defaulted in repayment of dues to banks. There are no dues to financial institution or debenture holders.

9. The company did not raise money by way of initial public offer or further public offer (including debt instruments) and term loans during the Year. Accordingly paragraph 3 (ix) of the order is not applicable.

10. To the best of our knowledge and belief and according to the information and explanation given to us no fraud on or by the company has been noticed or reported during the course of our audit for the year ended 31 March2019.

11. According to the information and explanations given to us and based on our examination of the records of the company the company has Paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us the company is not a nidhi company. Accordingly paragraph 3 (xii) of the order is not applicable.

13. According to the information and explanations given to us and based on our examination of the records of the company transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

14. According to the information and explanations given to us and based on our examination of the records of the company the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on our examination of the records of the company the company has not entered into non-cash transactions with directors or persons connected with him. Accordingly paragraph 3 (xv) of the order is not applicable.

16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For B.K.KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
PLACE: NOIDA(Partner)
DATED:29th May 2019M. No. 074615

Annexure - B to Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (_gthe Act)

We have audited the internal financial controls over financial reporting of CONTINENTAL CHEMICALS LIMITED (the Company) as at 31 March2019 in conjunction with our audit of the standalone 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's is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (`ICAI').

These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) issued by the Institute of chartered Accountant of India and the standards on Auditing prescribed under section 143 (10) of the companies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting of the company.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in acc ordance with generally accepted accounting principles and those receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition use or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on A udit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For B.K.KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
(Partner)
PLACE: NOIDAMembership No: 074615
DATED:29th May 2019