To the Members of CONTINENTAL PETROLEUM LIMITED
Report on the Financial Statements
We have audited the accompanying Financial Statements of CONTINENTAL PETROLEUMLIMITED (the company) which comprise the Balance Sheet as at 31stMarch2019 the Statement of Profit and Loss and the Statement of Cash Flow for the year thenended and notes to the financial statements including a summary of the significantaccounting policies and other explanatory information (hereinafter referred to asthe financial statements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statement give the information required by thecompanies act 2013(the act) in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 and its Profits and itscash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the act (SAs). Our responsibilities underthose Standards are further described in the Auditors' Responsibilities for theAudit of the Ind AS Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with ethical requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules made there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence obtained by us is sufficient and appropriate to provide a basis for ouraudit opinion on the Ind AS financial statements.
Information other than the Financial Statements and Auditors' Report Thereon
The company's Board of Directors is responsible for the other information. The otherinformation comprises the Directors' Report Management Discussion and Analysis Report onCorporate Governance and other Annexure to the Directors' report but does not include thefinancial statements and our auditors' report thereon.
Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. The otherinformation is not available as on date of signing the report and hence we do not reporton the information other than the financial statements and auditor's report thereon.
Management's Responsibility for the Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act') with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
Those Board of directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibility for the Audit of the Ind AS 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 a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatement can arise fromfraud or error and are considered material if individual or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
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 risk of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3) (i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls in place and the operating effectivenessof such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in auditors' report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transaction and events in a manner that achieves fairpresentation.'
Materiality is the magnitude of misstatement in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements 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 deficiencies in internal control that we identify during our audit.
We also provide those charged with statement that we have compiled with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the Order')issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specifiedin the paragraph 3 and 4 of the Order to the extent applicable.
2. 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 bestof our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
(c) The balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) In pursuance to the Notification No. G.S.R 463(E) dated 05-06-2015 issued by theMinistry of Corporate affairs Section 164(2) of the Companies Act 2013 pertaining todisqualification of Directors is not applicable to the Government Company.
(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 B
(g) In pursuance to the Notification No. G.S.R 463(E) dated 05-06-2015 issued by theMinistry of Corporate affairs Section 197(16) of the Companies Act 2013 pertaining toManagerial Remuneration is not applicable to the Company.
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements for the year ended 31st March 2019 underNotes on Accounts Contingent Liabilities and Capital Commitments to the extent notprovided for
b. The Company did not have any long - term contracts including derivative contractsfor which there were any material force able losses.
c. The Company is not required to transfer any amount to the Investor Education andProtection Fund.
| ||FOR: GOPAL SHARMA & COMPANY |
| ||Chartered Accountants |
| ||FRN No. 002803C |
| ||Sd/- |
| ||Abhishek Sharma |
|Place: Jaipur ||(Partner) |
|Date: 30.05.2019 ||M. No.:- 079224 |
The Annexure referred to in paragraph 1 of Our Report on Other Legal andRegulatory Requirements.
We report that:
i. In respect of Company's Fixed Asset
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b. As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the Company.
ii. In respect of loans secured or unsecured granted by the Company to companiesfirms or other parties in the register maintained under section 189 of the companies Act.
a. According to the information and explanations given to us the Company has notgranted any loan to the parties listed in the register maintained under section 189 of theAct
b. The Company has also given advances in the nature of loans of its employees whichare recovered regularly together with interest if applicable as per Company policy.
iii. In respect of loans investments guarantees and security provisions of Section185 and 186 of the Companies Act 2013 have been complied with.
iv. The Company has not accepted any deposits from the public covered under Sections 73to 76 of the Companies Act 2013.
v. As per information & explanation given by the management maintenance of costrecords has not been specified by the Central Government under sub-section (1) of Section148of the Companies Act 2013.
vi. a. According to the records of the Company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Service Tax Custom Duty Excise Duty value added tax cess andany other statutory dues to the extent applicable have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st of March 2019 for a period of morethan six months from the date they became payable.
b. According to the information and explanations given to us there is no amountpayable in respect of income tax service tax sales tax customs duty excise duty valueadded tax and cess whichever applicable which have not been deposited on account of anydisputes.
vii. In our opinion and according to the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank Government or debenture holders as applicable to theCompany.
viii. Based on our audit procedures and according to the information given by themanagement the Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.
ix. According to the information and explanations given to us we report that no fraudby the Company or any fraud on the Company by its officers or employees has been noticedor reported during the year.
x. According to the information and explanations given to us we report that managerialremuneration has been paid in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Companies Act.
xi. According to the information and explanations given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards. xii. The Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.
xiii. Company has not entered into non-cash transactions with directors or personsconnected with him and hence provisions of section 192 of the Act are not applicable.
| ||FOR: GOPAL SHARMA &COMPANY |
| ||Chartered Accountants |
| ||FRN No. 002803C |
|Place: Jaipur ||(Abhishek Sharma Partner) |
|Date: 30.05.2019 ||M. no.:- 079224 |
Report on Internal Financial Controls over Financial Reporting
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 CONTINENTALPETROLEUM LIMITED (the Company) as of March 31 2019 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the Guidance Note) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 Company's internal financial controls systemover financial reporting.
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 that 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 on the achievement of the objectives of the control criteria theCompany has maintained in all material respects adequate internal financial controlsover financial reporting and such internal financial controls over financial reportingwere operating effectively as at March 312019 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note. We have considered thematerial weaknesses identified and reported above in determining the nature timing andextent of audit tests applied in our audit of the March 312019 financial statements ofthe Company and these material weaknesses does not affect our opinion on the financialstatements of the Company.
AUDITOR'S ADDITIONAL REPORT
Board of Directors
CONTINENTAL PETROLEUM LIMITED
The Management is responsible for the design and implementation of the internalprocedures systems processes and controls to ensure compliance with the Directions on anongoing basis. This responsibility also includes reporting non-compliances if any to theReserve Bank of India Board of the Company and its Audit Committee.
Our responsibility is to report on the matters specified in the Directions based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (ICAI).Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether there are any identified non-compliances. An audit involves performingprocedures to obtain audit evidence about the compliance with the Directions. Theprocedures selected depend on the Auditor's Judgment including the assessment of therisks of material misstatement of the information and records whether due to fraud orerror. In making those risk assessments the Auditor considers internal controls relevantto the Company's compliance with the Directions in order to design audit procedures thatare appropriate in the circumstances. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our certificate. We conducted ourexamination in accordance with the Guidance Note on Special Purpose Audit Reports andCertificates issued by the Institute of Chartered Accountants of India.
Based on our examination of the books and records of the Company as produced for ourexamination and the information and explanations given to us we further report that:
| ||FOR: GOPAL SHARMA &COMPANY |
| ||Chartered Accountants |
| ||FRN No. 002803C |
| ||Sd/- |
| ||Abhishek Sharma |
|Place: Jaipur ||(Partner) |
|Date: 30.05.2019 ||M. No.:- 079224 |