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Continental Securities Ltd.

BSE: 538868 Sector: Financials
NSE: N.A. ISIN Code: INE183Q01012
BSE 00:00 | 09 Dec 46.00 -1.80
(-3.77%)
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NSE 05:30 | 01 Jan Continental Securities Ltd
OPEN 49.80
PREVIOUS CLOSE 47.80
VOLUME 23911
52-Week high 51.00
52-Week low 19.30
P/E 31.72
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 49.80
CLOSE 47.80
VOLUME 23911
52-Week high 51.00
52-Week low 19.30
P/E 31.72
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Continental Securities Ltd. (CONTSECURITIES) - Auditors Report

Company auditors report

To

The Members of

CONTINENTAL SECURITIES LIMITED Opinion

We have audited the financial statements of Continental Securities Limited whichcomprise the Balance Sheet as at 31st March 2022 and the Statement of Profit and Lossincluding Other Comprehensive Income Statement of Changes in Equity and Statement of CashFlows for the year then ended and notes to the financial statements including a summaryof significant accounting policies and other explanatory information (here in afterreferred 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 statement give the information required by theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2022 of its profit and other comprehensiveincome changes in equity and 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 Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the ethicalrequirements that are relevant to our audit of the financial statements in terms of theCode of Ethics issued by the Institute of Chartered Accountants of India and the relevantprovisions of the Act and we have fulfilled our other ethical responsibilities inaccordance with these requirements. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information Comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the financial statementsand our auditor's report there on. Our opinion on the financial statements does not coverthe other information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained during the course ofour audit or otherwise appears to be materially misstated. We have been provided theaforesaid reports and based on the work we have performed we did not observe any materialmisstatement of this other information and accordingly we have nothing to report in thisregard.

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial position andfinancial performance including other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the accounting standards (Ind-AS) specified under section 133 of the Actread with relevant rules issued thereunder.This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's 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 is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Statement as awhole is free from material misstatement whether due to fraud or error and to issue anauditor's report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted In accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthe Statement.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit We also;

1. Identify and assess the risks of material misstatement of the Financial Resultswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3){If theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by the Management and the Board of Directors.

4. Conclude on the appropriateness of the Management and the Board of Directors use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. if we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial results or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report.

5. However future events or conditions may cause the Company to cease to continue as agoing concern.

6. Evaluate the overall presentation structure and content of the Financial Resultsincluding the disclosures and whether the Financial Results represent the underlyingtransactions and events in a manner that achieves fair presentation.

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.

Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that:

1. 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.

2. 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.

3. 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.

4. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014.

5. On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.

6. 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

"Annexure B"

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

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 contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Annexure "A"

The Annexure referred to in paragraph 1 of Our Report on "Other Legal andRegulatory Requirements".

We report that:

1. In respect of Company's Fixed Assets :

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.

2. In respect of loans secured or unsecured granted by the company to companies Firmsor 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.

3. In respect of loans investments guarantees and security provisions of section185and 186 of the Companies Act 2013 have been complied with and the investment in shareshas been taken at cost their valuation can vary from time to time depending on stockmarket.

4. The company has not accepted any deposits from the public covered under sections 73to 76 of the Companies Act 2013.

5. As per information & explanation given by the management maintenance of costRecords has not been specified by the Central Government under sub-section (1) of Section148 of the Companies Act 2013.

6. According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees State Insurance Income-tax Goods and Services Tax and any other statutory dues to the extent applicable havegenerally been regularly deposited with the appropriate authorities. According to theinformation and explanations given to us there were no outstanding statutory dues as on31st of March 2022 for a period of more than six months from the date they becamepayable.

According to the information and explanations given to us there is no amount payablein respect of income Tax Goods and Services Tax whichever applicable which have notbeen deposited on account of any disputes.

7. 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.

Annexure "A"

8. Based on our audit procedures and according to the information given by theManagement the company has raised money by way of preferential issue of shares (Equityshares) during the year.

9. 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.

10. Remuneration has been paid in accordance with the requisite approvals mandated bythe provisions of section 197 read with Schedule V to the Companies Act.

11. The company is not a Nidhi Company. Therefore clause xii) of the order is notApplicable to the company.

12. According to the information and explanations given to usall transactions with theRelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.

13. 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.

14. The company is required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934 and the registration has been obtained.

Annexure"B"

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 CONTINENTALSECURITIES LIMITED ("the Company") as of March 312022 in conjunction with ouraudit 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.

Auditors' Responsibility

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 judgement 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 ReportingA company's internal financial control over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting.

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.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Inherent limitations of internal financial controls over financial reporting includingthe possibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

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 312022 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 31 2022 financial statements ofthe Company and these material weaknesses does not affect our opinion on the financialstatements of the Company.

AUDITOR'S ADDITIONAL REPORT

To

Board of Directors

Continental Securities Limited Jaipur

REPORT ON COMPLIANCE WITH THE NON-BANKING FINANCIAL COMPANIES AUDITOR'S REPORT (RESERVEBANK) DIRECTIONS 2008.

Pursuant to the Non-Banking Financial Companies Auditor's Report (Reserve Bank)Directions 2008 (the "Directions"). We have examined the matters specified inthe Directions in respect of Continental Securities Limited (the "Company") forthe year ended March 312022.

MANAGEMENT'S RESPONSIBILITY

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.

AUDITOR'S RESPONSIBILITY

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 relevant tothe Company's compliance with the Directions in order to design audit procedures that areappropriate in the circumstances. We believe that the audit evidence we have obtained issufficient 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.

CONCLUSION

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:

1. The Company is engaged in the Business of non-banking financial institution and hasobtained a Certificate Of Registration (COR) No. 10.00022 dated march 31998 from theReserve Bank Of India ("the Bank") Department of Non-Banking Supervision JaipurRegional Office.

2. The Company is entitled to continue to hold such COR in terms of its asset/incomepattern as on 31st March 2022.

3. The Company during the year is not an Asset Finance Company (AFC) as defined in Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions 1998.

4. The Company during the year is not a Non-Banking Financial Company - Micro FinanceInstitutions (NBFC- MFI) as defined in Non-Banking Financial Company Micro FinanceInstitutions (Reserve Bank) Direction 2011 dated December 02 2011 (MFI Directions).

5. The Board of Directors has passed a resolution for non-acceptance of publicdeposits.

6. The Company has not accepted any public deposits during the year ended 31st March2022.

7. The Company has complied with the prudential norms relating to income recognition accounting standards asset classification and provisioning for bad and doubtful debts asapplicable to it in terms of Systematically Important Non-Banking Financial(Non-DepositAccepting or Holding) Companies Prudential Norms(Reserve Bank) Directions 2015.

8. The annual statement of Capital funds risk assets/exposures and risk asset ratioDNBS 02 and DNBS 10 has been furnished to Reserve Bank of india within the stipulatedperiod based on the Audited books of account. The Company had correctly arrived at anddisclosed the capital adequacy ratio based on the Audited books of account in the returnsubmitted to the Reserve Bank of india in Form and such ratio is in compliance with theminimum CRAR prescribed by the Bank.

RESTRICTION ON USE

This report is issued pursuant to our obligations under Non-Banking Financial CompaniesAuditor’s Report (Reserve Bank) Directions 2008 to Reserve Bank of India and shouldnot be used by any other person or for any other purpose. Gopal Sharma & Co. neitheraccepts nor assumes any duty or liability for any other purpose or to any other party towhom our report is shown or into whose hands it may come without our prior consent inwritten.

ANNEXURE TO THE AUDITOR'S REPORT

[Referred to in our report of even date to the Member of Continental Securities Ltd]:

1. (A).The Company is in the process of compiling fixed assets records to show fullparticulars including quantitative details and situation of fixed assets.

(B) We were informed that all major items of fixed assets were physically verified bythe management at the end of the year and that no discrepancy was notified on suchverification which on account of proper records being still under compilation could notbe verified.

2. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly the clause 3(iii) (a) and 3 (iii)(b) of the Order are not applicable tothe Company.

3. In our opinion and according to information and explanation given to us; there isadequate internal control system commensurate with the size of the Company and the natureof its business fixed assets and with regard to loans given. Further on the basis of ourexamination of books and records of the Company and according to the information andexplanations given to us we have not observed any continuing failure to correct majorweaknesses in the aforesaid internal control system.

4. According to information and explanation given to us the central government has Notprescribed maintenance of cost records under section (1) one of section 148 of thecompany's act 2013.

(a) According to the information and explanation given to us the company has nodisputed outstanding statutory dues as at 31st march 2022.

(b) According to the information and explanation given to us the amounts which werereacquired to be transferred to the investor Education and Protection fund and accordancewith the relevant provision of the company's Act 2013 and rules there under has beentransferred to such funds within time.

5. The company does not have any accumulated losses at the end of the financial yearand has not incurred cash losses during the financial year end in the immediatelypreceding financial year.

6. According to the information and explanation given to us the Company has notdefaulted in the repayments of dues to financial institution bank or debenture holderduring the year.

7. According to the information and explanation given to us the Company has not givenany guarantee for loans taken by others from bank or financial intuitions during the year.

8. According to the information and explanation given to us the Company has appliedterm loans for the purpose for which the loans were obtained.

9. According to the information and explanation given to us no fraud on or by thecompany has been noticed or reported during the year review.

 

For Gopal Sharma & Co.

Chartered Accountants
FRN NO. 002803C

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