| We have audited the accompanying financial statements ot CONTINENTAL
CHEMICALS LIMITED which comprise the Balance Sheet as at March 31.
2015. the Profit and Loss Statement and the Cash Flow Statement for the
year then ended and a summary of significant accounting policies and
other explanatory information.
Management Responsibility for the Financial Statements
The Company's Board of Directors is responsible lor the matters slated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company In accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act. read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assols of the Company and
for preventing and de tectlng frauds and other irregularities;
selection and application of ap proprlate accounting poll cios: making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively tor ensuring the accuracy and
completeness ot the accounting records, relevant to the preparation and
prosontatlon ot tho financial statements that give a true and fair view
and are tree from material misstatement, whether duo to fraud or error.
Auditor's Responsibility
Our responsibility is to express on opinion on those standalone
financial statements based on our audit
Wo have token Into account the provisions of the Act, the accounting
and auditing standards and matters which am required to be included In
the audit report under tho provisions ot the Act and tho Rules made
thereunder.
Wc conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misslalcmont
An audit Involves performing procedures to obtain audit evidence about
lire amounts and the disclosures in Ihu financial statements. The
procedures selected depend on trie auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in ordor to design audit procedures that arc
appropriate in the circumstances. An audit also includes evaluating tho
appropriateness of the accounting pollclos used and the reasonableness
ot tho accounting estimates made by tho Company's Directors, as well as
evaluating the overall presentation of tho financial Statements.
Wo believe that tho audit evidence wo have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In oui opinion and lo the best ol our information and according to the
explanations given to us. the financial statements give the Information
required by the Act In the manner so required and glvo a true and fair
view in conformity with tho accounting principles generally accepted in
India1
a. in the case of the Balance Shoot, ot tho state of affairs of the
Company as at March 31, 2015;
b. in tho case of the Profit and Loss Statomnnt of the Profit for the
year ondod on that date: end
c In the cose of Hie Cash Flow Statemont. of Hie cosh Mows for Iho year
ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by Iho Companies (Auditor's Report) Older, 2015 ("the
Order") Issued by tho Central Government In terms of section 143(11) of
tho Companies Ad, 2013 wo gtvo In tho Annoxuro a statement on tho
matters aped lied in paragraphs 3 and 4 of the Order.
2 As required by section 143(3) ot the Act. we report that.
a. Wo havo obtained all the Information and explanations which to the
best ot our knowledge and belief were necessary for tho purpose ot our
b. In our opinion proper books ot account ns required by law have been
kepi by Ihe Company so far as .appears from our examination ot those
books
c. Tho Balance Sheet. Profit and Loss Statement and Cash Flow
Statement dealt wilh by this Report uro In agreement with the books of
account
d. In our op uilon, the aforesaid standalone financial statements
comply with the Accounting Standards referred to In section 133 of the
Companies Act, 2013, read with Rule 7 of the Companies (Accounts)
Rules, 2014 ;
o. On tho basis of written represontations received from Iho directors
as on March 31. 2015, and takon on record by Ihe Boairi of Dlroctors.
nono of Iho directors is disqualified as on March 31, 2015, from being
appointed as a director In terms of section 164(2) of the Act.
f. With respect to the other matters to be Included in the Auditor's
Report In accordance with Rule 11 of the Companies (Audi! and Auditors)
Rules, 2014, In our opinion and to tho best of our information and
according to the explanations given to us:
I. The Company doos not have any pending litigations which would
impact its Financial Positions.
ii The Company did not 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 bo transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE 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.
2. Since the company does not have any inventory information required
under Para 3(ii) (a) to (c) Is not being given.
3. According to information made available to us . the company has not
granted any loan . secured or unsecured to companies . firm or other
parties covered in the register maintained under section 189 of the Act
.accordingly Para 3(iii)(a) & (b) of the Order are not applicable to
the company.
4. In our opinion and according to the information and explanation given
to us. there are adequate internal procedures commensurate with the size
of the company and nature of its business, for purchase of inventory and
fixed assets and for the sale of goods, and Services. Further, on the
basis of our examination and according to the informalion and
explanalions given to us, we have not observed any continuing failure to
correct major weaknesses in internal controls procedures.
5. On the basis of information and explanation given to us and our
scrutiny of company's records, in our opinion. Ihe company has not
accepted any public deposits.
6. Tu Ihe 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 ot 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 Income-tax, Wealth-tax.
Salcs-tax. Service lax Custom Duty. Excise Duty and any other statutory
dues applicable to it, except few coses of dotoy in depositing provident
fund. No amount was due to be deposited under Investor education and
Protection Fund Further, there was no arrears of undisputed statutory
dues outstanding as at 31* March. 2015 for 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 of Income Tax. Service Tax. and Cess which have not
been deposited on account of any dispute.
8. The company does not have accumulated losses. The Company has not
Incurred cash losses during the financial year and in the immediately
preceding financial year
9. Based on our examination and according to the Information and
explanation given to us, the company has not defaulted in repayment of
dues to banks. There are no dues to financial institution or debenture
holders.
10. According to the records of the company and the Information and
explanations given to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions.
11. Incur opinion and on the basis ot information and explanations
given to us and on overall basis, term loans availed by the Company
were, applied by the Company for the purposes for which Urn loans were
raised.
12. To the best ot 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 March, 2015.
For B K KAPUR AND CO
Chartered Accountants,
Firm Registration No000852C.
Sd/-
PLACE: Ghazlabad (M.S.KAPUR) F. C A.
DATE: 30.04.2015 Partner
Membership No. 074615
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