Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT TO THE MEMBERS OF PARABOLIC DRUGS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Parabolic Drugs Limited which comprises the Balance sheet as at 31st March 2016 and the Statement of Profit & Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these 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) Rule, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We 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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. 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. 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 order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, subject to Note 25(1) of the financial statements regarding confirmation of debit or credit balances on whatsoever account, the aforesaid financial statements read with note 25 forming part of 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:
a) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2016;
b) in the case of Statement of Profit & Loss , of the Loss for the year ended on that date and
c) in case of cash flow statement, of the cash flows for the year ended on that date.
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 of the Act, we enclose in the Annexure "A" a statement on the matters specified in paragraph 3 and 4 of the said order, to the extent applicable .
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 purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
c) The Balance Sheet and the Statement of Profit & Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the Directors, as on 31st March 2016 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2016 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to 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'': and
g) 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, in our opinion and to the best of our information and according to the explanations given to us :
i) The company has disclosed the impact of pending litigations on its financial position in the financial statements;
ii) The Company has made provision as required under the applicable law or accounting standards, for material foreseeable losses, if any, including derivatives contracts; and
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) (a) As confirmed by the management , the Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. However it is not up to date as on 31st March, 2016.
(b)We are informed that the company has framed programme of periodical physical verification of its fixed assets in phased manner, which in our opinion is reasonable having size of the company and nature of its business. As confirmed by the company, during the year ended 31st March 2016, physical verification of the fixed assets was carried out by the management during the year and no material discrepancy was noticed on such verification.
(c)According to the information & explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties as disclosed in Note-9 to theses financial statements, are held in the name of the company.
(ii) According to the information & explanations given to us, the inventories comprises of raw material, work in progress, material at shop floor , semi-finished goods and finished goods total valuing Rs 40.10 crores as on 31st March 2016 have been physically verified and certified by the management which have been relied upon. As confirmed by management, no material discrepancies were noticed on physical verification of the same.
(iii) Since the company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013, so paragraph iii (a),iii (b) & iii(c) is not applicable.
(iv) In our opinion and according to information and explanation given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and guarantees and securities provided by it.
(v) The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the Rules framed thereunder to the extent notified.
(vi)The company is required to maintain cost records as prescribed by Central Government under section 148(1) of the Companies Act 2013 and according to the information and explanations given to us the company has maintained proper records as prescribed by central government However we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii)(a)According to information and explanations given to us and the records of the company examined by us , in our opinion, the company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities . There are no statutory dues outstanding for a period exceeding six months from the date they become payable except as given below:
S. No. |
Nature of the Statute |
Nature of Dues |
Amount (Rs. In Lacs) |
Period to which amount relates |
1 |
Employee State Insurance Act,1948 |
ESI Payable-Derabassi |
8.37 |
Feb-2015 to Sep-2015 |
2 |
Employees Provident Funds & Miscellaneous Provisions Act,1952 |
PF Payable-Derabassi |
108.80 |
May-2014 to Sept-2015 |
3 |
Employee State Insurance Act,1948 |
ESI Payable-Panchkula |
1.42 |
Apr-15 to Sep-15 |
4 |
Employees Provident Funds & Miscellaneous Provisions Act,1952 |
PF Payable-Derabassi |
7.35 |
July-14 to Sep-15 |
5 |
Employee State Insurance Act,1948 |
ESI Payable-Contractor (Derabassi) |
2.50 |
Feb-14 to Sep-15 |
6 |
Labour Welfare Fund Act,1972 |
Staff Welfare Fund Payable |
0.49 |
Feb-15 to Sep-15 |
7 |
Income Tax Act,1961 |
TDS Payable |
26.16 |
Oct-14 to Sep-15 |
8 |
Central Sales Tax Act and Sales tax Act of Various States |
Vat Payable (Baddi) |
75.82 |
Jan-15 to Mar-15 |
9 |
Central Sales Tax Act and Sales tax Act of Various States |
CST Payable (Baddi) |
0.07 |
Jan-15 to Mar-15 |
10 |
Central Sales Tax Act and Sales tax Act of Various States |
Vat Payable (Panchkula) |
3.61 |
Sep-2015 |
(b) According to the information and explanations given to us, and the records of the company examined by us , in our opinion , there are no material dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax which have not been deposited with the appropriate authorities on account of any dispute except the following cases of Income tax ,Excise duty & Service Tax which are pending at various courts as there demand will be confirmed after order:-
S. No |
Nature of the Statute |
Nature of Dues |
Amount (Rs.) |
Period to which amount related |
Forum where dispute is pending |
1 |
Finance Act,1944 |
Service Tax |
28.50 Lacs |
FY 2011-12 |
Commissioner (Appeals) |
2 |
Finance Act,1944 |
Service Tax |
6.34 Lacs |
FY 2013-14 |
Deputy Commissioner Derabassi |
3 |
Central Excise act,1944 |
Excise Duty |
5859.97 Lacs |
FY 2012-13 |
Punjab & Haryana High Court |
4 |
Central Excise act,1944 |
Rebate Claim |
875.95 Lacs |
FY 2012-13 |
Commissioner Chandigarh |
5 |
Central Excise act,1944 |
Excise Duty |
10.00 Lacs |
FY 2008-09 |
CESTAT |
6 |
Central Excise act,1944 |
Rebate Claim |
15.61 Lacs |
FY 2011-12 |
Joint Secretary Ministry of Finance |
7 |
Income Tax Act 1961 |
Income Tax |
243.96 Lacs (Including penalty of Rs 70.15 Lacs) |
A.Y 2005-06 |
Income Tax Appellate Tribunal |
8 |
Income Tax Act 1961 |
Income Tax |
86.19 lacs |
A.Y. 2007-08 |
Income Tax Appellate Tribunal |
9 |
Income Tax Act 1961 |
Income Tax |
0.41 lacs |
A.Y. 2008-09 |
Income Tax Appellate Tribunal |
10 |
Income Tax Act 1961 |
Income Tax |
457.51 lacs |
A.Y. 2009-10 |
Income Tax Appellate Tribunal |
11 |
Income Tax Act 1961 |
Income Tax |
5.96 Lacs |
A.Y. 2010-11 |
Income Tax Appellate Tribunal |
12 |
Income Tax Act 1961 |
Income Tax |
1.13 Lacs |
A.Y. 2011-12 |
Income Tax Appellate Tribunal |
(viii) In our opinion and according to the information and explanations given to us and as confirmed by management, the company has defaulted in repayment of dues to a financial institutions & banks as all the credit facilities from most of banks/financial institutions of the company have already been classified as NPA .
During the F.Y.2012-13 the company has made application for restructuring of debts under CDR Mechanism which has been approved and stands implemented, the cutoff date being 30th September 2012 and the company stands exit from CDR Mechanism on 28th October 2015 vide letter CDR(PMJ) No. 442/2015-16 dated 31st October 2015.
(ix) Since no money has been raised by way of initial public offer or further public offer (including debt instruments) during the year, the requirement of paragraph 3(ix) is not applicable and further we report that the no fresh term loans has been raised by the company during the year under report.
(x) During the course of examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to information & explanation given to us, we have neither come across any instance of fraud by the company or on the Company by its officers or employees noticed or reported during the year nor have we been informed of any such case by the Management.
(xi) According to information and explanations given to us and based on our examination of records of the company , the company has paid/provided for the managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to information and explanations given to us, the company is not a Nidhi Company and Nidhi Rules, 2014 are not applicable to it. Accordingly, provisions of clause 3(xii) of the order are not applicable.
(xiii) The company has entered into transactions with the related parties in compliance with the provisions of sections 177 and 188 of the Act. The detail of suck related party transactions have been disclosed in the financial statements as required under Accounting Standard 18, Related Party Disclosures specified under section 133 of the Act, read with Rule 7 of the Company (Account) Rules, 2014.
(xiv) According to information and explanations given to us and based on our examination of 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.
(xv) According to information and explanations given to us and based on our examination of records of the company, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3(xv) of the order are not applicable.
(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of clause 3(xvi) of the order are not applicable to the company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of PARABOLIC DRUGS LIMITED Chandigarh (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 Indiaâ. 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 companyâs 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that 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 auditorâs judgement, 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 basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
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 accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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 March 31, 2016, based on âthe 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 Indiaâ].
Chandigarh; FOR S.K. BANSAL & CO.
Dated: 28th May 2016 CHARTERED ACCOUNTANTS
(S.K.Bansal)
Partner
Membership No: 013147
FRN No 002222N
Name: M/s. S.K. Bansal & Co.
Chartered Accountants
Address: Kothi No. 3193,
Sector 28 - D,
Chandigarh-160002
Mar 31, 2015
We have audited the accompanying financial statements of M/s. Parabolic
Drugs Limited which comprises the Balance sheet as at 31st March 2015
and the Statement of Profit & Loss, the Cash Flow Statement for the
year then ended and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these 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) Rule, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We 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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. 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. 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 order to design audit procedures that are
appropriate in the
Chandigarh
Dated: 18th May 2015
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to Note 25(1) of the financial
statement regarding confirmation of debit or credit balances on
whatsoever account, the aforesaid financial statements read with note
25 forming part of financial statement 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:
a) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2015;
b) in the case of Statement of Profit & Loss , of the Loss for the year
ended on that date and
c) in case of cash flow statement, of the cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 we enclose
in the Annexure "A" a statement on the matters specified in paragraph 3
and 4 of the said 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
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet and the Statement of Profit & Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the Directors,
as on 31st March 2015 and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March 2015 from being
appointed as a Director in terms of Section 164(2) of the Act.
Annexure-'A' referred to in the Independent Auditors' Report to the
Members of
M/s. Parabolic Drugs Limited, on the accounts for the year ended 31st
March 2015
(i) (a) As confirmed by the management , the Company is maintaining
proper records showing full particulars including quantitative details
and situation of fixed assets. However it is not upto date as on 31st
March 2015.
(b) We are informed that the company has framed programme of periodical
physical verification of its fixed assets in phased manner, which in
our opinion is reasonable having size of the company and nature of its
business. As confirmed by the company, during the year ended 31st March
2015, physical verification of the fixed assets was carried out by the
management during the year and no material discrepancy was noticed on
such verification.
(ii) (a) According to the information & explanations given to us, the
inventories comprises of raw material, work in progress, material at
shop floor , semi-finished goods and finished goods total valuing Rs
315.38 crores as on 31st March 2015 have been physically verified and
certified by the management which have been relied upon.
(b) The procedure of physical verification of inventory followed by the
management is, in our opinion reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) Quantitative records have been maintained for Raw Materials &
Finished Goods produced only. As confirmed by management, no material
discrepancies were noticed on physical verification ofthe same.
(iii) Since the Company has not granted anyloans secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013, so paragraph iii (a) & Mi
(b) is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the sizeofthe company and the nature of its business
with regard to purchases of inventory, fixed assets and with regard to
the sale of goods &services .During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls system.
(v) In our opinion and according to information and explanation given
to us, the Company has not accepted deposits as per Companies
(Acceptance of Deposits) Rule 2014 and as per provisions of Section 73
to 76 of the Companies Act, 2013
(vi) The company is required to maintain cost records as prescribed by
Central Government under section 148(1) of the Companies Act 2013 and
according to the information and explanations given to us the company
has maintained proper records as prescribed by central government
However we have not made a detailed examination of the cost records
with a view to determine whether they are accurate or complete.
(vii) (a) According to information and explanations given to us, the
Company is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education protection
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, value added tax, excise duty, cess and other
material statutory dues as applicable to it. There are no statutory dues
outstanding for a period exceeding six months from the date they become
payable.
(b) According to the information and explanations given to us, there
are no material dues of sales tax, value added tax, wealth tax, service
tax and cess which have not been deposited with the appropriate
authorities on account of any dispute. However according to information
and explanations given to us the following cases of Income tax ,Excise
duty & Service Tax are pending at various courts as there demand will
be confirmed after order:-
Rs. in Millions
S.No. Nature of the Nature of Amount Period to which
Statute Dues amount related
1 Service Tax Service Tax 2.85 FY 2011-12
2 Service Tax Service Tax 0.63 FY 2013-14
3 Central Excise Excise Duty 585.99 FY 2012-13
act
4 Central Excise Rebate Claim 87.59 FY 2012-13
act
5 Central Excise Excise Duty 1.00 FY 2008-09
Act
6 Central Excise Rebate Claim 1.56 FY 2011-12
Act
7 Income Tax Income Tax 24.39 A.Y 2005-06
1961 (Including
penalty of Rs
7.01)
8 Income Tax Income Tax 8.62 A.Y. 2007-08
1961
9 Income Tax Income Tax 0.04 A.Y. 2008-09
1961
10 Income Tax Income Tax 45.75 A.Y. 2009-10
1961
11 Income Tax Income Tax 0.59 A.Y. 2010-11
1961
12 Income Tax Income Tax 0.12 A.Y. 2011-12
1961
S.No. Nature of the Forum where
Statute dispute is pending
1 Service Tax Commissioner(Appeals)
2 Service Tax Deputy Commissioner
Derabassi
3 Central Excise Punjab & Haryana High
act Court
4 Central Excise Commissioner
act Chandigarh
5 Central Excise CESTAT
Act
6 Central Excise Joint Secretary Ministry
Act of Finance
7 Income Tax Income Tax Appellate
1961 Tribunal
8 Income Tax Income Tax Appellate
1961 Tribunal
9 Income Tax Income Tax Appellate
1961 Tribunal
10 Income Tax Income Tax Appellate
1961 Tribunal
11 Income Tax Income Tax Appellate
1961 Tribunal
12 Income Tax Income Tax Appellate
1961 Tribunal
(viii) The accumulated losses of the company have exceeded its net
worth. The company has incurred cash loss during the year covered by
our audit and also in the immediately preceding financial year. However
the accounting continues to be prepared on going concern basis.
(ix) In our opinion and according to the information and explanations
given to us and as confirmed by management, the company has defaulted
in repayment of dues to a financial institutions & banks as all the
credit facilities from most of banks/financial institutions of the
company have been classified as NPA during the year.
During the F.Y.2012-13 the company has made application for
restructuring of debts under CDR Mechanism which has been approved and
stands implemented, the cutoff date being 30th September 2012-As per
CDR Package, the installment for various Term Loans were to start from
October, 2014. However company has not been able to fulfill obligation
towards repayment of installment & Interest.
(x) The company has given corporate guarantee in respect loans taken by
M/s Ziven Life Sciences Limited (its subsidiary) from banks or
financial institutions.
(xi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company and as
confirmed by management , we report that the no fresh term loans has
been raised by the company during the year under report.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
Chandigarh; FOR S.K. BANSAL & CO.
Dated: 18th May 2015 CHARTERED ACCOUNTANTS
(S.K. Bansal)
Partner
Membership No: 013147
FRN NO.002222N
Name: M/s. S.K. Bansal&Co.
Chartered Accountants
Address: Kothi No. 3193, Sector 28 - D,
Chandigarh-160002
Mar 31, 2014
We have audited the accompanying financial statements of M/s. Parabolic
Drugs Limited which comprises the Balance sheet as at 31st March 2014
and the Statement of Profit & Loss and the Cash Flow Statement for the
year ended on that date and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that gives a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. 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. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to Note 25(a) of the financial
statement regarding confirmation of debit or credit balances on
whatsoever account, the financial statements read with note 25 forming
part of financial statement give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of Balance Sheet, of the state of affairs on the
Company as at 31st March 2014;
(b) in the case of Statement of Profit & Loss , of the Loss for the
year ended on that date. and
(c) In case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. As required by section 227(3) of the Act, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956.
(v) On the basis of written representations received from the
Directors, as on 31st March 2014 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2014 from being appointed as a Director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956.
(vi) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
Annexure to the Auditors'' Report
Annexure referred to in Paragraph-1 of the Auditors'' Report to the
Members of M/s. Parabolic Drugs Limited on the accounts for the year
ended 31st March 2014.
(i) (a) As confirmed by the management , the Company is maintaining
proper records showing full particulars including quantitative details
and situation of fixed assets.
(b) We are informed that the company has framed programme of periodical
physical verification of its fixed assets in phased manner, which in
our opinion is reasonable having commensurate with the size of the
company and nature of its business. In terms of such programme, during
the year ended 31st March 2014, physical verification of the fixed
assets was carried out by the management during the year and no
material discrepancy was noticed on such verification.
(c) As confirmed by the management, the substantial part of Fixed
Assets has not been disposed off during the year.
(ii) (a) According to the information & explanations given to us, the
inventories comprises of raw material, work in progress, material at
shop floor and finished goods total valuing Rs. 367.59 crores as on
31st March 2014 have been physically verified by the management.
(b) The procedure of physical verification of inventory followed by the
management is, in our opinion reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) Quantitative records have been maintained for Raw Materials &
Finished Goods produced. As confirmed by management, no material
discrepancies were noticed on physical verification.
(iii) (a) The Company has not taken from/granted any (secured or
unsecured) loans from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(b) As Company has not taken from/granted loans apart from transactions
on current account para iii (b), iii (c), iii (d) of the order is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the act have been entered into the register required to be maintained
under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered into the register in pursuance of section 301 of
the Act and exceeding the value of Rupees Five Lacs in respect of any
party during the year, have been made at prices, which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted deposits from the public as per
Companies (Acceptance of Deposits) Rule of 1975 and as per provisions
of Section 58A, 58AA or any other relevant provisions of the Companies
Act, 1956.
(vii) In our opinion the Company has an Internal Audit System
commensurate with its size and nature of its business.
(viii) As confirmed by the management, the Company is maintaining cost
records as prescribed by Central Government under section 209(1)(d) of
the Companies Act 1956.
(ix) (a) According to information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues as applicable to it. .
(b) According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, service
tax excise duty and cess, which have not been deposited on account of
any dispute except as referred to in Para No. (o) of Additional note 25
to financial statement as on 31st March 2014.
(x) There are accumulated losses of the Company at the end of the year.
The company has incurred cash loss during the year covered by our audit
and also in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us and as confirmed by management, the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders as the company has made application to CDR Cell which
has been approved and stands implemented w.e.f. 30th September, 2012.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a Nidhi Mutual
Benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xv) The company has given corporate guarantee in respect of loans
taken by M/s Ziven LifeSciences Limited from banks or financial
institutions.
(xvi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company and as
confirmed by management, we report that the term loans were applied for
the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company and further
confirmed by the management, we report that the no funds raised on
short-term basis have been used for long-term investment. No long- term
funds have been used to finance short-term assets.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) No debentures have been issued during the year by the company.
(xx) During the year no money has been raised by public issue. Hence,
the requirement of paragraph 4(xx) is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
FOR S.K.BANSAL & CO.
Chartered Accountants
(S.K. Bansal)
Partner
Place : Chandigarh Membership No: 013147
Dated : 30.05.2014 FRN 002222N
Name: M/s. S.K. Bansal & Co.
Chartered Accountants
Address: Kothi No. 3193, Sector 28 - D,
Chandigarh-160002
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fi nancial statements of M/s.
Parabolic Drugs Limited which comprises the Balance sheet as at 31st
March 2013 and the Statement of Profi t & Loss and the Cash Flow
Statement for the year ended on that date and a summary of signifi cant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fi nancial
statements that gives a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the fi nancial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these fi nancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fi nancial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the fi
nancial statements. The procedures selected depend on the
auditor''s judgment, including the assessment of the risks of
material misstatement of the fi nancial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the Company''s preparation and fair
presentation of the fi nancial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the fi nancial
statements. We believe that the audit evidence we have obtained is
suffi cient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to Note 26(b) of the fi nancial
statement regarding confi rmation of debit or credit balances on
whatsoever account, the fi nancial statements read with note 26 forming
part of fi nancial statement give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of Balance Sheet, of the state of affairs on the
Company as at 31st March 2013;
(b) in the case of Statement of Profi t & Loss , of the Loss for the
year ended on that date. and
(c) In case of Cash Flow Statement, of the cash fl ows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the said
Order.
2. As required by section 227(3) of the Act, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet, Statement of Profi t & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Statement of Profi t & Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956.
(v) On the basis of written representations received from the
Directors, as on 31st March 2013 and taken on record by the Board of
Directors, we report that none of the Directors is disqualifi ed as on
31st March 2013 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) Since the Central Government has not issued any notifi cation as
to the rate at which the cess is to be paid under section 441A of the
Companies Act,1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
Annexure referred to in Paragraph-1 of the Auditors'' Report to
the Members of M/s. Parabolic Drugs Limited on the accounts for the
year ended 31st March 2013.
(i) (a) As confi rmed by the management the Company is maintaining
proper records showing full particulars including quantitative details
and situation of fi xed assets.
(b) We are informed that the company has framed programme of periodical
physical verifi cation of its fi xed assets in phased manner, which in
our opinion is reasonable having size of the company and nature of its
business. In terms of such programme, during the year ended 31st March
2013, physical verifi cation of the fi xed assets was carried out by
the management during the year and no material discrepancy was noticed
on such verifi cation.
(c ) As confi rmed by the management ,the substantial part of Fixed
Assets have not been disposed off during the year.
(ii) (a) According to the information & explanations given to us the
inventories comprises of raw material, work in progress, material at
shop fl oor and fi nished goods as on 31St March 2013 have been
physically verifi ed by the management.
(b) The procedure of physical verifi cation of inventory followed by
the management is, in our opinion reasonable and adequate in relation
to the size of the company and the nature of its business.
(c) Quantitative records have been maintained for Raw Materials &
Finished Goods produced. As confi rmed by management no material
discrepancies were noticed on physical verifi cation.
(iii) (a) The Company has not taken from/granted any (secured or
unsecured) loans from companies, fi rms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(b) As Company has not taken from/granted loans apart from transactions
on current account para iii(b), iii(c), iii(d) of the order is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fi xed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the act have been entered into the register required to be maintained
under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered into the register in pursuance of section 301 of
the Act and exceeding the value of Rupees Five Lacs in respect of any
party during the year, have been made at prices, which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted deposits from the public as per
Companies (Acceptance of Deposits) Rule of 1975 and as per provisions
of Section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion the Company has an Internal Audit
System commensurate with its size and nature of its business.
(viii) As confi rmed by the management, the Company is maintaining cost
records as prescribed by Central Government under section 209(1)(d) of
the Companies Act 1956.
(ix) (a) According to information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees'' state insurance, income tax, sales
tax, wealth tax, custom duty, excise duty, cess and other material
statutory dues as applicable to it.
(b) According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, excise
duty and cess, which have not been deposited on account of any dispute
except as referred to in Para No. (m) Of additional note 26 to fi
nancial statement as on 31st March 2013.
(x) There are no accumulated losses of the Company at the end of the
year. The company has incurred cash loss during the year covered by our
audit.
(xi) In our opinion and according to the information and explanations
given to us and as confi rmed by management, the company has not
defaulted in repayment of dues to a fi nancial institution, bank or
debenture holders as the company has made application to CDR Cell which
has been approved and stands implemented w.e.f. 30th Sept 2012.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefi t fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable
to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
(xv) According to information and explanations given to us, the Company
has not given corporate guarantee for loans taken from banks or fi
nancial institutions.
(xvi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company and as confi
rmed by management , we report that the term loans were applied for the
purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company and further
confi rmed by the management , we report that the no funds raised on
short-term basis have been used for long-term investment. No long- term
funds have been used to fi nance short-term assets.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) No debentures have been issued during the year by the company.
(xx) During the year no money has been raised by public issue hence the
requirement of paragraph 4(xx) is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
FOR S.K.BANSAL & CO.,
Chartered Accountants
(S.K. Bansal)
Partner
Place : Chandigarh Membership No: 013147
Dated : 30.05.2013 FRN 002222N
Name: M/s. S.K. Bansal & Co.
Chartered Accountants
Address: Kothi No. 3193, Sector 28 " D,
Chandigarh-160002
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. Parabolic Drugs
Limited, Chandigarh as at 31st March 2012 and also the Statement of
Profit & Loss and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet , Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 to the extent applicable,
(v) On the basis of written representations received from the
Directors, as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) Subject to Note 26(b) of financial statements regarding
confirmation of Debit or Credit Balances.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with note 26 forming
part of financial statement give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of Balance Sheet, of the state of affairs on the
Company as at 31st March 2012;
(b) in the case of Statement of Profit & Loss , of the Profit for the
year ended on that date.
(c) in case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in Paragraph-2 of the Auditors' Report to the
Shareholders of M/s. Parabolic Drugs Limited, Chandigarh on the
accounts for the year ended 31st March 2012.
(i) (a) As confirmed by the management the Company is maintaining
proper records showing full particulars including quantitative details
and situation of fixed assets.
(b) We are informed that the company has framed programme of periodical
physical verification of its fixed assets in phased manner, which in
our opinion is reasonable having size of the company and nature of its
business. In terms of such programme, during the year ended 31st March
2012, physical verification of the fixed assets was carried out by the
management during the year and no material discrepancy was noticed on
such verification.
(c ) As confirmed by the management ,the substantial part of Fixed
Assets have not been disposed off during the year.
(ii) (a) According to the information & explanations given to us the
inventories comprises of raw material, work in progress, material at
shop floor and finished goods as on 31St March 2012 have been
physically verified by the management.
(b) The procedure of physical verification of inventory followed by the
management is, in our opinion reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) Quantitative records have been maintained for Raw Materials &
Finished Goods produced. As confirmed by management no material
discrepancies were noticed on physical verification.
(iii) (a) The Company has not taken from/granted any (secured or
unsecured) loans from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(b) As Company has not taken from/granted loans apart from transactions
on current account para iii(b), iii(c), iii(d) of the order is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the act have been entered into the register required to be maintained
under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered into the register in pursuance of section 301 of
the Act and exceeding the value of Rupees Five Lacs in respect of any
party during the year, have been made at prices, which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted deposits from the public as per
Companies (Acceptance of Deposits) Rule of 1975 and as per provisions
of Section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion the Company has an Internal Audit System
commensurate with its size and nature of its business.
(viii) As confirmed by the management, the Company is maintaining cost
records as prescribed by Central Government under section 209(1)(d) of
the Companies Act 1956.
(ix) (a) According to information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and other material statutory
dues as applicable to it. .
(b) According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, excise
duty and cess, which have not been deposited on account of any disputed
except as referred to in Para No. (x) and (y) of additional note 26 to
financial statement as on 31st March 2012.
(x) There are no accumulated losses of the Company at the end of the
year. The company has not incurred cash losses during the year covered
by our audit and the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us and as confirmed by management, the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) According to information and explanations given to us the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
(xvi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company and as
confirmed by management , we report that the term loans were applied
for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment. No long- term funds have been used to finance
short-term assets.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) No debentures have been issued during the year by the company.
(xx) During the year no money has been raised by public issue hence the
requirement of paragraph 4(xx) is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
FOR S.K. BANSAL & CO.,
Chartered Accountants
(S.K. Bansal)
Partner
Place : Chandigarh Membership No: 13147
Dated : 14 August, 2012 FRN 002222N
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. Parabolic Drugs
Limited, Chandigarh as at 31st March 2011 and also the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable
basisforouropinion.
2. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet , Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable,
(v) On the basis of written representations received from the
Directors, as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) Subject to Note 1 of Schedule-17 regarding confirmation of Debit
or Credit Balances.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with notes forming
part of accounts in Schedule-17 give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of Balance Sheet, of the state of affairs on the
Company as at 31 st March 2011;
(b) in the case of Profit & Loss Account, of the Profit for the year
ended on that date.
(c) In case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors' Report
Annexure referred to in Paragraph-2 of the Auditors' Report to the
Shareholders of M/s. Parabolic Drugs Limited, Chandigarh on the
accounts for the year ended 31st March 2011.
(i) (a) As confirmed by the management the Company is maintaining
proper records showing full particulars including quantitative details
and situation of fixed assets.
(b) We are informed that the company has framed programme of periodical
physical verification of its fixed assets in phased manner, which in
our opinion is reasonable having size of the company and nature of its
business. In terms of such programme, during the year ended 31st March
2011, physical verification of the fixed assets was carried out by the
management during the year and no material discrepancy was noticed on
such verification.
(c) As confirmed by the management ,the substantial part of Fixed
Assets have not been disposed off during the year.
(ii) (a) According to the information & explanations given to us the
inventories have been physically verified during the year and at the
end of the year by the management. In our opinion frequency of such
verification is reasonable.
(b) The procedure of physical verification of inventory followed by the
management is, in our opinion reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) Quantitative records have been maintained for Raw Materials &
Finished Goods produced. As confirmed by management no material
discrepancies were noticed on physical verification.
(iii) (a) The Company has not taken from/granted any (secured or
unsecured) loans from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(b) As Company has not taken from/granted loans apart from transactions
on current account para iii(b), iii(c), iii(d) of the order is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the act have been entered into the register required to be maintained
under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered into the register in pursuance of section 301 of
the Act and exceeding the value of Rupees Five Lacs in respect of any
party during the year, have been made at prices, which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted deposits from the public as per
Companies (Acceptance of Deposits) Rule of 1975 and as per provisions
of Section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion the Company has an Internal Audit System
commensurate with its size and nature of its business.
(viii) The Company is maintaining cost records as prescribed by Central
Government under section 209(1 )(d) of the CompaniesAct1956.
(ix) (a) According to information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and other material statutory
dues applicable to it.
(b) According to the information and explanations given to us, there is
sum of Rs. 0.59 Million outstanding on account of excise duty, out of
which a sum of Rs. 0.34 Million has been deposited and a balance of Rs.
0.25 Million has not been deposited on account of dispute for which
appeal is pending.
(x) There are no accumulated losses of the Company at the end of the
year. The company has not incurred cash losses during the year covered
by our audit and the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us and as confirmed by management, the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures andothersecurities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) According to information and explanations given to us the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
(xvi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company and as
confirmed by management , we report that the term loans were applied
for the purpose for which the loans were obtained.
(xvii)According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment. No long- term funds have been used to finance
short-term assets.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) No debentures have been issued during the year by the company.
(xx) The company has raised funds by public issue and disclosure in
this respect is made under para 28 of Schedule 17 of the Financial
Statements and the same is verified.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
FOR S.K. BANSAL & CO.,
Chartered Accountants
(S.K. Bansal)
Partner
Place : Chandigarh Membership No: 13147
Dated : 13 August, 2011 FRN 002222N
Name : M/s. S.K. Bansal & Co.
Chartered Accountants
Address: Kothi No. 3193, Sector 28 - D,
Chandigarh-160002
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Parabolic Drugs
Limited, Chandigarh as at March 31, 2010 and also the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet , Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
Annexure to the Auditors Report
Annexure referred to in Paragraph-2 of the Auditors Report to the
Shareholders of M/s. Parabolic Drugs Limited, Chandigarh on the
accounts for the year ended March 31, 2010.
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) We are informed that the Company has framed programme of periodical
physical verification of its fixed assets in phased manner, which in
our opinion is reasonable having regard to the size of the Company and
nature of its business. In terms of such programme, during the year
ended March 31, 2010, physical verification of the fixed assets was
carried out by the management during the year and no material
discrepancy was noticed on such verification.
c) As confirmed by the management ,the substantial part of Fixed Assets
have not been disposed off during the year.
ii) a) According to the information & explanations given to us the
inventories have been physically verified during the year and at the
end of the year by the management. In our opinion frequency of such
verification is reasonable.
b) The procedure of physical verification of inventory followed by the
management is, in our opinion reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) Quantitative records have been maintained for Raw Materials &
Finished Goods produced. As confirmed by management no material
discrepancies were noticed on physical verification.
iii) a) The Company has not taken from/granted any (secured or
unsecured) loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
b) As Company has not taken from/granted loans apart from transactions
on current account para iii(b), iii(c), iii(d) of the order is not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
v) a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered into the register required to be maintained
under that Section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered into the register in pursuance of Section 301 of
the Act and exceeding the value of Rs. 5 Lacs in respect of any party
during the year, have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion and according to information and explanation given
to us, the Company has not accepted deposits from the public as per
Companies (Acceptance of Deposits) Rule of 1975 and as per provisions
of Section 58A and 58AA of the Companies Act, 1956.
vii) In our opinion the Company has an Internal Audit System
commensurate with its size and nature of its business.
viii) The Company is maintaining cost records as prescribed by Central
Government under Section 209(1)(d) of the Companies Act 1956.
ix) a) According to information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees state insurance, income tax, sales tax,
wealth tax, Custom duty, Excise duty, cess and other material statutory
dues applicable to it.
b) According to the information and explanations given to us, there is
sum of Rs. 5.93 lacs outstanding for Excise duty, which have not been
deposited on account of dispute for which appeal is pending.
x) There are no accumulated losses of the Company at the end of the
year. The Company has not incurred cash losses during the year covered
by our audit and the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us and as confirmed by management, the Company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
xv) According to information and explanations given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company and as
confirmed by management, we report that the term loans were applied for
the purpose for which the loans were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the no funds raised on short- term basis have been used for
long-term investment. No long-term funds have been used to finance
short-term assets.
xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act.
xix) No debentures have been issued during the year by the Company.
xx) No money has been raised by public issue during the year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For S.K.Bansal &Co.,
Chartered Accountants
S.K.Bansal
Partner
Membership No:013147
FRN 002222N
Place:Chandigarh
Dated:June 29,2010
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