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Auditor Report of Parnax Lab Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of PARNAX LAB LIMITED ("the company"], which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and 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 Standalone 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 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting the 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 control, 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 standalone 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 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 true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operative effectiveness of such control. 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its loss and its 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, 2015 ("the Order"] issued by the Central Government of India in terms of sub-section (11] of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the 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 it appears from our examination of those books.

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

d) In our opinion, the aforesaid standalone 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, 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.

f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of 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 does not have any pending litigations which would impact its financial position;

ii) The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses; and

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

Annexure to the Independent Auditor's Report

Referred to as Annexure in our Independent Auditors' Report of even date to the members of PARNAX LAB LIMITED on the standalone financial statement for the year ended 31st March 2015, we report that :

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the year under a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(ii) (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) (a) The Company has not granted any unsecured loan to any body corporate or any other party covered in the register maintained under section 189 of the Companies Act, 2013 ('the Act'). As the company has not granted any loans, secured or unsecured, to/from parties covered in the register maintained under section 189 of the Companies Act, 2013 paragraphs (iii) (b) and (c) of the order, are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of fixed assets and for the sale of goods. Owing to the nature of its business, the Company is involved in purchase of inventories and sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) In our opinion and according to the information given to us, the company has not accepted deposits and hence, compliance with the directives issued by Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under with regard to the deposits accepted is not applicable.

(vi) In our opinion the maintenance of cost records as prescribed under rules made by Central Government u/s 148 (1) of the Act is not applicable to the company.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company is generally regular in depositing with appropriate authorities applicable undisputed statutory dues including provident fund, employee state insurance, income tax, sales tax, wealth tax, service tax, duty of custom, duty of excise, value added tax, cess

According to the information and explanation given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of custom, duty of excise, value added tax or cess were in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable except Professional Tax of Rs. 1,80530/- and VAT of Rs. 13,07,545/-.

(b) According to the information and explanation given to us, details of disputed sales tax / income tax / custom tax/ wealth tax / excise duty /cess which have not been deposited as on 31st March, 2015 on account of any dispute are given below.

Name of Statute Nature of the Amount dues (in Lacs)

Central Excise Act, 1944 Excise Duty & 5.50 Penalty

Central Excise Act, 1944 Interest 0.26

Central Excise Act, 1944 Excise Duty & 0.43 Penalty

Central Excise Act, 1944 Excise Duty & 5.70 Penalty

Central Excise Act, 1944 Excise Duty & 0.82 Penalty

Central Excise Act, 1944 Excise Duty & 56.16 Penalty

Income Tax Act, 1961 Income Tax 48.38

Income Tax Act, 1961 Income Tax 4.44

Income Tax Act, 1961 Income Tax 6.60 Penalty

Name of Statute Period for which Forum where dispute is the amount relates pending (Assessment Year)

Central Excise Act, 1944 April 2003 to March Commissioner 2005 (Appeals)

Central Excise Act, 1944 April 2003 to Jan. 2006 Commissioner (Appeals)

Central Excise Act, 1944 Oct. 2001 to Oct. 2003 Custom, Excise, Service Tax Appellate Tribunal

Central Excise Act, 1944 June 2001 to Dec. 2004 Custom, Excise, Service Tax Appellate Tribunal

Central Excise Act, 1944 June 2001 to Feb 2003 Commissioner (Appeals)

Central Excise Act, 1944 Jan. 2005 to Dec. 2006 Commissioner (Appeals)

Income Tax Act, 1961 2004-05 Commissioner (Appeals)

Income Tax Act, 1961 2002-03 Income Tax Appellate Tribunal

Income Tax Act, 1961 2002-03 Commissioner (Appeals)

(c) According to the information and explanation given to us, there were no any amount which were required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act,1956 (1 of 1956) and rules made thereunder.

(viii) In our opinion, the company have accumulated losses as at the end of the financial year, which are less than Fifty percent of it's net worth. The company has incurred cash loss during the current financial year and in the immediately preceding financial year.

(ix) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank. The Company did not have any outstanding debentures during the year.

(x) In our opinion and according to information and explanation given to us, the company has not given guarantees for loans taken by others from banks or financial institutions.

(xi) As informed to us, the company has not obtained any term loan during the year.

(xii) 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 Ladha Singhal & Associates Chartered Accountants Firm Registration No.: 120241W

Sd/-

(Vinod Ladha) Partner M. No.: 104151 Place : Mumbai Dated : 29th May, 2015


Mar 31, 2014

We have audited the accompanying financial statements of PARNAX LAB LIMITED (Formerly Krishna-Deep Trade & Investments Limited) ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and 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

Management is responsible for 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 Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance Forming an Opinion and Reporting on Financial Statements 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, the 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 the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) in the case of the Profit and Loss Account, of the Loss for the year ended on that date; and

(c) in the case of the 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 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e. on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f. 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 AUDITORS'' REPORT

The Annexure referred to in our report to the members of Parnax Lab Limited (Formerly Krishna-Deep Trade & Investments Limited) ("the Company") for the year ended 31st March, 2014. We report that :

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The assets have been physically verified by the management during the year under a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) During the year, the company has not disposed off a major part of the plant and machinery and as such the going concern status of the company is not affected.

(ii) (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) (a) The company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(b) The company has taken unsecured loan from Three parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1,111.93 Lacs and the year end balance of unsecured loan taken from such parties were Rs. 545.46 Lacs.

(c) In our opinion, rate of interest and other terms and conditions of the above unsecured loans taken by the company are prima facie, not prejudicial to the interest of the company.

(d) The payment of principal amounts and the interest as applicable are regular.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods. Further on the basis of our examination of books and records of the company, and according to information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanation given to us, the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information explanations given to us, the company has not accepted any deposits from public within the meaning of section sections 58A and 58AA of the Companies Act, 1956 and rules framed there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under clause (d) of sub section (1) of section 209 of the Act in respect of Company''s products/services and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) The company is generally regular in depositing the 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 with the appropriate authority.

(b) According to the information and explanation given to us, no undisputed amounts payable in respect of sales tax / income tax / custom tax/ wealth tax / excise duty /cess were in arrears as at 31st March, 2014 for a period of more than six months from the date they became payable except Professional Tax of Rs. 1,78,005/- and VAT of Rs. 14,40,647/-.

(c) According to the information and explanation given to us, details of disputed sales tax / income tax / custom tax/ wealth tax / excise duty /cess which have not been deposited as on 31st March, 2014 on account of any dispute are given below.

Name of Statute Nature of the Amount dues (in Lacs) Central Excise Act, 1944 Excise Duty & 5.50 Penalty

Central Excise Act, 1944 Interest 0.26

Central Excise Act, 1944 Excise Duty & 0.43 Penalty

Central Excise Act, 1944 Excise Duty & 5.70 Penalty

Central Excise Act, 1944 Excise Duty & 0.82 Penalty

Central Excise Act, 1944 Excise Duty & 56.16 Penalty

Income Tax Act, 1961 Income Tax 48.38

Income Tax Act, 1961 Income Tax 4.44 Income Tax Act, 1961 Income Tax 6.60 Penalty

Name of Statute Period for which the Forum where amount relates dispute is (Assessment Year) pending

Central Excise Act, 1944 April 2003 to March Commissioner 2005 (Appeals)

Central Excise Act, 1944 April 2003 to Jan. 2006 Commissioner (Appeals)

Central Excise Act, 1944 Oct. 2001 to Oct. 2003 Custom, Excise, Service Tax Appellate Tribunal

Central Excise Act, 1944 June 2001 to Dec. 2004 Custom, Excise, Service Tax Appellate Tribunal

Central Excise Act, 1944 June 2001 to Feb 2003 Commissioner (Appeals)

Central Excise Act, 1944 Jan. 2005 to Dec. 2006 Commissioner (Appeals) Income Tax Act, 1961 2004-05 Commissioner (Appeals)

Income Tax Act, 1961 2002-03 Income Tax Appellate Tribunal

Income Tax Act, 1961 2002-03 Commissioner (Appeals) (x) The accumulated losses of the company are less than 50% of its net worth as at 31st March, 2014. It has not incurred cash losses in the immediately preceding financial year, however it has incurred cash losses during the current financial year.

(xi) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders as at the balance sheet date.

(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) The provisions of any special statute applicable to chit fund or nidhi/mutual benefit fund/societies are not applicable to the Company.

(xiv) The company is not a dealer or trader in shares, securities, debentures and other investments.

(xv) As informed to us the company has not given guarantees for loans taken by others from banks or financial institutions during the year.

(xvi) The company has applied the term loan for the purpose for which the loans were taken

(xvii) On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanation given to us, there are no funds raised on short-terms basis have been used for long-terms investment and vice versa.

(xviii) The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

(xix) There are no debentures outstanding at the year end.

(xx) The Company has not raised any money by public issues during the year.

(xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

As per our report of even date For Ladha Singhal & Associates Chartered Accountants Firm''s Registration Number : 120241W

(Vinod Ladha) Partner M. No.: 104151 Place : Mumbai. Date : 30th May, 2014


Mar 31, 2013

We have audited the accompanying financial statements of PARNAX LAB LIMITED (Formerly Krishna-Deep Trade & Investments Limited) ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and 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

Management is responsible for 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 Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance Forming an Opinion and Reporting on Financial Statements 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, the 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 the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

(b) in the case of the Profit and Loss Account, of the Loss for the year ended on that date; and

(c) in the case of the 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 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f. 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 auditors'' Report

The Annexure referred to in our report to the members of Parnax Lab Limited ("the Company") for the year ended 31st March, 2013. We report that:

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The assets have been physically verified by the management during the year under a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) During the year, the company has not disposed off a major part of the plant and machinery and as such the going concern status of the company is not affected.

(ii) (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) (a) The company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(b) The company has taken unsecured loan from two parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 736.76 Lacs and the yearend balance of unsecured loan taken from such parties was Rs. 520.93 Lacs.

(c) In our opinion, rate of interest and other terms and conditions of the above unsecured loans taken by the company are prima facie, not prejudicial to the interest of the company.

(d) The payment of principal amounts and the interest as applicable are regular.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods. Further on the basis of our examination of books and records of the company, and according to information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanation given to us, the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information explanations given to us, the company has not accepted any deposits from public within the meaning of section sections 58A and 58AA of the Companies Act, 1956 and rules framed there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under clause (d) of sub section (1) of section 209 of the Act in respect of Company''s products/services and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) The company is generally regular in depositing the 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 with the appropriate authority.

(b) According to the information and explanation given to us, no undisputed amounts payable in respect of sales tax / income tax / custom tax/ wealth tax / excise duty /cess were in arrears as at 31st March, 2013 for a period of more than six months from the date they became payable except Professional Tax of Rs. 2,17,905/- and VAT of Rs. 14,40,647/-.

(c) According to the information and explanation given to us, details of disputed sales tax / income tax / custom tax/ wealth tax / excise duty /cess which have not been deposited as on 31st March, 2013 on account of any dispute are given below.

Name of Statute Nature of the Amount Period for which the Forum where dispute is dues (in Lacs) amount relates pending (Assessment Year)

Central Excise Act, 1944 Excise Duty & 5.50 April 2003 to March Commissioner (Appeals) Penalty 2005

Central Excise Act, 1944 Interest 0.26 April 2003 to Jan. 2006 Commissioner (Appeals)

Central Excise Act, 1944 Excise Duty & 0.43 Oct. 2001 to Oct. 2003 Custom, Excise, Service Penalty Tax Appellate Tribunal

Central Excise Act, 1944 Excise Duty & 5.70 June 2001 to Dec. 2004 Custom, Excise, Service Penalty Tax Appellate Tribunal

Central Excise Act, 1944 Excise Duty & 0.82 June 2001 to Feb 2003 Commissioner (Appeals) Penalty

Central Excise Act, 1944 Excise Duty & 56.16 Jan. 2005 to Dec. 2006 Commissioner (Appeals) Penalty

Income Tax Act, 1961 Income Tax 48.38 2004-05 Commissioner (Appeals)

Income Tax Act, 1961 Income Tax 4.44 2002-03 Income Tax Appellate Tribunal Income Tax Act, 1961 Income Tax 6.60 2002-03 Commissioner (Appeals) Penalty

(x) The company has no accumulated losses as at 31st March, 2013 and it has incurred cash losses in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders as at the balance sheet date.

(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) The provisions of any special statute applicable to chit fund or nidhi/mutual benefit fund/societies are not applicable to the Company.

(xiv) The company is not a dealer or trader in shares, securities, debentures and other investments.

(xv) As informed to us the company has not given guarantees for loans taken by others from banks or financial institutions during the year.

(xvi) The company has applied the term loan for the purpose for which the loans were taken

(xvii) On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanation given to us, there are no funds raised on short-terms basis have been used for long-terms investment and vice versa.

(xviii) The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

(xix) There are no debentures outstanding at the year end.

(xx) The Company has not raised any money by public issues during the year.

(xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

As per our report of even date

For Ladha Singhal & Associates

Chartered Accountants

(Firm Redg. No. : 120241W)

Sd/-

(Vinod Ladha)

Partner

M. No.: 104151

Place : Mumbai

Date: May 28, 2013


Mar 31, 2012

We have audited the attached Balance Sheet of M/S. PARNAX LAB LIMITED (Formerly Krishna-Deep Trade & Investments Limited) as at 31st March, 2012 and the Profit and Loss Account of the said Company for the year ended on that date both 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.

We conducted our audit in accordance with auditing standard generally accepted in India. Those Standards required 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 discloser 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 audit provides a reasonable basis for our opinion.

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. Further to our comments in the Annexure referred to in paragraph 1 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 purpose of our Audit.

ii) In our opinion, the Company, as required by the law, has kept proper books of account, so far as it appears from our examination of such books.

iii) The Balance Sheet and Profit and Loss Account dealt with by this Report are in agreement with the books of account.

iv) In our opinion, the Profit & Loss Account and the Balance Sheet comply with Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

v) On the basis of written representation received from the directors as on 31st March 2012, and taken on record by the Board of Directors, we report that none of the director is disqualified as on 31st March 2012 from being appointed as a director in term of clause (g) of section 274(1) of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the accounts read together with notes thereon 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 principle generally accepted in India: -

i. In the case of Balance Sheet of the State of affairs of the Company as at 31st March, 2012 and

ii. In the case of Profit and Loss Account, of the Loss for the year ended on that date.

iii. In the case of cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO AUDITORS' REPORT (Referred to in paragraph 1 of our report of even date.)

(i)

(a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The assets have been physically verified by the management during the year under a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) During the year, the company has not disposed off a major part of the plant and machinery and as such the going concern status of the company is not affected.

(ii)

(a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii)

(a) The company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(b) The company has taken unsecured loan from two parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 646.10 Lacs and the year-end balance of unsecured loan taken from such parties was Rs. 646.10 Lacs.

(c) In our opinion, rate of interest and other terms and conditions of the above unsecured loans taken by the company are prima facie, not prejudicial to the interest of the company.

(d) The payment of principal amounts and the interest as applicable are regular.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods. Further on the basis of our examination of books and records of the company, and according to information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls.

(v)

(a) According to the information and explanation given to us, the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information explanations given to us, the company has not accepted any deposits from public within the meaning of section sections 58A and 58AA of the Companies Act, 1956 and rules framed there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) In our opinion the central government has not prescribed maintenance of cost records u/s 209 (1) (d) of the Act for the company.

(ix)

(a) The company is generally regular in depositing the undisputed statutory dues including provident fund, investor education protection fund, employee's state insurance, income tax. Sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable with the appropriate authority.

(b) According to the information and explanation given to us, no undisputed amounts payable in respect of sales tax / income tax / custom tax/ wealth tax / excise duty /cess were in arrears as at 31st March, 2012 for a period of more than six months from the date they became payable except Professional Tax of Rs. 2,76,465/- and VAT of Rs. 12,00,393/-.

(c) According to the information and explanation given to us, details of disputed sales tax / income tax / custom tax/ wealth tax / excise duty /cess which have not been deposited as on 31st March, 2012 on account of any dispute are given below.

Name of Nature of the Amount Period for Forum where dispute Statute dues (in Lacs) which the is pending amount relates (Assessment Year)

Income Tax Income Tax 29.64 2002-03 Commissioner Act, 1961 (Appeals)

Income Tax Income Tax 48.38 2004-05 Commissioner Act, 1961 (Appeals)

Central Excise Duty 145.21 Jan. 2005 to Custom, Excise, Excise Act, & Penalty Dec. 2006 Service Tax Appellate 1944 Tribunal

Central Excise Duty 5.50 April 2003 to Commissioner Excise Act, & Penalty March 2005 (Appeals) 1944

Central Interest 0.26 April 2003 to Commissioner Excise Act, Jan. 2006 (Appeals) 1944

Income Tax Income Tax 0.52 2001-02 Commissioner Act, 1961 (Appeals)

Income Tax Income Tax 5.44 2002-03 Income Tax Appellate Act, 1961 Tribunal

Income Tax Income Tax 6.60 2002-03 Commissioner Act, 1961 Penalty (Appeals)

Income Tax Income Tax 0.02 2007-08 Commissioner Act, 1961 (Appeals)

Central Excise Duty 0.43 Oct. 2001 to Custom, Excise, Excise Act, & Penalty Oct. 2003 Service Tax Appellate 1944 Tribunal

Central Excise Duty 5.70 June 2001 to Custom, Excise, Excise Act, & Penalty Dec. 2004 Service Tax Appellate 1944 Tribunal

Central Excise Duty 0.82 June 2001 to Commissioner Excise Act, & Penalty Feb 2003 (Appeals) 1944

Central Excise Duty 56.16 Jan. 2005 to Commissioner Excise Act, & Penalty Dec. 2006 (Appeals) 1944

(x) The company has no accumulated losses as at 31st March, 2012 and it has incurred cash losses in the financial year ended on the date.

(xi) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders as at the balance sheet date.

(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) The provisions of any special statute applicable to chit fund or nidhi/mutual benefit fund/societies are not applicable to the Company.

(xiv) The company is not a dealer or trader in shares, securities, debentures and other investments.

(xv) As informed to us the company has not given guarantees for loans taken by others from banks or financial institutions during the year.

(xvi) The company has applied the term loan for the purpose for which the loans were taken

(xvii) On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanation given to us, there are no funds raised on short-terms basis have been used for long-terms investment and vice versa.

(xviii) The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

(xix) There are no debentures outstanding at the year end.

(xx) The Company has not raised any money by public issues during the year.

(xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

As per our report of even date

For Ladha Singhal & Associates

Chartered Accountants

(Firm Redg. No. : 120241W)

Sd/-

(Vinod Ladha)

Partner

M. No.: 104151

Place : Mumbai.

Date: 6th July, 2012


Mar 31, 2004

We have audited the attached Balance Sheet of KRISHNADEEP TRADE & INVESTMENT LTD, as at 31st March, 2004 & the Cash Flow Statement the Profit & Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibilities of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those 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 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1. 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 and according to the information and explanations given to us during the course of our audit and on the basis of such checks as were considered appropriate, we give in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. Further to our commen to the Annexure referred to in paragraph I above, we state that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our Audit.

b) In our opinion, proper books of accounts as required by Law have been kept by the Company, so far as appears from our examination of such books.

c) In our opinion the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in Sub-section (3c) of Section 211 of the Companies Act, 1956.

d) On the basis of written representation received from directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2004 from being appointed as a director in terms of clause (g) of subsection (1) of Section 274 of the Companies Act, 1956.

e) The Balance Sheet, Profit & Loss A/c. & the Cash Flow Statement referred to in this report are in agreement with the books of accounts.

3. Attention is invited to the following notes

a. Accounting for interest receivable on cash basis.

b. The extent of recovery of TDS of Rs.14,90,831/- as referred in note 5 of Schedule "H".

c. Non-provision of doubtful debtors of Rs. 1,56,000/ -.

d. Conversion of Stock in Trade to Investments as referred to in note 7 of Schedule "H".

4. In our opinion and to the best of our information and according to the explanations given to us, subject to what is stated in para 3 above, the accounts give a true and fair view, in conformity with the accounting principles generally accepted in India;

a) in so far it relates to the Balance Sheet of the state of affairs of the Company as at 31.03.2004. and

b) in so far it relates to the Profit & Loss A/c., of the "Loss" of the Company for the year ended on that date.

c) in so far it relates to the Cash Flow Statement of the Cash Flow of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 1 of our Report of even date

i) In respect of fixed assets:

The Company docs not have any fixed assets.

ii) In respect of inventories:

In respect of Shares held as Stock in Trade,. the Company has maintained proper record. The procedure of physical verification followed by the Company is sufficient. No discrepancies were observed during the course of verification.

iii) a) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

iv) In our opinion and according to the information and explanation given to us, there exists adequate internal control procedures commensurate with the size of the company and the nature of its business. During the course of audit, we have not observed any major weaknesses, in internal controls.

v) According to the information and explanation given to us, the company has not entered into any transactions that were required to be entered in the registers maintained under Section 301 of the Companies Act, 1956.

vi) The Company has not accepted any public deposits during the year, therefore the question of compliance with Section 58 of the Companies Act, 1956 does no arise.

vii) The company does not have formal internal Audit System..

viii) The Central Government has not prescribed maintenance of cost records under Section 209(l)(d) of the Companies Act, 1956 in respect of the products of the Company.

ix) In respect of Statutory Dues:

a) According to the information and explanations given to us, the company is regular in depositing undisputed statutory dues wherever applicable. There were no undisputed statutory dues outstanding for a period of more than six months from the date they became payable.

b) In respect of disputed statutory dues, income , tax demand for Rs.2,18,83,988/- has been made by Income Tax authorities for various assessment year against which the company has filed appeal in the Income Tax Appellate Tribunal.

x) The Companys accumulated losses at the end of the financial year if more than fifty percent of its net worth and the company has made cash losses during the current financial year and in the immediately preceding financial year.

xi) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of its dues to financial institutions or banks or to debenture holders.

xii) The company has not granted any loans or 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/ nidhi/ mutual benefit fund/ society, therefore the provision of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) The company has maintained proper records regarding transactions in Shares & Securities. The Investment of the Company are held in its own name.

xv) As per the information and explanation given to us the company had not issued any guarantees for loans taken by others.

xvi) The Company has not raised any term loans during the year,

xvii) Based on overall examination of the balance sheet, we report that the Company has not used Short Term Funds for Long Term purpose or Vice Versa.

xviii) According to the information and explanations given to us, the company has not made preferential allotment of equity shares to persons covered in the register maintained under section 301 of the Companies Act, 1956.

xix) No Debentures have been issued by the company during the year.

xx) The Company has not raised any money by public issue during the year.

xxi) As per the information and explanations given to us and on the basis of examination of records, no material fraud on or by the company was noticed or reported during the year.

For AGRAWAL & JINDAL

CHARTRED ACCOUTNTANTS

SURESH AGRAWAL PARTNER Partnership No. : 40141

Place : Mumbai Date : 31st August, 2004.

 
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