Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT To The Members of Parnax Lab Limited Report on the Standalone Indian Accounting Standard (Ind AS) Financial Statements
1. We have audited the accompanying Standalone Ind AS financial statements of Parnax Lab Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (Including Other Comprehensive Income), the Cash Flow Statement and the Statement of Change in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Companyâs 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under section 133 of the Act.
3. 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 controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error
Auditor''s Responsibility
4. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
5. 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
6. We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
7. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
8. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
9. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the state of affairs of the Company as at 31st March, 2018, and its profit, its cash flows and the change in equity for the year ended on that date.
Report on other Legal and Regulatory Requirements
10. As required by the Companies (Auditorâs Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
11. 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, the Cash Flow Statement and Statement of Change in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian 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, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the 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".
g) With respect to the other matters to be included in the Auditorâs 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 has disclosed the impact of pending litigations on its financial position in note no. 34 of its standalone Ind AS financial statements;
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.
Referred to as ''Annexure Aâ in paragraph 9 of the Independent Auditorsâ Report of even date to the members of Parnax Lab Limited on the standalone Ind AS financial statements for the year ended on 31st March, 2018, 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 program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No discrepancies were noticed on such verification.
(c) According to the information and the explanation given to us and the records examined by us, we report that the title deeds of immovable properties are held in the name of the Company as at the Balance Sheet date.
(ii) As explained to us, the inventories were physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any secured or unsecured loan to Companies, Firms, Limited Liability Partnerships, or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Actâ). Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations 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.
(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 regular in depositing with appropriate authorities applicable undisputed statutory dues including employee state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess.
(b) According to the information and explanation given to us, no undisputed amounts payable in respect of employee state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax or cess were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, details of employee state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax or cess which have not been deposited as on 31st March, 2018 on account of any dispute are as given below:
Name of Statute |
Nature of the dues |
Amount (in Lacs) |
Period for which the amount relates (Assessment Year) |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise Duty & Penalty |
5.50 |
April 2003 to March 2005 |
Commissioner (Appeals) |
Central Excise Act, 1944 |
Excise Duty & Penalty |
0.26 |
April 2003 to Jan. 2006 |
Commissioner (Appeals) |
Central Excise Act, 1944 |
Excise Duty & Penalty |
0.43 |
Oct. 2001 to Oct. 2003 |
Custom, Excise, Service Tax Appellate Tribunal |
Central Excise Act, 1944 |
Excise Duty & Penalty |
0.82 |
June 2001 to Feb 2003 |
Commissioner (Appeals) |
Central Excise Act, 1944 |
Excise Duty & Penalty |
56.16 |
Jan. 2005 to Dec. 2006 |
Commissioner (Appeals) |
(viii) In our opinion and according to the information and explanation given to us, the company has not defaulted in the repayment of loans or borrowings to banks or financial institutions. The Company does not have any borrowings from government and has not issued any debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) or term loans during the year; hence clause 3(ix) of the Companies (Auditorsâ Report) Order, 2016 are not applicable to the Company.
(x) 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 explanations given to us, we have neither come across any instance of material 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 the information and explanation given to us and based on our examination of the records of the Company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with the Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company; hence clause 3(xii) of the Companies (Auditorsâ Report) Order, 2016 is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with the sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements in note no 42 as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosure specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014.
(xiv) According to the information and explanations given to us and based on our examination of the 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 the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with the directors or the persons connected to its directors; hence clause 3(xv) of the Companies (Auditorsâ Report) Order, 2016 is not applicable to the Company
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Referred to as ''Annexure B'' in paragraph 10(f) of the Independent Auditors'' Report of even date to the members of Parnax
Lab Limited on the standalone Ind AS financial statements for the year ended on 31st March, 2018. Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of Parnax Lab Limited ("the Company") as on 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended and as on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the 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 India ("the Guidance Note"). 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 Act.
Auditors'' Responsibility
3. 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 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 over financial reporting. Those Standards and the Guidance Note require that we comply with the 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.
4. 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 a 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 judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. 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 standalone Ind AS 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 standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. 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
8. In our opinion, to the best of our information and according to the explanations given to us, 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 31st March 2018, based on the 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 India.
For Ladha Singhal & Associates
Chartered Accountants
Firmâs Registration No.: 120241W
Sd/-
(Vinod Ladha)
Partner
M. No.: 104151
Place : Mumbai
Dated : 30th May, 2018
Mar 31, 2016
To the Members of PARNAX LAB LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of PARNAX LAB LIMITED ("the company"), which comprise the Balance Sheet as at 31 March 2016, 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 Companyâs 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 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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 Companyâs 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, 2016, 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 (Auditorâs 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 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, 2016, 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 the other matters to be included in the Auditorâs 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 Auditorsâ Report of even date to the members of PARNAX LAB LIMITED on the standalone financial statement for the year ended 31st March 2016, 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.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(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 discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) According to the information and explanations given to us, the Company has granted unsecured loan aggregating to Rs. 62.85 Lacs to its subsidiary company covered in the register maintained under section 189 of the Companies Act, 2013 (''the Actâ). The yearend balance of the loan granted to its subsidiary company was Rs. 62.85 Lacs.
(a) The terms and conditions of the grant of such loan is, in our opinion, prima facie, not prejudicial to the interest of the Company after considering the purpose for which loan has been granted.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no amount remaining outstanding as at the yearend for more than 90 days.
(iv) In our opinion and according to the information and explanations 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.
(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, 2016 for a period of more than six months from the date they became payable except Service Tax of Rs 10,61,236/-.
(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, 2016 on account of any dispute are given below.
Name of Statute |
Nature of the dues |
Amount (in Lacs) |
Period for which the amount relates (Assessment Year) |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise Duty & Penalty |
5.50 |
April 2003 to March 2005 |
Commissioner (Appeals) |
Central Excise Act, 1944 |
Interest |
0.26 |
April 2003 to Jan. 2006 |
Commissioner (Appeals) |
Central Excise Act, 1944 |
Excise Duty & Penalty |
0.43 |
Oct. 2001 to Oct. 2003 |
Custom, Excise, Service Tax Appellate Tribunal |
Central Excise Act, 1944 |
Excise Duty & Penalty |
5.70 |
June 2001 to Dec. 2004 |
Custom, Excise, Service Tax Appellate Tribunal |
Central Excise Act, 1944 |
Excise Duty & Penalty |
0.82 |
June 2001 to Feb 2003 |
Commissioner (Appeals) |
Central Excise Act, 1944 |
Excise Duty & Penalty |
56.16 |
Jan. 2005 to Dec. 2006 |
Commissioner (Appeals) |
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 Penalty |
6.60 |
2002-03 |
Commissioner (Appeals) |
(viii) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of loans or borrowing to any financial institution, bank, government. The Company did not have any outstanding debentures during the year.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). The Company did not obtained any fresh term loan during the year.
(x) According to the information and explanation given to us, no fraud by the company or no fraud on the company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanation give to us and based on our examination of the records of the Company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with the Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company; hence clause 3(xii) of the Companies (Auditorsâ Report) Order, 2016 is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with the sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the 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 the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with the directors or the persons connected with him; hence clause 3(xv) of the Companies (Auditorsâ Report) Order, 2016 is not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - A to the Independent Auditors'' Report (Referred to in paragraph (f) under "Report on Other Legal and Regulatory Requirementsâ section of our report of even date) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Parnax Lab Limited ("the Company") as on 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended and as on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the 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 India ("the Guidance Note"). 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 Act.
Auditors'' 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 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 over financial reporting. Those Standards and the Guidance Note require that we comply with the 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 a 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 judgment, 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 a 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, to the best of our information and according to the explanations given to us, 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 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
For Ladha Singhal & Associates
Chartered Accountants
Firm Registration No.: 120241W
(Vinod Ladha)
Partner M. No.: 104151
Place : Mumbai
Dated : 30th May, 2016
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.