To the Members of PARNAX LAB LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of PARNAX LABLIMITED (the company) which comprise the Balance Sheet as at 31 March2015 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand 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 section134(5) of the Companies Act 2013 (the Act) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operative effectiveness of such control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas 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 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 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 bestof 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 theCompany 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 dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms ofSection 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of Companies (Audit and Auditors) Rules 2014 in our opinion andto the best of our information and according to the explanations given to us:
i) The Company does not have any pending litigations which would impact its financialposition;
ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For Ladha Singhal & Associates
Firm Registration No.: 120241W
M. No.: 104451
Dated: 29th May 2015
Annexure to the Independent Auditor's Report
Referred to as Annexure in our Independent Auditors' Report of even date to the membersof PARNAX LAB LIMITED on the standalone financial statement for the year ended 31stMarch 2015 we report that :
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the yearunder a regular programme of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets. No material discrepancieswere 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 arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The company is maintaining proper records of inventory. The discrepancies noticedon 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 anyother party covered in the register maintained under section 189 of the Companies Act2013 ('the Act'). As the company has not granted any loans secured or unsecured to/fromparties covered in the register maintained under section 189 of the Companies Act 2013paragraphs (iii) (b) and (c) of the order are not applicable.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control systems commensurate with the size of the company andthe nature of its business with regard to purchase of fixed assets and for the sale ofgoods. Owing to the nature of its business the Company is involved in purchase ofinventories and sale of goods. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal controls.
(v) In our opinion and according to the information given to us the company has notaccepted deposits and hence compliance with the directives issued by Reserve Bank ofIndia and the provisions of sections 73 to 76 or any other relevant provisions of the Actand 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 byCentral 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 ofour examination of the records of the Company the company is generally regular indepositing with appropriate authorities applicable undisputed statutory dues includingprovident fund employee state insurance income tax sales tax wealth tax service taxduty of custom duty of excise value added tax cess.
According to the information and explanation given to us no undisputed amounts payablein respect of provident fund income tax sales tax wealth tax service tax duty ofcustom duty of excise value added tax or cess were in arrears as at 31st March 2015 fora period of more than six months from the date they became payable except Professional Taxof Rs. 180530/- and VAT of Rs. 1307545/-.
(b) According to the information and explanation given to us details of disputed salestax / income tax / custom tax/ wealth tax / excise duty /cess which have not beendeposited as on 31st March 2015 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) |
(c) According to the information and explanation given to us there were no any amountwhich were required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Companies Act1956 (1 of 1956) and rulesmade thereunder.
(viii)In our opinion the company have accumulated losses as at the end of thefinancial year which are less than Fifty percent of it's net worth. The company hasincurred cash loss during the current financial year and in the immediately precedingfinancial year.
(ix) In our opinion and according to the information and explanation given to us thecompany has not defaulted in repayment of dues to any financial institution or bank. TheCompany did not have any outstanding debentures during the year.
(x) In our opinion and according to information and explanation given to us thecompany has not given guarantees for loans taken by others from banks or financialinstitutions.
(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 thecompany has been noticed or reported during the course of our audit
For Ladha Singhal & Associates
Firm Registration No.: 120241W
M. No.: 104151
Place : Mumbai
Dated : 29th May 2015