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Parabolic Drugs Ltd.

BSE: 533211 Sector: Health care
NSE: PARABDRUGS ISIN Code: INE618H01016
BSE 16:01 | 25 Jun 4.11 -0.21
(-4.86%)
OPEN

4.15

HIGH

4.15

LOW

4.11

NSE 15:40 | 25 Jun 3.95 -0.20
(-4.82%)
OPEN

4.00

HIGH

4.20

LOW

3.95

OPEN 4.15
PREVIOUS CLOSE 4.32
VOLUME 5405
52-Week high 9.81
52-Week low 3.77
P/E
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.15
CLOSE 4.32
VOLUME 5405
52-Week high 9.81
52-Week low 3.77
P/E
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Parabolic Drugs Ltd. (PARABDRUGS) - Auditors Report

Company auditors report

TO THE MEMBERS OF PARABOLIC DRUGS LIMITED

We have audited the accompanying financial statements of M/s. Parabolic DrugsLimited which comprises the Balance sheet as at 31st March 2017 and the Statement ofProfit & Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rule 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror. Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us subject to Note 25(1) of the financial statements regardingconfirmation of debit or credit balances (including sundry parties) on whatsoever accountthe aforesaid financial statements read with note 25 forming part of financialstatements give the information required by the Act in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India: a) in the case of Balance Sheet of the state of affairs of the Companyas at 31st March 2017; b) in the case of Statement of Profit & Loss of the Loss forthe year ended on that date and c) in case of cash flow statement of the cashflows for the year ended on that date. Report on Other Legal and RegulatoryRequirements As required by the Companies (Auditor's Report) Order 2016 ("theorder") issued by the Central Government of India in terms of sub-section 11 ofsection 143 of the Act we enclose in the Annexure "A" a statement on thematters specified in paragraph 3 and 4 of the said order to the extent applicable . Asrequired by section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) In our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books. c) The Balance Sheet and the Statement of Profit& Loss and the Cash Flow Statement dealt with by this report are in agreement with thebooks of account. d) In our opinion the aforesaid financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e) On the basis of written representationsreceived from the Directors as on 31st March 2017 and taken on record by the Board ofDirectors none of the Directors is disqualified as on 31st March 2017 from beingappointed as a Director in terms of Section 164(2) of the Act. f) With respect toadequacy of the internal financial controls over financial reporting of the company andthe operating effectiveness of such controls refer to our separate report in Annexure'B': and g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous : i) The company has disclosed the impact of pending litigation on its financialposition in the financial statements; ii) The Company has made provision as required underthe applicable law or accounting standards for material foreseeable losses if anyincluding derivatives contracts; and

Chandigarh

Dated: 29th May 2017 iii) There has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company. iv) Thecompany has provided the requisite disclosures in its financial statements as to holdingsas well as dealings in Specified Bank Notes during the period from 8th November 2016 to30th December2016 and Based on the audit procedures performed and the representationsprovided to us by the management we report that the disclosures are in accordance withthe books of accounts maintained by the company. Refer to Note 25(26) to the financialstatements.

FOR S.K. BANSAL & CO. CHARTERED ACCOUNTANTS Firm Registration No. 002222N

Sd/-
(S.K. Bansal)
Partner
Membership No: 013147
Name: M/s. S.K. Bansal& Co.
Chartered Accountants
Address: Kothi No. 3193 Sector 28 – D
Chandigarh-160002

Annexure-`A' referred to in the Independent Auditors' Report to the Members of M/s.Parabolic Drugs Limited on the accounts for the year ended 31st March 2017.

(i) (a)As confirmed by the management the Company is maintaining proper recordsshowing full particulars including quantitative details and situation of fixed assets.However it is not up to date as on 31st March 2017.

(b) We are informed that the company has framed programme of periodical physicalverification of its fixed assets in phased manner which in our opinion is reasonablehaving size of the company and nature of its business. As confirmed by the company duringthe year ended 31st March 2017 physical verification of the fixed assets was carried outby the management during the year and no material discrepancy was noticed on suchverification

(c) According to the information & explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties asdisclosed in Note-9 to theses financial statements are generally held in the name of thecompany. However we have not verified the title deeds for immovable properties during theyear.

(ii) According to the information & explanations given to us the inventoriescomprises of raw material work in progress material at shop floor semi-finished goodsand finished goods total valuing Rs 15.25 crores as on 31st March 2017 have beenphysically verified and certified by the management which have been relied upon. Asconfirmed by management no material discrepancies were noticed on physical verificationof the same.

(iii) Since the company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 so paragraph iii (a)iii (b) & iii(c) isnot applicable.

(iv) In our opinion and according to information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made and guarantees and securities provided by it.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the Rules framed thereunder to the extent notified.

(vi) The company is required to maintain cost records as prescribed by CentralGovernment under section 148(1) of the Companies Act 2013 and according to the informationand explanations given to us the company has maintained proper records as prescribed bycentral government However we have not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.

(vii) (a)According to information and explanations given to us and the records of thecompany examined by us in our opinion the company is regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues to the appropriate authorities . There are no statutory duesoutstanding for a period exceeding six months from the date they become payable exceptas given below:

S.No.

Nature of the Statute

Nature of Dues

Amount Period to which

amount relates

(Rs. In Lacs)
1

Employee State Insurance

ESI Payable-Derabassi

22.48 Feb-2015 to Sept-
Act1948 2016
2

Employees Provident Funds &

PF Payable-Derabassi

166.83 June-2014 to Sept-
Miscellaneous

Provisions

2016
Act1952
3 Employee State

Insurance

ESI Payable-Panchkula

1.67 Apr-2015 to Sept-
Act1948 2016
4

Employees Provident Funds &

PF Payable-Panchkula

7.99 July-2014 to Sept-
Miscellaneous

Provisions

2016
Act1952
5 Employee State

Insurance

ESI

Payable-Contractor

3.82 Feb-2014 to Sept-
Act1948

(Derabassi)

2016
6 Labour

Welfare

Fund Staff Welfare Fund 0.94 Feb-2015 to Sept-
Act1972

Payable

2016
7

Income Tax Act1961

TDS Payable

48.24 Oct-2014 to Sept-
2016
8 Central Sales Tax Act and Vat /Cst Payable 75.89

Jan-2015 to

Sales tax Act of Various

(BaddiH.P)

Mar-2016
States
9 Central Sales Tax Act and Vat /Cst Payable 4.23 Sept-2015 to Sept-
Sales tax Act of Various

(Panchkula)

2016
States
10

Finance Act1944

Service Tax Payable

1.39

March-2016 to Sept-

2016

(b) According to the information and explanations given to us and the records of thecompany examined by us in our opinion there are no material dues of income tax or salestax or service tax or duty of customs or duty of excise or value added tax which have notbeen deposited with the appropriate authorities on account of any dispute exceptthe following cases of Income tax Excise duty & Service Tax which are pending atvarious courts as there demand will be confirmed after order:-

S. No. Nature of the Nature of Amount Period to

Forum where dispute

Statute Dues (Rs.)

which amount

is pending
related
1

Finance Act1944

Service Tax 28.50 Lacs

FY 2011-2012

Commissioner
(Appeals)
2

Finance Act1944

Service Tax 6.34 Lacs

FY 2013-2014

Deputy Commissioner

Derabassi
3

Finance Act1944

Service Tax 14.22 Lacs Apr-2014 to Assistant
Mar-2016 Commissioner Central
Excise & Service Tax
Derabassi
4 Central

Excise

Excise Duty 5859.97 Lacs

FY 2012-2013

Punjab & Haryana High

act1944

Court
5 Central

Excise

Rebate Claim 875.95 Lacs

FY 2012-2013

Commissioner

act1944

Chandigarh
6 Central

Excise

Rebate Claim 15.61 Lacs

FY 2011-2012

Joint Secretary Ministry

act1944

of Finance
7 Income Tax Act Income Tax 1131.32 Lacs

F.Y 2010-2011

Commissioner of
1961 (AY 2011- Income Tax Central
2012) Circle Gurgaon
8 Income Tax Act Income Tax 145.40 Lacs

F.Y 2010-2011

Hon'ble Punjab and
1961 (AY 2011-

Haryana High Court

2012)

(viii) In our opinion and according to the information and explanations given to us andas confirmed by management the company has defaulted in repayment of dues to a financialinstitutions & banks as all the credit facilities from most of banks/financialinstitutions of the company have already been classified as NPA . (ix) Since no money hasbeen raised by way of initial public offer or further public offer (including debtinstruments) during the year the requirement of paragraph 3(ix) is not applicable andfurther we report that the no fresh term loans has been raised by the company during theyear under report.

(x) During the course of examination of of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to information & explanation given to us we have neither come across anyinstance of fraud by the company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the Management.

(xi) According to information and explanations given to us and based on our examinationof records of the company the company has not paid any managerial remuneration during theyear. Accordingly provisions of clause 3(xi) of the order are not applicable.

(xii) In our opinion and according to information and explanations given to us thecompany is not a Nidhi Company and Nidhi Rules2014 are not applicable to it. Accordinglyprovisions of clause 3(xii) of the order are not applicable.

(xiii) To the best of our knowledge and according to the information and explanationsgiven to us all transactions with related parties are in compliance with the provisionsof sections 177 and 188 of the Act where applicable and the detail of such related partytransactions have been disclosed in Note No 25(24) to the financial statements as requiredby the applicable Accounting Standards.

(xiv) According to information and explanations given to us and based on ourexamination of records of the company the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.

(xv) According to information and explanations given to us and based on our examinationof records of the company the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3(xv) ofthe order are not applicable.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the order are notapplicable to the company.

FOR S.K. BANSAL & CO.
CHARTERED ACCOUNTANTS
Sd/-
(S.K. Bansal)
Partner
Membership No: 013147
FRN No.002222N
Name: M/s. S.K. Bansal & Co.
Chartered Accountants
Address: Kothi No. 3193 Sector 28 – D
Chandigarh-160002

Chandigarh;

Dated: 29th May 2017

Annexure-B INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF PARABOLIC DRUGS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of PARABOLICDRUGS LIMITED Chandigarh ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls The Company'smanagement is responsible for establishing and maintaining internal financial controlsbased on "the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India". These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the

Chandigarh

Dated: 29th May 2017 auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providebasis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting A company'sinternal financial control over financial reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial ReportingBecause of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India"].

FOR S.K. BANSAL & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 002222N
Sd/-
(S.K. Bansal)
Partner
Membership No: 013147
Name: M/s. S.K. Bansal& Co.
Chartered Accountants
Address: Kothi No. 3193 Sector 28 – D Chandigarh-160002