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Parabolic Drugs Ltd.

BSE: 533211 Sector: Health care
NSE: PARABDRUGS ISIN Code: INE618H01016
BSE 00:00 | 18 Apr 1.71 -0.09
(-5.00%)
OPEN

1.71

HIGH

1.85

LOW

1.71

NSE 00:00 | 18 Apr 1.55 0
(0.00%)
OPEN

1.55

HIGH

1.55

LOW

1.55

OPEN 1.71
PREVIOUS CLOSE 1.80
VOLUME 3400
52-Week high 7.17
52-Week low 1.27
P/E
Mkt Cap.(Rs cr) 11
Buy Price 1.71
Buy Qty 400.00
Sell Price 1.71
Sell Qty 1514.00
OPEN 1.71
CLOSE 1.80
VOLUME 3400
52-Week high 7.17
52-Week low 1.27
P/E
Mkt Cap.(Rs cr) 11
Buy Price 1.71
Buy Qty 400.00
Sell Price 1.71
Sell Qty 1514.00

Parabolic Drugs Ltd. (PARABDRUGS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF PARABOLIC DRUGS LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of M/s. ParabolicDrugs Limited ("the company") which comprises the Balance sheet as at 31st March2018 and the Statement of Profit & Loss (including other Comprehensive Income) theCash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information (herein refer to as "standalone financialstatements").

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 standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act read with Rule7 of the Companies (Accounts) Rule 2015. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness 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 is sufficient and appropriate toprovide 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 explanationsgiven to us subject to Note 25(1) of the standalone financial statements regardingconfirmation of debit or credit balances (including sundry parties) on whatsoever accountthe aforesaid standalone financial statements read with note 25 forming part of financialstatements give the information required by the Act in the manner so required and givea true and fair view in conformity with the accounting principles generally accepted inIndia including ;

a) In the case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2018;

b) In the case of Statement of Profit & Loss including other Comprehensive Incomeof the Loss for the year ended on that date and

c) In case of cash flow statement of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the order") issued by the Central Government of India in terms of sub-section 11 of section 143 of theAct we enclose in the Annexure "A" a statement on the matters specifiedin paragraph 3 and 4 of the said order to the extent applicable .

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

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

c) The Balance Sheet and the Statement of Profit & Loss and the Cash Flow Statementdealt with 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 2015.

e) On the basis of written representations received from the Directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2018 from being appointed as a Director in terms of Section164(2) of the Act.

f) With respect to adequacy of the internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in Annexure 'B': and

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us :

i. The company has disclosed the impact of pending litigation on its financial positionin the standalone financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any including derivatives contracts; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

Chandigarh FOR V K JINDAL & ASSOCIATES.
Dated: 29th May 2018 CHARTERED ACCOUNTANTS
Firm Registration No. 005244N
Sd/-
(Vijay Jindal)
Partner
Membership No: 084128
Name: M/s. V.K. Jindal & Associates.
Chartered Accountants
Address: Plot No 5 Sector- 1 Industrial Area Parwanoo

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 2018.

(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 2018.

(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 managementphysical verification of the fixed assets has not been carried out by the management as on31st March2018 and hence the existence of all the fixed assets as appearing in theFinancial Statements cannot be confirmed.

(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 1588.34 Lacs as on 31st March 2018 . Further thephysical verification of inventories has been conducted by the management as on 31stMarch2018 as per detail submitted to us. It is further confirmed by the management thatno material discrepancies were noticed on physical verification.

(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)is not 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. 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. Further as confirmed bythe management the Cost Audit Report for the FY 2016-17 has not been submitted by theCost Auditor .

(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 as on 31st March2018 for a period exceeding six months from the date theybecome payable except as given below:

S.No. Nature of the Statute Nature of Dues Amount Period to which amount relates
(Rs. In Lacs)
1 Employee State Insurance Act1948 ESI Payable-Derabassi 35.31 Feb-2015 to Sept-2017
2 Employees Provident Funds & Miscellaneous Provisions Act1952 PF Payable-Derabsssi 195.93 June-2014 to Sept-2017
3 Employee State Insurance Act1948 ESI Payable-Panchkula 1.80 Apr-2015 to Sept-2017
4 Employees Provident Funds & Miscellaneous Provisions Act1952 PF Payable-Panchkula 7.78 July-2014 to Sept-2017
5 Employee State Insurance Act1948 ESI Payable-Contractor (Derabassi) 5.00 Feb-2014 to Sept-2017
6 Labour Welfare Fund Act1972 Staff Welfare Fund Payable 1.57 Feb-2015 to Sept-2017
7 Income Tax Act1961 TDS Payable 56.77 Oct-2014 to Sept-2017
8 Central Sales Tax Act and Sales tax Act of Various States Vat /Cst Payable (BaddiH.P) 75.90 Jan-2015 to Mar-2016
9 Central Sales Tax Act and Sales tax Act of Various States Vat /Cst Payable (Haryana) 1.48 Apr-2017 to Jun-2017
10 Finance Act1944 Service Tax Payable 4.20 Sept-2016 to Jun-2017

(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 orsales tax or service tax or duty of customs or duty of excise or value added tax whichare outstanding as on 31st March2018 and which have not been deposited with theappropriate authorities on account of any dispute except the following cases ofIncome tax Excise duty & Service Tax which are pending at various courts as theredemand will be confirmed after order:-

S. No. Nature of the Statute Nature of Dues Amount (Rs. In Lacs) Period to which amount related Forum where dispute is pending
1 Finance Act1944 Service Tax 6.34 FY 2013-2014 Deputy Commissioner Derabassi
2 Finance Act1944 Service Tax 14.22 Apr-2014 to Mar-2016 Assistant Commissioner Central Excise & Service Tax Derabassi
3 Central Excise act1944 Excise Duty 5859.97 FY 2012-2013 Punjab & Haryana High Court
4 Central Excise act1944 Rebate Claim 875.95 FY 2012-2013 Commissioner Chandigarh
5 Income Tax Act 1961 Income Tax 127.60 F.Y 2008-2009 (AY 2009-2010 Deputy Commissioner of Income Tax Central Circle -I Chandigarh
6 Income Tax Act 1961 Income Tax 145.40 F.Y 2010-2011 (AY 2011- 2012) Hon'ble Punjab and Haryana High Court
7 Income Tax Act 1961 Income Tax 173.81 F.Y 2004-2005 (AY 2005-2006 Deputy Commissioner of Income Tax Central Circle -I Chandigarh

(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 has been raised by way of initial public offer or further publicoffer (including debt instruments) during the year the requirement of paragraph 3(ix) isnot applicable and further we report that the no fresh term loans has been raised by thecompany during the year 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 duringthe year . Accordinglyprovisions 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(36) 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. Accordinglythe provisions of clause 3(xvi) of the order are notapplicable to the company.

Chandigarh FOR V K JINDAL & ASSOCIATES.
Dated: 29th May 2018 CHARTERED ACCOUNTANTS
Firm Registration No. 005244N
Sd/-
(Vijay Jindal)
Partner
Membership No: 084128
Name: M/s. V.K. Jindal & Associates.
Chartered Accountants
Address: Plot No 5 Sector- 1 Industrial Area Parwanoo