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Parenteral Drugs (India) Ltd.

BSE: 524689 Sector: Health care
NSE: PDPL ISIN Code: INE904D01019
BSE 00:00 | 09 Mar Parenteral Drugs (India) Ltd
NSE 05:30 | 01 Jan Parenteral Drugs (India) Ltd
OPEN 2.50
PREVIOUS CLOSE 2.50
VOLUME 2000
52-Week high 3.99
52-Week low 2.34
P/E
Mkt Cap.(Rs cr) 7
Buy Price 2.50
Buy Qty 2000.00
Sell Price 2.70
Sell Qty 2000.00
OPEN 2.50
CLOSE 2.50
VOLUME 2000
52-Week high 3.99
52-Week low 2.34
P/E
Mkt Cap.(Rs cr) 7
Buy Price 2.50
Buy Qty 2000.00
Sell Price 2.70
Sell Qty 2000.00

Parenteral Drugs (India) Ltd. (PDPL) - Auditors Report

Company auditors report

To

The Members of

PARENTERAL DRUGS (INDIA) LIMITED

MUMBAI

Report on the Standalone Financial Statements

1. We have audited the accompanying Standalone Financial Statements of PARENTERAL DRUGS (INDIA) LIMITED(the Company) which comprise the Balance Sheet as at March 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.

2. 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 Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended (Ind AS) and other accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 the loss and total comprehensive income changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. 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.

Key Audit Matters

4. Key audit matters are those matters that in our professional judgment were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

5. The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis Board's Report including Annexures to Board's Report Business Responsibility Report Corporate Governance and Shareholder's Information but does not include the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone Ind AS Financial Statements

6. 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 Ind AS financial statements that give a true and fair view of the financial position financial performance including other comprehensive income cash flows and statement of changes in equity of the Company in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with relevant rules issued there under.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting 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

7. Our responsibility is to express an opinion on these Standalone Ind AS financial statements based on our audit.

8. 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.

9. 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.

10. 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 auditor's 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 Company's 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company's Board of Directors as well as evaluating the overall presentation of the Standalone Ind AS financial statements.

11. 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.

Report on Other Legal and Regulatory Requirements

12. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by the Central Government of India in terms of section 143(11) of the Act we give in the ''Annexure A'' a statement on the matters specified in the paragraph 3 and 4 of the Order to the extent applicable.

13. As required by Section 143 (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 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.

c) The Balance Sheet the Statement of Profit and Loss including Other Comprehensive income the Cash Flow Statement and the Statement of changes in Equity dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid Standalone Ind AS financial statements comply with the Accounting Standards prescribed under Section 133 of the Act read with relevant Rule issued there under.

e) On the basis of the written representations received from the directors as on March 31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 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 control 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 Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 its Standalone Ind AS financial statements Refer Note 29 relating to Contingent Liabilities and Commitments;

ii. The Company has made provision as required under applicable law or accounting standard for material foreseeable losses if any

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

Place: IndoreFor Singhal Jain & Co.
Date: 30 May 2019Chartered Accountants
Firm Regn. No. 013995C
Kamal Jain
(Partner)
M. No. 406604

PARENTERAL DRUGS (INDIA) LIMITED

Annexure A to the Independent Auditor's Report

The Annexure referred to in our independent Auditor's Report to the members of the Company on the Statements for the year ended March 31 2019 we report that :

(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of Property Plant & Equipments.

b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion this periodically of physical verification is reasonable having regard to the size of the Company and the nature of its assets.

c) According to information and explanations given by the management the title deed of immovable properties included in fixed assets is held in the name of the company.

(ii) a) The Inventory of finished goods stores spares parts and raw material lying at its location has been physically verified by the management at intervals during the financial year and the frequency of verification is considered reasonable.

b) In our opinion and according to the information and explanations given to us 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) On the basis of our examination of records of inventory in our opinion the Company has maintained proper records of inventory. The discrepancies noticed on physical verification between the physical stocks and the books of records were not material.

(iii) During the year the Company has not granted loans to corporate covered in the register maintained under section 189 of the Companies Act 2013 (the Act). However the balance due from one of the group company amounting to Rs. 4.90 Crores is not prejudicial to the interest of the Company.

(iv) In our opinion and according to the information and explanation given to us the Company has not made any fresh loans investments guarantees and security during the year under review hence the provision of section 185 and 186 of the Act are not applicable. However the old guarantee given for one group company for Rs. 12.79 Crores is not prejudicial to the interest of the Company.

(v) The Company has not accepted deposits within the meaning of sections 73 to 76 of the Companies Act 2013 and the rules framed there under. Hence clause 3(v) of the Order is not applicable to the Company for the year under audit.

(vi) As per Section 148 (1) of the Companies Act 2013 as amended time to time provision regarding maintenance of cost records and cost audit is not applicable to the company and according to the information and explanations given to us we are of the opinion that prima facie the specified accounts and records have been made and maintained.

(vii) (a) According to the information and explanation given to us and on the basis of our examination of the records of the Company amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund income tax sales tax service tax duty of customs GST cess and other material statutory dues have not been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanation given to us no undisputed amounts payable in respect of provident fund income tax sales tax service tax duty of customs GST cess and other material statutory dues were in arrears as at 31 March 2019 for a period of more than six months from the date of they became payable except as under:-

Particular

Amount

(Rs. In Lacs)

1 Excise Duty

256.99

2 Professional Tax

1.64

3 ESIC

0.06

4 Provident Fund

179.60

5 Services Tax

15.47

6 Sales Tax

11.12

(b) As at March 31 2019 according to the records of the Company and the information and explanations given to us the disputed demands of excise duty to the tune of Rs. 274.40 lacs has been challenged by the Company and show cause notices are pending adjudication Show cause notice issued by Excise department of Rs. 1849.13 lacs which are quashed by Hon'ble High Court of Indore department has preferred an appeal in the Supreme Court which is pending Income tax demands of Rs. 10938.15 lacs raised but not admitted and rectification/appeal is pending. Demands of sales tax of Rs. 68.57 lacs for which company has filed appeal before Deputy Commissioner (Appeal). One demand under DPCO Act of Rs. 19.31 lacs for which the Company has filed writ petition in the High Court of M.P. and demand is stayed by H'ble High Court. Three months demand of Electricity board (MPPKVVCL) for Rs. 26.81 lacs not paid due to surrender of connection for which case is filed with H'ble High Court of M.P. One demand of Electricity board (MPPKVVCL) for Rs. 80.97 lacs for which the Company has filed writ petition in the High Court of M.P. and demand is stayed by the H'ble High Court.

(viii) On the basis of information and explanation given by the Management during the year the company has defaulted in repayment of dues to State Bank of India & Punjab National Bank .Since all loan accounts have been classified as NPA from January 2016 and recalled by the banks the details of default amount is as under .

st

Banks Name

Amount of default as on 31

March 2019

1. State Bank of India

640.36Crs.

(330.71Crs.)

2.Punjab National Bank

166.59Crs.

(87.13 Crs.)

(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instrument) and term loan during the year. Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given by management we report that no fraud by the company or no fraud on the company by the officer and employees of the company has been noticed or reported during the year.

(xi) According to the information and explanations given to us and based on our examination of the records of the company the company has neither provided & not paid the managerial remuneration during the financial year 2018-19 which is requisite under section 197 read with schedule V of the Act.

(xii) (i) In our opinion the company is not a Nidhi company; therefore the provision of clause 3(xii) of the order is not applicable to the company and hence not commented upon.

(xiii) According to the information and explanation given to us and based on our examination of the record of the company transaction with the related parties are in compliance with section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statement as required by the applicable Ind AS.

(xiv) According to the information & explanation given to us and on an overall examination of the balance sheet the company has not made any preferential allotment or private placement of shares or fully or partly convertible debenture during the year under review and hence reporting requirement under clause 3(xiv) are not applicable to the company and not commented upon.

(xv) According to the information and explanation given to us and based on our examination of the records of the company the company has not entered into non cash transaction with directors or persons connected with him. Accordingly paragraph 3(xv) of the order is not applicable.

(xvi) The Company is not required to be registered under section 45 IA of the Reserve Bank of India Act1934 and accordingly the provision of clause 3(xvi) of the order are not applicable to the company.

Place: IndoreFor Singhal Jain & Co.
Date: 30 May 2019Chartered Accountants
Firm Regn. No. 013995C
Kamal Jain
(Partner)
M. No. 406604

PARENTERAL DRUGS (INDIA) LIMITED

Annexure B to the Independent Auditor's Report of even date on the Financial Statements of Parenteral Drugs (India) Limited

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Companies Act 2013 (the Act)To The Members of Parenteral Drugs (India) Limited

1. We have audited the internal financial controls over financial reporting of Parenteral Drugs (India) Limited (the Company) as of March 31 2019 in conjunction with our audit of the Standalone financial statements of the Company for the year ended 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.

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 the Company's 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 Companies Act 2013.

Auditor's 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 on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing as specified under section 143 (10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accounts of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain responsible 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 auditor's judgment including the assessment of the risks of material misstatement of the 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 internal financial controls systems 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 financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorities 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

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 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 March 31 2019 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.

Place: IndoreFor Singhal Jain & Co.
Date: 30 May 2019Chartered Accountants
Firm Regn. No. 013995C
Kamal Jain
(Partner)
M. No. 406604