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Parenteral Drugs (India) Ltd.

BSE: 524689 Sector: Health care
NSE: PDPL ISIN Code: INE904D01019
BSE 00:00 | 24 Jun 4.24 0.20
(4.95%)
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4.23

HIGH

4.24

LOW

4.20

NSE 00:00 | 24 Jun 3.90 0.15
(4.00%)
OPEN

3.90

HIGH

3.90

LOW

3.90

OPEN 4.23
PREVIOUS CLOSE 4.04
VOLUME 9472
52-Week high 5.87
52-Week low 2.51
P/E
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.23
CLOSE 4.04
VOLUME 9472
52-Week high 5.87
52-Week low 2.51
P/E
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 PARENTERALDRUGS (INDIA) LIMITED ("the Company") which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

2. 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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the loss and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto 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 mostsignificance 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 awhole and in forming our opinion thereon and we do not provide a separate opinion onthese 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 otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained 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 materialmisstatement of this other information we are required to report that fact. We havenothing 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand statement of changes in equity of the Company in accordance with the accountingprinciples 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 inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

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

8. 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 there under.

9. 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.

10. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sBoard of Directors as well as evaluating the overall presentation of the Standalone IndAS financial statements.

11. We believe that the audit evidence we have obtained is sufficient and appropriateto 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 thematters 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 ourknowledge 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

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

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

e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial control over financialstatement of the Company and the operating effectiveness of such controls refer to ourseparate Report in"Annexure B".

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 as amended 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 litigations on its financialposition in its Standalone Ind AS financial statements Refer Note 29 relating toContingent Liabilities and Commitments;

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

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

Annexure A to the Independent Auditor's Report

The Annexure referred to in our independent Auditor's Report to the members of theCompany on the Statements for the year ended March 31 2021 we report that :

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

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion thisperiodically of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) According to information and explanations given by the management the title deed ofimmovable 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 atits location has been physically verified by the management at intervals during thefinancial year and the frequency of verification is considered reasonable.

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand 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 Companyhas maintained proper records of inventory. The discrepancies noticed on physicalverification 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 theregister maintained under section 189 of the Companies Act 2013 ("the Act").

(iv) During the year company has not granted loan to corporate covered in the registermaintained under section 185 and 186 of the act.

(v) The Company has not accepted deposits within the meaning of sections 73 to 76 ofthe Companies Act 2013 and the rules framed there under. Hence clause 3(v) of the Orderis 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 timeProvision regarding maintenance of cost records and cost audit is not applicable to thecompany and according to the information and explanations given to us we are of theopinion that prima facie the specified accounts and records have been made andmaintained.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax service tax duty of customs GST cess and other material statutory dues havenot been regularly deposited during the year by the Company with the appropriateauthorities.

According to the information and explanation given to us no undisputed amounts payablein respect of provident fund income tax sales tax service tax duty of customs GSTcess and other material statutory dues were in arrears as at 31 March 2021 for a period ofmore than six months from the date of they became payable except as under:-

S. No Particular

Amount ( ` In Lacs)

1 Excise Duty

258.36

2 Professional Tax

7.79

3 ESIC

74.57

4 Provident Fund

457.47

5 TDS Payable

27.15

6 Sales Tax/GST

35.95

(b) As at March 31 2021 according to the records of the Company and the informationand 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 pendingadjudication Show cause notice issued by Excise department of Rs. 1849.13 lacs which arequashed by Hon'ble High Court of Indore department has preferred an appeal in the SupremeCourt which is pending Income tax demands of Rs. 10876.87 lacs raised but not admittedand rectification/appeal is pending. Demands of sales tax of Rs. 97.90 lacs for whichcompany has filed appeal before Deputy Commissioner (Appeal). One demand under DPCO Act ofRs. 19.31 lacs for which the Company has filed writ petition in the High Court of M.P. anddemand is stayed by H'ble High Court. Three months demand of Electricity board (MPPKVVCL)for Rs. 24.65 lacs not paid due to surrender of connection for which case is filed withH'ble High Court of M.P. One demand of Electricity board (MPPKVVCL) for Rs. 80.97 lacs forwhich the Company has filed writ petition in the High Court of M.P. and demand is stayedby the H'ble High Court.

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

Banks Name

Amount of default as on 31 March 2021

1. State Bank of India

813.38 Crs.

(721.45 Crs)

2. Punjab National Bank

227.75 Crs.

(194.25 Crs)

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

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

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the company has neither provided & not paidthe managerial remuneration during the financial year 2020-21 which is requisite undersection 197 read with schedule V of the Act.

(xii) In our opinion the company is not a Nidhi company; therefore the provision ofclause 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 ourexamination of the record of the company transaction with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statement as required by the applicableInd AS.

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

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

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

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

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 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 statement ofParenteral Drugs (India) Limited ("the Company") as of March 31 2021 inconjunction with our audit of the Standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial statement criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial statementissued by the Institute of Chartered Accountants of India.

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors the accuracyand completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial statement based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial statement(the "Guidance Note") and the Standards on Auditing as specified under section143 (10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accounts of India. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain responsible assurance about whether adequate internal financial controls overfinancial statement was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial statement and their operatingeffectiveness. Our audit of internal financial controls over financial statement includedobtaining an understanding of internal financial controls over financial statementassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial 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 toprovide a basis for our audit opinion on the internal financial controls systems overfinancial statement.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company's internal financial control over financial statement is a processdesigned to provide reasonable assurance regarding the reliability of financial statementand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial statement includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company' (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorities ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 Reporting

7. Because of the inherent limitations of internal financial controls over financialstatement including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial statementto future periods are subject to the risk that the internal financial control overfinancial statement may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial statement and such internal financial controlsover financial statement were operating effectively as at March 31 2021 based on theinternal control over financial statement criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial statement issued by the Institute of CharteredAccountants of India.

Place: Jaipur For Singhal Jain & Co.
Date: 30 June 2021 Chartered Accountants
Firm Regn. No. 013995C
SD/-
Kamal Jain
(Partner)
M. No. 406604
UDIN:21406604AAAAAL2295

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