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Parnax Lab Ltd.

BSE: 506128 Sector: Health care
NSE: N.A. ISIN Code: INE383L01019
BSE 10:51 | 18 Jul 45.95 0.95
(2.11%)
OPEN

45.95

HIGH

45.95

LOW

45.95

NSE 05:30 | 01 Jan Parnax Lab Ltd
OPEN 45.95
PREVIOUS CLOSE 45.00
VOLUME 5
52-Week high 72.50
52-Week low 40.20
P/E
Mkt Cap.(Rs cr) 39
Buy Price 43.30
Buy Qty 25.00
Sell Price 45.95
Sell Qty 92.00
OPEN 45.95
CLOSE 45.00
VOLUME 5
52-Week high 72.50
52-Week low 40.20
P/E
Mkt Cap.(Rs cr) 39
Buy Price 43.30
Buy Qty 25.00
Sell Price 45.95
Sell Qty 92.00

Parnax Lab Ltd. (PARNAXLAB) - Auditors Report

Company auditors report

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 March2017 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.

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 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.

Opinion

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 2017 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 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder 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 31 March2017 taken on record by the Board of

Directors none of the directors is disqualified as on 31 March 2017 from beingappointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A".

g) 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.

iv) The Company has provided requisite disclosure in the standalone financialstatements as regards its holding as wellas dealing in Specified Bank Notes as defined inthe Notification S.O.3407(E) dated the 8 November 2016 of theMinistry of Finance duringthe period from 8th November 2016 to 30 December 2016. Based on audit procedure andrelying on the management representation we report that the disclosures are in accordancewith the books of accounts maintained by the Company (Refer Note No 35).

For Ladha Singhal & Associates

Chartered Accountants

Firm Registration No.: 120241W

Sd/-

(Vinod Ladha)

Partner

M. No.: 104151

Place : Mumbai

Dated : 30 May 2017

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 thestandalone financial statement for the year ended 31March 2017 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.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(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 discrepancies noticed on verification between the physical stocks and the bookrecords were not material.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loan aggregating to Rs. Nil (Rs. 62.85 Lacs) to its subsidiary companycovered in the register maintained under section 189 of the Companies Act 2013 (‘theAct'). The year end balance of the loan granted to its subsidiary company was Rs. Nil (Rs.62.85 Lacs).

(a) The terms and conditions of the grant of such loan is in our opinion prima facienot prejudicial to the interest of the Company after considering the purpose for whichloan has been granted.

(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

(c) There is no amount remaining outstanding as at the year end for more than 90 days.

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

(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 inarrears as at 31 March 2017 for aperiod of more than six months from the date they became payable.

(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 been depositedas on 31 March 2017 on account of any dispute are given below.

Name of Statute Nature of the Amount Period for which the Forum where dispute is dues(in Lacs) amount relates pending (Assessment Year)

Central Excise Act 1944 Excise Duty & Penalty 5.50 April 2003 to March 2005Commissioner (Appeals)

Central Excise Act 1944 Excise Duty & Penalty 0.26 April 2003 to Jan. 2006Commissioner (Appeals)

Central Excise Act 1944 Excise Duty & Penalty 0.43 Oct. 2001 to Oct. 2003 CustomExcise Service Tax Appellate Tribunal

Central Excise Act 1944 Excise Duty & Penalty 0.82 June 2001 to Feb 2003Commissioner (Appeals)

Central Excise Act 1944 Excise Duty & Penalty 56.16 Jan. 2005 to Dec. 2006Commissioner (Appeals) Income Tax Act 1961 Income Tax 48.38 2004-05 Commissioner(Appeals)

(viii) In our opinion and according to the information and explanation given to us thecompany has not defaulted in repayment of loans or borrowing to any financial institutionbank government. The Company did not have any outstanding debentures during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). The Company did not obtained any fresh termloan during the year.

(x) According to the information and explanation given to us no fraud by the companyor no fraud on the company by its officers or employees has been noticed or reportedduring the year.

(xi) According to the information and explanation give to us and based on ourexamination of the records of the Company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with the Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company; hence clause 3(xii) of the Companies (Auditors' Report)Order 2017 is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with the sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

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

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with the directors or the persons connected with him; hence clause 3(xv) ofthe Companies (Auditors' Report) Order 2017 is not applicable to the Company.

(xvi) In our opinion and according to the information and explanations given to ustheCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Ladha Singhal & Associates

Chartered Accountants

Firm Registration No.: 120241W

Sd/-

(Vinod Ladha)

Partner M. No.: 104151

Place : Mumbai

Dated :30 May 2017.

Annexure - A to the Independent Auditors' Report (Referred to in paragraph (f) under"Report on Other Legal and Regulatory Requirements" section of our report ofeven date)

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

We have audited the internal financial controls over financial reporting of ParnaxLab Limited ("the Company") as on 31st March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended and as onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("the Guidance Note").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 company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls over financial reporting. Those Standards and theGuidance Note require that we comply with the ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that 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 Reporting

Because 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For Ladha Singhal & Associates

Chartered Accountants

Firm Registration No.: 120241W

Sd/-

(Vinod Ladha) Partner

M. No.: 104151

Place : Mumbai

Dated : 30 May 2017