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Parnax Lab Ltd.

BSE: 506128 Sector: Health care
NSE: N.A. ISIN Code: INE383L01019
BSE 15:31 | 24 Apr 32.40 -0.35
(-1.07%)
OPEN

32.35

HIGH

32.40

LOW

32.35

NSE 05:30 | 01 Jan Parnax Lab Ltd
OPEN 32.35
PREVIOUS CLOSE 32.75
VOLUME 998
52-Week high 66.00
52-Week low 29.70
P/E
Mkt Cap.(Rs cr) 28
Buy Price 32.30
Buy Qty 500.00
Sell Price 34.00
Sell Qty 250.00
OPEN 32.35
CLOSE 32.75
VOLUME 998
52-Week high 66.00
52-Week low 29.70
P/E
Mkt Cap.(Rs cr) 28
Buy Price 32.30
Buy Qty 500.00
Sell Price 34.00
Sell Qty 250.00

Parnax Lab Ltd. (PARNAXLAB) - Auditors Report

Company auditors report

To The Members of Parnax Lab Limited

Report on the Standalone Indian Accounting Standard (Ind AS) Financial Statements

1. We have audited the accompanying Standalone Ind AS financial statements of ParnaxLab Limited ("the Company") which comprises the Balance Sheet as at March31 2018 and the Statement of Profit and Loss (Including Other Comprehensive Income) theCash Flow Statement and the Statement of Change in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 and cashflows and change in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedin the Companies (Indian Accounting Standards) Rules 2015 (as amended) under section 133of the Act.

3. This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

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

5. 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.

6. We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are freefrom material misstatement.

7. 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 accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

8. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

9. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs of the Company as at 31st March 2018 and its profit its cash flows andthe change in equity for the year ended on that date.

Report on other Legal and Regulatory Requirements

10. 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" a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

11. 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 the Cash Flow Statement andStatement of Change in Equity dealt with by this Report are in agreement with the books ofaccount.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31stMarch 2018 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 ofSection 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 B".

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 has disclosed the impact of pending litigations on its financialposition in note no. 34 of its standalone Ind AS financial statements;

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.

For Ladha Singhal & Associates

Chartered Accountants

(Firm's Registration No. 120241W)

Sd/-

Vinod Ladha

(Partner)

M. No. 104151

Place: Mumbai

Dated: 30th May 2018

Annexure A to Independent Auditor's Report

Referred to as ‘Annexure A' in paragraph 9 of the Independent Auditors' Report ofeven date to the members of Parnax Lab Limited on the standalone Ind AS financialstatements for the year ended on 31st March 2018 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 program of verification which in our opinion is reasonable having regardto the size of the company and the nature of its assets. No discrepancies were noticed onsuch verification.

(c) According to the information and the explanation given to us and the recordsexamined by us we report that the title deeds of immovable properties are held in thename of the Company as at the Balance Sheet date.

(ii) As explained to us the inventories were physically verified during the year bythe management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) The Company has not granted any secured or unsecured loan to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 (‘the Act'). Accordingly paragraph 3(iii) ofthe Order is not applicable to the Company.

(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 regular in depositing withappropriate authorities applicable undisputed statutory dues including employee stateinsurance income tax sales tax service tax duty of custom duty of excise value addedtax cess.

(b) According to the information and explanation given to us no undisputed amountspayable in respect of employee state insurance income tax sales tax service tax dutyof custom duty of excise value added tax or cess were in arrears as at 31st March 2018for a period of more than six months from the date they became payable.

(c) According to the information and explanation given to us details of employee stateinsurance income tax sales tax service tax duty of custom duty of excise value addedtax or cess which have not been deposited as on 31st March 2018 on account of any disputeare as given below:

Name of Statute Nature of the dues Amount (in Lacs) Period for which the amount relates (Assessment Year) Forum where dispute is pending
Central Excise Act 1944 Excise Duty & Penalty 5.50 April 2003 to March 2005 Commissioner (Appeals)
Central Excise Act 1944 Excise Duty & Penalty 0.26 April 2003 to Jan. 2006 Commissioner (Appeals)
Central Excise Act 1944 Excise Duty & Penalty 0.43 Oct. 2001 to Oct. 2003 Custom Excise Service Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty & Penalty 0.82 June 2001 to Feb 2003 Commissioner (Appeals)
Central Excise Act 1944 Excise Duty & Penalty 56.16 Jan. 2005 to Dec. 2006 Commissioner (Appeals)

(viii) In our opinion and according to the information and explanation given to us thecompany has not defaulted in the repayment of loans or borrowings to banks or financialinstitutions. The Company does not have any borrowings from government and has not issuedany debentures.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loans during the year; hence clause3(ix) of the Companies (Auditors' Report) Order 2016 are not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) According to the information and explanation given 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 2016 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 standalone Ind AS financial statements in note no42 as required under Indian Accounting Standard (Ind AS) 24 Related Party Disclosurespecified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rule2014.

(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 to its directors; hence clause3(xv) of the Companies (Auditors' Report) Order 2016 is not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Ladha Singhal & Associates

Chartered Accountants

(Firm's Registration No. 120241W)

Sd/-

(Vinod Ladha)

Partner

M. No. 104151

Mumbai 30th May 2018.

Annexure B to Independent Auditor's Report

Referred to as ‘Annexure B' in paragraph 10(f) of the Independent Auditors' Reportof even date to the members of Parnax Lab Limited on the standalone Ind AS financialstatements for the year ended on 31st March 2018.

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

1. We have audited the internal financial controls over financial reporting of ParnaxLab Limited ("the Company") as on 31st March 2018 in conjunction with our auditof the standalone Ind AS financial statements of the Company for the year ended and as onthat 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 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

3. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 standalone Ind AS financial statements whether due to fraudor error.

5. 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

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting 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 standaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd AS financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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

8. In our opinion to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Ladha Singhal & Associates

Chartered Accountants

Firm's Registration No.: 120241W

Sd/-

(Vinod Ladha)

Partner

M. No.: 104151

Place : Mumbai

Dated : 30th May 2018