parabolic drugs 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. Parabolic Drugs Limited ("the company") which comprises the Balance sheet as at 31st March 2018 and the Statement of Profit & Loss (including other Comprehensive Income), the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information (herein refer to as "standalone financial statements").

Managements Responsibility for the Financial Statements

The Companys 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 financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rule, 2015. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

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 thereunder.

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.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the 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 accounting policies used and the reasonableness of the accounting estimates made by Companys Directors, as well as evaluating the overall presentation of the financial statements.

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.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, subject to Note 25(1) of the standalone financial statements regarding confirmation of debit or credit balances (including sundry parties) on whatsoever account, the aforesaid standalone financial statements read with note 25 forming part of financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, including ;

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

b) In the case of Statement of Profit & Loss including other Comprehensive Income, of 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 (Auditors Report) Order, 2016 ("the order") , issued by the Central Government of India in terms of sub-section 11 of section 143 of the Act, we enclose in the Annexure "A" a statement on the matters specified in 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 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 appears from our examination of those books.

c) The Balance Sheet and the Statement of Profit & Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015.

e) On the basis of written representations received from the Directors, as on 31st March 2018 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2018 from being appointed as a Director in terms of Section 164(2) of the Act.

f) With respect to adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure B: and

g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 litigation on its financial position in the standalone financial statements;

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

iii. There has been no delay in transferring amounts, required to be transferred, to the 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 records showing 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 physical verification of its fixed assets in phased manner, which in our opinion is reasonable having size of the company and nature of its business. As confirmed by the management, physical verification of the fixed assets has not been carried out by the management as on 31st March,2018 and hence the existence of all the fixed assets as appearing in the Financial Statements cannot be confirmed.

(c) According to the information & explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties as disclosed in Note-9 to theses financial statements, are generally held in the name of the company. However we have not verified the title deeds for immovable properties during the year.

(ii) According to the information & explanations given to us, the inventories comprises of raw material, work in progress, material at shop floor , semi-finished goods and finished goods total valuing Rs 1588.34 Lacs as on 31st March 2018 . Further the physical verification of inventories has been conducted by the management as on 31st March,2018 as per detail submitted to us. It is further confirmed by the management that no material discrepancies were noticed on physical verification.

(iii) Since the company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under 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, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to 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 of Sections 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 Central Government under section 148(1) of the Companies Act 2013. According to the information and explanations given to us, the company has maintained proper records as prescribed by central government However we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. Further as confirmed by the management, the Cost Audit Report for the FY 2016-17 has not been submitted by the Cost Auditor .

(vii) (a) According to information and explanations given to us and the records of the company examined by us , in our opinion, the company is regular in depositing undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities . There are no statutory dues outstanding as on 31st March,2018 for a period exceeding six months from the date they become 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 Act,1948	ESI Payable-Derabassi	35.31	Feb-2015 to Sept-2017
2 Employees Provident Funds & Miscellaneous Provisions Act,1952	PF Payable-Derabsssi	195.93	June-2014 to Sept-2017
3 Employee State Insurance Act,1948	ESI Payable-Panchkula	1.80	Apr-2015 to Sept-2017
4 Employees Provident Funds & Miscellaneous Provisions Act,1952	PF Payable-Panchkula	7.78	July-2014 to Sept-2017
5 Employee State Insurance Act,1948	ESI Payable-Contractor (Derabassi)	5.00	Feb-2014 to Sept-2017
6 Labour Welfare Fund Act,1972	Staff Welfare Fund Payable	1.57	Feb-2015 to Sept-2017
7 Income Tax Act,1961	TDS Payable	56.77	Oct-2014 to Sept-2017
8 Central Sales Tax Act and Sales tax Act of Various States	Vat /Cst Payable (Baddi,H.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 Act,1944	Service Tax Payable	4.20	Sept-2016 to Jun-2017

(b) According to the information and explanations given to us, and the records of the company examined by us , in our opinion , there are no material dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax , which are outstanding as on 31st March,2018 and which have not been deposited with the appropriate authorities on account of any dispute except the following cases of Income tax ,Excise duty & Service Tax which are pending at various courts as there demand 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 Act,1944	Service Tax	6.34	FY 2013-2014	Deputy Commissioner Derabassi
2 Finance Act,1944	Service Tax	14.22	Apr-2014 to Mar-2016	Assistant Commissioner, Central Excise & Service Tax, Derabassi
3 Central Excise act,1944	Excise Duty	5859.97	FY 2012-2013	Punjab & Haryana High Court
4 Central Excise act,1944	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)	Honble 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 and as confirmed by management, the company has defaulted in repayment of dues to a financial institutions & banks as all the credit facilities from most of banks/financial institutions of the company have already been classified as NPA.

(ix) Since no money has been raised by way of initial public offer or further public offer (including debt instruments) during the year, the requirement of paragraph 3(ix) is not applicable and further we report that the no fresh term loans has been raised by the company during the year under report.

(x) During the course of examination of of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to information & explanation given to us, we have neither come across any instance of fraud by the company or on the Company by its officers or employees noticed or reported 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 examination of records of the company , the company has not paid any managerial remuneration during the year . Accordingly,provisions of clause 3(xi) of the order are not applicable.

(xii) In our opinion and according to information and explanations given to us , the company is not a Nidhi Company and Nidhi Rules,2014 are not applicable to it. Accordingly,provisions of clause 3(xii) of the order are not applicable.

(xiii) To the best of our knowledge and according to the information and explanations given to us, all transactions with related parties are in compliance with the provisions of sections 177 and 188 of the Act where applicable and the detail of such related party transactions have been disclosed in Note No 25(36) to the financial statements as required by the applicable Accounting Standards.

(xiv) According to information and explanations given to us and based on our examination of records of the company ,the company has not made any preferential allotment or 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 examination of records of the company ,the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3(xv) of the order are not applicable.

(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,the provisions of clause 3(xvi) of the order are not applicable 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