We have audited the attached Balance Sheet of M/s. Parabolic Drugs
Limited, Chandigarh as at March 31, 2010 and also the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) 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
(iii) The Balance Sheet , Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
Annexure to the Auditors Report
Annexure referred to in Paragraph-2 of the Auditors Report to the
Shareholders of M/s. Parabolic Drugs Limited, Chandigarh on the
accounts for the year ended March 31, 2010.
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
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 regard to the size of the Company and
nature of its business. In terms of such programme, during the year
ended March 31, 2010, physical verification of the fixed assets was
carried out by the management during the year and no material
discrepancy was noticed on such verification.
c) As confirmed by the management ,the substantial part of Fixed Assets
have not been disposed off during the year.
ii) a) According to the information & explanations given to us the
inventories have been physically verified during the year and at the
end of the year by the management. In our opinion frequency of such
verification is reasonable.
b) The procedure of physical verification of inventory followed by the
management is, in our opinion reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) Quantitative records have been maintained for Raw Materials &
Finished Goods produced. As confirmed by management no material
discrepancies were noticed on physical verification.
iii) a) The Company has not taken from/granted any (secured or
unsecured) loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
b) As Company has not taken from/granted loans apart from transactions
on current account para iii(b), iii(c), iii(d) of the order is not
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
v) a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered into the register required to be maintained
under that Section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered into the register in pursuance of Section 301 of
the Act and exceeding the value of Rs. 5 Lacs in respect of any party
during the year, have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion and according to information and explanation given
to us, the Company has not accepted deposits from the public as per
Companies (Acceptance of Deposits) Rule of 1975 and as per provisions
of Section 58A and 58AA of the Companies Act, 1956.
vii) In our opinion the Company has an Internal Audit System
commensurate with its size and nature of its business.
viii) The Company is maintaining cost records as prescribed by Central
Government under Section 209(1)(d) of the Companies Act 1956.
ix) a) According to information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees state insurance, income tax, sales tax,
wealth tax, Custom duty, Excise duty, cess and other material statutory
dues applicable to it.
b) According to the information and explanations given to us, there is
sum of Rs. 5.93 lacs outstanding for Excise duty, which have not been
deposited on account of dispute for which appeal is pending.
x) There are no accumulated losses of the Company at the end of the
year. The Company has not incurred cash losses during the year covered
by our audit and the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us and as confirmed by management, the Company has not
defaulted in repayment of dues to a financial institution, bank or
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
xv) According to information and explanations given to us the Company
has not given any guarantee for loans taken by others from banks or
xvi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company and as
confirmed by management, we report that the term loans were applied for
the purpose for which the loans were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the no funds raised on short- term basis have been used for
long-term investment. No long-term funds have been used to finance
xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
xix) No debentures have been issued during the year by the Company.
xx) No money has been raised by public issue during the year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For S.K.Bansal &Co.,