PARENTERAL DRUGS (INDIA) LIMITED
ANNUAL REPORT 2011-2012
The Members of
M/s. PARENTERAL DRUGS (INDIA) LIMITED
1. We have audited the attached Balance Sheet of Parenteral Drugs (India)
Limited as at March 31, 2012 and the related Profit and Loss Account and
the Cash Flow Statement for the year ended on that date, which we have
signed under reference to this report. These financial statements are the
responsibility of the Company`s Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. 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 our opinion.
3. As required by the Companies (Auditors` Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 of India (the Act) and on the basis of such checks as
we considered appropriate and according to the information and explanation
given to us, we set out in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that;
a) We have 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 accounts as required by law have been
kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet, Profit and Loss account and Cash Flow
Statement dealt with by this report comply with the accounting standards
referred to in Section 211(3C) of the Act;
e) On the basis of written representation received from the directors as on
March 31, 2012 and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on March 31, 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act;
f) In our opinion and to the best of our information and according to the
explanations given to us, the said Accounts together with the notes
attached thereto given in the prescribed manner the information required by
the Act and give a true and fair view in conformity with the accounting
principles generally accepted in India;
(i) In so far as it relates to Balance Sheet, of the state of affairs of
the Company as at March 31, 2012;
(ii) In so far as it relates to the Profit and Loss Account, of the loss
for the year ended on that date.
(iii) In so far as it relates to the Cash Flow Statement, of the cash flows
of the Company for the year ended on that date.
Place: Indore For T.N. Unni & Co.
Date : 30th May, 2012 Chartered Accountants
Firm Regn No. 004890C
ANNEXURE TO AUDITORS` REPORT
[Referred to in paragraph 3 of the Auditors` Report of even date to the
Members of Parenteral Drugs (India) Limited on the accounts for the year
ended March 31, 2012]
a) The Company is maintaining proper records to show full particulars
including quantitative details and situation of fixed assets.
b) The Fixed assets of the Company have been physically verified by the
management at reasonable intervals. No material discrepancies were noticed
on such verification.
c) In our opinion, and according to the information and explanations given
to us, the Company has not disposed off a substantial part of fixed assets
during the year.
a) The stock of finished goods, stores, spare parts and raw material lying
at its location have been physically verified by the management at
intervals during the financial year and the frequency of verification is
b) In our opinion and according to the information and explanations given
to us, the procedures of physical verification of inventory followed by the
management are reasonable and 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 Company has maintained proper records of inventory. The discrepancies
noticed on physical verification between the physical stocks and the books
of records were not material.
a) The Company has not granted any loans, secured or unsecured to
companies, firms and other parties covered in the Register maintained under
Section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loans from 8 (eight) companies, firms
and other parties covered in the Register maintained under Section 301 of
the Companies Act, 1956. The maximum amount involved during the year was
Rs. 50.07 lacs and the year end balance of such loans aggregated to
c) The rate of interest and other terms and conditions of unsecured loan
taken by the company, are prima facie not prejudicial to the interest of
d) Payment of the principal amount and interest are also regular during the
4. In our opinion there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5.(a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to be
entered into the Register maintained under Section 301 of Act, have been so
b) In our opinion, and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of Act, and exceeding
the value of five lacs rupees in respect of any party during the year have
been made at prices which are reasonable having regard to the market prices
prevailing at the relevant time.
6. In our opinion and according to the information and explanations given
to us, the Company has not accepted deposits from the public, and the
provisions of Section 58A, 58AA or any other relevant provisions of the Act
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits are not attracted in case of borrowings made by the Company. No
order under the aforesaid sections has been passed by the Company Law Board
on the Company.
7. The Company has appointed a firm of Chartered Accountants to carry out
the internal audit, and the scope of audit is commensurate with its size
and nature of business.
8. Maintenance and cost audit of cost records has been prescribed for the
products of the company by the Central Government, under Section 209(1) (d)
of the Companies Act, 1956, and in our opinion prima facie, all cost
records are being maintained by the Company.
9.(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in our
opinion, the undisputed statutory dues in respect of provident fund,
income-tax, sales tax, wealth tax, service tax, customs duty, excise duty,
cess and other material dues as applicable, have been regularly deposited
by the Company during the year with the appropriate authorities.
(b) As at March 31, 2012 according to the records of the Company and the
information and explanations given to us, the disputed demand of excise
duty to the tune of Rs. 230.20 lacs has been challenged by the Company and
show cause notices are pending for adjudication, disputed demand of CST to
the tune of Rs. 255.94 lacs has been challenged by the Company and appeal
filed with DC (Appeal). Income tax demand of Rs. 12.83 lacs raised but not
admitted and rectification is pending.
10. The Company does not have accumulated losses as at March 31, 2012 but
has incurred cash losses of Rs. 3035.73 lacs during the financial year
ended on that date.
11. On the basis of information and explanations given by the Management
and in our opinion, the Company has repaid all the loan installments.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, considering the nature of activities carried on by the
Company during the year, the provisions of any special statute applicable
to chit fund/nidhi/mutual benefit fund/societies are not applicable to the
14. The Company is not dealing or trading in Shares, securities, debentures
and other investments and the investment made by the Company in shares and
other securities has been held in its own name in respect of which the
Company has maintained adequate records.
15. The Company has assumed the Corporate Guarantee for loans taken by its
subsidiary companies Goa Formulations Limited, Parenteral Surgicals Limited
and Parentech Healthcare Limited and has taken counter guarantee. The terms
and condition of Corporate Guarantee are not prejudicial to the interest of
16. In our opinion and according to the information and explanations given
to us the term loans taken by the Company were applied for the purpose for
which the loans were obtained.
17. Based on the information and explanations given to us and on
examination of the books of the Company, in our opinion the funds raised on
a short-term basis have not been used for long-term investment .
18. The Company has not made any preferential allotment of shares during
19. No debentures have been issued by the Company during the year.
20. During the year, the Company has not raised money by way of public
21. According to the information and explanations given to us and the
examination of the records we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor have
we been informed of any such case by the Management.
Place: Indore For T.N. Unni & Co.
Date : 30th May, 2012 Chartered Accountants
Firm Regn No. 004890C