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Auditor Report of Caplin Point Laboratories Ltd.
Mar 31, 2025
We have audited the accompanying Standalone Financial Statements of
Caplin Point Laboratories Limited (âthe Companyâ), which comprise the
Standalone Balance Sheet as at March 31, 2025, Standalone Statement
of Profit and Loss (including Other Comprehensive Income), Standalone
Statement of Changes in Equity and the Statement of Cash Flows for the year
then ended, and notes to the Standalone Financial Statements, including a
summary of material accounting policies and other explanatory information
(hereinafter referred to as âthe Standalone Financial Statementsâ).
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone Financial Statements
give the information required by the Companies Act, 2013, as amended,
(âthe Actâ) in the manner so required and give a true and fair view in
conformity with accounting principles generally accepted in India
including the Indian Accounting Standards prescribed under section 133
of the Act read with Companies (Indian Accounting Standards) Rules,
2015, as amended (âInd ASâ) of the state of affairs of the Company as at
March 31, 2025, of its profit (including other comprehensive income), of
its changes in equity and of its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in
accordance with the Standards on Auditing (âSAsâ) specified under section
143(10) of the Act. Our responsibilities under those SAs are further
described in the Auditor''s Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India (âICAIâ) together with the ethical
requirements that are relevant to our audit of the Standalone Financial
Statements under the provisions of the Act and the Rules thereunder,
and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion on the Standalone Financial Statements.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement,
were of the most significance in our audit of the Standalone Financial
Statements of the financial year ended March 31, 2025. These matters
were addressed in the context of our audit of the Standalone Financial
Statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
We have determined the following matters as Key Audit Matters to be
communicated in our report:
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Key Audit Matter |
Auditorâs Response |
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Accuracy and completeness of disclosure of related (Refer Note No. 44 to the Standalone Financial Statements) |
Our audit approach include: ⢠We obtained an understanding, evaluated the design and tested operating effectiveness ⢠We obtained an understanding of the Company''s policies and procedures in respect of |
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Key Audit Matter |
Auditorâs Response |
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⢠We agreed the amounts disclosed with underlying documentation and read relevant ⢠We assessed management evaluation of compliance with the provisions of Section 177 ⢠We evaluated the disclosures through reading of statutory information, books and |
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The company carries significant inventory in both the (Refer Note No. 1B(g) & 7 to the Standalone Financial |
Our audit approach include: ⢠We have assessed the carrying value of inventories, including costing and provisions ⢠The existence of inventories has been tested through our attendance at year-end ⢠We assessed the appropriateness of the determination of inventory cost by assessing ⢠We assessed whether inventory is recognised at the lower of cost or net realisable ⢠We assessed whether the provisions for obsolescence calculated by the Company |
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As per the principles of Revenue recognition set out in the (Refer Note No. 1B(n), 25 to the Standalone Financial |
Our audit approach includes: ⢠Testing the design and operating effectiveness of the internal controls associated ⢠Analysing contracts with customers from selected samples. ⢠Analysing invoices with customers from selected samples. ⢠Testing of the approval mechanism, access and change controls associated with the ⢠Reviewing the report of Internal Auditors. ⢠Performance of analytical procedures for reasonableness of the estimates. |
Other Information
The Company''s Board of Directors is responsible for the preparation of
the other information. The other information comprises the information
included in the Company''s Annual Report but does not include the
Standalone Financial Statements, Consolidated Financial Statements
and our auditor''s report thereon.
Our opinion on the Standalone Financial Statements does not cover
the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our
responsibility is to read the other information and in doing so, consider
whether other information is materially inconsistent with Standalone
Financial Statements, or our knowledge obtained during the course of
our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report
the fact. We have nothing to report in this regard.
Managementâs Responsibilities for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in section 134(5) of 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, total comprehensive income,
changes in equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Ind AS
specified under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended. 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 Standalone Financial Statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the Standalone Financial Statements, management is
responsible for assessing the Company''s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless Board of Directors
either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s
financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial
Statements
Our objectives are to obtain reasonable assurance about whether the
Standalone Financial Statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor''s
report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these
Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the
Standalone Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Company
has adequate internal financial controls system with reference
to Standalone Financial Statements in place and the operating
effectiveness of such controls.
(c) Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
(d) Conclude on the appropriateness of management''s use of the going
concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company''s
ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor''s
report to the related disclosures in the Standalone Financial
Statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor''s report. However, future events or
conditions may cause the Company to cease to continue as a going
concern.
(e) Evaluate the overall presentation, structure and content of the
Standalone Financial Statements, including the disclosures, and
whether the Standalone Financial Statements represent the
underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatement in the Standalone Financial
Statements that, individually or in aggregate, makes it probable that
the economic decisions of a reasonably knowledgeable user of the
Standalone Financial Statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope
of our audit work and in evaluating the results of the work; and (ii) to
evaluate the effect of any identified misstatements in the Standalone
Financial Statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the
Standalone Financial Statements of the financial year ended March 31,
2025 and are therefore Key Audit Matters. We describe these matters in
our auditor''s reports unless law or regulations precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe
Orderâ), issued by the Central Government of India in terms of sub¬
section (11) of section 143 of the Act, we give in the âAnnexure Aâ
a statement on the matters specified in paragraphs 3 and 4 of the
Order.
2. As required by Section 143(3) of the Act, we report to the extent
applicable 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 of the aforesaid Standalone Financial
Statements.
(b) In our opinion, proper books of account as required by law relating
to preparation of the aforesaid Standalone Financial Statements
have been kept by the Company so far as it appears from our
examination of those books except for the matters stated in
the paragraph 3(f) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
(c) The standalone balance sheet, the standalone statement of profit
and loss (including other comprehensive income), the standalone
statement of cash flow and the standalone statement of changes
in equity dealt with by this report are in agreement with the books
of accounts.
(d) In our opinion, the aforesaid Standalone Financial Statements
comply with the Accounting Standards specified under Section
133 of the Act, read with the Companies (Indian Accounting
Standard) Rules, 2015, as amended.
(e) On the basis of the written representations received from the
directors as on March 31, 2025 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,
2025 from being appointed as a director in terms of Section 164
(2) of the Act.
(f) The modifications relating to the maintenance of accounts
and other matters connected therewith are as stated in the
paragraph 2(b) above on reporting under section 143(3)(b)
of the Act and paragraph 3(f) below on reporting under Rule
11(g).
(g) With respect to the adequacy of the internal financial controls with
reference to Standalone Financial Statements of the Company
and the operating effectiveness of such controls, refer to our
separate Report in âAnnexure Bâ to this report.
(h) In our opinion, the managerial remuneration for the year ended
March 31, 2025 has been paid / provided by the Company to its
directors in accordance with the provisions of section 197 read
with Schedule V to the Act;
3. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion and to the
best of our information and according to the explanations given
to us:
(a) The Company has disclosed the impact of pending litigations
on its financial position in its Standalone Financial Statements.
Refer Note No. 38 to the Standalone Financial Statements.
(b) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(c) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(d) (i) The Management has represented that, to the best of
its knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by
the Company to or in any other person(s) or entity(ies),
including foreign entities (âIntermediariesâ), with the
understanding, whether recorded in writing or otherwise,
that the Intermediary shall, directly or indirectly lend or
invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (âUltimate
Beneficiariesâ) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.
(ii) The Management has represented, that, to the best of its
knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by
the Company from any person or entity, including foreign
entity (âFunding Partiesâ), with the understanding, whether
recorded in writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf
of the Funding Party (âUltimate Beneficiariesâ) or provide
any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;
(iii) Based on the audit procedures performed that have
been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has
caused us to believe that the representations under sub¬
clause (i) and (ii), contain any material misstatement.
(e) According to the information and explanations given to us, the
final dividend paid by the Company during the year in respect of
the same declared for the previous year is in accordance with
Section 123 of the Act to the extent it applies to payment of
dividend.
The interim dividend declared and paid by the Company during
the year and until the date of this audit report is in accordance
with Section 123 of the Act.
(f) Based on our examination which included test checks, except
for the instances mentioned below, the Company has used
accounting softwares for maintaining its books of account,
which have a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant
transactions recorded in the respective softwares:
The feature of recording audit trail (edit log) facility was not
enabled at the database level to log any direct data changes
for the accounting softwares used for maintaining the books of
account relating to payroll and the accounting software used for
maintaining ledgers.
Further, the audit trail (edit log) facility was enabled and operated
throughout the year for the respective accounting softwares and
we did not come across any instance of the audit trail feature
being tampered with.
The audit trail has been preserved by the Company as per the
statutory requirements for record retention.
For Brahmayya & Co.
Chartered Accountants
Firm Registration No: 000511S
N. Sri Krishna
Partner
Place: Chennai Membership No: 026575
Date: May 15, 2025 UDIN: 25026575BMLHFK5689
Mar 31, 2024
Caplin Point Laboratories Limited, Chennai
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Caplin Point Laboratories Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Financial Statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013, as amended, (âthe Actâ) in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India including the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended (âInd ASâ), of the state of affairs of the Company as at March 31, 2024, of its profit (including other comprehensive income), of its changes in equity and of its cash flows for the year ended on that date.
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (âSAsâ) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Standalone Financial Statements.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of the most significance in our audit of the Standalone Financial Statements of the financial year ended March 31, 2024. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the following matters as Key Audit Matters to be communicated in our report:
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Key Audit Matter |
Auditorâs Response |
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Accuracy and completeness of disclosure of related party transactions and compliance with the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (âSEBI (LODR) 2015''). (Refer Note No. 44 to the Standalone Financial Statements) |
Our audit approach include: ⢠We obtained an understanding, evaluated the design and tested operating effectiveness of the controls related to capturing of related party transactions and management''s process of ensuring all transactions and balances with related parties have been disclosed in the standalone Ind AS financial statements. ⢠We obtained an understanding of the Company''s policies and procedures in respect of evaluating arms-length pricing and approval process by the audit committee and the board of directors. ⢠We agreed the amounts disclosed with underlying documentation and read relevant agreements, evaluation of arms-length by management, on a sample basis, as part of our evaluation of the disclosure. |
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Key Audit Matter |
Auditorâs Response |
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⢠We assessed management evaluation of compliance with the provisions of Section 177 and Section 188 of the Companies Act 2013 and SEBI (LODR) 2015. ⢠We evaluated the disclosures through reading of statutory information, books and records and other documents obtained during the course of our audit. |
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The company carries significant inventory in both the Manufacturing as well as in trading divisions. The relevant Inventory management, including stock verification procedures at periodical intervals and valuation of inventories considering the specific life cycle of the products are underlying key factors in determining the appropriateness of value of inventories. As per the company''s accounting policies, inventories are measured at the lower of cost or net realizable value. Considering the volume and complexity of the inventory verification process and the associated valuation, inventories are considered as a key audit matter. (Refer Note No. 1B(g) & Note No. 7 to the Standalone Financial Statements). |
Our audit approach include: ⢠We have assessed the carrying value of inventories, including costing and provisions for obsolescence and net realisable value. ⢠The existence of inventories has been tested through our attendance at year-end inventory stocktakes. Observing physical inventories assisted with our valuation assessment as we were able to identify quality issues if any, and validate expiry dates of products. ⢠We assessed the appropriateness of the determination of inventory cost by assessing the accuracy of the standard costing used by the Company and assessing the recognition of variances from standard costs. ⢠We assessed whether inventory is recognised at the lower of cost or net realisable value at period end by comparing the inventory value measured at cost to audit evidence supporting net realisable value such as the current selling price of the products and achieved margins. ⢠We assessed whether the provisions for obsolescence calculated by the Company reflect known quality issues if any, and commercial considerations including product expiration, market demand, manufacturing plans, as well as their compliance with Ind AS 2 and consistent application from prior periods. |
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As per the principles of Revenue recognition set out in the Accounting Standards involves certain key judgments relating to the identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognised over a period. Additionally, the revenue accounting standard contains disclosures that involve collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. (Refer Note No. 1B(n) & Note No. 24 to the Standalone Financial Statements). |
Our audit approach includes: ⢠Testing the design and operating effectiveness of the internal controls associated with contracts with customers. ⢠Analysing contracts with customers from selected samples. ⢠Analysing invoices with customers from selected samples. ⢠Testing of the approval mechanism, access and change controls associated with the price. ⢠Reviewing the report of Internal Auditors. ⢠Performance of analytical procedures for reasonableness of the estimates. |
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Company''s Annual Report but does not include the Standalone Financial Statements, Consolidated Financial Statements and our auditor''s report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and in doing so, consider whether other information is materially inconsistent with Standalone
Financial Statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report the fact. We have nothing to report in this regard.
Managementâs Responsibilities for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under section 133 of the Act. 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 Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
(d) Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatement in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of the work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the financial year ended March 31, 2024 and are therefore Key Audit Matters. We describe these matters in our auditor''s reports unless law or regulations precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Attention is drawn to the fact that the Standalone Financial Statements of the Company for the year ended March 31, 2023 in accordance with Companies (Indian Accounting Standards) Rules, 2015, as amended was audited by M/s. CNGSN & Associates LLP, who issued an unmodified report, vide their report dated May 27, 2023.
Our opinion on the statement is not modified in respect of the above
matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, 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 best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Standalone Financial Statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Standalone Financial Statements have been kept by the Company so far as it appears from our examination of those books except for the matters stated in the paragraph 3(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of cash flow and the standalone statement of changes in equity dealt with by this report are in agreement with the books of accounts.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015, as amended.
(e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) The modifications relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2A(b)
above on reporting under section 143(3)(b) of the Act and paragraph 3(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ to this report.
3. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
(a) The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements. Refer Note No. 34 to the Standalone Financial Statements.
(b) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
(c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(d) (i) The Management has represented that, to the best of
its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign
entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(iii) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
(e) According to the information and explanations given to us, the final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with Section 123 of the Act.
(f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended, for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014, as amended, is applicable for the financial year ended March 31, 2024.
Based on our examination which included test checks, except for the instances mentioned below, the Company has used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective softwares:
The feature of recording audit trail (edit log) facility was not enabled at the database level to log any direct data changes for the accounting softwares used for maintaining the books of
account relating to payroll and the accounting software used for maintaining ledgers.
Further, the audit trail (edit log) facility was enabled and operated throughout the year for the respective accounting softwares and we did not come across any instance of the audit trail feature being tampered with.
4. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company
to its directors during the year is in accordance with the provision of section 197 of the Act. The remuneration paid to directors is not in excess of the limit laid down under section 197(16) which are required to be commented upon by us.
Chartered Accountants Firm Registration No: 000511S
Partner
Place: Chennai Membership No: 026575
Date: May 16, 2024 UDIN: 24026575BKCJTZ4829
Mar 31, 2023
Caplin Point Laboratories Limited, Chennai
Report on the Audit of the Standalone Ind AS Financial Statements Opinion
We have audited the accompanying standalone Ind AS financial statements of Caplin Point Laboratories Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,(âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its profit, total comprehensive income changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Basis of Qualified Opinion section, we have determined the matters described below to be the key audit matters to be communicated in our report.
|
S. No |
Key Audit Matter |
Auditorâs Response |
|
1 |
Accounting of recognition, measurement, presentation, and disclosures of revenues and other related balances in view of applicability of Ind AS 115 âRevenue from Contracts with Customersâ (Revenue Accounting Standard) The application of the revenue accounting standard involves certain key judgments relating to the identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognised over a period. Additionally, the revenue accounting standard contains disclosures that involve collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. |
Principal Audit Procedures We assessed the Company''s process to identify the impact of the revenue accounting standard. Our audit approach consisted of testing the design and operating effectiveness of the internal controls and substantive testing as follows: ⢠Evaluated the design of internal controls relating to the implementation of the revenue accounting standard. ⢠Selected a sample of continuing and new contracts, and tested the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving inquiry and observation, reperformance, and inspection of evidence in respect of the operation of these controls. |
|
S. No |
Key Audit Matter |
Auditorâs Response |
|
⢠Tested the relevant information technology systems'' access and change in management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the revenue accounting standard. ⢠Recognition of Export Incentives as per the terms of the Schemes have been evaluated. |
||
|
2 |
System environment and internal controls: Impact of change in the Accounting Sotware( TCS Ion to SAP ) on the Companyâs bookkeeping and control. The Company''s key financial accounting and reporting processes are highly dependent on the automated controls. The Company has a complex system environment, reflecting the different nature of the different operating activities. The Company has renewed its system landscape, with the Migration from TCS Ion to SAP during the year for better control and tracking. The implementation of new systems, together with the complex system environment introduce risks related to system access, change management and data transfer between the different systems, and we have accordingly designated this as a focus area in the audit. Management has mitigated this risk by means of manual controls. |
We assessed the company''s process to identify, assess, and respond to the risk of material misstatement considering the uncertainties and the impact of Migration from TCS ion to SAP on the company''s book keeping for the year under consideration. We have designed, planned, and performed the following audit procedures ⢠Testing the system implementations included both the testing of the controls surrounding implementation as well as testing the migration of income statement and balance sheet balances between legacy systems and the new system. ⢠Evaluating the impact on inventory management and cost allocation to inventory on account of change in the manner of computation and apportionment of overhead costs post such migration. ⢠Ascertaining the differences in the classification of Account Balances in the books and ensuring proper presentation in the Financial Statements of the Company. ⢠Verified the impact of the same on product Groups and subgroups, Product Price lists, supplier / customer master. ⢠Treatment of open invoices, Bills, purchase order and sale orders and other opening account balances have been evaluated. ⢠Our response to the risks related to the complex system environment includes both the test of IT and business process controls. We also performed sufficient tests of details as part of our audit. ⢠We also tested the company''s controls around system interfaces, and the transfer of data from one Software to another keeping in mind the key financial reporting controls. |
|
3 |
Verification and Valuation of Inventory in accordance to the financial statementsâ accounting principles on inventories - IND AS 2: The company has significant inventory balances in both the Manufacturing as well as trading segments. Inventory management, stocktaking routines and costing of inventories are underlying key factors in determining the value of inventories.According to the financial statements'' accounting principles inventories are measured at the lower of cost or net realizable value. Due to Size and complexity of the inventory valuation and Verification of inventories is considered as a key audit matter |
Our audit procedures related to valuation and verification of inventories included: ⢠Assessing the compliance of company''s accounting policies over inventory with applicable accounting standards. ⢠Assessing the inventory valuation processes and practices. On major locations we tested the effectiveness of the key controls ⢠Assessing functionality of the key IT systems of inventory management. ⢠Testing of controls over inventory management and accuracy of inventory amounts. ⢠Performing tests on selected inventory items to relevant components of valuation. ⢠Evaluate management''s instructions and procedures for recording and controlling the results of the entity''s physical inventory counting; ⢠Observe the performance of management''s count procedures ⢠Inspect the inventory; and perform test counts In addition, we assessed the appropriateness of the Company''s disclosures in respect of inventory valuation. |
Information other than the financial statements and Auditorâs Report thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the standalone financial statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under Section 133 of the Act. 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.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for explaining our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report.
⢠Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (the
âOrder'') issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure A, a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, based on our audit 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 purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The standalone financial statements 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 Ind AS specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015.
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financials controls over financial reporting of the company and the operating effectiveness of such controls, refer to a separate report in Annexure B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company''s internal financial controls over financial reporting; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 litigations on its financial position in the Standalone financial statements - refer note 34 to the financial statements;
ii. The Company does not have any long-term contracts including any Derivative Contracts for which there are material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2023;
iv. (i) The management has represented that, to the best of its
knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(iii) Based on audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) contain any material misstatement.
i) In our opinion and according to the information and explanations given to us, the final dividend paid by the company during the year in respect of the same declared for the previous year is in accordance with the Section 123 of the Act to the extent it applies to the payment of dividend. The interim dividend declared by the Company for the year until the date of this audit report is in accordance with section 123 of the Companies Act 2013 to the extent it applies to the declaration of dividend. However, the said dividend was not paid on the date of this audit report.
j) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of accounts using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the company with effect from April 1, 2023, and accordingly, reporting under rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
For M/S CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS Firm Registration No: 004915S/S200036
Partner
Place: Chennai Membership No: 018394
Date: 27/05/2023 UDIN: 23018394BGWVDH9351
Mar 31, 2018
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Caplin Point Laboratories Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 MarcRs.2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) and 143(11) 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Board of Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 of the state of affairs of the Company as at 31 MarcRs.2018, its profit (including other comprehensive income), its changes in equity and its cash flows for the year ended on that date.
a. In the case of the Balance Sheet, of the state of affairs of the Company as at MarcRs.31,2018;
b. In the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the year ended on that date and
d. In the case of the statement of changes in equity, of the changes in equity for the year ended on that date.
Report on other legal and regulatory requirements.
1. 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 it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act;
e. On the basis of the written representations received from the directors as on 31 MarcRs.2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 MarcRs.2018 from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the 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 âAnnexure Aâ.
g. With respect to the other matters to be included in the Auditorâs 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:
a. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 32 to the standalone Ind AS financial statements;
b. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts required to be transferred to investor education and protection fund by the company and
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure - A to the Independent Auditorsâ Report
In conjunction with our audit of the Financial Statements of the Company for the financial year ended MarcRs.31, 2018, we have audited the Internal Financial Controls over Financial Reporting of Caplin Point Laboratories Limited.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 MarcRs.2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
Referred to in paragrapRs.2 under âReport On Other Legal and Regulatory Requirementsâ section of our report to the members of Caplin Point Laboratories Limited of even date:
i) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
The Company has a regular programme of physical verification of its fixed assets, by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets were physically verified during the year and no material discrepancies were noticed on such verification.
The title deeds of immovable properties included in fixed assets are held in the name of the Company. In respect of immovable properties been taken on lease and disclosed as property, plant and equipment in the standalone Ind AS financial statements, the lease agreements are in the name of the Company.
ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The Company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.
iii) 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 Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company.
iv) The Company has not granted any loans or provided any security to the parties covered under section 185 and section 186 of the Act.
v) The Company has not accepted any deposits from the public within the meaning of the directives issued by the Reserve Bank of India, provisions of Section 73 to 76 of the Act, any other relevant provisions of the Act and the relevant rules framed thereunder. Accordingly, paragrapRs.3(v) of the Order is not applicable to the Company.
vi) The Company is maintaining Cost Records as required under Rule 3 of the Companies (Cost Records and Audit) Rules, 2014. However, as the Company is exporting in excess of 75 % their turnover, Cost Audit is not applicable. Hence, reporting under clause 3(VI) of the Order is not applicable. under Section 148 of the Act for any of the services rendered by the Company.
vii) a) The Company is regular in depositing undisputed statutory dues with appropriate authorities like Provident fund, Employeesâ State Insurance, Income-tax, Sales tax, Service tax, Goods and Services tax, duty of Customs, duty of Excise, Value added tax, Cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities.
There are no undisputed amounts payable in respect of Provident fund, Employeesâ State Insurance, Income-tax, Sales tax, Service tax, Goods and Services tax, duty of Customs, duty of Excise, Value added tax, Cess and other material statutory dues were in arrears as at 31 MarcRs.2018, for a period of more than six months from the date they became payable.
b) There are no dues of Income-tax or Sales tax or Service tax or Goods and Services tax or duty of Customs or duty of Excise or Value added tax which have not been deposited by the Company on account of disputes, except for the following:
|
S.No |
Name of the statute |
Nature of dues |
As At 31/3/2018 (Rs. In lakhs) |
As At 31/3/2017 (Rs.In lakhs) |
Forum where dispute is pending |
|
1. |
Income Tax Act, 1961 |
Income Tax |
192.44 |
339.59 |
High Court/Income Tax Appellate Tribunal/ CIT Appeals |
|
2. |
Central Excise Act, 1944 |
Excise Duty |
- |
4.54 |
CESTAT Tribunal/ Department of Revenue, New Delhi |
viii) The Company has not defaulted in the repayment of loans or borrowings to banks. The Company did not have any outstanding loans or borrowings from financial institutions or government and has not issued any debentures.
ix) The Company has not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, the provisions of Clause 3(ix) of the Order is not applicable to the Company
x) No material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit. In our opinion and according to the information and explanation given to us.
xi) The Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) The Company is not a Nidhi Company and hence, reporting under clause 3(xii) is not applicable.
xiii) All the transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable, and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragrapRs.3(xiv) of the Order is not applicable to the Company.
xv) The Company has not entered into non-cash transactions with its directors or persons connected with him. Accordingly, paragrapRs.3(xv) of the Order is not applicable to the Company.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragrapRs.3(xvi) of the Order is not applicable to the Company.
for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S/S200036
B. Ramakrishnan
Place : Chennai Partner
Date : May 28, 2018 Membership No: 201023
Mar 31, 2017
To
The Members
Caplin Point Laboratories Limited, Chennai Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Caplin Point Laboratories Limited (herein after referred to "the Company") which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the Financial Statements").
Management''s Responsibility for the Financial Statements
The Company''s 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 financial statements that give a true and fair view of the financial position, financial performance 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) Rules, 2014, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 there under.
We conducted our audit of financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosure in the financial statements. These procedures selected depend on the auditor''s 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 Company''s 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Board of Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, of the state of affairs of the Company as at 31st March, 2017, and it''s Profit, and its cash flows for the financial 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 subsection (11) of Section 143 of the Act, we give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order, 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 best of our knowledge and belief were necessary for the purpose 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, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained by the company.
d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended.
e. on the basis of written representation received from the Directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors of the Company is disqualified as on 31st March, 2017, from being appointed as a director in terms of section 164(2) of the Act;
f. with respect to the adequacy of the internal financial controls over the financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure-B. Our report expresses unmodified opinion on the adequacy and operating effectiveness of the company''s Internal Financial Controls Over Financials Reporting.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditor''s) 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 litigations on its financial statements - Refer Note 29 to the financial statements
ii) The Company did not have long term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management.
In terms of the information and explanations sought by us and given by the Company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
1. in respect of the company''s fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the period by the Management in accordance with a regular programme of verification by which, the physical verification of all the fixed assets were carried out at reasonable intervals. There is no material discrepancies noticed on such verification.
c) The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.
2. The inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
3. The company has not granted any loans, secured or unsecured to companies, firms, LLPs or other parties covered in the register maintained under section 189 of the Act and other the provision of clause 3 (iii) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the financial year under audit.
|
S.No |
Name of the statute |
Nature of dues |
As At 2016-2017 (H In lakhs) |
As At 2015-2016 (H In lakhs) |
Forum where dispute is pending |
|
1. |
Income Tax Act, 1961 |
Income Tax |
339.59 |
339.59 |
High Court / Income Tax Appellate Tribunal/ CIT Appeals |
|
2. |
Central Excise Act, 1944 |
Excise Duty |
4.54 |
4.54 |
CESTAT Tribunal/ Department of Revenue, New Delhi |
4. The company has not given loans, investments, guarantees and security and therefore the provision of clause 3 (iv) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year under audit.
5. The Company has not accepted deposits from public during the financial year and does not have any unclaimed deposits as at March 31, 2017 and therefore the provisions of clause 3 (v) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the financial year under audit.
6. The Company is maintaining Cost Records as required under Rule 3 of the Companies (Cost Records and Audit) Rules, 2014. However, as the Company is exporting in excess of 75 % their turnover, Cost Audit is not applicable. Hence, reporting under clause 3(VI) of the Order is not applicable.
7. a. The Company has been regular in depositing undisputed statutory dues with appropriate authorities, like Provident Fund, Employee''s State insurance, Income-tax, Sales-tax, Service tax, Customs Duty, Excise Duty, Value Added Tax, Cess, wherever applicable.
b. There are no dues of Income Tax, Provident Fund, ESI, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess which have not been deposited on account of any dispute, except the following:
8. The Company has not defaulted in the repayment of loans or borrowings to banks and financial institutions. The Company does not have any loans or borrowings from government and has not issued any debentures.
9. The Company has not raised moneys by way of initial public offer or further public offer and the provision of clause 3 (ix) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year under audit.
10. There are no fraud by the company or any fraud on the company by its officers or employees and hence the provision of clause 3 (x) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year under audit.
11. The company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. The company is not a Nidhi company and hence the provision of clause 3 (xii) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year under audit.
13. The Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Financial Statements as required by the applicable Accounting Standards.
14. The company has not made any preferential allotment of shares or private placement of shares or convertible debentures and hence the provision of clause 3 (xiv) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year under audit.
15. The company has not entered into any non-cash transactions with directors or persons connected with them and hence the provision of clause 3 (xv) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year under audit.
16. The company is not required to be registered under section 45-IA of Reserve Bank of India Act, 1934 and hence the provision of clause 3 (xvi) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year under audit.
Management''s Responsibility for Internal Financial Controls
In conjunction with our audit of the Financial Statements of the Company for the financial year ended March 31, 2017, we have audited the Internal Financial Controls over Financial Reporting of Caplin Point Laboratories Limited.
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
Explanatory paragraph
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Companies Act, 2013, the financial statements of the Company, which comprise the Balance Sheet as at March 31, 2017, and the related Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, and our report dated May 10, 2017 expressed an unqualified opinion.
for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S/S200036
B. Ramakrishnan
Place : Chennai Partner
Date : May 10, 2017 Membership No: 201023
Mar 31, 2016
We have audited the accompanying Financial Statements of Caplin Point
Laboratories Limited (herein after referred to as "the Company") which
comprise the Balance Sheet as at 31st March, 2016, the Statement of
Profit and Loss, the Cash Flow Statement for the 9 months period and
financial year then ended, and a summary of Significant Accounting
Policies and other explanatory information (hereinafter referred to as
"the Financial Statements").
Management''s Responsibility for the Financial Statements
The Company''s 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 financial statements that give a true and
fair view of the financial position, financial performance 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) Rules, 2014, as amended. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities; the
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and the
design, implementation and maintenance of 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 the ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosure in the financial statements. These
procedures selected depend on the auditor''s judgment, including the
assessment of the risk 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 Company''s 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Board of Directors,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, of the state of affairs of the Company as
at 31st March, 2016, its Profit, and its cash flows for the 9 months
period and financial 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 of the Act, we give in the Annexure-A a
statement on the matters specified in paragraphs 3 and 4 of the Order,
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 best of our knowledge and belief were necessary for the
purpose 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
relevant books of account maintained by the Company.
d. In our opinion, the aforesaid Financial Statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014, as applicable.
e. On the basis of written representation received from the Directors
as on 31st March, 2016 taken on record by the Board of Directors, none
of the Directors of the Company is disqualified as on 31st March, 2016,
from being appointed as a director in terms of section 164(2) of the
Act;
f. with respect to the adequacy of the Internal Financial Controls
over the Financial Reporting of the Company and the operating
effectiveness of such controls, refer to our separate report in
Annexure-B. Our report expresses an unmodified opinion on the adequacy
and operating effectiveness of the company''s Internal Financial
Controls over Financial Reporting.
g. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and
Auditor''s) 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 litigations on its
financial statements - Refer Note: 29 to the financial statements
ii) The Company did not have long term contracts including derivative
contracts for which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company,
(Referred to in paragraph 1 of Report on Other Legal and Regulatory
Requirements in our Independent Auditors'' Report of even date)
In terms of the information and explanations sought by us and given by
the Company and the books and records examined by us in the normal
course of audit and to the best of our knowledge and belief, we state
that:
1. in respect of the company''s fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the period by the
Management in accordance with a regular programme of verification by
which, the physical verification of all the fixed assets were carried
out at reasonable intervals. There is no material discrepancies
noticed on such verification.
c) The title deeds, comprising all the immovable properties of land and
buildings which are freehold, are held in the name of the Company as at
the balance sheet date
2. The inventories were physically verified during the period by the
Management at reasonable intervals and no material discrepancies were
noticed on physical verification.
3. The Company has not granted any loans, secured or unsecured to
companies, firms, LLPs or other parties covered in the register
maintained under section 189 of the Act and the provisions of clause 3
(iii) of the Companies (Auditor''s Report) Order, 2016 are not
applicable to the Company for the 9 months period and financial year
under audit.
4. The Company has not given loans, investments, guarantees and
security and therefore the provisions of clause 3 (iv) of the Companies
(Auditor''s Report) Order, 2016 are not applicable to the Company for
the 9 months period and financial year under audit.
5. The Company has not accepted deposits from public during the 9
months period and financial year and does not have any unclaimed
deposits as at March 31, 2016 and therefore the provisions of clause 3
(v) of the Companies (Auditor''s Report) Order, 2016 are not applicable
to the Company for the 9 months period and financial year under audit.
6. The Company is maintaining Cost Records as required under Rule 3 of
the Companies (Cost Records and Audit) Rules, 2014. However, as the
Company is exporting in excess of 75 % their turnover, Cost Audit is
not applicable. Hence, reporting under clause 3(VI) of the Order is not
applicable.
7. a. The Company has been regular in depositing undisputed statutory
dues with appropriate authorities, like Provident Fund, Employee''s
State insurance, Income-tax, Sales-tax, Service tax, Customs Duty,
Excise Duty, Value Added Tax, Cess, wherever applicable. There are no
undisputed Statutory outstanding dues as at 31st March, 2016 for a
period of more than six months from the date they become payable.
b. There are no dues of Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Value Added Tax, Cess which have not
been deposited on account of any dispute, except the following:
SL Name of the Nature of 2015-16 2014-15 Forum where
No statute dues (Rs.In
lakhs) (Rs. In
lakhs) dispute is pending
1 Income Tax
Act, Income Tax Income Tax
1961 339.59 269.33 Appellate Tribunal/
CIT Appeals
2 Central
Excise Excise
Duty CESTAT Tribunal/
Act, 1944 4.54 27.26 Department of
Revenue, New Delhi
8. The Company has not defaulted in the repayment of loans or
borrowings to banks and financial institutions. The Company does not
have any loans or borrowings from government and has not issued any
debentures.
9. The Company has not raised moneys by way of Initial Public Offer or
Further Public offer and hence the provisions of clause 3 (ix) of the
Companies (Auditor''s Report) Order, 2016 are not applicable to the
Company for 9 months period and the financial year under audit.
10. There are no fraud by the company or any fraud on the company by
its officers or employees and hence the provisions of clause 3 (x) of
the Companies (Auditor''s Report) Order, 2016 are not applicable to the
Company for the 9 months period and financial year under audit.
11. The Company has paid / provided Managerial Remuneration in
accordance with the requisite approvals mandated by the provisions of
Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi company and hence the provisions of
clause 3 (xii) of the Companies (Auditor''s Report) Order, 2016 are not
applicable to the Company for the 9 months period and financial year
under audit.
13. The Company is in compliance with Section 177 and 188 of the Act,
where applicable, for all transactions with the related parties and the
details of related party transactions have been disclosed in the
Financial Statements as required by the applicable Accounting
Standards.
14. The Company has not made any Preferential Allotment of shares or
Private Placement of shares or Convertible Debentures and hence the
provisions of clause 3 (xiv) of the Companies (Auditor''s Report) Order,
2016 are not applicable to the Company for the 9 months period and
financial year under audit.
15. The Company has not entered into any non-cash transactions with
directors or persons connected with them and hence the provisions of
clause 3 (xv) of the Companies (Auditor''s Report) Order, 2016 are not
applicable to the Company for the 9 months period and financial year
under audit.
16. The Company is not required to be registered under section 45-IA
of Reserve Bank of India Act, 1934 and hence the provisions of clause 3
(xvi) of the Companies (Auditor''s Report) Order, 2016 are not
applicable to the Company for the 9 months period and financial year
under audit.
for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S/S200036
B. Ramakrishnan
Place : Chennai Partner
Date : May 27, 2016 Membership No:201023
Jun 30, 2015
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of
Caplin Point Laboratories Limited., ("the Company") which comprise the
Balance Sheet as at June 30, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information ("the
Financial Statements).
Management's Responsibility for the Standalone Financial Statements
The Company's 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 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) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; the selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and the design, implementation and maintenance of 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 the ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosure in the financial statements. These
procedures selected depend on the auditor's judgment, including the
assessment of the risk 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 Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the expressing an opinion
on whether the company has in place an adequate internal financial
control system over financial reporting and the operating effectiveness
of such controls. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the
accounting estimates made by the Company's Board of Directors, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us 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, the aforesaid standalone 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, of the state of affairs of the Company as
at June 30, 2015, and its Profit, and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2015 ( the
Order), issued by the Central Government of India, in terms of sub Â
section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
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 best of our knowledge and belief were necessary for the
purpose 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
relevant books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014
e. On the basis of written representation received from the Directors
as on June 30, 2015 taken on record by the Board of Directors, none of
the directors of the Company is disqualified as on June 30, 2015, from
being appointed as a director in terms of section 164(2) of the Act;
f. 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 litigations on its
financial statement  refer note 29 to the financial Statements.
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
1. a. In our opinion and according to the information and
explanations given to us, the Company has maintained proper records
showing full particulars, including quantitative details and situation
of fixed assets.
b. As per the information and explanations provided to us, the Company
has physically verified the fixed assets during this year and there is
no material discrepancies noticed on such verification.
2. a. According to the information and explanations given to us, the
management has conducted physical verification of inventory at
reasonable intervals.
b. According to the information and explanations given to us the
procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and nature of its business.
c. According to the information and explanation given to us the
Company is maintaining proper records of inventory and there is no
material discrepancies noticed on physical verification.
3. According to the information and explanations given to us, the
Company has not given any loans to the parties covered in the register
maintained under section 189 of the Act.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for
purchases of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls
systems.
5. In our opinion and according to the information and explanation
given to us, the Company has not accepted deposits from public during
this year. Therefore the provisions of section 73 to 76 and relevant
rules framed thereunder and any contravention of these provisions for
the year under audit are not applicable.
6. As per the information and explanations given to us, we are of the
opinion that the Company has made and maintained the cost records
pursuant to the Rules made by the Central Government under sub-section
(1) of Section 148 of the Act.
7. a. According to the information and explanation given to us, the
Company has been regular in depositing undisputed statutory dues with
appropriate authorities, like Provident Fund, Employee's State
insurance, Income- tax, Sales-tax, Wealth-tax, Service tax, Customs
Duty, Excise Duty, Value Added Tax, Cess, wherever applicable,. There
are no undisputed Statutory outstanding dues as at June 30, 2015 for a
period of more than six months from the date they become payable.
b. According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Value Added Tax, Cess which have not been deposited
on account of any dispute, except the following:
SI
No Nature of Statue Nature of dues Period to which
relates
1 Income tax Act,1961 Income tax AY 1995-96
AY 2002-03
AY 2009-10
AY 2010-11
AY 2011-12
AY 2012-13
2 Central Excise Act, 1944 Excise Duty January 2005 to
july 2005
Nature of Statute Amount Rs.
Outstanding
(In Lakhs) Forum where the dispute is
pending
Income tax Act, 1961 269.33 Madras High Court/ Income Tax
Appellate Tribunal/ CIT Appeals
Central Excise Act, 1944 4.54 CESTAT Tribunal/Department of
revenue, New Delhi
c. According to the information and explanation given to us, there are
no amount required to the transferred to investor education and
protection fund in accordance with the provisions of the Act.
8 In our opinion and according to the information and explanation given
to us the Company has no accumulated losses as at the end of the year.
The Company has not incurred cash losses during the financial year
covered by our audit and the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
10. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for the loans
taken by others.
11. In our opinion and according to the information and explanation
given to us, the term loans borrowed by the Company were applied for
the purpose for which the loans were obtained.
12. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 4915S
B.Ramakrishnan
Place : Chennai Partner
Date : August 20, 2015 Membership No:201023
Jun 30, 2014
We have audited the accompanying financial statements of Caplin Point
Laboratories Limited., ( "the Company '), which comprise the Balance
Sheet as at June 30,2014, the Statement of Profit and Loss and the cash
flow statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility forthe Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ( "the Acf 'K This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
gives a true and fair view and is free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 disclosures in the financial statements. The procedures
selected depend on the auditor's 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 control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at June 30,2014;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date;
c) in the case of the Cash flow statement, of the cash flows forthe
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ( 'the
Order ") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary forthe purpose 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 ourexamination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
cash flow statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 ') read with
circular number 15/2013 as issued on 13m September 2013 by Ministry of
Corporate Affairs under section 133 of the companies act 2013.
e) On the basis of written representations received from the directors
as on June 30,2014, and taken on record by the Board of Directors, none
of the directors is disqualified as on June 30,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Para 1 under the heading "Report on Other Legal and
Regulatory Requirements of our report of even date)
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b) Fixed assets 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 fixed assets disposed off during the year were not
substantial and therefore do not affect the going concern concept of
the Company.
2. a) The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification o f inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and thr nature of its business.
c) On the basis of our examination of the record of inventories, we are
of the opinion that, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventories, as compared to book records were not material in relation
to the operation of the Company and the same have been properly dealt
with in the books of accounts.
3. The Company has neither granted nor taken any loans secured or
unsecured to/from companies, firms and other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods.
5. 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 in 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 such contracts, or
arrangements, exceeding the value of Rs. Five lakhs, have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
7. The Company has an internal audit system commensurate with the size
of the Company and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government under
Section 209(1 )(d) of the Companies Act, 1956 for the maintenance of
cost records, which is applicable to the Company in respect of Company's
products and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. In our opinion and
to the best of our information, the said books and records have been
maintained in this regard give the information required by the Companies
Act, 1956, in the manner so required.
9. a) According to the information and explanations given to us, and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident fund, Income-tax,
Sales-tax, Customs duty and any other material statutory dues
applicable to it in India.
b) According to the information and explanations given to us, there
were no disputes in respect of Sales Tax, Income Tax, Customs duty or
cess other than the items mentioned below and accordingly, the question
of deposit of dues in respect of the same does not arise.:
SI Name of the Nature of period to
No statues dues which is
relates
1 Income Tax Income Tax AY 1996-96
AY 2002-03
AY 2009-10
AY 2010-11
AY 2011-12
2 Central Exciese Excise Duty jan 2005 to-
act 1994 july 2005
Fy 2005-06
SI Name of the Amount Rs.
No statues outstanding from where dispute is
Rs. in lakhs pending
1 Income Tax 182.52 Madras high court
income tax applate
tribunal cit appents
2 Central Exciese 27.26 CEGAT Triubanla
act 1994 department of
NEW delhi
10. The Company has no accumulated losses, as at the end of the year
and it has not incurred cash losses in the current and in the
immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any bank /finance Company.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv)ofthe order
is not applicable.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they have been obtained.
17. According to information and explanations given to us and on an
overall examination of the Balance Sheet and cash flow statement of the
Company, we report that short term borrowed funds are not used for long
term investments.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19 The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
21. According to the information and explanations given to us, we have
neither come across any instance of fraud on or by the Company, noticed
or reported during the year, nor have been informed of such case by the
management.
For CNGSN & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No. 4915S
B.RAMAKRISHNAN
Place: CHENNAI Partner
Date: 25/08/2014 |CAI Membership No: 201023
Jun 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Caplin Point
Laboratories Limited ("the Company"), which comprise the Balance Sheet
as at 30th June 2013, and the Statement of Profit and Loss and Cash
flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible forthe preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the company in
accordance with the accounting principles generally accepted in India,
including Accounting standards referred to in Section 211(3C) of the
Companies Act, 1956 ("the Act") . This responsibility includes the
design, implementation and maintenance of Internal Control 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 financial
statements based on our audit. We conducted our audit in accordance
with the standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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 control relevant to the company''s preparation and
fair presentation of the financial statements 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 the management,
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.
Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the aforesaid 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:
(a) In the case of the Balance Sheet, of the State of Affairs of the
company as at June 30, 2013;
(b) In the case of the Statement of Profit and Loss, of the Profit of
the company for the year ended on that date; and
(c) In the case of Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of Sub
section (4A) of Section 227 of the Act, we give in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary forthe purpose of
ouraudit;
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, the Statement of Profit and Loss and Cash flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance sheet, Statement of Profit and Loss and
Cash flow Statement dealt with by this report comply with the
accounting standards referred to in sub section (3C) of section 211 of
the Act;
e. On the basis of the written representations received from the
directors, as on 30th June 2013 and taken on record by the Board of
Directors, none of the directors is disqualified as on 30''" June 2013
from being appointed as a director in terms of Section 274(l)(g) of the
Act.
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b) Fixed assets 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 fixed assets disposed off during the year were not
substantial and therefore do not affect the going concern concept of
the company.
2. a) The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
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 the record of inventories, we are
of the opinion that, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventories, as compared to book records were not material in relation
to the operation of the Company and the same have been properly dealt
with in the books of accounts.
3. The Company has neither granted nor taken any loans secured or
unsecured to/from companies, firms and other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods.
5. 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 in 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 such contracts, or
arrangements, exceeding the value of Rs. Five lakhs , have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
7. The company has an internal audit system commensurate with the size
of the Company and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to theRules made by the Central Government under
Section 209(l)(d) of the Companies Act, 1956 for the maintenance of
cost records in respect of Company''s products and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident fund, Income tax, Sales
tax, Customs duty and any other material statutory dues applicable to
it in India.
b) According to the information and explanations given to us, there
were no disputes in respect of Sales Tax, Income Tax, Customs duty or
Cess other than the items mentioned below and accordingly, the question
of deposit of dues in respect or the same does notarise.
10. The Company has no accumulated losses, as at the end of the year
and it has not incurred cash losses in the current and in the
immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any bank / finance company.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is notapplicable.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they have been obtained.
17. According to information and explanations given to us and on an
overall examination of the Balance Sheet and cash flow statement of the
company, we report that short term funds were used for long term
investments. The short term funds were received by way of advance from
customers.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is notapplicable."
21. According to the information and explanations given to us, we have
neither come across any instance of fraud on or by the Company, noticed
or reported during the year, nor have been informed of such case by the
management.
For M Raghunath & Co
Firm Registration No. 003347S
Chartered Accountants
Place: Chennai M Raghunath
Date . 16 08 2013 Partnaer
ICAI Membership No.15501
Jun 30, 2012
We have audited the attached Balance Sheet of Caplin Point Laboratories
Limited as at 30th june 2012 and the Profit and Loss Account and the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto.
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.
We 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 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
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 ("the
Order"), issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on matters specified in the said Order to the extent
applicable thereon.
Further to our comments in the Annexure referred to in the above
paragraph, we state that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it 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 account;
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the all mandatory
Accounting standards referred to in sub-section (3C) of Section 211;
e. On the basis of written representations received from the directors
of the company as at SO-June 2012 and taken on record by the board of
directors we report that no director is disqualified from being
appointed as director under clause (g) of sub-section (1) of Sec. 274
of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i.In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2012 and
ii.In the case of the Profit and Loss Account of the Profit of the
Company for the year ended on that date.
iii.In the case of Cash Flow Statement, of the Cash flows for the year
ended on that date
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in our Report of even date to the members of Caplin Point
Laboratories Limited for the year ended 30th June 2012)
1. a) The Company has maintained proper records to show full
particulars including quantitative details and
situation of fixed assets.
b) Fixed assets 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, none of the fixed assets were disposed off during the year
and therefore do not affect the going concern concept of the company.
2. a) The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
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 the record of inventories, we are
of the opinion that, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventories, as compared to book records were not material in relation
to the operation of the Company and the same have been properly dealt
with in the books of accounts.
3. The Company has neither granted nor taken any loans secured or
unsecured to/from companies, firms and other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods.
5. 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 in 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 such contracts, or
arrangements exceeding the value of Rs. Five lakhs, have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and58AAofthe Companies Act, 1956 and the
rules framed there under are not applicable.
7. The company has an internal audit system commensurate with the size
of the Company and the nature of the business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government under
Section 209(l)(d) of the Companies Act,1956 for the maintenance of cost
records in respect of Company's products and are of the opinion that,
prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, and
on the basis of our examination of the books
of account, the Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
fund, Income - tax, Sales - tax, Customs duty and any other material
statutory dues applicable to it in India.
b) According to the information and explanations given to us, there
were no disputes in respect of Sales Tax Income Tax,Customs duty or
Cess other than the items mentioned below and accordingly, the question
of deposit of dues in respect of the same does not arise.
10. The Company has no accumulated losses, as at the end of the year
and it has not incurred cash losses in the current and in the
immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any bank / finance company.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, nidhi, mutual benefit fund ors a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the
order is not applicable.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they have been obtained.
17. According to information and explanations given to us and on an
overall examination of the Balance Sheet and cash flow statement of the
company, we report that no funds raised on short term basis have been
used for long term investments.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
21. According to the information and explanations given to us, we have
neither come across any instance of fraud on or by the Company, noticed
or reported during the year, nor have been informed of such case by the
management.
For M Raghunath & Co
Firm Registration No. 003347S
Chartered Accountants
Place: Chennai M Raghunath
Date : 09-11-2012 Partner
ICAI Membership No. 15501
Jun 30, 2011
We have audited the attached Balance Sheet of Caplin Point Laboratories
Limited as at 30th June 2011 and the Profit and Loss Account and the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto.
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.
We 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 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
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 ("the
Order"), issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on matters specified in the said Order to the extent
applicable thereon.
Further to our comments in the Annexure referred to in the above
paragraph, we state that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it 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 account;
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the all Accounting
standards referred to in sub-section (3C) of Section 211;
e. On the basis of written representations received from the directors
of the company as at 30th June 2011 and taken on record by the board of
directors we report that no director is disqualified from being
appointed as director under clause (g) of sub-section (1) of Sec. 274
of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 30lh June 2011 and
ii. In the case of the Profit and Loss Account of the Profit of the
Company for the year ended on that date.
iii. In the case of Cash Flow Statement, of the Cash flows for the
year ended on that date
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in our Report of even date to the members ofCaplin Point
Laboratories Limited for the year ended 3Cf June 2011)
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b) Fixed assets 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, none of the fixed assets were disposed off during the year
and therefore do not affect the going concern concept of the company.
2. a) The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b ) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
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 the record of inventories, we are
of the opinion that, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventories, as compared to book records were not material in relation
to the operation of the Company and the same have been properly dealt
with in the books of accounts.
3. The Company has neither granted nor taken any loans secured or
unsecured to/from companies, firms and other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods.
5. 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 in the register required to be maintained
under that Section.
b) Transactions made in pursuance of such contracts, or arrangements,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
7. The company has an internal audit system commensurate with the size
of the Company and the nature of the business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government under
Section 209(l)(d) of the Act for the maintenance of cost records in
respect of Company's products and are of the opinion that, prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, and
on the basis of our examination of the books of account, the Company
has been regular in depositing with appropriate authorities undisputed
statutory dues including Provident fund, Income-tax, Sales-tax, Customs
duty and any other material statutory dues applicable to it in India.
b) According to the information and explanations given to us, there
were no disputes in respect of Sales Tax, Income Tax, Customs duty or
Cess other than the items mentioned below and accordingly, the question
of deposit of dues in respect of the same does not arise.
Sl
No Name of the
statute Nature of dues 2010-11(Rs. Forum where
dispute
In lacs) is pending
1 Income Tax
Act, 1961 Income tax 172.58 Income Tax
Appellate
Tribunal/
CIT Appeals
2 Central Excise
Act, 1944 Excise Duty 27.26 CEGAT
Tribunal/
Department
of
Revenue,
New Delhi
10. The Company has no accumulated losses as at the end of the year
and it has not incurred cash losses in the current and in the
immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any bank / finance company.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable. I
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is not applicable.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they have been obtained.
17. According to information and explanations given to us and on an
overall examination of the Balance Sheet and cash flow statement of the
company, we report that no funds raised on short term basis have been
used for long term investments.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
21. According to the information and explanations given to us, we have
neither come across any instance of fraud on or by the Company, noticed
or reported during the year, nor have been informed of such case by the
management,
For M Raghunath & Co
Firm Registration No. 003347S
Chartered Accountants
Place: Chennai M Raghunath
Date: 21-11-2011 Partner
ICAI Membership No. 15501
Jun 30, 2010
We have audited the attached Balance Sheet of Caplin Point Laboratories
Limited as at 30th June 2010 and the Profit and Loss Account and the
Cash Flow Statement of the Company 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.
We 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 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
our opinion.
As required by the Companies (Auditors Report) Order, 2003 ("the
Order"), issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on matters specified in the said Order to the extent
applicable thereon.
Further to our comments in the Annexure referred to in the above
paragraph, we state that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it 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 account;
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the all mandatory
Accounting Standards referred to in sub-section (3C) of Section 211;
e. On the basis of written representations received from the directors
of the company as at 30 June 2010 and taken on record by the board of
directors we report that no director is disqualified from being
appointed as director under clause (g) of sub-section (1) of Sec. 274
of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 30m June 2010 and ii. In the case of the Profit and Loss
Account of the Profit of the Company for the year ended on that date.
iii. In the case of Cash Flow Statement, of the Cash flows for the
year ended on that date
ANNEXURE TO THE AUDITORS REPORT
(Referred to in our Report of even date to the members of Caplin Point
Laboratories Limited for the year ended 30th June 2010)
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b) Fixed assets 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 fixed assets disposed off during the year were not
substantial and therefore do not affect the going concern concept of
the company.
2. a) The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
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 the record of inventories, we are
of the opinion that, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventories, as compared to book records were not material in relation
to the operation of the Company and the same have been properly dealt
with in the books of accounts.
3. The Company has neither granted nor taken any loans secured or
unsecured to/from companies, firms and other parties covered in the
register maintained under section 301 of the Companies Act, 1956 (the
Act).
4. In our opinion, and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and for the sale of goods.
5. 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 in the register required to be maintained
under that Section.
b) Transactions made in pursuance of such contracts, or arrangements,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
7. The company has an internal audit system commensurate with the size
of the Company and the nature of the business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government under
Section 209(1 )(d) of the Act for the maintenance of cost records in
respect of Companys products and are of the opinion that, prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident fund, Income-tax,
S^!es-tax, Customs duty and any other material statutory dues
applicable to it in India
b) According to the information and explanations given to us, there
were no disputes in respect of Sales Tax, Income Tax, Customs duty or
Cess other than the items mentioned below and accordingly, the question
of deposit of dues in respect of the same does not arise.
Name of the Nature of Dues Amount Period to which
Statute the amount relates
Income Tax a) Income Tax Rs.57,08,773/- Assessment
Act 1961 Year 1995-96
b) Income Tax Loss of Assessment
Rs. 190,93,008/- Year 2002-03
c) Income Tax Rs. 11,01,337/- Assessment
Year 2001-02
d) Income Tax Rs.25,96,458/- Assessment
Year 2002-03
e) Income Tax Rs.7,60,479/- Assessment
Year 2004-05
Central
Excise Excise Duty Rs.22,72,402/- 14/02/2005 to
Act, 1944 29/04/2005
Excise Duty Rs.4,54,419/- 08/01/2005 to
31/07/2005
Name of the Forum where
Statue dispute is pending
Income Tax Act 1961 Income Tax Appellate
Tribunal, Chennai
Commissioner of
Income Tax (Appeals)
Commissioner of
Income Tax (Appeals)
Commissioner of
Income Tax (Appeals)
Commissioner of
Income Tax (Appeals)
Central Excise Department of
Act, 1944 Revenue, New Delhi
Commissioner of
Appeals -Central
Excise, Chennai.
10. The Company has no accumulated losses, as at the end of the year
and it has not incurred cash losses in the current and in the
immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any bank / finance company.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is not applicable.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they have been obtained.
17. According to information and explanations given to us and on an
overall examination of the Balance Sheet and Cash Flow Statement of the
company, we report that no funds raised on short term basis have been
used for long term investments.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
21. According to the information and explanations given to us, we have
neither come across any instance of fraud on or by the Company, noticed
or reported during the year, nor have been informed of such case by the
management.
For M Raghunath & Co
Firm Registration No. 003347S
Chartered Accountants
Place: Chennai M Raghunath
Date: 22-11-2010 Partner
ICAI Membership No. 15501
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