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Caprihans India Ltd.

BSE: 509486 Sector: Industrials
NSE: CAPRIHANS ISIN Code: INE479A01018
BSE LIVE 15:40 | 20 Nov 116.90 4.05
(3.59%)
OPEN

113.95

HIGH

117.20

LOW

113.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 113.95
PREVIOUS CLOSE 112.85
VOLUME 13556
52-Week high 126.60
52-Week low 86.00
P/E 29.52
Mkt Cap.(Rs cr) 153
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 113.95
CLOSE 112.85
VOLUME 13556
52-Week high 126.60
52-Week low 86.00
P/E 29.52
Mkt Cap.(Rs cr) 153
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Caprihans India Ltd. (CAPRIHANS) - Auditors Report

Company auditors report

Independent Auditors’ Report

TO THE MEMBERS OF CAPRIHANS INDIA LIMITED

Report on the Financial Statements

We have audited the accompanying financialstatements of Caprihans India Limited (the"Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation andpresentationofthefinancialstatements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion onthesestandalonefinancialstatements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial fraud or error. In making those risk assessments the auditor considersinternal financial control relevant to the Company’s preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial required by the Act in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2016 its profit and itscash 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 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 1 a statement on the matters specifiedin paragraphs 3 and 4 of the

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 bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) oftheAct;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure 2 of this report.

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Paul Alvares
Place of Signature: Pune Partner
Date: May 20 2016 Membership Number: 105754

Annexure 1 referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date

Re: Caprihans India Limited (the "Company")

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All fixed assets were physically verified by the management in the previous year inaccordance with a planned programme of verifying them once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by management the title deedsof immovable properties included in fixed assets are held in the name of the Company.

(ii) The inventory has been physically verified by management during the year. In ouropinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.

(iii) (a) According to the information and explanations given to us we are of theopinion that the terms and conditions of loans granted by the company to a party coveredin the register maintained under Section 189 of the Companies Act 2013 having maximumbalance of Rs. 417 lakhs (including interest of Rs. 17 lakhs) and year-end balance of suchloans granted to such parties was Rs. 343.53 lakhs (including interest of Rs. 43.53lakhs) are prejudicial to the company’s interest on account of the inability of theparty to pay these amounts on the due dates as per the terms of the agreement.

(b) In respect of loan granted to a company covered in the register maintained underSection 189 of the Companies Act 2013 the repayment of principal amount was not made asstipulated and payment of interest has not been regular.

(c) The Company has amounts aggregating to Rs. 134.10 lakhs (including interest of Rs.34.10 lakhs) which are overdue for more than ninety days from a company covered in theregister maintained under section 189 of the Companies Act 2013 and in our opinion andaccording to the information and explanations given by the management the Company hastaken reasonable steps for recovery of the principal and interest.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities granted by the Company.Accordingly the provisions of Section 185 and 186 of the Companies Act 2013 being notapplicable to the Company clause 3(iv) of the Order is not applicable to the Company andhence not commented upon.

(v) The Company has not accepted any deposits from the public. Accordingly theprovisions of clause 3 (v) of the Order are not applicable to the Company and hence notcommented upon.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Act relating to the manufacture of PVC films and plastic extrudedproducts and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examinationof the same.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees’ state insurance income-taxsales-tax service tax customs duty excise duty value added tax cess and othermaterial statutory dues wherever applicable to it. None of these dues were outstanding asat the year-end for a period of more than six months from the date they became payable.Also refer Note 37 of the financial statements.

(b) According to the records of the Company the dues outstanding of income-taxsales-tax service tax customs duty excise duty value added tax and cess on account ofany dispute are as follows:

(Rs. lakhs) amount relates dispute is pending
Income Tax Act 1961 Income tax including interest 40.50 AY 2005-06 Income Tax Appellate Tribunal
Income Tax Act 1961 Income tax including interest 14.59 AY 2006-07 Income Tax Appellate Tribunal
Income Tax Act 1961 Income tax including interest 54.52 AY 2007-08 Income Tax Appellate Tribunal
Central Excise Act 1944 Excise duty 594.24 March 1990 to February 1994 CESTAT
Central Excise Act 1944 Excise duty including penalty 185.14 July 1996 to October 1997 Currently remanded back by CESTAT to adjudicating authority i.e. Superintendent Central Excise
Central Excise Act 1944 Excise duty including penalty 24.09 June 1999 to March 2000 CESTAT
Central Excise Act 1944 Excise duty including penalty 119.62 April 2004 to March 2005 CESTAT
Central Excise Act 1944 Excise duty 5.17 April 2005 to June 2013 Commissioner (Appeals)
Central Excise Act 1944 Excise duty 2.79 April 2007 to September 2008 Commissioner (Appeals)
Central Sales Tax Act 1956 Sales tax including interest 3.37 April 2008 to March 2009 Joint Commissioner of Sales Tax (Appeal)- II

(viii) In our opinion and according to the information and explanations given by themanagement the Company did not have any dues outstanding in the nature of loans to afinancial institution or bank or to debenture holders or to government during the year.Accordingly the provisions of clause 3 (viii) of the Order are not applicable to theCompany and hence not commented upon.

(ix) Based on our audit procedures performed for the purpose of reporting the true andfair view ofthefinancialstatements and according to the information and explanations givenby the management the Company has not raised any money by way of initial public offerfurther public offer (including debt instruments) and term loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by management we report that no fraud by the Company or no fraud on the Company bythe officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of Section 197 of the Companies Act 2013 read with the generalcircular no. 07/2015 dated 10th April 2015 issued by the Ministry of Corporate Affairs .

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xi) of the Order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with Section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards except fortransactions with Bilcare Limited aggregating Rs. 338.50 lakhs where the recoveries arenot as per stipulated terms.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder audit and accordingly the provisions of clause 3(xiv) of the Order are notapplicable to the Company and hence not commented upon.

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by management the Company has not entered into any non-cash transactions withdirectors or persons 192 of the Companies Act 2013; and connectedwiththemasspecified accordinglythe provisions of clause 3(xv) of the Order are not applicable to the Company and hencenot commented upon.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934 andaccordingly the provisions of clause 3(xvi) are not applicable to the Company and hencenot commented upon.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Paul Alvares
Place of Signature: Pune Partner
Date: May 20 2016 Membership Number: 105754

Annexure 2 to the Independent Auditors’ Report of even date on the StandaloneFinancial Statements of Caprihans India Limited

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

We have audited the internal financialreporting of Caprihans India Limited("the Company") as of March 31 2016 in conjunction controlsover with our auditof the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedfectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financialcontrolsoverfinancialreporting assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor’s judgementincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theinternal 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’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 financialreporting including the override of controls material misstatements due to error orfraud may occur and not be detected. Also projections of any evaluation of the internalfinancial controls over financial reporting to future periods are subject to the risk thatthe internal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial financial controls over financial reporting wereoperating effectively as at March 31 2016 based on the criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Paul Alvares
Place of Signature: Pune Partner
Date: May 20 2016 Membership Number: 105754