You are here » Home » Companies » Company Overview » Caplin Point Laboratories Ltd

Caplin Point Laboratories Ltd.

BSE: 524742 Sector: Health care
NSE: CAPLIPOINT ISIN Code: INE475E01026
BSE 00:00 | 30 Jul 884.45 -19.70
(-2.18%)
OPEN

921.00

HIGH

921.00

LOW

881.30

NSE 00:00 | 30 Jul 884.70 -19.90
(-2.20%)
OPEN

907.90

HIGH

921.55

LOW

880.10

OPEN 921.00
PREVIOUS CLOSE 904.15
VOLUME 28476
52-Week high 1034.00
52-Week low 373.85
P/E 42.83
Mkt Cap.(Rs cr) 6,691
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 921.00
CLOSE 904.15
VOLUME 28476
52-Week high 1034.00
52-Week low 373.85
P/E 42.83
Mkt Cap.(Rs cr) 6,691
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Caplin Point Laboratories Ltd. (CAPLIPOINT) - Auditors Report

Company auditors report

To

The Members

Caplin Point Laboratories Limited Chennai

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements ofCaplin Point Laboratories Limited ("the Company") which comprise the BalanceSheet as at 31st March 2020 the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and notes to the financial statements including a summary of thesignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including Indian Accounting Standards ('Ind AS') specifiedunder Section 133 of the Act of the state of affairs of the Company as at 31st March2020 and its profit total comprehensive income the changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under

those Standards are further described in the Auditors' Responsibilitiesfor the Audit of the Standalone Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ('ICAI') together with the ethical requirements that arerelevant to our audit of the standalone financial statements under the provisions of theAct and the rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined the following to be the key audit matters to becommunicated in our report.

S.No Key Audit Matter How was the matter addressed in our audit
1. Accuracy of recognition measurement Presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" (revenue accounting standard) Principal Audit Procedures
We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Additionally new revenue accounting standard contains disclosures which involves 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.
> Evaluated the design of internal controls relating to implementation of the new 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 enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
S.No Key Audit Matter How was the matter addressed in our audit
2. Impact of Covid-19 pandemic on the Company's operations > Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.
> We assessed the Company's process to identify assess and respond to risks of material misstatement considering the uncertainties and the impact of Covid-19 pandemic on the Company's operations and results for the year under consideration. We have designed performed procedures and modified previously planned audit procedures as a result of the necessity for carrying out part of the audit procedures remotely including verification of the source and completeness of data provided for audit. This includes performing alternative audit procedures to obtain audit comfort in respect of significant account balances for recognition measurement and disclosures. We specifically discussed the impact of COVID-19 with the management and critically challenged the key assumptions and their reasonableness in making such key accounting estimates. We have considered management's adjustments or disclosures which includes the impact of the changes in the environment on the recognition and measurement of account balances and transactions in the financial statements or other specific disclosures.

Emphasis of Matter

The Company has made a detailed assessment of its liquidity positionfor the next year and the recoverability and carrying value of its assets comprisingproperty plant and equipment investments inventory and trade receivables. Based oncurrent indicators of future economic conditions the Company expects to comfortablyrecover the carrying amount of these assets. The Company continues to evaluate them ashighly probable considering the orders in hand. The situation is changing rapidly givingrise to inherent uncertainty around the extent and timing of the potential future impactof the COVID-19 pandemic which may be different from that estimated as at the date ofapproval of the financial results. The Company will continue to closely monitor anymaterial changes arising of future economic conditions and impact on its business.

Our opinion is not modified in respect of thismatter.

Other Matters

Further to the continuous spreading of COVID -19 across India theIndian Government announced a strict 21-day lockdown on March 24 2020 which was furtherextended across India to contain the spread of the virus. This has resulted in restrictionon physical visit to the client

locations and the need for carrying out alternative audit procedures asper the Standards on Auditing prescribed by the Institute of Chartered Accountants ofIndia (ICAI).

As a result of the above part of the audit was carried out based onremote access of the data as provided by the management. This has been carried out basedon the advisory on "Specific Considerations while conducting Distance Audit/ RemoteAudit/ Online Audit under current Covid-19 situation" issued by the Auditing andAssurance Standards Board of ICAI. We have been represented by the management that thedata provided for our audit purposes is correct complete reliable and are directlygenerated by the accounting system of the Company without any further manualmodifications.

We bring to the attention of the users that part of the audit of thefinancial statements has been performed in the aforesaid conditions.

Our audit opinion is not modified in respect of the above.

Information other than the financial statements andAuditors' Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included

in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the Standalone financial statements andour Auditors' report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the StandaloneFinancial Statements

The Company's board of directors is responsible for the matters statedin section 134 (5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 and Companies(Indian Accounting Standards) Rules 2016 as amended from time to time and otheraccounting principles generally accepted in India..

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

Auditors' Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an Auditors' report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.

As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional skepticism throughout the audit.We also:

> Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

> Obtain an understanding of internal control relevant to the auditin order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

> Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

> Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our Auditors' report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our Auditors' report. However future events or conditions maycause the Company to cease to continue as a going concern.

> Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation. Materiality is the magnitude of misstatements in thestandalone financial statements that individually or in aggregate makes it probable thatthe economic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (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 standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the standalone financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our Auditors'report unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich 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 beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with theaccounting standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014;

e) On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of Section164(2) of the Act;

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197 (16) of the Act as amended inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act; and

h) 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 (asamended) in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements.

ii. The Company has made provision as required under the applicablelaw or Accounting Standards for material foreseeable losses if any on long-termcontracts including derivative contracts;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government of India in terms of Section143(11) of the Act we give in the "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S/S200036
B. Ramakrishnan
Partner
Place : Chennai Membership No: 201023
Date : 18/06/2020 UDIN: 20201023AAAAAZ9189

Annexure "A" - To The IndependentAuditors' Report on the Standalone Financial Statements of Caplin Point LaboratoriesLimited for the year ended 31 March 2020

Report on the internal financial controls over Financial Reportingunder section 143(3) (i) of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Caplin Point Laboratories Limited ("the Company") as of 31 March2020 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note and Standards on Auditing prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit

of internal financial controls with reference to financial statementsincluded obtaining an understanding of internal financial controls with reference tofinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the Auditors' judgment including theassessment of the risks of material misstatement of the standalone financial statementswhether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls withreference to financial statements

A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorizations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal FinancialControls with reference to financial statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections

of any evaluation of the internal financial controls with reference tofinancial statements to future periods are subject to the risk that internal financialcontrols with reference to financial statements may become inadequate because of changesin conditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion to the best of our information and according to theexplanation given to us the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls wereoperating effectively as at 31 March 2020 based on the internal financial control overfinancial reporting criteria established by the Company considering the essential

components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S/S200036
B. Ramakrishnan
Partner
Place : Chennai Membership No: 201023
Date : 18/06/2020 UDIN: 20201023AAAAAZ9189

Annexure "B" -To The Independent Auditors' Report on theStandalone Financial Statements of Caplin Point Laboratories Limited for the year ended 31March 2020

(Referred to in paragraph 2 under ‘Report OnOther Legal and

Regulatory Requirements' section of ourreport to the Members of

Caplin Point Laboratories Limited of even date)

i. In respect of the Company's fixed assets:

a. The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b. The Company has a regular program of physical verification of itsfixed assets by which all fixed assets are verified in a phased manner which in ouropinion is reasonable having regard to the Size of the company and the nature of itsassets. Pursuant to the program certain fixed assets were physically verified by themanagement during the year and no material discrepancies were noticed on suchverification. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.

c. The title deeds of immovable properties included in fixed assets areheld in the name of the Company. In respect of immovable properties taken on lease anddisclosed as property plant and equipment in the standalone Ind AS financial statementsthe lease agreements are in the name of the Company.

ii. The inventory has been physically verified by the management duringthe year In our opinion the frequency of such verification is reasonable. The Company hasmaintained proper records of inventory. The discrepancies noticed on verification betweenthe physical stock and the book records were not material.

iii. According to the information and explanation given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Act 2013.

iv. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of

the Order is not applicable to the Company. In our opinion andaccording to information and explanation given to us in respect of loansinvestmentsguarantees and security the Company has complied with the provisions of sections 185 andsection 186 of the Companies Act 2013.

v. In our opinion and according to information and explanation given tous the Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India provisions of Section 73 to 76 of the Actany other relevant provisions of the Act and the relevant rules framed thereunderAccordingly paragraph 3(v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained.

vii. a) According to the information and explanations given to us

and on the basis of our examination of the records of the Companyamounts deducted/ accrued in the books of account in respect of undisputed statutory duesincluding provident fund employees' state insurance income-tax sales- tax service taxgoods and service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues have been generally regularly deposited during the year by thecompany with the appropriate Authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax sales- tax service tax goods and service tax duty of customs duty ofexcise value added tax cess and other material statutory dues were in arrears as atMarch 31 2020 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 Goodsand Services tax or duty of Customs or duty of Excise or Value added tax which have notbeen deposited by the Company on account of disputes except for the following:

S. No Name of the statute Nature of dues As At 31/3/2020 (Rs. In lakhs) As At 31/3/2019 (Rs. In lakhs) Forum where dispute is pending
1. Income Tax Act 1961 Income Tax 25.83 53.20 High Court/Income Tax Appellate Tribunal/ CIT Appeals

viii. In our opinion and according to the information and explanationsgiven to us the company has no outstanding dues to any financial institutions or banks orany government or any debenture holders during the year Accordingly paragraph 3 (viii) ofthe order is not applicable.

ix. Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments) and term loans during the yearAccordingly the provisions of Clause 3(ix) of the Order is not applicable to the Company.

x. In our opinion and according to the information and explanationgiven to us no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

xi. In our opinion and according to the information and explanationsgiven to us the Company has paid/ provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

xii. The Company is not a Nidhi Company and accordingly paragraph 3(xii) of the order is not applicable to the Company.

xiii. According to the information and explanations given to us andbased on our examination of the records of the company transactions with the relatedparties are in compliance with section 177 and 188 of the Act. Where applicable thedetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

xiv. According to the information and explanations given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year Accordingly paragraph 3(xiv) of the order is not applicable.

xv. According to the information and explanations given to us and basedon our examination of the records of the company the company has not entered intonon-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the order is not applicable.

xvi. According to the information and explanations given to us andbased on our examination of the records of the company the company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S/S200036
B. Ramakrishnan
Partner
Place : Chennai Membership No: 201023
Date : 18/06/2020 UDIN: 20201023AAAAAZ9189