To
The Members
Capfin India l imited (CIN-L74999DI.1992PLC048032)
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying annual financial statements of Caplin India Limited
("the Company* ) CIN- L74999DL1992PLC048032 which comprise the balance sheet as
at March 31, 2023. and the statement of profit and loss (including other comprehensive
income), statement of changes in equity and statement of cash flows for the year ended,
and notes to the standalone financial statements, including a summary of the significant
accounting policies and other explanatory information (here in after referred to as
"standalone financial statements").
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 ("Act") in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted in India
Including the Indian Accounting Standards (" Inti AS") prescribed under
section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015. as
amended and other accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023. and its profit (including other comprehensive
income), the changes in equity and its cash flows for the year ended on that date.
Basic for Opinion Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 144(10) of the Companies Act. 2013 ("Act"). Our responsibilities
under those Standards are further described in the Auditors 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 ("ICAD together with the ethical requirements that
arc relevant to our audit of the standalone financial statements under the provisions of
the Act and Rules made 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 appropt late lo provide a basis
for our opinion on the standalone financial statements
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit ol the financial statements of the current year. These matters
were addressed in the context of our audit ol the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Attention is invited to the notes on investment wherein the company has given
disclosure that an amount ol Rs 29.42.035 - is invested in M/s On Dot Couriers and Cargo
Limited. The company is under liquidation and the value of investment is shown at 32.69%
of initial investment of Rs. 90.00,000/- sharcs could not lx- ascertained in absence of
latest audited financial statements.
Information Other than the financial Statements and Auditors Report Thereon
The companys Board of Directors is responsible for the other information. The other
information compromises the information included in the Management Discussion and
Analysis. Boards Report including An icxures to Boards Report. Business Responsibility
Report, Corporate Governance and Shareholders Information, but does not include the
standalone financial statements and our auditors 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 connectiun with our audit of the standalone financial statements, our
responsibility is to read the other information and in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements, or
our knowledge obtained during the course of audit or otherwise appears to be materially
misstated.
It based on the work wc 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.
Managements Responsibility for the standalone financial statement
The Companys Board of Directors is responsible for the matters staled in Section
134(5) of the Companies Act. 2013 ( the Act") with respect to the preparation and
presentation of these standalone financial statements to give a true and fair view of the
financial position, financial performance (including other comprehensive income), cash
flows and changes in equity of the Company in accordance with accounting principles
generally accepted in India, including the Indian Accounting Standards specified in the
Companies (Indian Accounting Standards) Rules, 2015 (as amended) 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 prcpar ng the standalone financial statements, management is responsible for
assessing the Companys 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 are responsible for overseeing the Companys financial reporting
process
Auditors Responsibility for the Audit of the Shmtliilone Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are tree from material misstatement, whether due to fraud or error, and to
issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, hut 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 ol this standalone financial statements.
As part ol an audit in accordance with SAs. we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identity 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 lor one resulting from error, as fraud mas involve
collusion, forgery, intentional omissions, misrepresentations, or he 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 Companies Act. 2013. we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls with reference to standalone
financial statements in place and the operating effectiveness of such controls.
• aluiitc the appropriateness of accounting policies used and the reasonableness
of accounting •annates and related disclosures made by management.
• Conclude on the appropriateness of managements 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 east significant doubt on the Companys
ability to continue as a going concern. It we conclude that a material uncertainty exists,
we arc required to draw attention in our auditors 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 ip to the dale of our auditors
report. However, future events or conditions may cause the t umpany to cease to continue
as a going concern.
• \ aluatc 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 the 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 nfain identified misstatements in the annual 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 equipments regarding independence, and to communicate with them all
relationships and other matters that may reasonably he thought to bear on our
independence, and where applicable, related safeguards.
I ruin t ie matters communicated with those charged with governance, we determine those
matters that were oi most significance in the audit of the standalone financial statements
of the current year and are therefore the key audit matters. We describe these matters in
our auditors report unless law or iv > ilaiion precludes public disclosure about the
matter or when, in extremely rare circumstances, we detei mine 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
I A required by the Companies (Auditors Report) Older. 2020. issued by the Central
Government of lndia in terms of sub-section (11) of section 143 of the Act ("the
Order"), and on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and explanations given to us.
we give in the Annexure A. a statement on the matters specitied in paragraphs 3 and 4 of
the Order.
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.
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 (including other comprehensive
income), he Cash blow Statement and the Statement of Changes in Equity dealt w ith by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with the Companies
(Indian Accounting Si; ndards) Rules.2015. as amended;
e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31. 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
t ) With respect to the adequacy of the internal financial controls with reference to
the standalone financial statements and the operating effectiveness of such controls of
the Company, refer to our -eparate report in "Annexure-B".
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197( 16) of the Act. as amended:
in our opinion and to the best of the information and according to the explanations
given to us. the remuneration paid by the Company to its directors during the year is not
in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule
I of the Companies (Audit and Auditors) Rules. 2014. in our opinion and to the best of
our know ledge and belief and according to the information and explanations ghen in us:
(i) The Company has no pending litigations as at March 31. 2023 on its financial position
in its standalone financial statements.
ii) 1 he Company did not have any long-term contracts, including derivative contracts
as at March 31.2023 fur which there were material foreseeable losses.
(iii)l here were no amounts which were required to be transferred, to the Investor
education and Protection Fund by the Company during the year ended March 31.2023. h
Based on our examination which included test checks, the company has used an accounting
software for maintaining its hooks of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant,
transactions recorded in the software.
As proviso to rule 3( I) of the Companies (Accounts) Rules, 2014 is applicable for the
company only w.e.f April 1.2023. reporting under this clause is not applicable.
For RAC & Vssociates
( harlered Accountants
l( \l Filin Registration number: 00S653C
C A Raglmndera
Partner
Membership No: 089757
UDIN: 23089757H<;\\ PLS8I63
Place: Noida
Date: 30th May. 2023
Annexure B to the Independent Auditors Report on the standalone financial statements
off apfin India I united for the year ended March 31,2023
Report on the internal financial controls with reference to the aforesaid standalone
financial statements under C iause ti) of Sub-section 3 of Section 143 of the Companies
Act. 2013
(Referred to in paragraph 2(a)(1) under Report on Other Legal and Regulatory
Requirements section of our report of even date)
Opinion
Ac have audited the internal financial controls with reference to standalone financial
statements of Caplin India Limited ("the Company) as of 31 March 2023 in
conjunction with our audit of the standalone financial statements of the Company as at and
for the year ended on that date. In our opinion, the Company has, in all material
respects, adequate internal financial controls with reference to standalone financial
statements and such internal financial controls were operating effectively as at 31 March
1023. based on the internal financial controls with reference to standalone financial
statements 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 (the
"Guidance Note").
.Managements Responsibility for Internal I - manual Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on ihe 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 F inancial Controls over financial Reporting
issued by the Institute of Chartered Accountants of India (iCAf).
I he sc 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 companys policies, the
safeguarding of its assets, the prevention and detection ot frauds and errors, the accuracy
and completeness of the accounting records, and the timely preparation
ol reliable financial information, as required under the* Companies Act, 201 3.
Auditors Responsibility
Our responsibility is to express ail opinion on the Companys 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
and the Standards on Auditing, issued by ICAI and deemed to lie prescribed under section
143(10) of the Companies Act. 2013, ter 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 ova 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 auditors judgment, including the
assessment of the risks of material misstate meat 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 Companys internal financial controls system
over financial controls with reference to standalone financial statements.
.VIcaning of Internal financial control over financial Reporting
A companys internal financial control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation ol standalone financial statements lor external purposes in accordance with
generally accepted accounting principles \ companys 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 i a tactions and dispositions of the assets of the company :
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation o! standalone financial statements in accordance w ith generally accepted
accounting principles, and hat receipts and expenditures of the company arc being made
only in accordance with luiliot i/aiions 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 companys assets that could have
a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
I localise 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 ihe policies or procedures may deteriorate.
Annexre-1 to Independent Auditors Report on (lie financial statements of Caplin India
Limited
Idr the year ended March 31, 2023
(Referred to in paragraph I under ‘Report on other legal and regulatory
requirements section of our report ol even date)
(i) (a) I he Company has maintained proper records showing full particulars, including
quantitative details and situation, of Property Plant and Equipments and intangible
assets.
(b) As explained to us. these Property Plant and Equipments assets have been
physically verified by the management at reasonable intervals; no any material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on tiic basis of our
examination of the records of the Company, the title deeds of immovable properties (other
than immovable properties where the Company is the lessee) disclosed in the standalone
financial statements are held in the name of the Company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalued its
Property, plant and equipment (including Right-of-use assets) or Intangible assets or both
during the year.
(e) According to the information and explanations given to us ami on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made there under.
(ii) (a) In our opinion and according to the information and explanations given to us.
the procedure of physical verification of inventories followed by the management is
reasonable and adequate in relation to size of the company and nature of its business.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has taken working capital limits
from the bank -State Bank of India and quarterly returns or statement filed by the company
with slate bank of India are in agreements with books of accounts.
(iii) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made investments, provided
guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year.
(a) 1 lie Company has not granted any loans, secured or unsecured, to firms, limited
liability partnerships or an) other parties during the year.
A. Rased on the audit procedures carried on by us and as per the information and
explanations given to us, the Company has not granted any loans to subsidiaries.
B. Based on the audit procedures carried on by us and as per the information and
explanations given to us. the Company has not granted loans to a party other than
subsidiaries.
(bl According U> the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not made investments,
provided guarantee or security or granted any adv ances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year. Hence this clause is not applicable.
(c) \ccording to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made investments, prov ided
guarantee or security or granted any advances in the nature of loans, secured or unsecured,
to companies, linns, limited liability partnerships or any other parties during the
year. 1 fence this clause is not applicable.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made investments, provided
guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the y ear. Hence this clause is not applicable.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there is no loan given falling due during the
year, which has been renewed or extended or fresh loans given to settle the overdoes of
existing loans given to the same party.
(f) According to the information and explanations given to us and on the basis ol our
examination of the records of the Company, the C ompany has not made investments, provided
guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year. Hence this clause is not applicable.
t iv) According to the information and explanations given to us and on the basis of our
examination of the records, the Company has not given any loans, or provided any guarantee
or security as specified under Section 185 of the Companies Act. 2013 and the Company has
not provided any guarantee or security as specified under Section 186 of the Companies
Act. 2013. Further, the Company has complied with the provisions of Section 186 of the
Companies Act. 2013 in relation to loans given and investments made,
(v) i he Company has not accepted any deposits or amounts which are deemed to be
deposits from the public. Accordingly , clause 3(v) of the Order is not applicable.
(vit According to the information and explanations given to us. the Central Government
has not prescribed the maintenance of cost records under Section 148(1) of the Companies
Act, 2013 for the products manufactured by it (and or services provided by if).
Accordingly, clause 3(vi) of the Order is not applicable.
(\ii) (a) According to the information and explanations given to us and the records of
the Company
examined by us. in our opinion, the Company is generally regular in depositing
undisputed statutory dues in respect of Goods and Service Tax, income tax, duty of
customs, value added tax. cess and other material statutory dues, as applicable, with the
appropriate authorities.
(b) According to the information and explanations given to us. no undisputed amounts
payable m respect of provident fund, employees state insurance, income-tax. sales- tax.
service tax. goods and service tax. duty of customs, duty of excise, value added lax. cess
and other material statutory dues were in arrears as at March 31, 2022 for a period of
more than six months from the date they became payable
(viii) According to the information and explanations given to us and on the basis of
our examination ofthe records of the Company, the Company has not surrendered or disclosed
any transactions, previously unrecorded as income in the books of account, in the tax
assessments under the Income-tax Act, 1961 as income during the year.
(ix) (a) According to the information and explanations given to us and on the basis of
our examination ol the records of the Company, the Company has not defaulted in repayment
of loans or borrowings from any lender during the year.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company lias not been declared a wilful
defaulter by any bank or financial institution or government or government authority.
(c) According to the information and explanations given to us by the management, the
Company has not applied the proceedings of the loan other than the purpose for which the
loans were applied for.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no short term funds have
been applied for long term purposes.
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the
Order is not applicable.
(f) According to the information and explanations given to us and procedures performed
by us. we report that the Company has not raised loans during the year on the pledge of
securities held in us subsidiaries as defined under the Companies Act. 2013. Accordingly,
clause 3{i.\)(f) of the Order is not applicable.
(\) (a) fhc Company hus not raised any moneys by way of initial public offer or further
public
offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not
applicable (b) According to the information and explanations given to us and on the basis
of our examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully or partly
convertible debentures during the year. Accordingly, clause 3(\)(h) of the Order is not
applicable.
(xi) (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us. considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
(hi According to the information and explanations given to us. no report under
sub-section (121 of Section 143 of the Companies Act. 2013 has been filed by tbe auditors
in Form AD 1-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules. 2014
with the Central Government
(e) No whistle blower complaints received by the Company during the year.
(xii ) According to ilie information and explanations given to us, the Company is not a
Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us,
the transactions with related parties are in compliance with Sections 177 and 1<SX of
the Companies Act. 2013. where applicable, and the details of the related party
transactions have been disclosed in the standalone financial statements as required by the
applicable Indian Accounting Standards.
(xiv) (a) Based on information and explanations provided to us and our audit
procedures, in our opinion the Company does not have an internal audit system commensurate
with the size and nature of its business.
< h) Wc have not considered the internal audit reports of the Company hence not
report was placed before us.
(xv) In our opinion and according to the information and explanations given to us. the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company.
(xvi) flic company is not required to be registered under section 45-IA of the Reserve
Bank of India 1934. I lenee this clause is not applicable.
(xvii) I he Company did not incurred cash losses in the current and in the immediately
preceding financial year I lenee this clause is not applicable.
(xviii) 1 here lias not been retirement of the statutory auditors during the year, l
ienee this clause is not applicable:
(six) According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dales of realization of financial assets and payment
of financial liabilities, other information accompanying the linancial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
the Company is not capable of meeting its liabilities existing at the date of balance
sheet as and w hen they fall due within a period of one year from the balance sheet date.
We, however, state that ibis is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due w ithin a period of one year from the balance sheet date, will eel discharged
b\ the Company as and when thev fall due.
(xx) In our opinion and according to the information and explanations given to us, the
company is not required to spend the money under Section 135 of the Companies Act. 2013
pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.
For RAC & Vssociates
( harlered Accountants
l( \l Filin Registration number: 00S653C
C A Raglmndera
Partner
Membership No: 089757
UDIN: 23089757H<;\\ PLS8I63
Place: Noida
Date: 30th May. 2023
+91-9892691696
