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Caplin Point Laboratories Directors Report, Caplin Labs Reports by Directors
Caplin Point Laboratories
BSE: 524742|ISIN: INE475E01018|SECTOR: Pharmaceuticals
, 16:01
0.3 (0.18%)
VOLUME 16,188
Caplin Point Laboratories is not listed on NSE
Directors Report Year End : Jun '13    Jun 12
To the Shareholders
 The Directors have pleasure in presenting the Twenty Second Annual
 Report together with the Audited Accounts for the year ended 30 June
                            Rs. In Lakhs except per share data
                            Standalone for the    Consolidated for the 
                            year ended 30th June  year ended 30,h June
                            2013       2012      2013      2012
 Sales (net of excise 
 duty) and other         12,440.52   11,001.01  12,912.86 10,972.34
 Profit before 
 Finance Costs,           2,327.18    1,286.86    2,39829  1,330.34
 Expenses & Taxes 
 Depreciation & 
 Amortisation               145.32      115.50     154.02    123.66
 Profit Before Tax           17.24
 Less: Tax Expenses         721.15      265.16     811.89    314.25
 Add: Surplus at the 
 beginning of             1,216.89      834.60   1,173.65    809.22
 the year
 Profit Apgropriation     2,647.54    1,653.11    2,57213   1609.87
 Less: Transfer to 
 Genera Reserves            150.00       85.00 
 Final Dividend 
 Dividend Tax Current Year    6420       49.02      64.20     49.12
 Transfer from other 
 Balance carried to
 Balance Sheet             2,05751    1,216.89   1,982.02     73.65
 Reserves & Surplus                                         1,84679
 Netvvorth                4,389.73    3,401.03    4,31424  3,357.79
 Earnings per Share
 During the Financial year under report, the company posted an excellent
 financial performance.
 At standalone level, our profit after tax amounted to Rs 1,430.65 lakhs
 (11.49% of revenue) as against Rs 818.51 lakhs (PY 7.44% of revenue),
 thus representing an increase of 54% over the previous year. On
 consolidated basis, our profit after tax amounted to Rs 1,398.40 lakhs
 (10.82% of revenue) as against Rs 800.65 lakhs (PY 7.29% of revenue).
 The net worth of the company has increased to Rs 4,389.73 lakhs from
 Rs. 3,401.03 lakhs. The EPS has improved to Rs 9.47 (Rs 5.42 PY) for
 standalone and Rs 9.28 (Rs 5.30 PY) for the group.
 With India becoming a hub for manufacturing and research operations,
 your company is poised for growth. In 2012, your Company commenced a
 project for setting up of a state of the art injectable plant which
 will cater to highly regulated markets like USA , EU, Brazil, South
 Africa etc. The facility is designee! with a high level of
 sophistication and automated process control and will be in compliance
 with norms stated by USFDA , UK MHRA, ANVISA BRAZIL, EU GMPand other
 regulatory bodies. Upon commencement of commercial production in this
 facility, your Company would also be in a position to offer Contract
 manufacturing services in the areas of general category injectable
 dosage forms in Vials, Ampoules, Lyophilized Vials, Pre filled syringes
 and Ophthalmic preparations. Your Company expects to commence trial
 production by December 2013 and pilot production batches by January
 2014. With facilities available to cater to all segments of domestic
 and export markets, your Company has recently entered into an agreement
 to cater to the Brazilian Pharmaceutical Market for these products.
 Your Company can provide them supplies at competitive prices which is
 expected to significantly contribute to the future business.
 Your Company as part of the current expansion plans at the
 manufacturing unit at Puducherry, is in the process of setting up
 dedicated lines in the areas of Suppositories, Soft gelatin capsule and
 Penems which will commence production during the Fourth quarter of this
 Your Company''s manufacturing unit at Baddi in the state of Himachal
 Pradesh is situated in the notified area under notification number S.O.
 1269(E) dated 4'' November, 2003 and continue to enjoy Central Excise
 and Income Tax benefits.
 At the end of the financial year the Company''s Equity Share Capital
 stands at Rs. 1511.00 Lakhs consisting of 15,110,000 Equity Shares of
 Rs 10/ each.
 The Board of Directors are pleased to recommend a dividend of Rs. 2.50
 per Equity Share of Rs.10/ each [25%] for the year ended June 30, 2013
 subject to approval of the shareholders in the ensuing Annual General
 Meeting. The dividend if approved, at the Annual General Meeting will
 be tax free in the hands of the shareholders. The payment of dividend
 would entail a cash outflow of Rs. 441.95 Lacs including dividend
 distribution tax of Rs. 64.20 Lacs.
 In terms of Companies (Transfer of Profits to Reserves) Rules, 1975, a
 sum of Rs.150.00 lakhs (Rs. 85.00 Lakhs previous year) was transferred
 to General Reserves during the financial year.
 As per Section 212 of the Companies Act, 1956, we are required to
 attach the Directors Report, Balance Sheet and Profit and Loss Account
 of our subsidiary to our annual report.
 The Ministry of Corporate Affairs, Government of India vide its
 circular no. 2/2011 dated February 8 ,2011 provided an exemption to
 companies from complying with Section 212, provided such companies
 publish the audited consolidated financial statements in the annual
 report. Accordingly, the annual report 2012 13 does not contain the
 financial statements of our subsidiary. However, the statement as
 required under Section 212 of the Companies Act, 1956 in respect of the
 Subsidiaries of the Company is annexed and forms part of this Report.
 The audited annual accounts and related information of our subsidiary,
 where applicable, will be made available for inspection during office
 hours on all working days (except Saturdays, Sundays and Public
 holidays) between 11.00 a.m. to 01.00 p.m. up to the date of the Annual
 General Meeting.
 The consolidated financial statements, in terms of Clause 32 of the
 Listing Agreement and prepared in accordance with Accounting Standard
 21 as specified in Companies (Accounting Standards) Rules, 2006 also
 forms part of this annual report.
 Your Company is committed to maintain high standards of Corporate
 Governance. A separate section on Corporate Governance forming part of
 the Directors Report and the certificate from Practicing Company
 Secretaries confirming compliance of Corporate Governance norms as
 stipulated in Clause 49 of the Listing Agreement with Madras Stock
 Exchange Limited (MSE) and Bombay Stock Exchange Ltd., (BSE) is
 included in the Annual Report
 Today, society expects corporate to go beyond the statutory compliances
 and putting something back into society. Caplin Point as a Company is
 aware of the expectation from the society with respect to social
 Your Company is committed to developing its business towards
 ecological, social and economic sustainability. Your Company rather
 sees Corporate Social Responsibility as a new business strategy to
 reduce investment risks and maximise profits by taking all the key
 stakeholders into confidence. All activities and initiatives are
 planned specific to the needs of the target stakeholders. The ultimate
 objective is to see that each business decision takes into account its
 social impact and accordingly plans an intervention to mitigate the
 impacts arising out of that decision. As a part of initiative, we have
 installed at Caplin Point''s manufacturing facilities the most advanced
 anti pollution devices to keep the environment in and around the
 manufacturing facilities clean and green.
 Pursuant to clause 49 of the Listing Agreement with the Stock
 Exchanges, we annex herewith a Statement on Management Discussion and
 Analysis which forms part of the Directors'' report.
 The informations required under section 217(1 )(e) of the Companies
 Act, 1956 read with the Companies (Disclosure of Particulars in the
 Report of Board of Directors) Rules, 1988 are given in the Annexure
 forming part of this report.
 During the year 2012 13, none of the employees were in receipt of
 remuneration above the limits fixed in terms of Section 217(2A) of the
 Companies Act, 1956 read with the Companies (Particulars of Employees)
 Rules, 1975 in the said section.
 Quality and best practices define the foundation of a company. Caplin
 point has a comprehensive quality policy which ensures that the quality
 consciousness and culture is spread across the company. The following
 initiatives have helped the company to leverage its pursuit towards
 implementation of quality systems and manufacturing of high quality
 A Corporate Quality Assurance unit has been set up by Caplin point to
 function independently and report to the board on matters related to
 The Quality assurance teams in our manufacturing sites are also being
 strengthened and expanded.
 A standard procedure for Vendor evaluation implemented to ensure that
 all the materials are supplied by approved vendors and with right
 quality consistently.
 Contract manufacturing sites are being audited for the GMP
 implementation before entering into any commercial agreement.
 Quality Management system has been implemented across all
 manufacturing units. All the incidents, deviations, failures are
 recorded and investigated. The corrective and preventive actions are
 properly implemented.
 Training programs on GMP, QMS and process related SOPs are being
 conducted in all units
 Finished Goods release inspections are being conducted meticulously
 by all units.
 Product Development ( R&D) has been given lot of importance and a
 dedicated facility has been created in Gummidipoondi in Chennai.
 Product Stability studies are being conducted as per the
 international requirements (ICH guidelines) and the data is evaluated
 Studies forProcess improvements are being done in the new R&D lab.
 Quality control laboratories are being equipped with sophisticated
 equipments like HPLCs, stability chambers etc.,
 The Company has not accepted any fixed deposits and, as such, no amount
 of principal or interest was outstanding as of the Balance Sheet date.
 Retirement by rotation
 In accordance with the requirements of the Companies Act, 1956 and
 Article 99 of Articles of Association of the Company, Mr. P. T. Baby
 Thomas, Director of the Company will retire by rotation at the ensuing
 Annual General Meeting and being eligible, offer himself for re
 Re Appointment of Mr, M.Jayapal as Managing Director
 In view of the 2 year tenure of Mr. M. Jayapal as Managing Director of
 the Company coming to an end on 27th March 2013, the Board of Directors
 of the Company had at its meeting held on 9'' May, 2013 approved the re
 appointment of Mr. M. Jayapal as Managing Director of the Company for a
 further period of 1 year with effect from 28th March 2013 on a
 remuneration of Rs. 59,400/ p.m.
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
 confirm that:
 (i) they accept responsibility for the integrity and objectivity of
 these accounting statements;
 (ii) the financial statements are prepared in accordance with the
 guidelines and standards of the ICAI and Companies Act 1956, to the
 extent applicable. There are no material departures from the above
 mentioned standards;
 (ii) such standard accounting policies have been applied consistently,
 except as otherwise stated;
 (iv) the judgments and estimates have been made on a reasonable and
 prudent basis so that the financial statements provide a true and fair
 view of the state of affairs of the Company at the end of the financial
 (v) the directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities;
 (vi) the Annual Accounts are prepared on agoing concern basis and on an
 accrual basis.
 The Auditors, M/s. M. Raghunath & Co, Chartered Accountants, Chennai ,
 who retire at the conclusion of the ensuing Annual General Meeting have
 expressed their desire not to seek re appointment. Notice has been
 received from a Member proposing the appointment of M/s CNGSN &
 Associates, Chartered Accountants as Auditors of the Company to hold
 office till the conclusion of the next Annual General Meeting. M/s
 CNGSN & Associates have given their consent to be the Auditors of the
 company and have also confirmed that their appointment will be in
 accordance with the limits specified in Section 224(1 B) of the
 Companies Act 1956.
 CNGSN & Associates is a firm of Chartered Accountants providing
 comprehensive audit, taxation and consulting services, established in
 1990 in Chennai, India.
 Accordingly the notice for appointment of CNGSN & Associates have been
 proposed along with the letter received from a Member proposing their
 appointment as Statutcy Auditors.
 Mr. G.Thangaraj, Cost Accountant, has been appointed as the Cost
 Auditor for audit of the cost accounting records of the Company for the
 financial year ended June 30, 2013. The Cost Audit Reports relating to
 the financial year 2012 2013 shall be filed within the stipulated time
 Generally the Industrial relations with the employees of the Company
 continued to be stable, cordial and satisfactory during the financial
 Go Green initiatives to conserve resources has been initiated in the
 Company. Steps required for conserving power across all Factories are
 being undertaken. The Company has also taken initiatives within its
 office buildings to reduce electrical power, water and paper
 consumption. These initiatives shall be taken forward at a sustained
 Your Directors place on record their sincere thanks to the Central
 Government and State Governments of Tamilnadu, Puducherry and Himachal
 Pradesh for their continued support to the Company.
 Your Directors wish to thank the Company''s Customers, Manufacturers,
 Dealers, Banks and Shareholders for their continued support to your
 Company''s performance and growth. Your Directors also wish to place on
 record their appreciation of the contribution made by all the employees
 of the Company resulting in good performance during the year under
                            On behalf of the Board of Directors
 Place: Chennai             C C Paarthipan       M Jayapal
 Date : November 7, 2013    Chairman Managing    Director
Source : Dion Global Solutions Limited
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