Caplin Point Laboratories

@manhar Thanks for the explanation. What I meant was not how a normal advance mechanism will show up on the balance sheet. I wanted to understand @phreakv6 statement that Caplin was booking revenues by supplying to channel partners but this was under-reported in profits and shown as advances from customers.

I had two questions emanating from this

1. Why would a company do this in the first place? Why would someone under-report profit?
2. How from an accounting point of view can a company shift profits from sale of products to advances from customers?