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Capri Global Capital Ltd.

BSE: 531595 Sector: Financials
NSE: CGCL ISIN Code: INE180C01026
BSE 00:00 | 19 Feb 210.20 -4.55
(-2.12%)
OPEN

213.90

HIGH

215.60

LOW

208.50

NSE 00:00 | 19 Feb 211.70 -2.10
(-0.98%)
OPEN

212.35

HIGH

215.85

LOW

207.20

OPEN 213.90
PREVIOUS CLOSE 214.75
VOLUME 204040
52-Week high 230.00
52-Week low 123.90
P/E 24.67
Mkt Cap.(Rs cr) 3,682
Buy Price 210.20
Buy Qty 13.00
Sell Price 210.20
Sell Qty 100.00
OPEN 213.90
CLOSE 214.75
VOLUME 204040
52-Week high 230.00
52-Week low 123.90
P/E 24.67
Mkt Cap.(Rs cr) 3,682
Buy Price 210.20
Buy Qty 13.00
Sell Price 210.20
Sell Qty 100.00

Capri Global Capital Ltd. (CGCL) - Auditors Report

Company auditors report

To the Members of Capri Global Capital Limited

Report on the Audit of the Standalone Financial

Statement

Opinion

We have audited the accompanying standalone financial statements ofCapri Global Capital Limited (the "Company") which comprise the Balance Sheetas at 31st March 2019 and the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and and a summary of significant other explanatory information. In our opinion andto the best of our information and according to the explanations given to us theaforesaid standalone financial statements give the information required by the CompaniesAct 2013 (the "Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2019 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibility for the Audit of the Standalone Financial Statements sectionof our report.

We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the auditevidenceobtainedbyusissufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters (KAM) are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.

Key Audit Matter Auditors' Response
1 Revenue Recognition: Principal audit procedures performed:
The Company recognizes interest income using the effective rate of interest method ("EIR") as prescribed under IND AS 109. We have tested the design and operating effectiveness of the controls directly associated with the calculation and reporting of interest income using EIR on loans to customers and tested a sample of loans and recomputed EIR interest income for those loans.
The recognition of Interest income as per the EIR requires computation involving the contractual interest rate and transaction costs. We tested the portfolio level computations of interest income on EIR basis and traced the total EIR income to the standalone financial statement.
The completeness and accuracy of the interest income computed on EIR basis therefore is KAM. Relevant reference in the Accounts :- Accounting policies - Point no. 2.5 (i) Note 22 of the standalone financial statements.
2 Impairment of loans: Principal audit procedures performed:
Management estimates impairment provision using Expected Credit loss model for the loan exposure. Measurement of loan impairment involves application of significant judgement by the management. The most significant judgements are: We tested the design and effectiveness of internal controls implemented by the management for the following:
a. Identification and classification of loans which have impaired in correct buckets
Timely identification and classification of the impaired loans and b. Validation of the Model used for the impairment provision
Determination of probability of defaults (PD) and estimation of loss given defaults (LGD) based on the value of collaterals and relevant factors c. Management's judgement applied for the key assumptions used for the purpose of determination of impairment provision
d. Completeness and accuracy of the data inputs used
We tested the completeness and accuracy of data including the bucketing of loans into delinquency bands and the calculation of PDs and LGDs. We critically assessed and tested the key underlying assumptions and significant management.
judgements used by the
For loans identified by management as potentially impaired on a sample basis checked the calculation of the impairment critically assessed the underlying assumptions and corroborated these to supporting evidence.
We examined a sample of loans which had not been identified by management as potentially impaired (Stage 1 and 2 assets) and formed our own judgement as to whether that was appropriate through reviewing information such as the counterparty's payment history.

Information Other than the Financial Statements and Auditors'Report Thereon

• The Company's Board of Directors is responsible for theother information. The other information comprises the information included in theManagement Discussion and Analysis and Directors Report (the "Reports") butdoes not include the standalone financial statements and our auditors' reportthereon. The Reports are expected to be made available to us after the date of thisauditors' report.

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

In connection with our audit of the standalone financial statementsour responsibility 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.

Management's Responsibility for the Standalone

Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive incomecashflowsand changes in equity of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the standalone financialstatements management is responsible for assessing the Company's ability to continueas a going concern disclosing as applicable matters related to going concern and usingthe going concern basis of accounting unless management doubt on either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditors' Responsibility for the Audit of the

Standalone Financial 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 auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise We professionaljudgment 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.Theriskofnot audit findings detecting amaterial deficiencies in internal controlmisstatement resulting from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to theaudit in 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 the management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or the conditions that may cast significantCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's 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 auditor's report. However future events or conditionsmay cause 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 the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. 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 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 weany significantidentify during our audit.

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 matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore KAM.

We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Other Matter

The comparative financial information of the Company for transitiondate opening balance sheet as at 1st April 2017 included in these standalone financialstatements have been prepared after adjusting previously issued the standalone financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006 tocomply with Ind AS. The previously issued standalone financial statements were audited bythe predecessor auditor whose report for the year ended 31st March 2017 dated 13th May2017 expressed an unmodifiedopinion on this standalone financial statements. Adjustmentsmade to the previously issued standalone financial statements to comply with Ind AS havebeen audited by us. Our opinion on the standalone financial statements is not modified inrespect of the matter on comparative standalone financial information.

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 explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit. b) Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. c) The Balance Sheet the Statementof Profit and Loss including Other Comprehensive Income the Cash Flow Statement andStatement of

Changes in Equity dealt with by this Report are in agreement with therelevant books of account. d) In our opinion the aforesaid standalone financialstatements comply with the Ind AS specified under Section 133 of the Act. e) On the basisof the written representations received from the directors and taken on record by theBoard of Directors none of the directors is disqualified as on 31st March 2019 from beingappointed as a director in terms of

Section 164(2) of the Act. f) With respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate

Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting. g) With respect to the other matters to beincluded in the Auditor's Report in accordance with the requirements of section197(16) of the Act as amended in our opinion and to the best of our information andaccording to the explanations given to us the remuneration paid by the Company to itsdirectors during the year is in accordance with the provisions of section 197 of the Act.h) 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 as amended in ouropinion and 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 as at 31st March 2019; ii. The Company did not have any long-term contractsincluding derivative contracts as at year-end for which there were any materialforeseeable losses; and iii. There has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For Deloitte HASKINS & SELLS LLP

Chartered Accountants

(Firm Registration No.117366W/W-100018)

G. K. Subramaniam

Partner

(Membership No. 109839)

Place : Mumbai

Date : May 3 2019

Report on the Internal Financial Controls Over Financial Reporting .

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Capri Global Capital Limited ("the Company") as of 31st March 2019in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial

Controls

The Company's management is responsible for establishingsufficient and appropriate to provide and maintaining internal financial controls based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India" (the "Guidance Note"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is basis for ouraudit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting 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 ofstandalone financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financialreporting were operating effectively as at 31st March 2019 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote.

For Deloitte HASKINS & SELLS LLP

Chartered Accountants

(Firm Registration No.117366W/W-100018)

G. K. Subramaniam

Partner

(Membership No. 109839)

Place : Mumbai

Date : May 3 2019

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

(i) (a) According to the information and explanations given to us theCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets.

(b) The fixed assets were physically verified during the year by theManagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals.According to the information and explanation given to us no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us and therecords examined by us and based on the examination of the registered sale deed / transferdeed / conveyance deed provided to us we report that the title deeds comprising of theimmovable property of the Buildings is held in the name of the Company as at the balancesheet date. In respect of immovable properties of buildings that have been taken on leaseand disclosed as fixed asset in the standalone financial statements the lease agreementsare in the name of the Company where the Company is the lessee in the agreement.

(ii) To the best of our knowledge and according to the information andexplanations given to us the

Company does not have any inventory and hence reporting under clause3(ii) of the Order is not applicable.

(iii) To the best of our knowledge and according to the information andexplanations given to us the

Company has not granted any loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act.

(iv) To the best of our knowledge and according to the information andexplanations given to us the Company has not granted any loans made investments orprovide guarantees under the provisions of Sections 185 and 186 of the Act and hencereporting under clause 3(iv) of the Order is not applicable.

(v) To the best of our knowledge and according to the information andexplanations given to us the

Company has not accepted any public deposit during the year and noorder in this respect has been passed by the Company Law Board or National

Company Law Tribunal or the Reserve Bank of India or any Court or anyother Tribunals in regards to the

Company.

(vi) To the best of our knowledge and according to the information andexplanations given to us the Central

Government has not prescribed the maintenance of cost records undersection 148(1) of the Act in respect of the services rendered by the Company.

(vii) To the best of our knowledge and according to the information andexplanations given to us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputedstatutory dues including

Provident Fund Employees' State Insurance Income-tax Goods andService Tax and cess to the appropriate authorities. There were no amounts payable inrespect of Customs Duty

Work Contract Tax and Excise Duty.

(b) There were no undisputed amounts payable in respect of ProvidentFund Employees' State Insurance Income-tax Goods and Service Tax and cess as at31st March 2019 for a period of more than six months from the date they became payable.

(c) There are no dues of Provident Fund Employees' stateinsurance Income tax and Goods and Service Tax as on 31st March 2019 on account ofdisputes.

(viii) To the best of our knowledge and according to the informationand explanations given to us the

Company has not defaulted in the repayment of loans or borrowings tobanks and dues to debenture holders. The Company has not taken any loan from governmentand financial institutions.

(ix) To the best of our knowledge and according to the information andexplanations given to us the money raised by way of the term loans have been applied bythe Company during the year for the purposes for which they were raised other thantemporary deployment pending application of proceeds. The

Company has not raised moneys by way of initial public offer/ furtherpublic offer (including debt instruments).

(x) To the best of our knowledge and according to the information andexplanation given to us no fraud by the Company and no material fraud on the Company byits officers or employees has been noticed or reported during the year except for aninstance of fraud noticed by the Management involving the officer of the Company amountingto Rs 412 lakh and the same have been suitably dealt with in the financial statements ofthe Company.

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

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable. (xiii) To the best of our knowledge andaccording to the information and explanations given to us the Company is in compliancewith Section 188 and 177 of the Act where applicable for all transactions with therelated parties and the details of related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause 3(xiv) of the Order is not applicable to the Company.

(xv) To the best of our knowledge and according to the information andexplanations given to us during the year the Company has not entered into any non-cashtransactions with its directors or persons connected with them and hence provisions ofsection 192 of the Act are not applicable.

(xvi) The Company is required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and it has obtained the registration.

For Deloitte HASKINS & SELLS LLP

Chartered Accountants

(Firm Registration No.117366W/W-100018)

G. K. Subramaniam

Partner

(Membership No. 109839)

Place : Mumbai

Date : May 3 2019