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Capri Global Capital Ltd.

BSE: 531595 Sector: Financials
NSE: CGCL ISIN Code: INE180C01026
BSE 00:00 | 26 Feb 370.80 4.75
(1.30%)
OPEN

370.00

HIGH

372.80

LOW

354.00

NSE 00:00 | 26 Feb 370.90 4.80
(1.31%)
OPEN

362.00

HIGH

373.90

LOW

351.95

OPEN 370.00
PREVIOUS CLOSE 366.05
VOLUME 190640
52-Week high 399.00
52-Week low 115.00
P/E 41.76
Mkt Cap.(Rs cr) 6,500
Buy Price 370.80
Buy Qty 10.00
Sell Price 371.25
Sell Qty 48.00
OPEN 370.00
CLOSE 366.05
VOLUME 190640
52-Week high 399.00
52-Week low 115.00
P/E 41.76
Mkt Cap.(Rs cr) 6,500
Buy Price 370.80
Buy Qty 10.00
Sell Price 371.25
Sell Qty 48.00

Capri Global Capital Ltd. (CGCL) - Auditors Report

Company auditors report

To the Members of Capri Global Capital Limited REPORT ON THE AUDIT OF THE STANDALONEFINANCIAL STATEMENTS

OPINION

We have audited the accompanying Standalone Financial Statements of Capri GlobalCapital Limited (the "Company”) which comprise the Balance Sheet as at March312020 and the Statement of Profit and Loss including Other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 (the "Act”) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS”) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 312020 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

BASIS FOR OPINION

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility 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 theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the Standalone Financial Statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the Standalone Financial Statements.

EMPHASIS OF MATTER

We draw attention to Note 33 to the Standalone Financial Statements which describesthat the potential impact of the COVID-19 Pandemic on the Company's Standalone FinancialStatements are dependent on future developments which are highly uncertain.

Our opinion is not modified in respect of this matter.

KEY AUDIT MATTERS

Key audit matters (KAM) are those matters that in our professional judgment were ofmost significance in our audit of the Standalone Financial Statements of the currentperiod. 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 matters described below to bethe key audit matters to be communicated in our report.

Sr. No. 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.
The completeness and accuracy of the interest income computed on EIR basis therefore is KAM. We tested the portfolio level computations of interest income on EIR basis and traced the total EIR income to the Standalone Financial Statement.
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 examined Board Policy approving methodologies for computation of ECL that address policies procedures and controls for assessing and measuring credit risk on all lending exposures commensurate with the size complexity and risk profile specific to the Company. The parameters and assumptions used and their rationale and basis are clearly documented.
• Timely identification and classification of the impaired loans and We evaluated the design and operating effectiveness of controls across the processes relevant to ECL including the judgements and estimates.
• Determination of probability of defaults (PD) and estimation of loss given defaults (LGD) based on the value of collaterals and relevant factors These controls among others included controls over the allocation of assets into stages including management's monitoring of stage effectiveness model monitoring including the need for post model adjustments model validation credit monitoring multiple economic scenarios individual provisions and production of journal entries and disclosures.
The estimation of Expected Credit Loss (ECL) on financial instruments involve significant judgements and estimates. Following are points with increased level of audit focus:
• Classification of assets to stage 1 2 or 3 using criteria in accordance with Ind AS 109 which also include considering the impact of recent RBI's Covid-19 regulatory circulars; We tested the completeness of loans and advances included in the Expected Credit Loss calculations as of March 31 2020 by reconciling it with the balances as per loan balance register and loan commitment report as on that date.
• Accounting interpretations modelling assumptions and data used to build and run the models; We tested assets in stage 1 2 and 3 on sample basis to verify that they were allocated to the appropriate stage.
• Measurement of individual borrowers' provisions including Covid-19 impact assessment of multiple economic scenarios; For samples of exposure we tested the appropriateness of determining EAD PD and LGD.
• Inputs and Judgements used in determination of Management overlay at various asset stages considering the current uncertain economic environment with the range of possible effects unknown to the country arising out of the COVID 19 Pandemic and For exposure determined to be individually impaired we tested a samples of loans and advances and examined Management's estimate of future cash flows assessed their reasonableness and checked the resultant provision calculations.
• The disclosures made in Financial Statements for ECL especially in relation to judgements and estimates by the Management in determination of the ECL. Refer Note 33 to the Standalone Financial Statements. We performed an overall assessment of the ECL provision levels at each stage including Management's assessment on Covid-19 impact to determine if they were reasonable considering the Company's portfolio risk profile credit risk Management practices and the macroeconomic environment.
We assessed the adequacy and appropriateness of disclosures in compliance with the Ind AS 107 in relation to ECL especially in relation to judgements used in estimation of ECL provision.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS' REPORT THEREON

• The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Management Discussion andAnalysis and Directors Report (the "Reports”) but does not include theStandalone Financial Statements and our Auditors' Report thereon. The Reports are expectedto be made available to us after the date of this Auditors' Report.

• Our opinion on the Standalone 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 Standalone 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 a materialmisstatement 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 matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingOther Comprehensive Income Cash Flows and Changes in Equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone Financial Statements Management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessManagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

AUDITORS' RESPONSIBILITY FOR THE AUDIT OF THE NAME="bookmark6">STANDALONEFINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an Auditor's Report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)0) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the Management.

• Conclude on the appropriateness of Management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our Auditor's Report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourAuditor's Report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore KAM. We describe these matters in our Auditor'sReport 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 we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid Standalone Financial Statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312020 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A”. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the

Company to its directors during the year is in accordance with the provisions ofsection 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 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in Note 47 to its Financial Statements as at March 312020;

ii. The Company did not have any long-term contracts including derivative contracts asat year-end for which there were any material foreseeable losses; and

iii. There has been no delay in transferring amounts required to be transferred tothe 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) of the Act we give in"Annexure B” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm Registration No.117366W/W-100018)
Sd/- G. K. Subramaniam
Partner
Place: Mumbai (Membership No. 109839)
Date: May 9 2020 UDIN: 20109839AAAAFY7185

ANNEXURE “A" TO THE INDEPENDENT AUDITORS' REPORT

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

REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OFSUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 (“THE ACT”)

We have audited the internal financial controls over financial reporting of CapriGlobal Capital Limited ("the Company”) as of March 31 2020 in conjunction withour audit of the Standalone Financial Statements of the Company for the year ended on thatdate.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India” (the "GuidanceNote”). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the StandaloneFinancial Statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper Management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312020 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note.

For Deloitte HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No.117366W/W-100018)
Sd/- G. K. Subramaniam
Partner
Place: Mumbai (Membership No. 109839)
Date: May 9 2020 UDIN: 20109839AAAAFY7185

ANNEXURE "B” TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our Report of even date)

(i) (a) According to the information and explanations given to us the Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed / transfer deed /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 and explanationsgiven 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 and explanationsgiven 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 and explanationsgiven to us the Company has not granted any loans made investments or provide guaranteesunder the provisions of Sections 185 and 186 of the Act and hence reporting under clause3(iv) of the Order is not applicable.

(v) To the best of our knowledge and according to the information and explanationsgiven to us the Company has not accepted any public deposit during the year and no orderin this respect has been passed by the Company Law Board or National Company Law Tribunalor the Reserve Bank of India or any Court or any other Tribunals in regards to theCompany.

(vi) To the best of our knowledge and according to the information and explanationsgiven to us the Central Government has not prescribed the maintenance of cost recordsunder section 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 and explanationsgiven to us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income tax Goods and Service Taxand cess to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income tax Goods and Service Tax and cess as at March 312020 for aperiod of more than six months from the date they became payable.

(c) Details of dues of Income tax which has not been deposited as on March 312020 onaccount of disputes are given below:-

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount (Rs)
Income Tax Act 1961 Regular Assessment u/s 143(3) of the Act CIT (Appeals) AY 2017-18 2901192

There are no dues of Provident Fund Employees' state insurance and Goods and ServiceTax as on March 31 2020 on account of disputes.

(viii) To the best of our knowledge and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tobanks financial institution and dues to debenture holders. The Company has not taken anyloan from government.

(ix) To the best of our knowledge and according to the information and explanationsgiven to us the money raised by way of the term loans have been applied by the Companyduring the year for the purposes for which they were raised other than temporarydeployment pending application of proceeds. The Company has not raised moneys by way ofinitial public offer/ further public offer (including debt instruments).

(x) To the best of our knowledge and according to the information and explanation givento us no fraud by the Company and no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) To the best of our knowledge and according to the information and explanationsgiven to us the Company is in compliance with Sections 188 and 177 of the Act whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Standalone Financial Statements as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.

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

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

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm Registration No.117366W/W-100018)
Sd/-
G. K. Subramaniam
Partner
Place: Mumbai (Membership No. 109839)
Date: May 9 2020 UDIN: 20109839AAAAFY7185

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