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Capricorn Systems Global Solutions Ltd.

BSE: 512169 Sector: IT
NSE: N.A. ISIN Code: INE968E01012
BSE 00:00 | 12 Mar 9.11 0
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NSE 05:30 | 01 Jan Capricorn Systems Global Solutions Ltd
OPEN 9.11
PREVIOUS CLOSE 9.11
VOLUME 10
52-Week high 9.14
52-Week low 5.44
P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.28
Buy Qty 500.00
Sell Price 9.10
Sell Qty 990.00
OPEN 9.11
CLOSE 9.11
VOLUME 10
52-Week high 9.14
52-Week low 5.44
P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.28
Buy Qty 500.00
Sell Price 9.10
Sell Qty 990.00

Capricorn Systems Global Solutions Ltd. (CAPRICORNSYSTEM) - Auditors Report

Company auditors report

To

The Members of

Capricorn Systems Global Solutions Limited

Opinion

We have audited the accompanying Ind AS financial statements of Capricorn SystemsGlobal Solutions Limited ("the Company") which comprises the Balance Sheet asat March 31 2019 the Statement of Profit and Loss(including Other Comprehensive Income)the statement of changes in equity and the statement of and Cash Flows for the year thenended and a summary 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 standalone Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and its Profit total comprehensive income the changes in equity andits cash flows for the year ended on that date

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 Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including Other Comprehensive Income cashflows and changes in equity of the Company in accordance with accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 andthe Companies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Report on Other Legal and Regulatory Requirements

1. 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 bestof our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany sofar as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with books of accounts.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules 2015 asamended;

(e) Based on writtehn representations received from the directors as on 31st March2019 and taken on record by the Board of Directors none of the directors disqualified ason 31st March 2019 from being appointed as a director in terms of section 164 (2) of theAct.

(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 B'.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance withRule11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) There are no pending litigations on the company as on the balance sheet.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the 'Annexure A' a statement on the matters specified in paragraphs 3and 4 of the Order.

for CMT & ASSOCIATES
Chartered Accountants
FRN No. 0115158
Place: Hyderabad. CA Muneesh Babu S
Date: 29-05-2019 Partner
Membership No. 242526

Annexure 'A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Capricorn System Global Solutions Limited of evendate):

i. In respect of the Company's fixed Assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. Fixed assets have been physically verified by the management during the period andnomaterial discrepancies were identified on such verification.

c. Based upon the audit procedure performed and according to the records of theCompanytitle deeds of all the immovable properties are held in the name of the Company.

ii. The Company is in the business of providing software services and does not have anyphysical inventories. Accordingly reporting under clause 3 (ii) of the Order is notapplicable to the Company.

iii. The Company has not granted any loans to parties covered in the registermaintained under section 189 of the companies Act2013.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of Act in respect ofloans investments guarantees and security to the extent applicable to it.

v. According to the information and explanations given to us the company has notaccepted any deposit from the public within the meaning of section 73 to 76 of the Act andthe rules framed thereunder. Therefore the provision of clause 3(v) of the order is notapplicable to the Company.

vi. The Central Government has not prescribed maintenance of cost records under theprovisions of Section 148(1) of the Companies Act 2013 to the company.

vii. According to the information and explanations given to us in respect of statutorydues:

a. The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees State Insurance Income tax and otherapplicable statutory dues with the appropriate authorities.

b. According to the information and explanations given to us no undisputed amountspayable in respect of outstanding statutory dues as at the last day of the year ending31st March2019 for period exceeding 6 months from the date they became payable.

c. There are no statutory dues which are pending to be paid on account of anylitigation as at 31stMarch 2019.

viii. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of dues to anyfinancial institution bank and Government or Debenture holders as at the Balance Sheetdate.

ix. According to the information and explanations given to us and based on ourverification the Company has not raised moneys by way of public issue and company has notraised any Term loans during the year and hence reporting under clause 3 (ix) of the Orderis not applicable to the Company.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or 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 3 (xii) of theOrder is not applicable to the Company.

xiii. In our opinion all the transactions with the related parties are in compliancewith section 177 and 188 of the Act where applicable and the details have been disclosedin the financial statements as required by applicable accounting standard.

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

xv. According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has notentered into any non-cash transaction with directors or persons connected with him.

xvi. In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

for CMT & ASSOCIATES
Chartered Accountants
FRN No. 0115158
Place: Hyderabad. CA Muneesh Babu S
Date: 29-05-2019 Partner
Membership No. 242526

ANNEXURE 'B' TO THE INDEPENDENT AUDIT REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Capricorn Systems Global SolutionsLimited of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the Companies Act 2013 ("the Act"). We have audited the internalfinancial controls over financial reporting of Capricorn Systems Global Solutions Limited("theCompany") as of March 31 2019 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.

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 controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under sec-tion143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 misstatements of the financial statements whether due to fraud or error.

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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransaction are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisitions use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitation 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 to 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 31 2019 based on the internal controlsover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

for CMT & ASSOCIATES
Chartered Accountants
FRN No. 0115158
Place: Hyderabad. CA Muneesh Babu S
Date: 29-05-2019 Partner
Membership No. 242526