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Capricorn Systems Global Solutions Ltd.

BSE: 512169 Sector: IT
NSE: N.A. ISIN Code: INE968E01012
BSE 00:00 | 06 Jul 5.72 0
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NSE 05:30 | 01 Jan Capricorn Systems Global Solutions Ltd
OPEN 5.72
PREVIOUS CLOSE 5.72
VOLUME 100
52-Week high 19.90
52-Week low 5.72
P/E 63.56
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.72
CLOSE 5.72
VOLUME 100
52-Week high 19.90
52-Week low 5.72
P/E 63.56
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company auditors report

To

The Members of

Capricorn Systems Global Solutions Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Capricorn Systems GlobalSolutions Limited ("the Company") which comprises the Balance Sheet as at March31 2017 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

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 financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true andfair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2017 its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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.

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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) The Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this report are in agreement with books ofaccounts.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting tandards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; (e) Based on written representations received from thedirectors as on 31st March 2017 and taken on record by the Board of Directors none ofthe directors disqualified as on 31st March 2017 from being appointed as a director interms 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 'Annex-ure B'.

(g) 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 in our opinionand to the best of our information and according to the explanations given to us: i) Thereare no pending litigations on the company as on the balance sheet. ii) The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses. iii) There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company. iv) The Companyhas provided requisite disclosures in Note '7' to these financial statements as toholdings as well as dealings of Specified Bank Notes during the period from November 82016 to December 30 2016. Based on our enquiries test check of the books of account andother details maintained by the Company and relying on the management representationregarding the holding and nature of cash transactions including Specified Bank Notes wereport that these disclosures are in accordance with the books of accounts maintained bythe Company.

for Satyanarayana & Co

Chartered Accountants FRN No. 003680S

Place: Hyderabad. G. Venkat Rathnam Date: 29-05-2017 Partner Membership No.19455

Annexure A' referred to in paragraph 7 of our report of even date:

(i) (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 andno material discrepancies were identified on such verification.

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

(ii) The clause relating to inventories is not applicable to the company.

(iii) The Company has not granted any loans to parties covered in the registermaintained under section 189 of the Act.

(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) (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. According to the informationand explanations given to us no undisputed amounts payable in respect of outstandingstatutory dues as at the last day of the year ending 31st March2017 for period exceeding6 months from the date they became payable.

(b) There are no statutory dues which are pending to be paid on account of anylitigation as At 31st March 2017.

(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 Government or Debenture holders as at the Balance Sheet date.

(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. (x) Based upon the audit procedures performed forthe purpose of reporting the true and fair view of the financial statements and as per theinformation and explanations given by the management we report that no fraud on or by theCompany has been noticed or reported during the year.

(xi) In our opinion the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund /society. Therefore the provisions of clause 3(xii) of the Order are not applicable to theCompany.

(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) The Company has not made any preferential allotment of shares during the year.

(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 Satyanarayana & Co

Chartered Accountants FRN No. 003680S

Place: Hyderabad. G. Venkat Rathnam Date: 29-05-2017 Partner Membership No.19455

Annexure 'B'

Annexure to the independent auditor's report of even date on the Financial Statementsof Capricorn Systems Global Solutions Limited. Report on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of section 143 of the Companies Act 2013 ("theAct"). We have audited the internal financial controls over financial reporting ofCapricorn Systems Global Solutions Limited ("the Company") as of March 312017in conjunction with our audit of the financial statements of the Company for the yearended 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 control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

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 section 143(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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India. Chartered Accountants of India. for Satyanarayana & Co

Chartered Accountants FRN No. 003680S

Place: Hyderabad. G. Venkat Rathnam Date: 29-05-2017 Partner Membership No.19455