Mar 31, 2015
We have audited the accompanying financial statements of Capricorn
Systems Global Solutions Limited ("the Company"), which comprise the
Balance Sheet as at March 31,2015, the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial control that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing, issued by the
Institute of Chartered Accountants of India, as specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Company's Directors, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India of the state of affairs of the Company as at March 31,2015, its
Profit , and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure 1 a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. 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 best of 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 the Company so far as it appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion 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 financial position;
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH (1) OF THE REPORT OF EVEN DATE:
Re: Capricorn Systems Global Solutions Limited('the Company')
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details
and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during
the period and no material discrepancies were identified on such
verification.
(ii) The Clauses relating to the physical verification of inventories,
maintenance of records of inventory is not applicable to the Company as
the company is engaged in the development of software and there are no
inventories in the operations of the Company.
(iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013. Accordingly, the provisions of clause 3
(iii) (a) to (b) of the Order are not applicable to the Company and
hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of fixed assets, and with regard to
the sale of services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
(v) The Company has not accepted any deposits from the public
(vi) The provisions of clause 3(vi) of the Order realting to the
maintenance of the cost records is not applicable to the Company
(vii) (a) Undisputed statutory dues including provident fund, employees'
state insurance, income-tax, sales-tax, customs duty and other material
statutory dues have generally been regularly deposited with the
appropriate authorities. The provisions relating to wealth-tax,
service-tax, excise duty and cess are not applicable to the Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income-tax, sales-tax, wealth-tax, service tax,
customs duty, excise duty, cess and other material statutory dues were
outstanding, at the period end, for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of income tax, sales-tax, wealth-tax, service tax, customs
duty, excise duty and cess which have not been deposited on account of
any dispute.
(d) According to the information and explanations given to us, there
are no amount which are reuired to the dealth with as per the
provisions of investor education and protection fund in accordance with
the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder.
(viii) The company does not have any accumulated losses. The company
has not suffered any cash losses during the financial year covered by
the audit and also in the immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) The Company has not raised any new term loans during the year.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
for SATYANARAYANA & Co
CHARTERED ACCOUNTANTS
FRN No. 003680S
Place: Hyderabad. J. JAGANNADHA RAO
Date: 28th May '15 Partner
Membership No. 006239
Mar 31, 2014
We have audited the accompanying financial statements of Capricorn
Systems Global Solutions Limited ("the Company"), which comprise the
Balance Sheet as at March 31,2014, and the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flow of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") ( Which continue to be applicable in respect of
Section 133 of the Companies Act''2013 in terms of General Circular
15/2013 dated 13th September''2013 of Ministry of Corporate Affairs) and
in accordance with the accounting principles generally accepted in
India . This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d) in our opinion, the Balance Sheet, and Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act ( Which continue to be applicable in respect of
Section 133 of the Companies Act''2013 in terms of General Circular
15/2013 dated 13th September''2013 of Ministry of Corporate Affairs).;
e) on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH (1) OF THE REPORT OF EVEN DATE:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were notice on such verification.
(c) In our opinion, the Company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected
(ii) The Clauses relating to the physical verification of inventories,
maintenance of records of inventory is not applicable to the Company as
the company is engaged in the development of software and there are no
inventories in the operations of the Company.
(iii) In respect of loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company has not taken any loans from parties mentioned in the
register maintained under section 301 of the Companies Act''1956.
b) There are no loans which are given during the year.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of fixed assets, and with regard to
the sale of services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of contract or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975with regard to the deposits accepted form the
public.
(vii) The Company has an internal audit system, the scope of the same
need to be increase so as to be commensurate with the size and nature
of the business.
(viii) In our opinion and according to the information and explanations
given to us, the Central Government has not specified maintenance of
cost records under section 209 (1) (d) of the Companies Act, 1956 to
the company for the year under audit.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employees'' state insurance, sales tax, wealth tax, custom duty, excise
duty, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of wealth tax, sales tax, customs
duty, excise duty and cess were in arrears, as at 31st March '' 2014 for
a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, there are
no dues of sale tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
(x) The company does not have any accumulated losses. The company has
not suffered any cash losses during the financial year covered by the
audit and also in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company is regular in payment of dues to the NBFCs
from which it has availed Hire Purchase Loan.
(xii) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore clause 4(xiii) of the Companies
(Auditor''s Report) Order''2003 is not applicable to the Company.
(xiv) In our opinion and according to the information and explanation
given to us the Company is not dealing in shares and securities.
(xv) In our opinion and according to the information and explanations
given to us the Company has not given guarantees for the loans taken by
others from Banks or Financial Institutions.
(xvi) The Company has not raised any new term loans during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment, No long term loan funds have been used to finance short
terms assets expect permanent working capital.
(xviii) The Company has not made any preferential allotment of shares
to parties and the Companies covered in the Register maintained under
Section 301 of the Companies Act''1956 during the year.
(xix) The Clause 4(xix) of the Companies (Audit Report) Order 2003
relating to the creation of security for the Debentures is not
applicable to the Company as no debentures are raised by the Company.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
that caused the financial statements to be materially misstated.
for SATYANARAYANA & Co
CHARTERED ACCOUNTANTS
FRN No. 003680S
Place: Hyderabad. J. JAGANNADHA RAO
Date: 29-05-2014 Partner
Membership No. 006239
Mar 31, 2012
We have audited the attached Balance Sheet of Capricorn Systems Global
Solutions Limited' Hyderabad st as on 31 March à 2012 and also the
Profit and Loss Account for the Year Ended on that date annexed thereto
and Cash Flow Statement for the period ended on that date. These
financial statements are the responsibility of the CompanyÃs
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining' on test basis' evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management' as well as evaluating the over all financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (AuditorÃs Report) Order' 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act' 1956 and on the basis of such checks
of the books and records of the Company as we consider appropriate and
according to the information and explanations given to us' We give in
the annexure a statement on the matters specified in paragraph 4 and 5
of the said Order.
2. Our comments on the accounts are as under:
a) Balances appearing under Sundry Debtors' Loans and Advances are
subject to confirmation and / or reconciliation.
b) According to the information and the explanations given to us' the
Company does not have any over à dues to SSI units and hence no
provision for interest is made in accounts.
3. Subject to our observations in the annexure referred to in
paragraph (1) and our comments in paragraph
(2) above' We report that:
a) We have obtained all the information and explanations' which to the
best of 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 the Company so far as it appears from our examination of such
books.
c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the Books of Account.
d) In our opinion the Balance sheet and Profit and Loss Account are in
compliance with the Accounting Standards referred to in Sec. 211 (3C)
of the companies Act' 1956' excepting in relation to Accounting
Standard 22 on Accounting for Taxes on Income.
e) In our opinion' and based on the information and explanations given
to us' none of the
st Directors of the Company are disqualified as on 31 March Ã2012 from
being appointed as a Director under clause (g) of sub à section (1) of
Section 274 of the Companies Act' 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us' the said Balance Sheet and Profit and
Loss Account read together with the significant accounting polices and
notes thereon' give the information required by the Companies Act'
1956' in the manner so required and give a true and fair view:
i) In so far as it relates to the Balance sheet' of the state of
affairs of the Company as on 31 of March 2012 and
ii) In so far as it related to the Profit and Loss Account' of the
Profit of the Company for the Year ended on that date.
iii) In the case of Cash Flow Statement' of the Cash Flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (1) OF THE REPORT OF EVEN DATE:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us' the fixed assets have been physically verified
by the management during the year which' in our opinion' is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were notice on such verification.
(c) In our opinion' the Company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected
(ii) The Clauses relating to the physical verification of inventories'
maintenance of records of inventory is not applicable to the Company as
the company is engaged in the development of software and there are no
inventories in the operations of the Company.
(iii) In respect of loans' secured or unsecured' granted or taken by
the Company to/from companies' firms or other parties covered in the
register maintained under Section 301 of the Companies Act' 1956:
a) The Company has not taken any loans from parties mentioned in the
register maintained under section 301 of the Companies ActÃ1956.
b) There are no loans which are given during the year.
(iv) I n our opinion and according to the information and explanations
given to us' there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of fixed assets' and with regard to
the sale of services. During the course of our audit' we have not
observed any major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us' we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act' 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us' the transaction made in pursuance of contract or
arrangements entered in the register maintained under section 301 of
the Companies Act' 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us' the Company has complied with the provision of sections
58A and 58AA of the Companies Act' 1956 and the Companies (Acceptance
of Deposits) Rules' 1975with regard to the deposits accepted form the
public.
(vii) The Company has an internal audit system' the scope of the same
need to be increase so as to be commensurate with the size and nature
of the business.
(viii) In our opinion and according to the information and explanations
given to us' the Central Government has not specified maintenance of
cost records under section 209 (1) (d) of the Companies Act' 1956 to
the company for the year under audit.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund' investor education protection fund' employeesà state insurance'
sales tax' wealth tax' custom duty' excise duty' cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in st respect of wealth tax' sales tax'
customs duty' excise duty and cess were in arrears' as at 31 March Ã
2012 for a period of more than six months from the date they became
payable.
(c) According to the information and explanation given to us' there are
no dues of sale tax' income tax' customs duty' wealth tax' excise duty
and cess which have not been deposited on account of any dispute.
(x) The company does not have any accumulated losses. The company has
not suffered any cash losses during the financial year covered by the
audit and also in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us' the Company is regular in payment of dues to the NBFCs
from which it has availed Hire Purchase Loan.
(xii) In our opinion and according to the information and explanation
given to us' no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares' debentures and other
securities.
(xiii) In our opinion' the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore clause 4(xiii) of the Companies
(AuditorÃs Report) OrderÃ2003 is not applicable to the Company.
(xiv) In our opinion and according to the information and explanation
given to us the Company is not dealing in shares and securities.
(xv) In our opinion and according to the information and explanations
given to us the Company has not given guarantees for the loans taken by
others from Banks or Financial Institutions.
(xvi) The Company has not raised any new term loans during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company' we report
that no funds raised on short term basis have been used for long term
investment' No long term loan funds have been used to finance short
terms assets expect permanent working capital.
(xviii) The Company has not made any preferential allotment of shares
to parties and the Companies covered in the Register maintained under
Section 301 of the Companies ActÃ1956 during the year.
(xix) The Clause 4(xix) of the Companies (Audit Report) Order 2003
relating to the creation of security for the Debentures is not
applicable to the Company as no debentures are raised by the Company.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us' no
fraud on or by the Company has been noticed or reported during the year
that caused the financial statements to be materially misstated.
for SATYANARAYANA & Co
CHARTERED ACCOUNTANTS
FRN No. 003680S Sd/-
Place: Hyderabad. J. JAGANNADHA RAO
Date: 30 May 2012 Partner
Membership No. 006239