We have audited the accompanying standalone financial
statements of Capri Global Capital Limited ("the Company"),
which comprise the Balance Sheet as at March 31,2025, and the
Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and Statement of Cash
Flow for the year then ended, and notes to the standalone
financial statements, including material accounting policy
information and other explanatory information (hereinafter
referred to as the "standalone financial statements").
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 ("the Act') in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the
Act read with Companies (Indian Accounting Standards)
Rules, 2015, as amended ("Ind AS") and other accounting
principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2025, and profit (including other
comprehensive income), changes in equity and its cash flow for
the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing ("SAs") specified
under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the 'Auditor's Responsibilities
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 the Institute of Chartered
Accountants of India (the "ICAI") together with the ethical
requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code of Ethics.
We believe that the audit evidence obtained by us is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements for the year ended March
31, 2025 (current year). These matters were addressed in the
context of our audit of the standalone financial statements
as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit
matters to be communicated in our report.
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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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1
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Impairment of loans including Expected Credit Losses
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Th
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e audit procedures performed by us to assess
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("ECL"):
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appropriateness of the impairment allowance based on ECL
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Total Loans as at March 31,2025: H 1,37,895.09 millions (net
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on
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loans included the following
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of ECL)
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•
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Understood and evaluated the design and tested the
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Impairment Provision as at March 31, 2025: H 2,101.28
millions
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operating effectiveness of the key controls put in place
by the management over:
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(Refer Note 7 of the Standalone Financial Statements)
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i. the assumptions used in the calculation of ECL and its
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As per Ind AS 109 - Financial Instruments ("Ind AS 109")
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various aspects such as determination of Probability
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requires the Company to provide for impairment of its
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of Default, Loss Given Default, Exposure at Default,
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financial assets using ECL approach involving an estimation
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Staging of Loans, etc;
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of probability of loss on such financial assets, considering
reasonable and supportable information about past events,
current conditions and forecasts of future economic
conditions which could impact the credit quality of the
Company's financial assets
The estimation of impairment loss allowance on loan assets
involves significant judgement and estimates, which are
subject to uncertainty, and involves applying appropriate
measurement principles in case of loss events
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•
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ii. the completeness and accuracy of source data used
by the Management in the ECL computation; and
iii. ECL computations for their reasonableness
We, along with the assistance of the auditor's expert,
verified the appropriateness of methodology and
models used by the Company and reasonableness of
the assumptions used within the computation process to
estimate the impairment provision.
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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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ECL is calculated using the percentage of probability of
default ("PD"), loss given default ("LGD") and exposure
at default ("EAD") for each of the stages of loan portfolio.
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• Test-checked the completeness and accuracy of
source data used.
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Significant management judgment and assumptions
involved in measuring ECL is required with respect to:
• Segmentation of loan book in buckets based on common
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• Recomputed the impairment provision for a sample of loans
across the loan portfolio to verify the arithmetical accuracy
and compliance with the requirements of Ind AS 109.
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risk characteristics;
• Staging of loans and in particular determining the
criteria, which includes qualitative factors for identifying
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• Evaluated the reasonableness of the judgement involved
in management overlays that form part of the impairment
provision, and the related approvals.
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a significant increase in credit risk (i.e. Stage 2) and
credit-impaired (i.e. Stage 3);
• factoring in future macro-economic and industry specific
estimates and forecasts;
• past experience and forecast data on customer
behaviour on repayments and;
• varied statistical modelling techniques to determine
probability of default, loss given default and exposure
at default basis, the default history of loans, subsequent
recoveries made and other relevant factors using
probability weighted scenarios
Considering the significance of the above matter to
the Financial Statements and since the matter required
significant attention to test the calculation of ECL, we
identified this as a key audit matters for current year audit
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• Evaluated the adequacy of presentation and disclosures
in relation to impairment loss allowance in the standalone
financial statements
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2
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Information Technology ("IT") systems and controls
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Key IT audit procedures performed included the following,
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impacting financial controls
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but not limited to:
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The Company key financial accounting and reporting
processes are highly dependent on information systems
including automated controls in systems, such that there
exists a risk that gaps in the IT control environment could
result in the financial accounting and reporting records
being misstated.
Amongst its multiple IT systems, we scoped in systems that
are key for overall financial reporting.
Appropriate IT general controls and application controls
are required to ensure that such IT systems are able to
process the data, as required, completely, accurately and
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• For testing the IT general controls, application controls
and IT dependent manual controls, we involved IT
specialists as part of the audit. The team also assisted in
testing the accuracy of the information produced by the
Company IT systems.
• Obtained a comprehensive understanding of IT
applications landscape implemented at the Company.
It was followed by process understanding, mapping of
applications to the same and understanding financial risks
posed by people-process and technology.
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consistently for reliable financial reporting.
We have identified 'IT systems and controls' as a key audit
matter considering the high level of automation, significant
number of systems being used by Management and the
complexity of the IT architecture and its impact on overall
financial reporting process and regulatory expectation on
automation
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• Key IT audit procedures includes testing design and
operating effectiveness of key controls operating over user
access management (which includes user access provisioning,
de-provisioning, access review, password configuration
review, segregation of duties and privilege access), change
management (which include change release in production
environment are compliant to the defined procedures
and segregation of environment is ensured), program
development (which include review of data migration
activity), computer operations (which includes testing of key
controls pertaining to, backup, Batch processing (including
interface testing), incident management and data centre
security), System interface controls. This included testing
that requests for access to systems were appropriately
logged, reviewed, and authorized.
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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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• In addition to the above, the design and operating
effectiveness of certain automated controls, that were
considered as key internal system controls over financial
reporting were tested. Using various techniques such
as inquiry, review of documentation / record / reports,
observation, and re-performance. We also tested few
controls using negative testing technique.
• Tested compensating controls and performed alternate
procedures, where necessary. In addition, understood
where relevant changes made to the IT landscape during
the audit period
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Information Other than the Standalone Financial
Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other
information. The other information comprises the Director's
Report but does not include the standalone financial statements
and our auditor's report thereon. The Annual Report is expected
to be made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not
cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
identified above when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the standalone financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated.
When we read the Annual Report, if we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance under SA 720
'The Auditor's responsibilities Relating to Other Information'.
Responsibilities of Management and Board of
Directors for the Standalone Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance,
changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India,
including the Accounting Standards specified under section
133 of the Act. 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 design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the standalone financial statement that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements, the
Management and Board of Directors are responsible for
assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Board of
Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole are free
from material misstatement, whether due to fraud or error, and
to issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing our
opinion on whether the company has adequate internal
financial controls with reference to standalone financial
statements in place and the operating effectiveness
of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management and
Board of Directors.
• Conclude on the appropriateness of management and
Board of Director's use of the going concern basis of
accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the
related disclosures in the standalone financial statements
or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report. However,
future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned
scope and timing of the audit and significant audit findings,
including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
for the year ended March 31, 2025 (current year) and are
therefore, the key audit matters. We describe these matters
in our auditor's report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Other Matters
The standalone financial statements of the Company for the
year ended March 31, 2024, were audited by another auditor
whose report dated May 08, 2024 expressed an unmodified
opinion on those statements.
Our opinion is not modified in respect of the above matter
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order"), issued by the Central Government
of India in terms of sub-section (11) of section 143 of the
Act, we give in "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
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 purposes 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,
except for the matters stated in the paragraph 2(h)
(vi) below on reporting under Rule 11(g)
(c) The Balance Sheet, the Statement of Profit and
Loss including other comprehensive income, the
Statement of Changes in Equity and the Statement of
Cash Flow dealt with by this Report are in agreement
with the books of account.
(d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act.
(e) On the basis of the written representations received
from the directors as on March 31, 2025 taken
on record by the Board of Directors, none of the
directors are disqualified as on March 31, 2025 from
being appointed as a director in terms of Section 164
(2) of the Act.
(f) The reservation relating to the maintenance of
account and other matters connected therewith are
as stated in paragraph 2(b) above on reporting under
Section 143(3)(b) and paragraph 2(h)(vi) below on
reporting under Rule 11(g).
(g) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in "Annexure B".
(h) 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 has disclosed the impact of
pending litigations on its financial position in its
standalone financial statements - Refer Note 38
to the standalone financial statements;
ii. The Company has made provision, as required
under the applicable law or accounting
standards, for material foreseeable losses, if
any, on long-term contracts including derivative
contracts - Refer Note 7 and 17 to the
standalone financial statements;
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund
by the Company.
iv. i. The Management has represented that,
to the best of its knowledge and belief,
no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the Company to or in
any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, directly or indirectly lend or invest
in other persons or entities identified in
any manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.
Refer Note 62.6 to the standalone
financial statements
ii. The Management has represented, that,
to the best of its knowledge and belief, no
funds have been received by the Company
from any person(s) or entity(ies), including
foreign entities (Funding Parties), with
the understanding, whether recorded in
writing or otherwise, as on the date of
this audit report, that the Company shall,
directly or indirectly, lend or invest in
other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.
Refer Note 62.7 to the standalone
financial statements
iii. Based on the audit procedures performed
that have been considered reasonable
and appropriate in the circumstances,
and according to the information and
explanations provided to us by the
Management in this regard nothing has
come to our notice that has caused us to
believe that the representations under
sub-clause (i) an d (ii) of Rule 11(e) as
provided under (i) and (ii) above, contain
any material mis-statement.
v. The final dividend paid by the Company during
the year in respect of the same declared for
the previous year is in accordance with section
123 of the Companies Act 2013 to the extent it
applies to payment of dividend.
The Board of Director of the Company have
proposed final dividend for the year in which is
subject to the approval of the members at the
ensuring Annual General Meeting. The dividend
declared is in accordance with section 123 of
the Act to the extent it applies to declaration
of dividend. Refer Note 26 to the Standalone
financial statements.
vi. Based on our examination, which included test
checks, the Company has used an accounting
software (including new ERP implemented w.e.f.
December 1, 2024) for maintaining its books
of account which has a feature of recording
audit trail (edit log) facility except that no audit
trail feature was enabled at database level in
respect of one accounting software (the old ERP
discontinued on November 30, 2024) and was
not enabled at the database level from April
1, 2024 to July 07, 2024 in respect to another
accounting software. Further the audit trail
feature was not enabled at the application level
in respect of one accounting software to log
any direct data changes as explained in Note
63 to the financial statements. Further, where
enabled, audit trail feature has been operated
throughout the year/period for all relevant
transaction in the accounting software. Also,
during the course of our audit, we did not come
across any instance of audit trail feature being
tampered with in respect of such accounting
software. Additionally, the audit trail has been
preserved by the Company as per the statutory
requirement for record retention to the extent
it was enabled and recorded except for one
application the audit trail is not preserved
where audit trail feature was enabled on July
08, 2024 at database level.
3. In our opinion, according to information, explanations
given to us, the remuneration paid by the Company to
its directors is within the limits laid prescribed under
Section 197 read with Schedule V of the Act and the
rules thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration Number: 105047W
Prateek Khandelwal
Partner
Membership Number: 139144
UDIN: 25139144BMOJTS6273
Mumbai
May 05, 2025
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