UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed:
811-1056 January 5, 2007
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2. State identification Number:
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
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3. Exact name of investment company as specified in registration statement:
Capital Southwest Corporation
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4. Address of principal executive office (number, street, city, state, zip
code):
12900 Preston Road, Suite 700, Dallas, Texas 75230
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed:
811-1947 January 5, 2007
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2. State identification Number:
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
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3. Exact name of investment company as specified in registration statement:
Capital Southwest Venture Corporation
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4. Address of principal executive office (number, street, city, state, zip
code):
12900 Preston Road, Suite 700, Dallas, Texas 75230
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Report of Independent Registered Public Accounting Firm
To the Board of Directors of
Capital Southwest Corporation and Subsidiary:
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Investment Company
Act of 1940, that Capital Southwest Corporation and subsidiary (the "Company")
complied with the requirements of subsections (b) and (c) of rule 17f-2 under
the Investment Company Act of 1940 (the "Act") as of January 5, 2007. Management
is responsible for the Company's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Company's compliance based on our examination.
Our examination was conducted in accordance with the standards of the Public
Company Accounting Oversight Board (United States) and, accordingly, included
examining, on a test basis, evidence about the Company's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of January 5, 2007, and with respect to agreement of security
purchases and sales, for the period from October 2, 2006 (the date of the last
examination) through January 5, 2007:
o Count and inspection of all securities located in the vault of
JPMorgan Chase & Co. Safekeeping Department in New York City, New
York.
o Confirmation of all securities held by Citigroup Smith Barney.
o Reconciliation of all such securities to the books and records of the
Company.
o Agreement of one security purchase and one security sale since our
last report from the books and records of the Company to the Company's
bank statements.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Company's compliance
with specified requirements.
In our opinion, management's assertion that Capital Southwest Corporation and
subsidiary complied with the requirements of subsections (b) and (c) of rule
17f-2 of the Investment Company Act of 1940 as of January 5, 2007, with respect
to securities reflected in the investment account of the Company is fairly
stated, in all material respects.
This report is intended solely for the information and use of management and the
Board of Directors of Capital Southwest Corporation and subsidiary and the
Securities and Exchange Commission and is not intended to be and should not be
used by anyone other than these specified parties.
/s/ Grant Thornton LLP
Dallas, Texas
January 18, 2007
Management Statement Regarding Compliance
With Certain Provisions of the Investment Company Act of 1940
We, as members of management of Capital Southwest Corporation and subsidiary
(the "Company"), are responsible for complying with the requirements of
subsections (b) and (c) of rule 17f-2, "Custody of Investments by Registered
Management Investment Companies," of the Investment Company Act of 1940. We are
also responsible for establishing and maintaining effective internal controls
over compliance with those requirements. We have performed an evaluation of the
Company's compliance with the requirements of subsections (b) and (c) of rule
17f-2 as of January 5, 2007 and from October 2, 2006 through January 5, 2007.
Based on this evaluation, we assert that the Company was in compliance with the
requirements of subsections (b) and (c) of rule 17f-2 of the Investment Company
Act of 1940 as of January 5, 2007, and from October 2, 2006 through January 5,
2007 with respect to securities reflected in the investment account of the
Company.
Capital Southwest Corporation
[Name of Company]
/s/ Susan K. Hodgson
[Name]
Secretary-Treasurer
[Title]
January 5, 2007
[Date]