Help with circuit for a 12v DC Timer

[Edge17]

So this is based on this site: http://www.reuk.co.uk/Convert-Digital-Mains-Timer-To-Low-Voltage.htm

They show how to make a 12v DC timer, but I cannot fully understand the circuit diagram. It shows two capacitors, can anyone explain to me what they are for and why they are there? Also they seem to connect the positive from 12v to the negative, am I understanding the diagram right, or can someone else explain what it is?

Thanks!

 

[KrisBlueNZ]

That's a pretty amateurish project and the circuit diagram is not well drawn.
The two capacitors are for smoothing or "decoupling". They remove noise from the voltage rails that they're connected to. There's one on the input to the regulator, and one on the output. This is normal practice with a voltage regulator.
I don't understand what you mean by "they seem to connect the positive from 12V to the negative". The first capacitor connects between +12V and 0V. If that's what you mean, it's normal and correct.
That design is specifically designed to work with a particular timer. You'll need to get that exact model, or a timer that's identical or very similar inside, to be able to use that circuit design with it.