Mar 31, 2015
We have audited the accompanying standalone financial statements of
Incap Limited, which comprise the Balance Sheet as at March 31, 2015,
the Statement of Profit and Loss, and the Cash Flow Statement for the
year ended on that date, and a summary of the 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 sub-section 5 of Section 134 of the Companies Act, 2013 with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance 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, 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 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
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
specified under sub-section 10 of Section 143 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 the disclosures in the financial statements. The
procedures selected depend on the auditors' 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 operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the 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 standalone
financial statements.
OPINION
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 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, and 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 exercise of
powers conferred by sub-section 11 of section 143 of the Act, we
enclose in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by sub-section 3 of Section 143 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.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement 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, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
Directors as on March 31, 2015 taken on record by the Board of
Directors, none of the Directors are disqualified as on March 31, 2015
from being appointed as a Director in terms of sub-section 2 of Section
164 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 has disclosed the impact of pending litigations on its
financial position in its financial statements in accordance with the
generally accepted accounting practice - also refer Note 31 (iv)(a)(i)
to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO AUDITORS REPORT OF EVEN DATE
Referred to in paragraph 3 of our report of even date to the members of
Incap Limited on the Financial Statements for the year ended 31 st
March, 2015.
i. (a) The Company has maintained proper records showing full
particulars, including Quantitative details and situation of its fixed
assets;
(b) All the assets have been physically verified by the management
during the year. There is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial parts of fixed assets have been disposed
off by the Company during the year.
ii. (a) The Inventory has been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
( c) The company is maintaining proper records of inventory the
discrepancies notice on verification between the physical stock and the
book record were not material.
iii. The Company not granted any loans, secured or unsecured to
companies, firms and other parties covered in the register maintained
under section 189 of the Companies Act, 2013. In view of above, clauses
iii (a), iii (b) are not applicable.
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 inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
v The company has not accepted any deposits from the public within the
meaning of Sections 73 to 76 of the Act and the rules framed there
under.
vi. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of Cost records under section 148 of the Companies Act,
2013, related to the manufacture of Aluminum Electrolytic Capacitors
and Silicon Rubber Insulators and are of the opinion that prima facie,
the prescribed accounts and record have been made and maintained. We
have not, however, made a detailed examination of the same.
vii. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Customs Duty, Excise Duty, Service Tax, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no dues of Sales Tax, Service Tax, Income Tax, Customs duty and Excise
duty which have not been deposited on account of any dispute.
(c) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
viii. No accumulated losses are there at the end of the financial year
2013-2014. The company has not incurred cash losses during the
financial year covered by our audit and in the immediate preceding
financial year.
ix. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institution, bank or debentures holders.
x. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xi. The company has not given guarantee for loans taken by others from
banks and financial institutions during the year.
xii. In our opinion the term loans have been applied for the purpose
for which they were raised.
xiii. According to the information and explanations given to us, no
fraud on or by the company has been notices or reported during the
course of our audit.
For PURNACHANDRA RAO & CO.,
Chartered Accountants,
Firm Regn. No.002802S
(CA. G.BABU SRIKAR )
VIJAYAWADA
Proprietor
25 th July, 2015 M. No.202335
Mar 31, 2014
We have audited the accompanying financial statements of INCAP LIMITED
("the Company"), which comprises the Balance Sheet as at March 31,2014,
and the Statement of Profit for the year the ended on that date, and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
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 flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956, read with
General Circular 8/2014 dated 4th April 2014 issued by the Ministry of
Corporate Affairs. 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; and
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date;
c) in the case of the Cash Flow Statement, of the cash flow 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, and 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 Companies Act, 1956, read with General Circular
8/2014 dated 4th April, 2014 issued by the 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.
Referred to in paragraph 3 of our report of even date to the members of
Incap Limited on the Financial Statements for the year ended 31st
March, 2014.
i. (a) The Company has maintained proper records showing full
particulars, including Quantitative de- tails and situation of its
fixed assets;
(b) All the assets have been physically verified by the management
during the year. There is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial parts of fixed assets have been disposed
off by the Company during the year.
ii. (a) The Inventory has been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c)The company is maintaining proper records of inventory the
discrepancies notice on verification between the physical stock and the
book record were not material.
iii. (a) The Company not granted any loans, secured or unsecured to
companies, firms and other parties covered in the register maintained
under section 301 of the Companies Act, 1956. In view of iii (a) above,
clauses iii (b), iii (c), iii(d) are not applicable.
(e) The company has taken unsecured loan from one party covered in the
Register maintained U/s.301 of the Companies Act, 1956. The year end
balance of the loan taken from M/s. Cardinal Electrical Equipments
(Whole-time Director is the Proprietor) is Rs.1,14,47,526/-.
(f) The terms and conditions on which loans have been taken from other
parties listed in the register maintained u/s 301 of the Companies Act,
1956 are not prima-facie prejudicial to the interests of the company.
(g) There are no terms and conditions attached as to the repayment of
principal on interest-free unse- cured loans taken from other parties
list in the register maintained u/s 301 of the Companies Act, 1956.
Hence there is no overdue amount of loans from other parties listed in
the register maintained u/s301 of the Companies Act, 1956.
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 busi-
ness with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
v. According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the Register required to be maintained under that section.
vi. The company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of Cost records under section 209 (1) (d) of the Companies
Act, 1956, related to the manufacture of Aluminium Electrolytic
Capacitors and Silicon Rubber Insulators and are of the opinion that
prima facie, the prescribed accounts and record have been made and
maintained. We have not, however, made a detailed examination of the
same.
ix. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Customs Duty, Excise Duty, Service Tax, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no dues of Sales Tax, Service Tax, Income Tax, Customs duty and Excise
duty which have not been deposited on account of any dispute.
x. No accumulated losses are there at the end of the financial year
2012-2013. The company has not incurred cash losses during the
financial year covered by our audit and in the immediate preceding
financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institution, bank or debentures holders.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) order, 2003 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the companies (Auditor''s Report) order,
2003 are not applicable to the company.
xv. The company has not given guarantee for loans taken by others from
banks and financial institutions during the year.
xvi. In our opinion the term loans have been applied for the purpose
for which they were raised.
xvii. According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
xviii. The Company has not made any preferential allotment of shares
to parties and companies covered the register maintained under section
301 of the Act during the year.
xix. The Company has not issued debentures during the year. Hence
Clause (xix) is not applicable.
xx. The Company has not raised any money by way of public issues
during the year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been notices or reported during the
course of our audit.
For PURNACHANDRA RAO & CO.,
Chartered Accountants,
Firm Regn. No.002802S
(CA. G.BABU SRIKAR )
Partner
VIJAYAWADA M. No202335
31st July, 2014
Mar 31, 2012
1. We, M/s Purnachandra Rao & Co., Chartered Acocuntants, have audited
the attached Balance Sheet of Incap Limited, as at March 31, 2012 the
Profit and Loss Account and also the Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 a 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 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 appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
5. On the basis of written representations received from the
directors, as on 31st March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31s March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956, 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT OF EVEN DATE
Referred to in paragraph 3 of our report of even date to the members of
Incap Limited on the Financial Statements for the year ended 31st
March, 2012.
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) All the assets have been physically verified by the management
during the year. There is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material- discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial parts of fixed assets have been disposed
off by the Company during the year.
ii. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory the
discrepancies noticed on verification between the physical stock and
the book record were not material.
iii. The Company has not either granted or taken any loans, Secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under section 301 of the Act.
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 inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
v. According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in Section 301 of the Companies Act, 1956 have been entered in the
Register required to be maintained under that section.
vi. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. The Central Government has not prescribed the maintenance of cost
records for any of the products of the company under sector 209(1 )(d)
of the Companies Act, 1956.
ix. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Customs Duty, Excise Duty, Service Tax, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no dues of Sales tax, Service tax, Income tax, Customs duty and Excise
duty which have not been deposited on account of any dispute.
x. No accumulated losses are there at the end of the financial year
2011 -12. The company has not incurred cash losses during the financial
year covered by our audit and in the immediate preceding financial
year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institution, bank or debentures holders.
xii. The Company has not granted any loans and advances 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, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) order, 2003 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the companies (Auditor's Report) order,
2003 are not applicable to the company.
xv. The Company has not given guarantees for loans taken by others from
banks and financial institutions during the year.
xvi. In our opinion the term loans have been applied for the purpose
for which they were raised.
xvii. According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
xviii. During the year the company has issued and alloted 4,80,000
Equity shares on preferential basis on convention of share warrants at
a price arived at as per the procedure prescribed under SEBI
Guidelines.
xix. The Company has not issued debentures during the year. Hence
Clause (xix) is not applicable
xx. The Company has not raised any money by way of public issues
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
course of our audit.
For PURNACHANDRA RAO & CO.,
Chartered Accountants,
Firm Regn. No.002802S
(CA. G.BABU SRIKAR)
Partner
VIJAYAWADA M. No.202335
31st May, 2012
Mar 31, 2011
1. We, M/s Purnachandra Rao & Co., Chartered Accountants, have audited
the attached Balance Sheet of INCAP LIMITED, as at March 31, 2011 the
Profit and Loss Account for the year ended on that date and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the 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 a 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the companies (Auditor's Report) order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 accounts as required by law, have
been kept by the company, so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
5. On the basis of written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and notes thereon give the infor-
mation required by the Companies act, 1956, 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011;
b) In the case of Profit and Loss Account, of the loss for the year
ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT OF EVEN DATE
Referred to in paragraph 3 of our report of even date to the members of
Incap Limited on the Financial Statements for the year ended 31st
March, 2011.
i (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the Information and explanations
given to us, no substantial part of fixed assets have not been disposed
off by the Company during the year.
ii. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. The company has not either granted or taken any loans secured or
unsecured to / from companies, firms or other parties covered in the
register maintained under section 301 of the Act, 1956
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 inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
v. According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in Section of 301 of the Companies Act, 1956 have been
entered in the Register required to be maintained under that section.
vi. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. The Central Government has not prescribed the maintenance of cost
records for any of the products of the company under Section 209(1) (d)
of the Companies Act, 1956.
ix. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
tax, Sales tax, Customs duty, Excise duty, Service tax, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no dues of Sales tax, Service tax, Income tax, Customs duty and Excise
duty which have not been deposited on account of any dispute.
x. No accumulated losses are there at the end of the financial year
2010-11. The company has not incurred cash losses during the financial
year covered by our audit and in the immediate preced- ing financial
year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institution, bank or debentures holders.
xii. The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the company is not a chitfund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) order, 2003 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the companies (Auditor's Report) order,
2003 are not applicable to the company.
xv. The Company has not given gurantees for loans taken by others from
banks and financial institutions during the year.
xvi. In our opinion the term loans have been applied for the purpose
for which they were raised.
xvii. According to the information and explanation 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.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of act during the year.
xix. The Company has not issued debentures during the year. Hence
clause (xix) is not applicable.
xx. The Company has not raised any money by way of public issues
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
course of our audit.
For PURNACHANDRA RAO & CO.,
Chartered Accountants
Firm Regn. No. 002802S
Sd/-
(CA. G. BABU SRIKAR)
Partner
M.No. 202335
VIJAYAWADA
May 30, 2011
Mar 31, 2010
1. We, Umamaheswara Rao & Co., Chartered Accountants, have audited the
attached Balance Sheet of INCAP LIMITED, as at March 51, 2010 the
Profit and Loss Account for the year ending on that date and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the 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 a 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the companies (Auditors Report) order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 accounts as required by law, have
been kept by the company, so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
5. On the basis of written representations received from the
directors, as on 31s March 2010, and takeg on record by the Board of
Directors, we report that none of the directors is disqualified as on
31s March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and notes thereon give the information
required by the Companies act, 1956, 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 Balance Sheet, of the state of affairs of the
Company as at 31s March, 2010;
b) In the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXVRE TO AUDITORS REPORT OF EVEN DATE
Referred to in paragraph 3 of our report of even date to the members of
Incap Limited on the financial Statements for the year ended 31s March,
2010.
i (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the Information and explanations
given to us, no substantial part of fixed assets have not been disposed
off by the Company during the year.
ii. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. (a) The Company has granted interest free unsecured loan to its
subsidiary company covered in the register maintained under section 301
of the Companies Act, 1956 and maximum amount involved during the year
was Rs.79,95,195/- and the year end balance of loan given to such
company was Rs.79,95,195/-.
(b) The terms and conditions on which interest free loan has been given
to company listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima-facie preju-dicial to the interest of
the company
(c) There are tig terms and conditions attached as to the repayment of
principal on unsecured interest fre*i loan given to subsidiary company.
Hence, clause Nos.(iii)(c) and (iii)(d) are not appjicgble.
(d) The, company has not taken any loans secured or unsecured from
companies, firms or other pasties covfil^d in the register maintained
under sectioOn 301 of the Act. Hence Clause Nos (iûH.e)^iii)(f)"
iv. Inxsur épinion 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 inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls. æûÃ
v. According to the information and explanations given to us, we are
of the opinion that the particu- lars of contracts or arrangements
referred to in Section of 301 of the Companies Act, 1956 have been
entered in the Register required to be maintained under that section.
vi. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. The Central Government has not prescribed the maintenance of cost
records for any of the products of the company under Section 209( 1)
(d) of the Companies Act, 1956.
ix. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
tax, Sales tax. Customs duty. Excise duty. Service tax, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no dues of Sales tax, Service tax. Income tax, Customs duty and Excise
duty which have not been deposited on account of any dispute.
x. The Company has not accumulated losses as at 31s March, 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
Bank.
xii. The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the company is not a chitfund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) order, 2003 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the companies (Auditors Report) order,
2003 are not applicable to the company.
xv. In our opinion, and according to the information and explanations
given to us, the Company has given a Corporate guarantee for loans
taken by Incap Insulators Pvt. Ltd., Subsidiary Company, from State
Bank of India during the year.
xvi. The company has not raised any new term loans during the year and
there are no term loans outstanding at the beginning of the year.
xvii. According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
xix. The Company has not issued debentures during the year. Hence
clause (xix) is not applicable.
xx. The Company has not raised any money by way of public issues
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
course of our audit.
For UMAMAHESWARA RAO & CO..
Chartered Accountants
Firm Regn. Mo. 04453S
(CA. A, SIVA PRASAD)
Partner
VUAYAWADA M.No. 213675
May 29, 2010