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Incap Ltd.

BSE: 517370 Sector: Engineering
NSE: N.A. ISIN Code: INE437C01012
BSE LIVE 15:40 | 17 Nov 63.05 0.25
(0.40%)
OPEN

60.50

HIGH

65.00

LOW

60.50

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 60.50
PREVIOUS CLOSE 62.80
VOLUME 6529
52-Week high 98.70
52-Week low 25.65
P/E 9.94
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 60.50
CLOSE 62.80
VOLUME 6529
52-Week high 98.70
52-Week low 25.65
P/E 9.94
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Incap Ltd. (INCAP) - Auditors Report

Company auditors report

To Members of INCAP LIMITED (CIN: L32101AP1990PLC011311)

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of Incap Limited (CIN:L32101AP1990PLC011311) which comprise the Balance Sheet as at March 312016 theStatement of Profit and Loss and the Cash Flow Statement for the year ended on that dateand 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 insub-section 5 of Section 134 of the Companies Act 2013 with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersub-section 10 of Section 143 of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors’ judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 312016 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-section11 of section 143 of the Act we enclose in the Annexure -1 statement on the mattersspecified 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the Directors as on March31 2016 taken on record by the Board of Directors none of the Directors are disqualifiedas on March 31 2015 from being appointed as a Director in terms of sub-section 2 ofSection 164 of the Act.

(f) With respect to the adequacy of internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in ‘Annexure - II’ and

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements in accordance with the generally accepted accountingpractice - also refer Note 31(iv)(a)(i) to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For PURNACHANDRA RAO & CO.
Chartered Accountants
Firm Regn. No.002802S
VIJAYAWADA (CA. G.BABU SRIKAR)
30th July 2016 Proprietor
M. No.202335

ANNEXURETO AUDITORS REPORT OF EVEN DATE

Referred to in paragraph 3 of our report of even date to the members of Incap Limited(CIN: L32101AP1990PLC011311) on the Financial Statements for the year ended 31st March2016.

i. (a) The Company has maintained proper records showing full particulars includingQuantitative 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 havingregard to the size of the company and the nature of its assets. No material discrepancieswere noticed on such verification.

(c) According to the information and explanations given tQ us and on the basis of ourexamination of the records of the Company the title deeds of the immovable properties areheld in the name of the Company.

ii. The Inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

iii. The Company not granted any loans secured or unsecured to companies firms andother parties covered in the register maintained under section 189 of the Companies Act2013. In view of above clauses iii (a) iii (b) are not applicable.

iv. In our opinion and according to the explanation given to us the company hascomplied with the provisions of Section 185 and 186 of the Act with respect to the loansand investments made.

v. The company has not accepted any deposits from the public within the meaning ofSections 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 tothe rules made by the Central Government for the maintenance of Cost records under section148 of the Companies Act 2013 related to the manufacture of Aluminium ElectrolyticCapacitors and Silicon Rubber Insulators and are of the opinion that prima facie theprescribed accounts and record have been made and maintained. We have not however made adetailed examination of the same.

vii. (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Income Tax Sales Tax Customs Duty Excise DutyService Tax Cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us the following dues ofincome tax duty of excise duty of customs sales tax and service tax have not beendeposited by the Company on account of disputes.

Name of the Statute Nature of Dues Period to which the amount relates (AY) Forum where dispute is pending
The Finance Act 1994 - Service Tax Service tax 2012- 13 2013- 14 The CommissionerO/o.The Commissioner of Customs Central Excise & Service Tax Guntur.

viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to the financial institution bank ordebentures holders.

ix. The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. AccordinglyClause (ix) is not applicable.

x. According to the information and explanations given to us no fraud on or by thecompany or on the company by its officers or employees has been notices or reported duringthe course of our audit. •

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordingly Clause (xii) is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with 177 and 186 of the Act where applicable and details of such transactionshave been disclosed in the financial statements are required by the applicable accountingstandards.

xiv. According to the information and explanations to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year. .

xv. According to the information and explanations to us and based on our examination ofthe records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly Clause (xv) is not applicable

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For PURNACHANDRA RAO & CO.
Chartered Accountants
Firm Regn. No.002802S
VIJAYAWADA 30th July 2016 (CA. G.BABU SRIKAR )
Proprietor
M. No.202335

ANNEXUREIITOTHE INDEPENDENT AUDITORS’ REPORT ONTHE FINANCIAL STATEMENTS

The annexure referred to in paragraph 2(f) under the heading ‘Report on OtherLegal & Regulatory Requirement’ of our Independent Auditors’ Report of evendate to the Statutory Auditors of Incap Limited (“the Company”) (CIN:L32101AP1990PLC011311) on the Financial Statements for the year ended 31stMarch 2016 we report that:

1) We have audited the internal financial controls over financial reporting of IncapLimited (“the Company”) as of March 312016 in conjunction with our audit offinancial Statements of the Circle for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

2) The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

3) Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherar'eai ite internal financial controls over financial reporting was established andmaintained and if such nr: vn’3 operated effectively in all materialrespects.

4) Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5) We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6) A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7) Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or-procedures may deteriorate.

For PURNACHANDRA RAO & CO.
Chartered Accountants
Firm Regn. NO.002802S
VIJAYAWADA (CA. G.BABU SRIKAR)
30th July 2016 Proprietor '
M. No.202335