| 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 |