Notes to Accounts of Incap Ltd.

Mar 31, 2024

XV PROVISIONS/ CONTINGENT LIABILITIES AND ASSETS
Provision:

A provision is recorded when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reasonably estimated. The estimated liability for product warranties is recorded when products are sold based
on technical evaluation.

Provisions are measured at the present value of management''s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. Provisions are discounted when time value of
money is material. The discount rate used to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognized as interest expenses.

Contingent liabilities:

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity or a present obligation that arises from past events but is not recognized because (a) it is not probable
that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the
amount of the obligation cannot be measured with sufficient reliability. Show cause notices are not considered
as Contingent Liabilities unless converted into demand.

Contingent assets:

Wherever there is a possible asset that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity. A contingent asset is disclosed when the inflow of economic benefit is probable.

XVIII) SEGMENT REPORTING:

The Company is primarily engaged in the business of manufacturing aluminium electrolytic capacitors. Since,
the nature of the activities is governed by the same nature of risks, these are grouped as single segment.

A. Title deeds of Immovable Property not held in name of the Company:

The company does not hold any immovable property whose title deeds are not held in it''s name. The title deeds
of all immovable properties are held in the name of the Company and no immovable property is jointly held with
others.

B. Revaluation of Property, Plant and Equipment:

The Company has not revalued any of its ''Property, Plant and Equipment'' either during the current year or in the
previous year.

C. Loans or Advances - Additional Disclosures:

The company does not have any Loans or Advances in the nature of Loans granted to the promoters, directors,
key managerial persons and the related parties, either severally or jointly with any other person, that are
repayable on demand or without specifying any terms or period of repayment.

D. Capital Work in Progress - (CWIP): - CWIP aging schedule

The Company does not have any Capital work in progress duirng the year 2023-24 and also during the previous
year 2022-23

There are no capital work in progress to the company during the current year. And the capital work in progress
in the previous year was neither actively suspended nor the completion is overdue or has exceeded its cost
compared to its original plan.

E. Intangible assets under development:

There are no intangible assets under development to the company during the current year or in the previous
year.

F. Security of current assets against borrowings:

The company has not availed working capital loans from the bank against the first charge of the Stocks &
Receivable and against the security of the immovables property of its related parties along with third party
guarantees.

G. Details of Benami Property held:

The Company doesn''t hold any Benami Properties and no proceedings have been initiated or pending against
the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and the
rules made thereunder.

H. Wilful Defaulter:

The Company is not declared as a wilful defaulter by any bank or financial institution or other lender.

I. Relationship with struck off companies:

The Company has no transaction with companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956.

J. Registration of charges or satisfaction with Registrar of Companies:

There is no delay in registering charges or satisfaction of charges with Registrar of Companies beyond the
statutory period and there are no charges or satisfaction yet to be registered with Registrar of Companies
beyond the statutory period.

K. Compliance with number of layers of companies:

The Company doesn''t have any subsidiary and hence compliance with Section 2(87) of the Companies Act,
2013 read with Companies (Restriction on number of Layers) Rules, 2017 regarding number of layers doesn''t
arise.

L. Compliance with approved Scheme(s) of Arrangements:

The Company has neither applied for nor is in the process of applying for any Scheme of Arrangements by the
Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

M. Utilisation of Borrowed funds and share premium:

The company has neither advanced nor loaned nor invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediar¬
ies) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The company has not received any fund from any person(s) or entity(ies ), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

N. Undisclosed Income

The company does not have any transaction that are not recorded in the books. The company has not surren¬
dered or disclosed any income during the financial year 2022-23 and in previous year 2021-22 in tax assess¬
ments under the Income Tax Act, 1961 and there are no previously unrecorded income and the related assets
during the year or in the previous year.

P. Corporate Social Responsibility:

The company is not covered under section 135 of Companies Act, 2013. Hence, the requirement laid down
under section 135 of the Companies Act, 2013 for corporate social responsibility is not applicable to the com¬
pany.

Q. Details of crypto currency or virtual currency:

The company has not traded or invested in crypto currency or virtual currency during the financial year.

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Mar 31, 2015

1. Secured Loans : Working capital facilities from banks are secured by hypothecation of stocks of raw materials, semi finished goods, finished goods, stores and spares and book debts and first charge on Fixed Assets of the company in favour of State Bank of India, Patamata Branch, Vijayawada and State Bank of Hyderabad, Governorpet Branch, Vijayawada on pari passu basis.

2. Current Assets and Current Liabilities : Sundry Debtors, Loand and Advances and Sundry Creditors balance are subject to confirmation by the parties. Fixed Deposits with Banks to the extent of Rs. 12.46 Lakhs are pledged with bankers towards margin money for Letters of Credit and Rs.52.49 Lakhs are pledged with banker towards margin for Bank Guarantees.

3. No amount is due to any small-scale industry in excess of Rs. 1,00,000 or more than 30 days.

4. Provision is made for regular Income tax as per provisions of Income Tax Act, 1961. Deferred Tax:

Deferred Tax is computed on the timing differences as per Accounting Standard-22 issued by the ICAI.

The major and only component of Deferred Tax liability is the difference between Depreciation charges in books & Depreciation claimed as per Income Tax Act, 1961.

5. Segment Reporting: The Company is primarily engaged in the business of manufacturing both AC and DC volts Aluminium Electrolytic Capacitors. Since the nature of the activities is governed by the same nature of risks, these are grouped as single segment.

6. In the absence of any claim under interest on delayed payments to Small Scale and Ancillary Industries Undertaking Act, 1993 the Company did not make any provisions for such payment.

7. Excise Duty: Provision has been made for the excise duty payable on finished goods not cleared from the factory amounting to Rs. 10.26 Lakhs. CENVAT credit has been taken to the extent utilized for clearance of finished goods.

8. Gratuity has been funded through the scheme administered by Life Insurance Corporation of India. 10.There is no impairment of assets.

9. Related party transactions:

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Mar 31, 2014

1. Contingent Liabilities :

(Rs. in Lakhs)

Particulars 2013-2014 2012-2013

Letter of Credit - 185.48

Bank Gurarantees 287.84 248.50

Total 287.84 433.98

2. Secured Loans: Working capital facilities from banks are secured by hypothecation of stocks of raw materials, semi finished goods, finished goods, stores and spares and book debts and first charge on Fixed Assets of the Company in favour of State Bank of India, Patamata Branch, Vijayawada and State Bank of Hyderabad, Governorpet Branch, Vijayawada on pari passu basis.

3. Current Assets and Current Liabilities: Sundry Debtors, Loans and Advances and Sundry Creditors balance are subject to confirmation by the parties. Fixed Deposits with Banks to the extent of Rs. 31.27 Lakhs are pledged with bankers towards margin money for Letters of Credit and Rs.57.07 Lakhs are pledged with banker towards margin for Bank Guarantees.

4. No amount is due to any small-scale industry in excess of Rs.1,00,000 or more than 30 days.

5. Provision is made for regular Income tax as per provisions of Income Tax Act, 1961.

The major and only component of Deferred Tax liability is the difference between Depreciation charges in books & Depreciation claimed as per Income Tax Act, 1961.

6. Segment Reporting: The Company is primarily engaged in the business of manufacturing both AC and DC volts Aluminium Electrolytic Capacitors. Since the nature of the activities is governed by the same nature of risks, these are grouped as single segment.

7. In the absence of any claim under interest on delayed payments to Small Scale and Ancillary Industries Undertaking Act, 1993 the Company did not make any provisions for such payment.

8. Excise Duty: Provision has been made for the excise duty payable on finished goods not cleared from the factory amounting to Rs.10.26 Lakhs. CENVAT credit has been taken to the extent utilized for clearance of finished goods.

9. Gratuity has been funded through the scheme administered by Life Insurance Corporation of India.

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Mar 31, 2013

1. Contingent Liabilities :

(Rs. in Lakhs) Particulars 2012-2013 2011-2012

Letter of Credit 185.48 58.89

Bank Gurarantees 248.50 385.73

Total 433.98 444.62

2. Secured Loans: Working capital facilities from banks are secured by hypothecation of stocks of raw materials, semi finished goods, finished goods, stores and spares and book debts and first charge on Fixed Assets of the Company in favour of State Bank of India, Patamata Branch, Vijayawada and State Bank of Hyderabad, Governorpet Branch, Vijayawada on pari passu basis.

3. Current Assets and Current Liabilities: Sundry Debtors, Loans and Advances and Sundry Creditors balance are subject to confirmation by the parties. Fixed Deposits with Banks to the extent of Rs. 31.27 Lakhs are pledged with bankers towards margin money for Letters of Credit and Rs.57.07 Lakhs are pledged with banker towards margin for Bank Guarantees.

4. No amount is due to any small-scale industry in excess of Rs.1,00,000 or more than 30 days.

5. Provision is made for regular Income tax as per provisions of Income Tax Act, 1961.

The major and only component of Deferred Tax liability is the difference between Depreciation charges in books & Depreciation claimed as per Income Tax Act, 1961.

6. Segment Reporting: The Company is primarily engaged in the business of manufacturing both AC and DC volts Aluminium Electrolytic Capacitors. Since the nature of the activities is governed by the same nature of risks, these are grouped as single segment.

7. In the absence of any claim under interest on delayed payments to Small Scale and Ancillary Industries Undertaking Act, 1993 the Company did not make any provisions for such payment.

8. Excise Duty: Provision has been made for the excise duty payable on finished goods not cleared from the factory amounting to Rs.10.91 Lakhs. CENVAT credit has been taken to the extent utilized for clearance of finished goods.

9. Gratuity has been funded through the scheme administered by Life Insurance Corporation of India.

10. There is no impairment of assets.

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Mar 31, 2012

1. Contingent liabilities : (Rs. in Lakhs)

Particulars 2011-12 2010-11

Letter of Credit 58.89 135.27

Bank Guarantees 385.73 426.81

Corporate Guarantee _ _

Total 444.62 562.08



2. Secured Loans: Working capital facilities from banks are secured by hypothecation of stocks of raw materials, semi finished goods, finished goods, stores and spares and book debts and first charge on Fixed Assets of the Company in favour of State Bank of India, Patamata Branch, Vijayawada and State Bank of Hyderabad, Governorpet Branch, Vijayawada on pari passu basis.

3. Current Assets and Current Liabilities : Sundry Debtors, Loans and Advances and Sundry Creditors balances are subject to confirmation by the parties. Fixed Deposits with Banks to the extent of Rs. 16.22 Lakhs are pledged with bankers towards margin money for Letters of Credit and Rs.50.00 Lakhs are pledged with bankser towards margin for Bank Guarantees.

4. No amount is due to any small-scale industry in excess of Rs. 1,00,000 or more than 30 days.

5. Provision is made for regular Income Tax as per the provisions of Income Tax Act, 1961.

6. Segment Reporting : The Company is primarily engaged in the business of manufacturing both AC and DC volts Aluminium Electrolytic Capacitors. Since the nature of the activities is governed by the same nature of risks, these are grouped as single segment.

7. In the absence of any claim under interest on delayed payments to Small Scale and Ancillary Industries Undertaking Act, 1993 the Company did not make any provisions for such payment.

8. Excise Duty : Provision has been made for the excise duty payable on finished goods not cleared from the factory amounting to Rs. 8.91 Lakhs. CENVAT credit has been taken to the extent utlised for clearance of finished goods.

9. Gratuity has been funded through the scheme administered by Life Insurance Corporation of India.

10. There is no impairment of assets.

11.1 State subsidy amount current year transferred to Other Income Rs. 76,608/-

11.2 Preferential Share Warrants forfeited amount of Rs. 800000/- added to Capital Reserve and Share Premium of Rs. 224000/- transfer to Share premium account.

12.1 Working Capital from banks is secured by hypothecation of movable assets including inventories and assignment of receivables, personal guarantees of Directors of the Company and Fixed assets of the Company.

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Mar 31, 2011

1. Contingent liabilities :

Particulars 2010 - 11 2009 - 10

Letter of Credit 135.27 182.56

Bank Guarantees 426.81 58.19

Corporate Guarantee - 227.95

Total 562.08 468.70

2. Secured Loans : Working capital facilities from banks are secured by hypothecation of stocks of raw materials, semi finished goods, finished goods, stores and spares and book debts and first charge on Fixed Assets of the Company in favour of State Bank of India, Patamata Branch, Vijayawada and State Bank of Hyderabad, Governorpet Branch, Vijayawada on pari passu basis.

3. Current Assets and Current Liabilities : Sundry Debtors, Loans and Advances and Sundry Creditors balances are subject to confirmation by the parties. Fixed Deposits with Banks to the extent of Rs. 97.54 Lakhs are pledged with bankers towards margin money for Letters of Credit and Bank Guarentees.

4. No amount is due to any small-scale industry in excess of Rs. 1,00,000 or more than 30 days.

5. Segment Reporting : The Company is primarily engaged in the business of manufacturing both AC and DC volts Aluminium Electrolytic Capacitors and Silicon Rubber Insulators. Since the nature of the activities is governed by the same nature of risks, these are grouped as single segment.

6. In the absence of any claim under interest on delayed payments to Small Scale and Ancillary Industries Undertaking Act, 1993 the Company did not make any provisions for such payment.

7. Excise Duty : Provision has been made for the excise duty payable on finished goods not cleared from the factory amounting to Rs. 10.31 Lakhs. CENVAT credit has been taken to the extent utilised for clearance of finished goods.

8. Gratuity has been funded through the scheme administered by Life Insurance Corporation of India.

9. There is no impairment of assets.

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Mar 31, 2010

1. Contingent liabilities :

Particulars 2009-10 2008 - 09

Letter of Credit 182.56 70.15

Bank Guarantees 58.19 -

Corporate Guarantee 227.95 -

Total 240.75 70.13

2. Secured Loans : Working capital facilities from banks are secured by hypothecation of stocks of raw materials, semi finished goods, finished goods, stores and spares and book debts and first charge on Fixed Assets of the Company in favour of State Bank of India, Patamata Branch, Vijayawada and State Bank of Hyderabad, Governorpet Branch, Vijayawada on pari passu basis.

3. Current Assets and Current Liabilities : Sundry Debtors, Loans and Advances and Sundry Creditors balances are subject to confirmation by the parties. Fixed Deposits with Banks to the extent of Rs. 39.31 Lakhs are pledged with bankers towards margin money for Letters of Credit.

4. Mo amount is due to any small-scale industry in excess of Rs. 1,00,000 or more than 30 days.

5. Provision is made for regular Income Tax as per the provisions of Income Tax Act, 1961.

6. Segment Reporting : The Company is primarily engaged in the business of manufacturing both AC and DC volts Aluminium Electrolytic Capacitors. Since the nature of the activities is governed by the same nature of risks, these are grouped as single segment.

7. In the absence of any claim under interest on delayed payments to Small Scale and Ancillary Industries Undertaking Act, 1993 the Company did not make any provisions for such payment.

8. Dividends : Provision is made in the Accounts for the Dividend and Dividend Tax payable by the Company as recommended by the Board of Directors, pending approval of the Shareholders at the Annual General meeting.

9. Excise Duty : Provision has been made for the excise duty payable on finished goods not cleared from the factory amounting to Rs. 6.80 Lakhs.

10. Gratuity has been funded through the scheme administered by Life Insurance Corporation of Inda.

11. There is no impairment of assets.

The above remuneration is paid as per the terms of appointment approved by the Board / Shareholders. However, the same is pending for approval by Central Govt, of India.

1. Previous years figures have been regrouped, wherever necessary to confirm to current years classification.

2. All the figures have been rounded off to the nearest Rupee.

3. Signatures to schedule 1 to 22