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Ambica Agarbathies Aroma & Industries Ltd.

BSE: 532335 Sector: Others
NSE: AMBICAAGAR ISIN Code: INE792B01012
BSE LIVE 15:55 | 14 Sep Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.90
PREVIOUS CLOSE 3.82
VOLUME 22471
52-Week high 4.01
52-Week low 0.00
P/E 3.81
Mkt Cap.(Rs cr) 7
Buy Price 4.00
Buy Qty 29.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.90
CLOSE 3.82
VOLUME 22471
52-Week high 4.01
52-Week low 0.00
P/E 3.81
Mkt Cap.(Rs cr) 7
Buy Price 4.00
Buy Qty 29.00
Sell Price 0.00
Sell Qty 0.00

Ambica Agarbathies Aroma & Industries Ltd. (AMBICAAGAR) - Auditors Report

Company auditors report

TO THE MEMBERS OF AMBICA AGARBATHIES AROMA AND INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of AMBICA AGARBATHIESAROMA AND INDUSTRIES LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") 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)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's 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 underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness 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 31st March 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.

(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 does not have any pending litigations which would impact its financialposition.

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

iii. As per the information furnished to us the amounts of Rs.623674 lying with thecompany in unpaid dividend account which have remained unclaimed or unpaid for a period of7 years or more have not been transferred to the Investor Education and Protection Fund bythe Company.

Sd/-
(T.S. AJAI)
Chartered Accountant
Membership No.025524
Place: Hyderabad
Date : 28.05.2016

Annexure to the Auditors' Report

(Refer to in paragraph 3 of our report of even date to the Members of AmbicaAgarbathies Aroma and Industries Limited for the year ended 31st March 2016)

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets of the company have been physically verified by the managementduring the year which in our opinion is reasonable having regard to the size of theCompany and nature of its assets. According to the information and explanation given tous no material discrepancies were noticed on such verification.

(c) As informed by management the title deeds of immoveable properties are held in thename of the company.

ii. As informed to us the physical verification of the inventory was conducted as atthe year- end by the Management which in our opinion is reasonable and there were nomaterial discrepancies noticed during the verification.

iii. According to the information and explanations given to us the Company has madetrade deposit of Rs.120000000/- (which is disclosed as long term loans and advances inthe balance sheet as at 31.03.2016) to one Company covered in the register maintainedunder Section 189 of the Companies Act 2013. The maximum amount of such trade depositoutstanding during the year is Rs. 120000000 /- and the year-end balance of such tradedeposit is Rs. 120000000/-.

(a) The terms and conditions of the grant of such trade deposit is not prejudicial tothe company's interest.

(b) The trade deposit is interest free and is not repayable during the tenure of thetrade agreement.

(c) As explained in (b) above the trade deposit is not repayable during the tenor ofthe trade agreement and hence the question of overdue does not arise.

iv. The company has complied with the provisions of section 185 & 186 of theCompanies Act 2013 as may be applicable and to the extent applicable in respect ofloans investments guarantees & securities.

v. According to the information and explanations given to us the Company has notaccepted any Deposits from the public. Accordingly the provisions of clause (v) of theparagraph 3 of the order are not applicable to the Company.

vi. According to the information and explanations given to us the maintenance of thecost records has not been specified by the Central Government under section 148(1) of theCompanies Act 2013 in respect of the businesses carried on by the Company. Accordinglythe provisions of clause (vi) of the paragraph 3 of the order are not applicable to theCompany.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company we are of the opinion that there are delaysin depositing the undisputed statutory dues including Provident Fund Employees' StateInsurance Income- tax Sales-tax Service tax Value added tax and other statutory dueswith the appropriate authorities. According to the information and explanations given tous the Company had no liability of Excise duty and Customs duty during the year.

According to the information and explanations given to us except outstanding dues asdetailed in the chart below there are no disputed arrears of outstanding statutory duesas at the last day of the financial year i.e 31 March 2016 for a period of more than sixmonths from the date they became payable.

According to the information and explanations given to us except outstanding dues asdetailed in the chart below there are no undisputed arrears of outstanding statutory duesas at the last day of the financial year i.e 31 March 2016 for a period of more than sixmonths from the date they became payable.

Particulars Period to which amount relates Amount
1 Works contracts (TDS) - Construction division 2007-08 1320000
2 Works contracts (TDS) - Construction division 2008-09 885388
3 Works contracts (TDS) - Hotel division 2011-12 392312
4 Income tax 2011-12 2800180
5 Income tax 2009-10 5159370

(b) According to the information and explanations given to us the following are theparticulars of income tax amounts not paid as at 31 March 2015 by the Company on accountof dispute.

Name of the Statue Nature of the dues Demand (Rs.) Year to which the amount related Forum where dispute is pending
Income Tax Act 1961 Asst. made u/s. 143(3) r.w.s. 147 7581340/- AY 2010-11 CIT(A) Chennai Tamil Nadu.
Income Tax Act 1961 Asst. made u/s. u/s. 143(3) r.w.s. 147 2290324/- AY 2012-13 CIT(A) Chennai Tamil Nadu.
Income Tax Act 1961 Asst. made u/s. 143(3) 7977950 AY 2013-14 CIT(A) Chennai Tamil Nadu.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to its bankers or to any financialinstitutions except that in the case of loans due to Indian overseas bank pondicherryinstallment payments aggregating to Rs. 3496760 were outstanding as on 31st march 2016.

ix. During the year under consideration there were no moneys raised by way of initialpublic offer or further public offer by the company. The term loans taken by the companywere applied for the purposes for which they were raised.

x. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of fraud on or by the Company noticed or reported during the year nor have webeen informed of any such case by the management.

xi. The company have complied with the provisions of section 197 read with Schedule Vto the Companies Act 2013 in respect of the remuneration paid or provided to thedirectors.

xii. The company is not a Nidhi company hence the clause (xii) is not applicable tothe company.

xiii. In our opinion and according to the information and explanation given to us allthe transactions with the related parties are in compliance with section 177 and 188 ofthe companies Act 2013 and the details have been disclosed in the financial statements asrequired by the Accounting standards.

xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year hence the clause (xiv) is notapplicable to the company.

xv. The company has not entered into any non-cash transactions with directors orpersons connected with them and hence the provisions of section 192 of the companies Act2013 are not attracted.

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

Sd/-
(T.S. AJAI)
Chartered Accountant
Membership No.025524
Place : Hyderabad
Date : 28.05.2016

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF AMBICA AGARBATHIES AROMA AND INDUSTRIES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AMBICAAGARBATHIES AROMA AND INDUSTRIES LIMITED ("the Company") as of March 312016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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.

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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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

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.

Opinion

According to the information and explanations given to us and based on our audit thefollowing material weakness has been identified as at March 312016:

The Company has internal financial control which requires improvement commensuratewith the size of the Company and the nature of its business.

In our opinion except for the possible effects of the material weakness describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all respects adequate internal controls over financial reporting and suchinternal financial controls over financial reporting were operating effectively as ofMarch 312016 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

We have considered the material weakness identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 31 2016standalone financial statements of the Company and the material weakness do not affectour opinion on the standalone financial statements of the Company.

Place : Hyderabad (T.S. AJAI)
Date : 28.05.2016 Chartered Account
Membership No.25524