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Ambica Agarbathies Aroma & Industries Ltd.

BSE: 532335 Sector: Others
NSE: AMBICAAGAR ISIN Code: INE792B01012
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NSE 14:21 | 06 Feb 24.15 0.10
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OPEN 25.20
PREVIOUS CLOSE 24.00
VOLUME 110
52-Week high 39.70
52-Week low 19.25
P/E 43.64
Mkt Cap.(Rs cr) 41
Buy Price 24.05
Buy Qty 15.00
Sell Price 24.55
Sell Qty 7.00
OPEN 25.20
CLOSE 24.00
VOLUME 110
52-Week high 39.70
52-Week low 19.25
P/E 43.64
Mkt Cap.(Rs cr) 41
Buy Price 24.05
Buy Qty 15.00
Sell Price 24.55
Sell Qty 7.00

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

Company auditors report

To

The Members of Ambica Agarbathies Aroma & Industries Ltd Report on the Audit of theInd AS Financial Statements Opinion

We have audited the accompanying financial statements of Ambica Agarbathies Aroma& Industries Limited

(the "Company") which comprise the Balance Sheet as at 31 March 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as the "financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 as amended (the "Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31 March 2022 its profit includingtotal other comprehensive income its cash flows and the changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the "Auditor'sResponsibilities for the Audit of the Financial Statements" section of our report. Weare independent of the Company in accordance with the 'Code of Ethics' issued by theInstitute of Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Other Information

• The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Directors report but does notinclude the financial statements and our auditor's report thereon.

• Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

• In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

• If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and those charged with governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation and presentation of these financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for

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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process. Auditor's Responsibilities for the Audit of the FinancialStatements:

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under sectionl43(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements for thefinancial year ended 31 March 2022 and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 and proper returnsadequate for the purposes of our audit have been received from the branch not visited byus;

c) During the year the company has no branch offices hence reporting under section143(8) of the act is not applicable to the company.

d) The Balance Sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account and with the returnsreceived from the branch not visited by us;

e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended;

f) On the basis of the written representations received fromthe directors ason 31 March2022 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act;

g) 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 B" to this report;

h) In our opinion the managerial remuneration for the year ended 31 March 2022 hasbeen paid/provided by the Company to its directors is in accordance with the provisions ofsection 197 read with Schedule V to the Act;

i) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

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 derivatives contractsfor which there were any material foreseeable losses;

iii. As per the information furnished to us the amounts of Rs. 623674/- lying withthe company inunpaid dividend account which have remained unclaimed or unpaid for a periodof 7 years or more have not been transferred to the Investor Education and Protection Fundby the Company.

iv. (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries ") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

(c) Based on such audit procedures that were considered reasonable and appropriate inthe circumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material misstatement.

v. During the year the company has not declared any dividend. Therefore compliance withsection 123 of the act was not applicable.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

Annexure 'A' referred to in paragraph 2 under the heading 'Report on Other Legal andRegulatory Requirements' of our report to the Members ofAmbica Agarbathies Aroma &Industries Limited of even date

In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that:

i. (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangibleassets.

(b) The Company has a program of physical verification to cover all the items ofProperty Plant and Equipment in a phased manner over a period of every three years whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. Pursuant to the program certain Property Plant and Equipment were physicallyverified by the management during the year and no material discrepancies were noticed onsuch verification.

(c) Title deeds of all the immovable properties (other than properties where thecompany is the lessee and the lease agreements are duly executed in favour of thelessee)are held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year ended 31 March 2022.

(e) There are no proceedings initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 and rules madethereunder.

ii. (a) The management has conducted physical verification of inventory at reasonableintervals during the year. In our opinion the coverage and the procedure of suchverification by the management is appropriate. There were no material discrepanciesnoticed on such physical verification.

(b) According to the information and explanations given to us at any point of time ofthe year the Company has not been sanctioned any working capital facility from banks orfinancial institutions and hence reporting under clause (ii)(b) of the Order is notapplicable.

iii. The Company has not made any investments in provided any guarantee or securityand granted any loans or advances in the nature of loans secured or unsecured tocompanies firms Limited Liability Partnerships or any other parties during the year andhence reporting under clause (iii) of the Order is not applicable.

iv. In investments guarantees and securities in respect of which provisions of Section185 and 186 of the

Companies Act 2013 are applicable have been complied with by the Company.

v. The Company has neither accepted any deposits from the public nor accepted anyamounts which are deemed to be deposits within the meaning of Sections 73 to 76 of the Actand the Companies (Acceptance of Deposits) Rules 2014 (as amended)to the extentapplicable. Accordingly the requirement to report on clause 3(v) of the Order are notapplicable to the Company.

vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for any of the business activities carriedout by the Company. Thus reporting under clause 3(vi) of the order is not applicable tothe Company.

vii. (a) The Company is irregular in depositing with appropriate authorities undisputedstatutory dues including Goods and Services tax Provident Fund Employees 'StateInsurance Income Tax Sales Tax Service Tax Duty of Custom Duty of Excise Value AddedTax Cess and other statutory dues applicable to it. According to the information andexplanations given to us no undisputed amounts payable in respect of these statutory dueswere outstanding at the year end for a period of more than six months from the date theybecame payable.

S. No. Particulars Nature of Due Relevant Assessment Years Amount in Rs.
1. The Income Tax Act 1961 Income Tax 2003-04 8309130

(b) Details of statutory dues referred to in sub-clause (a) above which have not beendeposited as on March 312022 on account of disputes are given below:

Name of the Statute Nature of dues Demand Assessment Year Forum Where Dispute is Pending
Income Tax act1961 Assessment made u/s. 147 3691644* 2017-18 National Faceless Appeal Centre (NFAC)
Income Tax act1961 Assessment made u/s. 143(3) 103852480* 2015-16 National Faceless Appeal Centre (NFAC)

including interest

viii. The Company has not surrendered or disclosed any transaction previouslyunrecorded in the books of account in the tax assessments under the Income-tax Act 1961as income during the year. Accordingly the requirement to report on clause 3(viii) of theOrder is not applicable to the Company.

ix. (a) The company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender.

(b) The Company has not been declared a wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) The Company has not taken any term loans during the year and there are nounutilized term loans at the beginning of the year and hence reporting under clause3(ix)(c)of the Order is not applicable.

(d) On an overall examination of the financial statements of the Company no fundsraised on short-term basis have been used for long-term purposes by the company.

(e) On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries as defined under the Companies Act 2013.

(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiaries as defined under the Companies Act 2013. Hence the requirement toreport on clause 3(ix)(f) of the Order is not applicable to the Company.

x. (a) The Company has not raised any money during the year by way of initial publicoffer/further public offer (including debt instruments) and hence the requirement toreport on under clause 3(x)(a) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x)(b) of the Order is not applicable.

xi. (a) No fraud by the Company or no fraud on the Company has been noticed or reportedduring the year.

(b) During the year no report under sub-section (12) of Section 143 of the CompaniesAct 2013 has been filed by secretarial auditor or by us in Form ADT-4 as prescribed underRule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

xii. The Company is not a Nidhi Company as per the provisions of the Companies Act2013. Therefore the requirement to report on clause 3(xii)(a) (b) and (c) of the Orderis not applicable to the Company.

xiii. Transactions with the related parties are in compliance withsections 177 and 188of the Companies Act 2013 where applicable and the details of the related partytransactions have been disclosed in the notes to the financial statements as required bythe applicable accounting standards.

xiv. (a) The Company has an internal audit system commensurate with the size and natureof its business.

(b) The internal audit reports of the Company issued till the date of the audit reportfor the period under audit have been considered by us.

xv. The Company has not entered into any non-cash transactions with its Directors orpersons connected with its directors and hence requirement to report on clause 3(xv) ofthe Order is not applicable to the Company.

xvi. (a) The provisions of section 45-IA of the Reserve Bank of India Act 1934 are notapplicable to the

Company. Accordingly the requirement to report on clause 3(xvi)(a) of the Order is notapplicable to the Company.

(b) There is no Core Investment Company as a part of the group. Accordingly therequirement to report on clause 3(xvi)(d) of the Order is not applicable to the Company.

xvii. The Company has not incurred cash losses in the current year and in theimmediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year andaccordingly requirement to report on clause 3(xviii) of the Order is not applicable to theCompany.

xix. On the basis of the financial ratios disclosed in Note 24 to the financialstatements ageing and expected dates of realization of financial assets and payment offinancial liabilities other information accompanying the financial statements and ourknowledge of the Board of Directors and Management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatCompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.

xx. In our opinion and according to the information and explanations given to us thecompany was not mandatory to made contributions towards corporate social responsibilityand also the company was not made any contributions towards Corporate SocialResponsibility voluntarily. Therefore requirement to report on clause 3(xx) of the Orderis not applicable to the Company.

Annexure 'B' referred to in paragraph 1(g) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Ambica Agarbathies Aroma &Industries Limited of even date

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

To

The Members of Ambica Agarbathies Aroma & Industries Limited

We have audited the internal financial controls with reference to financial statementsof AMBICA AGARBATHIES AROMA & INDUSTRIES LIMITED (the "Company") asof March 31 2022 in conjunction with our audit of the financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Management of the Company 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 (the "ICAI"). 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 safeguarding ofits 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to these financial statements based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the ICAI and the Standardson Auditing prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to these financial statements was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to these financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 withreference to these financial statements.

Meaning of Internal Financial Controls with reference to these Financial Statements

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controlswith reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlswith reference to financial statements and such internal financial controls with referenceto financial statements were operating effectively as at 31 March 2022 based on thecriteria for internal financial control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe ICAI.

Registration Number: 010396S/S200084 For Ramasamy Koteswara Rao and Co LLP Chartered Accountants Firm
Place: Hyderabad Sd/ (C V Koteswara Rao) Partner Membership No.028353
Date: 30-05-2022 UDIN: 22028353AQEXLJ1290

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