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Ambica Agarbathies Aroma & Industries Ltd.

BSE: 532335 Sector: Others
NSE: AMBICAAGAR ISIN Code: INE792B01012
BSE 00:00 | 24 Feb Ambica Agarbathies Aroma & Industries Ltd
NSE 05:30 | 01 Jan Ambica Agarbathies Aroma & Industries Ltd
OPEN 4.12
PREVIOUS CLOSE 4.12
VOLUME 150
52-Week high 4.12
52-Week low 0.00
P/E 0.55
Mkt Cap.(Rs cr) 7
Buy Price 4.13
Buy Qty 15.00
Sell Price 4.33
Sell Qty 100.00
OPEN 4.12
CLOSE 4.12
VOLUME 150
52-Week high 4.12
52-Week low 0.00
P/E 0.55
Mkt Cap.(Rs cr) 7
Buy Price 4.13
Buy Qty 15.00
Sell Price 4.33
Sell Qty 100.00

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

Company auditors report

TO THE MEMBERS OF AMBICA AGARBATHIES AROMA AND INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Ambica Agarbathies Aroma &Industries Limited ("the Company") which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss including other comprehensive income CashFlow Statement and Statement of changes in equity for the year then ended and a summary ofsignificant policies and other explanatory information. (herein after referred asfinancial statements)

Management's Responsibility for the Financial Statements The Company's Board ofDirectors is responsible for the matters stated in Section 134(5) of the Companies Act2013 ("the Act") with respect to the preparation of these financial statementsthat give true and fair view of the financial position financial performance includingOther comprehensive income cash flows and the statement of changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind

AS) specified under Section 133 of the Act read with Companies(Indian accountingStandards) Rules 2015. As amended This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. Auditor'sResponsibility Our responsibility is to express an opinion on these financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing proceduresaccounting to obtain auditevidence about the amounts and the disclosures in the financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the

Company has in place an adequate internal financial controls system over financialoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March

31 2018 its profit including Other comprehensive income its Cash Flows and thestatement of changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The Balance Sheet the Statement of Profit and Lossincluding other comprehensive income the Cash Flow Statement and the Statement of changesin equity dealt with by this Report are in agreement with the books of account; d) In ouropinion the aforesaid financial statements comply with the Accounting Standards specifiedunder section 133 of the Act read with Rule 7 of the Companies (Indian accountingstandards) Rules 2015. e) On the basis of written representations received from thedirectors as on March 31 2018 taken on record by the Board of Directors there are twodirectors disqualified as on March

31 2018 from being appointed as a director in terms of Section 164 (2) of the Act. f)With respect to the adequacy of the internal financial controls over financial reportingof the

Company and the operating effectiveness of such controls refer to our separate Reportin

"Annexure B". g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements. ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. As per the information furnished to us the amounts of Rs.623674 lying withthe company in unpaid dividend account which have remained unclaimed or unpaid for aperiod of 7 years or more have not been transferred to the Investor Education andProtection Fund by the Company

For Ramasamy Koteswara Rao & Co LLP
Chartered Accountants
Firm Registration Number: 010396S/S200084
(C V Koteswara Rao)
Partner
Membership No.028353
Place: Hyderabad
Date: 11-06-2018

Annexure to the Auditors' Report

Annexure-A to the Auditors' Report (referred to in paragraph 1 of our Report of evendate to the Members of "Ambica Agarbathies Aroma & Industries Limited" forthe year ended March 31 2018)

i. On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that;

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

(b) All fixedassets have been physically verified by the management during the year inaccordance with a phased program of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. According to theinformation furnished to us no material discrepancies have been noticed on suchverification.

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

ii. The Company has conducted physical verification of the inventory at regularintervals and no material discrepancies were noticed during such verification.

iii. The Company has not granted any loans secured or unsecured to companiesfirmsLimited Liability partnerships or other parties covered in the Register maintainedunder section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (C) ofthe Order are not applicable to the Company and hence not commented upon.

iv. The company does not have granted any loans nor made investments hence provisionsof Sections 185 and 186 of Companies Act 2013. are not applicable

v. The Company does not have accepted any deposits from the public and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard to the deposits accepted from the public are not applicable.

vi. The maintenance of cost records under section 148(1) of the Companies Act 2013 isnot applicable for any of the activities or services provided by the company

vii. (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company is oes not have beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income-Tax Sales tax Service Tax Value added Tax Cess andany other statutory dues with the appropriate authorities. According to the informationand explanations given to us undisputed amounts payable in respect of the above were inarrears as at March 31 2018 for a period of more than six months from the date on whenthey become payable are as follows

Sl No. Particulars Nature of Due Relevant Year Assessment Amount
1 The Income Tax Act 1961 Income Tax 2003-04 to 2012-13 8079609

(b) According to the information and explanation given to us there are no dues ofsales tax service tax value added tax and goods and services tax except income taxoutstanding on account of any dispute.

Name of the Statute Nature of dues Demand Assessment Year Forum Where Dispute is Pending
Income Tax act1961 Assessment made u/s. 143(3) 6490950 2013-14 CIT(A)Chennai Tamil Nadu.
Income Tax act1961 Assessment made u/s. 154 3144550 2015-16 CIT(A)Chennai Tamil Nadu.

viii. The Company has not defaulted in any repayment of loans or borrowings from anyfinancial institution banks government or debenture holders during the year.Accordingly the provisions of clause 3 (viii) of the Order are not applicable to theCompany and hence not commented upon.

ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

x. Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

xi. According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion the Company is not a Nidhi Company. Accordingly the provisions ofclause 3 (xii) of the Order are not applicable to the Company and hence not commentedupon.

xiii. In our opinion all transactions with the related parties are in compliance withsection 188 of Companies Act 2013 and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

xiv. The Company does not have made a preferential allotment of equity shares and fullyconvertible debentures during the year. Accordingly the provisions of clause 3 (xiv) ofthe Order are not applicable to the Company and hence not commented upon.

xv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

xvi. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934. Accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For Ramasamy Koteswara Rao & Co LLP
Chartered Accountants
Firm Registration Number: 010396S/S200084
(C V Koteswara Rao)
Partner
Membership No.028353
Place : Hyderabad
Date : 11-06-2018

"Annexure B" to the Independent Auditor's Report

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 & Industries Limited ("the Company") as of March 31 2018in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management financial is responsible for establishing and maintaininginternal 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 CompaniesAct 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 extent applicable to an audit of internal financial controls bothapplicable to an audit of

Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonableassuranceaboutwhetheradequateinternalfinancialcontrols over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financialreporting and theiroperating effectiveness. Our audit of internal financial controls over financialreportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.We believe that the audit evidence we have obtained is sufficientand 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 statements for external purposes in accordance with generally acceptedaccounting principles.

A company's internal financial control over financial reporting includes those policiesand 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) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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 financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Ramasamy Koteswara Rao & Co LLP
Chartered Accountants
Firm Registration Number: 010396S/S200084
(C V Koteswara Rao)
Partner
Membership No.028353
Place : Hyderabad
Date : 11-06-2018