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Ambica Agar | Auditor's Report > Trading > Auditor's Report from Ambica Agar - BSE: 532335, NSE: AMBICAAGAR
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Ambica Agar

BSE: 532335|NSE: AMBICAAGAR|ISIN: INE792B01012|SECTOR: Trading
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Ambica Agar is not traded in the last 30 days
Mar 12
Auditor's Report (Ambica Agar) Year End : Mar '13
1.  We have audited the attached Balance Sheet of AMBICA AGARBATHIES AND
 AROMA INDUSTRIES LIMITED, (the Company) as at 31st March 2013,
 the Statement of Profit and Loss and also the Cash Flow Statement for
 the year ended on that date annexed thereto. These fnancial statements
 are the responsibility of the Company''s management.  Our responsibility
 is to express an opinion on these fnancial statements based on our
 audit.
 
 2.  We conducted our audit in accordance with auditing standards
 generally accepted in India. Those Standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free of material misstatement. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures in the fnancial statements. An audit also includes
 assessing the accounting principles used and signifcant estimates made
 by management, as well as evaluating the overall fnancial statement
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003 issued
 by the Central Government of India in terms of sub-section (4A) of
 section 227 of the Companies Act, 1956 and on the basis of such checks
 of the books and records of the Company, as we considered appropriate
 and the information and explanations given to us, we enclose in the
 Annexure, a statement on the matter specifed in paragraphs 4 and 5 of
 the said order.
 
 4.  Further to our comments in the Annexure referred to above, we
 report that:
 
 a.  We have 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 appears from our examination of
 those books;
 
 c.  The Balance Sheet, the Statement of Proft 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 Balance Sheet, the Statement of Proft and Loss
 and the Cash Flow Statement dealt with by this report comply with the
 accounting standards referred to in sub-section (3C) of section 211 of
 the Companies Act, 1956;
 
 e.  On the basis of written representations received from the
 directors, as on 31st March, 2013, and taken on record by the Board of
 Directors, we report that none of the directors are disqualifed as on
 31st March, 2013 from being appointed as a director in terms of clause
 (g) of sub-section (1) of section 274 of the Companies Act, 1956;
 
 f.  In our opinion, and to the best of our information and according to
 the explanations given to us, the said accounts give the information
 required by the Companies Act, 1956, in the manner so required and give
 a true and fair view in conformity with the accounting principles
 generally accepted in India:
 
 i. In the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2013;
 
 ii. In the case of the Statement of Proft and Loss, of the proft for
 the year ended on that date; and
 
 iii. In the case of the Cash Flow Statement, of the cash fows for the
 year ended on that date.
 
 Annexure to the Auditors'' Report
 
 (Refer to in paragraph 3 of our report of even date to the Members of
 Ambica Agarbathies Aroma and Industries Limited for the year ended 31st
 March 2013)
 
 i.  In respect of its fxed assets:
 
 (a) The Company has maintained proper records showing full particulars,
 including quantitative details and situation of all fxed assets.
 
 (b) The fixed assets of the company have been physically verifed by the
 management during the year, which in our opinion is reasonable, having
 regard to the size of the Company and nature of its assets. According
 to the information and explanation given to us, no material
 discrepancies were noticed on such verifcation.
 
 (c) In our opinion, and according to the information and explanations
 given to us, fxed assets disposed of during the year were not
 substantial, and therefore, do not affect the going concern assumption.
 
 ii.  In respect of its inventory:
 
 (a) As explain to us, the inventories were physically verifed during
 the year by the Management at reasonable intervals.
 
 (b) In our opinion and according to the information and explanations
 given to us, the procedures of physical verifcation of the inventory
 followed by the Management were reasonable and adequate in relation to
 the size of the company and nature of its business.
 
 (c) In our opinion and according to the information and explanations
 given to us, the Company is maintaining proper records of inventory and
 no material discrepancies were noticed on such physical verifcation.
 
 iii. In respect of loans, secured or unsecured, granted by the Company
 to companies, frms or other parties covered in the Register under
 Section 301 of the Companies Act, 1956. According to the information
 and explanations given to us:
 
 (a) The company has granted unsecured loans to two Companies covered in
 the register maintained under Section 301 of the Companies Act, 1956.
 The maximum amount outstanding during the year is Rs. 12,49,54,981 /-
 and the year-end balance of the loans granted is Rs. 409,33,672/-.
 
 (b) In our opinion, the rate of interest and other terms and conditions
 of such loans given by the company are not, prima facie, prejudicial to
 the interest of the company.
 
 (c) In the case of loans granted to companies listed in the register
 maintained under section 301, the borrowers have been regular in
 repaying the principal amounts as stipulated and in the payment of
 interest.
 
 (d) There is no overdue amount in excess of Rs.1,00,000/- in respect of
 loans granted by the company, to the parties listed in the register
 maintained under Section 301 of the Companies Act, 1956.
 
 In respect of loans, secured or unsecured, taken by the Company from
 companies, frms or other parties covered in the Register maintained
 under Section 301 of the Companies Act, 1956, according to the
 information and explanations given to us:
 
 (e) The Company has not taken any loans, secured or unsecured, by the
 companies, firms or other parties covered in the Register maintained
 under Section 301 of the Companies Act, 1956. Accordingly, the
 requirements of clauses (iii) (f) and (iii) (g) of paragraph 4 of the
 order are not applicable to the Company.
 
 iv. In our opinion and according to the information and explanations
 given to us, the company has an internal control procedures, which in
 our view requires improvement, commensurate with the size of the
 Company and the nature of its business with regard to purchases of
 inventory and fxed assets and with regard to the sale of goods and
 services.  Further on the basis of examination of the books and records
 of the company, we have not come across any instances of continuing
 failure to correct major weaknesses in the internal control system.
 
 v. In respect of the contracts or arrangements referred to in Section
 301 of the Companies Act, 1956:
 
 (a) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements maintained under Section 301 of the Companies Act, 1956
 have been so entered.
 
 (b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements entered in the register maintained under Section 301 of
 the Companies Act, 1956 and exceeding a value of Rs.5,00,000/- in
 respect of any party during the year have been made at prices which are
 prima facie reasonable having regard to the prevailing market prices at
 the relevant time.
 
 vi. According to the information and explanations given to us, the
 Company has not accepted any deposits from the public. Therefore, the
 provisions of clause (vi) of the paragraph 4 of the order are not
 applicable to the Company.
 
 vii. In our opinion, the internal audit system of the company needs to
 be strengthened commensurate with the size and nature of its business.
 
 viii. The maintenance of the cost records is made mandatory for
 Agarbhati division vide notifcation no. G.S.R.429(E ) dated 3 June 2011
 issued by the Ministry of Corporate affairs. We are unable to comment
 on the compliance of the same since the Company is in the process of
 complying.
 
 ix.  In respect of statutory dues:
 
 (a) According to the information and explanations given to us and on
 the basis of our examination of the records of the company, amounts
 deducted/ accrued in the books of account in respect of undisputed
 statutory dues including Provident Fund, Employees'' State Insurance,
 Income-tax, Sales-tax, Service tax and otherstatutory dues have not
 generally been regularly deposited during the year by the Company with
 the appropriate authorities. As explained to us, the Company did not
 have any dues on account of Wealth tax, Customs duty, Excise duty and
 Investor Education and Protection Fund.
 
 (b) According to the information and explanations given to us, except
 in case of income tax and works contracts (tds) there are no undisputed
 amounts payable in respect of Provident Fund, Employees'' State
 Insurance, Sales tax, Service tax and other statutory dues were in
 arrears as at 31 March 2013 for a period of more than six months from
 the date they became payable. As explained to us, the provisions of
 Wealth tax, Customs duty, Excise duty were not applicable to the
 Company.
 
 
 Sl Particulars                          Period to which      Amount No
                                         amount relates
 
 1  Works contracts (TDS) - Construction
    division                                2007-08           13,20,000
 
 2  Works contracts (TDS) - Construction 
    division                                2008-09            8,85,388
 
 3  Works contracts (TDS) - Hotel 
    division                                2011-12            3,92,312
 
 4  Income Tax                              2010-11           59,94,834
 
 5  Income tax                              2011-12           42,52,948
 
 6  Income Tax                              2012-13           38,33,056
 
 
 As per the information furnished to us the amounts of Rs.6,23,674 Lakhs
 lying with the company in unpaid dividend account which have remained
 unclaimed or unpaid for a period of 7 years or more have not been
 transferred to the account of the Central Government as required by Sec
 205A (5) of the Companies Act, 1956.
 
 (c) According to the information and explanations given to us, there
 are no dues of Sales tax, and Service tax which have not been deposited
 with the appropriate authorities on the account of any dispute. As
 explained to us the provisions of Wealth tax, Customs duty excise duty
 are not applicable to the Company. The following dues of Income-tax
 have not been deposited by the Company on account of disputes:
 
 
 Name of the Statue     Nature of the dues           Demand (Rs.)
 
 Income Tax Act, 1961   Asst. made                   87,75,480/-
                        r.w.s. 143(3) u/s. 147
 
 Income Tax Act, 1961   Asst. made                   75,81,340/-
                        r.w.s. 143(3) u/s. 147
 
 
 Name of the Statue     Year to which         Forum where 
                         the amount           dispute is
                          related               pending
 
 Income Tax Act, 1961   AY 2003-04          CIT(A), Chennai,
                                            Tamil Nadu.
 
 Income Tax Act, 1961   AY 2010-11          CIT(A), Chennai,
                                            Tamil Nadu.
 
 
 x. The Company does not have any accumulated losses at the end of the
 fnancial year and has not incurred cash losses in the fnancial year and
 in the immediately preceding fnancial year
 
 xi. In our opinion and according to the information and explanations
 given to us, the Company has not defaulted in repayment of dues to its
 bankers or to any fnancial institutions except that in the case of
 loans due to the banks, the installments of Rs. 7,05,59,789 were repaid
 with a delay ranging from 14 to 62 days. The Company did not have any
 outstanding debentures during the year.
 
 xii. In our opinion, the company has not granted any loans or advances
 on the basis of security by way of pledge of shares, debentures and
 other securities.
 
 xiii. In our opinion, the company is not in the business of chit funds
 or nidhi / mutual beneft fund / society. Accordingly, the provisions of
 clause (xiii) of paragraph 4 of the order are not applicable to the
 Company.
 
 xiv. In our opinion and according to the information and explanations
 given to us, the Company is not dealing in shares, securities,
 debentures and other investments.  Accordingly, the provisions of
 clause (xiv) of paragraph 4 of the order are not applicable to the
 Company.
 
 xv In our opinion and according to the information and explanations
 given to us, the terms and conditions on which the company has given
 guarantees for loans taken by others from banks or fnancial
 institutions are not prejudicial to the interest of the company.
 
 The corporate guarantee given to Indian Overseas Bank on behalf of
 Ambica InfraventuresPvt.  Ltd., which was a subsidiary of the company
 at the time when the Corporate Guarantee was issued by the company and
 according to the information and explanation furnished to us, the
 process of substitution of the said Corporate Guarantee by the new
 management of Ambica Infraventures Pvt. Ltd., is in progress.
 
 xvi. In our opinion and according to the information and explanations
 given to us, the term loans taken by the company have been applied for
 the purpose for which they were raised.
 
 xvii. According to the information and explanations given to us and on
 an overall examination of the balance sheet of the company, we are of
 the opinion that the funds raised on short term basis have not been
 used for long term investments.
 
 xviii. According to the information and explanations given to us, the
 Company has not made any preferential allotment of shares to parties
 and Companies covered in the register maintained under Section 301 of
 the Companies Act, 1956.
 
 xix. According to the information and explanations given to us the
 Company did not have any outstanding debentures during the year.
 
 xx. According to the information and explanations given to us, the
 Company has not raised any money by issue of shares to public during
 the year.
 
 xxi. During the course of our examination of the books and records of
 the company, carried out in accordance with the generally accepted
 auditing practices in India, and according to the information and
 explanations given to us, we have neither come across any instances of
 fraud on or by the Company, noticed or reported during the year nor
 have we been informed of any such case by the management.
 
 
 
 
                                                        Sd/-
 
                                                    (T.S. AJAI)
 
                                                 Chartered Accountant 
 
                                                 Membership No.025524
 
 
 
 Place : Hyderabad 
 
 Date : 24.08.2013
Source : Dion Global Solutions Limited
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