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Ambica Agar Ltd.

BSE: 532335 | NSE: AMBICAAGAR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE792B01012 | SECTOR: Trading

BSE Live

Oct 19, 15:40
19.05 -0.90 (-4.51%)
Volume
AVERAGE VOLUME
5-Day
10,100
10-Day
21,721
30-Day
12,058
2,847
  • Prev. Close

    19.95

  • Open Price

    20.20

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 19, 15:52
19.15 -0.90 (-4.49%)
Volume
AVERAGE VOLUME
5-Day
78,988
10-Day
113,424
30-Day
63,555
26,234
  • Prev. Close

    20.05

  • Open Price

    20.05

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    19.15 (533)

Annual Report

For Year :
2013 2012 2011 2010 2009 2008 2007 2004

Auditor's Report

We have audited the attached Balance Sheet of AMBICA AGARBATHIES AROMA & INDUSTRIES LIMITED, as at 31st March 2011, the Profit and Loss Account, and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit. 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 financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 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 during the course of our audit, we report that in our opinion: 1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fxed assets. (b) As explained to us, the fixed assets of the company have been physically verified by the management at the year-end and no discrepancies have been noticed on such verification. (c) In our opinion and according to the information and explanation given to us, substantial part of fixed assets has not been disposed off during the year and the going concern status of the Company is not affected. 2. (a) The inventories have been physically verified during the year by the Management. In our opinion, the frequency of verification is reasonable. (b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. (c) In our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material. 3. In respect of loans, secured or unsecured, granted by the company to companies, firms or other parties covered in the Register under Sec. 301 of the Companies Act, 1956, according to the information and explanations given to us: (a) The company has granted loan aggregating Rs. 1,07,40,100/- to one party during the year. The year-end and the maximum balance due amounts to Rs. 1,10,42,738/-. (b) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interests of the company. (c) The receipts of principal amounts and interest have .generally been regular as per stipulations. (d) There are no over dues of interest as at the year-end as per the terms of conditions of the agreement with the party. Since the company has not taken any loans from parties listed in the register maintained U/Sec 301, Clauses (iii) (e) to (g) of Paragraph 4 of CARO are not applicable. 4. In our opinion and according to the information and explanations given to us, the Company follows a system of 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 the purchases of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to the sale of goods manufactured by the Company. Further on the basis of examination of the books and records of the Company, we have not come across any instances of major weaknesses in the aforesaid internal control procedures. 5. (a) In our opinion, the transactions that need to be entered into a register in pursuance of Section 301 of the Act have been so entered. (b) Each of the above transactions has been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. 6. According to the information and explanations given to us, the Company has not accepted any deposits from the public. Hence the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA of the Companies Act 1956 and the Rules there under etc. are not applicable. 7. In our opinion, the internal audit system of the Company needs to be strengthened commensurate to the size and nature of its business. 8. According to the information given to us the Central Government has not prescribed maintenance of cost records U/Sec 209(1) (d) of the Companies Act in respect of the business of the Company. 9. (a) (i) As per the records of the company and information and explanation provided to us, the Company is generally regular in depositing the undisputed statutory dues with appropriate authorities including Provident Fund, Employees State Insurance, Sales Tax and other statutory dues. Except the following, no undisputed amounts were outstanding as at 31.03.11 for a period more than six months from the day they become payable: Sl Particulars Amount No (Rs.) 1 Works Contracts (TDS)- F Y. 2007-08-Construction Division 13,20,000 2 Works Contracts (TDS)- F Y. 2008-09-Construction Division 8,85,388 3 Income Tax - FY. 2008-09 13,33,308 4 FBT - FY. 2008-09 11,32,421 5 Income Tax - FY. 2009-10 18,41,750 (a) (ii) As per the information furnished to us the amounts of Rs.4.27 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. (b) According to the information and explanations given to us, there are no statutory dues with appropriate authorities including Provident Fund, Employees State Insurance, Sales Tax and other statutory dues which have not been deposited on account of any dispute as at 31st March, 2011, excepting: Year to Forum where Name of the Nature of the Demand which the dispute Statue dues (Rs.) amount is pending related Income Tax Asst. made u/s 87,75,480/- AY 2003-04 CIT(A) Act, 1961 143(3) r.w.s. 147 Chennai, Tamil Nadu. 10. The Company has no accumulated losses as at 31st March, 2011 and it has not incurred any cash losses in the financial year covered by the audit or in the immediately preceding financial year. 11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not, as at 31st March, 2011, defaulted in repayment of dues to financial institutions, banks or debenture holders. 12. The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The Company is not in the business of chit funds and hence any special statutes relating to chit fund / nidhi / mutual beneft fund / societies are not applicable to the operations of the Company. 14. The Company is not dealing or trading in shares, securities, debentures and other investments. 15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions, except (a) The corporate guarantee given to Indian Overseas Bank on behalf of Ambica Infraventures Pvt. 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. (b) Bank Guarantee availed from Dhanalakshmi Bank for an amount of Rs.21,57,500/- and issued to Visakhapatnam Urban Development Authority which has matured on 14-4-2009, issued on behalf of M/s. Ambica Infra Ventures Pvt. Ltd., which was the subsidiary at the time when the Bank Guarantee was issued by the company. 16. On a broad examination of the records of the Company we are of the opinion that the term loans availed by the Company from Banks/ Financial institutions have been applied for the purposes for which term loans were obtained, except the Term Loan of Rs. 3 crores availed from Corporation Bank sanctioned for the purpose of acquiring new machinery for Agarbathi Unit, which has been used partly for the purpose of acquiring machinery for the Agarbathi Unit and partly for other business purposes of the company. 17. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, the funds raised on short term basis have not been used for long term investments and vice versa. 18. The Company has made 8,00,000 Equity Shares on preferential allotment basis to two parties namely (1) Mrs. P. A. Y. Madhavi and (2) Mrs. Alapati Santoshi each 4,00,000 Equity shares who are listed in the register maintained U/Sec 301 of the Companies Act, 1956 and the price at which shares have been issued is in terms of approval of the shareholders of the company and as per the applicable statutory provisions including the SEBI(ICDR) Regulations, 2009 and hence is not prejudicial to the interest of the company. All the formalities regarding the above preferential allotment has been duly complied with by the company and the said 8,00,000 Equity shares of Rs. 10/- each allotted on preferential basis made by the company are listed and admitted to dealings on Bombay stock exchange vide Notice dt. 29.06.2011. 19. The Company has not issued any debentures during the year and outstanding as at the end of the year. 20. The Company has not raised any monies by way of public issues during the year. 21. 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. Further to our comments above, we report that: (i) 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; (ii) 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; (iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; (iv) In our opinion, the Balance Sheet, Profit and Loss Account and 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; (v) On the basis of written representations received from the directors, as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of Clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956; (vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies and Notes thereon 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: (a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011; (b) In the case of the Profit and Loss Account, of the profit for the year ended on that date; and (c) In the case of the Cash Flow Statement, of the cash flow for the year ended on that date. Sd/- (T S Ajai) Chartered Accountant Place : Hyderabad Date : 30.05.2011