| To The Members,
The Directors have pleasure in presenting herewith the 18th Annual
Report of Company together with the Audited Accounts for the fnancial
year ended 31st March, 2013
FINANCIAL RESULTS: (Rs.in lakhs)
YEAR ENDED YEAR ENDED
PARTICULARS 31.03.2013 31.03.2012
Sales 9943.45 8542.38
Other Income 131.38 114.99
TOTAL Income 10074.83 8657.37
Expenditure 9585.20 8138.27
Profit before depreciation and Income tax 489.63 519.10
Depreciation 298.05 267.41
Net proft before tax 191.58 251.69
Provision for taxation
a. Current tax 38.33 73.29
b. Deferred tax 23.83 (9.91)
Profit after tax 129.43 188.31
OVERALL PERFORMANCE OF THE COMPANY:
During the fnancial year under review the overall performance of the
Company was good the overall turnover has increased to Rs 9943.45 Lakhs
as compare to Rs 8542.38 Lakhs and the Net proft was decreased to Rs
129.43 Lakhs as compare to Rs 188.31 Lakhs due to operational losses
incurred in the newly started hotel at Vizag.
When it comes to Segment wise performance of the Company the Turnover
of the Agarbathies Division was Rs 8303.01 Lakhs as Compare to Rs
7144.57 Lakhs and the Turnover of hotel division was Rs 1706.76 Lakhs
as compared to Rs 1455.77 Lakhs and the turnover in Construction
Division(Windmill) was 65.07 lakhs as compared to Rs. 57.03 lakhs,
other projects are in fnishing stages.
DIVIDEND
Your Directors do not recommend any Dividend forthe Financial
Year2012-2013 as the profts are planned to be ploughed back into the
business operations.
PERSONNEL:
None of the Employees of the Company are drawing remuneration exceeding
limits prescribed U/s 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 2011.
FIXED DEPOSITS:
Your company has not accepted any deposits falling under Section 58A of
the Companies Act, 1956 read with Companies (Acceptance of Deposits)
Rules 1975 during the year.
DIRECTORS:
Sri P Sreedharan Venkatesan Director of the Company retires by rotation
at the ensuing annual general meeting and being eligible offer
themselves for re-appointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956 the directors
of your Company hereby confrm that:
i. In preparation of annual accounts for the fnancial year ended 31st
March, 2013 the applicable accounting standards have been followed
along with proper explanation relating to material departure, if any,
there from;
ii. The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give true and fair view of the state of affairs of
the Company at the end of the fnancial year ended 31st March 2013 and
of the proft and loss of the Company for that period;
iii. The directors have taken proper and suffcient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act, for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities;
iv The Directors have prepared the annual accounts on a going concern
basis.
AUDITORS:
The Statutory Auditor, Sri T S Ajai, Chartered Accountant, hold office
till the conclusion of ensuing Annual General Meeting. The Company is
in receipt of confrmation from the Statutory Auditorthat in the event
of his re-appointment as Statutory Auditor at the ensuing Annual
General Meeting, such appointment will be in accordance with the limits
specifed in Section 224 (1B) of the Companies Act, 1956.
Reply to Auditors Qualifcation
1. With regard to the deposit of Amounts to statutory Authorities
(Point No. 9 (a) of the Auditors Reports). Your Board would like to
bring to your kind notice that due to liquidity problem the company has
delayed in depositing the amount.
2. With regard to transferring of unpaid dividend to Investor
Education Fund, Your board would like bring to your kind notice that
the company is under the process of reconciliation of names of share
holders and transfer the same.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO:
As required under Section 217 (1) (e) of the Companies Act, 1956 read
with Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988, the information is given as hereunder:
A. Conservation of Energy - The present operation of the Company do
not involve high energy consumption. However steps being taken to
minimize energy consumption where ever possible
B. Research & Development - The Research and Development division of
Agarbathies department continues to focus on introducing of new brands.
C. Technology Absorption - Not Applicable
D. Foreign Exchange Earnings & Outgo:
(In Rs. Lakhs)
2012-13 2011-12
Foreign Exchange earnings Nil 15.21
Foreign Exchange outgo Nil Nil
MANAGEMENT DISCUSSION AND ANALYSIS:
Aspects of Management Discussion and Analysis are enclosed as Annexure
- I to this report
CORPORATE GOVERNANCE:
Report on Corporate Governance including Auditor's Certifcate on
Compliance with the code of Corporate Governance under Clause 49 of the
listing agreement is enclosed as Annexure - II to this report.
ACKNOWLEDGEMENTS:
Your Directors place on record, their appreciation for the co-operation
and support from the Bankers, Financial Institutions, the stockiest and
distributors, Supplier and Customers.
Your Directors would also like to place on record their sincere
appreciation and gratitude to the Shareholders, Central and State
Government agencies etc for their support and co-operation. Your
Directors express their heartfelt gratitude to the employees for their
exceptional commitment and loyalty to the Company.
For AMBICA AGARBATHIES AROMA
AND INDUSTRIES LIMITED
Sd/-
Place : Hyderabad AMBICA KRISHNA
Date : 24.08.2013 Chairman and Managing Director |