Directors Report of Ambica Agarbathies & Aroma Industries Ltd.

Mar 31, 2024

Your Directors have pleasure in presenting herewith the 29^th Annual Report of Company together with the Audited Accounts for the financial year ended 31^st March, 2024.

1. FINANCIAL RESULT (Amounts in Lakhs)

PARTICULARS	31.03.2024	31.03.2023
Revenue from operations	9784.65	11723.61
Other Income	534.98	535.93
Total Income	10319.63	12259.54
Expenses	10545.48	11954.21
Net profit before tax	-225.85	305.33
Deffered Tax	140.37	52.52
Profit after tax	-366.22	252.81

2. STATE OF COMPANY''S AFFAIR:

During the financial year under review the overall performance of the Company was not that good and the overall turnover of the Company was Rs. 10319.63 Lakhs as compare to Rs. 12259.54 Lakhs Previous year and the Net Profit Rs. -366.22 Lakhs as compared to Rs. 252.81 Lakhs in previous year.

3. TRANSFER TO RESERVES

The Board of Directors of the Company has not recommended for transfer of any amount to the General Reserve for the Financial Year ended March 31,2024.

4. DIVIDEND:

Your Directors do not recommend any Dividend for the Financial Year 2023-24 as the profits are planned to be ploughed back into the business operations.

5. SUBSIDIARIES:

During the year Company did not have any Holding, subsidiary or joint venture or associate company.

6. FIXED DEPOSITS:

The Company has neither accepted nor renewed any deposits falling within the provisions of Section 73 and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 from its member and public during the Financial Year.

7 CHANGE IN THE NATURE OF THE BUSINESS

During the Financial year under Review there is no change in the nature of the Business

8. MEETINGS

During the year under review, 5 (Five) board meetings were held on,

29.05.2023

08.07.2023

12.08.2023

11.11.2023

14.02.2024

The maximum time-gap between any two consecutive meetings was within the period prescribed under the Companies Act, 2013.

9. BOARD EVALUATION

The Board of Directors evaluated the annual performance of the Board as a whole, its committee''s and the directors individually in accordance with the provisions of the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 in the following manner

i. Structured evaluation forms, as recommended by the Nomination and Remuneration Committee, after taking into consideration inputs received from the Directors, covering various aspects of the Board''s functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance, for evaluation of the performance of the Board, its Committee''s and each director were circulated to all the members of the Board along with the Agenda Papers.

ii. The members of the Board were requested to evaluate by filling the evaluation forms and the duly filled in evaluation forms were required to be sent to the Company Secretary in a sealed envelope or personally submitted to the Chairman at the concerned meeting.

iii. Based on the individual evaluation of the Directors, the Board initiated a detailed discussion at the concerned meeting on the performance of the Board / Committee/lndividual Director and formulated a final collective evaluation of the Board. The Board also provided individual feedback to the concerned director on areas of improvement, if any.

A separate meeting of Independent Directors was held on 14th February 2024 to evaluate the performance evaluation of the Chairman, the Non-Independent Directors, the Board and flow of information from management.

10. DIRECTORS:

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Veera Venkata Pothu Krishna Rao Perla, retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.

The Company has received necessary declarations from all the Independent Directors under Section 149 (7) of the Companies Act, 2013 that they meet the criteria of independence laid down in Section 149 (6) and in SEBI (LODR) Regulations, 2015

11. DIRECTORS'' RESPONSIBILITY STATEMENT:

Pursuant to the requirement of Section 134(3) (c) of the Companies Act, 2013, and subject to disclosures in the Annual Accounts, as also on the basis of the discussion with the Statutory Auditors of the Company from time to time, and to the best of their knowledge and information furnished, the Board of Directors states:

( i) That in preparation of the Annual Accounts for the year ended 31st March, 2024, all the applicable Accounting Standards Prescribed by the Institute of Chartered Accountants of India have been followed along with proper explanation relating to material departures, if any.

(ii) That the Directors have adopted such accounting policies, as selected in consultation with Statutory Auditors, and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the financial year ended 31st March, 2024.

(iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) That the Annual Accounts for the year ended 31st March, 2024, has been prepared on a going concern

basis.

(v) Those proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.

(vi) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively

12. STATUTORY AUDITORS

The Shareholders at their meeting held on 27th June, 2018 approved the appointment of M/s. Ramasamy Koteswara Rao & Co LLP, Chartered Accountants, Hyderabad, as the Statutory Auditors of your Company to hold office for a period of 5 years. The Board of Directors based on the recommendation of Audit Committee considered the re-appointment of M/s. Ramasamy Koteswara Rao & Co LLP, Chartered Accountants, Hyderabad (Registration No.010396S/S200084) as Statutory Auditors of your Company from the conclusion of 28th Annual General Meeting till the conclusion of 33rd Annual General Meeting, subject to approval of members at the ensuing Annual General Meeting. Accordingly, a resolution seeking the re-appointment of M/s. Ramasamy Koteswara Rao & Co LLP, Chartered Accountants, as the Statutory Auditors of your Company is included in the notice convening the Annual General Meeting for approval of the shareholders.

The Statutory Auditors were present in the last AGM.

13. INTERNALAUDITORS:

The Board of Directors based on the recommendation of the Audit Committee has reappointed KRNA & Associates, Chartered Accountants, as the Internal Auditors on your Company. The Internal Auditors are submitting their Reports on quarterly basis pursuant to the provisions of section 138 and rule 13 of companies (Accounts) rules, 2014.

14. COST RECORDS AND COST AUDIT:

Maintenance of Cost records and requirement of Cost audit as prescribed under the provisions of Section 148(1) of the Act are not applicable for the business activities carried out by the Company.

15 FRAUD REPORTING

During the Financial Year under review the Statutory Auditors of the Company have not reported any incident of fraud to the Board of Directors of the Company

16. VIGIL MECHANISM / WHISTLE BLOWER POLICY

Pursuant to the provisions of section 177 (9) and read with all other applicable provisions of the Companies Act, 2013 and the Companies (meetings of board and its powers) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force) and Regulation 22 Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company has a Whistle Blower Policy framed to deal with instance of fraud and mismanagement, if any in the Group. The details of the Policy are explained in the Corporate Governance Report and also posted on the website of the Company and the web link is http://www.ambicaagarbathi.com.

17. RISK MANAGEMENT

Pursuant to the provisions of section 134 (3) (n) and read with all other applicable provisions of the Companies Act, 2013 and the Companies (Accounts) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force) and as per SEBI (LODR) Regulations, 2015 the Risk management is Not applicable to the Company.

18. REMUNERATION POLICY

The Board of Directors, on recommendation of the Nomination and Remuneration Committee framed a Nomination and Remuneration policy for selection, appointment and remuneration of Directors, KMP and Senior Management and matters covered u/s 178(3) of the Companies Act 2013. The details of the same are provided in the Corporate Governance Report and website of the company.

19. MANAGEMENT DISCUSSION AND ANALYSIS:

Aspects of Management Discussion and Analysis are enclosed as “Annexure -1”to this report.

20. CORPORATE GOVERNANCE:

Report on Corporate Governance including Auditor''s Certificate on Compliance with Regulations 17 to 27 and clauses (b) to (i) of sub-regulation 2 of Regulation 46 and Para C, D & E of Schedule V of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 in the following manner is enclosed as "Annexure - II" to this report

21. SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules framed there under, the Board of Directors, on recommendation of the Audit Committee, appointed M/s P S Rao and Associates, Practicing Company Secretaries to undertake the secretarial audit of the Company. The secretarial audit report issued by M/s P S Rao and Associates, Practicing Company Secretaries for the financial year ending 31st March, 2024 is given in the FORM NO: MR - 3 is herewith annexed as "Annexure (IN)” attached hereto and forms part of this Report. There are no qualifications, reservations or adverse remarks made by the secretarial auditor and the observation made is self explanatory and requires no further explanation from the Board.

22. RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. All related party transactions are placed before the Audit Committee as also the Board for approval. Prior omnibus approval of the Audit Committee is obtained as per Regulation 23 SEBI (Listing Obligations & Disclosure Requirements) 2015 for the transactions which are of a foreseen and repetitive nature. The Company has developed a Policy on Related Party Transactions for the purpose of identification and monitoring of such transactions.

The particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 in Form AOC-2 is herewith annexed as "Annexure IV” to this report.

23. ANNUAL RETURN

In accordance with Section 134(3)(a) of the Companies Act, 2013, a copy of Annual Return in the prescribed format i.e., Form MGT-7 is placed on the website of the Company and be accessed at the link www.ambicaagarbathi.com

24. PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 (12) read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, in respect of employees of the Company is herewith annexed as “Annexure V".

In terms of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company does not have any employee who is employed throughout the financial year and in receipt of remuneration of'' Rs 1,02,50,000 per annum, or employees who are employed for part of the year and in receipt of '' Rs 8,50,000 per month.

25. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company has not provided any loan to any person or body corporate or given any guarantee or provided security in connection with such loan or made any investment in the securities of any body corporate pursuant to Section 186 of the Companies Act, 2013. The Company has given advance against salary to some employees in terms of the applicable policies of the Company.

26. CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of section 135 (1) and read with all other applicable provisions of the Companies Act, 2013 and the Companies (Corporate social responsibility policy) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force). Not Applicable to the Company.

27. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.

28. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of the report.

29. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information on conservation of energy, technology absorption and foreign exchange earnings and Outgo stipulated under Section 134(3) (m) of the Companies Act, 2013 read with Rule, 8 of The Companies (Accounts) Rules, 2014

A. Conservation of Energy: The present operation of the Company does 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)

	2023-24	2022-23
Foreign Exchange earnings	Nil	Nil
Foreign Exchange outgo	Nil	Nil

30. POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORK PLACE:

Your Company strongly supports the rights of all its employees to work in an environment, free from all forms of harassment. The Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace as per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder. The policy aims to provide protection to employees at the workplace and prevent and redress complaints of sexual harassment and for matters connected or incidental thereto, with the objective of providing a safe working environment, where employees

feel secure. The Company has also constituted an Internal Committee, known as Anti Sexual Harassment Committee to address the concerns and complaints of sexual harassment and to recommend appropriate action.

The Company has not received any complaint on sexual harassment during the year.

31. DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR:

No application was made or any proceedings pending under the IBC, 2016 during the year ended on 31st March, 2024.

32. DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE-TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF:

Not Applicable

33. COMPLIANCE WITH SECRETARIAL STANDARDS

During the year under review, the company has complied with the Secretarial Standards issued by the Institute of Company Secretaries of India (lOSI) on Board Meetings SS-I), General Meetings (SS-II).

34. 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 and on behalf of the Board AMBICA AGARBATHIES AROMA & INDUSTRIES LIMITED

Sd/- Sd/-

AMBICA KRISHNA AMBICA RAMACHANDRA RAO

Chairman and Managing Director Wholetime Director

DIN: 00391898 DIN: 01678538

Place: Eluru Date: 28.08.2024

---

Mar 31, 2013

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

---

Mar 31, 2012

To The Members,

The Directors have pleasure in presenting herewith the 17th Annual Report of Company together with the Audited Accounts for the financial year ended 31st March, 2012

FINANCIAL RESULTS: (Rs.in lakhs)

YEAR ENDED YEAR ENDED PARTICULARS 31.03.2012 31.03.2011

Sales 8542.38 7189.97

Other Income 114.99 179.66

Stocks 26.95 2.21

Expenditure (8165.22) (6850.75)

Profit before depreciation and Income tax 519.10 521.09

Depreciation (267.41) (278.27)

Net profit before tax 251.69 242.82

Provision for taxation

a. Current tax 73.29 83.94

b. Deferred tax (9.92) 18.88

Profit after tax 188.31 139.99

Brought forward from previous year 868.90 728.93

Balance carried to balance sheet 1057.23 868.92

OVERALL PERFORMANCE OF THE COMPANY:

During the financial year under review the overall performance of the Company was satisfactory in spite of the economy slow down, inflation and many factors during the financial year under review the overall turnover of the Company was Rs 8542.38 Lakhs as compare to Rs 7189.97 Lakhs and the Net profit Rs 188.31 Lakhs as compare to Rs 139.99 Lakhs

When it comes to Segment wise performance of the Company the Turnover of the Agarbathies Division was Rs 7201.60 Lakhs as Compare to Rs 6101.99 Lakhs and the Net Profit was Rs 54.42 Lakhs as compared to Rs127.25 Lakhs. The Turnover of hotel division was Rs 1455.77 Lakhs as compared to Rs 1267.30 Lakhs and Net profit was Rs 197.27 Lakhs as compare to Rs 115.58 and in Construction Division many projects are in finishing stages and it has good future in coming years.

DIVIDEND

Your Directors do not recommend any Dividend for the Financial Year 2011-2012 as the profits 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, 1975.

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:

During the financial year under review Sri Ambica Sudarsan and Sri Suresh Garlapati Directors of the Company has express their un- willingness to be reappointed at the 17th Annual General meeting.

Sri Ambica Ramachandra Rao and Sri P Kishore thandava Directors 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 confirm that:

i. In preparation of annual accounts for the financial year ended 31st March, 2012 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 financial year ended 31st March 2012 and of the profit and loss of the Company for that period;

iii. The directors have taken proper and sufficient 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 confirmation from the Statutory Auditor that 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 specified in Section 224 (1B) of the Companies Act, 1956.

Reply to Auditors Qualification

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 the Company is under the process of depositing the same.

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)

2011-12 2010-11

Foreign Exchange earnings 15.21 Nil

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 Certificate 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 and on behalf of the Board

Sd/-

AMBICA KRISHNA

Chairman and Managing Director

Place : Hyderabad

Date : 17.08.2012

---

Mar 31, 2010

The Directors have pleasure in presenting herewith the 15th Annual Report of Company together with the Audited Accounts for the fnancial year ended 31st March, 2010

FINANCIAL RESULTS: (Rs.in lakhs)

YEAR ENDED YEAR ENDED

PARTICUlARS 31.03.2010 31.03.2009

Sales 6382.22 6347.32

Other Income 193.55 174.20

Accretion/(Decretion) (0.57) 1.59

Expenditure (6087.47) (6064.36) Proft before depreciation

and Income tax 487.73 458.75

Depreciation (293.43) (277.23)

Net proft before tax 194.30 181.34 Provision for taxation

a. Current tax 73.69 56.10

b. Deferred tax (12.60) (42.39)

c. Fringe Beneft Tax - 11.32 Proft after tax 133.26 156.50 Brought forward from previous year 826.96 670.46 Balance carried to balance sheet 960.22 826.96

DIVIDEND

Your Directors do not recommend any Dividend forthe Financial Year 2009-2010 as the profts are planned to be ploughed back into the business operations.

OVERALL PERFORMANCE OF THE COMPANY:

During the year under review the performance of your Company has been satisfactory

The following are the particulars of each division:

a) AGARBATHIES DIvISION:

The performance of the Company during the fnancial year under review is satisfactory in spite of the slow recovery of the economic of the Country. The Research and Development of yourAgarbathies division is continuously harping on introducing new products into the market. Most of the Existing brands of your Company continue to increase there share in the market and are penetrating in the new markets. Efforts will be on to introduce new products and improve market share of your Companys brands.

b) HOTEL DIVISION:

The Recession of the Hotel industries is continued in the Country from last year. During the fnancial year under review, with recession world over tourism, demand for hotels slowed down, there was a sharp upsurge in the average room rates and occupancies throughout the year. The hospitality market at Chennai has shown signifcant growth over the past few years.

c) CONSTRUCTIONS BUSINESS:

The performance of the company is progressing satisfactorily. The future outlook of the construction division continues to be bright and challenging. Currently most of the projects undertaken by the Company are under the final stages, Company is continuously putting efforts in bagging new infrastructure projects.

DIRECTORS:

During the Financial year under review Sri Ambica Krishna, Sri Ambica Sudarsan and Sri Ambica Ramchandra Rao were Re- appointed w.e.f 1st April, 2010 for a period of 5 years as

Sri Ambica Krishna : Chairman & Managing

Director Sri Ambica Sudarsan : Director Operational

Sri Ambica Ramchandra Rao : Director Works

Sri P Kishore Thandava and Sri Ambica Ramchandra Rao Directors of the Company retires at the ensuing annual general meeting and being eligible offer themselves for re- appointment.

PERSONNEL:

None of the Employees of the Company is drawing remuneration exceeding limits prescribed U/s 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975.

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 financial year ended 31st March, 2010 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 2010 and of the proft and loss of the Company for that period;

iii. The directors have taken proper and sufficient 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.

MANAGEMENT DISCUSSION AND ANALYSIS:

Aspects of Management Discussion and Analysis are enclosed as Annexure - I to this report.

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 – The Research and Development division of Agarbathies department continues to focus on introducing of new brands.

C. Technology Absorption - Not Applicable

CORPORATE GOVERNANCE:

Report on Corporate Governance including Auditors Certifcate on Compliance with the code of Corporate Governance under Clause 49 of the listing agreement is enclosed as Annexure - II to this report.

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 Auditor that 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 Qualification

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 the Company is under the process of depositing the same.

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.

SUBSIDIARY COMPANY

M/s Ambica Infra Ventures Private Limited, Subsidiary of the Company having its registered offce at Hyderabad is yet to start its Commercial Productions.

A Statement pursuant to section 212 of the Companies Act, 1956. Along with the balance sheet and proft & Loss account of our subsidiary are attached to the annual report.

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.

CONVERSION OF SHARE WARRANT INTO EQUITY SHARES

As your aware that the Company in the Board Meeting held 31st July, 2008 has issued 28,00,000 Convertible Share Warrants on preferential basis, of Rs. 10/- each at a Premium of Rs. 8/- per Share for cash convertible into 28,00,000 Equity Shares of the Company .

During the Financial Year under review the Company has received the full payment against the Convertible Share warrants and in the board meeting held on 21st December, 2009 has converted Convertible Share Warrants into Equivalent number of Equity Shares and has received Final Approval from Bombay Stock Exchange Limited and National Stock Exchange of India Limited

ACKNOWLEDGEMENT:

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 and on behalf of the Board

Sd/-

AMBICA KRISHNA

Chairman and Managing Director

Place : Hyderabad Date : 27-08-2010