A Provision is recognized if, as a result of past event, the Company has a present legal obligation that is reasonbly estimable, and it is probable that an outflow of economic benefits will be required to settle the present obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
A financial instrument is any contract that give rise to a financial asset of one entity and a financial liability or equity of another entity.
Initial Recognition
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit and loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.
Subsequent Measurement
Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved both by collection contractual cash flows on specified dates to cash flows that are solely payments of principal and interest on the amount outstanding and selling financial assets.
Financial assets at fair value through Profit and Loss
Financial assets are measured at fair value through profit and loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs that are directly attributable to the acquisition of financial assets and liabilities at fair value through profit and loss are immediately recognised in statement of profit and loss.
Financial liabilities are classified as measured at amortised cost or Fair Value Through Profit and Loss Account (FVTPL). A financial liability is classified as at FVTPL if it is classified as held for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in statement of profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in statement of profit and loss. Any gain or loss on derecognition is also recognised in statement of profit and loss.
De-recognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition as per Ind AS 109. A financial liability (or a part of a financial liability) is derecognised from the Company's balance sheet when the obligation specified in the contract is discharged or cancelled or expires.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above are considered an integral part of the Company’s cash management.
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.
25.1 During the year the company has not proposed dividends during the year.
25.2 During the year the company has not issued securities for Specified purpose.
25.3 Borrowings taken by the Company from banks and financial institutions are fully utilised for the specific purpose it was taken.
25.4 The Company did not have any assets other than Property, Plant and Equipment, Intangible assets.
25.5 The Title deeds of immovable property(land and building) included in Property, Plant and Equipment held are in the name of the company.
25.6 During the company has not revalued its Property, Plant and Equipment during the year
25.7 During the year the Company has not made any Loans and Advances in the nature of Loans granted
to Promoters, Director's, KMP's and related parties except the parties which are disclosed in related parties transactions.
25.8 No proceedings have been initiated during the year or are pending against the company at March 31, 2023 and March 31,2022 for holding any binami property under Binami transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made there under
25.9 During the year the Company has not declared as wilful defaulter by any bank, financial Institution or other lender.
25.10 There are no charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.
25.11 The Company do not have any Layer of companies
25.12 During the year the company do not have any approved scheme of arrangements
25.13 During the year the Company has not taken any borrowings to directly or indirectly lend or invest in third parties or entities or Ultimate beneficiaries
25.14 During the year the Company has not provided any security or guarantee or the like on behalf of the Ultimate beneficiaries
25.15 During the year the Company is not covered u/s 135 of the Companies Act, 2013.
25.16 During the year the company does not have any Undisclosed Income during the Year.
25.17 During the year the company has not invested in Crypto currency or Virtual currency.
25.18 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
25.19 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
"Claims against the Company not acknowledged as debts:
I) On account of Direct Tax matter - Rs. 1746.50 lakhs
The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process with respect to Direct Tax and Indirect tax matters. No tax expense has been accrued in the financial statements for the tax demand raised. The Management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company's financial position and results of operations.
As per our report of even date. For and on behalf of the board
AMBICA AGARBATHIES AROMA & INDUSTRIES LIMITED
For Ramasamy Koteswara Rao and Co LLP
Chartered Accountants
Firm Regn No.010396S/S200084 Sd/- Sd/-
Veeravenkata Pothu Krishna Rao Perla Alapati Ramachandra Rao Sd/- Chairman and Managing Director Director
(Peri Reddy Talla)
Partner
Membership No-236759 Sd/- Sd/-
Satyavathi Perla Ambica Hanuma
Executive Director Chief Financial Officer
Sd/-
Uma Gayathri
Place: Hyderabad Company Secretary
Date: 28-05-2024