1. We have audited the attached Balance Sheet of Arsis Cosmetics &
Chemicals Limited as at March 31, 2011 and the Profit & Loss Account of
the Company tor the year ended on the date. 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.
2. We conducted our audit in accordance with auditing standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are tree 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 management, as well as evaluating the
overall financial 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
(4 A) of Section 227 of the Companies Act, 1956,
we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of
2. In our Opinion, proper books of Accounts as required by Law have
been kept by the Company so far as appears from our examination of such
3. The Balance Sheet and Profit & Loss Account dealt with by this
reports are in agreement with the books of Accounts;
4. The Balance Sheet and Profit & Loss Account dealt with by this
reports, Comply with the Accounting Standard referred to in Sub
Section, (3C) of Section 211 of the Companies Act, 1956, . %
5. On the basis of written representation received from the Directors
as on 31st March, 2011 and on record by the Board of Directors, we
report that none of its Director is disqualified as on March 31, 2011
from being appointed as director in terms of Clause (g) of Sub Section
(1) of Section 274 of the Companies Act, 1956.
6. In our Opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act, 1956 in the
manner so required, and give a true and fair view
1. Reference is invited to Note No. 15 of Schedule 14 regarding Loans
and Advances of Rs. 49.34 lacs in respect of which Court has passed
decree which is pending for execution, Rs. 20.18 lacs in respect of
which company has filed suit for recovery. We are unable to form an
opinion regarding the realisebility of the said Loans and Advances and
2. On the basis of written representation received from the directors
as on march 31, 2011 and taken on the record by the Board of Director,
We report that none of its Directors are disqualified as on March 31,
2011 from being appointed as Directors in terms of Clause (g) of Sub
section 1 of Section 274 of the Companies Act, 1956.
a) In the case of Balance Sheet, of the state of affairs of Company as
at March 31, 2011 and
b) In the case of Profit & Loss account of the Profit for the year on
ANNEXURE TO THE AUDITOR''S REPORT
(Referred in paragraph (1) of Report of even date)
l. a The Company is maintaining proper r ecords showing full particulars
including quantitative details and situation of Fixed Assets b As
explained to us, the Fixed Assets have been physically verified by the
management during the year and there is regular programmed of
verification which, in our opinion, is reasonable having regard to the
size of company and nature its Assets. No material discrepancies were
noticed during such verification, c In our opinion and according to the
information explanation given to us, a substantial part of Fixed
Assets has not been disposed off by the Company during the year
2 a The management has conducted physical verification of inventories
at reasonable intervals.
b In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stock followed
by the management are reasonable and adequate in relation to size of
company and nature of Business c On the basis of our Examination of the
record of inventories, we are of the opinion that the Company is
maintaining proper records of inventories. The discrepancies noticed on
the physical verification of inventories as compared to books records
were not material and have been properly dealt with in the books of
3. a The Company has not granted any Loans, secured or unsecured, to
the companies, forms or other parties covered in register maintained
under section 301 of the Companies Act, 1956.
b The Company has not taken any Loan whether secured or unsecured from
Companies, forms or other parties covered in register maintained under
section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and nature of Business, for the purpose of
inventory Fixed Assets and for the sale of goods. During the course of
our Audit no major weaknesses has noticed in the internal control.
5. a According to the information and emplane talons given to us, we
are of the opinion that the transactions that need to be entered into
the register 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 transitions made in pursuance of the
contracts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956 and exceeding the value of five
lakh rupees in respect of any party during the year have been reasonable
having regard to the prevailing market prices at the relevant time.
6 The company has not accepted any deposits from the public and hence
the provisions of section 58A of the Companies Act 1956, and the Riles
framed there under are not applicable.
7 In our opinion, the company has an internal audit system commensurate
with its size and nature of the business.
8 As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under section 209(1) (d) of the
Companies Act 1956, in respect of the activities carried on by the
9 a According to the information and explain action given to us and
according to the books and records as produced and examined by us, in
our opinion, the company is regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues as
applicable with the appropriate authorities.
b According to the records of the company, there are no dues of sales
Tax, Income Tax, Customs Duty, Wealth Tax or Cess which ha s not been
deposited on account of any dispute .
10. The company has been registered for a period not less than five
year and its accumulated losses at the end of the financial year are
less than fifty percent of its net worth and it has preceding such
financial year also.
12. According to the information and explanation given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. Therefore
the provision of Clause 4(XIV) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the companies.
13. In our opinion, the Company is not a Chit Fund or a Mutual Benefit
Fund/ Society. Therefore, the provisions of Clause 4 (XIV) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
14. In our opinion, the company is not dealing in or trading in
securities, debentures or other investments. Accordingly, the
provisions of Clause 4(XIV) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
15. According to the information and explanation given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. In our opinion and according to the information and explanation
given to us, the company has not availed any term loan. Therefore the
provisions of Clause 4(XIV) of the companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
17. According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short term basis have been used for long term
investment. No long term fund has been used to finance short term
assets except permanent working capital. .
18. According to the information and explanation given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
companies Act, 1956.
19. The Company has not issued any debentures during the year
20. During the year, the company has not raised any money by way of
public issue; paragraph 4(XX) of the Order is not applicable.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our audit
for the year ended 31st March 2011
For, N. S. SHAH & ASSOCIATES
NARESH S. SHAH
Place:: Ahmedabad Proprietor
Date:: 12th August,2011. Membership # 042658