Exotic Coal Ltd Share Price Auditors Report
ARSI COSMETICS AND CHEMICALS LIMITED
ANNUAL REPORT 2010-2011
AUDITORS REPORT
To
The Shareholders of
Arsi Cosmetics & Chemicals Limited:
1. We have audited the attached Balance Sheet of Arsi Cosmetics & Chemicals
Limited as at March 31, 2011 and the Profit & Loss Account of the Company
for the year ended on the date. These financial statements are the
responsibility of the Companys 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 (Auditors 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 such books;
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 books;
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 Subject to:
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 Sundry Debtors.
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 the
date.
For, N.S. SHAH & ASSOCIATES
Chartered Accountants
NARESH S. SHAH
Place: Ahmedabad Proprietor
Date : 12th August, 2011. Membership # 042658
ANNEXURE TO THE AUDITORS REPORT (Referred in paragraph (1) of Report of
even date)
1.a The Company is maintaining proper records 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 accounts.
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 explanations 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 company.
9.a. According to the information and explanation 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 has 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 (Auditors 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
(Auditors Report) Order, 2003 are not applicable to the Company.
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 (Auditors 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 (Auditors 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
Chartered Accountants
NARESH S. SHAH
Place: Ahmedabad Proprietor
Date : 12th August, 2011. Membership # 042658