Arshiya International - Limited Review for the quarter ended Sep

Arshiya International Ltd has informed that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations:

1. Audited results for the year ended March 31, 2007 included in the said Statement reflect Profit after tax of merged entity for the quarter ended March 31, 2006 under the head Exceptional items (item no. 7) as Rs 52.47 lacs (net of taxes of Rs 32.78 lacs), in the audited financial statements for the said year, Profit of the merged entity for the quarter ended March 31, 2006 is reflected before taxes at Rs 85.25 lacs and tax effect of Rs 32.78 lacs is included in current taxes. Accordingly, Profit / (loss) from ordinary activities before tax and after exceptional items for the year ended March 31, 2007 should have been Rs 676.50 lacs as against Rs 643.72 lacs reflect in the Statement and Provision for current tax should have been Rs 254.75 lacs as against Rs 221.97 lacs reflected in he Statement. This has, however no impact on the Net Profit / (loss) from ordinary activities after tax reflected in the Statement.

2. The Company has disclosed Earnings / (loss) per share before exceptional items in the Statement which is not required as per Clause 41 of the Listing Agreement. Further, the Company had issued bonus equity shares in the proportion of three fully paid equity shares of Rs 10 each for every two fully paid equity shares of Rs 10 each held in November 2006. In terms of Accounting Standard 20 on Earnings par share, upon issue of bonus shares, EPS for the corresponding previous periods should be adjusted taking in effect the number of bonus shares issued. However Earnings (loss) per share before and after exception items for the quarter and half year ended September 30, 2006 are reflected in the Statement without adjusting the effect of the subsequent issue of bonus shares.