The Members of
 Liberty Phosphate Limited
 
 The Directors of your Company have pleasure in presenting Twenty Third
 Annual Report and the Audited Accounts of your Company for the year
 ended 31.03.2011.
 
 FINANCIAL RESULTS:
 
 Your Company''s performance during the year as compared with that of the
 previous year is summarized below :
 
                                                   (Rs in Lakhs)
 
 Particulars                               2010-11      2009-10
 
 Turnover including Other Income          36765.95     21010.83
 
 Profit before Interest, Depreciation 
 and Tax                                   6420.48      1716.74
 
 Less : Financial Charges                   696.76       477.54
 
 Less : Depreciation                        281.40       227.69
 
 Profit before tax                         5442.31      1011.51
 
 Deferred tax (liability)/Assets              0.59         7.45
 
 Provision for current Taxation            1887.05       368.75
 
 Income Tax of Earlier Years                 37.32         2.59
 
 Profit after tax                          3518.52       647.62
 
 Add: Profit brought forward from 
 previous year                             3208.31      2560.69
 
 Amount available for appropriation        6726.84      3208.31
 
 APPROPRIATION :
 
 Your Directors recommend appropriation as under:
 
                                                 (Rs in Lakhs)
 
                                     2010-2011      2009-2010
 
 Interim Dividend - Equity               86.63            Nil
 
 Arrears of Preference Dividend         120.00            Nil
 
 Proposed Dividend - Preference 
 shares                                  40.00            Nil
 
 - Equity Shares                         86.63            Nil
 
 Dividend Distribution Tax               54.86            Nil
 
 Transfer to General Reserve             87.97            Nil
 
 Surplus Carried Forward               6250.75        3208.31
 
 Total Appropriation                   6726.84        3208.31
 
 DIVIDEND:
 
 Your Directors are pleased to recommend dividend at the rate of Rs.
 0.80 per share on 8% Cumulative Redeemable Preference Share of nominal
 value of Rs. 10/- per share for the year 2010-2011.
 
 During the year 2010-2011, your Company paid interim dividend at the
 rate of Rs. 0.60 per share on equity shares of nominal value of Rs.
 10/- per share on 30.10.2010.
 
 In addition to the above, your Directors are pleased to recommend a
 final dividend at the rate of Rs. 0.60 per share on equity shares of
 nominal value of Rs. 10/- per share for the year 2010-2011.
 
 The payment of the aforesaid dividend is subject to the approvals of
 the members to be obtained at the ensuing Annual General Meeting and
 shall be paid to those members, as per the law, whose name appear in
 the Register of members of the Company as on the book closure date .
 
 The total dividend payout in respect of equity shares for the year
 ended March 31, 2011 including final dividend as recommended stands at
 Rs.1.20 per share (12% on equity shares) of the face value of Rs. 10/-
 per share.
 
 OPERATIONS:
 
 During the year under review your Company recorded a turnover of Rs.
 36765.95 Lakhs and earned a net profit after tax of Rs. 3518.52 Lakhs
 after providing for Income Tax as compared with the corresponding
 figures in the previous year of Rs 21010.83. Lakhs and Rs.647.62 Lakhs
 respectively. The turnover and net profit after tax registered an
 increase of 74.99 % and 443.30 % over the corresponding figures of
 previous year.
 
 The increase in profitability is due to constant endeavour of the
 management with regard to cost control and cost reduction backed by
 higher capacity utilization.
 
 PRODUCTION:
 
 During the year under review, your company achieved production of
 386016 MT of Single Super Phosphate, NPK Mixed Fertilizers and
 Magnesium Sulphate as against production of 357729 MT in the previous
 year recording growth of 7.91 %.
 
 SUBSIDIARY:
 
 In view of the General Circular No.2/2011 No.5/12/2007-CL-III dated 8th
 February, 2011 issued by the Government of India, Ministry of Corporate
 Affairs, the Board of Directors of the Company has given their consent
 by passing a resolution for not attaching the Balance Sheet of its
 wholly owned subsidiary viz; Liberty Pesticides and Fertilizers
 Limited, and accordingly has not attached the Balance Sheet of the
 Subsidiary as required pursuant to section 212 of the Companies Act,
 1956. Any shareholder desirous of obtaining the annual accounts of the
 subsidiary company and the related detailed information may write to
 the company for the same.
 
 The annual accounts of the subsidiary may be inspected by any member at
 the Registered Office of the holding company or at the Registered
 Office of the subsidiary company during working days in the office
 hours.
 
 DIRECTORATE :
 
 In accordance with the Article 110 of the Articles of Association of
 the Company, Mr. Salim Abdul Aziz Sherani and Mr. Shakil Zakaria Memon
 retire by rotation and being eligible have offered themselves for re-
 appointment.
 
 Further, Mr. Ajay Paliwal was appointed as an Additional Director of
 the company with effect from 23.03.2011.  In accordance with section
 260 of the Companies Act, 1956 and the Articles of Association of the
 Company, he ceases to be a director of the Company at the commencement
 of the ensuing Annual General Meeting. Pursuant to section 257 of the
 Companies Act, 1956, the Company has received a notice from a member
 signifying his intention to propose the candidature of Mr. Ajay Paliwal
 as director at the ensuing Annual General Meeting.
 
 Your Directors recommend the above appointment/re-appointment.
 
 LISTING OF SHARES :
 
 The Equity Shares of your Company are listed on Bombay Stock Exchange
 Limited, P. J. Towers, Dalal Street, Mumbai-400 001, and the listing
 fees for the year 2010-11 has been paid.
 
 DEPOSITS:
 
 During the year under review the Company has not invited / received
 deposits from public under Section 58A of the Companies Act, 1956.
 
 CONSOLIDATION OFACCOUNTS:
 
 As required under Clause 32 of the Listing Agreement with the Stock
 Exchange, at which the Equity Shares of the Company are listed and
 traded, the Audited Consolidated Financial Statements form part of the
 Annual Report.
 
 AUDITORS :
 
 M/s. V. Shah & Associates, Chartered Accountants, Vadodara and M/s. K.
 L. Vyas & Co., Chartered Accountants, Udaipur, Joint Statutory Auditors
 of the Company retire and being eligible have offered themselves for
 re-appointment.
 
 Your Directors request you to appoint the auditors and fix their
 remuneration.
 
 COSTAUDITORS :
 
 Pursuant to directions from the Ministry of Corporate Affairs, H. R.
 Kapadia , Cost Accountants have been appointed as Cost Auditors for the
 year 2010-2011.They are required to submit the report to the Central
 Government within 180 days from the end of the accounting year.
 
 AUDITORS'' REPORT:
 
 The Auditors'' observations are self explanatory and hence do not call
 for any further clarification under section 217 of the Companies Act,
 1956.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 Pursuant to the provisions of sub-section (2AA) of Section 217 of the
 Companies Act, 1956, your Directors
 
 confirm:
 
 (i) that in the preparation of the Annual Accounts, the applicable
 Accounting Standards have been followed along with proper explanation
 relating to material departures;
 
 
 (ii) that 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 a true and fair view of the state
 of affairs of the Company at the end of the financial year as on 31st
 March, 2011 and of the profit of the Company for that year;
 
 (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, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities; and 
 
 (iv) that the Directors have prepared the Annual Accounts on going
 concern basis.
 
 CORPORATE GOVERNANCE:
 
 In compliance with the listing agreement with the Stock Exchange, the
 Report on Corporate Governance is enclosed as Annexure A''
 
 MANAGEMENT DISCUSSIONS AND ANALYSIS:
 
 In compliance with the listing agreement with the Stock Exchange, the
 Report on Management Discussions and Analysis is enclosed as Annexure
 ''B''.
 
 PARTICULARS OF EMPLOYEES:
 
 As required by the provisions of Sub Section (2A) of Section 217 of the
 Companies Act, 1956 read with the Companies (Particulars of Employees)
 Rules 1975, as amended, particulars of the employees are set out in the
 Annexure to the Directors'' Report. However, as per provisions of
 Section 219(1 )(b)(iv) of the Companies Act, 1956 the report and the
 accounts are being sent to all the shareholders excluding the aforesaid
 information. Any shareholder interested in obtaining such particulars
 may write to the Company Secretary at the registered office of the
 compan for a copy of the same.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO :
 
 In pursuance to Section 217(1) (e) of the Companies Act.1956 read with
 the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 the relevant information is annexed as Annexure
 ''C
 
 ACKNOWLEDGMENT:
 
 The Directors acknowledge with gratitude the co-operation extended by
 bankers (i.e. Canara Bank, IDBI Bank Limited, Karur Vysya Bank Limited
 & State Bank of Patiala), Railway Authorities, and various Central and
 State Government authorities. The Directors also wish to place on
 record their appreciation to the team of executives, staff and workers
 who have shown devotion and efficiency in performing their jobs.
 
 
 
                          For and on behalf of the Board of Directors
 
                                                  Raoof Razak Dhanani 
                                         Chairman & Managing Director
 
 Place : Mumbai.  
 Date  : 29th July, 2011