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0.35 (0.38%) | Auditor's Report (Liberty Shoes) | Year End : Mar '11 |
We have audited the attached Balance Sheet of Liberty Shoes Ltd. as on
31st March, 2011, Profit & Loss Account for the year ended on that date
and also the Cash Flow Statement for the year ended on that day annexed
thereto. 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free 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.
As required by the Companies (Auditor''s Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section(4A)
of section 227 of the Companies Act, 1956 we enclose in the annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
1. Further to our comments in the annexure referred to above, we report
that:-
a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of
audit:
b) 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;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by the Report are in agreement with the books of account as
submitted to us;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section(3C) of section 211 of the
Companies Act, 1956;
e) On the basis of written representation received by us from the
Directors of the Company as at 31st March, 2011 and taken on record by
the Board of Directors, We report that no director is disqualified as
on 31st March 2011 from being appointed as Director of the Company
under clause (g) of sub section (1) of section 274 of the Companies
Act, 1956;
f) In our opinion and to the best of our information and according to
the explanation given to us, the said Accounts gives the information
required by the Companies Act, 1956, in the manner so required and
gives a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
ii) In the case of Profit& Loss Account, of the Company for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in para 3 of our report of even date)
I. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) During the year there exists a regular programme of verification of
Fixed Assets and which, in our opinion, is reasonable having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such verification.
c) During the year, the Company has not disposed off any major part of
the fixed assets. Thus the going concern status of the Company is not
affected.
II. a) As explained to us, the physical verification of the inventory
was carried out at reasonable intervals by the Management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on verification between the
physical stock & book records were not material in relation to the
operation of the Company and the same have been properly deal with in
the books of account.
III. a) The company has not granted any loan to any Company, firm or
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
b) The provisions of clause 4 (iii) (b) of Companies (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company.
c) The provisions of clause 4 (iii) (c) of Companies (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company.
d) The provisions of clause 4 (iii) (d) of Companies (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company.
e) The Company had taken short term loan from one Company, M/s Geofin
Investments Private Ltd. This Company is listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.10,00,00,000/- and the year-end
balance of loan taken from such party was Rs.4,45,00,000/-.
f) In our opinion, the rate of interest & other terms & condition on
which loan has been taken from the above said Company listed in the
register maintained under section 301 of the Companies Acr, 1956 is
not, prima facie. prejudicial to the interest of the Company.
g) The Company has been regular in repaying the principal amount and
payment of interest as stipulated.
IV. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have either come across nor we have been informed of any major
weakness in the aforesaid internal control system.
V. a) According to information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of Companies Act,1956 have been entered into the
register maintained under section 301 of the Companies Act, 1956.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 during the year have been made at prices which
are reasonable.
VI. The Company has not accepted any deposit from the public as per the
directives issued by Reserve Bank of India and the provisions of Section
58 A, 58 AA or any other relevant provision of the Companies Act, 1956
and rules framed there under.
VII. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima face the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the same.
IX. a) According to the information and explanation given to us and on
the basis of our examination of records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employee''s State Insurance,
Investor Education and Protection Fund, Income Tax, Sales Tax/VAT,
Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities.
b) There are no undisputed amount payable in respect of income Tax,
Sales Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess
and other material statutory dues as at 31st March, 2011 which are
outstanding for a period more than six months from the date they become
payable.
c) As at 31st March, 2011 according to the records of the Company and
the information and explanations given to us. Following are the
particulars of disputed dues on account of Excise Duty, Income Tax and
VAT which have not been deposited:
Nature of
Stalvte Nature of
dues Amount
(in Rs) Period to
which the Forum where
amount the dispute
relates is pending
The Central Excise 2,99,75,448 November 2004 Customer
Duty to June 2005 Excise &
and May-June Service Tax
2006 Appellate
Tribunal,
New Delhi
The Central Education 3,86,314 Financial Customs,
Excise Act, cess Year 2004-05 Excise &
1994 Service Tax
Appellate
Tribunal,
New Delhi
The Service Service Tax 2,33,486 January 2005 Commissioner
Tax Act, 1994 on GTA to March 2007 Appeals
Services (Delhi-II)
New Delhi
Punjab Value Value Added 19,13,016 Financial Year Deputy
Added Tax, Tax on 2006 - 2007 Commissioner
2005 classification (Appeals)
of goods at
different rate
of Tax
Punjab Value Value Added 22,30,998 Financial Year Deputy
Added Tax, Tax on 2007 - 2008 Commissioner
2005 classification (Appeals)
of goods at
different rate
of Tax
X. The Company does not have any accumulated losses as at 31st March
2011. The Company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
XI. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions, bank or debenture holders.
XII. The Company has not granted any loans and advances on the basis of
security, by way of pledge of shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) (Amendment) Order, 2004 are not
applicable to the Company.
XIV. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company.
XV. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by subsidiary company from banks during the
year are not prejudicial to the interest of the Company.
XVI. According to the information and explanations given to us, the
term loans have been applied for the purpose for which the loans were
raised.
XVII. According to the information and explanations 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.
XVIII. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Companies Act, 1956.
XIX. According to the information and explanations given to us, the
Company has not issued any secured debentures during the year.
XX. The Company has not raised any money through public issue during
the year.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Pardeep Tayal & Co.
Firm Registration No. 002733N
Chartered Accountants
Place: Libertypuram, Karnal Pradeep Tayal
Dated: Friday, 12th August, 2011 Partner
Membership Number 081643 |
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