Mar 31, 2023
Liberty Shoes Ltd.
Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of Liberty Shoes Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "financial statements".
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit of the financial
statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No. |
Key Audit Matter |
Addressing the Key Audit Matters |
(i) |
Trade Receivables-Outstanding for more than 180 days |
Principal Audit Procedures followed: Our audit procedures based on which we arrived at the conclusion regarding reasonableness of trade receivables outstanding for more than 180 days: ⢠Obtained the detail of parties having outstanding for more than 180 days; ⢠Evaluated the facts, terms & conditions, relevant correspondence, status of legal proceedings wherever initiated and management''s rationale for the recoverability of the outstanding dues; |
(ii) |
Recoverability of Input Tax Credit receivable-under the account head ''Other Current Assets-Note No. 11 As at March 31, 2023, Other Current Assets (Note No. 11) consist of Balance with Statutory Authorities amounting '' 677.84Lakhs including unutilized amount of Input Tax Credit of GST of '' 436.76 Lakhs. |
Principal Audit Procedures followed: We reviewed the nature of the amounts recoverable, the sustainability and the likelihood of recoverability upon final resolution. |
(iii) |
Contingent Liabilities - relating to VAT, Service Tax, Labour, Income Tax and TDS (Note 53 [(IN) to (XVI)] There are certain pending matters relating to VAT for the year financial year 2005-06, 2006-07, 2007-08 & 2008-09 on account of classification of goods at different rate of tax, service tax on GTA services for the period from January 2005 to March 2007, few labour matters pertaining to earlier years and demand on account of nondeduction of tax at source and disallowance of certain business expenditure. These are pending before various judicial forums and consequential and possible impact thereof and provisions/disclosure required have been based on the management''s assessment of the probability of the occurrence of the liability. |
Our audit procedures based on which we arrived at the conclusion regarding reasonableness of the related Contingent Liabilities include the following: ⢠Obtained the status of the cases from the related department and their view on the matter; ⢠Evaluated the facts and terms and conditions and management''s rationale for the adequacy of the provision so far made and the amount remaining unprovided against the demands made against the Company; ⢠Meeting with management and reading/ reviewing the correspondences Memos and Notes on related matters. ⢠Reliance has been placed on the legal views and decisions on similar matters and probability of the liability arising there from pending final judgement/decisions; ⢠Reviewed the appropriateness and adequacy of the disclosure by the management as required in terms of the requirement of IND AS 37 "Provisions, Contingent Liabilities and Contingent Assets". |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not
cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact and we have nothing to report in this regard.
When we read the Director''s report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ''The Auditor''s responsibilities Relating to Other Information'' and we have nothing to report in this regard.
Management''s Responsibility for the Financial
Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation and presentation of these Ind-ASfinancial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standards (Ind-AS) prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing (SAs) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
⢠Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by section 143 (3) of the Act, based on our audit we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid Ind-AS financial statements comply with the Accounting Standards specified under section 133 of the Act.
e) On the basis of written representations received from the directors as on March 31, 2023, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, from being appointed as a director in terms section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be
included in the Auditor''s Report in
accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be
included in the Auditor''s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or
⢠provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
⢠provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(c) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause
(iv) (a) and (iv) (b) contain any material misstatement.
(v.) The Company has declared and paid the Interim Dividend during the year.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in the "Annexure-B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Pardeep Tayal & Co.
Firm Registration No. 02733N Chartered Accountants
Pardeep Tayal
Partner
Place: Gurugram, Haryana Membership No. 081643
Dated:Tuesday, May 30, 2023 UDIN: 23081643BGREEI1412
Mar 31, 2016
The Members of
Liberty Shoes Ltd.
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Liberty Shoes Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial
Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken in to account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and Rules made there under.
We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements.
The procedures selected depend on the Auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Board of Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,
2016, from being appointed as a director in terms section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred in Note 2.27.11 to the financial statements.
ii. The Company didn''t have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
1) a) The Company has maintained proper records showing
full particulars including quantitative details and situation of fixed assets.
b) All fixed assets have not been physically verified by the management during the year but there exists a regular programme of verification of fixed assets 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) According to the information and explanation given by the management, the title deeds of the immovable properties included in the property, plant and equipment/fixed assets are held in the name of the Company.
2) The management has conducted the physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
3) According to information and explanations given to us, the Company has not granted any loans, secured or unsecured to Companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company and hence not commented upon.
4) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities granted in respect of which provisions of section 185 and 186 of the Companies Act, 2013 are applicable and hence not commented upon.
5) The Company has not accepted any deposits from the public.
6) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of Cost Records under sub-section (1) of Section 148 of the Companies Act, 2013, for the products of the Company.
7) a) The Company is regular in depositing the undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with appropriate authorities.
b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
c) According to the records of the Company, the dues outstanding of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax and cess on account of any dispute, are as follows:
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
Nature of Statute |
Nature of dues |
Amount (in Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
The Central Excise Act, 1944 |
Excise Duty |
2,99,75,448 |
November 2004 to June 2005 and May 2006 to June 2006 |
Customs, Excise and Service Tax Appellate Tribunal, New Delhi |
Service Tax Act, 1994 |
Service Tax on GTA Services |
2,33,486 |
January 2005 to March 2007 |
Customs, Excise and Service Tax Appellate Tribunal, Chandigarh |
Service Tax Act, 1994 |
Service Tax on GTA Services |
2,95,112 |
April 2005 to March 2007 |
Customs, Excise and Service Tax Appellate Tribunal, Chandigarh |
Punjab Value Added Tax, 2005 |
Value Added Tax on account of classification of goods at different rate of tax |
19,13,016 |
Financial Year 2006-07 |
Deputy Commissioner (Appeals) |
Punjab Value Added Tax, 2005 |
Value Added Tax on account of classification of goods at different rate of tax |
22,30,998 |
Financial Year 2007-08 |
Deputy Commissioner (Appeals) |
9) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer/ further public offer/ debt instruments except by way of term Loans from the bank and the same were applied for the purposes for which it was raised.
10) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
11) According to the information and explanations given by the management, the managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order are not applicable to the Company and hence not commented upon.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 wherever applicable and the details have been disclosed in the notes to the Financial Statements as required by the applicable accounting standards.
14) According to information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3 (xiv) of the Order are not applicable to the Company and not commented upon.
15) According to the information and explanations given by the management, the Company has not entered into any non cash transactions with directors or persons connected with him.
16) According to the information and explanations given to us, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section 143 of the Companies Act, 2013 ("the Act") We have audited the internal financial controls over financial reporting of Liberty Shoes Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal Financial Controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Pardeep Tayal & Co. Firm Registration No. 002733N Chartered Accountants
Pardeep Tayal
Partner
Membership No. 081643
Place: Gurugram, Haryana Dated: Monday, 30th May, 2016
Mar 31, 2015
We have audited the accompanying financial statements of Liberty Shoes
Ltd. ("the Company"), which comprise the Balance Sheet as at March
31, 2015, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Standalone Financial
Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect to
the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken in to account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the Auditors' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing and opinion on whether the Company has in place
adequate internal financial control system over financial reporting and
the operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Company's Board
of Directors, as well as evaluating the overall presentation of the
financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms sub-section (2) of section 164 of the
Act.
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
2.27.11 to the financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long term contracts;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" 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.
II. a) As explained to us, the physical verification of the inventory
was carried out at reasonable intervals by the Management during the
year.
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 and book records were not material in relation to the
operation of the Company and the same have been properly dealt with in
the books of accounts.
III. The Company has not granted any loan to any Company, firm or
parties listed in the register maintained under section 189 of the Act
and accordingly the provisions of clause 3 (iii) (a) & (b) of the Order
are not applicable to the Company.
IV. In our opinion and according to information and explanations given
to us, there is adequate internal control system 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 neither come
across nor we have been informed of any major weaknesses in the
aforesaid internal control system.
V. 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 73 to 76 or any other relevant provisions of the Act and rules
framed there under.
VI. 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 sub section (1) of section 148 of the
Act and are of the opinion that prima facie the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
VII. a) According to the information and explanations given to us and
on the basis of our examination of records of the Company, amounts
deducted / accrued in the books of accounts in respect of undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Investor Education 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.
According to the information and explanations given to us, no
undisputed amount payable in respect of Provident Fund, Employees'
State Insurance, Investor Education Protection Fund, Income Tax, Sales
Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and
other material statutory dues as at 31st March, 2015 which are
outstanding for a period more than six months from the date they become
payable.
b) As at 31st March, 2015, 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 Statute Nature of dues Amount (in') Period to which the
amount relates
The Central Excise Excise Duty 2,99,75,448 November 2004 to
Act 1944 June 2005
and May 2006 to
June 2006
Service Tax Act, Service Tax on GTA 2,33,486 January 2005
1944 services to March 2007
Service Tax Act, Service Tax on GTA 2,95,112 April 2005
1944 services to March 2007
Punjab Value Added Value Added Tax on 19,13,016 Financial year
Tax 2005 account of 2006-07
classification of
goods at different
rate of tax
Punjab Value Added Value Added Tax on 22,30,998 Financial year
Tax 2005 account of 2007-08
classification of
goods at different
rate of tax
Nature of Statute Forum where the dispute is pending
The Central Excise Act, 1944 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Service Tax Act, 1994 Commissioner Appeals (Delhi - II),
New Delhi
Service Tax Act, 1994 Commissioner Appeals (Delhi - II),
New Delhi
Punjab Value Added Tax, 2005 Deputy Commissioner (Appeals)
Punjab Value Added Tax, 2005 Deputy Commissioner (Appeals)
c) According to information and explanation given
to us, the Company has duly transferred the funds, in accordance to the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made there under, to Investor Education and Protection Fund as and when
due.
VIII. The Company has no accumulated losses as at 31st March, 2015 and
it has not incurred cash losses in the current and immediately
preceding financial year.
IX. In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to a
financial institutions, banks or debenture holders.
X. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from bank or any financial institution.
XI. According to information and explanations given to us, the term
loans have been applied for the purpose for which they were raised.
XII. According to 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
Pardeep Tayal
Partner
Membership No. 081643
Place: New Delhi
Dated: Friday, 29th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Liberty Shoes
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act'''')(which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the Auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements As required by the
Companies (Auditors'' Report] Order, 2003 ("the Order") issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; (which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 in terms of General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs)
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditors'' Report
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" 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 during the
year.
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 and book records were not material in relation to the
operation of the Company and the same have been properly dealt with in
the books of accounts.
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 Act.
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 unsecured 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.4,34,57,930/- and the
year-end balance of loan taken from such party was Rs.1,79,84,029/-.
f) In our opinion, the rate of interest and other terms and condition
on which loan has been taken from the above said Company listed in the
register maintained under section 301 of the Companies Act, 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 information and explanations given
to us, there is adequate internal control system 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 neither come
across nor we have been informed of any major weaknesses 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 have been entered into the register maintained under
section 301 of the Companies Act, 1956.
b) In our opinion and according to 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 provisions of the Act 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 facie 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 explanations given to us and on
the basis of our examination of records of the Company, amounts
deducted / accrued in the books of accounts in respect of undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Investor Education Protection Fund, Income Tax, Sales Tax, 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 Provident Fund,
Employees'' State Insurance, Investor Education Protection Fund, Income
Tax, Sales Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Service Tax,
Cess and other material statutory dues as at 31st March, 2014 which are
outstanding for a period more than six months from the date they become
payable.
c) As at 31st March, 2014, 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 Statute Nature of dues Amount (in Rs.)
The Central
Excise Act, Excise Duty 2,99,75,448
1944
Service Tax Act, 1994 Service Tax on
GTA Services 2,33,486
Service Tax Act, 1994 Service Tax on
GTA Services 2,95,112
Punjab Value Added Tax, Value Added Tax on 19,13,016
2005 account of classi
fication of
goods at different
rate of tax
Punjab Value Added Tax, Value Added Tax on 22,30,998
2005 account of classi
fication of
goods at different
rate of tax
J&K Value Added Tax, Value Added Tax on 31,76,868
2005 account of classi
fication of
goods at different
rate of tax
Income Tax Act, 1961 Non-deduction of 3,11,878
TDS u/s 194H &
Interest
on late deoosit of TDS
Nature of Statute Period to which the Forum where the
amount relates dispute is pending
The Central Excise
Act, 1944 November 2004 to Customs, Excise and
June 2005 and Service Tax Appellate
May 2006 to June 2006 Tribunal, New Delhi
Service Tax Act, 1994 January 2005 to Commissioner Appeals
March 2007 (Delhi - II), New Delhi
Service Tax Act, 1994 April 2005 to Commissioner Appeals
March 2007 (Delhi-II), New Delhi
Punjab Value Added Tax,
2005 Financial Year 2006-07 Deputy Commissioner
(Appeals)
Punjab Value Added Tax,
2005 Financial Year 2007-08 Deputy Commissioner
(Appeals)
J&K Value Added Tax,
2005 Financial Year 2007-08
and Commissioner
2008-09 (Appeals)
Income Tax Act, 1961 Financial Year 2010-11 Commissioner of
Income Tax
(Appeals)-Delhi
X. The Company has no accumulated losses as at 31st March, 2014 and it
has not incurred cash losses in the current and immediately preceding
financial year.
XI. In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to a
financial institutions, banks 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 the subsidiary from bank during the year
are not prejudicial to the interest of the Company.
XVI. According to information and explanations given to us, the term
loans have been applied for the purpose for which they were raised.
XVII. According to 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 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 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
Pardeep Tayal
Partner
Membership No. 081643
Place: Libertypuram, Karnal
Dated: Thursday, 29th May, 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Liberty
Shoes Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with accounting principles generally accepted in India,
including the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the Auditors'' judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditors'' Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
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 during the
year.
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 and book records were not material in relation to the
operation of the Company and the same have been properly dealt with in
the books of accounts.
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 Act.
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.1,60,67,709/- and the year-end
balance of loan taken from such party was Rs.82,27,930/-.
f) In our opinion, the rate of interest and other terms and condition
on which loan has been taken from the above said Company listed in the
register maintained under section 301 of the Companies Act, 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 information and explanations given
to us, there is adequate internal control system 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 neither come
across, nor have been informed of, any major weaknesses 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 have been entered into the register maintained under
section 301 of the Companies Act, 1956.
b) In our opinion and according to 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 provisions 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 facie 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 explanations given to us and
on the basis of our examination of records of the Company, amounts
deducted / accrued in the books of accounts in respect of undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Investor Education Protection Fund, Income Tax, Sales Tax, 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 i payable in respect of Provident Fund, I Employees'' State
Insurance, Investor 1 Education Protection Fund, Income Tax, " Sales
Tax/VAT, Wealth Tax, Custom Duly, Excise Duty, Service Tax, Cess and
other material statutory dues as at 31st March, 2013 A which are
outstanding for a period more than six months from the date they become
payable.
c) As at 31 * March, 2013, 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, Service Tax,
Income Tax and VAT which have not been deposited:
Nature of Statute Nature of dues Amount (in )
The Central Excise Act, 1944 Excise Duty 2,99,75,448
Service Tax Act, 1994 Service Tax on GTA
Services 2,33,486
Service Tax Act, 1994 Service Tax on GTA
Services 2,95,112
Punjab Value Added Tax, 2005 Value Added Tax on 19,13,016
account of classification
of goods ot different
rate of tax
Punjab Value Added Tax, 2005 Value Added Tax on
account of 22,30,998
classification of goods
at different rate of tax
J&K Value Added Tax, 2005 Value Added Tax on 31,76,868
account of classification
of goods at different
rate of tax
Nature of Statute Period to which the Forum where the
amount relates dispute is pending
The Central Act, 1944 November 2004 to Customs, Excise and
June 2005 and Service Tax
Appellate Tribunal,
May 2006 to June 2006 New Delhi
Service Tax Act,1994 January 2005 to Commissioner Appeals
(Delhi - II),
March 2007 New Delhi
Service Tax Act,1994 April 2005 to March
2007 Commissioner Appeals
(Delhi-II), New Delhi
Pnjab Value Added
Tax, 2005 Financial Year
2006-07 Deputy Commissioner
(Appeals)
Punjab Value Added
Tax,2005 Financial Year
2007-08 Deputy Commissioner
(Appeals)
J&K Value Added
Tax,2005 Financial Year
2007-08 and Commissioner
(Appeals)
2008-09
X. The Company has no accumulated losses as at 31st March, 2013 and it
has not incurred cash losses in the current and immediately preceding
financial year.
XI. In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to a
financial institutions, banks 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/sociely. 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 the subsidiary from bank during the year
are not prejudicial to the interest of the Company.
XVI. According to information and explanations given to us, the term
loans have been applied for the purpose for which they were raised.
XVII. According to 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 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 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
Pardeep Tayal
Partner
Membership No. 081643
Place: Libertypuram, Karnal
Dated: Wednesday, 29,th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Liberty Shoes Ltd. as on
31s1 March, 2012, Statement of Profit & Loss 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, Statement of Profit & Loss and Cash Flow
Statement dealt with by the Report are in agreement with the books of
accounts as submitted to us;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss 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 31s1 March, 2012 and taken on record by
the Board of Directors, We report that no director is disqualified as
on 31st March 2012 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 give the information
required by the Companies Act, 1956, in the manner so required and give
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 2012;
ii) In the case of Statement of Profit & Loss, of the profit 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 & 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 & adequate in relation to the
size of the Company & 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 & the same have been properly dealt with in
the books of accounts.
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 Act.
b) The provisions of clause 4 (Hi) (b) of Companies (Auditor's Report)
(Amendment) Order, 2004 are not applicable to the Company.
c) The provisions of clause 4 (Hi) (c) of Companies (Auditor's Report)
(Amendment) Order, 2004 are not applicable to the Company.
d) The provisions of clause 4 (Hi) (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.6,44,00,000/- & the year-end
balance of loan taken from such party was Rs.1,60,67,709/-.
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 Act, 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 & according to information & explanations given to
us, there are adequate internal control procedures commensurate with
the size of the Company & the nature of its business with regard to
purchase of inventory, fixed assets & with regard to sale of goods and
services. During the course of our audit, we have neither come across
nor we have been informed of any major weaknesses in the aforesaid
internal control system.
V. a) According to information & explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 have been entered into the register maintained under
section 301 of the Companies Act, 1956,
b) In our opinion & according to information & 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 provisions of the Act and
rules framed there under.
VII. In our opinion, the Company has an internal audit system
commensurate with the size & 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 facie 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 accounts in respect of undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Investor Education Protection Fund, Income Tax, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Service Tax, Cess & 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 Act AT, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess
& other material statutory dues as at 319 March, 2012 which are
outstanding for a period more than six months from the date they become
payable.
c) As at 31st March, 2012 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 Statute Nature of dues Amount (in Rs.)
The Central Excise Duty 2,99,75,448
Excise Act, 1944
The Central Excise Excise Duty 5,16,406
Act, 1944
The Central Excise Excise Duty 11,15,823
Act, 1944
The Central Excise Excise Duty 15,19,371
Act, 1944
Service Tax Service Tax on 2,33,486
Act, 1994 GTA Services
Service Tax Service Tax on 2,95,112
Act, 1994 GTA Services
Punjab Value Value Added Tax on 19,13,016
Added Tax, 2005 account of
classification of
goods at different
rate of tax
Punjab Value Value Added Tax on 22,30,998
Added Tax, 2005 account of
classification of
goods at different
rate of tax
Nature of Statute Period to which the Forum where
amount relates the dispute is
pending
The Central November 2004 to Customs, Excise
Excise Act,1944 June 2005 and & Service Tax
Appellate
May 2006 to June
2006 Tribunal,
New Delhi
The Central Excise July 2005 to Commissioner
Act,1944 Appeals,
September 2005 Gurgaon
The Central Excise Financial year
Act, 1944 2005 to 2010 Customs, Excise &
Service Tax
Appellate
Tribunal, New Delhi
The Central Excise Financial year Commissioner
Act, 1944 Appeals,
2005 to 2007 Gurgaon
Service Tax January 2005 to Commissioner
Appeals
Act, 1994 March 2007 (Delhi - II),
New Delhi
Service Tax April 2005 to Commissioner
Act,1994 Appeals
March 2007 (Delhi - II),
New Delhi
Punjab Value Financial Year Deputy
Added Tax, 2005 Commissioner
2006-07 (Appeals)
Punjab Value Financial Year Deputy
Added Tax, 2005 Commissioner
2007-08 (Appeals)
X. The Company does not have any accumulated losses as at 31st March
2012. The Company has not incurred any cash losses during the financial
year covered by our audit & in the immediately preceding financial
year.
XI. In our opinion & according to information & explanations given to
us, the Company has not defaulted in repayment of dues to a financial
institutions, bank or debenture holders.
XII. The Company has not granted any loans & advances on the basis of
security, by way of pledge of shares, debentures & 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 & 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 explanation
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by subsidiary from banks during the year are
not prejudicial to the interest of the Company.
XVI. According to information & explanations given to us, Ihe term
loans have been applied lor the purpose for which they were raised.
XVII. According to information & 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 information & explanations given to us, the
Company has not made any preferential allotment of shares to parties &
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 information & 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 Accounlants
Pardeep Tayal
Place: Libertypuram, Karnal Partner
Dated: Tuesday, 28th August, 2012 Membership Number 081643
Mar 31, 2010
We have audited the attached Balance Sheet of Liberty Shoes Ltd. as on
31st March, 2010, 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
Companys 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 (Auditors 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 accounts 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, 2010 and taken on record by
the Board of Directors, We report that no director is disqualified as
on 31st March, 2010 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 give the information
required by the Companies Act, 1956, in the manner so required and give
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 31 st March 2010;
ii) In the case of Profit & Loss Account, of the profit 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 & 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 & adequate in relation to the
size of the Company & 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 & the same have been properly dealt with in
the books of accounts.
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 Act.
b) The provisions of clause 4 (iii) (b) of Companies (Auditors Report)
(Amendment) Order, 2004 are not applicable to the Company.
c) The provisions of clause 4 (iii) (c) of Companies (Auditors Report)
(Amendment) Order, 2004 are not applicable to the Company.
d) The provisions of clause 4 (iii) (d) of Companies (Auditors 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 Pvt. 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 Rs16,44,25,214/- & the year-end balance of
loan taken from such party was Rs10,00,00,000/-.
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 Act, 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 & according to information & explanations given to
us, there are adequate internal control procedures commensurate with
the size of the Company & the nature of its business with regard to
purchase of inventory, fixed assets & with regard to sale of goods and
services. During the course of our audit, we have neither come across
nor we have been informed of any major weaknesses in the aforesaid
internal control system.
V. a) According to information & explanations given to us, we are of
the opinion that the particulars of contracts or
arrangements referred to in section 301 have been entered into the
register maintained under section 301 of the Companies Act, 1956. b)
In our opinion & according to information & 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 provisions of the Act and
rules framed there under.
VII. In our opinion, the Company has an internal audit system
commensurate with the size & 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 facie 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 accounts in respect
of undisputed statutory dues including Provident Fund, Employees State
Insurance, Investor Education Protection Fund, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess & 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
& other material statutory dues as at 31st March, 2010 which are
outstanding for a period more than six months from the date they become
payable.
c) As at 31st March, 2010 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 Statute Nature of dues Amount (in Rs)
The Central Excise Duty 2,99,75,448
Excise Act, 1944
The Central Excise
Act, 1944 Excise Duty 11,95,268
The Central Excise Education Cess 3,86,314
Service Tax on service
The Service Tax received from outside India
Act, 1994 prior to the applicability
of the related law
Income Tax on account
The Income Tax of reduction in amount of
Act,1961 deduction u/s 80 HHC in 11,20,244
terms of Texation Law
Amendment Bill, 2005
Value Added Tax on
Punjab Value Added account of classification 1913 016
Tax, 2005 of goods at different
rate of tax
Value Added Tax on
Punjab Vajje Added account of classiflcation of 22,30,998
Tax,2005 goods at different rate of tax
Nature of Statute Period to which the Forum where
amount relates the dispute is pending
The Central November 2004 to Customs, Excise
Excise Act,1944
June 2005 and May & Service Tax Appellate
2006 to June 2006 Tribunal, New Delhi
The Central Excise Financial Customs, Excise
Act,1944
year2002-03 & Service Tax Appellate
Tribunal, New Delhi
The Central Excise Financial Customs, Excise
Act,1944
year2004-05 & Service Tax Appellate
Tribunal, New Delhi
The Service Tax Financial Year & Service Tax Appellate
Act,1944 2002-2003 Tribunal, New Delhi
Commissioner
The Incom Tax Assessment Year of Incom Tax
Act,1961
2002-2003 (Appeals)
Punjab Value Added Financial Year Deputy Commissioner
Tax, 2005
2006-07 (Appeals)
Punjab Value Added Financial Deputy Commissioner
Tax, 2005
Year 2006-07 (Appeals)
X. The Company does not have any accumulated losses as at 31st March
2010. The Company has not incurred any cash losses during the financial
year covered by our audit & in the immediately preceding financial
year.
XI. In our opinion & according to information & explanations given to
us, the Company has not defaulted in repayment of dues to a financial
institutions, bank or debenture holders.
XII. The Company has not granted any loans & advances on the basis of
security, by way of pledge of shares, debentures & 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 (Auditors 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 & other investments. Therefore, the
provisions of clause 4 (xiv) of the Companies (Auditors Report)
(Amendment) Order, 2004 are not applicable to the Company.
XV. In our opinion and according to the information and explanation
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by subsidiary from banks during the year are
not prejudicial to the interest of the Company.
XVI. According to information & explanations given to us, the term
loans have been applied for the purpose for which they were raised.
XVII. According to information & 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.
XVIILAccording to information & explanations given to us, the Company
has not made any preferential allotment of shares to parties &
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 information & 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
Pardeep Tayal
Place: New Delhi Partner
Date: Thursday, 12th August, 2010 Membership Number 081643
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