| Report on the Financial Statements
We have audited the accompanying financial statements of Liberty
Phosphate 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 ended on above date, 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
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.
Auditor's 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 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 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, 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
1. As required by the Companies (Auditor's 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.
2. 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
sub-section (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;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN CLAUSE 1 OF REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF
LIBERTY PHOSPHATE LIMITED ON THE ACCOUNTS AS AT AND FOR THE YEAR ENDED
31ST MARCH, 2013.
(i) (a) The company has maintained proper records showing full
particulars including quantitative
details and situation of fixed assets.
(b) We are informed that the fixed assets of the company have been
physically verified by the Management according to a phased programme
designed to cover all the items over a period of three years, which in
our opinion, is reasonable having regard to the size of the company and
nature of its assets. Pursuant to the programme, physical verification
was carried out during the year and no material discrepancies were
noticed.
(c) During the year, the company has not disposed off a major part of
the plant and machinery, which has affected the going concern status of
the Company.
(ii) (a) We are informed that the inventories of the Company have been
physically verified by the
Management during the year. In respect of inventories lying with third
parties, these have been confirmed by them.
(b) In our opinion, the procedures for physical verification of
inventories followed by Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of the Company, we
are of the opinion that the company is maintaining proper records of
inventories. The discrepancies noticed on verification between the
physical and book records were not material.
(iii) (a) The company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) The Company has taken interest free unsecured loan from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956 amounting to Rs. 126.93 Lacs (Previous
Year - Rs. 321.57 Lacs) and balance due at the year end is amounting to
126.93 Lacs (Previous Year - Rs. 321.57 Lacs).
(c) (i)We are further to inform that the unsecured loan taken from the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 are not prima- facie
prejudicial to the interest of the company as the same were interest
free and was stated to be on long term basis, and accordingly there was
no stipulation as to the payment of principal and interest thereon
during the intervening period of currency of the Unsecured Loans.
(ii) Since the company has not granted any loan to any company, firm or
other parties covered under the register maintained under section 301
of the companies Act, 1956, therefore the provision of clause - 4 (iii)
of the Companies (Auditor's Report) Order,2003 are not applicable to
the company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of' the opinion that
the particulars of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956 have been so entered in the register
required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
except deposits exempt under The Companies (Acceptance of Deposits)
Rules, 1975 during the year under review. As such, the provisions of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public are not attracted.
(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 relating to
materials, labour and other items of cost 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 we 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 records with a view to
determine whether they are accurate & complete.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education protection fund, employees' state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, service
tax & Cess and other material statutory dues as may be applicable to
it.
(b) According to the information and explanations given to us, there
are no undisputed amount payable in respect of Income Tax, Sales Tax,
Custom Duty, Excise Duty, Service Tax & Cess, which were in arrears, as
at 31st March, 2013 for a period of more than six months from the date,
same are became payable.
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year. (xi) Based on our audit
procedures and according to the information and explanations given to
us, we are of the opinion that the Company has not defaulted in
repayment of dues to financial institutions, banks and debenture
holders.
(xii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company 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
(xiii) of paragraph 4 of the Companies (Auditor's Report) Order, 2003
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. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) According to information and explanations given to us, company has
not given any guarantee for loans taken by others from the banks or
financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made any Preferential Allotment Shares to the parties
covered in the Register maintained u/s 301 of the Companies Act.
(xix) We are to inform that the no debentures have been issued by the
company during the year under review.
(xx) The Company has not raised any money by way of public issue during
the year under review.
(xxi) In our opinion and according to the information and explanations
given to us, no material fraud on or by the company has been noticed or
reported during the year.
For K.L. Vyas & Company, For V. Shah & Associates,
Chartered Accountants Chartered Accountants
FRN: 003289C FRN: 109816W
Place of signature :Mumbai. Date : 17th April, 2013
(K.L. Vyas) (V.R.Shah)
Partner Proprietor
M. No. 72043 M. No. 34994 |