LIBERAL FINLEASE LIMITED
ANNUAL REPORT 2002-2003
1. We have audited the attached Balance Sheet of LIBERAL FINLEASE LIMITED
as at 31st March, 2003 and also the Loss Account for the year ended an that
date and the notes to the Accounts 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
2. We conducted our audit in accordance with auditing standards generally
accepted in India, These Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material of material misstatement. An audit includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for our
3 a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for our audit. In our
opinion, proper books of account have been kept as required by law, so far
as appears from our opinion, proper examination of these books and the
above mentioned accounts are in agreement there with. In our opinion the
Balance Sheet and Profit and Loss account comply with the Accounting
standards referred to in section 211 (3C) of the Companies Act, 1956 to the
extent applicable and mandatory in nature.
b) On the basis of information and according to the explanations given to
us, we report that none of the directors is disqualified as on 31st March,
2003 from being appointed as director in terms of clause (g) of sub-section
(1) of section 274 of the companies Act, 1956.
c) In our opinion and to the best our information and according to the
explanations given to us, the said accounts read with the notes thereon,
give the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view;
i) In the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2003 and
ii) In the case of the Profit and Loss account, of the loss of the Company
for the year ended on that date;
4) As required by the Manufacturing and other Companies (Auditors Report)
Order 1988 dated 7th September, 1988 issued by the Central Government and
on the basis of such checks as we considered appropriate and according to
the informations given to us, we further report that;
4.01 (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The
management has physically verified the assets at regular intervals. No
material discrepancies were noticed.
b) The Company has not revalued any Fixed Assets during the year.
4.02. The company holds stock in the form of real estate and equity shares.
The company has physically verified the stock of real estate and shares and
confirms that the same are in the possession of the company. The valuation
of closing stock is fair and proper and in accordance with generally
accepted accounting principles. No material discrepancies were noticed on
physical verification of stock as compared to book records.
4.03. The Company has not taken any secured or unsecured loan from
companies, Firms or other parties listed in the Register maintained under
Section 301 of the Companies Act, 1956 and/or from the Companies under the
same Management as defined under Sub-Section(1-B) of Section 370 of the
Companies Act, 1956.
4.04. The Company has not granted any loans to companies listed in the
register maintained under Section 301 of the Companies Act, 1956 or to
Companies under the same management as defined under sun Section (1-B) of
Section 370 of the Companies Act, 1956.
4.05. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its business
for purchase of investments, fixed assets, real estate and for shares
purchased for trading purposes.
4.06. The Company has advanced loans, the principal amount and interest in
respect of which are not being repaid as stipulated. The company has taken
reasonable steps to effect recovery of principal and interest.
4.07. The company has not accepted any deposits from the public.
4.08. The company has an internal audit system commensurate with the size
and nature of its business activities.
4.09. The company has not purchased or sold any goods or materials
exceeding Rs. 50000/- in pursuance of contract or arrangement in the
register maintained u/s 301 of the Companies Act, 1956.
4.10. The provident Fund Act and the Employees State Insurance Act do not
apply to the company.
4.11. At the last day of the financial year there was no amounts
outstanding in respect of undisputed income-tax, wealth-tax, sales-tax,
customs duty which were due for more than six months from the date they
4.12. During the course of our examination of the books of account carried
out in accordance with the generally accepted auditing practices we have
not come across any personal expenses which have been charged to Profit and
4.13. The Sick Industrial Company (Special Provisions) Act, 1985 does not
apply to the company.
4.14. No secured loans are outstanding at the year end.
4.15. The Company has not undertaken a Chit Fund, Nidhi business or the
business of a Mutual Benefit Society.
4.16. The Company has maintained proper records of transactions and
contracts of shares, debentures and other investments traded in or dealt
with by the Company. The investments are held in the name of the company.
4.17. The Central Government has not prescribed the maintenance of cost
records by the company under section 209(1)(d) of the Companies Act, 1956.
For Mehra & Sistani
Place : New Delhi (B.S. Sistani)
Date : 30.06.2003 Partner