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Liberty Shoes Ltd.

BSE: 526596 Sector: Others
NSE: LIBERTSHOE ISIN Code: INE557B01019
BSE LIVE 15:59 | 23 Aug 174.25 1.65
(0.96%)
OPEN

174.25

HIGH

176.00

LOW

172.00

NSE 15:58 | 23 Aug 173.80 0.85
(0.49%)
OPEN

173.95

HIGH

176.10

LOW

173.05

OPEN 174.25
PREVIOUS CLOSE 172.60
VOLUME 19146
52-Week high 216.00
52-Week low 129.15
P/E 59.47
Mkt Cap.(Rs cr) 297
Buy Price 0.00
Buy Qty 0.00
Sell Price 174.25
Sell Qty 17.00
OPEN 174.25
CLOSE 172.60
VOLUME 19146
52-Week high 216.00
52-Week low 129.15
P/E 59.47
Mkt Cap.(Rs cr) 297
Buy Price 0.00
Buy Qty 0.00
Sell Price 174.25
Sell Qty 17.00

Liberty Shoes Ltd. (LIBERTSHOE) - Auditors Report

Company auditors report

To

The Members of Liberty Shoes Ltd.

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Liberty ShoesLimited (“the Company”) which comprises the Balance Sheet as at March 31 2016and the Statement of Profit and Loss and Cash Flow Statement for the year then ended anda 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 Section134(5) of the Companies Act 2013 (the Act) with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken in to account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements.

The procedures selected depend on the Auditor's judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the company's preparation of the financial statements that give a true andfair 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 andthe reasonableness of the accounting estimates made by the Company's Board of Directorsas well as evaluating the overall presentation of the financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat 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 ofthe Act we give in the “Annexure A” a statement on the matters specified inparagraphs 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 bestof 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 theCompany 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 withby this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure B”.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements as referred in Note 2.27.11 to the financialstatements.

ii. The Company didn't have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Pardeep Tayal & Co.
Firm Registration No. 002733N
Chartered Accountants
Pardeep Tayal
Partner
Membership No. 081643
Place: Gurugram Haryana
Dated: Monday 30 May 2016

Annexure -A to Independent Auditors' Report

(Referred to in paragraph 1 under the heading of 'Report on Other Legal and RegulatoryRequirements' of our report of even date)

Reg.: Liberty Shoes Limited (the Company)

1) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) All fixed assets have not been physically verified by the management during the yearbut there exists a regular programme of verification of fixed assets which in ouropinion 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 titledeeds of the immovable properties included in the property plant and equipment/fixedassets are held in the name of the Company.

2) The management has conducted the physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

3) According to information and explanations given to us the Company has not grantedany loans secured or unsecured to Companies firms Limited Liability partnerships orother 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 applicableto the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us thereare no loans investments guarantees and securities granted in respect of whichprovisions of section 185 and 186 of the Companies Act 2013 are applicable and hence notcommented 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 notspecified 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 includingProvident Fund Employees State Insurance Income Tax Sales Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and other material statutory duesapplicable to it with appropriate authorities.

b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income Tax Sales taxService Tax Duty of Customs Duty of Excise Value added Tax Cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

c) According to the records of the Company the dues outstanding of income tax salestax service tax duty of customs duty of excise value added tax and cess on account ofany dispute are as follows:

Nature of Statute Nature of dues Amount (in Rs) Period to which the Forum wherethe amount relates dispute is pending

The Central Excise Act Excise Duty 29975448 November 2004 to June 2005 CustomsExcise and Service 1944 and May 2006 to June 2006 Tax Appellate Tribunal New Delhi

Service Tax Act 1994 Service Tax on 233486 January 2005 to March 2007 CustomsExcise and Service GTA Services Tax Appellate Tribunal Chandigarh

Service Tax Act 1994 Service Tax on 295112 April 2005 to March 2007 Customs Exciseand GTA Services Service Tax Appellate Tribunal Chandigarh

Punjab Value Added Tax Value Added Tax on 1913016 Financial Year 2006-07 DeputyCommissioner 2005 account of classification (Appeals) of goods at different rate of tax

Punjab Value Added Tax Value Added Tax on 2230998 Financial Year 2007-08 DeputyCommissioner 2005 account of classification (Appeals) of goods at different rate of tax

8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.

9) According to the information and explanations given by the management the Companyhas not raised any money by way of initial public offer/ further public offer/ debtinstruments except by way of term Loans from the bank and the same were applied for thepurposes for which it was raised.

10) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year.

11) According to the information and explanations given by the management themanagerial remuneration has been paid/ provided in accordance with the requisite approvalsmandated 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 theCompany and hence not commented upon.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 wherever applicable and the details have beendisclosed in the notes to the Financial Statements as required by the applicableaccounting standards.

14) According to information and explanations given to us and on an overall examinationof the balance sheet the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewand hence reporting requirements under clause 3 (xiv) of the Order are not applicable tothe Company and not commented upon.

15) According to the information and explanations given by the management the Companyhas not entered into any non cash transactions with directors or persons connected withhim.

16) According to the information and explanations given to us the Company is notrequired to be registered under section

45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause3 (xvi) of the Order are not applicable to the Company and hence not commented upon.

For Pardeep Tayal & Co.
Firm Registration No. 002733N
Chartered Accountants
Pardeep Tayal
Partner
Membership No. 081643
Place: Gurugram Haryana
Dated: Monday 30 May 2016

Annexure - B to Independent Auditors' Report

(Referred to in paragraph 2(f) under the heading “Report on other legal andregulatory requirements” of our report of even date on the Standalone FinancialStatements of Liberty Shoes Ltd.)

Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of LibertyShoes Limited (“the Company”) as of March 31 2016 in conjunction with our auditof 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of InternalFinancial Controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Pardeep Tayal & Co.
Firm Registration No. 002733N
Chartered Accountants
Pardeep Tayal
Partner
Membership No. 081643
Place: Gurugram Haryana
Dated: Monday 30 May 2016