TO THE MEMBERS OF
STANDARD SHOE SOLE AND MOULD (INDIA) LIMITED
Report on the Audit of the Financial Statements
Opinion
1. We have audited the accompanying financial statements of Standard Shoe Sole and
Mould (India) Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Cash Flows, the Statement of Changes in Equity and
notes to the financial statements for the year then ended on that date including a summary
of significant accounting policies and other explanatory information (herein after
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 accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, its loss (including Other
Comprehensive Income), Changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors 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 together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
3. 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 that there are no key audit matters to communicate in our report.
Other Information
4. The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Boards Report including Annexures
to Board Report and Shareholders Information but does not include the financial
statements and our auditors report thereon. The aforesaid documents are expected to be
made available to us after the date of this auditors report.
5. Our opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
6. In connection with our audit of the financial statements, our responsibility is to
read the other information when it becomes available and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
7. When we read the aforesaid documents, if we conclude that there is a material
misstatement therein, we are required to communicate the matters to those charged with
governance
Managements Responsibility for the Financial Statements
8. The Companys 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 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
principles generally accepted in India, including the accounting Standards specified under
section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of 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 statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
9. In preparing the financial statements, management is responsible for assessing the
Companys 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.
10. The Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
11. 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 auditors 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 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.
12. 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.
• Obtained an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under Section 143(3)
(i) of the Companies Act, 2013, 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors 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 auditors
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.
13. 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.
14. 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.
15. 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 current period and are therefore the key audit matters. We describe these matters in
our auditors report unless law or regulation precludes public disclosure about the
matters or when 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.
16. 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.
Report on Other Legal and Regulatory Requirements
17. As required by the Companies (Auditors 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-A, a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
18. 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 purposes 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, the Statement of Profit and Loss (including other comprehensive
income) and the Cash Flow Statement, Statement of Changes in Equity dealt with by this
report are in agreement with the books of accounts.
(d) In our opinion, the aforesaid 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 the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms
of 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 Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended: According to
the information and explanations given to us and the records of the company examined by
us, total managerial remuneration paid as reflected in the financial statements for the
year ended 31st March 2023 are in accordance with the requisite approvals
mandated by the provisions of section 197 read with Schedule V of the Act.
(h) With respect to the other matters to be included in the Auditors 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:
a. The Company has disclosed the impact of pending litigations that could impact its
financial position Refer Note 18 to the financial statements.
b. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
c. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
d. (i) The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) 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 person or entity, including foreign
entity ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, 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;
(ii)The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, 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;
(iii)Based on the audit procedures that have been 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 (i) and (ii) of Rule 11(e), as provided under (i) and
(ii) above, contain any material misstatement.
e. The Company has neither proposed any dividend in the Previous year or in the current
year nor paid any interim dividend during the year.
f. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
For L. B. Jha & Co.
Chartered Accountants
Firm Registration No.: 301088E
|
Sd/- |
|
(D.N.Roy) |
| Place: Kolkata |
Partner |
| Date: 30th May, 2023 |
(Membership No.: 300389) |
|
UDIN:23300389BGWCIC9707 |
ANNEXURE- A: TO THE INDEPENDENT AUDITORS REPORT
To the Members of Standard Shoe Sole and Mould (India) Limited
[Referred to in paragraph 17 of the Auditors Report of even date]
i. (a)(A) The Company does not own any property, Plant & Equipment and intangible
assets hence reporting under para 3 clause (i) sub-clause (a)(A) & (a)(B), (b), (c),
(d) is not applicable. (e) According to the information and explanations given to us and
the records of the company examined by us, no proceeding have been initiated during the
year or are pending against the Company as at March 31,2023 for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made thereunder.
ii. (a) The Company does not have any inventory at the year-end and hence reporting
under this clause is not applicable.
(b) According to the information and explanations given to us and the records of the
company examined by us, the company has not borrowed working capital loans from any bank
during the year and hence reporting under this clause is not applicable.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms,
limited liability partnership or other parties and hence reporting under this clause is
not applicable.
iv. According to the information and explanations given to us and the records of the
Company examined by us, the Company has not made any investment, advanced any loan, given
any guarantee or provided any securities to others and hence reporting under this clause
is not applicable.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits
within the meaning of Sections 73 to 76 of the Act and the rules framed there under.
Further, no orders have been passed by Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any court or any other tribunal which could impact the
Company.
vi. The Central Government of India has not prescribed maintenance of cost records
under sub-section (1) of Section 148 of the Act for any of the products of the Company.
vii. (a) According to the information and explanations given to us and the records of
the
Company examined by us, the company is regular in depositing undisputed statutory dues
including Goods and Services Tax, provident fund, employees state insurance, income-tax,
sales-tax, service tax, duty of excise, value added tax, cess and any other statutory dues
to the appropriate authorities. According to the information and explanations given to us
and the records of the Company examined by us, in our opinion, the Company has defaulted
in deposit of undisputed customs duty for a period of more than 6 months as on 31.03.2023.
The details are given below.
| Name of the Statute |
Nature Of Dues Statutory |
Amount (Rs.) |
Period to which the amount relates |
| Customs Act, 1962 |
Custom duty |
36,32,884.00 |
FY 2018-19 |
(b) According to the information and explanations given to us and the records of the
Company examined by us, there are no dues of income tax, goods and services tax as at 31st
March 2023 which has not been deposited on account of a dispute. viii. There were no
transactions relating to previously unrecorded income that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(Sec. 43 of 1961).
ix. The Company has not taken any loans or other borrowings from any lender. Hence
reporting under this clause is not applicable.
x. (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year and hence reporting under this
clause is not applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under this clause is not applicable.
xi. (a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of fraud on or by the Company, noticed or reported during the year, nor have we
been informed of such case by the management.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and up to the date of this report.
(c) According to the information and explanations given to us and the records of the
Company examined by us, the Company has not received any complaints from any whistle-
blower during the year (and up to the date of this report) and hence reporting under this
clause is not applicable.
xii. The Company is not a Nidhi Company and hence reporting under this clause is not
applicable.
xiii. According to the information and explanations given to us and the records of the
Company examined by us, the company has complied with the requirements of sections 177
and 188 of the Act with respect to its transactions with the related parties. Pursuant to
the requirement of the applicable Accounting Standard, details of the related party
transactions have been disclosed in Note 25 of the financial statements for the year under
audit.
xiv. (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
xv. (a)& In our opinion, the Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under this clause is not
applicable. (b) (c) In our opinion, there is no core investment company within the Group
(as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and hence
reporting under this clause is not applicable. xvi. The Company has incurred cash losses
during the current year. There was no cash loss in the immediately preceding financial
year.
| Years |
Cash Losses (Rs.) |
| FY 2022-23 |
34,61,766 |
The above cash losses have been computed as per guidance note on CARO issued by ICAI.
xvii. There has been no resignation of the statutory auditors of the Company during the
year.
xviii. On the basis of the financial ratios, ageing and expected dates of realisation
of financial assets and payment of financial liabilities, other information accompanying
the financial statements and our knowledge of the Board of Directors and Management plans
and based on our examination of the evidence supporting the assumptions, nothing has come
to our attention, which causes us to believe that any material uncertainty exists as on
the date of the audit report indicating that Company is not capable of meeting its
liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however, state that this is not an
assurance as to the future viability of the Company. We further state that our reporting
is based on the facts up to the date of the audit report and we neither give any guarantee
nor any assurance that all liabilities falling due within a period of one year from the
balance sheet date, will get discharged by the Company as and when they fall due.
xix. According to information and explanation given to us and records of the Company
examined by us, Provisions of sec 135 (5) of the Companies Act,2013 is not applicable to
company
xx. The Company does not have any subsidiary, associate and joint venture hence
reporting under this clause is not applicable.
For L. B. Jha & Co.
Chartered Accountants
Firm Registration No: 301088E
|
Sd/- |
|
(D.N. Roy) |
| Place: Kolkata |
Partner |
| Date: 30.05.2023 |
Membership No: 300389 |
|
UDIN: :23300389BGWCIC9707 |
ANNEXURE- B TO THE INDEPENDENT AUDITORS REPORT
To the Members of Standard Shoe Sole and Mould (India) Limited
[Referred to in paragraph 18 (f) of the Independent Auditors Report of even date]
Report on the Internal Financial Control under Clause (i) of Sub sections 3 of Section
143 of the Companies Act, 2013("the Act")
1. We have audited the internal financial controls over financial reporting of Standard
Shoe Sole and Mould (India) Limited ("the Company") as of 31st
March, 2023 in conjunction with our audit of the financial statements of the Company for
the year ended on that date.
Managements Responsibility for Internal Financial Control
2. The Companys management is responsible for establishing and maintaining internal
financial control 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 (the
"Guidance Note") issued by the Institute of Chartered Accountants of India
(ICAI). 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 companys 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 Act.
Auditors Responsibility
3. Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the "Guidance Note" and the Standard on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Act, to the extent applicable. 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.
4. 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 includes
obtaining an understanding of internal financial control over financial reporting,
assessing the risk that a material Weakness exists, and testing and evaluating the design
and operating effectiveness of internal controls based on the assessed risk. The procedure
selected depends on the auditors judgment, including the assessment of the risk of
material misstatement of the financial statement, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Control over Financial Reporting
6. A Companys 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 Companys internal financial control over
financial reporting includes those policies and procedures that:
1) Pertain to the maintenance of the records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that the transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditure of the Company are being made
only in accordance with authorization of management and directors of company; and
3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Control over Financial Reporting
7. Because of inherent limitation of internal financial control over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to errors or fraud may occur and not be detected.
Also, projections of any evaluations of the internal financial control 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
8. In our opinion and based on audit tests performed in our audit of the financial
statements for the year ended 31st March 2023, the Company has, in all material respect,
an adequate internal financial controls system over financial reporting and such internal
financial controls over financial reporting. were operating effectively as at 31st March
2023. The Company had established informal practices which are effective in having a
proper internal control over financial reporting. A formal system of internal control over
financial reporting criteria needs to be established by the Company considering the
essential components of internal control as stated in the Guidance Note on Audit of
Internal Financial Control Over Financial Reporting, issued by the Institute of Chartered
Accountants of India.
9. We have considered the material weakness identified and reported above in
determining the nature, timing, and extent of audit tests applied in our audit of the 31st
March, 2023 financial statements of the Company and these material weakness does not
affect our opinion on the financial statements of the Company.
For L. B. Jha & Co.
Chartered Accountants
Firm Registration No: 301088E
|
Sd/- |
|
(D. N.Roy) |
| Place: Kolkata |
Partner |
| Date: 30.05.2023 |
(Membership No.: 300389) |
|
UDIN: :23300389BGWCIC9707 |
+91-9892691696
