Accounting Policies of Standard Shoe Sole and Mould (India) Ltd. Company

Mar 31, 2025

Note 1- Background

Standard Shoe Sole & Mould (India) Limited was originally incorporated with the Registrar of Companies, West Bengal on 19th day of July, 1973 as Chemcrown India (Private) Limited. The Company made its public issue in the year 1991 and subsequently got its shares listed at BSE Limited in the same year. The company engaged in the business of Trading in footwear, leatherwear, leather articles, fashion wear, shoe components, synthetic shoes and ladies'' heels and moulds, and also deals in chemicals.

Note 2- Summary of Material Accounting Policies

These Notes provide a list of material accounting policies adopted in preparation of these financial statements. The Policies have been consistently applied to all the years presented, unless otherwise stated

2.1 Basis of preparation of Financial Statements

i. Compliance with Ind AS

These financial statements comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act 2013 (the Act) [Companies (Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

Accounting policies have been consistently applied except where a newly-used accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii. Historical cost convention

The financial statements have been prepared under the historical cost convention with the exception of certain financial assets and liabilities which have been measured at fair value, on an accrual basis of accounting.

iii. Reporting Currency

The Company''s financial statements are reported in Indian Rupees, which is also the Company''s functional currency.

2.2 Accounting estimates

The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and reported amounts of income and expenses during the period. The application of accounting policies that require accounting estimates involving complex and subjective judgements and are based upon managements best knowledge of current events and actions. Actual results could differ from those estimates. Any revision to accounting estimates is recognised as the Management becomes aware of changes in circumstances relating to the estimates. Changes are made in the financial statements in the period in which changes are made and. if material, their effects are disclosed in the notes to the financial statements.

2.3 Financial Instruments

The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions. All financial assets and liabilities are recognised at fair values on initial recognition, except for trade receivables, which are initially measured at transaction prices. Regular way purchase and sale of financial assets are accounted for at the trade date. A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the conti actual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset which is not a derivative financial instrument, nor as classified above, is subsequently fair valued through profit or loss.

Financial liabilities are subsequently carried at amortised cost using the effective interest method.

Trade Receivables and Loans

A receivable is classified as a ''trade receivable’ if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the E1R method, less provision for impairment.

Loans are financial assets which are subsequently measured at amortised cost if these are held within a business model with an objective to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income from these financial assets is included in finance income using the effective interest rate ("EIR") method. Impairment gains or losses arising on these assets are recognised in the Statement of Profit and Loss.

Impairment ofFinancial Asset

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category. For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company''s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall. The impairment losses and reversals are recognised in Statement of Profit and Loss.

Classification as debt or equity

Debt and equity instruments issued by a Company entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company entity are recognised at the proceeds received, net of direct issue costs.

Trade Payables

A payable is classified as a ''trade payable'' if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. These amounts are unsecured and are usually settled as per the payment terms stated in the contract. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the EIR method.

Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis to realise the assets and settle the liabilities simultaneously.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

2.4 Revenue recognition

The revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is presented net of taxes in the Statement of profit and Loss.

Interest income is recognized using the time proportion method, based on rates implicit in the transaction.

2.5 Income Tax

Income tax comprises of current and deferred income tax. Income tax is recognised as an expense or income in the Statement of Profit and Loss, except to the extent it relates to items directly recognised in equity or in Other Comprehensive Income, OCI.

Current Income Tax

Current income tax is recognised based on the estimated tax liability computed after taking credit for allowances and exemptions in accordance with the Income Tax Act, 1961. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income Tax

Deferred tax is determined by applying the Balance Sheet approach. Defeired tax assets and liabilities are recognised for all deductible temporary differences between the financial statements'' carrying amount of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are substantively enacted at the

Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date. Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Such assets are reviewed at each Balance Sheet date to reassess realisation.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured reliably. The Company offsets on a year-on-year basis the current tax assets and liabilities, where it has a legally enforceable right and where it intends settle such asset and liabilities on a net basis.

2.6 Provisions and contingent liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of management''s best estimate of the expenditure require to settle the present obligation at the end of the reporting period. In case the time value of money is material, the discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

When no reliable estimate can be made, a disclosure is made as contingent liability, A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

Contingent assets are neither recognised nor disclosed in the financial statements.

2.7 Trade Receivables

A receivable is classified as a ''trade receivable'' if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business.

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the E1R method, less provision for impairment.

2.8 Earnings per share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extra-ordinary item. The number of equity shares used in computing basic earnings per share is the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

The number of equity shares used in computing diluted earnings per share comprises weighted average number of equity shares considered for deriving basic earnings per share and also weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.9 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprises of cash at banks and on hand and short term deposits with an original maturity of three month or less which are subject to an insignificant risk.

NOTE No.19

Contingent Liabilities as at 31-03-2025 were as follows:

No Contingent liabilities as on 31-03-2025.

NOTE No.20

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder and company has not been declared as wilful defaulter by and bank or institution or other lender.

NOTE No.21

To the best of the information available, the company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

NOTE No.22

Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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Mar 31, 2024

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Mar 31, 2015

A. Basis of Accounting

The financial statements, have beep prepared under the historical cost convention, on accrual basis except where otherwise stated and with all material aspects of Generally Accepted Accounting Principles (GAAP) In India GAAP comprise. mandatory accounting standards. as prescribed under Section 133; of the Companies Act, 2013 (Act) read with Rule 7 of the companies (Accounts) Rules 2014, the provisions of the Act to the extent notified and applicable). The accounting policies have been consistently applied by the Company and' are consistent with those of previous-year

b. Use of Estimates

The preparation of financial statements in company with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the transporting period. Although these estimates are based up of past experience, present realization and Future presumptions actual results may differ from these estimates, Any revision to. these accounting estimates is, recognized prospectively, in future periods.

c. Revenue Recognition

I) Revenue is recognized when the significant risk and rewards of Owner ships of the goods have passed to the buyer and is recorded net of excise duty, service tax value added tax and credit discounts, For the periods of disclosure In the financial statements sales are reflected gross and net of excise duty In the Statement of Profit and Loss account.

II), Other Income Is accounted for on accrual basis except where the receipt of income is uncertain in which case. it Is accounted for on receipt basis.

III) Dividend Income is recognized when the company rightf to receive the dividend is established,

IV) Inter income Is recognized of the time proportion method basis except where the receipt of Income Is uncertain In which case it is accounted for on receipt basis;

d. fixed Assets (Tangible)

i) During the year there were no fixed assets.

e. Investment

i) Non - current investments are carried at cost, after providing for diminution in value, if Is of, permanent nature

ii) Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect of each Investment. The Company was unable to produce the NSC certificate 35-shown under the Balance sheet

f, Inventories

There was no closing Stock of raw material packing materials consumable stores work in progress etc,.

g. Foreign Currency Transactions

i) There were no foreign currency transactions during the year.

h. Employees/ Retirement Benefits

i) There were no Gratuity and leave encashment defined "benefit scheme for the Company.

I. Provision Contingent Liabilities and contingent Assets

Provisions are recognized in respect of obligations based on the evidence available their existence at the Balance Sheet date, is considered probable. Estimated liabilities in respect of business performance are provided for based on past experience and historical data.

Liabilities are provided there are reasonable prospects of such liabilities nattering other liabilities barring frivolous claims not acknowledged as debt are disclosed by Way of any Continent assets are not recognized of disposal in the financial statement.

a. The company had some transaction, relating to saree trading and is also restructuring of finance to mitigate the liabilities of the company, It has entered into and made compromise settlement with books and financial institution out of proceeds from sale of land.

b. The company has not been able to ascertain dues of Micro, small and medium enterprises as required under the MSED Acct, 2006 since relevant information is not available.

d. Balance confirmation have been required for the dues on account of debenture lying over side, sales have been filled by the company for recovery of long outstanding debenture of Rs. 127 Lacs.

f. In view of past losses and uncertainty of future profits the company has not account for deferred assets. advances, debtors have not been received.

h. i} Since there are no leave to the credit of employees, as at the end of the financial year, no provisions required for leave.

ii) No provision. Has been made or account of gratuity' as none of the employees have put In the required of services making them eligible for gratuity.

i. Intangibles fixed Assets'

There were no intangible assets during there parties period;'

j. Segment Reporting

Company doesn't required to report segment wise activities.

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Mar 31, 2012

Basic of Accounting:

The Financial Statements are prepared under historical cost convention on and on accrual basis, except depreciation and interest.

Revenue Recognition

a) The company recognizes sales at the point of dispatch of goods to the customers.

b) Interest is accounted as per terms of relevant arrangements.

Fixed Assets

Fixed assets are stated at cost or revalued figure less accumulated depreciation.

Inventory

In the reporting year there were no inventories. -

Investments

Long term investments are valued at cost with an appropriate provision for permanent diminution in value.

Retirement Benefits

Gratuity and leave wages is accounted for on cash basis. There re no schemes for retirement benefits for the employees presently in operation s there are no permanent employees in the Company''s payroll.

Taxation

Current tax is determined in respect of taxable income for the year based on applicable tax rates and Laws.

Deferred tax is recognized, subject to consideration of prudence, on timing difference being the difference between taxable income and accounting income that originates in one period and one capable of set off in one on more subsequent year and is measured using tax rates and laws that have been enacted or subsequently erected by the balance sheet date. Deferred tax assets have not been accounted for.

Borrowing Cost

Borrowing costs attributable to the acquisition or construction of qualifying assets is capitalized as part of the cost of the assets. Other borrowing costs are recognized as expense in the period in which these are incurred.

Intangible Assets

The Company does not cany any intangible assets.

Provisions & Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an out flow of resources and a reliable estimate can be made of the amount of obligation.

A disclosure for a Contingent Liability is made when there is possible obligation or a present obligation that may, but probably will not require an outflow or resources.