We have audited the accompanying financial statements of
Liberty Shoes Limited ("the Company"), which comprises
the Balance Sheet as at March 31, 2025, the Statement of
Profit and Loss (including Other Comprehensive Income), the
Statement of Cash Flowsand the Statement of Changes in
Equity for the year then ended, and a summary of significant
accounting policies and other explanatory information
(hereinafter 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 Indian
Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, ("Ind AS") and other accounting
principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2025, the profit and total
comprehensive income, changes in equity and its cash
flows for the year ended on that date.

Basis of Opinion

We conducted our audit of the financial statements in
accordance with the Standards on Auditing specified
under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further
described in the Auditor's 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 (ICAI) together with the
independence requirements that are relevant to our
audit of the financial statements under the provisions of
the Act and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI's Code of Ethics.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
audit opinion on the financial statements.

Key Audit Matters

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 the matters described below to be the key
audit matters to be communicated in our report.

Information Other than the Financial Statements
and Auditor's Report Thereon

The Company's Board of Directors is responsible for
the preparation of the other information. The other
information comprises the information included in the
Management Discussion and Analysis, Board's Report
including Annexures to Board's Report, Corporate
Governance and Shareholder's Information, but does
not include the financial statements and our auditor's
report thereon.

Our opinion on the financial statements does not
cover the other information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the financial
statements, our responsibility is to read the other
information and, in doing so, consider whether the
other information is materially inconsistent with the
financial statements or our knowledge obtained during
the course of our audit or otherwise appears to be
materially misstated.

If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information, we are required to report that fact and we
have nothing to report in this regard.

When we read other information, if we conclude that
there is a material misstatement therein, we are
required to communicate the matter to those charged
with governance and take appropriate actions, if
required.

Emphasis on Matters

Without qualifying our opinion, your attention is
invited to:

a) We draw attention to Note No. 54 of the
accompanying financial statements, which describes
the Company's arrangements with M/s Liberty
Footwear Co., M/s Liberty Enterprises, and M/s
Liberty Group Marketing Division, partnership firms in
which some of the directors are also interested as
partners, under which it holds rights for usage of
certain tangible and intangible assets are set to expire

on March 31,2028. The management has represented
that, based on understandings with certain partners,
and considering the current status of ongoing
arbitration proceedings as described in the said note,
the Company expects to either acquire the same or
renew the existing arrangements or implement
alternative strategies to ensure continuity of
operations. Accordingly, no adjustments have been
made to the accompanying financial statements in
this regard. Our opinion is not modified in respect
of this matter.

b) We draw attention to Note No. 46 of the
accompanying financial statements, which describes
that during the year, the Company experienced delays
in payments to certain Micro and Small Enterprises
(MSEs) as governed by the provisions of Section 15 of
the Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006. Consequently, an interest liability
amounting to ^26.21 lakhs has arisen under Section 16

of the MSMED Act. The Company has duly recognized
this liability in its books of account, although the
payment is pending as at the balance sheet date.The
management has explained that these delays were due
to certain vendors not timely declaring their MSME
status, which led to inadvertent breaches of the
statutory payment timeline. The Company is currently
in the process of strengthening its internal controls to
ensure timely and accurate updates to its vendor
database, particularly with regard to registration status
on the UDYAM portal.

Our opinion is not qualified on the above matters.

Management's Responsibility for the Financial
Statements

The Company's 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 and
presentation of these Ind-ASfinancial statements that
give a true and fair view of the financial position,
financial performance including other comprehensive
income, changes in equity and cash flows of the
Company in accordance with the Indian Accounting
Standards (Ind-AS) prescribed under Section 133 of the
Act, read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, and other
accounting principles generally accepted in India.This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions
of the Act for safeguarding the assets of the Company

• Obtain an understanding of internal financial
controls relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under section 143(3)(I) of the Act,
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 management's
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
Company's ability to continue as a going concern.
If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's 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 auditor's
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.

• 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.

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.

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.

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 financial year ended March 31,2025
and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or
regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, 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.

Report on Other Legal and Regulatory Requirements

1. As required by section 143 (3) of the Act, based on
our audit we report, to the extent applicable, 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
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 it
appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss
including Other Comprehensive Income, the
Statement of Changes in Equity and the Statement
of Cash Flows dealt with by this Report are in
agreement with the books of account;

d) In our opinion, the aforesaid financial statements
comply with the Indian Accounting Standards
specified under section 133 of the Act.

e) On the basis of written representations received
from the directors as on March 31,2025, and taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31,2025, from
being appointed as a director in terms 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
A".Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the
Company's internal financial controls over
financial reporting.

g) With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of section 197(16) of the Act, as
amended:

In our opinion and to the best of our information and
according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is in accordance with the provisions
of section 197 of the Act.

h) With respect to the other matters to be included
in the Auditor's Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014,
as amended, in our opinion and 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 financial position in
its financial statements.

ii. The Company has made provision, as required
under the applicable law or Ind-AS, for material
foreseeable losses, if any, on long-term
contracts including derivative contracts.

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

iv. (a) The management has represented that, to
the best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no
funds 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 persons or entities,
including foreign entities ("Intermediaries"),
with the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall:

• 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.