We have audited the accompanying Statement of StandaloneFinancial Statements of Lehar Footwears Limited ("theCompany"), which comprise the balance sheet as at 31stMarch 2026, and the statement of Profit and Loss (includingOther Comprehensive Income), and statement of cashflows and statement of changes in equity, for the year thenended, and notes to the standalone financial statements,including a summary of material accounting policies andother explanatory information (hereinafter referred to as"Standalone Financials Statements")
In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidstandalone financial statements give the information requiredby the Companies Act, 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity withthe Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian AccountingStandards) Rules, 2015, as amended, ("Ind AS") and otheraccounting principles generally accepted in India, of the stateof affairs of the Company as at March 31, 2026, and its profit
(including other comprehensive income), changes in equityand its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standardson Auditing (SAs) specified under section 143(10) ofthe Companies Act, 2013. Our responsibilities underthose Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financialstatements under the provisions of the Companies Act, 2013and the Rules thereunder, and we have fulfilled our otherethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide abasis for our opinion.
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of thestandalone financial statements of the current period. Thesematters were addressed in the context of our audit of thestandalone financial statements as a whole, and in formingour opinion thereon, and we do not provide a separateopinion on these matters.
We have determined the matter described below to be the key audit matter to be communicated in our report.
Key Audit Matter
Auditor's Response
Revenue Recognition:
Revenue is one of the key profit drivers. Cut-off is the keyassertion insofar as revenue recognition is concerned, sincean inappropriate cut-off can result in material misstatementof results for the year
Our audit procedures with regard to revenue recognitionincluded testing controls, around dispatches / deliveries,inventory reconciliations and substantive testing for cut-offsand analytical review procedures.
Discounts and Incentives:
Discounts and incentives to dealers / customers areadministered through various schemes. These are materialitems of business cost. The calculation of the amount ofexpense to be recognized is both voluminous, complex andinvolves significant judgement. There is a risk that suchexpense for discounts and incentives may be inaccuratelyrecognized.
Our audit procedures included assessment of the designand implementation of controls, in addition to testing theeffectiveness of key controls in respect of recognition ofthe expenses for such discounts and incentives. We haveconsidered each significant type of discount recognized andassessed the appropriateness of the judgement applied whilerecognizing the expenses including the methodology andinputs used in calculating the amount and in some cases,re-performed the calculation. Our audit procedures alsoincluded verification of appropriate authorization, analyticalreview and actual charge for the year and review of historicaltrends in respect.
INFORMATION OTHER THAN THE FINANCIALSTATEMENTS AND AUDITOR'S REPORTTHEREON
The Company's management and Board of Directors areresponsible for the other information. The other informationcomprises the information included in the ManagementDiscussion and Analysis, Board's Report including Annexuresto Board's Report, Corporate Governance and Shareholder'sInformation, but does not include the standalone financialstatements and our auditor's report thereon. These reportsare expected to be made available to us after the date ofthis audit report.
Our opinion on the standalone financial statements does notcover the other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the other informationand, in doing so, consider whether the other informationis materially inconsistent with the standalone financialstatements or our knowledge obtained in the audit orotherwise appears to be materially misstated.
If, based on the work we have performed, we conclude thatthere is a material misstatement of this other information,we are required to report that fact, since these reports areexpected to be made available to us after the date of thisaudit report hence currently, we have nothing to report inthis regard.
RESPONSIBILITIES OF MANAGEMENT ANDTHOSE CHARGED WITH GOVERNANCE FOR THEFINANCIAL STATEMENTS
The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Companies Act,2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of thefinancial position, financial performance, and cash flows ofthe Company in accordance with the accounting principlesgenerally accepted in India, including the accountingStandards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequateaccounting records in accordance with the provisions of theAct for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies;making judgments and estimates that are reasonable andprudent; and design, implementation and maintenance ofadequate internal financial controls, that were operatingeffectively for ensuring the accuracy and completeness ofthe accounting records, relevant to the preparation andpresentation of the financial statements that give a true andfair view and are free from material misstatement, whetherdue to fraud or error.
In preparing the financial statements, the Board of Directorsis responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters relatedto going concern and using the going concern basis ofaccounting unless the Board of Directors either intends toliquidate the Company or to cease operations, or has norealistic alternative but to do so.
The Board of Directors are also responsible for overseeingthe company's financial reporting process.
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a wholeare free from material misstatement, whether due to fraudor error, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurancebut is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement whenit exists. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate,they could reasonably be expected to influence the economicdecisions of users taken on the basis of these standalonefinancial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatementof the financial statements, whether due to fraud orerror, design and perform audit procedures responsiveto those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resultingfrom fraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant tothe audit in order to design audit procedures that areappropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing ouropinion on whether the company has adequate internalfinancial controls with reference to standalone financialstatements in place and the operating effectiveness ofsuch controls.
• Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management's use ofthe going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertaintyexists related to events or conditions that may castsignificant doubt on the Company's ability to continue as agoing concern. If we conclude that a material uncertaintyexists, we are required to draw attention in our auditor'sreport to the related disclosures in the financial statementsor, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However,future events or conditions may cause the Company tocease to continue as a going concern.
• Evaluate the overall presentation, structure and contentof the financial statements, including the disclosures, andwhether the financial statements represent the underlyingtransactions and events in a manner that achievesfair presentation.
• Obtain sufficient appropriate audit evidence regarding thefinancial information of the company to express an opinionon the statement.
Materiality is the magnitude of misstatements in thestandalone financial statements that, individually or inaggregate, makes it probable that the economic decisions ofa reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scopeof our audit work and in evaluating the results of our work;and (ii) to evaluate the effect of any identified misstatementsin the standalone financial statements.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with astatement that we have complied with relevant ethicalrequirements regarding independence, and to communicatewith them all relationships and other matters that mayreasonably be thought to bear on our independence, andwhere applicable, related safeguards.
1. As required by the Companies (Auditor's Report) Order,2020 ("the Order"), issued by the Central Governmentof India in terms of sub-section (11) of section 143 ofthe Companies Act, 2013, we give in the Annexure Istatement on the matters specified in paragraphs 3 and4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the informationand explanations, which to the best of ourknowledge and belief were necessary for thepurposes of our audit.
b) In our opinion, proper books of account as requiredby law have been kept by the Company so far as itappears from our examination of those books.
c) The Balance Sheet, the Statement of Profit andLoss, and the Cash Flow Statement dealt with by
this Report are in agreement with the books ofaccount.
d) In our opinion, the aforesaid standalone financialstatements comply with the Ind AS specified underSection 133 of the Act.
e) On the basis of the written representations receivedfrom the directors as on 31st March, 2026 takenon record by the Board of Directors, none of thedirectors is disqualified as on 31st March, 2026 frombeing appointed as a director in terms of Section164(2) of the Act.
f) With respect to adequacy of Internal FinancialControls with reference to financial statementsof the Company and the operating effectivenessof such controls, refer to our separate report inAnnexure II. Our report expresses an UnmodifiedOpinion on the adequacy and operatingeffectiveness of the company internal financialcontrols over financial reporting.
g) With respect to the other matters to be includedin the Auditor's Report in accordance with therequirements of section 197(16) of the Act, asamended:
In our opinion and to the best of our informationand according to the explanations given to us, theremuneration paid by the Company to its directorsduring the year is in accordance with the provisionsof section 197 of the Act.
h) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014,in our opinion and to the best of our informationand according to the explanations given to us:
i. The Company has disclosed the impact ofpending litigations on its financial position inits financial statements - Refer Note No. 39to the financial statements.
ii. The Company did not have any long-termcontracts including derivative contracts forwhich there were any material foreseeablelosses.
iii. There were no amounts, which were requiredto be transferred to the Investor Educationand Protection Fund by the Company.
iv. a) The management has represented
that Refer Note No 43.5 to thefinancial statements, to the best of itsknowledge and belief, no funds havebeen advanced or loaned or invested
(either from borrowed funds or sharepremium or any other sources or kindof funds) by the company to or in anyother person(s) or entity(ies), includingforeign entities ("Intermediaries"), withthe understanding, whether recordedin writing or otherwise, that theIntermediary shall, whether, directlyor indirectly lend or invest in otherpersons or entities identified in anymanner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries")or provide any guarantee, securityor the like on behalf of the UltimateBeneficiaries.
b) The management has representedRefer Note No. 43.5 to the financialstatements, that, to the best of itsknowledge and belief, no funds havebeen received by the company fromany person(s) or entity(ies), includingforeign entities ("Funding Parties"), withthe understanding, whether recorded inwriting or otherwise, that the companyshall, whether, directly or indirectly, lendor invest in other persons or entitiesidentified in any manner whatsoeverby or on behalf of the Funding Party("Ultimate Beneficiaries") or provide anyguarantee, security or the like on behalfof the Ultimate Beneficiaries.
c) Based on the audit procedures thathave been considered reasonable andappropriate in the circumstances, nothinghas come to our notice that has causedus to believe that the representationsunder sub-clause (i) and (ii) of Rule 11(e) as provided under (A) and (B) abovecontain any material misstatement.
v. Based on our examination which included
test checks, the company has used anaccounting software for maintaining its booksof account which has a feature of recordingaudit trail (edit log) facility and the same hasoperated throughout the year for all relevanttransactions recorded in the software.Further, during the course of our audit wedid not come across any instance of audittrail feature being tampered with & the audittrail has been preserved by the company asper the statutory requirements for recordretention.
For A Bafna & Co
Chartered AccountantsFRN:- 003660C
(CA Vivek Gupta)
Partner
Date: May 22, 2026 M.No. 400543
Place: Jaipur UDIN: - 26400543SPSEFG8004