**Standard Shoe Sole and Mould (India) Limited** (formerly known as **Chemcrown (India) Limited**) is a public limited company listed on the **BSE Limited (523351)** and the **Calcutta Stock Exchange**. Historically a player in the leather and footwear component sector, the company is currently in a state of total operational and leadership transformation following a formal takeover in **2024**. --- ### Corporate Identity & Strategic Pivot The company is transitioning from a legacy leather goods manufacturer into a platform under new ownership. While its historical mandate is broad, the current phase is defined by a shift in the "Center of Gravity" from West Bengal to Telangana. * **Name Change:** Formerly **Chemcrown (India) Limited**. * **Registered Office Relocation:** In **February 2025**, the company received approval to move its headquarters from **West Bengal** to **Hyderabad, Telangana** (Surya Hospital Building, Troop Bazar). * **Operational Mandate:** The company is authorized to trade and manufacture across three primary verticals: * **Footwear & Components:** Synthetic shoe soles, ladies' heels, moulds, and general shoe components. * **Leather Goods:** Leatherwear, fashion articles, and leather-based accessories. * **Chemicals:** Industrial dyes, acids, alkalies, and related chemical agents. --- ### New Ownership & Management Control The company has recently completed a **Takeover** under SEBI (SAST) Regulations, resulting in a complete overhaul of the Board of Directors and the Promoter Group. **The Buildox Acquisition (March 2024):** * **New Promoter:** **Buildox Private Limited** acquired **1,316,207 Equity Shares**, representing **25.40%** of the paid-up capital. * **Open Offer:** An offer was extended to public shareholders for an additional **26%** of voting capital at a final price of **₹5.82** per share. * **Projected Control:** Post-transaction, the new promoter's holding is expected to range between **25.40% and 51.36%**. * **Asset Protection:** The new promoters have committed to a **2-year lock-in** (until **March 2026**) on the alienation of any material assets, except in the ordinary course of business. **Current Leadership Team:** Following the mass resignation of the previous board on **April 1, 2024**, the following Key Managerial Personnel (KMP) were appointed: * **Mr. Rakesh Kolla:** Whole-time Director (Appointed **April 3, 2024** for a **5-year** term). * **Ms. Nandhi Sowmya:** Chief Financial Officer (Appointed **April 1, 2024**). * **Mr. Sandeep Garg:** Company Secretary (Appointed **June 29, 2024**). --- ### Financial Performance & Solvency Status The company’s financial health is currently critical, characterized by a cessation of core business activities and significant capital erosion. | Financial Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **NIL** | **NIL** | **₹10,60,937** | **₹47,11,745** | | **Net Profit / (Loss)** | **(₹18,56,021)** | **(₹65,88,194)** | **(₹31,44,166)** | **(₹1,59,69,765)** | | **Dividend Recommended** | **NIL** | **NIL** | **NIL** | **NIL** | **Key Financial Ratios & Observations:** * **Revenue Stagnation:** The company reported **zero revenue** for the most recent fiscal year, relying on the recovery of old dues to fund administrative costs. * **Debt-to-Equity:** Increased sharply from **1.49** to **10.81** between FY22 and FY23, reflecting a shrinking equity base against persistent liabilities. * **Liquidity:** The **Current Ratio** has deteriorated to **1.09**, with auditors noting that **current liabilities exceed current assets**. * **Insolvency Status:** Despite the financial distress, as of **September 2024**, there are **no proceedings pending** under the Insolvency and Bankruptcy Code (IBC). --- ### Operational Infrastructure & Segment Reporting The company maintains a legacy footprint across India, though these facilities are currently under-utilized or inactive. * **Factory Locations:** Chennai and Pondicherry. * **Branch Network:** Kolkata, Chennai, Delhi, and Kanpur. * **Reporting Structure:** The company operates as a **single reporting business segment** (Footwear/Leather) in accordance with **Ind AS - 108**. * **Human Capital:** The workforce is currently minimal, consisting primarily of the **two permanent employees** serving as KMPs (CFO and Company Secretary). --- ### Capital Strategy & Future Growth Framework Under the leadership of **Buildox Private Limited**, the company is seeking to recapitalize and leverage its listed status for future expansion. * **Capital Infusion:** In **September 2024**, the Board approved the issuance of further capital to strengthen the balance sheet. * **Expanded Borrowing Limits:** Shareholders passed a special resolution under **Section 180(1)(c)**, authorizing the Board to borrow funds from banks and financial institutions in excess of the company’s paid-up capital and free reserves. * **Market Opportunity:** Management identifies potential tailwinds in the **"Make in India"** initiative and rising manufacturing costs in China, which may benefit the Indian leather and footwear sector once operations resume. --- ### Risk Factors & Regulatory Compliance Investors should note significant material uncertainties regarding the company’s status as a **Going Concern**. **1. Financial & Audit Risks:** * **Net Worth Erosion:** The company’s net worth is **fully eroded** due to accumulated losses. * **Cash Losses:** Recurring net cash losses raise doubts about the company's ability to discharge liabilities falling due within the next **12 months**. * **Statutory Defaults:** The company has an outstanding **Customs Duty** liability of **₹36,32,884** dating back to **FY 2018-19**. **2. Governance & Compliance Lapses:** * **Unauthorized Loans:** The company previously accepted loans from Directors totaling over **₹33 Lakhs** without the required shareholder **Special Resolution**, violating **Section 180(1)(c)** of the Companies Act. * **Digital Non-compliance:** The official website (**www.sssmil.com**) is currently **non-functional**, a violation of **Regulation 46(1) of SEBI (LODR)**. * **Historical Reporting:** Promoters have a history of non-compliance with **SEBI (SAST)** reporting requirements dating back to **FY 2018-19**. **3. Market & Legal Risks:** * **Trading Liquidity:** Shares are classified as **in-frequently traded** on the BSE. * **Contingent Liabilities:** There are various legal claims against the company; while management has made **no provision** for these, they represent a potential future drain on capital. * **Industry Sentiment:** Consumer sentiment in the leather industry remains sluggish following global economic disruptions in the **USA and Europe**.