You are here » Home » Companies » Company Overview » Mayur Leather Products Ltd

Mayur Leather Products Ltd.

BSE: 531680 Sector: Others
NSE: N.A. ISIN Code: INE799E01011
BSE 00:00 | 09 Dec 8.39 0.38
(4.74%)
OPEN

8.10

HIGH

8.41

LOW

7.61

NSE 05:30 | 01 Jan Mayur Leather Products Ltd
OPEN 8.10
PREVIOUS CLOSE 8.01
VOLUME 6383
52-Week high 10.68
52-Week low 5.99
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.10
CLOSE 8.01
VOLUME 6383
52-Week high 10.68
52-Week low 5.99
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mayur Leather Products Ltd. (MAYURLEATHER) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAYUR LEATHER PRODUCTS LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) FinancialStatements

We have audited the accompanying standalone Ind AS financial statementsof Mayur Leather Products Limited ("the Company") which comprise the BalanceSheet as at March 31 2021 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

In our Opinion and to the best of our information and according to theexplanations given to us except for the effects and indeterminate effect of the mattersdescribed in the basis for Qualified Opinion section below the aforesaid StandaloneFinancial Statements give the information required by the Companies Act 2013 ("theAct") in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the companyas at March 31 2021 and total comprehensive income (comprising profit and othercomprehensive income) changes in equity and its cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Standalone financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Qualified Opinion

1. As Detailed in Note No. 45 of Standalone Financial StatementsGratuity has not been provided as per actuary valuation as required in IND AS-19(Employees Benefits).

2. As Detailed in Note No. 46 of Standalone Financial Statements Loansand Advances amounting in Rs. 403.95 Lakhs are subject to confirmation and Reconciliation.

3. No rental income and rental expenses of Restaurant Division has beenaccounted in the books of accounts. Further no depreciation has been charged on fixedassets of Restaurant Division.

4. Cheques of rupees 2.62 crore were issued from Canara bank A/c no.50005 on 31st March 2021 to sundry creditors and reversal entry for thesecheques was passed in June 2021. Thus creditors were understated and bank liability wasoverstated due to above entry.

Emphasis of matter

We draw your attention to Note 43 to the standalone financialstatements which describe the management's assessment of the impact of the outbreakof coronavirus (Covid-19) pandemic on the business operations of the Company. Themanagement believes that no adjustments other than those already considered are requiredin the financial statements as it does not impact the current financial year however inview of the various preventive measures taken (such as complete lock-down restrictions bythe Government of India travel restrictions etc.) and highly uncertain economicenvironment a definitive assessment of the impact on the subsequent periods is highlydependent upon circumstances as the evolve.

Our opinion is not modified in respect of this matter.

Key audit matters

1. We draw attention to Annexure to the Auditor's Report Para No.vii (a) that the company is not regular in depositing its statutory dues with appropriateauthorities. Our opinion is not qualified in respect of this matter.

2. The Company is in process to prepare Return and reconciliation forGoods and Service tax for the financial year 2020-21. In the absence of sufficient detailsand information we are unable to determine the correct liabilities of tax interest andpenalty; accordingly we are unable to comment on the impact of related liability includedin these Standalone Financial Statements.

Other Information

The Company's Management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theannual report but does not include the Standalone Financial Statements and our AuditorsReport thereon.

The Annual Report is expected to be made available to us after the dateof this Auditor's Report. Our opinion on the Standalone Financial Statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the Standalone Financial Statements or our knowledge obtained in theaudit or otherwise appear to be materially misstated. When we read the annual report ifwe conclude that there is material misstatement therein we are required to communicatethe matter to those charged with governance and take appropriate action as applicableunder the relevant laws and regulations.

We have nothing to report in this regard.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Companies Act 2013 ("the Act")with respect to the preparation of these standalone Ind AS financial statements to give atrue and fair view of the financial position financial performance (including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards specified in the Companies (Indian Accounting Standards) Rules 2015 (asamended) under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements the management andBoard of Directors are responsible for assessing the company's ability to continue asa going concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate thecompany or the cease operations or has no realistic alternative but to do so the Board ofDirectors are also responsible for overseeing the company's financial reportingprocess.

Auditors' Responsibility

Our objective is to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain skepticism throw-out the audit. We also;

• Identify and asses the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risk and obtain audit evidence that is sufficient andappropriate to provide basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain and understanding of internal controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3) (i) of the Act we are responsible for expressing our opinion whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used andreasonableness of accounting estimates and related disclosures made by management andBoard of Directors.

• Conclude on the appropriateness of management's and Boardof Directors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditors report to the related disclosures in the Standalone Financial Statements or ifsuch disclosure are inadequate to modify our opinion. Our conclusion are based on theaudit evidence obtained upto the date of our auditors report. However future events orconditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation structure and contents of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planed scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement the wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationship and other matters that may reasonably be thought tobear on our independence and where applicable related safe guards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matter in our auditors report unless law or regulations precludes publicdisclosures about the matters or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequence of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunications.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act ("the Order") and on the basis of such checks of the books and recordsof the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure B a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept 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 othercomprehensive income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Annexure A.

g) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our knowledge and belief and according tothe information and explanations given to us:

i. As Explained to us the Company has no material impact of pendingLitigation as at March 31 2021 on its financial position in its standalone Ind ASfinancial statements;

ii. The Company does not have derivative contracts and in respect ofother long-term contracts there are no material foreseeable losses as at March 31 2021;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended March 31 2021;

iv. The reporting on disclosures relating to Specified Bank Notes isnot applicable to the Company for the year ended March 31 2021.

(i) With respect to the matter to be included in the Auditors'Report under Section 197(16):

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

For H.C. GARG & COMPANY
CHARTERED ACCOUNTANTS
FRN:000152C
(MADHUKAR GARG)
PROPRIETOR
M.NO. 070162
Place: Jaipur UDIN : 2107016AAAAAI3074
Date: 03.07.2021

Annexure A to Independent Auditor's Report

Referred to in paragraph 12(g) of the Independent Auditors' Reportof even date to the members of Mayur Leather Products Limited on the standalone Ind ASFinancial Statements for the year ended March 31 2021.

Report on the Internal Financial Controls with reference to financialstatements under Clause (i) of Subsection 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference tofinancial statements of Mayur Leather Products Limited ("the Company") as ofMarch 31 2021 in conjunction with our audit of the standalone Ind AS financial statementsof the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management and Board of Directors are responsiblefor establishing and maintaining internal financial controls based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing deemed to be prescribed under section 143(10) of the Act to the extent applicableto an audit of internal financial controls both applicable to an audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our qualified audit opinion on the Company'sinternal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financialstatements

6. A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements includesthose policies and procedures that (1) Pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of 78 financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference tofinancial statements

7. Because of the inherent limitations of internal financial controlswith reference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

8. In our opinion the Company has maintained in all materialrespects an adequate internal financial controls system with reference to financialstatements and such internal financial controls with reference to financial statementswere operating effectively as at March 31 2021 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For H.C. GARG & COMPANY
CHARTERED ACCOUNTANTS
FRN:000152C
(MADHUKAR GARG)
PROPRIETOR
Place: Jaipur M.NO. 070162
Date: 03.07.2021

Annexure B to Independent Auditors'

Report Referred to in paragraph 11 of the Independent Auditors'Report of even date to the members of Mayur Leather Products Limited on the Ind ASFinancial Statements as of and for the year ended March 31 2021.

i. (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of property plant and equipmentand intangible assets.

(b) The property plant and equipment are physically verified by theManagement. In our opinion the periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieshave been noticed on such verification.

(c) The title deeds of immovable properties as disclosed in Note 7(a)on property plant and equipment to the Ind AS financial statements are held in the nameof the Company.

ii. The physical verification of inventory (excluding inventories lyingwith third parties and stock in transit) have been conducted at reasonable intervals bythe Management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.

iii. The Company has granted loans to body corporate covered in theregister maintained under section 189 of the Companies Act 2013 ("the Act").

a. In our opinion the rate of interest and other terms and conditionson which the loans had been granted to the Body Corporate listed in the registermaintained under section 189 of the Act prima facie not prejudicial to the interest ofthe company.

b. In our opinion and according to the Information and Explanationgiven to us in absence of agreement /arrangement there is no stipulation of schedule ofrepayment of principal and payment of Interest. Hence we are unable to make specificcomment on the Regularity of repayment of Principal and payment of interest in such case.

c. In our Opinion and according to the information and Explanationgiven to us in absence of agreement /arrangement we are unable to verify the total amountoverdue for more than ninety days if any in respect of loan granted to a Body corporatelisted in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of investments made loans granted guarantees provided orSecurity given to the parties.

v. The Company has not accepted any deposits from the public within themeaning of Sections 73 74 75 and 76 of the Act and the Rules framed there under to theextent notified.

vi. Maintenance of cost records has not been specified by the CentralGovernment under sub section (1) of section 148 of the Companies Act 2013.

vii. (A) According to the books and records as produced and examined byus in accordance with generally accepted auditing practices in India and also based onManagement representations undisputed statutory dues including Provident Fund Employees'state Insurance Dues Income Tax Sales Tax Service Tax Custom Duty Excise Duty VATGoods & Service Tax Act w.e.f. 01.07.2017 Cess and Other material Statutory dues havegenerally been regularly deposited by the Company during the year with the appropriateauthorities in India except tax deducted at source as per Income tax Act. According to theinformation and explanation given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at March 31st 2021 for a period of morethan six months from the date of becoming payable except tax deducted at source as perIncome tax Act.

(B) According to the information and explanations given to us and therecords of the Company examined by us there have been no disputed dues which have notbeen deposited with the respective authorities in respect of Income Tax Service Tax Dutyof Custom Duty of Excise and VAT Goods & Service Tax Act w.e.f. 01.07.2017 as atMarch 31 2021.

viii. According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or borrowings to any financial institution or bank or Government or dues todebenture holders as at the Balance Sheet date.

ix. The Company has not raised any moneys by way of initial publicoffer further public offer (including debt instruments) and term loans during the year.Accordingly the provisions of Clause 3(ix) of the Order are not applicable to theCompany.

x. During the course of our examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

xi. The Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the provisions of Clause 3(xii) of the Order are not applicableto the Company.

xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the Ind AS Financial Statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedunder Section 133 of the Act.

xiv. The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.

xv. According to information and explanation given to us and on thebasis of examination of records of the Company the Company has not entered into any noncash transactions with its directors or persons connected with them. Accordingly theprovisions of Clause 3(xv) of the Order are not applicable to the Company.

xvi. According to information and explanation given to us and on thebasis of examination of records of the Company the Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly theprovisions of Clause 3(xvi) of the Order are not applicable to the Company.

For H.C. GARG & COMPANY
CHARTERED ACCOUNTANTS
FRN:000152C
(MADHUKAR GARG)
PROPRIETOR
M.NO. 070162
Place: Jaipur UDIN : 2107016AAAAAI3074
Date: 03.07.2021

.