1. We have audited the accompanying Standalone Financial Statements of Mayur Uniquoters Limited ('the Company'),
which comprise the Balance Sheet as at 31 March 2025, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then
ended, and notes to the Standalone Financial Statements, including material accounting policy information and
other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Standalone 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 ('Ind AS') specified
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other
accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2025, and its
profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Standalone 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 ethical requirements
that are relevant to our audit of 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 these requirements and the
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matter
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of
the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
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Key audit matter
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How our audit addressed the key audit matter
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1. Recoverability of carrying value of assets of the
cash generating unit ("CGU') Gwalior Plant
Refer to the Company's material accounting policies
in note 1 (h) and the property, plant and equipment
related disclosures in note 46 of the Standalone
Financial Statements.
The Company has considered its property, plant and
equipment, inventory, trade receivables and other
attributable assets and liabilities of the Gwalior Plant
as a single CGU. As at 31 March 2025, carrying value of
CGU is Rs. 10,142.39 lakhs.
During the current and previous years, the CGU has
incurred operating losses and the economic
performance of this CGU has been significantly lower
than the budgets. Since, the recoverability of the CGU
is largely dependent upon the operational performance
of the aforesaid CGU, there is a potential risk of
impairment charge in accordance with Ind AS 36,
Impairment of assets ('Ind AS 36') not being recognised
by the management because of anticipated business
performance of the CGU.
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Our audit procedures included, but were not limited to the
following:
• Obtained an understanding of the management's
process for identification of impairment indicators and
process undertaken by the management for
impairment assessment. Assessed whether the
methodology used by the management to estimate
the recoverable value of the CGU is in accordance
with Ind AS 36;
• Evaluated the design, implementation and tested the
operating effectiveness of key controls placed around
the impairment assessment process of the
recoverability of the CGU. These included controls
around estimation of recoverable value of assets, the
process by which such information was produced;
• Obtained the management experts' report on
recoverable value and assessed the professional
competence and objectivity of such external valuation
expert engaged by the management for performing
the required valuation to estimate the recoverable value
of the CGU;
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Key audit matter
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How our audit addressed the key audit matter
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Due to presence of such impairment indicators, the
Company has assessed the recoverability (fair value)
of the property, plant & equipment ('PPE') having
carrying values of Rs. 7,454.21 lakhs for CGU as at 31
March 2025 with the help of an external valuation expert
using the reproduction cost method (indexation
method) under cost approach for PPE (other than land
and building) and sales comparison method under
market approach for land and building as per Ind AS
36. Remaining carrying values of CGU of Rs. 2,688.18
lakhs, majorly includes Inventory of Rs. 1,031.59 lakhs
and GST input of Rs. 948.21 lakhs are recoverable
with no impairment risk as per management
assessment.
Such valuation model requires management to make
significant estimates and assumptions related to
selection of the discount rates, estimated future life
and market values of property to be considered for
impairment testing as per Ind AS 36.
Considering the materiality of the amounts involved,
significant degree of judgement and subjectivity
involved in the estimates and key assumptions used
in determining the recoverable value used in the
impairment evaluation which are inherently subjective,
we have determined recoverability of Gwalior Plant as
a key audit matter as this involved significant auditor
attention in the current year.
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• Obtained the property, plant and equipment register of
the Company for the identified CGU and reconciled the
gross book value, net book value and other details of
PPE used for valuation with the PPE register shared by
the management of the Company to us;
• Assessed the reasonableness of the assumption used
for the discount rates, estimated future life and market
values of property and considered evidence available
to support these assumptions in light of our
understanding of the business.
• With the support of our auditor's experts, we evaluated
the appropriateness of valuation methodology and
reasonableness of assumptions used by the
management's expert;
• Compared the carrying value of net assets with the
recoverable value to check for any impairment/ provision
required to be recognised; and
• Evaluated the appropriateness and adequacy of the
disclosures made by the management in the
Standalone Financial Statements in accordance with
applicable Accounting Standards.
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2. Revenue recognition
Refer note 1 (d) to the accompanying Standalone
Financial Statements for significant accounting policy
on revenue recognition and note 25 for the details of
revenue recognised during the year.
The Company derives its revenue from sale of products
(PU/PVC synthetic leather).
The Company recognizes revenue from sale of goods
upon the transfer of control of the goods sold to the
customer in accordance with Ind AS 115, Revenue from
Contracts with Customers ('Ind AS 115'). The Company
uses a variety of shipment terms across its operating
markets, and this has an impact on the timing of revenue
recognition. Further, the revenue is recorded based on
the prices specified in the respective contracts, net of
estimated volume discounts and returns at the time of
sale. Such estimates are derived based on historical
experience of the Company.
Owing to the significance of amount, volume of
transactions, size of distribution network, customers
with varied terms of shipment, fraud risk in our audit
strategy, we have considered revenue recognition as a
key audit matter.
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Our audit procedures included the following:
• Understood the process of revenue recognition and
evaluated the appropriateness of the accounting policy
adopted by the management on revenue recognition
including determination of transaction price and
satisfaction of performance obligations, in accordance
with Ind AS 115;
• Evaluated the design and tested operating
effectiveness of key controls around revenue
recognition for a sample of transactions;
• Performed substantive testing, on a sample basis, on
revenue transactions recorded during the year, and
transactions recorded before and after year end by
inspecting supporting documents such as customer
contracts, purchase orders, proofs of dispatch and
delivery, invoices, etc., including review of contracts with
customers to assess the appropriateness of
Company's identification of performance obligations,
determination of transaction price and the
management's estimate involved for volume discounts
and returns to ensure the accuracy and completeness
of revenue recorded;
• Performed substantive analytical procedures for the
revenue recorded considering both qualitative and
quantitative factors to identify any unusual trends or any
unusual items; and
• Evaluated the adequacy of disclosures made in the
accompanying Standalone Financial Statements in
respect of revenue recognition in accordance with
financial reporting framework.
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Information other than the Standalone Financial Statements and Auditor's Report thereon
6. The Company's Board of Directors are responsible for the other information. The other information comprises the
information included in the Annual Report but does not include the Standalone Financial Statements and our
auditor's report thereon. The Annual Report is expected to be made available to us after the date of this auditor's
report.
Our opinion on the Standalone Financial Statements does not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the Standalone Financial Statements, or our knowledge obtained in the audit or otherwise appears
to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7. The accompanying Standalone Financial Statements have been approved by the Company's Board of Directors.
The Company's Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to
the preparation and presentation of these Standalone Financial 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 Ind AS specified under section 133 of the Act 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 of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the Standalone Financial Statements, the Board of Directors is responsible for assessing the Company's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
9. The Board of Directors is also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
10. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due 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 an audit conducted in
accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these Standalone Financial
Statements.
11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control 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 with reference to financial statements
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 Board of Directors' 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 Standalone 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; and
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial Statements represent the underlying transactions and
events in a manner that achieves fair presentation.
12. 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.
13. 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.
14. From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the Standalone Financial Statements of the current period 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
15. As required by section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to
its directors during the year in accordance with the provisions of and limits laid down under section 197 read with
Schedule V to the Act.
16. As required by the Companies (Auditor's Report) Order, 2020 ('the Order') issued by the Central Government of
India in terms of section 143(11) of the Act we give in the Annexure A a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
17. Further to our comments in Annexure A, 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 of the accompanying Standalone Financial Statements;
b) Except for the matter stated in paragraph 17(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014 (as amended), 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 Standalone Financial Statements dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid Standalone Financial Statements comply with Ind AS specified under section 133
of the Act;
e) On the basis of the written representations received from the directors and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2025 from being appointed as a director in terms
of section 164(2) of the Act;
f) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated
in paragraph 17(b) above on reporting under section 143(3)(b) of the Act and paragraph 17(h)(vi) below on
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);
g) With respect to the adequacy of the internal financial controls with reference to financial statements of the
Company as on 31 March 2025 and the operating effectiveness of such controls, refer to our separate report in
Annexure B wherein we have expressed an unmodified opinion; and
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, as detailed in note 36 to the Standalone Financial Statements, has disclosed the impact of
pending litigations on its financial position as at 31 March 2025.;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses as at 31 March 2025.;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company during the year ended 31 March 2025;
iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed in note
50 (ii) (A) to the Standalone Financial Statements, no funds have been advanced or loaned or invested
(either from borrowed funds or securities premium or any other sources or kind of funds) by the
Company to or in any person(s) or entity(ies), including foreign entities ('the intermediaries'), with the
understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company ('the Ultimate Beneficiaries') or provide any guarantee, security or the like on
behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed in note
50 (ii) (B) to the Standalone Financial Statements, no funds have been received by the Company from
any person(s) or entity(ies), including foreign entities ('the Funding Parties'), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the management
representations under sub-clauses (a) and (b) above contain any material misstatement.
v. The final dividend paid by the Company during the year ended 31 March 2025 in respect of such dividend
declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment
of dividend.
As stated in note 44 to the accompanying Standalone Financial Statements, the Board of Directors of the
Company have proposed final dividend for the year ended 31 March 2025 which is subject to the approval
of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with
section 123 of the Act to the extent it applies to declaration of dividend.
vi. As stated in note 47 to the Standalone Financial Statements and based on our examination which included
test checks, except for instance mentioned below, the Company, in respect of financial year commencing
on 1 April 2024, has used an accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant
transactions recorded in the software. Further, during the course of our audit we did not come across any
instance of audit trail feature being tampered with, other than the consequential impact of the exception
given below. Furthermore, except for instance mentioned below the audit trail has been preserved by the
Company as per the statutory requirements for record retention
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Nature of exception noted
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Details of exception
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Instances of accounting software for maintaining books
of account for which the feature of recording audit trail
(edit log) facility was not operated throughout the year for
all relevant transactions recorded in the software.
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The audit trail feature was not enabled at the
database level for accounting software to log
any direct data changes, used for maintenance
of all accounting records by the Company.
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For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Tarun Gupta
Partner
Membership No.: 507892
UDIN: 25507892BMNSLE8701
Place: Jaipur
Date: 08 May 2025
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