Mayur Leather Products Ltd Auditor Reports

To,

The Members of Mayur Leather Products Limited

Report on the Audit of Standalone Financial Statements

Adverse Opinion

We have audited the accompanying Standalone Financial Statements of Mayur Leather Products Ltd ("the Company"), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us because of the significance of the matter discussed in the Basis for Adverse Opinion section of our report, the aforesaid Standalone Financial Statements do not give the information required by the Companies Act, 2013 (the "Act") in the manner so required and does not gives a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026 and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Adverse Opinion

We draw attention to the matters described in Annexure A the effects of which, individually or in aggregate, are material and pervasive to the Standalone Financial Statement and matters where we are unable to obtain sufficient and appropriate audit evidence. The effects of matters described in said Annexure A which could be reasonably determined are quantified and given therein. Our opinion is adverse in respect of these matters as per Annexure-A.

We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in Auditors Responsibilities for Audit of the Standalone Financial Statements for the year ended March 31, 2026, 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 ("the ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements for the year ended March 31, 2026 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 ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our adverse opinion on Standalone Financial Statements.

Material Uncertainty Related to Going Concern

We draw attention to Note no. 47 to the accompanying Statement, which indicates that the Company has earned a net profit after other comprehensive income of Rs. 42.65 lakhs during the quarter ended March 31, 2026 and Rs. 127.37 lakhs during the year ended March 31, 2026. The aforesaid profit is entirely attributable to other income and the Company has not generated any revenue from operations during the current as well as the previous financial year. Further, no manufacturing activities have been carried out during the current as well as the previous financial year. As at March 31, 2026, the Companys accumulated losses amount to Rs. 616.41 lakhs. These conditions together with other matters as described in Note no. 47, indicates the existence of material uncertainties that may cast significant doubt about the Companys ability to continue as a going concern. However, based on managements assessment of future business projections and other mitigating factors as described in the said note, which, inter alia, is dependent on improvement in operations of the Company, settlement with vendors and additional fund infusion by the promoters, the management is of the view that the going concern basis of accounting is appropriate for preparation of accompanying Statement.

Our opinion is not modified in respect of this matter

Emphasis of Matter

We draw attention to Note no. 46 to the standalone financial statements which state that the holding company has transferred to the subsidiary amount of Rs. 213.60 lakhs towards provisional adjustment in respect of the sale of its Land executed by Canara Bank due to holding Companys default in repayment of its loan obligations during the financial year 2022-23 and the consequential sale, in August 2024, of land belonging to its subsidiary, Mayur Global Private Limited, for Rs. 226 lakhs (approx.).

The Company has also challenged the said sale before the Debt Recovery Tribunal (DRT), and the matter is pending adjudication. The final outcome of the DRT proceedings and the consequential financial impact, if any, cannot presently be determined. The final settlement related to above land transaction between the Company and its subsidiary remain pending as on Reporting date.

Our opinion is not modified in respect of this matter.

Information other than the Standalone Financial Statements and Auditors Report thereon

The Companys Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companys annual report, but does not include the financial statements and auditors report thereon. The Companys annual report is expected to be made available to us after the date of this auditors 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 Companys annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the relevant laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The accompanying standalone financial statements have been approved by the Companys Board of Directors. The Companys 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.

In preparing the financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors 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 financial statements.

As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

?€? Identify and assess the risks of material misstatement of the 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 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 managements 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 Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors 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 auditors 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 standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone 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 standalone 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 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 Standalone Financial Statements of the current period and are therefore the key audit matters (if any). We describe these matters in our auditors 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 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.

2. As required by the Companies (Auditors 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 B, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

3. Further to our comments in Annexure C, as required by Section 143(3) of the Act, 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 except matters described in the Annexure A to the Basis of Adverse Opinion paragraph of our report;

b. Except for the effects of the matter described in the Annexure A to the Basis of Adverse Opinion paragraph of our report, 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. Except for the effects of the matter described in the Annexure A to the Basis of Adverse Opinion paragraph of our report, in our opinion, the aforesaid standalone financial statements comply with the IND AS specified under Section 133 of the Act;

e. The matters described in the Basis for Adverse Opinion section, the Material uncertainty related to Going concern section and the Emphasis of Matter section of our report, in our opinion, may have an adverse effect on the functioning of the Company;

f. On the basis of the written representations received from the directors of the Company and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026 from being appointed as a director in terms of Section 164(2) of the Act;

g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on March 31, 2026 and the operating effectiveness of such controls, refer to our separate report in Annexure C wherein we have expressed a modified opinion; and

h. With respect to the other matters to be included in the Auditors 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 pending litigations which could impact its financial position

in note no. 21 & 40 to the standalone financial statements.

ii. There were amounts which were required to be transferred to the Investor Education and Protection Fund by the Company (Refer Annexure-A).

iii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at March 31, 2026.

iv. (a). The management has represented that, to the best of its knowledge and belief, 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, 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 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 subclauses (a) and (b) above contain any material misstatement.

(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. Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2026 which does not has a feature of recording audit trail (edit log) facility.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention. Company has not preserved audit trail for the financial year ended March 31, 2026.

vi. The Company has not declared or paid any dividend during the year ended 31 March 2026.

For Jain Paras Bilala & Company

Chartered Accountants

Firm Registration No.: 011046C

Sd/-

(CA. Piyush Goyal)

Partner

Membership No. 466010 Place: Jaipur Date: 28.05.2026 UDIN:26466010BPYLBL3921

Annexure A - Referred in our Report under "Basis of Adverse Opinion Paragraph"

1. Bank statements not on Records for following Bank accounts:

During the course of audit Company has not provided bank statement and confirmation of the current status of the following bank accounts:

S.No.	Particulars	Amount (in Rs.)
1	PNB New Delhi	553
2	SBBJ ICD Jaipur	71,684
3	MLP Gratuity Fund	10,000
4	Unpaid Dividend account (Various A/c)	4,26,622

In the absence of bank statements and related documents, we are unable to verify the existence, completeness and accuracy of the above bank accounts and consequential impact if any.

2. Continued Recognition of Auctioned Land & Building along with Corresponding Liability and Disposal of Other Fixed Assets:

The Companys borrowings from Canara Bank were classified as Non-Performing Assets (NPA) by the Bank in February 2023 due to non-payment of dues. Subsequently, the Bank auctioned the collateral securities and adjusted the sale proceeds against the outstanding borrowings of the Company.

The Company has challenged the said auction proceedings before the Debt Recovery Tribunal (DRT). Pending the final outcome of the matter, the Company has continued to recognise the amount adjusted by the Bank against the outstanding dues as a liability under "Non-current Borrowings" in the Standalone Balance Sheet. Further, the Company continues to recognise Land & Building amounting to Rs. 155.16 lakhs and continues to charge depreciation/amortization thereon, notwithstanding that such assets were auctioned by Canara Bank pursuant to the classification of the borrowings as NPA.

However, the Company has not provided us with any legal opinion or other sufficient appropriate evidence supporting the continued recognition of the aforesaid assets pending the final adjudication of the matter. Further, in the absence of bank statements relating to the NPA accounts, we were unable to verify the correctness of outstanding borrowing balance recognised by the Company.

It has also been observed that during the financial year ended March 31, 2026, the Company disposed of substantially all of its fixed assets for an aggregate sale consideration of Rs. 166.73 lakhs. However, since these fixed assets were charged to Canara Bank and no no- dues certificate, NOC, or charge satisfaction documents have been provided to us for verification, we are unable to comment on the validity and implications of such disposal and the consequential impact thereof, if any, on the financial statements.

3. Non-transfer of Unpaid Dividend to IEPF (Investor Education and Protection Fund):

As per the provisions of Section 125 of The Companies Act, 2013, the amount which remained unclaimed and unpaid for a period of seven years or more from the date it became due for payment should be transferred to Investor Education and Protection Fund. During the course of audit, we have observed that unclaimed dividend pertaining to FY 2013-14(Final Dividend), 2014-15 (Final & Interim Dividend) & 2015-16 (Final & Interim Dividend) has not been transferred to Investor Education and Protection Fund and also no provision for consequential financial impacts has been made in books of accounts for non-compliance of the Act.

4. Non-disclosure of calculation related to Deferred Tax Liability:

Deferred tax liability amounting to Rs.14.30 lakhs has been recognized in the books of accounts as on March 31, 2026. However, the requisite details outlining the basis for the recognition of such deferred tax liability, including the specific timing differences and corresponding line items to which the liability pertains, have not been provided for our verification.

In the absence of sufficient and appropriate review evidence regarding the composition of the deferred tax liability, we are unable to comment on its reliability or appropriateness of the said liability. We are also unable to determine further creation or reversal of deferred tax during the current financial year.

5. Non-Compliance of IND AS -19 - Employee Benefits:

Company has not complied with valuation methodology as laid down in IND AS -19 as company has failed to provide actuarial valuation of the Gratuity and Leave Encashment payable as required under IND AS-19.

In the absence of such valuation, we are unable to comment on the accuracy and completeness of employee benefit liabilities recognized in the financial statements

6. Expected Credit Loss (ECL) IND AS 109 and No records of confirmations related to Assets & Liabilities:

Company has not provided any balance confirmation of the Trade Receivables amounting Rs. 35.98 lakhs, Loans and advances amounting Rs. 363.09 lakhs, Other Current & Non-Current Assets amounting Rs. 21.91 lakhs, Other financial assets amounting to Rs. 222.30 lakhs, Trade Payables amounting Rs. 220.55 lakhs, Non-Current Borrowings amounting Rs. 370.29 lakhs, Other Financial Liabilities amounting Rs. 10.80 lakhs, Other Current & Non-Current liabilities amounting Rs. 258.49 lakhs.

Therefore, we are unable to comment on the consequential impact of the same if any on the statement because of uncertainty about recoverability of amount from Trade Receivable, Loan and advances & other Current Assets neither there are any confirmations regarding the liabilities standing to the credit for payment to be made as on March 31, 2026.

Due to the prevailing uncertainties regarding the recoverability and settlement of these balances, and in the absence of a formally documented Expected Credit Loss (ECL) policy to

assess the collectability of such balances no ECL has been created on any of these assets, so we are unable to ascertain the potential impact of these factors on the financial statements.

7. Valuation for Investment in Subsidiary company:

The Company holds 13,56,000 equity shares in its subsidiary, Mayur Global Private Limited. However, no fair valuation of this investment has been performed in accordance with the relevant accounting framework, including Ind AS 27 - Separate Financial Statements and Ind AS 113 - Fair Value Measurement. Consequently, we are unable to assess the appropriateness of the carrying value of this investment.

8. Doubtful Recovery of Security deposits:

Company has given security deposits of Rs. 34.75 Lakhs shown as part of Other Non-Current Financial Asset of the Financial Statements. These security deposits were made to different parties such as RIICO, JVVNL or BSNL Etc. These Security deposits were made for different utilities available on the land owned by the company and hypothecated to Canara bank for advance purpose.

This hypothecated land has been sold by Canara Bank through auction process after company was declared NPA by the bank. Also, company has not made payment of its dues to these parties, so there arises uncertainty about its recoverability and no provision regarding the same has been made by the company.

Given these circumstances, and the absence of any provision, the recognition of these deposits appears to be inconsistent with the requirements of Ind AS regarding impairment and asset recoverability.

9. Valuation of Inventory & Physical Verification:

Company is not having any records which shows that inventories has been physically verified by the management.

In the absence of physical verification and related records, we are unable to comment on the accuracy, completeness, and valuation of inventory balances of Rs. 67.35 Lakhs reported in the financial statements as at the reporting date.

10. Non reconciliation for amount appearing under the head Accrued Interest:

The financial statements contain Accrued Interest on FDR amounting Rs. 1.32 Lakhs under other current financial assets. This FDR was issued for BG Limit but no confirmation & current status has been received from the Canara Bank regarding the same. Also, no FDR is shown in books of accounts of the company as on March 31, 2026.

ANNEXURE-B: THE ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT ON "OTHER LEGAL AND REGULATORY REQUIREMENTS" TO THE MEMBERS OF MAYUR LEATHERS PRODUCTS LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2026

In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

(i) (a) (A) The Company has not maintained proper records showing full particulars,

including quantitative details and situation of property, plant and equipment and right of use assets.

(B) The Company has not maintained proper records showing full particulars of Intangible assets. Further, during the year, the Company has disposed of all its Intangible Assets under Development.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Property Plant and Equipment have not been physically verified by the management during the year. Further, the company does not have a programme for physical verification of its Property, Plant and Equipment.

It was further observed that during the year ended March 31, 2026, the Company disposed of substantially all of its Property, Plant and Equipment for an aggregate sale consideration of Rs. 166.73 lakhs. However, as these assets were charged to Canara Bank and the Company has not provided us with the no-dues certificate, no-objection certificate (NOC), charge satisfaction documents, or any other evidence indicating that the Bank had released its charge or consented to the sale, we are unable to comment on the validity of such disposal and its consequential impact, if any, on the accompanying financial statements.

(c) According to the information and explanations given to us and based on our examination of the records of the Company, the title deeds of the following immovable properties disclosed in the financial statements are not held in the name of the Company as at March 31, 2026:

Relevant Line Item in the Balance Sheet	Description of item of property	Carrying Value of the asset (Rs. in lakhs)	Title deeds held in the name of	Whether title deed holder is a promoter, director or their relative	Property held since which date	Reason for not being held in the name of the company
Property Plant and Equipment	Land & Building	114.93	Canara Bank/ Auction Buyer	No	February 2023	The said properties had been mortgaged with the Bank as collateral security and were subsequently
						auctioned by the Bank.
Right-of- use Asset	Land & Building	40.23	Canara Bank/ Auction Buyer	No	February 2023	The said properties had been mortgaged with the Bank as collateral security and were subsequently auctioned by the Bank.

The Companys borrowings from Canara Bank were classified as NonPerforming Assets (NPA) in February 2023 due to defaults in repayment of borrowings. Pursuant thereto, the Bank auctioned the mortgaged properties and appropriated the sale proceeds towards the outstanding dues of the Company. The Company has challenged the auction proceedings before the Debt Recovery Tribunal (DRT).

Pending the final adjudication of the matter, the Company has continued to recognise the aforesaid Land & Building (including Right-of-Use assets) amounting to Rs. 155.16 lakhs in its financial statements and has continued to charge depreciation/amortisation thereon. The Company has also continued to recognise the amount adjusted by the Bank against the outstanding dues as part of its non-current borrowings.

However, the Company has not provided us with any legal opinion or other sufficient appropriate audit evidence supporting the continued recognition of the aforesaid assets pending the final outcome of the litigation. Further, in the absence of bank statements and other relevant confirmations relating to the NPA accounts, we were unable to verify the correctness of the outstanding borrowings recognised by the Company.

(d) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not revalued its Property, Plant and Equipment (including Right-of-Use assets) or intangible assets during the year.

(e) According to the information and explanations given to us and based on the written representations provided by the management, no proceedings have been initiated or are pending against the Company as at March 31, 2026 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended), and the rules made thereunder.

(ii) (a) According to the information and explanations given to us and based on our examination of the records of the Company, the management has not carried out physical verification of inventories during the year, and the Company has not maintained any records evidencing such physical verification.

(b) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, at any point of time during the year from banks or financial institutions on the basis of security of current assets. Accordingly, the reporting requirements under clause 3(ii)(b) of the order are not applicable to the company.

(iii) (a) According to the information and explanations given to us and based on our examination of the records of the Company, during the year the company has not provided loans or advances in the nature of loans, or stood guarantee, or provided security to any other entity. Accordingly, the reporting requirements under clause 3(iii)(a)(A) & (B) of the order are not applicable to the company.

(b) According to the information and explanations given to us and based on our examination of the records of the Company, the terms and conditions of the loans amounting Rs. 11.05 lakhs as disclosed in Note No. 11 to the standalone financial statements are, prima facie, prejudicial to the interest of the Company, as such loans have been granted on an interest-free basis and the repayment has been long outstanding with no recoveries.

(c) According to the information and explanations given to us and based on our examination of the records of the Company, in respect of the loans disclosed in Note No. 11 to the standalone financial statements the schedule of repayment of principal and payment of interest has been stipulated. However, all these loans have remained outstanding for a prolonged period with irregular recoveries.

(d) According to the information and explanations given to us and based on our examination of the records of the Company, there are cases where amounts have been overdue, amounting to Rs. 363.09 lakhs. Based on the fact that the Company has recovered Rs. 14.00 lakhs from these accounts during the year and the representations received from the Management; the company is following up with the parties for recovering the amount due. However, considering the significant amount outstanding, the recovery process needs to be expedited.

(e) According to the information and explanations given to us and based on our examination of the records, the Company has not granted any fresh loans or advances in the nature of loans to any party for settling the overdue loans or advances during the year.

(f) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not granted any loans to parties without specifying any terms or period of repayment. Further, no loans have been granted by the company that are repayable on demand.

(iv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans granted and investments made, as applicable. The Company has not provided any guarantees or security during the year.

(v) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not accepted any deposits or amounts which are deemed to be deposits from the public within the meaning of the provisions of Sections 73 to 76 of the Companies Act, 2013 and the rules made thereunder. Accordingly, the reporting requirements under clause 3(v) of the Order are not applicable.

(vi) According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Companies Act, 2013 in respect of the Companys business activities. Accordingly, the reporting requirements under clause 3(vi) of the of the Order are not applicable.

(vii) (a) Undisputed statutory dues, including goods and services tax, provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues applicable to the Company have not been deposited with the appropriate authority. Refer Note no. 27 (statutory liabilities) of the financial Statements.

There were no undisputed amounts payable in respect of goods and services tax, provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues in arrears as at 31st March, 2026 for a period of more than six months from the date they became payable except as stated below.

Nature of the Statute	Nature of Dues	Amount (Rs.)	Period to which Amount relates	Due date	Date of Payment
Income Tax Act, 1961	Tax deducted at source	30,73,166.66	Multiple Y ears	Multiple dates	Not paid
Employees\u2019 Provident Funds and Miscellaneous Provisions Act, 1952	Employees\u2019 Provident Fund	4,93,642.00	Multiple Years	Multiple dates	Not paid
Employees State Insurance Act, 1948	Employees State	70,425.00	Multiple Y ears	Multiple dates	Not paid

(b) According to the information and explanations given to us, we report that there are no statutory dues referred in sub-clause (a) which have not been deposited with the appropriate authorities on account of any dispute except for the following:

Name of the Statute	Nature of the Dues	Amount (Rs.)	Period to which the amount relates	Forum where dispute is pending
Goods and Services Tax Act, 2017	Goods and services tax	21,01,576	Apr 2018 to Mar 2019	First Appellate authority (Additional Commissioner GST)
Goods and Services Tax Act, 2017	Goods and services tax	31,47,739	Apr 2019 to Mar 2020	First Appellate authority (Additional Commissioner GST)
Goods and Services Tax Act, 2017	Goods and services tax	3,41,232	Apr 2018 to Mar 2022	First Appellate authority (Additional Commissioner GST)
Income Tax Act,	Tax deducted	40,405.94	Multiple Years	Traces
1961	at source

(viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.

(ix) (a) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has defaulted in the repayment of loans or other borrowings and in the payment of interest thereon to its lender. The details of such defaults are as follows:

Nature of borrowing including debt securities	Name of lender	Amount unpaid on the due date	Whether interest or principal	Number of days of delay or unpaid	Auditor\u2019s remarks, if any
Cash Credit / Packing Credit/Term Loan	Canara Bank	Refer note no. 21A & 22B

(b) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not been declared a wilful defaulter by any bank or financial institution or other lender during the year.

However, as represented by the management and based on the records made available to us, the borrowings of the Company from Canara Bank have been classified as Non-Performing Assets (NPA).

(c) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has used the amount of the term loan for the purpose for which loan is obtained.

(d) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that no funds raised on short-term basis have been used for long term purposes by the Company.

(e) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries or associates.

(f) Based on the written representations provided by the management and our examination of the records of the Company, the Company has not raised any loans during the year by pledging securities held in its subsidiaries, joint ventures or associate companies.

(x) (a) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). Accordingly, reporting under clause 3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, reporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) Based on the written representations provided by the management, no fraud by the Company or on the Company has been noticed or reported during the year.

(b) During the year no report under sub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) Based on the written representations provided by the management, there are no whistle blower complaints received by the Company during the year.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, reporting under clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us, transactions entered into by the Company with the related parties are in compliance with sections 177 and 188 of the Act, where applicable. Further, the details of such related party transactions have been disclosed in the financial statements, as required by the Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified in Companies (Indian Accounting Standards) Rules 2015 as prescribed under section 133 of the Act.

(xiv) (a) In our opinion, and according to the information and explanations given to us during the course of the audit, the Company has an internal audit system that commensurate with the size and nature of its business.

(b) We have considered the audit report of the Company issued by the internal auditor for the period under audit.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi)(a) of the Order is not applicable.

(b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi)(b) of the Order is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, reporting under clause 3(xvi)(c) of the Order is not applicable.

(d) Based on the information and explanations given to us and as represented by the management of the Company, the Group (as defined in Core Investment Companies (Reserve Bank) Directions, 2016) does not have any CIC.

(xvii) The Company has not incurred cash losses during the financial year ended March 31, 2026. However, the Company had incurred cash losses of Rs. 145.43 lakhs during the immediately preceding financial year ended March 31, 2025.

The effect of the matters described in Annexure A to the Basis for Adverse Opinion section of our Independent Auditors Report, in respect of which we are unable to determine the consequential impact, if any, due to the absence of sufficient appropriate audit evidence, has not been considered while reporting the cash losses under this clause.

(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, reporting under clause 3(xviii) of the Order is not applicable.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information in the standalone financial statements, our knowledge of the plans of the Board of Directors and management and based on our examination of the evidence supporting the assumptions, in our opinion, a material uncertainty exists as on the date of the audit report indicating that Company may not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. Further, refer Material Uncertainty related to Going Concern section of our audit report.

(xx) The Company does not fulfill the criteria as specified under section 135(1) of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 and accordingly reporting under clause 3(xx) of the Order is not applicable to the Company.

For Jain Paras Bilala & Company

Chartered Accountants

Firm Registration No.: 011046C

Sd/-

CA. Piyush Goyal Partner

Membership No.: 466010 UDIN: 26466010BPYLBL3921 Place: Jaipur Date: 28.05.2026

Tirupur (TN), Dibrugarh (Assam), Kota, Jodhpur

ANNEXURE -C TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENT OF MAYUR LEATHER PRODUCTS LIMITED FOR THE YEAR ENDED MARCH 31, 2026

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to the standalone financial statements of Mayur Leather Products Limited ("the Company") as of March 31, 2026 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Responsibilities of Management and Those Charged with Governance for Internal Financial Controls

The Companys Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control with reference to the standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility for the Audit of the Internal Financial Controls with Reference to Financial Statements

Our responsibility is to express an opinion on the Companys internal financial controls with reference to the financial statements based on our audit. W e conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by the Institute of Chartered Accountants of India ("ICAI") and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, and the Guidance Note issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to the financial statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to the financial statements and their operating effectiveness. Our audit of internal financial controls with reference to the financial statements included obtaining an understanding of internal financial controls with reference to the financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our adverse opinion on the Companys internal financial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A companys internal financial control with reference to the financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to the financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Adverse Opinion

According to the information and explanations given to us and based on our audit, the following material weaknesses in the operating effectiveness of the Companys internal financial controls with reference to financial statements as at March 31, 2026:

(i) The Company did not have adequate internal financial controls for obtaining periodic balance confirmations from debtors, creditors, lenders and other parties, nor were adequate controls established for periodic assessment of recoverability of financial assets in accordance with the Expected Credit Loss (ECL) model prescribed under Ind AS 109.

(ii) The Company did not have adequate controls for maintaining complete records of Property, Plant and Equipment and for periodic physical verification of such assets. No programme for physical verification of Property, Plant and Equipment was maintained and substantially all Property, Plant and Equipment including ROU Asset having an aggregate sale consideration of Rs. 166.73 lakhs were disposed of during the year without the Company providing documents of release

of the charge, no-dues certificate, NOC or charge satisfaction documents from Canara Bank.

(iii) The Company did not have adequate controls for periodic physical verification of inventories and for maintaining records evidencing such verification. Accordingly, there was no effective control to establish the existence and completeness of inventory of Rs. 67.35 lakhs reported as at March 31, 2026 and to identify differences, if any, between physical quantities and the quantities recorded in the books.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control with reference to the financial statements, such that there is a reasonable possibility that a material misstatement of the companys annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, because of the material weaknesses described as above on the achievement of the objectives of the control criteria, the Company has not maintained adequate internal financial controls with reference to financial statements as at March 31, 2026, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI the Companys internal financial controls with reference to financial statements were not operating effectively as at March 31, 2026.

We have considered the material weakness identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the standalone financial statements of the Company as at and for the year ended March 31, 2026, and the material weaknesses have affected our opinion on the standalone financial statements of the Company and we have issued an adverse opinion on the standalone financial statements.

For Jain Paras Bilala & Company

Chartered Accountants

Firm Registration No.: 011046C

Sd/-

CA. Piyush Goyal

Partner

Membership No.: 466010 UDIN: 26466010BPYLBL3921 Place: Jaipur Date: 28.05.2026