Mayur Leather Products Ltd Auditor Reports

To,

The Members

MAYUR LEATHER PRODUCTS LTD

Report on the 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, 2025, 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, 2025 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 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 Results for the year ended March 31, 2025, 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 Results for the year ended March 31, 2025 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. 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. Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

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.

In preparing the financial statements, management 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 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 Company s 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 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 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 management s 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 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.

? 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 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.

Other Matters

1. Company has following Statutory dues unpaid as on 31.03.2025:

- Provident Fund payable amounting to Rs. 5,82,620/-

- TDS Payable Rs. 29,90,640/-

- ESI Payable Rs. 70,425/-

2. Company is not classifying its creditors under classification as prescribed under the MSME Act. So we cannot comment upon the liability if any may arise in future on the company under the said act.

3. Company was declared NPA by CANARA Bank in Feb. 2023.

4. Company s application for revocation of suspension in trading has been approved by BSE before signing of this report.

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 (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 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 stated in Annexure A on the Basis of Adverse Opinion.

b. 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 subject to matters stated in Annexure A on the Basis of Adverse Opinion.

c. Except matters stated in Annexure A on the Basis of Adverse Opinion the Balance

Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion, the aforesaid standalone financial statements comply with the IND AS specified under Section 133 of the Act, subject to matters stated in Annexure A on the Basis of Adverse Opinion.

e. On the basis of the written representations received from the directors of the Company as on March 31, 2025, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure C. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company s internal financial controls with reference to financial statements.

g. With respect to the other matters to be included in the Auditor s report in accordance with Rule 11 of the Companies (Audit and Auditor s) 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 does not have any pending litigations which would impact its financial position except the following cases:

a) Suspension & Revocation matter:

? The Board of Directors of the Company, with the approval of shareholders obtained at the 37th Annual General Meeting held on February 22, 2023, resolved to initiate the Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. Subsequently, the

Company s account was classified as a Non-Performing Asset (NPA) by Canara Bank, which issued notices under the provisions of the SARFAESI Act, 2002.

These actions culminated in the auction of the Company s properties in accordance with statutory procedures.

? Furthermore, the Bombay Stock Exchange (BSE) suspended the trading of the Company s securities on June 12, 2023, citing non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations. A show-cause notice for compulsory delisting was issued on March 18, 2024, followed by a public notice on May 4, 2024, intimating the proposed delisting. The Company subsequently sought a hearing with the BSE Delisting Committee on June 24, 2024, requesting the revocation of the suspension and a reconsideration of the delisting decision, while committing to address all instances of non-compliance. The BSE has granted the Company permission to complete all necessary compliances by December 22, 2024, as a prerequisite to revoking the suspension of trading in the Company s securities.

? In response to these challenges, the Board has engaged strategic planners to formulate a comprehensive revival strategy. This plan focuses on withdrawing the CIRP application, repaying outstanding debts to creditors, and achieving full compliance with regulatory requirements under the Companies Act, 2013, and BSE listing obligations. The proposed measures aim to address past discrepancies, ensure adherence to applicable laws, and position the Company for sustainable financial and operational recovery.

? Company s application for revocation of suspension in trading has been approved by BSE before signing of this report.

b) Declaration of NPA by bank & appeal challenging the Auction process:

? The Company was declared NPA by the Canara bank during the month of Feb. 2023 for non-payment of bank borrowings. After declaration of NPA by the bank, bank decided to sale the collateral security of the company.

? As per Company, the Bank had auctioned company s properties without considering the IA filed with DRT by the company. Company had filed IA to cancel the auction done at undervalued price by the Bank. ? The Company has filed an appeal challenging the auction process initiated by Canara Bank and is pursuing appropriate legal remedies.

ii. There were amounts which were required to be transferred to the Investor

Education and Protection Fund by the Company (Refer Annexure-A).

iii. 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 sub-clauses (a) and (b) above contain any material misstatement.

iv. Based on our examination, the Company has used accounting softwares for maintaining its books of account for the financial year ended March 31, 2025 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, 2025.

v. The Company has not declared or paid any dividend during the year ended 31 March 2025.

For Jain Paras Bilala & Company

Chartered Accountants

Firm Registration No. 011046C

Sd/-

(CA. Piyush Goyal)

Partner

Membership No. 466010

Place: Jaipur

Date: 14.08.2025

UDIN: 25466010BMGYFU9775

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	IDFC First Loan	(7,36,083)
5	Unpaid Dividend account (Various A/c)	4,26,622
6	Canara Bank Loan account	43,00,000

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. 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.

3. 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 in previous financial years. 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 audit 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.

4. Uncertainty on Going Concern:

Company is incurring operating losses from last few years and also during the current FY 2024-25. There is no sale and purchase and manufacturing activity done by company in current as well in last FY except for sale of old fixed Assets.

All Plant, property and Equipment have been relocated to another location being land on which these PPE are situated have been detached by CANARA Bank and furthermore this land have sold through auction by the bank.

The company has also not filed its Income Tax Return for the previous FY 2022-23 and onwards.

These factors indicate the existence of material uncertainties that may cast significant doubt on the Companys ability to continue as a going concern, as required to be evaluated and disclosed under Ind AS 1 Presentation of Financial Statements

5. Impairment of PPE Ind AS 36

The Company has not performed an impairment assessment for its Property, Plant and Equipment (PPE) as required under Ind AS 36 Impairment of Assets. All Plant, property and Equipment have been relocated to another location being land on which these PPE are situated have been detached by CANARA Bank and furthermore this land have sold through auction by the bank. Company has moved to DRT challenging auction process of bank. Although because of case pending at DRT, PPE amounting to Rs. 183.19 Lakhs as on 31.03.2025 is shown under PPE Note no. 6(a) of financial statements and borrowing against hypothecation of these PPE is shown under note no. 19 and 21 of financial statements.

6. 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 INDAS-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

7. 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- Note no.

8 & 12 (Rs. 35.98 Lacs)., Loans and advances- Note No 15 (Rs. 371.90 Lacs), Other Current & Non Assets- Note no. 9 & 16 (Rs. 258.37 Lacs), Trade Payables- Note No.- 23A/B (Rs. 303.43 Lacs), Borrowings- Note No. 22 (Rs. 52.32 Lacs), Other Financial Liabilities Note 24A/B (Rs. 120.47 Lacs), Other Current Liabilities Note no. 25A/B (Rs. 248.52 Lacs). 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 31.03.2025. 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. It has been noticed that some parties were given loan/advances on interest free basis as mentioned in Note no. 15.

8. 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.

9. Doubtful Recovery of Security deposits-

Company has shown security deposits of Rs. 34.75 Lakhs in Note No. 9 of 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.

10. Valuation of Inventory & Physical Verification-

Company is not having any records which shows that inventories has been physically verified by the management neither they have provided us the access to verify the same during the course of audit. 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 Lacs (Note 11) reported in the financial statements as at the reporting date.

11. Non reconciliation for amount appearing under the head Accrued Interest-

Attention is required to be made to Note No. 16 (Rs. 1.32 Lacs) of Financial Statements, where company has booked Accrued Interest on FDR. 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 31.03.2025.

12. Written Off of Liabilities and Assets during the Year-

The company after analyzing its payables liabilities in balance sheet has written off Rs.180.10 Lacs and receivables of Rs. 6.16 Lacs. The management has represented that these balances were long outstanding, not recoverable/payable, and accordingly, no longer required to be carried in the books of accounts. The write-off has been carried out through the Statement of Profit and Loss under appropriate heads but in absence of specific document for communication with parties we are unable to comment on consequential financial impacts of the same.

Annexure-B: The Annexure referred to in paragraph 2 of Our Report on Other Legal and Regulatory Requirements of even date to the members of Mayur Leathers Products Limited on the standalone financial statements for the year ended 31 March 2025

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:

Property Plant & Equipment and Intangible Assets:

(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, hence we are unable to comment on the same.

(b) The Property, Plant and Equipment have not been physically verified by the management during the year.

(c) As on 31st March 2025, all title deeds of immovable properties are held in the name of Canara Bank. Company was declared NPA by the Canara Bank during the month of Feb. 2023 for non-payment of bank borrowings. After declaration of NPA by the bank, bank decided to sale the collateral security of company and same was done at below dates:

? In the Month of November, 2023 the canara bank had Auctioned Land situated at G-1-29 at Manpura RIICO Industrial Area Measuring 1222 Sq Mtr at Rs 35 Lacs.

? In the Month of February, 2024 the bank had Auctioned Landwith Shed situated at H-1-24 at Manpura RIICO Industrial Area Measuring 1980 Sq Mtr at Rs 119.31 Lacs.

? As per Company, the Bank had Auctioned these property without considering the IA filed with DRT by Company. Company had filed IA to cancel the auction done at undervalued price by the Bank. Company has filed an appeal against the auction of land by Canara Bank. So amount received against auction from the Bank is treated as Payables.

(d) The Company has not revalued its Property, Plant and Equipment and Right of Use assets or intangible assets during the year.

(e) No proceedings have been initiated or are pending against the Company as at 31 st March 2025 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Inventory:

(ii) (a) No physical verification of inventory has been conducted during the year as informed by the management. However, mere absence of documents & procedures, we are unable to comment on the same.

(b) The Company has not been sanctioned working capital limits in excess of 5 crore, in aggregate, at any points of time during the year, from banks or financial institutions on the basis of security of current assets and hence reporting under clause 3(ii)(b) of the Order is not applicable.

Loans, Investments, Guarantee and Security:

(iii) (a)The Company has not provided new loans/ advances to others during the current year.

(b) In our opinion, and according to the information and explanations given to us during the course of the audit, the investments made and terms and conditions of the grant of all loans are, prima facie, not prejudicial to the interest of the Company, except for interest free loans to some parties. Further the Company has not provided any guarantees, advances in the nature of loans or given any security. -

Please refer note no. 15 of the Financial Statements

(c) In our opinion, and according to the information and explanations given to us during the course of the audit, in respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments/receipts of principal and interest are outstanding. In respect of advance in the nature of loans granted by the Company, the schedule of repayment of principal has been stipulated and the repayment of principal is outstanding. -

Please refer note no. 15 of the Financial Statements .

(d) There is overdue amount in respect of loans granted to such companies or other parties. - Please refer note no. 15 of the Financial Statements.

(e) The Company has not granted no fresh loans to any party to settle the overdue loans/advances in nature of loan.

(f) The Company has not granted loans which are repayable on demand.

Loan to directors

(iv) According to the information and explanations given to us, the Company has complied with the provisions of sections 185 and 186 of the Act in respect of loans and investments as applicable. There are no guarantees or security given by the Company.

Deposits accepted

(v) The Company has not accepted any deposits or there is no amount which has been considered as deemed deposit within the meaning of sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, reporting under clause 3(v) of the Order is not applicable to the Company.

Maintenance of costing records

(vi) In our opinion, and according to the information and explanations given to us during the course of the audit, the Central Government has not specified maintenance of cost records under sub-section (1) of section 148 of the Act, in respect of Companys business activity. Accordingly, reporting under clause

3(vi) of the Order is not applicable.

Deposit of statutory liabilities

(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 by with the appropriate authority. Refer Note no. 25B (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, 2025 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	Period to which Amount relates	Due date	Date of Payment
TDS (Direct Tax)	TDS	29,90,640 .00	Multiple Years till 2025	-	-
Provident Fund	PF	5,82,620. 00	Multiple Years till 2025	-	-
ESI	ESI	70,425.00	Multiple Years till 2025	-	-

Note: In addition to above amount of taxes unpaid, we have observed the following demand against which no action has been taken till signing of this report: ? Traces Rs. 1,66,989.51 ? GST Rs. 21,01,576.00

(b) There is no statutory dues referred to in sub-clause (a) that have not been deposited on account of any dispute except following : (if applicable) :

Nature of the Statute	Nature of Dues	Amount	Period to which Amount relates	Due date	Date of Payment
		No such case

Unrecorded income

(viii) In our opinion, and according to the information and explanations given to us during the course of the audit, no transactions were surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) which have not been recorded in the books of accounts.

Default in repayment of borrowings

(ix) (a) In our opinion and according to the information and explanations given by the management, we are of the opinion that the company has defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender. Please refer note no. 20 & 22 of Financial Statements.

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. 20 & 22

(b) We report that the Company has been declared a willful defaulter/NPA by Canara bank or financial institution or other lender. (c) Company has used the amount of bank overdraft for the purpose for which loan is obtained. (d) Funds raised on short term basis have not been utilized for long term purposes. (e) 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) The company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

Funds raised and utilization

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

(b) The Company has not made any preferential allotment or private placement of shares or (fully, partially or optionally) convertible debentures during the year. Accordingly, reporting under clause 3(x) (b) of the Order is not applicable to the Company.

Fraud and whistle-blower complaints

(xi) (a) No fraud by the Company or on the Company has been noticed or reported during the period covered by our audit.

(b) No report under section 143(12) of the Act has been filed with the Central Government for the period covered by our audit.

(c) There are no whistle-blower complaints received by the Company during the year.

Compliance by a Nidhi Company

(xii) The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, reporting under this clause is not applicable to the Company.

Related Party

(xiii) All 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 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.

Internal audit system

(xiv) In our opinion, and according to the information and explanations given to us during the course of the audit

(a) The company does have an internal audit system but for current year we have not been provided with internal audit report, hence in absence of internal audit report, we are unable to comment on the same. (b) As per requirement of Sec. 138 of the Act read with Rule 13(1) of the Companies (Accounts) Rules 2014, the company is required to appoint internal Auditor but for current year no such details made available regarding appointment of internal auditor.

Non-cash dealings with directors

(xv) The Company has not entered into any non-cash transactions with its directors or persons connected with them and accordingly, provisions of section 192 of the Act are not applicable to the Company.

Registration under section 45-IA of RBI Act, 1934

(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 clauses 3(xvi)(a),(b) and (c) of the Order are not applicable to the Company.

(b)The company (as defined in Core Investment Companies (Reserve Bank) Directions, 2016) does not have any CIC.

Cash losses

(xvii) The Company has incurred cash loss in the current year 2024-2025 & also in previous year 2023-2024.

Resignation of statutory auditors

(xviii) Since no resignation of previous auditor during the year therefore this clause is not applicable for current Year.

Material uncertainty on meeting its liabilities

(xix) In our opinion, and according to the information and explanations provided to us during the course of the audit during the course of the audit and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the 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, there exists a material uncertainty as on the date of the audit report that casts significant doubt on the Companys ability in 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. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

(xx) The criteria as specified under section 135(1) of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 and according, 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 Place: Jaipur

Date: 14.08.2025

UDIN: 25466010BMGYFU9775

ANNEXURE C TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE

ON THE STANDALONE FINANCIAL STATEMENT OF MAYUR LEATHER PRODUCTS LIMITED

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 over financial reporting of MAYUR LEATHER PRODUCTS LIMITED (the Company) as of March 31, 2025 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 over financial reporting 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 over financial reporting based on our audit. We 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 over financial reporting 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 over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting 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 over financial reporting 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 over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, have an adequate internal financial controls system over financial reporting subject to matters as stated in our Audit Report and such internal financial controls over financial reporting were operating effectively as at March 31, 2025, based on the internal control over financial reporting 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.

This report is not modified on above matter.

For Jain Paras Bilala & Company

Chartered Accountants Firm Registration No. 011046C

Sd/-

(CA. Piyush Goyal)

Partner

Membership No. 466010 Place: Jaipur Date: 14.08.2025

UDIN: 25466010BMGYFU9775