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 Auditor's 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 ICAI's 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.

Auditor’s 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 software’s 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