Get Updates

Get notified about market trends, financial advice, and investment tips!

A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Mayur Uniquoters Ltd.

Mar 31, 2025

q) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not
recognised for future operating losses. Where there
are a number of similar obligations, the likelihood
that an outflow will be required in settlement is
determined by considering the class of obligations
as a whole. A provision is recognised even if the
likelihood of an outflow with respect to any one item
included in the same class of obligations may be
small.

Provisions are measured at the present value of
management''s best estimate of the expenditure
required to settle the present obligation at the end of
the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time value
of money and the risks specific to the liability. The
increase in the provision due to the passage of time
is recognised as interest expense.

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not
recognised because it is not probable that an outflow
of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognised
because it cannot be measured reliably. The Company
does not recognise a contingent liability but discloses
its existence in the Standalone Financial Statements.

r) Employee Benefits

(i) Short-Term Obligations

Liabilities for wages and salaries, including nonÂ¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognised in respect of employees''
services up to the end of the reporting period and

are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit
obligations in the Balance Sheet.

(ii) Other Long-Term Employee Benefit Obligations

The liabilities for compensated absences are not
expected to be settled wholly within twelve
months after the end of the period in which the
employees render the related service. These
obligations are therefore measured as the
present value of expected future payments to be
made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method less fair
value of plan assets as at Balance Sheet date.
The benefits are discounted using the market
yields at the end of the reporting period that have
terms approximating to the terms of the related
obligation. Re-measurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in profit and loss.

The obligations are presented as current
liabilities in the Balance Sheet as the entity does
not have an unconditional right to defer settlement
for at least twelve months after the reporting
period, regardless of when the actual settlement
is expected to occur.

(iii) Post-Employment Obligations

The Company operates the following postÂ¬
employment schemes: (a) Defined benefit plan
(Gratuity) (b) Defined contribution plans (Provident
Fund).

Defined Benefit Plan (Gratuity)

The Company contributes to the Gratuity Fund
managed by the Life Insurance Corporation of India
under its New Company Gratuity Cash Accumulation
Plan.

The liability or asset recognised in the Balance Sheet
in respect of defined benefit gratuity plan is the present
value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually
by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of
the reporting period on government bonds that have
terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost
is included in employee benefit expense in the
Statement of Profit and Loss.

Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which
they occur, directly in other comprehensive income.
They are included in retained earnings in the
statement of changes in equity and in the Balance
Sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit and
loss as past service cost.

Defined Contribution Plans

The Company pays provident fund contributions to
publicly administered provident funds as per local
regulations. The Company has no further payment
obligations once the contributions have been paid.
The contributions are accounted for as defined
contribution plans and the contributions are
recognised as employee benefit expense when they
are due. Prepaid contributions are recognised as an
asset to the extent that a cash refund or a reduction in
the future payments is available.

s) Contributed Equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

t) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no
longer at the discretion of the entity, on or before the
end of the reporting period but not distributed at the
end of the reporting period.

u) Earnings Per Share

Basic earnings per share are calculated by dividing
the profit or loss for the year attributable to equity to
the owners of the Company by the weighted average
number of equity shares outstanding during the year.

The Company does not have any dilutive potential
equity shares.

v) Rounding of Amounts

All amounts disclosed in the Standalone Financial
Statements and notes have been rounded off to the
nearest lakhs upto two decimal places as per the
requirement of Schedule III, unless otherwise stated.

w) New and Amended Standards Adopted by the
Company

The Ministry of Corporate Affairs notified new
standards or amendment to existing standards under
Companies (Indian Accounting Standards) Rules as
issued from time to time.

The Company applied following amendments for the
first-time during the current year which are effective
from 1 April 2024:

Amendments to Ind AS 116 - Lease liability in a sale
and leaseback

The amendments require an entity to recognise lease
liability including variable lease payments which are
not linked to index or a rate in a way it does not result
into gain on Right-of-use asset it retains.

Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard
that prescribe, recognition, measurement and
disclosure requirements, to avoid diversities in
practice for accounting insurance contracts and it
applies to all Companies i.e., to all "insurance
contracts" regardless of the issuer. However, Ind AS
117 is not applicable to the entities which are
insurance Companies registered with IRDAI.

The Company''s has reviewed the new
pronouncements and based on its evaluation has
determined that these amendments do not have a
significant impact on the Company''s Standalone
Financial Statements.

Note 2: Critical Estimates and Judgements

The preparation of Standalone Financial Statements
requires the use of accounting estimates which, by
definition, will seldom equal the actual results.
Management also needs to exercise judgement in applying
the Company''s accounting policies. This note provides
an overview of the areas that involved a higher degree of
judgement or complexity, and of items which are more
likely to be materially adjusted due to estimates and
assumptions turning out to be different than those
originally assessed. Detailed information about each of
these estimates and judgements is included in relevant
notes together with information about the basis of
calculation for each affected line item in the Standalone
Financial Statements.

The areas involving critical estimates or judgements are:

â¢ Estimates of defined benefit obligation - Note 23

â¢ Estimate of useful life of property, plant and equipment
- Note 3 (a)

â¢ Impairment of trade receivables -Note 43 (A)

â¢ Impairment assessment of non-financial asset -Note
46

â¢ Measurement of contingent liabilities -Note 36

Estimation and judgements are continuously evaluated.
They are based on historical experience and other factors
including expectation of future events that may have a
financial impact on the Company and that are believed to
be reasonable under the circumstances.

Note:- 3 Standards Issued but not yet Effective

Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as
issued from time to time. There are no such recently
issued standards or amendments to the existing
standards for which the impact on the Standalone Financial
Statements is required to be disclosed.

3(b) Leases

This note provides information for leases where the Company is a lessee. The Company leases various premises,
where the rental contracts are generally short term except in case of lease hold land where it is up to 99 years.

Land lease

Leasehold land represents land taken on lease under long term multi-decade lease term, capitalised at the present
value of the aggregate future minimum lease payments (which include annual lease rentals in addition to the initial
payment made at the inception of the lease). There are no contingent payments.

(i) Amounts recognised in Standalone Balance Sheet

The Balance Sheet shows the following amounts relating to lease.

(i) Liquid investments: Liquid investments represent current investments and non-current quoted investment, being
the Company''s financial assets and fixed deposits held by the Company.

(ii) The Company has used the borrowings from banks for the specific purpose for which it was taken at the Balance
Sheet date.

(iii) The Company has sanctioned borrowing limits in relation to which the quarterly returns of current assets filed by the
Company with banks are in agreement with the books of accounts for the respective periods.

(iv) The information about the Company''s exposure to interest rate, foreign currency and liquidity risks is included in
note 43.

(v) The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting
period and there have been no default in repayment of interest and loans in the current year.

(A) Compensated absences

The entire amount of the provision of Rs.260.57 lakhs (31 March 2024: Rs.231.12 lakhs) is presented as current, since
the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on
past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment
within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12
months.

The Company contributes to the compensated absences fund managed by the Life Insurance Corporation of India
under its Group Leave Encashment Scheme. The liability for compensated absences is determined on the basis of
independent actuarial valuation done at year end. plan assets are measured at fair value as at Balance Sheet date.

(B) Defined contribution

The Company has defined contribution plan for its employees'' retirement benefits comprising Provident Fund &
Employees'' State Insurance Fund. The Company and eligible employees make monthly contribution to the above
mentioned funds at a specified percentage of the covered employees salary. The obligation of the Company is limited
to the amount contributed and it has no further contractual or any constructive obligation. The expense recognised
during the year towards Provident Fund is Rs. 108.47 lakhs (31 March 2024: Rs. 98.29 lakhs). The expense recognised
during the period towards Employees'' State Insurance is Rs. 5.36 lakhs (31 March 2024: Rs.7.35 lakhs).

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are
in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/
termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied
for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to fund
managed by the Life Insurance Corporation of India.

(vi) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

Interest rate risk: The plan exposes the Company to the risk of fall in the interest rates. A fall in the interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of
the liability (as shown in financial statements)

Salary escalation risk: The present value of the defined benefit plan is calculated with assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of
increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk: The Company has used certain mortality and attrition assumption in valuation of the liability. The
Company is exposed to the risk of the actual experience turning out to be worse.

Regulatory risk: Gratuity benefit is paid in accordance with the requirement of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulation requiring higher gratuity payouts.

Liquidity risk : This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due
to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in
time.

Asset liability mismatching or market risk: The duration of the liability is longer compared to duration of assets,
exposing the Company to market risk for volatilities/ fall in interest rate.

Investment risk : The probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.

(vii) Defined benefit liability

The Company''s best estimate of contribution towards post-employment benefit plans for the year ended 31 March 2026
are Rs. 450.38 lakhs (year ended 31 March 2025 are Rs.402.99 lakhs).

The weighted average duration of the defined benefit obligation is 6 years (31 March 2024: 7 years). The expected
maturity analysis of undiscounted gratuity for on-roll employees are as follows:

Note: Against demand as mentioned above, the Company has filed appeals before various tax authorities. Based on
management assessment and upon consideration of advice from the independent legal counsels, the management
believes that the Company has reasonable chances of succeeding before the tax authorities and does not foresee any
material liability. Pending the final decision on this matter, no adjustment has been made in the Standalone Financial
Statements.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending
resolution of the respective proceedings.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2. There are no instruments categorised in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. There are no instruments categorised in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of
the reporting period.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of trade receivables, trade payables, cash and cash equivalents, other bank balances, other
financial assets, other financial liabilities, short term borrowings, lease liabilities are considered to be the same as
their fair values, due to their short-term nature.

Majorly the security deposits and fixed deposits are redeemable on demand and bonds are redeemable at par
hence the fair values of security deposits and bank deposits are approximately equivalent to the carrying amount.

The Non-current borrowings and lease liabilities are carried at amortised cost. There is no material difference
between carrying amount and fair value of non-current borrowings as at 31 March 2025 and 31 March 2024.

Other note:

The investment in equity shares of subsidiaries are measured at cost. Refer note 4 for further details.

43. Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk.

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s
risk management framework.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company''s receivables from customers. The
carrying amounts of financial assets represent the maximum credit risk exposure.

A default on a financial asset is when the counterparty fails to make contractual payments as per agreed terms.
This definition of default is determined by considering the business environment in which entity operates and
other macro-economic factors.

Assets are written off when there is no reasonable expectation of recovery.

The Company considers the probability of default upon initial recognition of asset and whether there has been
a significant increase in credit risk on an ongoing basis throughout each reporting year. To assess whether
there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset
as at the reporting date with the risk of default as at the date of initial recognition. It considers available
reasonable and supportive forwarding-looking information.

Trade and other receivables

Credit risk refers to the risk of default on its obligation by the counter party resulting in financial loss. The
maximum exposure to the credit risk at the reporting date is primarily from trade receivable amounting to
Rs.24,605.00 lakhs, Rs. 23,467.61 lakhs as at 31 March 2025 and 31 March 2024 , respectively. The Company''s
exposure to credit risk is influenced mainly by the individual characteristics of each customer. The management
also considers the factors that may influence the credit risk of its customer base, including the default risk of the
industry and country in which customers operate. The Company has a credit risk management policy in place
to limit credit losses due to non-performance of financial counterparties and customers. The Company monitors
its exposure to credit risk on an ongoing basis at various levels. Outstanding customer receivables are regularly
monitored. The Company closely monitors the acceptable financial counterparty credit ratings and credit limits
and revise where required in line with the market circumstances.

Due to the geographical spread and the diversity of the Company''s customers, the Company is not subject to
any significant concentration of credit risks at Balance Sheet date.

On account of adoption of Ind AS 109, the Company uses a simplified approach (lifetime expected credit loss
model) for the purpose of computation of expected credit loss for trade receivables.

The Company calculates expected credit loss on its trade receivables using ''allowance matrix'' and also takes
into account ''delay risk'' on trade receivables.

Significant estimates: The impairment provisions for financial assets disclosed above are based on
assumptions about risk of default and expected loss rates. The Company uses judgment in making these
assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history,
existing market conditions as well as forward looking estimates at the end of each reporting year. For trade
receivables only, the Company applies the simplified approach permitted by Ind AS 109, "Financial Instruments",
which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Management judgment is required for assessing the recoverability of trade receivables and the valuation of the
allowances for impairment of trade receivables. The Company makes impairment allowance for trade receivables
based on an assessment of the recoverability of trade receivables. Allowances are applied to trade receivables
where events or changes in circumstances indicate that the balances may not be collectible. The impairment
allowance is estimated by management based on historical experience and current economic environment,
The Company assesses the expected credit losses by calibrating historical experience with forward-looking
estimates. This may include information regarding the industry in which debtors are operating, historical and
post vear-end payment records, as well as creditworthiness of debtors.

(iv) Commodity price risk

Commodity price risk arises due to fluctuation in prices of key raw materials. The Company has a risk management
framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs. The
Company''s commodity risk is managed centrally through well-established control processes. Further, selling price of
finished goods are adjusted due to fluctuation in market prices of key raw materials and the Company expects that the
net impact of such fluctuation would not be material.

44. Events occurring after the reporting year

The Board of Directors has recommended final dividend of Rs.5.00 (i.e. 100%) per Equity Share of Rs.5.00 each
aggregating to Rs. 2,172.63 lakhs, which is subject to the approval of shareholders in the ensuing Annual General
Meeting.

45. Capital management

The Company''s objectives when managing capital are to:

â¢ safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

â¢ maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. No changes were
made in the objectives, policies or processes for managing capital during the year ended 31 March 2025 and 31
March 2024.

The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting
period.

46. Impairment of non-financial assets

In accordance with Ind AS 36 "Impairment of Assets", the Company has identified Gwalior Plant (the ''Plant'') as a
separate cash generating unit (CGU) for the purpose of impairment review. Management periodically performs an
impairment assessment of the CGUs basis internal and external indicators, in order to determine whether the
recoverable value is below the carrying amount as at 31 March 2025.

The Company has considered its property, plant and equipment, inventory, trade receivables and other attributable
assets and liabilities of the Gwalior Plant as a single CGU. As at 31 March 2025, carrying value of CGU is Rs.
10,142.39 lakhs.

The Plant has incurred operating losses during the current and previous years and the economic performance of
the Plant, has been significantly lower than the budgets. Therefore, basis these indicators, the Plant has been
assessed for recoverability as at 31 March 2025 as to whether, the carrying value exceeds the recoverable value of
the Plant. The Company has assessed the recoverability (fair value) of the property, plant & equipment (''PPE'')
having carrying values of Rs. 7,454.21 lakhs for CGU as at 31 March 2025 with the help of an external valuation
expert using the reproduction cost method (indexation method) under cost approach for PPE (other than land and
building) and sales comparison method under market approach for land and building as per Ind AS 36. Remaining
carrying values of CGU of Rs. 2,688.18 lakhs, majorly includes Inventory of Rs. 1,031.59 lakhs and GST input of Rs.
948.21 lakhs are recoverable with no impairment risk.

Such valuation model requires management to make significant estimates and assumptions related to selection
of the discount rates, estimated future life and market values of property to be considered for impairment testing as
per Ind AS 36."

Based on above, recoverable value (fair value less cost of disposal) calculated as at 31 March 2025 is Rs. 10,674.84
lakhs.

Key assumptions used in determining the recoverable value are:

(a) Discount rate

(b) Estimated future life

If we apply sensitivity on discount rate and market values, the recoverable value will still exceed the carrying value of
the CGU. Hence, no impairment required to be recognized.

47. Note on audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a requirement for Companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring
Companies, which uses accounting software for maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each
change made in the books of account along with the date when such changes were made and ensuring that the
audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit trail
(edit log) facility and the same was enabled at the application level. During the year ended 31 March 2025, the
Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting
software to log any direct data changes due to high consume storage space on the disk and can impact database
performance significantly.

48. Capitalisation of expenditure incurred during construction period (refer note 3a)

The costs that are directly attributable to the acquisition or construction of property, plant and equipment have been
apportioned to certain property, plant and equipment on reasonable basis. details of such costs capitalised is as
under :-

50. Additional regulatory information required by schedule III of Companies Act, 2013

(i) Details of benami property:

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

(ii) Utilisation of borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary
shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (ultimate beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(iii) Compliance with approved scheme(s) of arrangements:

No scheme of arrangement has been approved by the Competent Authority in terms of Sections 230 to 237 of
the Companies Act, 2013, hence, this is not applicable.

(iv) Undisclosed income:

There are no transactions not recorded in the books of account that have been surrendered or disclosed as
income during the current or previous year in the tax assessments under the Income-tax Act, 1961.

(v) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(vi) Valuation of property, plant and equipment and intangible assets:

As the Company has chosen cost model for its property, plant and equipment (including right-of-use assets)
and intangible assets, the question of revaluation does not arise.

(vii) Loans or advances to specified persons:

The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs or the
related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

(viii) Borrowings secured against current assets:

The Company had sanctioned borrowings limits as disclosed in note 16. The quarterly returns/ statements of
current assets filed by the Company with the bank were in agreement with the books of account for the year
ended 31 March 2025.

(ix) Willful defaulter:

The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.

(x) Transaction with struck-off Companies:

The Company has not entered into any transaction with the struck off Companies.

(xi) Registration of charges or satisfaction with registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory
period.

(xii) Compliance with number of layers of Companies:

The Company complies with the number of layers prescribed under clause (87) of Section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

(xiii) Utilisation of borrowings availed from banks and financial institutions:

The borrowings obtained by the Company have been utilised for the purpose for which the same was obtained.

51. Per transfer pricing legislation under section 92-92F of the Income-Tax Act 1961, the Company is required to use
certain specific methods in computing arm''s length price of international transactions with associated enterprises
and maintains adequate documentation in this respect. The legislations require that such information and
documentation to be contemporaneous in nature. The Company has appointed independent consultants for
conducting the Transfer Pricing Study to determine whether the transactions with associated enterprises undertake
during the financial year are on an "arm''s length basis". The Company is in the process of conducting a transfer
pricing study for the current financial year and expects such records to be in existence latest by the due date as
required by law. However, in the opinion of the management the update would not have a material impact on these
Standalone Financial Statements. Accordingly, these Standalone Financial Statements do not include any adjustments
for the transfer pricing implications, if any.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of

Firm Registration No: 001076N/N500013 Mayur Uniquoters Limited

Tarun Gupta Suresh Kumar Poddar Arun Bagaria Vinod Kumar Sharma Pawan Kumar Kumawat

Partner (Chairman and Managing Director & CEO) (Whole Time Director) (Chief Financial Officer) (Company Secretary)

Membership No.: 507892 DIN- 00022395 DIN- 00373862 Membership No.: 078135 Membership No.: ACS 25377

Place : Jaipur Place : Jaipur

Date : 8 May 2025 Date : 8 May 2025

Mar 31, 2024

q) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the standalone financial statements.

r) Employee Benefits

(i) Short-Term Obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other Long-Term Employee Benefit Obligations

The liabilities for compensated absences are not expected to be settled wholly within twelve months after the end of the period in which the employees render the related service. These obligations are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method less fair value of plan assets as at balance sheet date. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit and loss.

The obligations are presented as current liabilities in the balance sheet as the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-Employment Obligations

The Company operates the following postemployment schemes: (a) Defined benefit plan (Gratuity) (b) Defined contribution plans (Provident Fund).

Defined Benefit Plan (Gratuity)

The Company contributes to the Gratuity Fund managed by the Life Insurance Corporation of India under its New Company Gratuity Cash Accumulation Plan.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit

obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit and loss as past service cost.

Defined Contribution Plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

s) Contributed Equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

t) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

u) Earnings Per Share

Basic earnings per share are calculated by dividing the profit or loss for the year attributable to equity to the owners of the Company by the weighted average number of equity shares outstanding during the year.

The Company does not have any dilutive potential equity shares.

v) Rounding of Amounts

All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakhs upto two decimal places as per the requirement of Schedule III, unless otherwise stated.

w) New and Amended Standards Adopted by the Company

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which were effective for annual periods beginning on or after 1 April 2023.

(i) Definition of Accounting Estimates -Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company''s standalone financial statements.

(ii) Disclosure of Accounting Policies -Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s standalone financial statements.

(iii) Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction -Amendments to

Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, The amendments had no impact on the Company''s standalone financial statements.

Note 2: Critical Estimates and Judgements

The preparation of standalone financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies. This note provides overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the standalone financial statements.

The areas involving critical estimates or judgements are:

â¢ Estimates of defined benefit obligation - Note 23

â¢ Estimate of useful life of property, plant and equipment - Note 3 (a)

â¢ Impairment of trade receivables - Refer Note 43 (A)

â¢ Impairment assessment of non-financial asset -Refer Note 46

â¢ Measurement of contingent liabilities - Refer Note 36

Estimation and judgements are continuously evaluated. They are based on historical experience and other factors including expectation of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

3(b) Leases

This note provides information for leases where the Company is a lessee. The Company leases various premises, where the rental contracts are generally short term except in case of lease hold land where it is upto 99 years.

Land lease

Leasehold land represents land taken on lease under long term multi-decade lease term, capitalised at the present value of the aggregate future minimum lease payments (which include annual lease rentals in addition to the initial payment made at the inception of the lease). There are no contingent payments.

1/2

ch;

(vi) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk: The plan exposes the Company to the risk of fall in the interest rates. A fall in the interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements)

Salary escalation risk: The present value of the defined benefit plan is calculated with assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk: The Company has used certain mortality and attrition assumption in valuation of the liability. The Company is exposed to the risk of the actual experience turning out to be worse.

Regulatory risk: Gratuity benefit is paid in accordance with the requirement of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulation requiring higher gratuity payouts.

Liquidity risk : This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Asset liability mismatching or market risk: The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities/ fall in interest rate.

Investment risk : The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

(vii) Defined benefit liability and employer contributions

The Company''s best estimate of contribution towards post-employment benefit plans for the year ended 31 March 2025 are Rs. 402.99 lakhs (year ended 31 March 2024 are Rs.217.68 lakhs).

(i) Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded debentures and mutual funds that have quoted price. The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. There are no instruments categorised in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no instruments categoriesed in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of trade receivables, trade payables, cash and cash equivalents, other bank balances, other financial assets, other financial liabilities, short term borrowings, lease liabilities are considered to be the same as their fair values, due to their short-term nature.

Majorly the security deposits and fixed deposits are redeemable on demand and bonds are redeemable at par hence the fair values of security deposits and bank deposits are approximately equivalent to the carrying amount.

The Non-current borrowings and lease liabilities are carried at amortised cost. There is no material difference between carrying amount and fair value of non-current borrowings as at 31 March 2024 and 31 March 2023.

Other note:

The investment in equity shares of subsidiaries are measured at cost. Refer note 4 for further details.

43. Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk.

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. The carrying amounts of financial assets represent the maximum credit risk exposure.

A default on a financial asset is when the counterparty fails to make contractual payments as per agreed terms. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Assets are written off when there is no reasonable expectation of recovery.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting year. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

Trade and other receivables

Credit risk refers to the risk of default on its obligation by the counter party resulting in financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivable amounting to Rs.23,467.61 lakhs, Rs. 19,451.51 lakhs as at 31 March 2024 and 31 March 2023 , respectively. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate. The Company has a credit risk management policy in place to limit credit losses due to non-performance of financial counterparties and customers. The Company monitors its exposure to credit risk on an ongoing basis at various levels. Outstanding customer receivables are regularly monitored. The Company closely monitors the acceptable financial counterparty credit ratings and credit limits and revise where required in line with the market circumstances.

Due to the geographical spread and the diversity of the Company''s customers, the Company is not subject to any significant concentration of credit risks at balance sheet date.

On account of adoption of Ind AS 109, the Company uses a simplified approach (lifetime expected credit loss model) for the purpose of computation of expected credit loss for trade receivables.

The Company calculates expected credit loss on its trade receivables using ''allowance matrix'' and also takes into account ''delay risk'' on trade receivables.

Significant estimates: The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting year. For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109, "Financial Instruments", which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits accounts in different banks across the country.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes security deposits, investment in subsidiaries and other investments. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows.

Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

44. Events occurring after the reporting year

The Board of Directors has recommended final dividend of Rs.3.00 (i.e. 60%) per Equity Share of Rs.5.00 each aggregating to Rs. 1,318.58 lakhs, which is subject to the approval of shareholders in the ensuing Annual General Meeting.

45. Capital management

The Company''s objectives when managing capital are to:

â¢ safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

â¢ maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March 2024 and 31 March 2023.

The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting period.

46. Impairment of non-financial assets

In accordance with Ind AS 36 "Impairment of Assets", the Company has identified Gwalior plant (the ''Plant'') as a separate cash generating unit (CGU) for the purpose of impairment review. Management periodically performs an impairment assessment of the CGUs basis internal and external indicators, in order to determine whether the recoverable value is below the carrying amount as at 31 March 2024.

The Company has considered its property, plant and equipment, inventory, trade receivables and other attributable assets and liabilities of the Gwalior Plant as a single CGU. As at 31 March 2024, carrying value of CGU is Rs. 10,557.72 lakhs.

The Plant has incurred operating losses during the current and previous years and the economic performance of the Plant, has been significantly lower than the budgets. Therefore, basis these indicators, the Plant has been assessed for recoverability as at 31 March 2024 as to whether, the carrying value exceeds the recoverable value of the Plant. Company has assessed the recoverability (fair value) of the property, plant & equipment (''PPE'') having carrying values of Rs. 8,464.28 lakhs for CGU as at 31 March 2024 with the help of an external valuation expert using the reproduction cost method (indexation method) under cost approach for PPE (other than land and building) and sales comparison method under market approach for land and building as per Ind AS 36. Remaining carrying values of CGU of Rs. 2,093.44 lakhs, majorly includes Inventory of Rs. 1479.04 lakhs and GST input of Rs. 1055.78 lakhs are recoverable with no impairment risk.

Such valuation model requires management to make significant estimates and assumptions related to selection of the discount rates, estimated future life and market values of property to be considered for impairment testing as per Ind AS 36. "

Based on above, recoverable value (fair value less cost of disposal) calculated as at 31 March 2024 is Rs. 11,254.43 lakhs.

Key assumptions used in determining the recoverable value are:

(a) Discount rate (b) Estimated future life (c) Market values of property

If we apply senstivity on discount rate and market values, the recoverable value will still exceed the carrying value of the CGU. Hence, no impairment required to be recognized.

47. Note on audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for Companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring Companies which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses accounting software SAP where the audit trail (edit logs) at the application level of the accounting software has operated throughout the year for all relevant transactions recorded in the software. But the feature of recording audit trail was not enabled at the database level to log any direct data changes, used for maintenance of all accounting records.

The Company follows a specific procedure for direct database changes in a controlled environment which includes taking prior approval for any changes required at database level. In the approval mail all the specific details are mentioned regarding audit trail requirements for capturing timing, the executor, and the details of the change. Further, this information was available for the entire fiscal year.

48. Capitalisation of expenditure incurred during construction period (refer note 3a)

The costs that are directly attributable to the acquisition or construction of property, plant and equipment have been apportioned to certain property, plant and equipment on reasonable basis. details of such costs capitalised is as under :-

50. Additional regulatory information required by schedule III of Companies Act, 2013

(i) Details of benami property:

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

(ii) Utilisation of borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or

any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities

(intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities

(funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(iii) Compliance with approved scheme(s) of arrangements:

No scheme of arrangement has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013, hence, this is not applicable.

(iv) Undisclosed income:

There are no transactions not recorded in the books of account that have been surrendered or disclosed as income during the current or previous year in the tax assessments under the Income-tax Act, 1961.

(v) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vi) Valuation of property, plant and equipment and intangible assets:

As the Company has chosen cost model for its property, plant and equipment (including right-of-use assets) and intangible assets, the question of revaluation does not arise.

(vii) Loans or advances to specified persons:

The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs or the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

(viii) Borrowings secured against current assets:

The Company had sanctioned borrowings limits as disclosed in note 16. The quarterly returns/ statements of current assets filed by the Company with the bank were in agreement with the books of account for the year ended 31 March 2024.

(ix) Willful defaulter:

The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

(x) Transaction with struck-off Companies:

The Company has not entered into any transaction with the struck off Companies.

(xi) Registration of charges or satisfaction with registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

(xii) Compliance with number of layers of Companies:

The Company complies with the number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(xiii) Utilisation of borrowings availed from banks and financial institutions:

The borrowings obtained by the Company have been utilised for the purpose for which the same was obtained.

51. Per transfer pricing legislation under section 92-92F of the Income-Tax Act 1961, the Company is required to use certain specific methods in computing arm''s length price of international transactions with associated enterprises and maintains adequate documentation in this respect. The legislations require that such information and documentation to be contemporaneous in nature. The Company has appointed independent consultants for conducting the Transfer Pricing Study to determine whether the transactions with associated enterprises undertake during the financial year are on an "arm''s length basis". The Company is in the process of conducting a transfer pricing study for the current financial year and expects such records to be in existence latest by the due date as required by law. However, in the opinion of the management the update would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of

Firm Registration No: 001076N/N500013 Mayur Uniquoters Limited

Tarun Gupta Suresh Kumar Poddar Arun Kumar Bagaria Vinod Kumar Sharma Pawan Kumar Kumawat

Partner (Chairman and Managing Director & CEO) (Executive Director) (Chief Financial Officer) (Company Secretary)

Membership No.: 507892 DIN- 00022395 DIN- 00373862 Membership No.: 078135 Membership No.: ACS 25377

Place : Jaipur Place : Jaipur

Date : 21 May 2024 Date : 21 May 2024

Mar 31, 2023

1. Leases

This note provides information for leases where the Company is a lessee. The Company leases various premises, where the rental contracts are generally short term except in case of lease hold land where it is upto 99 years.

Land lease

Leasehold land represents land taken on lease under long term multi-decade lease term, capitalised at the present value of the aggregate future minimum lease payments(which include annual lease rentals in addition to the initial payment made at the inception of the lease) .There are no contingent payments.

The total cash outflow for leases including interest and short term leases for the year ended 31 March 2023 was Rs. 71.65 lakhs (31 March 2022 Rs. 68.43 lakhs).

(iii) Variable lease payments

The Company does not have any leases with variable lease payments.

(iv) Extension and termination options

There are no extension and termination options available in the lease contracts.

(v) Residual value guaranteed

There are no residual value guaranteed in the lease contracts.

(vi) For maturity analysis of lease liabilities refer note 43 (B).(vii) For disclosure regarding principal and interest payments, refer note 16.

Note: There are no projects as on each reporting period end where activity has been suspended. Also, there are no projects as on the reporting period end which has exceeded cost as compared to its original plan or where completion is overdue.also, no projects in progress are temporarily suspended.

a) The carrying amount of trade receivables approximates their fair value is included in note 42.

b) The Company''s exposure to credit and currency risks, and impairment allowances related to trade receivables is disclosed in note 43.

c) The Company provide 0-180 days credit period for trade receivables with no significant financing component.

d) Includes amounts due, in the ordinary course of business, from Companies in which directors of the Company are also directors, (refer note 40):

Mayur Uniquoters Corp., USA Futura Textiles Inc., USA Mayur Uniquoters SA (PTY) LTD

Mayur Tecfab Private Limited, India (Wholly Owned Subsidiary) w.e.f 4 May 2022

(i) There are no repatriation restrictions with regard to cash and cash equivalents except as disclosed in note (ii) below.

(ii) As at 31 March 2022, the deposits reperesents an amount of Rs. 1,015.63 lakhs deposited in an escrow account with a lien in favour of the buyback manager for the purpose of completion of the buyback of equity shares proposed during the year [refer note 14(d)]. As required by the SEBI Regulations, these have been utilised for buyback of equity shares during the current year.

(iii) Out of which deposits pledged with bank as margin money Rs. 234.69 lakhs (31 March 2022 : Rs.32.72 lakhs).

(b) Rights, preferences and restrictions attached to shares

Equity shares: The Company has one class of equity shares having a par value of Rs. 5.00 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their share holding.

Nature and purpose of reserves

(a) General reserve

General reserve are free reserves of the Company which are kept aside out of the Company''s profit to meet the future requirements as and when they arise.

(b) Capital redemption reserve

Statutory reserve created on buyback of shares equivalent to face value of the equity shares bought back under the provisions of the Act. Such reserve could be used for issue of bonus shares.

All the profits or losses made by the Company are transferred to retained earnings from Statement of Profit and Loss, and are available for distribution to shareholders of the Company.

Nature of security		Terms of repayment
i)	Term loan from ICICI Bank Limited of Rs. 491.46 lakhs (31 March 2022 : Rs. 884.63 lakhs) are secured against the following :- a) First pari-passu charge by way of equitable mortgage on the immovable property admeasuring 31900 square meters, situated at industrial land, khasra no.721/1,726,727/2097, 728/2, 729/2, 727/1,726/2093, Gram Dhodsar, Tehsil Chomu, District Jaipur. b) First pari-passu charge on the movable property, plant and equipment of the Company at a unit situated at industrial land, khasra no.721/1, 726, 727/2097, 728/2, 729/2, 727/1,726/2093, Gram Dhodsar, Tehsil Chomu, District Jaipur. c) First charge on the immovable property admeasuring 101208 square meters situated at plot no. S-1 to S-30, part of M-8 & M-9 to M-13, IIDC, industrial area/estate-Sitapur phase-1,Village-Sitapur(Pahadi) Tehsil & District Morena (M.P.). d) First charge on the movable property, plant and equipment (plant & machinery) of the Company at a PU unit situated at plot no.S-1 to S-30, Part of M-8 & M-9 to M-13, IIDC, industrial area/estate-Sitapur phase-1,Village-Sitapur (Pahadi) Tehsil & District Morena (M.P.)	Repayable in 20 quarterly installments beginning from September 2019. Interest rate: Base rate Spread 0.45%. Maturity date: 30 June 2024.
ii)	Term loan from ICICI Bank Limited of Rs. 134.78 lakhs (31 March 2022 : Rs. 243.67 lakhs) are secured against the following :- a) First pari-passu charge on immovable property situated at industrial land, khasra no. 721/1,726, 727/2097, 728/2, 729/2, 727/1,726/2093, admeasuring 31900 square meters situated at Gram Dhodsar, Tehsil Chomu, District Jaipur. b) First pari-passu charge on the movable property, plant and equipment of the Company at a unit owned the Company, situated at Gram Dhodsar, Tehsil Chomu, District Jaipur. c) First charge on the movable fixed assets (Plant & Machinery) of the Company at a PU unit owned by the Company, situated at industrial area Sitapur, phase-I, Village Sitapur (Pahadi) Tehsil & District Morena (M.P.).	Repayable in 20 quarterly installments beginning from September 2019. Interest rate: Base rate Spread 0.45%. Maturity date: 30 June 2024.
iii)	Term loan from ICICI Bank Limited of Rs. 1,169.21 lakhs (31 March 2022 : Rs. 1,419.60 lakhs) are secured primarily by first pari-passu charge on the movable fixed assets, both present and future of property situated at industrial land, khasra no. 721/1, 726, 727/2097, 728/2, 729/2, 727/1, 726/2093, admeasuring 31900 square meters situated at Gram Dhodsar, Tehsil Chomu, District Jaipur.	Repayable in 20 equal quarterly installments beginning from October 2021. Interest rate: [1-MCLR-1Y] Spread 0%. Maturity date: 1 July 2026.
iv)	Term loan from ICICI Bank Limited of Rs. 557.43 lakhs (31 March 2022 : Rs. 288.00 lakhs) are secured primarily by first pari-passu charge on movable fixed assets being plant and machinery, both present and future of Dhodsar unit situated at Gram Dhodsar, Tehsil Chomu, District Jaipur.	Repayable in 20 structured quarterly installments beginning from September 2022. Interest rate: Base Rate Spread 0%. Maturity date: 31 August 2027.
v)	Term loan from HDFC Bank Limited of Nil (31 March 2022 : Rs. 52.50 lakhs) are secured by Charge on the movable properties, including movable plant & machinery and other movables, both present and future of all locations of the Company.	Repayable in 20 quarterly installments beginning from December 2020. Interest rate: 7.35% linked with 3 Month MCLR. Maturity date: 30 September 2025.The loan has been fully prepaid during the year.

(i) Liquid investments: Liquid investments represent current investments, being the Company''s financial assets and fixed deposits held by the Company.

(ii) The Company has used the borrowings from banks for the specific purpose for which it was taken at the balance sheet date.

(iii) The Company had sanctioned borrowing limits in relation to which the quarterly returns of current assets filed by the Company with banks are in agreement with the books of accounts for the respective periods.

(iv) The information about the Company''s exposure to interest rate, foreign currency and liquidity risks is included in note 43.

(v) The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting period and there have been no default in repayment of interest and loans in the current year.

(A) Compensated absences

The entire amount of the provision of Rs.108.36 lakhs (31 March 2022: Rs.98.64 lakhs ) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

The Company contributes to the compensated absences fund managed by the Life Insurance Corporation of India under its Group Leave Encashment Scheme. The liability for compensated absences is determined on the basis of independent actuarial valuation done at year end. plan assets are measured at fair value as at balance sheet date.

(B) Defined contribution plans

The Company has defined contribution plan for its employees'' retirement benefits comprising Provident Fund & Employees'' State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary. The obligation of the Company is limited to the amount contributed and it has no further contractual or any constructive obligation. The expense recognised during the year towards provident fund is Rs. 89.54 lakhs (31 March 2022: Rs. 81.56 lakhs). The expense recognised during the period towards Employees'' State Insurance is Rs. 9.06 lakhs (31 March 2022: Rs.10.12 lakhs).

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to fund managed by the Life Insurance Corporation of India.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.