Notes to Accounts of Mayur Uniquoters Ltd.

Mar 31, 2022

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 finance 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. Also, Refer Note 16 for further disclosures.

The total cash outflow for leases including interest and short term leases for the year ended March 31, 2022 was Rs.68.43 lakhs(March 31, 2021 Rs.66.91 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.

As at March 31, 2022: Capital work-in-Progress mainly comprises new buildings and warehouses being constructed for Knitting, Embossing, Printing, Foam Lamination System and Stenter Machines, DMF Tank, Fire Fighting System and Fire Water Tanks.

As at March 31, 2021: Capital work-in-Progress mainly comprises new building and warehouses being constructed for Foam Lamination, China Coating Line, DOP Recovery System and Water Tanks, Fire Fighting System and Kitchen.

Note:

(i) There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the year except as disclosed in Note (ii) below.

(ii) These deposits include 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)(iv)]. As required by the SEBI Regulations, subsequent to the year end upon completion of the aforesaid buyback of equity shares, these deposits have been transferred to a special account for discharging the consideration.

(iii) Out of which deposits pledged with bank as margin money Rs. 32.72 lakhs (March 31, 2021 : Rs.7.24 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/- 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.

(d) Shares bought back during the immediately preceding five years.

(i) During the financial year 2016-17, the Company completed the buyback of 5,00,000 equity shares of Rs. 5 each(fully paid-up) at a price of Rs. 500/- per equity share aggregating to Rs. 2,500 lakhs (excluding transaction costs and applicable taxes). Consequent to the extinguishment, an amount of Rs. 25 lakhs representing the face value of these shares has been reduced from the share capital of the Company, with corresponding transfer of an equivalent amount to Capital Redemption Reserve.

(ii) During the financial year 2017-18, the Company completed the buyback of 4,50,000 equity shares of Rs. 5 each(fully paid-up) at a price of Rs. 550/- per equity share aggregating to Rs. 2,475 lakhs (excluding transaction costs and applicable taxes). Consequent to the extinguishment, an amount of Rs. 22.50 lakhs representing the face value of these shares has been reduced from the share capital of the Company, with corresponding transfer of an equivalent amount to Capital Redemption Reserve.

(iii) During the financial year 2020-21, the Company completed the buyback of 7,50,000 equity shares of Rs. 5 each(fully paid-up) at a price of Rs. 400/- per equity share aggregating to Rs. 3,000 lakhs (excluding transaction costs and applicable taxes). Consequent to the extinguishment, an amount of Rs. 37.50 lakhs representing the face value of these shares has been reduced from the share capital of the Company, with corresponding transfer of an equivalent amount to Capital Redemption Reserve.

(iv) During the current financial year 2021-22, the Company initiated the buyback process of 6,25,000 equity shares of Rs.5/- each (fully paid-up) at a price of Rs.650/- per equity share aggregating to Rs. 4,062.50 lakhs(excluding transaction costs and applicable taxes). The buyback offer was closed subsequent to the year-end and the process was completed in April 2022 resulting in extinguishment of these equity shares.

Nature and Purpose of Reserves

(a) Securities Premium: Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

(b) FVOCI Debt Instruments: The fair value changes of investment in debentures are accumulated within the FVOCI debt instruments within equity. The Company transfers amounts from this reserve to retained earnings when the relevant debentures are sold.

(c) 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.

\nii amuumo i\o. m icirvi 10, ui utoo uuil.i vuiol.

(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.81.56 lakhs (March 31, 2021: Rs. 70.34 lakhs). The expense recognised during the period towards Employees'' State Insurance is Rs. 10.12 lakhs (March 31, 2021: Rs.10.48 lakhs).

(C) Post-Employment Obligations Defined Benefit Plans- Gratuity

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.

(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 March 31, 2023 are Rs. 160.59 lakhs (year ended March 31, 2022 are Rs.153.22 lakhs).

36. The disruption created by the outbreak of Covid-19 pandemic has significantly impacted the operations earlier during the year. The Company has taken into account the relevant internal and external information in the preparation of its financial statements, including assessing recoverable value of its assets. However, given the evolving scenario and uncertainties with respect to its nature and duration, the impact may be different from estimates as on the date of approval of financial statements. The Company will continue to monitor any material changes to its future business and economic conditions.

Particulars	As at March 31, 2022	As at March 31, 2021
37. Contingent Liabilities (i) Claims against the Company not acknowledgement as debts:- Textile Committee Cess	7.69	7.69
- Income Tax Matters	-	34.44

(ii) The Company has evaluated the impact of the recent Supreme Court Judgment in case of "Vivekananda Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular No. C-I/ 1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2020 issued by the Employees'' Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of "basic wages” of the relevant employees for the purposes of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the management, the aforesaid matter is not likely to have a significant impact and accordingly, no provision has been made in these Standalone Financial Statements.

(a) 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. The legal advice indicates that it is not probable that a material liability will arise.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

Note: Dues to Micro and Small Enterprises (MSME) have been determined to the extent such parties have been identified on the basis of information collected by the management.

* The interest has not been provided in the accounts.

40 Corporate Social Responsibility Expenditure

The Company has incurred expenditure on CSR activities like Promoting Health Care Including Preventing Health Care, Employment Enhancing Vocational Skill and Promotion of Education. Such direction and guidance has been driven by principled approach, under which the Company spends for CSR activities.

(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.

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 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, capital creditors, cash and cash equivalents, other bank balances, other financial assets, short term borrowings and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

Majorly the security deposits are redeemable on demand and hence the fair values of security deposits are approximately equivalent to the carrying amount.

The non-current borrowings are carried at amortised cost. There is no material difference between carrying amount and fair value of non-current borrowings as at March 31, 2022 and March 31, 2021.

45 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 writes off debtors when they fail to make contractual payment greater than 5 years past due.

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 period. 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. 15,621.95 lakhs, Rs. 15,556.13 lakhs as at March 31, 2022, March 31, 2021, 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 period. 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 year-end payment records, as well as creditworthiness of debtors.

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 and others. 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.

(C) Market Risk

(i) Foreign Currency Risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, GBP, ZAR ,CNY and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The Company maintains EEFC bank account for export sales realisation which is generally used for repayment of import obligations (arising out of purchase of raw materials, services and capital goods), therefore, the risk is not a material risk to the Company.

(iii) Price Risk

The Company''s exposure to price risk arises from equity investments and equity oriented mutual funds held by the Company and classified in the Balance Sheet as fair value through Profit and Loss.

To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. The majority of the Company equity investment is publicly traded.

46 Events Occurring After the Reporting Period

Refer Note 14(d) for the buyback of the shares which was completed subsequent to the financial year. Further, Refer to Note 47 for the final dividend recommended by the board of directors which is subject to the approval of shareholders in the ensuing Annual General Meeting.

47 Capital Management

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

• 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

• 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 March 31, 2022 and March 31, 2021.

48 The Indian Parliament has approved the Code on Social Security, 2020 (''the Code'') which, inter alia, deals with employee benefits during employment and post-employment. The Code has been published in the Gazette of India. The effective date of the Code and rules there under are yet to be notified. In view of this, the impact of the change, if any, will be assessed and recognised upon notification of the relevant provisions.

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

51 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 45(B). 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 March 31, 2022.

(ix) Willful Defaulter:

The Company has not been declared Willful Defaulter by any bank or financial institution or government or any government authority.

(x) 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.

(xi) 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.

(xii) 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.

52. The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act,1961. For this purpose, the Company has appointed an independent consultant for conducting a Transfer Pricing study (the study) for the assessment year 2022-23. In the unlikely event that any adjustment is required consequent to completion of the study for the year ended March 31, 2022, the same would be made in the subsequent year. However, management is of the opinion that its international transaction are at arm''s length so that the aforesaid legislation will not have any material impact on the financial statements, particularly on the amount of tax expense and provision for taxation.

53. Previous year''s figures have been reclassified to conform to current year''s classification.

---

Mar 31, 2018

Background

Mayur Uniquoters Limited is a Company limited by shares, incorporated and domiciled in India. The Company is in the business of manufacturing of Coated Textile Fabrics which are widely used in different segments such as Footwear, Furnishings, Automotive OEM, Automotive replacement market, and Automotive Exports. The equity shares of the Company are presently listed with BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

The standalone financial statements were approved and authorised for issue with a resolution of the Company’s Board of Directors on May 30, 2018.

Note 1: Critical estimates and judgment

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.

Critical estimates and judgements

The areas involving critical estimates or judgements are:

- Estimation of defined benefit obligation - Note 24

- Impairment of trade receivables - Note 48

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.

Leasehold Land

The lease term in respect of land acquired at Gwalior in current year under finance lease is 99 years. Under the terms of the lease, the Company has the option to renew the lease term for the period of 99 years on expiry of the leases on terms and conditions as mutually agreed between the parties. With respect to leasehold land acquired in the current year at Gwalior, upfront payment is made at the inception of lease contract with annual lease payment to be made thereafter. The lease term in respect of land acquired at Jaitpura is 99 years. Upfront payment for 30 years is made at the inception of lease contract and further payment for balance 69 years is required to be made after the expiry of lease term of 30 years.

iii) Capital work-in-progress

As at March 31, 2018: Capital work-in-progress mainly comprises of new manufacturing unit being constructed at Gwalior, India and raw material godown at Dhodsar, India. As at March 31, 2017: Capital work-in-progress mainly comprises of building, plant and machinery, electrical installation and equipments at Dhodsar, India.

As at April 1, 2016: Capital work-in-progress mainly comprises of building at Dhodsar, India.

iv) Contractual obligations

Refer note 40 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

Nature and Purpose of Reserves

a) Securities Premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

b) FVOCI Debt Instruments

The fair value changes in debentures fair value through Other Comprehensive Income are accumulated within the FVOCI debenture reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant debentures are sold.

c) Capital Redemption Reserve

Statutory reserve created on buy back 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.

(A) Leave Obligations

The entire amount of the provision of Rs. 16.80 Lakhs (As at March 31, 2017: Rs. 4.08 Lakhs ; As at April 1, 2016: Rs. 3.79 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 Leave Encashment Fund managed by the Life Insurance Corporation of India under its Group Leave Encashment Scheme. The liability for Leave Encashment 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) Post-Employment Obligations

a) Defined Contribution Plans

The Company also has defined contribution plan for its employees’ retirement benefits comprising of 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 nor any constructive obligation. The expense recognised during the period towards Provident Fund is Rs. 51.38 Lakhs (As at March 31, 2017: Rs. 42.75 Lakhs). The expense recognised during the period towards Employees’ State Insurance is Rs. 16.41 Lakhs (As at March 31, 2017: Rs. 11.40 Lakhs)

b) Defined Benefit Plans Gratuity

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.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(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 statement).

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 plans 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 ending March 31, 2019 are Rs. 47.64 Lakhs.

The weighted average duration of the defined benefit obligation is 7 years (As at March 31, 2017: 12 years ; As at April 1, 2016: 14 years). The expected maturity analysis of undiscounted gratuity is as follows:

Goods and service tax (GST) has been effected from July 1, 2017. Consequently excise duty, value added tax, service tax etc. have been replaced with GST. Until June 30, 2017 “Sale of products” included the amount of excise duty recovered on sale. With effect from July 1, 2017 sale of products excludes the amount of GST recovered. Accordingly, revenue from sale of products for the year ended March 31, 2018 is not comparable with that of the previous year. The following additional information is being provided to facilitate such understanding:

38) The Company is in the process of exploring a comprehensive automated attendance recording system to capture and maintain sufficient details including time worked by its own as well as contractual workers. Based on the current practice followed by the Company and available manual records, the Company’s management is of the view that it has complied with the Payment of Wages Act, 1936 and other applicable labour laws.

(a) 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.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(b) Operating Leases

The Company leases offices under operating leases expiring within five years. The leases have varying terms and renewal rights. On renewal, the terms of the leases are renegotiated. Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Lease payments recognised for operating leases in the Statement of Profit and Loss for the year ended on March 31 2018: Rs. 52.99 Lakhs (As at March 2017: Rs. 56.89 Lakhs). The Company has not given any assets on sub-lease during the year.

Finance Lease

The minimum lease payments as at March 31, 2018 and its present value in respect of leasehold land at Gwalior acquired under finance lease are as follows:

2) During the previous year, the Company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R.308(E), dated March 31, 2017. The details of SBNs held and transacted during the period from November 8, 2016 to December 30, 2016. The denomination-wise SBNs and other notes as per the notification are as follows:

*For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.0.3407(E), dated November 8, 2016.

3) Segment Information

The chief operating decision maker (CODM) i.e. The Board of Directors reviews the performance of the overall business. As the Company has single reportable segment i.e. PU/ PVC synthetic leather, the segment wise disclosure requirements of Ind AS 108 on operating segment is not applicable.In compliance to the said standard, entity wide disclosures are as under :

4) Related Party Transactions

Related Party Information

1) Relationship

(a) Wholly owned subsidiary as on March 31, 2018, March 31, 2017 and April 1, 2016 Mayur Uniquoters Corp. (Country of incorporation - United States of America)

(b) Other related parties - These entities are controlled or jointly controlled by a persons related to the reporting entity. Futura Textiles Inc.

Mayur Leather Products Limited Mayur Global Private Limited

c) Key Management Personnel

Suresh Kumar Poddar (Chairman & Managing Director & CEO)

Arun Kumar Bagaria (Executive Director)

Manav Poddar (Executive Director) (from April 1, 2016 to May 1, 2016 and from June 22, 2016 to February 3, 2017) Guman Mal Jain (Chief Financial Officer)

Brahm Prakash (Company Secretary) (w.e.f. February 15, 2017 Upto April 17, 2018)

Nikhil Saxena (Company Secretary) (Upto December 1, 2016)

Rahul Joshi (Company Secretary) (w.e.f. April 18, 2018)

Independent & Non-Executive Directors Kanwarjit Singh (Upto January 26, 2018) Ratan Kumar Roongta Tanuja Agarwal

B.L. Bajaj (Upto August 10, 2016)

Shyam Agrawal (w.e.f. March 26, 2018)

(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 debetures) 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.

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 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, capital creditors, cash and cash equivalents, other bank balances, other financial assets, short term borrowings and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

Majorly the security deposits are reedemable on demand and hence the fair values of security deposits are approximately equivalent to the carrying amount.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 2 fair values in the fair value hierarchy since significant inputs required to fair value an instrument are observable. There is no material difference between carrying amount and fair value of non-current borrowings as on March 31, 2018 ; March 31, 2017 and April 1, 2016.

5) 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 write offs debtors when they fail to make contractual payment greater than 5 years past due.

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 period. 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. 13,292.66 Lakhs, Rs. 12,869.30 Lakhs and Rs. 12,282.88 Lakhs as at March 31, 2018, March 31, 2017 and April 1, 2016, 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 monitor 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 judgement 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 period. 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 and 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 amortized cost includes security deposits and others. 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.

(C) Market Risk

(i) Foreign Currency Risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The Company maintains EEFC bank account for export sales realisation which is generally used for repayment of import obligations (arising out of purchase of raw materials, services and capital goods), therefore, the risk is not a material risk to the Company.

The Company’s exposure to foreign currency risk at the end of the reporting period expressed in INR Lakhs, are as follows:

(iii) Price Risk

The Company’s exposure to price risk arises from equity investments and equity oriented mutual funds held by the Company and classified in the balance sheet as fair value through profit or loss.

To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. The majority of the Company’s equity investments are included in the BSE index.

Sensitivity

The table below summarises the impact of increases/decreases of the index on the Company’s profit for the period. The analysis is based on the assumption that the equity index had increased by 11.30% decreased by 11.30% with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

6) Events Occurring after the Reporting Period

Refer to note 50 for the final dividend recommended by the board of directors which is subject to the approval of shareholders in the ensuing annual general meeting.

7) Capital Management

The Company’s objectives when managing capital are to

- 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

- 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 March 31, 2017 and March 31, 2018.

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

8) The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. For this purpose, the Company has appointed an independent consultant for conducting a Transfer Pricing study (the ‘study’) for the Assessment Year 2018 -19. In the unlikely event that any adjustment is required consequent to completion of the study for the year ended March 31, 2018, the same would be made in the subsequent year. However, management is of the opinion that its international transactions are at arm’s length so that the aforesaid legislation will not have any material impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

9) First Time Adoption Of Ind AS Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The company’s date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and Exceptions Availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Ind AS optional exemptions Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets and investment in subsidiary Company. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment in subsidiary Company at their previous GAAP carrying value.

Ind AS mandatory exceptions Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:-

Impairment of financial assets based on expected credit loss model.

De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

I) Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Reconciliation of equity as at date of transition (As at April 1, 2016) and As at March 31, 2017

* - Previous GAAP figures have been reclassified to conform to Ind AS presentation requirements.

** - Fixed deposits with banks amounting to Rs. 158.35 Lakhs and Rs. 144.73 Lakhs having an original maturity period of more than 3 months were classified and presented under ‘Cash and cash equivalents’ both in the balance sheet and in the cash flow statement for the year ended March 31, 2017 and March 31, 2016 respectively, prepared under the previous GAAP. This has been rectified in the comparative information included in these financial statements and the impact on each affected financial statement line item and cash flow statement id disclosed above.

*** - Refer Note 9 below under Notes to first time adoption.

Notes to First-Time Adoption:

Note 1: Fair Valuation of Equity Investments

Under the previous GAAP, investments in equity instruments were classified as long-term investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings of Rs. 6.35 Lakhs as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2017 of Rs. 5.61 Lakhs.

Note 2: Fair Valuation of Investment in Mutual Funds

Under the previous GAAP, investments in mutual funds were classified as current investments based on the intended holding period and realisability. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings of Rs. 154.02 Lakhs as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2017 of Rs. 272.05 Lakhs.

Note 3: Deferred Tax

Deferred tax have been recognised on transition to Ind AS as per balance sheet approach on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Note 4: Trade Receivables

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, the allowance for doubtful debts increased by Rs. 168.94 Lakhs as at March 31, 2017 (as at April 1, 2016- Rs. 99.20 Lakhs).

Note 5: Proposed Dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend as at April 1, 2016 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount of Rs. 111.40 Lakhs.

Note 6: Excise Duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by Rs. 4,677.85 Lakhs There is no impact on the total equity and profit.

Note 7: Remeasurements of Post-Employment Benefit Obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 decreased by Rs. 2.54 Lakhs. There is no impact on the total equity as at March 31, 2017.

Note 8: Leasehold Land

This pertains to adjustment pertaining to leasehold land assessed as finance lease.

Note 9: Transaction Cost on Buy Back of Equity Shares

Under the previous GAAP, transaction cost of Rs. 24.53 lakhs on buy back of equity shares are charged to statement of profit and loss in the period in which they are incurred. Under Ind AS, such transaction costs on buy back of equity shares are accounted for as a deduction from equity since such transactions are made with owners of the company.

Note 10: Retained Earnings

Retained earnings as at 1 April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 11: Other Comprehensive Income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans and changes in fair value of FVOCI debt instruments. The concept of other comprehensive income did not exist under Previous GAAP.

10) Accounting standards and amendments issued but not yet effective as at 31 March 2018

Ind AS 115, Revenue from contracts with customers

Ind AS 115, Revenue from contracts with customers deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a promised good or service and thus has the ability to direct the use and obtain the benefits from the good or service in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard replaces Ind AS 18 Revenue and Ind AS 11 Construction contracts and related appendices.

A new five-step process must be applied before revenue can be recognised:

1. Identify contracts with customers

2. Identify the separate performance obligation

3. Determine the transaction price of the contract

4. Allocate the transaction price to each of the separate performance obligations, and

5. Recognise the revenue as each performance obligation is satisfied.

The new standard is mandatory for financial years commencing on or after April 1, 2018 and early application is not permitted. The standard permits either a full retrospective or a modified retrospective approach for the adoption.

The Company is in the process of assessing the detailed impact of Ind AS 115. Presently, the Company is not able to reasonably estimate the impact that application of Ind AS 115 is expected to have on its financial statements.

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration

The MCA has notified Appendix B to Ind AS 21, foreign currency transactions and advance consideration. The appendix clarifies how to determine the date of transaction for the exchange rate to be used on initial recognition of a related asset, expense or income where an entity pays or receives consideration in advance for foreign currency-denominated contracts.

For a single payment or receipt, the date of the transaction should be the date on which the entity initially recognises the non-monetary asset or liability arising from the advance consideration (the prepayment or deferred income/contract liability). If there are multiple payments or receipts for one item, date of transaction should be determined as above for each payment or receipt.

The appendix can be applied:

- Retrospectively for each period presented applying Ind AS 8;

- Prospectively to items in scope of the appendix that are initially recognised

- On or after the beginning of the reporting period in which the appendix is first applied (i.e. April 1, 2018 for entities with March year-end); or

- From the beginning of a prior reporting period presented as comparative information (i.e. April 1, 2017 for entities with March year-end).

Management has assessed the effects of applying the appendix to its foreign currency transactions for which consideration is received in advance. The Company has evaluated the effect of this on the financial statements and impact is not material. Company to adopt the amendments prospectively to items in scope of the appendix that are initially recognised on or after the beginning of the reporting period in which the appendix is first applied (i.e. from April 1, 2018).

Amendments to Ind AS 12 Income taxes regarding recognition of deferred tax assets on unrealized losses

The amendments clarify the accounting for deferred taxes where an asset is measured at fair value and that fair value is below the asset’s tax base. They also clarify certain other aspects of accounting for deferred tax assets set out below:

- A temporary difference exists whenever the carrying amount of an asset is less than its tax base at the end of the reporting period.

- The estimate of future taxable profit may include the recovery of some of an entity’s assets for more than its carrying amount if it is probable that the entity will achieve this.

- Where the tax law restricts the source of taxable profits against which particular types of deferred tax assets can be recovered, the recoverability of the deferred tax assets can only be assessed in combination with other deferred tax assets of the same type.

- Tax deductions resulting from the reversal of deferred tax assets are excluded from the estimated future taxable profit that is used to evaluate the recoverability of those assets. This is to avoid double counting the deductible temporary differences in such assessment.

An entity shall apply the amendments to Ind AS 12 retrospectively in accordance with Ind AS 8 for the financial statements presented on or after 1 April 2018. However, on initial application of the amendment, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity.

The Company has evaluated the impact of the amendments on its investments in equity shares and mutual funds and has concluded that the amendment has no impact on its financial statements as on March 31, 2017 and March 31, 2018.

The Company shall apply the amendments to Ind AS 12 retrospectively in accorance with Ind AS 8 and shall take effect of transition adjustment for earliest period presented for balance sheet as on March 31, 2019.

---

Mar 31, 2017

(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/- 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.

a) Defined Benefit Plan Provident Fund

The Company has defined contribution plan for its employees'' retirement benefits comprising of 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.

Gratuity

The Company has defined benefit plan comprising of gratuity fund & leave encashment. The Company contributes to the gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its group gratuity (Cash Accumulation) scheme and group leave encashment scheme.

Defined benefit plans as per actuarial valuation as on 31st March 2017

1. In the opinion of the management and to the best of their knowledge and belief the value of realization of advances and other current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

2. Expenditure on Corporate Social Responsibility Activities as per Section 135 of the Companies Act 2013 read with Schedule VII thereof;

(a) Gross amount required to be spent by the Company during the year: 2% of Rs. 10,047.32 Lakhs (Average net profit of the Company for three immediate preceding financial years) i.e. Rs. 200.95 Lakhs

3. Disclosure on Specified Bank Notes

During the year, the Company had Specified Bank Notes(SBNs) or other denomination notes as defined in the MCA notification, G.S.R.308 (E), dated March 31,2017. The details of SBNs held and transacted during the period from November 8, 2016 to December 30, 2016. the denomination-wise SBNs and other notes as per the notification are as follows:

*For the purposes of this clause, the term ‘Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O.3407(E), dated November 8, 2016.

4. The Company is engaged in production of Coated Textile Fabric hence there is no reportable business segment and the Company has no activity outside India except export of Coated Textile Fabric manufactured in India. Thereby no geographical segment and no segment wise information is reported.

5. Related Party Disclosures

Related party information

1) Relationship

(a) Wholly owned subsidiary Mayur Uniquoters Corp. USA

(b) Enterprises over which person described in (b) or (c) are able to exercise significant influence, where transaction has taken place.

Futura Textiles Inc.

Mayur Leather Products Limited

Mayur Global Private Limited

c) Key Management Personnel

Suresh Kumar Poddar (Chairman & Managing Director)

Manav Poddar (Executive Director) 1st April to 1st May & 22nd June to 03rd Feb. 2017

Arun Kumar Bagaria (Executive Director)

Guman Mal Jain (Chief Financial Officer)

Nikhil Saxena (Company Secretary) Upto 01.12.2016

Brahm Prakash (Company Secretary) w.e.f. 15.02.2017

6. Leases

As a Lessee

7. Finance/Operating Lease

There is no finance lease taken by the Company during the year.

8. Operating Lease

(i) The total of future minimum lease payments under non-cancelable operating lease for each of the following periods:

(a) Not later than one year: Rs. 0.61 Lakhs (Rs. 25.84 Lakhs)

(b) Later than one year and not later than five years: Rs. 102.51 Lakhs (Rs. 1.64 Lakhs)

(c) Later than five years: Rs. Nil (Nil)

(ii) Lease payments recognized in the Statement of Profit & Loss for the year ended on 31.03.2017 Rs. 56.89 Lakhs (Rs. 54.98 Lakhs)

(ii) The Company has not given any assets on sub-lease during the year.

9. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

10. Balance of Sundry Debtors, Sundry Creditors and Advances are subject to confirmation.

11. The Company did not have convertible, partly convertible debentures as on 31st March, 2017

12. Figure in brackets denotes figures for pervious year ended on 31.03.16

13. Figures for previous year are regrouped and rearranged wherever considered necessary.

---

Mar 31, 2016

Gratuity and Other Pose Employment Benefit Plan

a) Defined Contribution Plan

The Company has defined contribution plan for its employees'' requirement benefits comprising of provident fund & employees'' state insurance fund. The Company and eligible employees make monthly contribution to the above mentioned funds ac. a specified percentage of the covered employees salary.

b) Defined Benefit Plan

The Company has defined benefit plan comprising of gratuity fund & leave encashment. The Company contributes to the gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its group gratuity (Cash Accumulation) scheme and group leave encashment scheme.

Defined benefit plans as per actuarial valuation as on 3 1st March 2016.

1 The Company is engaged in production of Coated Textile Fabric lie nee there is no report cable business segment and the Company has no activity outside India except export of Coated Textile Fabric manufactured in India. Therefore no geographical segment and no segment wise information is reported.

2 Related Party Disclosures Related party information

I) Relationship

(a) Wholly owned subsidiary Mayur Uniquoters Corp. USA

(b) Enterprises over which person described in (c) along with their relatives are able to exercise significant influence, directly or indirectly, where transaction has taken place.

Future Tex dies Inc.

Mayur-Leather Products Limited

c) Key management personnel

Suresh Kumar Poddar {Chairman & Managing Director)

Manav Poddar (Executive Director)

Arun Kumar Bagaria (Executive Director)

Prahalad Sahay Jangid (Chief Financial Officer) Up to 13.08.2015 Guman Mai Jain (Chief Financial Officer) w.e.f. 13.08.2015 Nikhil Saxena (Company Secretary)

3 Leases

As a Lessee

Finance/Operating Lease

There is no fin a nee/operating |_e-,_Se taken by the Company during the year.

4 There are no Micro. Small and Medium Enterprises, co whom the Company owes dues, which are outstanding for more than 45 days ac the Balance Sheet date. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 has been determined co the extent such practices have been identified on the basis of information available with the Company.

5 Pursuant to the AS-29 - provisions, contingent liabilities and contingent assets .the disclosures relating to provisions made in the accounts for the year ended 31st March, 2016 are as follows

6 Balance of Sundry Debtors, Sundry Creditors and Advances are subject to confirmation.

47 The Company did not have convertible partly convertible debentures as on 31st March, 2016

8 Figure in brackets denotes figures for previous year ended on 31.03.2015.

9 Figures for previous year are regrouped find rearranged wherever considered necessary.

---

Mar 31, 2015

1 General Information

Mayur Uniquoters Limited (the Company), is engaged in the business of manufacturing of Coated Textile fabric. The Company is the leading manufacturer of Coated Textile fabric in India. The Company has its manufacturing units situated at village Jaitpura and Dhodsar, Jaipur (India).Knitted Fabric manufactured in Dhodsar plant is consumed as captive consumption.The products of the Company i.e.Coated Textile fabric are widely used in different segments such as Footwear, Furnishings,Automotive OEM,Automotive replacement market, and Automotive Exports. The company is selling its products directly to OEMs and other manufacturers, wholesalers in India and is also exporting to various countries including US & UK. The equity shares of the company are presently listed with Bombay Stock Exchange Limited (BSE)and National stock Exchange Limited (NSE)

(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/- 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.

a) Defined Benefit Plan Provident Fund:

The Company has Defined contribution plan for its employees' retirement benefits comprising of 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.

Gratuity:

The Company has Defined benefit plan comprising of Gratuity fund & leave encashment. The Company contributes to the Gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) scheme and Group leave encashment scheme.

Defined benefit plans as per actuarial valuation as on 31st March 2014

2. The Company is engaged in production of Coated Textile Fabric hence there is no reportable business segment and the company has no activity outside India except export of Coated Textile Fabric manufactured in India. Thereby no Geographical segment and no segment wise information is reported.

3. Related party Disclosures

Related party information 1) Relationship

(a) Enterprises over which person described in (b) or ( c ) are able to exercise significant influence, Where transaction has taken place.

Futura Textiles Inc.

b) Key Management personnel S.K.Poddar(Chairman & Managing Director)

Manav Poddar

Arun Kumar Bagaria

c) Relatives of Persons referred in (b) above where transactions have taken place.

4. Leases

As a Lessee:

1 Finance Lease

There is no Finance Lease taken by the Company during the year.

2 Operating Lease

(i) The total of future minimum lease payments under non-cancelable operating lease for each of the following periods:

a) Not later than one year:- Rs.30.40 Lacs (Rs.16.53 Lacs)

b) Later than one year and not later than five years:- Rs. 1 1.64 Lacs (Rs.27.32 Lacs)

c) Later than five years:- Nil

(ii) Lease payments recognized in the statement of profit and loss for the year ended on 31.03.14 Rs 42.04 Lacs (Rs.31.09 Lacs)

(iii) The company has not given any assets on sub-lease during the year.

5. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Balance of Sundry Debtors, Sundry Creditors and advances are subject to confirmation.

7. The Company did not have convertible .partly convertible debentures as on 31st March,2014

8. Figure in brackets denotes figures for pervious year ended on 31.03.13

9. Figures for previous year are regrouped and rearranged wherever considered necessary.

---

Mar 31, 2014

(A) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.5/- 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.

a) Defined Benefit Plan Provident Fund:

The Company has Defined contribution plan for its employees' retirement benefits comprising of 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.

Gratuity:

The Company has Defined benefit plan comprising of Gratuity fund & leave encashment. The Company contributes to the Gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) scheme and Group leave encashment scheme.

Defined benefit plans as per actuarial valuation as on 31st March 2014

1. The Company is engaged in production of Coated Textile Fabric hence there is no reportable business segment and the company has no activity outside India except export of Coated Textile Fabric manufactured in India. Thereby no Geographical segment and no segment wise information is reported.

2. Related party Disclosures

Related party information

1) Relationship

(a) Enterprises over which person described in (b) or ( c ) are able to exercise significant influence, Where transaction has taken place.

Futura Textiles Inc.

b) Key Management personnel S.K.Poddar(Chairman & Managing Director) Manav Poddar Arun Kumar Bagaria

c) Relatives of Persons referred in (b) above where transactions have taken place.

2) Transactions with Related Parties 43. Leases As a Lessee:

1 Finance Lease There is no Finance Lease taken by the Company during the year.

2 Operating Lease (i) The total of future minimum lease payments under non-cancelable operating lease for each of the following periods:

a) Not later than one year:- Rs.30.40 Lacs (Rs.16.53 Lacs)

b) Later than one year and not later than five years:- Rs. 1 1.64 Lacs (Rs.27.32 Lacs)

c) Later than five years:- Nil

(ii) Lease payments recognized in the statement of profit and loss for the year ended on 31.03.14 Rs 42.04 Lacs (Rs.31.09 Lacs)

(iii) The company has not given any assets on sub-lease during the year.

3. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Pursuant to the AS-29 - Provisions, Contingent Liabilities and Contingent Assets ,the disclosures relating to provisions made in the accounts for the year ended 31st March,2014 are as follows

5. Balance of Sundry Debtors, Sundry Creditors and advances are subject to confirmation.

6. The Company did not have convertible .partly convertible debentures as on 31st March,2014

7. Figure in brackets denotes figures for pervious year ended on 31.03.13

8. Figures for previous year are regrouped and rearranged wherever considered necessary.

---

Mar 31, 2013

1 General Information

Mayur Uniquoters Limited (The Company), is engaged in the business of manufacturing of Coated Textile Fabric. The Company is the leading manufacturer of Coated Textile Fabric in India. The Company has its manufacturing units situated at Village Jaitpura and Dhodsar,Jaipur (India).Knitted Fabric manufactured in Dhodsar plant is consumed as captive consumption.The products of the Company i.e.CoatedTextile Fabric are widely used in different segments such as Footwear, Furnishings, Automotive OEM, Automotive Replacement Market, and Automotive Exports. The Company is selling its products directly to OEMs and other manufacturers, wholesalers in India and is also exporting to various countries including US & UK.The equity shares of the Company are presently listed with Bombay Stock Exchange Limited (BSE) and National Stock Exchange Limited (NSE)

2. Contingent Liabilities

(i) Demand Under Disputes-

(a)Textile Committee Cess 7.69 7.69

(b) Service Tax Demand 11.03 22.96

(The Company has filed appeal against these demands)

(ii) Letter of Credit/Bank Guarantee 3,343.36 4,255.38

3. In the opinion of the management and to the best of their knowledge and belief the value of realization of advances and other current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

4. The Company is engaged in production of Coated Textile Fabric hence there is no reportable business segment and the company has no activity outside India except export of Coated Textile Fabric manufactured in India.Thereby no Geographical segment and no segment wise information is reported.

5. Related Party Disclosures Related party information

1) Relationship

(a) Enterprises over which person described in (b) or (c) are able to exercise significant influence, where transaction has taken place.

b) Key Management Personnel

S.K.Poddar (Chairman & Managing Director)

Manav Poddar

Arun Kumar Bagaria

c) Relatives of persons referred in (b) above where transactions have taken place.

2) Transactions with Related Parties

6. Leases

As a Lessee

1 Finance Lease

There is no finance lease taken by the company during the year.

2 Operating Lease

(i) The total of future minimum lease payments under non-cancelable operating lease for each of the following periods

a) Not later than one year:- Rs. 16.53 Lacs.

b) Later than one year and not later than five years:- Rs.27.32 Lacs.

c) Later than five years:- Nil

(ii) Lease payments recognized in the statement of profit and loss for the year ended on 31.03.13 Rs 31.09 Lacs (Rs. 16.39 Lacs)

(iii) The company has not given any assets on sub-lease during the year.

7. There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days at the Balance Sheet date.This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

8. Pursuant to the AS-29 - Provisions, Contingent Liabilities and Contingent Assets ,the disclosures relating to provisions made in the accounts for the year ended 31 st March,2013 are as follows

9. Balance of Sundry Debtors, Sundry Creditors and Advances are subject to confirmation.

10. The Company did not have convertible .partly convertible debentures as on 31st March,20l3

11. Figure in brackets denotes figures for pervious year ended on 31.03.12

12. Figures for previous year are regrouped and rearranged wherever considered necessary.

---

Mar 31, 2012

1 General Information

Mayur Uniquoters Limited (the Company), is engaged in the business of manufacturing of Coated Textile fabric. The Company is the leading manufacturer of Coated Textile fabric in India. The Company has its manufacturing unit situated at village jaitpura, Jaipur (India).The products of the Company i.e. Coated Textile fabric are widely used in different segments such as Footwear, Furnishings, Automotive OEM, Automotive replacement market, and Automotive Exports. The company is selling its products directly to OEMs and other manufacturers, wholesellers in India and is also exporting to various countries including US & UK. The equity shares of the company are presently listed with Bombay Stock Exchange Limited BSE.

(a) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs. 10/- 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.

a) Defined Benefit Plan Provident Fund:

The Company has Defined contribution plan for its employees' retirement benefits comprising of 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.

Gratuity:

The Company has Defined benefit plan comprising of Gratuity fund & leave encashment. The Company contributes to the Gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) scheme and Group leave encashment scheme.

2. The Company is engaged in production of Coated Textile fabric hence there is no reportable business segment and the company has no activity outside India except export of Coated Textile fabric manufactured in India. Thereby no Geographical segment and no segment wise information is reported.

3. Related party Disclosures

Related party information

I) Relationship

(a) Enterprises over which person described in (b) or (c) are able to exercise significant influence, Where transaction has taken place.

Champalal Suresh Kumar Poddar Charitable Trust

b) Key Management personnel

S.K.Poddar(Chairman & Managing Director)

Manav Poddar

Arun Kumar Bagaria

c) Relatives of Persons referred in (b) above where transactions have taken place.

Puja Poddar

4. Leases

As a Lessee:

1 Finance Lease

There is no Finance Lease taken by the Company during the year.

2 Operating Lease

(i) The total of future minimum lease payments under non-cancellable operating lease for each of the following periods:

a) Not later than one year:- Nil

b) Later than one year and not later than five years:- Nil

c) later than five years:- Nil

(ii) Lease payments recognized in the statement of profit and loss for the year ended on 31.03.12 Rs 16.39 Lacs (Nil)

(iii) The company has not given any assets on sub-lease during the year.

5. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Balance of Sundry Debtors, Sundry Creditors and advances are subject to confirmation.

7. The Company did not have convertible, partly convertible debentures as on 31st March,20l2

8. Figure in brackets denotes figures for pervious year ended on 31.03.11

9. Previous year Figures

The Financial statements for the year ended March 31,2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956.Consequent to the notification of Revised Schedule VI under the Companies Act, 1956,the financial statements for the year ended March 31, 2012 are prepared as per Revised ScheduleVI. Accordingly ,the previous year figures have also been reclassified or rearranged to conform to this year's classification. The adoption of Revised ScheduleVI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

---

Mar 31, 2011

1. Contingent Liabilities not provided for (Rs.in Lacs)

(i) Letter of credit 3,618.89 (2,446.60)

(ii) Demand under disputes Textile Committee Cess 7.69

(The Company has filed appeal against this demand) (7.69)

(iii) Service Tax Demand 22.96

(Nil)

(iv) Estimated amount of contracts remaining to be executed on 654.23 capital account (Net of Advance) (156.57)

2. In the opinion of the management and to the best of their knowledge and belief the value of realization of advances and other current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

3. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date.This information as required to be disclosed under the Micro,Small & Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. The Company is engaged in production of PU/PVC Synthetic Leather hence there is no reportable business segment and the company has no activity outside india except export of PU/PVC Synthetic Leather manufactured in india.Thereby no Geographical segment and no segment wise inforamation is reported.

5. Related party Disclosures

Related party information

1) Relationship

a) Enterprises over which person described in (b) or (c) are able to exercise significant influence,Where transaction has taken place. Champalal Suresh Kumar Poddar Charitable Trust

b) Key Management Personnel S.K.Poddar(Chairman & Managing Director) Manav Poddar

Arun Kumar Bagaria

c) Relatives of persons referred in (b) above where transactions have taken place. Puja Poddar

6. Balance of Sundry Debtors, Sundry Creditors and advances are subject to confirmation.

7. The Company did not have convertible, partly convertible debentures as on 31st March, 2011.

8. Figure in brackets denotes figures for pervious year ended on 31.03.10.

9. Figures for previous year are regrouped and rearranged wherever considered necessary.