1 COMPANY OVERVIEW
Mayur Leather Products Limited (the Company) is a publicly heLd Company incorporated on 13th March
1987. The registered office of the Company is located at G-60-62 & 67-69, Jaitpura Industrial Estate,
Jaitpura, Jaipur-303704. The company is engaged in the manufacturing and export of Leather Shoes and
Shoe Uppers. The majority sales of the Company comprises of exports. The Company is engaged in
production of industrial shoe / uppers segment both internationally and in the domestic market. The
Equity Shares of the Company are presently listed with the Bombay Stock Exchange Limited (BSE).
2 SIGNIFICANT ACCOUNTING POLICIES, ASSUMPTIONS AND NOTES
2.1 BASIS OF PREPARATION
Ministry of corporate affairs has notified roadmap to implement IND AS notified under Companies
(Indian Accounting Standard) Rules 2015 as amended by the Companies (Indian Accounting Standard)
Rules 2016. And according to the said roadmap the company is required to apply IND AS in preparation
of financial statement from the financial year beginning from 1st April 2017.
* These financial statements have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred teas the
'Ind AS') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013
('Act') read with of the
Companies (Indian Accounting Standards) Rules,2016 as amended and other relevant provisions of the
Act,
2.2 Use of estimates, assumption and judgement
The preparation of the financial statements requires management to make estimates, judgements and
assumptions. Actual results could vary from these estimates. The estimates, judgements and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision effects only that period or in the period of the
revision and future periods if the revision affects both current and future years (refer Notes on critical
accounting estimates, assumptions and judgements). The management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
3 Statement of Compliance
The financial statements comprising of the Balance Sheet, Statement of Profit and Loss, Statement of
changes in equity, Statement of Cash Flow together with notes comprising a summary of Significant
Accounting Policies and Other Explanatory Information for the Year ended 3'lst March, 2023 and
comparative information in respect of tire preceding period and Balance Sheet as on transition date, i.e. 1st
April 2016 have been prepared in accordance with IND AS as notified and duly approved by the Board of
Directors, along with proper explanation for material departures,
4 ACCOUNTING POLICIES
4.1 Basis of Measurement
The standalone financial statements have been prepared on accrual basis and under the historical cost
convention except following which have been measured at fair vaLue:
a. Financial assets and liabilities except those carried at amortised cost
b. Defined benefit plans - FTan assets measured at fair value less present value of defined obligations
An asset is classified as current when it is:
(a) Expected to be realised or intended to be sold or consumed in normal operating cycle,
(b) Held primarily for the purpose of trading,
(c) Expected to be realised within twelve months after the reporting period, or
(d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period
All other assets are classified as non-current
A liability is classified as current when it is;
(a) Expected to be settled in normal operating cycle,
(b) Due to be settled within twelve months after the reporting period, or
(c) There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period. All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realisation in
cash or cash equivalents. Deferred tax assets and liabilities are classified as non-current assets and
4.2 Inventories
a. Raw Material;
Raw materials, components, stores and spares are valued at cost or landed value whichever is lower.
However, materials and other items held for use in the production of inventories are not written down
below cost if the finished products in which they will be incorporated are expected to be sold at or above
cost, Cost of raw materials, components, stores and spares is determined on FIFO basis,
b. Finished goods & work in progress:
Work in progress is valued at cost
Finished goods are valued at lower of cost or net realisable value. Cost includes direct materials and
labour and a portion of manufacturing overhead based on normal operating capacity .Net realisable value
is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
4.3 Statement of cash flows
Cash flows are reported using the method as prescribed in IND AS 7 'Statement of Cash flows', where by
net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or payments and item of income or expense associated
with investing or financial cash flows. The cash flows from operating, investing and financing activities of
the Company are segregated.
4.4 Prior Period Errors
Prior period errors include omissions and misstatements arising from a failure to use reliable information
that was available or could have been obtained when financial statements for those periods were
approved for issue.
Prior period errors relating to the last comparative period will be shown by restating the comparative
figures of Balance sheet and Profit and loss, wherever necessary. Thus, it will be disclosed in the
comparative financial statements as if the error had not even occurred.
4.5 Revenue recognition and other income
a. Revenue on sale of products
The Company recognise revenues on accrual basis and measured it at the fair value of the consideration
received or receivable, net of discounts, volume rebates, GST Revenue is shown inclusive of excise duty
since excise duty is liability of the manufacturer which forms part of the cost of production, irrespective of
whether the goods are sold or not.
Revenue is recognized when the significant risks and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be
estimated reliably, there is no continuing management involvement with the goods, and the amount of
revenue can be measured reliably.
Export sale has been recognised at the time of removal of goods from factory at invoice value (whether
FOB or CIF) on the basis of exchange rates declared by Custom Department for that particular month.
No significant financing component exists in the sales.
b. Revenue from services (lob Charges Received):
Revenue from services is recognised in the accounting period in which the services are rendered.
c. Export Benefits:
Export benefits in the form of Duty Drawback, Duty Entitlement Pass Book (DEPB) and other schemes are
recognized in the Statement of profit and loss when the right to receive credit as per the terms of the
scheme is established in respect of exports made and when there is no significant uncertainty regarding
the ultimate collection of the relevant export proceeds.
4.6 Other income
a. Interest
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset's net carrying amount on initial recognition.
b. Dividend
Dividend income is recognized in the Statement of profit and loss when the right to receive dividend is
established.
c. Lease Rent
Lease Rent is recognized as income in the Statement of profit and loss on accrual basis i.e. as and when
lease rent is due.
4.7 Property, Plant and Equipment
Property, plant and equipment are tangible items that:
(a) are heLd for use in the production or supply of goods or services, for rental to others, or for
administrative purposes; and
(b) are expected to be used during more than one period.
Items such as spare parts, stand-by equipment and servicing equipment are recognised in accordance
with this Ind AS when they meet the definition of property, pLant and equipment. Otherwise, such items
are classified as inventory.
Initial recognition; The Company has applied for the one time transition exemption of considering the
carrying cost on the transition date i.e, ApriL 1, 2016 as the deemed cost under IND AS,The initiaL cost of
property, plant and equipment comprises its purchase price, including non-refundable purchase taxes,
and any directly attributable costs of bringing an asset to working condition and location for its intended
use. It also incLudes the initiaL estimate of the costs of dismantling and removing the item and restoring
the site on which it is located.
Subsequent expenses and recognition: Expenditure incurred after the property, plant and equipment
have been put into operation, such as repairs and maintenance, are normally charged to the Statement of
Profit and Loss in the period in which the costs are incurred. Subsequently Property, Plant and
Equipment are carried at cost less accumulated depreciation and accumulated impairment losses, if any.
Gain/Ioss on disposal: The gain or loss arising on the disposal or retirement of an item of property, plant
and equipment is determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognized in the Statement of Profit and Loss on the date of disposal or retirement.
Depreciation; Property, Plant and Equipments except free hold land is depreciated on Straight Line
Method in the manner prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions
and deletion during the year has been provided on pro-data basis with refernce to the month of addition
and deletion.
Capital work in progress
The expenses relating to the construction of building is capitaLised at the time when they are incurred.
And when the asset would be completed, the same shaLL be transferred to asset a/ c.
4.8 Leases
Lease income from operating leases where the Company is a lessor is recognised in income on a straight¬
line basis over the lease term unless the receipts are structured to increase in line with expected general
inflation to compensate for the excepted inflationary cost increases. The respective leased assets are
included in the balance sheet based on their nature.
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight¬
line basis over the lease term unless either (a) another systematic basis is more represantative of the time
pattern of the user's benefit even if the paj'ments to the lessors are not on that basis, or (b) the payments
to the lessor are structured to increase in line with expected general inflation to compensate for the
lessor's expected inflationary cost increases. In the event that lease premiums are paid to enter into
operating leases, such premiums are recognised as a prepaid expenditure and amortised over the period
of lease.
Financial lease transactions entered are considered as financial arrangements and the leased assets are
capitalised on an amount equal to the present value of future lease payments and corresponding amount
is recognised as a liability. The lease payments made are apportioned between finance charge and
reduction of outstanding liability in relation to leased asset.
Leasehold land has been amortised over the remaining period of lease term
4.9 Intangible Assets
IntangibLe Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less
accumulated amortisation/depletion and impairment loss, if any. Such cost includes purchase price,
borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the
intended use,
4.10 Inv estments in Subsidiary'
The Company has invested in shares of its subsidiary Mayur Global Private Limited of whose 52% shares
are in hand of Mayur Leathers Product Limited.
4.11 Borrowing
Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost.
Transaction cost is amortized over the period of Borrowing using straight line method
4.12 Employee retirement benefits
a. Short - term Employee Benefits;-
All employee benefits payable wholly within twelve months of rendering the service are classified as
short-term employee benefits and they are recognised in the period in which the employee renders the
related services
The Company recognises the undiscounted amount of short term employee benefits expected to be paid
in exchange for services rendered as a liability after deducting any amount already paid,
b. Post-employ merit Benefits:-
(a) Defined Contribution Plan; Contribution to superannuation fund is recognised as an expense in tire
Statement of Profit & Loss as it is incurred. There are no other obligations. Eligible employees receive
benefits from a provident fund which is a defined contribution plan. Both the eligible employee and the
Company make monthly contributions to the provident fund plan equal to a specified percentage of tire
covered employee's salary.
4.13 Earn mgs per share
• Basic earnings per share is computed using the net profit for the year attributable to the shareholders' and
weighted average number of shares outstanding during the year.
* Diluted earnings per share is computed using the net profit for the year attributable to the shareholder'
and weighted average number of equity and potential equity shares outstanding during the year, except
where the result would be anti-dilutive.
4,14 Impairment of assets
An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment
and the carrying amount of the asset exceeds its recoverable amount (i,e, the higher of the fair value less
cost to sell and value in use). The carrying amount is reduced to the recoverable amount and the
reduction is recognized as an impairment loss in the Statement of Profit and Loss. Any impairment gain
loss is transfarred to profit and loss.
|