We have audited the accompanying financial statements of MAYUR FLOORINGS LTD. (“the
Company”), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss
(including other comprehensive Income), the statement of Cash Flow and the statement of Changes in
Equity for the year then ended and a summary of the significant accounting policies and notes to financial
statement and other explanatory information (herein after referred to as “financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Companies Act, 2013 (“the Act”) in
the manner so required and give a true and fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2025, and its profit and total comprehensive income, changes
in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing
specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to
our audit of the standalone financial statements under the provisions of the Act and the Rules made
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters:
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Description of Key Audit Matter
|
Revenue Recognition: Sales of Granites, Marbles and Tiles
Refer to the accounting policies in the financial statements.
Significant Accounting Policy 2.3 - Revenue Recognition and Note 2.3 to the financial
statements - Revenue from Operations
|
|
Key audit matter
|
How the matter was addressed in our audit
|
|
Revenue from the sale of granite marbles and
tiles is a significant component of the entity's
financial performance. Due to the volume of
transactions, varying sales terms (e.g., ex¬
works, delivered, credit terms), potential for
discounts, returns, and the timing of transfer of
control to customers, there is an inherent risk
that revenue may not be recognized in the
correct accounting period or at the appropriate
amount. This is particularly relevant for
largescale projects or sales made close to the
yearend, where the timing of delivery and
acceptance can impact revenue cut-off.
|
Our audit procedures included the following:
Testing of design and operating
effectiveness of controls:
• Understood and evaluated the design and
implementation of management controls
and other key controls relating to
recognition of management fee.
• Test checked the operating effectiveness of
management controls, and other key
controls over recognition of management
fee.
• Involved our information technology
(“IT”) specialists to test general
information technology controls of the
systems used for computation and
recording of management fees. Further,
tested IT controls with respect to input and
changes of management fee rates and logic
of computation.
Substantive tests
• Evaluated recognition of revenue in respect
of management fee based on the
requirements of Ind AS 115.
• Test checked management fee rates were
approved by authorized personnel.
• Test checked key inputs into the IT systems
back to source documents, and re¬
performed on a sample basis.
• Test checked the management fee invoices
and reconciled with the accounting
records.
|
| |
|
• Test checked the receipts of management
fee income in the bank statements.
• Obtained and read the quarterly concurrent
auditor reports on daily net assets value
computation of the Management Fees.
• Evaluated the adequacy of disclosures
relating to the management fee in the
financial statements.
|
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board’s
Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance
and Shareholder’s Information, but does not include the financial statements and our auditor’s report
thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information; we are required to report that fact. We have nothing to report in this regard.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India including the Indian
Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible
for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these standalone financial statements.
A further description of our responsibilities for the audit of the financial statements is included in
“Appendix I” of this auditor’s report.
For BANSILAL SHAH & CO
Chartered Accountants
FRN. No: 000384W
-Sd/-
Dhruv Shah
Partner
Membership No.: 223609
Place: Udaipur
Date: 29/05/2025
UDIN: 25223609BMIBQV3658
|