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Annual Report Summary

AKNR & Co., Chartered Accountants, issued an independent auditor's report on the standalone financial statements of Mayasheel Retail India Limited for the year ending March 31, 2022. The firm expressed an opinion that the financial statements provide a true and fair view in conformity with accounting principles generally accepted in India and comply with the Companies Act, 2013.

Responsibilities of Management and Auditors

The company's Board of Directors is responsible for preparing and presenting standalone financial statements that give a true and fair view of the financial position, performance, and cash flows in accordance with the Companies Act, 2013, including the maintenance of accounting records and internal financial controls. Management is also responsible for assessing the company's ability to continue as a going concern. The auditor's responsibility is to express an opinion on the financial statements based on the audit, which involves obtaining reasonable assurance about whether the financial statements are free from material misstatement.

Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order, 2020 ('the Order'), the auditors have provided a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable, in "Annexure A". The auditors have also sought and obtained all necessary information and explanations for the audit. The company has kept proper books of account as required by law, and the financial statements are in agreement with the books of account. The standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

"Annexure A" to the Independent Auditors' Report

The company has maintained proper records for property, plant, equipment, and intangible assets, and these assets have been physically verified at reasonable intervals. The company has not revalued any of its property, plant, equipment, or intangible assets during the year. Regarding inventory, physical verification has been conducted at reasonable intervals, and no discrepancies of 10% or more were noticed. The company has not defaulted in repayment of loans or borrowings, and all term loans were applied for the purposes for which they were obtained. The company has converted an outstanding loan of directors into fully paid-up equity shares and has also issued equity shares through private placement, complying with relevant sections of the Companies Act, 2013.

"Annexure B" to the Independent Auditors' Report

The firm also audited the internal financial controls over financial reporting of Mayasheel Retail India Limited and expressed an opinion that the company has an adequate internal financial controls system over financial reporting and that such controls were operating effectively as of March 31, 2022.

Financial Position

As of March 31, 2022, the company's share capital was ₹2,950.00 Lakhs, and reserves and surplus was ₹(297.80) Lakhs. Non-current liabilities included Long Term Borrowings of ₹712.01 Lakhs and Long Term Provision of ₹74.71 Lakhs. Current liabilities included Short-term borrowings of ₹384.98 Lakhs and Trade payables of ₹10,240.99 Lakhs. Property, plant, and equipment were valued at ₹2,364.87 Lakhs, and intangible assets at ₹31.96 Lakhs. Inventories were valued at ₹10,959.01 Lakhs.

Statement of Profit & Loss

The company's revenue from operations (net) for the year ended March 31, 2022, was ₹16,504.43 Lakhs, and other income was ₹979.67 Lakhs. Total expenses were ₹16,264.98 Lakhs, resulting in a profit before tax of ₹1,219.12 Lakhs. After accounting for a deferred tax credit of ₹(261.50) Lakhs, the net profit for the year was ₹957.62 Lakhs.

Cash Flow Statement

Net cash flow from operating activities was ₹385.69 Lakhs. Net cash flow from investing activities was ₹(131.93) Lakhs. Net cash flow from financing activities was ₹(360.80) Lakhs. The cash and cash equivalents at the end of the period were ₹33.96 Lakhs.

Significant Accounting Policies

The financial statements are prepared in accordance with Indian GAAP, with accounting policies consistently applied. Tangible fixed assets are stated at cost less accumulated depreciation, and depreciation is provided on the "Written Down Value Method." Inventories are valued as per the "Retail Method" of AS-2.

Share Capital Details

The authorized share capital is 50,000,000 equity shares of ₹10 each. The issued, subscribed, and fully paid-up share capital is 29,500,000 equity shares of ₹10 each.

Related Party Transactions

Significant transactions with related parties, including director's remuneration and sitting fees, are disclosed. Balances outstanding with related parties are also detailed.

Other Observations

The auditor noted there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments. The company did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses and that there were no amounts required to be transferred to the Investor Education and Protection Fund.

The report is signed by Alok Kumar Gupta, Partner, AKNR & Co., Chartered Accountants, with Firm's Registration No.: 023076C, and Membership No. 402362. The report is dated 19-09-2022, Noida.