MLMayur Leather Products531680Quarterly results

Board approves Q2/H1 results with adverse auditor conclusion; independent director resigns

Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026.

By ScoutQuest · Wed 4 Nov 2026, 10:56 PM IST · 4 min read

PAT change YoY

-11.13 (+42.7%)

Period

30.09.2026 Reviewed

Results and the auditor's view

• The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026.
• The statutory auditor, YG & Associates (FRN 025444C), issued a limited review report with an adverse conclusion: the accompanying statement "has not been prepared in accordance with the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India because of the significance of matters stated in Annexure A".
• The auditor notes that its report on the standalone results for the quarter and year ended June 30, 2026 also contained an adverse conclusion on the same matters.

What the auditor flagged on operations

• No revenue from operations was generated during the quarter and half year ended September 30, 2026, as well as the previous financial year.
• No manufacturing activities were carried out during the current quarter and the previous financial year.
• Accumulated losses were Rs. 629.44 lakhs as at September 30, 2026.
• These conditions indicate material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. Management holds the going concern basis appropriate, dependent on improvement in operations, settlement with vendors and additional fund infusion by the promoters. The auditor's conclusion is not modified on this matter.

Key points from Annexure A

• Bank statements and confirmations were not provided for four accounts: PNB New Delhi Rs. 553, SBBJ ICD Jaipur Rs. 71,684, MLP Gratuity Fund Rs. 10,000 and an Unpaid Dividend account Rs. 4,26,622.
• Canara Bank classified the company's borrowings as NPA in February 2023 and auctioned the collateral. Pending a challenge before the Debt Recovery Tribunal, the company continues to recognise Land & Building (including right of use asset) of Rs. 154.08 lakhs and charge depreciation on it.
• During the year ended March 31, 2026, the company disposed of substantially all of its fixed assets for an aggregate sale consideration of Rs. 166.73 lakhs.
• Unclaimed dividend for FY 2013-14, 2014-15 and 2015-16 was not transferred to the Investor Education and Protection Fund.
• A deferred tax liability of Rs. 14.30 lakhs is recognised without details of the basis and timing differences.
• Actuarial valuation of gratuity and leave encashment required under Ind AS 19 was not provided.
• No balance confirmations were given for Trade Receivables Rs. 35.98 lakhs, Loans and advances Rs. 363.09 lakhs, Other Current Assets Rs. 15.31 lakhs, other financial assets Rs. 222.30 lakhs, Trade Payables Rs. 220.55 lakhs, Non-Current Borrowings Rs. 370.29 lakhs, Other Non-Current Financial Liabilities Rs. 144.85 lakhs and Other Current Liabilities Rs. 125.60 lakhs; no Expected Credit Loss has been created.
• The company holds 13.56 lakh equity shares in its subsidiary, Mayur Global Private Limited, for which no fair valuation was performed.
• Security deposits of Rs. 34.75 lakhs relate to utilities on land that was hypothecated to Canara Bank and has since been auctioned.
• Inventory of Rs. 67.35 lakhs has no records of physical verification and no impairment assessment.
• Accrued interest on FDR of Rs. 1.32 lakhs is shown, but no Canara Bank statement or confirmation was furnished for it.

Related party land matter noted in the review

• The holding company had transferred Rs. 213.60 lakhs to the subsidiary during the year ended March 31, 2026 towards provisional adjustment relating to the sale of its land executed by Canara Bank.
• Land belonging to the subsidiary was sold in August 2024 for Rs. 226 lakhs. The sale is challenged before the Debt Recovery Tribunal and is pending adjudication.

Subsidiary figures in the consolidated review

• Mayur Global Private Limited (subsidiary) shows Total Revenue of Rs. 0.00 Lakhs, Total Assets of Rs. 723.72 Lakhs and Total Profit After Tax of Rs. 126.29 Lakhs for the quarter and half year ended September 30, 2026, before elimination of inter-group transactions.

Other decisions taken at the meeting

• The board took note of the resignation of Ms. Jyoti Soni (DIN 10710046) as Independent Director with effect from the closure of business hours on November 04, 2026. She also ceases to be Chairperson of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, and the committees have been reconstituted. The company received her confirmation that there are no material reasons other than those mentioned in her resignation letter dated November 04, 2026.
• The board approved shifting the registered office from G-6 Ground Floor, S-25, Central Spine Balaji Majestic Heights, Jagatpura, Jaipur-302025 to Plot No. 199, 1ST Floor, Giriraj Nagar, Isckon Road, Mansarovar, Jaipur, Rajasthan, India, 302020, with effect from November 15, 2026.
• The trading window for designated persons and their immediate relatives opens from Friday, November 06, 2026.
• The meeting commenced at 02:00 P.M. and concluded at 08:25 P.M.

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