Company Overview
Mayur Leather Products Limited (Scrip Code: 531680, ISIN: INE799E01011) filed its Annual Report and Notice of the 41st Annual General Meeting for FY 2025-26, disclosing a complex financial and operational situation.
Financial Performance
FY26 Results: The company reported a significant turnaround with standalone net profit of ₹127.37 lakhs (FY25: ₹9.05 lakhs) and consolidated profit of ₹112.40 lakhs, despite generating zero revenue from operations for the second consecutive year. The profit was entirely driven by other income including brokerage income of ₹66.00 lakhs and miscellaneous balance write-off of ₹31.18 lakhs, along with exceptional profit of ₹67.82 lakhs from fixed asset sales.
Balance Sheet Position: Accumulated losses stood at ₹616.41 lakhs as of March 31, 2026. The company showed improved cash position at ₹88.48 lakhs (PY: ₹12.23 lakhs) but reported significant loans to other parties of ₹209.40 lakhs. Borrowings remained substantial at ₹387.64 lakhs, primarily secured.
Operational and Legal Challenges
NPA Status: The company was declared a Non-Performing Asset by Canara Bank in February 2023, leading to auction of multiple secured assets including land and buildings at Manpura RIICO and subsidiary assets. The company has challenged these auctions at the Debt Recovery Tribunal, contending they were conducted at undervalued prices.
Auditor Qualifications: Statutory auditors issued an adverse opinion with 13 qualifications covering unavailable bank statements, continued recognition of auctioned assets, non-transfer of unpaid dividend to IEPF, undisclosed deferred tax liability, and multiple compliance failures including non-payment of statutory dues totaling ₹36.37 lakhs.
Corporate Developments
Board Changes: Multiple management changes occurred including resignation of statutory auditors M/s. Jain Paras Bilala & Co. and appointment of new auditors YG & Associates. The board saw significant reconstitution with new independent directors and company secretary appointments.
Business Diversification: The company amended its Memorandum of Association to expand into consultancy, advisory, legal and management support services, BPO, KPO, LPO, and IT-enabled services, shifting from its traditional leather business.
Shareholding Changes: Major promoter restructuring occurred with Rajendra Kumar Poddar reducing his holding from 23.33% to 0%, while Umesh Hansrajani emerged as a new significant shareholder with 12.77% stake.
Annual General Meeting
The 41st AGM is scheduled for September 29, 2026, at 2:00 PM IST in Jaipur, to adopt accounts, reappoint directors, and appoint new statutory auditors. Remote e-voting will be available from September 26-28, 2026, with cut-off date of September 22, 2026 for voting eligibility.
Going Concern Assessment
Despite material uncertainties highlighted by auditors regarding bank NPA status, asset auctions, and accumulated losses, management believes the company can continue as a going concern based on business diversification plans, promoter financial support, and settlement discussions with vendors.