Financial Results Overview

Standalone Results (Year Ended March 31, 2026):

  • Total Revenue: ₹97.24 lakhs (entirely from Other Income; Revenue from Operations: ₹0.00)
  • Total Expenses: ₹37.68 lakhs
  • Profit Before Tax: ₹127.37 lakhs
  • Net Profit After Tax: ₹127.37 lakhs
  • Earnings Per Share (Basic & Diluted): ₹2.63
  • Total Assets: ₹1,366.95 lakhs
  • Total Liabilities: ₹1,155.26 lakhs
  • Net Worth: ₹211.69 lakhs
  • Accumulated Losses: ₹616.41 lakhs

Quarter Ended March 31, 2026 (Standalone):

  • Net Profit After Tax: ₹42.65 lakhs
  • EPS: ₹0.89

Consolidated Results (Year Ended March 31, 2026):

  • Net Profit After Tax: ₹112.40 lakhs
  • EPS: ₹2.32
  • Total Assets: ₹1,392.86 lakhs

Auditor's Adverse Opinion

Jain Paras Bilala & Co., Statutory Auditors, issued an adverse opinion on both standalone and consolidated financial results citing multiple material uncertainties:

Key Audit Qualifications:

1. Missing Bank Records: Bank statements and confirmations not provided for four accounts totaling ₹5,09,859 (PNB New Delhi: ₹553; SBBJ ICD Jaipur: ₹71,684; MLP Gratuity Fund: ₹10,000; Unpaid Dividend: ₹4,26,622)

2. Auctioned Asset Recognition: Company continues to recognize Land & Building valued at ₹155.16 lakhs and corresponding liabilities despite assets being auctioned by Canara Bank in August 2024 after NPA classification in February 2023. Matter pending before Debt Recovery Tribunal.

3. Unpaid Dividend Non-Transfer: Unclaimed dividends for FY 2013-14, 2014-15, and 2015-16 not transferred to Investor Education and Protection Fund as required under Section 125 of Companies Act, 2013.

4. Deferred Tax Disclosure: Deferred tax liability of ₹14.30 lakhs recognized without supporting calculations or documentation.

5. Employee Benefits Non-Compliance: No actuarial valuation performed for Gratuity and Leave Encashment as required under Ind AS 19.

6. Missing Confirmations: Balance confirmations not obtained for numerous items including:

  • Trade Receivables: ₹35.98 lakhs
  • Loans and Advances: ₹363.09 lakhs
  • Other Financial Assets: ₹222.30 lakhs
  • Trade Payables: ₹220.55 lakhs
  • Non-Current Borrowings: ₹370.29 lakhs
  • Other Liabilities: ₹258.49 lakhs

7. Subsidiary Investment Valuation: No fair valuation performed for investment in Mayur Global Private Limited (13,56,000 equity shares) as required under Ind AS 27 and 113.

8. Doubtful Security Deposits: Security deposits of ₹34.75 lakhs with RIICO, JVVNL, BSNL continue to be recognized despite uncertainty of recovery after land auction.

9. Inventory Verification: No physical verification records for inventory of ₹67.35 lakhs.

10. Unreconciled Accrued Interest: Accrued interest of ₹1.32 lakhs on FDR not reconciled; no FDR shown in books.

Material Uncertainty Regarding Going Concern

The auditor highlights material uncertainties about the company's ability to continue as a going concern due to:

  • Zero revenue from operations for current and previous financial years
  • No manufacturing activities conducted
  • Accumulated losses of ₹616.41 lakhs
  • Borrowings classified as NPA by Canara Bank in February 2023
  • Outstanding undisputed statutory liabilities of ₹36.37 lakhs

Management believes the going concern basis is appropriate based on:

  • Business diversification plans and amended MOA
  • Promoter financial support through advances
  • Ongoing vendor settlement discussions
  • Expected improvement in future operations

Canara Bank NPA and DRT Dispute

The company defaulted on loan obligations of approximately ₹320 lakhs to Canara Bank during FY 2022-23. In August 2024, the bank auctioned land belonging to subsidiary Mayur Global Private Limited (provided as collateral) for approximately ₹226 lakhs and appropriated the proceeds. The company has challenged this auction before Debt Recovery Tribunal, claiming the sale was at below forced sale valuation. During FY26, the company transferred ₹213.60 lakhs to the subsidiary as provisional adjustment for this transaction.

Other Key Disclosures

  • The company does not qualify as a Large Corporate under SEBI debt securities framework
  • Exceptional items of ₹67.82 lakhs represent profit on sale of fixed assets
  • No current tax expense recognized due to carried forward losses and unabsorbed depreciation
  • Company operates in a single segment (leather products) with operations solely in India
  • Board meeting duration: 2:00 PM to 9:30 PM on May 28, 2026