Clerical Errors Identified

  • Firm Registration Number (FRN) of Statutory Auditor incorrectly mentioned as 011046C in both Standalone and Consolidated Limited Review Reports (should be 025444C)
  • Name of previous audit firm inadvertently mentioned in Consolidated Limited Review Report instead of current audit firm YG & Associates
  • Company confirms these errors are purely clerical and do not impact financial results or review conclusions

Auditor's Limited Review Report - Standalone Financial Results

Reporting Period: Quarter and half year ended September 30, 2026

Regulatory Reference: Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Accounting Framework: Indian Accounting Standard 34 (Ind AS 34)

Review Standard: SRE 2410 issued by ICAI

Adverse Conclusion

The auditor expressed an adverse conclusion stating the financial results have not been prepared in accordance with Indian Accounting Standards due to significance of matters detailed in Annexure-A. This continues the adverse conclusion from the quarter and year ended June 30, 2026.

Critical Financial Highlights

  • Revenue from Operations: ₹0.00 lakhs for Q2 FY27 and previous financial year
  • Manufacturing Activities: No operations during current quarter and previous financial year
  • Accumulated Losses: ₹629.44 lakhs as at September 30, 2026
  • Going Concern Uncertainty: Material uncertainties exist regarding company's ability to continue as going concern

Land Transaction and DRT Proceedings

  • Holding company transferred ₹213.60 lakhs to subsidiary Mayur Global Private Limited during FY26 as provisional adjustment for land sale executed by Canara Bank
  • Land belonging to subsidiary sold for ₹226 lakhs in August 2024 due to holding company's loan default in FY2022-23
  • Company has challenged the sale before Debt Recovery Tribunal (DRT), matter pending adjudication
  • Final financial impact cannot be determined pending DRT outcome

Previous Auditor Reports

  • Comparative financial results for Q2 FY25 reviewed by predecessor auditor with adverse conclusion (November 14, 2025)
  • FY26 financial statements audited by predecessor auditor with adverse opinion (May 28, 2026)

Annexure A - Material Issues Identified

1. Missing Bank Records

Bank statements and confirmations not provided for accounts totaling ₹5,03,859:

  • PNB New Delhi: ₹553
  • SBBJ ICD Jaipur: ₹71,684
  • MLP Gratuity Fund: ₹10,000
  • Unpaid Dividend accounts: ₹4,26,622

2. Auctioned Asset Recognition Issues

  • Canara Bank classified borrowings as NPA in February 2023 and auctioned collateral securities
  • Company continues to recognize Land & Building (including right of use asset) amounting to ₹154.08 lakhs and charges depreciation
  • No legal opinion or evidence supporting continued recognition provided
  • Company disposed substantially all fixed assets for ₹166.73 lakhs during FY26 without providing no-dues certificates for verification

3. Dividend Non-Compliance

  • Unclaimed dividend for FY 2013-14 (Final), 2014-15 (Final & Interim), 2015-16 (Final & Interim) not transferred to IEPF
  • No provision made for consequential financial impacts of non-compliance

4. Deferred Tax Liability Disclosure

  • Deferred tax liability of ₹14.30 lakhs recognized without providing calculation details or basis
  • Specific timing differences and corresponding line items not disclosed

5. Employee Benefits Non-Compliance

  • Company failed to provide actuarial valuation for Gratuity and Leave Encashment as required under Ind AS-19
  • Accuracy and completeness of employee benefit liabilities cannot be verified

6. Balance Confirmations and ECL Issues

No balance confirmations provided for:

  • Trade Receivables: ₹35.98 lakhs
  • Loans and advances: ₹363.09 lakhs
  • Other Current Assets: ₹15.31 lakhs
  • Other financial assets: ₹222.30 lakhs
  • Trade Payables: ₹220.55 lakhs
  • Non-Current Borrowings: ₹370.29 lakhs
  • Other Non-Current Financial Liabilities: ₹144.85 lakhs
  • Other Current Liabilities: ₹125.60 lakhs

No Expected Credit Loss (ECL) policy documented or implemented despite recovery uncertainties

7. Subsidiary Investment Valuation

  • Company holds 13,56,000 equity shares in Mayur Global Private Limited
  • No fair valuation performed in accordance with Ind AS 27 and Ind AS 113
  • Carrying value appropriateness cannot be assessed

8. Security Deposit Recoverability

  • Security deposits of ₹34.75 lakhs given to RIICO, JVVNL, BSNL etc.
  • Deposits made for utilities on land auctioned by Canara Bank after NPA classification
  • No confirmations from parties or provisioning against deposits

9. Inventory Valuation Issues

  • No records of physical verification by management
  • Inventory balance of ₹67.35 lakhs carried at same value for extended period without impairment assessment
  • Accuracy, completeness and valuation cannot be verified

10. Accrued Interest Reconciliation

  • Accrued interest on FDR of ₹1.32 lakhs under Other Current Financial Assets
  • FDR was for BG limit from Canara Bank but no FDR reflected in books
  • No statement or confirmation from Canara Bank provided

Consolidated Financial Results Review

Scope: Includes Mayur Leather Products Limited and subsidiary Mayur Global Private Limited

Subsidiary Financial Information (Mayur Global Private Limited)

  • Total Revenue: ₹0.00 lakhs for Q2 FY27
  • Total Assets: ₹723.72 lakhs as at September 30, 2026
  • Total Profit after Tax: ₹126.29 lakhs for Q2 FY27 (before elimination of inter-group transactions)

Consistent Adverse Findings

All material issues identified in standalone financial results equally apply to consolidated results with same significance and impact.

Signatories and Authentication

Company Representative: Monu Toshniwal, Company Secretary (Membership No: A26167)

Auditor: YG & Associates (FRN: 025444C), represented by CA. Yash Gupta, Partner (Membership No: 439630)

Place: Jaipur

Date: 04.11.2026 (Review Reports), 12.11.2026 (Clarification Letter)