Mayur Leather Products Limited has re-submitted its Limited Review Report for consolidated financial results for the quarter ended December 2025 following a regulatory compliance query from the stock exchange.

Regulatory Compliance Issue

The company received a query from BSE stating that the Limited Review Report for consolidated results was not in the prescribed SEBI format. Specifically, the report lacked Point No. 4 as required under Securities and Exchange Board of India Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019.

The company clarified that except for the inclusion of Point No. 4 in the Limited Review Report, no other changes have been made in the previously submitted disclosure or the financial results.

Auditor's Adverse Remarks

The independent auditor's limited review report contains significant adverse observations across multiple areas. The auditor stated that the financial statements have not been prepared in accordance with Indian Accounting Standards due to material and pervasive issues.

Key Audit Concerns

Bank Account Documentation: The company failed to provide bank statements for several accounts, including:

Going Concern Issues: The auditor highlighted material uncertainties about the company's ability to continue as a going concern, noting:

• Operating losses in recent years
• No revenue from operations in current quarter and last financial year
• Plant, property and equipment relocated after land detachment by Canara Bank
• Non-filing of Income Tax Returns for FY 2022-23 and 2023-24

Financial Position Highlights

The company's financial statements show significant challenges across multiple parameters:

Land Sale Dispute

A significant matter involves the sale of land belonging to subsidiary Mayur Global Private Limited by Canara Bank in August 2024 for Rs. 226.00 lakhs due to the holding company's loan default. The company has transferred Rs. 213.60 lakhs to the subsidiary as provisional adjustment and challenged the sale before the Debt Recovery Tribunal (DRT).

Compliance and Accounting Issues

The auditor identified multiple non-compliance areas:

• Non-transfer of unpaid dividends to Investor Education and Protection Fund
• Lack of impairment assessment for PPE worth Rs. 115.96 lakhs
• Non-compliance with employee benefit valuation requirements
• Absence of Expected Credit Loss policy
• Missing physical verification of inventory worth Rs. 67.35 lakhs

Management Response

The company requested stakeholders to disregard the earlier disclosure dated February 14, 2026, and consider the revised disclosure incorporating the required SEBI format compliance. Management maintains that necessary accounting adjustments arising from the DRT proceedings will be recognized when the matter reaches finality.

Mayur Leather Products Limited has received a disclosure from its promoter and Executive Director Rajendra Kumar Poddar regarding the complete divestment of his shareholding in the company. The transaction represents a significant change in the company's promoter holding structure.

Complete Stake Divestment Details

Rajendra Kumar Poddar executed the sale of his entire equity holding through open market transactions on March 16, 2026. The disclosure was made under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Shareholding Pattern Changes

The transaction resulted in a complete exit of the promoter from his direct shareholding in the company. Prior to this sale, Poddar held 5,47,761 equity shares representing 11.33% of the company's total voting capital.

Company Capital Structure

Mayur Leather Products Limited maintains its equity share capital structure unchanged following this transaction. The company's total equity share capital remains at Rs. 4,83,48,000, comprising 48,34,800 equity shares of Rs. 10 each.

Regulatory Compliance

The disclosure identifies Amita Poddar and Akhilesh Poddar as Persons Acting in Concert (PAC) with the seller. The company's shares are listed on BSE Limited, and all regulatory requirements under the takeover regulations have been fulfilled through proper disclosure to the stock exchange and the company.

Rajendra Kumar Poddar, who served as both promoter and Executive Director of the company, has formally communicated this divestment to BSE Limited and the company's management, ensuring complete transparency in the transaction process.