Mauria Udyog Limited , an ISO 14001 & OHSAS 18001 certified company specializing in LPG cylinders, valves, and regulators, has found itself embroiled in a family dispute that has escalated to legal proceedings and potential regulatory concerns.

FIR Filed Against Managing Director

The company disclosed that an FIR (First Information Report) has been registered against its Managing Director, Navneet Kumar Sureka, by his father and fellow promoter, Vishnu Kumar Sureka. The complaint was filed at the Sector-58 Faridabad Police Station, with charges levied under multiple sections of BNS, including 318(4), 336(3), 338, 340, 61, and 126.

Managing Director Denies Allegations

In a letter to the company, Navneet Kumar Sureka vehemently denied all allegations, describing them as "false and fabricated." He contends that he is the real victim in what appears to be a property dispute, suggesting that the complaint is influenced by his younger brother, Akhil Kumar Sureka.

Navneet Kumar Sureka stated, "This is a false & fabricated story just to usurp my property/project by the complainants under the influence of my younger brother." He further added that he had previously provided clarifications and relevant documents to the police, who had initially assured him that no case would be registered.

Unauthorized Share Sales Reported

Adding another layer of complexity to the situation, the company reported that Vishnu Kumar Sureka has been selling equity shares held by Vishnu Kumar Sureka (HUF) in the open market over the past 10-15 days. These transactions were allegedly conducted without prior intimation to the company or obtaining pre-clearance from the Compliance Officer, potentially raising regulatory concerns.

Implications for Mauria Udyog

This family dispute and the associated legal and regulatory issues could have significant implications for Mauria Udyog Limited. The company may face increased scrutiny from regulators and shareholders alike.

As the situation unfolds, stakeholders will be closely watching how the company manages these challenges and maintains its corporate governance standards. The outcome of the legal proceedings and any potential regulatory actions could have a substantial impact on the company's operations and market perception.

Mauria Udyog Limited has stated that it has informed the relevant stock exchanges about these developments, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Mauria Udyog , a manufacturer of LPG cylinders, valves, and regulators, has reported a significant increase in profit for the first quarter, despite facing auditor qualifications on its financial statements.

Financial Highlights

The company's standalone financial results for the quarter show:

On a consolidated basis, Mauria Udyog reported:

Auditor Qualifications

Despite the strong financial performance, the company's auditors, NKSC & Co., have raised several concerns in their review report:

1. Fair Valuation of Investments: The auditors noted that Mauria Udyog has not obtained or carried out fair valuation of its unquoted equity shares classified as Fair Value through Other Comprehensive Income (FVTOCI).

2. Expected Credit Loss Model: The company has not used the expected credit loss model to assess impairment on trade receivables as required by Ind AS 109. However, a provision of ₹327.82 crore has been made against doubtful trade receivables.

3. Supreme Court Order: The auditors highlighted an ongoing issue related to transactions with Amrapali Group of Companies. The Supreme Court had directed Mauria Udyog and associated entities to deposit ₹167 crore. The company has charged ₹15 crore to its profit and loss statement but has not provided for any additional liability or shown it as a contingent liability.

SEBI Interim Order

The Securities and Exchange Board of India (SEBI) has issued an interim order restraining Mauria Udyog from accessing the securities market. SEBI has also directed the company to deposit ₹26.20 crore jointly with other notices. The company has filed an appeal against this order with the Securities Appellate Tribunal (SAT).

Management Response

Mauria Udyog's management believes that the SEBI order is untenable and has not recorded any liability for the amount sought in the interim order. The company has submitted its reply and is awaiting further proceedings.

Segment Performance

The manufacturing segment, which includes LPG cylinders, valves, and regulators, continues to be the primary revenue generator for Mauria Udyog. For Q1 FY2025-26, the manufacturing segment reported:

• Revenue: ₹1,337.54 crore
• Segment Results: ₹106.99 crore

Outlook

While Mauria Udyog has shown strong financial growth, the auditor qualifications and regulatory challenges pose significant concerns for investors. The company's ability to address these issues and maintain its growth trajectory will be crucial in the coming quarters.

Investors and stakeholders are advised to closely monitor the developments regarding the SEBI order and the company's compliance with accounting standards, as these factors may impact Mauria Udyog's financial position and market performance in the future.