### **Corporate Overview and Historical Context** Incorporated in **1987**, Mayur Leather Products Limited is a publicly held Indian entity that has historically specialized in the **safety leather footwear** segment. The company’s core business model involves the manufacturing and export of **industrial shoes and shoe uppers**. While it has traditionally positioned itself as a provider of international-standard products with a focus on **technology absorption** and **self-reliance**, the company is currently navigating a period of extreme operational and financial transition. The company holds a **52.15%** stake in its subsidiary, **Mayur Global Private Limited**, which operates in the same line of business. --- ### **Strategic Pivot: Diversification into High-Growth Services** In **August 2025**, the Board of Directors approved a transformative alteration to the **Main Object Clause** of the Memorandum of Association (MOA). This marks a strategic pivot away from traditional manufacturing toward high-growth service sectors to ensure long-term viability. | Segment | Proposed Activities & Services | | :--- | :--- | | **Professional Services** | Consultancy, Advisory, Taxation, Finance, and Corporate Affairs. | | **Human Capital** | Recruitment, Staffing, Outsourcing, Training, and Skill Development. | | **IT & Operations** | BPO, KPO, LPO, IT-enabled services (ITeS), and Customer Support Centers. | | **Knowledge Services** | Research & Analytics, E-learning platforms, Seminars, and Workshops. | --- ### **Operational Status and Manufacturing Strategy** The company’s manufacturing operations have faced a complete cessation since **February 2023**. Historically, the operational strategy was built on four pillars: * **Technology Absorption:** Relying on internal advancements rather than imported technology (no technology imports in the last **three financial years**). * **Process Optimization:** Continuous improvement to achieve **cost reduction** and enhanced product quality. * **Energy Efficiency:** Prioritizing the delivery of solutions at **minimum cost** while maximizing energy performance. * **Resource Monopoly:** The company notes a unique competitive advantage in Rajasthan due to a monopoly in **Rock Phosphate mining**, which has served as a primary revenue source. --- ### **Financial Distress and Solvency Risks** The company is currently classified as a **Non-Performing Asset (NPA)** by Canara Bank following a default on loan obligations totaling approximately **3.2 crore** in **FY 2022-23**. * **Asset Seizure:** Under the **SARFAESI Act, 2002**, Canara Bank auctioned three major properties between **November 2023** and **June 2024**, including land belonging to the subsidiary sold for **2.26 crore**. * **Going Concern Uncertainty:** Auditors have challenged the "Going Concern" status due to the cessation of manufacturing and the liquidation of primary assets. * **Litigation:** The company has challenged these auctions before the **Debt Recovery Tribunal (DRT)**, alleging undervalued forced sale valuations. * **Audit Qualifications:** Auditors issued **Adverse Opinions** due to missing records and lack of balance confirmations for: * **Trade Receivables:** **3.58 crore** * **Loans and Advances:** **3.58 crore** * **Trade Payables:** **2.82 crore** * **Inventory & PPE:** No physical verification was conducted for inventory valued at **67.35 Lakhs**, and no impairment assessment was performed on remaining Property, Plant, and Equipment (PPE) of **1.16 crore**. --- ### **Capital Structure and Equity Profile** Despite operational challenges, the company maintains a stable authorized and paid-up capital framework as of **March 31, 2025**. | Capital Category | Value (INR) | Number of Shares | Face Value | | :--- | :--- | :--- | :--- | | **Authorized Capital** | **5,80,00,000** | **58,00,000** | **Rs. 10/-** | | **Issued, Subscribed & Paid-up Capital** | **4,83,48,000** | **48,34,800** | **Rs. 10/-** | * **Equity Structure:** Supported by **48.34 Lakh** fully paid-up equity shares. * **Liquidity Management:** While the parent was declared NPA, the company describes itself as "cash-rich" in terms of managing remaining excess funds via the **Government of Rajasthan PD account**. --- ### **Regulatory Compliance and Governance Recovery** The company is executing a structured recovery plan to normalize its standing with regulators and the **Bombay Stock Exchange (BSE)**. * **Trading Status:** BSE approved the revocation of the suspension in trading in **September 2025** (following a suspension that began **June 12, 2023**). * **Board Reconstitution:** In **July 2024**, the company appointed **Independent Directors** (Jyoti Soni and Sharad Vyas) for **5-year terms** and **Vaishali Goyal** as Company Secretary to address previous governance gaps. * **Statutory Committees:** The Audit, Nomination and Remuneration, and Stakeholders Relationship committees have been reconstituted to align with **SEBI** regulations. * **Auditor Appointment:** **M/s Jain Paras Bilala & Co.** were appointed as Statutory Auditors until **2027**. **Outstanding Statutory Liabilities (as of March 31, 2025):** | Nature of Dues | Amount (Approx.) | | :--- | :--- | | **TDS Payable** | **29.91 Lakhs** | | **GST Payable** | **21.02 Lakhs** | | **Provident Fund** | **5.83 Lakhs** | | **ESI Payable** | **0.70 Lakhs** | --- ### **Critical Risk Factors** * **Taxation and Filings:** Failure to file Income Tax Returns for **FY 2022-23** and **FY 2023-24**. The **GSTIN** remains suspended due to non-filing since **January 2023**. * **IEPF Non-Compliance:** Unclaimed dividends from **FY 2013-14** to **FY 2015-16** have not been transferred to the **Investor Education and Protection Fund**. * **Valuation Gaps:** No actuarial valuation for employee benefits (Gratuity/Leave Encashment) as per **Ind AS 19**, and no fair valuation for the investment in the subsidiary (**13,56,000 equity shares**). * **External Pressures:** High volatility in leather prices, intense competition from foreign safety footwear brands, and the upcoming impact of **New Labour Codes (effective Nov 2025)**. * **MSME Liabilities:** The company has not yet identified creditors under the **MSME Act**, posing potential unidentified interest liabilities.