Mercury Trade Links Limited is an Ahmedabad-based enterprise currently undergoing a significant strategic transformation. Historically a specialized trader in agricultural commodities, the company is aggressively pivoting toward an integrated model encompassing **Contract Farming**, **Real Estate Development**, and **Precious Metals Trading**. While the company has demonstrated exponential revenue growth in recent cycles, it operates within a high-risk framework characterized by a "non-going concern" reporting status, significant customer concentration, and a transition toward capital-intensive diversified sectors. --- ### **Core Operational Framework: The "Bill To Ship To" Model** The company functions as a specialized intermediary within the agricultural supply chain, utilizing a lean asset model to facilitate large-scale commodity movements. * **Procurement Strategy:** The company sources **100%** of its products from third-party manufacturers and farmers. Procurement typically requires **advance payments**, necessitating high liquidity. * **Logistics & Storage:** Currently, the company does **not own physical warehousing or cold storage infrastructure**. It operates on a **"Bill To Ship To"** basis, where goods move directly from suppliers to customers, or are held in supplier-provided facilities. Management has expressed a long-term intent to acquire proprietary cold storage to mitigate spoilage risks. * **Geographic Footprint:** Operations are heavily concentrated in **Gujarat**, which serves as both the primary sourcing hub and the core consumer market. --- ### **Product Portfolio & Regulatory Compliance** The company’s revenue is currently derived from a single segment: **Trading**. Its portfolio is divided into traditional agro-commodities and high-value health supplements. #### **1. Agricultural Commodities** * **Cereals & Grains:** Wheat, Maize, Milo, and both Basmati and Non-Basmati Rice. * **Oilseeds & Pulses:** Castor seeds, Chana, Guar seeds, Mustard seeds, Soybeans, Groundnuts, and Sunflower seeds. * **Vegetables:** Capsicum, Onion, Tomato, and Potato. * **Agro-Inputs:** Distribution of fertilizers, manures, and pesticides. #### **2. Nutraceuticals & Health Supplements** The company operates in the specialized health segment, governed by the **FSSAI Nutraceutical Regulations (2016)**. * **Categories:** Functional foods, Food for Special Dietary Usage (**FSDU**), and Food for Special Medical Purposes (**FSMP**). * **Compliance Standards:** Nutrient levels are strictly capped at the **Recommended Daily Allowance (RDA)** set by the **ICMR**. All imports must adhere to the **FSS (Import) Regulations 2017**, requiring a mandatory **Central Import License**. --- ### **Strategic Pivot: Diversification & New Business Objects** As of **March/April 2025**, the company formally amended its **Memorandum of Association (MoA)** to expand into three high-growth verticals: * **Contract Farming:** Moving upstream to control the supply chain by entering direct agreements with farmers for crop cultivation and livestock harvesting. * **Precious Metals & Jewellery:** Entering the manufacturing, design, and retail (online and offline) of **Gold, Silver, Platinum, and Diamonds**. * **Real Estate & Infrastructure:** Engaging in the development of residential and commercial properties and the trading of construction materials such as **cement, steel, and bricks**. --- ### **Financial Trajectory & Capital Raising** The company has transitioned from a negligible revenue base to a high-volume trading entity, supported by aggressive equity dilution to fund working capital. #### **Key Financial Metrics** | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **113.02** | **13.83** | **0.0063** | **-** | | **Profit After Tax (PAT)** | **1.66** | **1.14** | **0.0063** | **(0.097)** | | **Revenue Growth (YoY)** | **~717%** | **>200,000%** | **N/A** | **N/A** | #### **Capital Infusion History** To support its **₹51 crore** supply contracts (notably with **Rajgor Proteins** and **Rajgor Agro**), the company executed two major Rights Issues: * **October 2024:** Raised **₹48.95 crore** (1,08,90,000 shares at **₹44.95**). * **March 2024:** Raised **₹9.90 crore** (24,75,000 shares at **₹40.00**). * **Current Paid-up Capital:** **₹13.61 crore** (as of March 31, 2025). --- ### **Concentration & Counterparty Risk Profile** The business is characterized by a high reliance on a limited number of partners, though this concentration is gradually diversifying. | Particulars | June 2024 (3M) | Sept 2023 (6M) | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Top 5 Customers** | **48.36%** | **44.99%** | **63.10%** | | **Top 5 Suppliers** | **34.47%** | **50.84%** | **78.38%** | --- ### **Critical Risk Factors & Governance Concerns** Investors should note several "Red Flag" disclosures in recent regulatory filings: * **Going Concern Status:** As of **May 2025**, the company prepared financial statements on a **non-going concern basis**, stating it had no immediate business plan. This contradicts the aggressive capital raises and new MoA objects, suggesting a period of extreme structural instability. * **Audit Qualifications:** Auditors issued an **Emphasis of Matter** regarding the failure to provide for employee gratuity (**AS-15 violation**). * **Asset Vulnerability:** In **February 2026**, management reported significant inventory damage due to **unseasonal rain**, highlighting the risks of lacking proprietary climate-controlled storage. * **Intellectual Property:** The company does **not own its trademark**. The "Mercury Trade Links" logo is held in the personal name of the MD, **Mr. Aashray Lakhani**, and is currently subject to a **Show Cause Hearing**. * **Operational Dependency:** The company lacks long-term contracts, operating entirely on an **order-by-order basis**, which provides zero revenue visibility. --- ### **Leadership & Corporate Structure** * **Management:** **Mr. Aashray P. Lakhani** (Chairman & MD) leads the company under a term ending **October 2028**. * **Institutional Interest:** In December 2024, **Multitude Growth Funds Limited** entered the shareholding pattern, acquiring **343,133 shares** via the open market. * **Registered Office:** Recently relocated to **624, Solaris Business Hub, Naranpura, Ahmedabad** (July 2025). * **Registrar:** **MUFG Intime India Private Limited**.