Mardia Samyoung’s own auditor could not verify ₹22.84 crore of interest-free advances to unidentified third parties. No contracts, commercial justification, or recovery proof accompanied the outflows, so the auditor could not assess recoverability or legitimacy.
Incorporated in 1992 as an Indo-Korean precision capillary tube maker, Mardia Samyoung lost its net worth by 1999 and was referred to BIFR. It later reported zero revenue from operations for FY22, FY23 and FY24, becoming a listed shell.
Torextron Ventures, a Gujarat trading company, signed a share purchase agreement in December 2024 and completed a mandatory open offer at ₹5 per share for 26% of the company. The old Mardia promoter group exited, handing over board control.
After taking control, the new board expanded authorised capital from ₹29.45 crore to ₹80 crore and approved 7.25 crore preferential warrants worth ₹97.88 crore. Torextron received 1,30,90,200 warrants; other allottees stayed below 5% to avoid open offers.
Revenue jumped from zero to ₹73.87 crore in FY26, with ₹61.12 crore in Q4 alone. In Q1 FY27 it fell 59.3% quarter-on-quarter to ₹24.84 crore. The business model: agricultural commodity trading, not manufacturing.
Incoming auditor S.K. Bhavsar & Co. issued a qualified Q1 FY27 review: inventory could not be verified, receivables and payables lacked confirmations, ₹15.82 crore of warrant proceeds had missing invoices, and ₹22.84 crore in advances lacked documents.
The defining number: ₹22.84 crore in undocumented, interest-free advances. The auditor said it could not assess recoverability or legitimacy. At the time of the audit report, that single outflow equaled approximately 28.5% of the company’s market capitalization.
The shareholding pattern shows 68.93% promoters, 0.00% foreign institutions, 0.08% domestic institutions, and 30.99% public. Institutional investors have avoided the stock, so retail and HNIs own all the downside risk.
Management added a website and proposed moving the registered office to Gandhinagar, but that does not fix unverified inventory or missing invoices. SEBI or BSE may investigate round-tripping, capital siphoning, or shell-company classification.
The full article maps the 1992 factory, BIFR years, Torextron takeover, warrant structure, auditor qualifications, and liquidity risks. Swipe back for the key numbers, then read the complete investigation.
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