Key Details
M/s. SGPS & Associates, Chartered Accountants (Firm Registration No. 132946W), resigned as Statutory Auditors of Shayona Engineering Limited effective August 24, 2026. The resignation was communicated via letter dated August 24, 2026.
Detailed Reasons for Resignation
The resignation was prompted by two primary factors:
- Following the company's listing on the SME Platform of BSE Limited, the scope and regulatory requirements of the audit engagement increased significantly, including additional limited review assignments and other reporting requirements under SEBI LODR Regulations.
- The auditors proposed a revision in professional remuneration commensurate with the enhanced scope, but a mutually acceptable revision could not be concluded with the company.
- Additionally, the auditors cited existing professional commitments and resource allocation constraints that made it unfeasible to devote the required professional time and resources for a listed-entity audit engagement on the existing terms.
Auditor Confirmations
The auditors specifically confirmed that:
- The resignation is based solely on commercial, professional and resource-allocation considerations
- There are no issues relating to non-availability of information or lack of cooperation from management
- There is no fraud, suspected fraud, or any other material concern requiring reporting
- There is no other material reason for the resignation beyond those stated
Background Information
- SGPS & Associates was appointed as statutory auditor on September 30, 2022
- Their term was scheduled to expire at the conclusion of the Annual General Meeting in 2027
- The latest audit report submitted was for the financial year ended March 31, 2026, submitted on May 26, 2026
Company Actions
The company is taking necessary steps to fill the casual vacancy in accordance with Section 139(8) of the Companies Act, 2013. The appointment of the new statutory auditor will be intimated to the stock exchange as per applicable provisions.