Key Quantitative Figures

  • ICAI Firm Registration No: 012055S
  • Effective date of resignation: May 27, 2026
  • HDFC Bank Current Account No: 99988817111988
  • Date of initial appointment: September 30, 2024 at 36th Annual General Meeting
  • Scheduled term expiration: Conclusion of 41st Annual General Meeting in financial year 2028-29
  • Last completed audit: Standalone financial statements for FY ended March 31, 2025 (audit report dated May 25, 2025)
  • Last limited review: Q1 ended June 30, 2025 (dated August 13, 2025)

Dates of Action

  • May 15, 2026: Auditor's formal notice requesting financial records
  • May 18, 2026: Company Secretary's email confirming inability to provide records
  • May 27, 2026: Effective date of auditor resignation
  • May 28, 2026: Date of regulatory filing to BSE
  • January 14-21, 2026: Email correspondence regarding failed handover from erstwhile management
  • February 13, 2026: Company intimation to BSE regarding delay in filing Q2 and Q3 results
  • September 30, 2025: AGM where FY 2024-25 financial statements were rejected
  • December 31, 2025: EGM resulting in board reconstitution

Parties Involved

  • Statutory Auditor: M/s K S Rao & Associates, Chartered Accountants (Proprietor: Srinivas Rao K, Membership No: 213480)
  • Company Secretary & Compliance Officer: Janaki Rama Lakshmana Rao Kanukollu
  • Erstwhile CFO: Ms. Swapna Tervati
  • Regulatory Authorities: SEBI, BSE, Registrar of Companies
  • Law Enforcement: Madhapur Police Station (FIR filed)

Reasons for Resignation

1. Non-availability of Financial Records: Books of account, financial information, and supporting records for Q2, Q3, Q4 of FY 2025-26 and annual audit for FY 2025-26 were not provided despite formal requisition dated May 15, 2026.

2. Rejected Prior Accounts: FY 2024-25 financial statements were not adopted by shareholders at AGM held on September 30, 2025. No rectified/restated financials have been prepared thereafter.

3. Complete Handover Failure: New Board confirmed no handover of books of account, financial information, or supporting records received from erstwhile management. Statutory assets including laptops/computers recorded in balance sheet have not been handed over.

4. Material Events Without Records: During October 1, 2025 to December 31, 2025, material fund inflows/outflows and changes in directorship occurred, but quarterly results for Q2, Q3, and Q4 of FY 2025-26 were not prepared/filed.

5. Unauthorized Banking Transactions: Multiple unauthorized banking transactions occurred, for which an FIR has been filed at Madhapur Police Station by the company against the then directors.

6. System Access Issues: Incomplete banking access, non-updation of MCA credentials, and disputed CFO resignation preventing statutory filings including DIR-12 for appointment of new directors.

7. Forensic Audit Underway: Significant information remains unavailable due to ongoing forensic audit.

Financial and Operational Impact

  • Audit Impossibility: Statutory audit and limited review for Q2, Q3, Q4 FY 2025-26 could not be commenced
  • Regulatory Non-compliance: Compliance with Regulation 33(3)(d) of SEBI LODR requiring submission of annual audited financial results by May 30, 2026 not possible
  • Impact Assessment: Impact of unauthorized banking transactions and missing assets cannot be ascertained due to lack of records
  • Timeline Uncertainty: Company Secretary confirmed timelines for completion "remain uncertain and are presently beyond my direct control"

Capital Structure Impact

No direct impact on capital structure disclosed. However, the non-availability of financial records prevents accurate assessment of current financial position.

Cash Flow Implications

Unauthorized banking transactions have occurred, but specific amounts and cash flow impacts cannot be quantified due to lack of records.

Forward-looking Statements

Company stated that due to practical limitations and incomplete access to information, "the timelines for completion remain uncertain and are presently beyond my direct control."

Additional Material Facts

  • Registered office at Workafella, Madhapur was vacated due to non-payment of dues and no employees were present
  • Company sought extension from BSE till May 31, 2026 for filing financial results for quarters ended September 30, 2025 and December 31, 2025
  • All working papers and correspondence will be preserved as per SA 230 and annexed to Form ADT-3