Announcement under Regulation 30 (LODR) - Resignation of Statutory Auditor
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Chandrima Mercantiles' statutory auditor, M/s. V S S B & Associates (FRN: 121356W), has resigned mid-term effective November 14, 2025, well before its scheduled term expiry on March 31, 2028. The auditor resigned citing non-cooperation of the management and stated it was not receiving disclosures or full details from the company. More concerning, the auditor disclosed that on October 31, 2025, the company received an order from the SEBI Adjudicating Officer stating that the company has manipulated in stock market transactions. The company is also involved in trading in various stock market scripts. The auditor confirmed that the inability to obtain sufficient audit evidence was due to management-imposed limitations and would have a significant impact on the financial statements, and that similar lack of information prevailed in earlier reported financials.
This is a serious red flag for shareholders. The combination of an SEBI order flagging stock market manipulation, a mid-term auditor resignation driven by management non-cooperation, and concerns about the reliability of financial statements suggests deep governance and disclosure problems. Existing investors should expect regulatory scrutiny and significant stock price weakness; potential investors should avoid this stock until governance issues are resolved and a new auditor is appointed with clean results.