Statutory Auditor of Company has resigned with effect from 12.08.2025
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M/s S.M Gupta & Co, Chartered Accountants, the statutory auditor of Family Care Hospitals Ltd, resigned with effect from 12 August 2025. The auditor was originally appointed on 30 November 2021 and had a term running until FY 2026, so this is a mid-term exit. The reason cited is that the company proposed a reduction in professional audit fees, which the auditor found inadequate for the scope and diligence required. The auditor had recently submitted the Q1 FY 2025-26 limited review report on 5 August 2025 and confirmed there are no other material reasons behind the resignation.
Mid-term auditor resignations are typically viewed negatively by the market as they raise governance and financial health concerns. The fee-reduction trigger may hint at cost-cutting pressures at the company. Shareholders should watch for timely appointment of a new auditor and any further disclosures regarding the company's financial position.