Announced Fri, 13 Mar · 21:41 IST

Outcome of Board Meeting regarding the Resignation of Statutory of auditor of the Company

Auditor Resigned MidtermManagement Changes View source PDF

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AI summary

The board of Gabion Technologies India Ltd accepted the resignation of M/s SVJ & Company (Chartered Accountants, FRN: 020356C) as the company's statutory auditor, effective January 30, 2026. The auditor cited disagreement over auditor's remuneration as the sole reason for stepping down. The auditor had been appointed on September 30, 2025 with a term scheduled to run until March 31, 2030, making this a midterm exit. There was a roughly six-week delay in disclosing this to the stock exchange because the company believed it was negotiating a settlement of outstanding dues and that the resignation would be withdrawn, but was caught off-guard when the auditor filed Form ADT-3 with the Registrar of Companies. The auditor confirmed they had completed the FY 2024-25 audit and all IPO-related certifications before resigning.

Likely market impact

A midterm auditor resignation is a negative governance signal for retail investors, even when the stated reason is remuneration-related. The fact that the auditor filed ADT-3 without informing the company suggests communication breakdown, and shareholders should watch for timely appointment of a replacement auditor to avoid any audit-related disruptions or compliance issues.