GLOSTER LIMITED has informed the Exchange about Resignation of Statutory Auditor
GLOSTERLTD · price
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Price Waterhouse & Co Chartered Accountants LLP has resigned as the Statutory Auditor of Gloster Limited and its material subsidiary Fort Gloster Industries Limited, effective August 13, 2025. The auditor was originally appointed for a 5-year term running until March 31, 2027, making this a midterm exit roughly three years early. The reason, as stated in the auditor's intention letter, was a disagreement over revenue recognition at the material subsidiary (Fort Gloster Industries Limited) related to a long-term customer contract, which led the auditor to issue a qualified conclusion on the Q1 FY26 (June 30, 2025) consolidated results. The auditor flagged that this difference of view could materially impact future financial statements. The company has completed FY25 audits and the Q1 limited review under the outgoing auditor, and the Board/Audit Committee will appoint a new statutory auditor to fill the casual vacancy.
This is a red flag for investors. A Big-Four auditor quitting midterm over a revenue recognition dispute signals accounting/financial reporting concerns at the material subsidiary, which could weigh on the stock and raise governance scrutiny until a new auditor is appointed and clarifies the position.