RESIGNATION OF STATUTORY AUDITORS
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Hilltone Software and Gases Ltd's statutory auditor M/s K.C. Parikh & Associates (FRN: 107550W) resigned on June 13, 2025 with immediate effect, and the Board accepted it on June 14, 2025. The auditors had been appointed at the 30th AGM on September 29, 2023 for a five-year term ending at the 35th AGM (September 29, 2028), so they are exiting well before their term was due to end. The reason is a fee dispute: the auditors proposed hiking statutory audit fees to Rs 25 lakh + GST for FY2025-26 citing higher effort, but the management rejected the increase on May 6, 2025 as 'significantly higher than expected,' prompting the firm to step down. The last audit (FY ended March 31, 2025) was completed and submitted on May 29, 2025; no FY2025-26 audit had begun. The Board stated there were no governance or concern-related issues flagged by the auditors.
An auditor walking out mid-term over a fee clash is generally seen negatively by investors, as it raises questions about governance and the cost of the upcoming audit. The company must now appoint a new statutory auditor within the prescribed timeline to avoid compliance issues, and shareholders should watch for any disclosure about the new auditor and the fee structure.