We are updating the earlier submission made on 25.05.2025 vide BSE ACK.0956946 by adding Annexure A as required by SEBI circular dated 19th October,2019 and the statutory auditors intention ....
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Kumbhat Financial Services Ltd has filed an update to its earlier announcement about the resignation of its statutory auditor, PKF Sridhar & Santhanam LLP. The auditor was appointed on August 19, 2024 for a five-year term ending at the 2029 AGM, meaning the resignation comes less than a year into the term. PKF Sridhar & Santhanam LLP cited a mismatch between the size and scale of the company and the firm's own scope and capacity, along with the level of audit fees, as the reason for stepping down. Importantly, the auditor explicitly stated there is no disagreement with management and no issues related to accounting policies, financial disclosures, or audit practices. The auditor will complete the FY2024-25 audit and the Q1 FY2025-26 limited review before formally resigning. A new auditor will need to be appointed to fill the vacancy.
For shareholders, this appears to be an amicable and professional parting with no governance red flags or audit concerns flagged. However, the fact that a major audit firm is stepping down within a year of appointment suggests the company may need to engage a smaller, more appropriately sized auditor going forward, which is normal for a small-cap NBFC like Kumbhat Financial Services.