Melstar Information Technologies Limited has informed the Exchange regarding 'Re-Constitution Of Audit Committee Of The Board'.
Awaiting price reaction for this filing.
Melstar Information Technologies held a board meeting on May 25, 2026 approving FY 2025-26 audited financial results. The company reported standalone net profit of Rs 44.72 lakh (EPS Rs 1.60) on revenue of Rs 75 lakh, but consolidated net profit was lower at Rs 10.29 lakh (EPS Rs 0.37) due to losses in subsidiaries. Key changes include the resignation of Independent Director Mr. Rajnikant Patel (citing personal commitments) and appointment of Ms. Ayushi Singh Bais as Additional Independent Director. The Audit Committee was re-constituted with Ms. Bais added as a member. Additionally, internal auditors were changed from M/s M. N. Kholiya & Associate (who resigned citing fee disputes) to M/s Saini & Saini. The auditors issued a qualified opinion due to ongoing IBC proceedings admitted by NCLT Mumbai in October 2019, raising going concern doubts as the company awaits business licenses to start operations.
The resignation of an independent director and change in internal auditors may signal governance instability to investors. The qualified audit opinion highlighting ongoing insolvency proceedings and pending business licenses raises significant concerns about the company's ability to continue as a going concern. The stock may face continued volatility due to these material uncertainties.