Resignation of Statutory Auditor M/s R V Somani & Associates
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SGL Resources' statutory auditor M/s R V Somani & Associates (FRN: 141806W) resigned effective September 4, 2025, citing pre-occupation and other commitments. Notably, this firm had only been appointed at an EGM on July 18, 2025 — meaning they quit just about 48 days after appointment, well before completing even one audit cycle. The company stated no concerns or disagreements were raised by the outgoing auditor, and the audit committee aligned with the stated reason. M/s. Ram Chandak & Associates (FRN: 151611W) has been appointed to fill the casual vacancy until the next AGM. Alongside, the board approved audited FY25 results with an unmodified opinion: revenue from operations fell sharply to Rs. 1,928.10 lakhs from Rs. 4,871.29 lakhs in FY24, but reported total income looks higher (Rs. 5,023.93 lakhs) due to a one-time reversal of Rs. 1,720.92 lakhs in interest expense that was capitalised to Intangible Assets under Development. Net profit stood at Rs. 140.40 lakhs (EPS Rs. 0.08) versus Rs. 161.86 lakhs (EPS Rs. 0.23) last year. Mr. Suhit Bakshi was also inducted as an additional non-executive non-independent director, and the 33rd AGM is scheduled for September 30, 2025.
The very short tenure of the outgoing auditor (less than two months from appointment to resignation) may draw governance scrutiny from investors, even though no audit concerns were flagged. Separately, the steep drop in core operating revenue is a red flag, partly masked by the accounting treatment of capitalised borrowing costs.