Intimation of Resignation of M/s. K S RAO & ASSOCIATES, Statutory Auditors of the Company.
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Skyline Ventures India's statutory auditor, K S Rao & Associates, resigned effective May 27, 2026 citing pervasive scope limitations. The auditor was unable to complete the statutory audit for FY 2025-26 or limited reviews for Q2, Q3, Q4 because the company failed to provide books of account, financial records, and supporting documents despite formal requisitions. The filing reveals severe governance breakdown: FY 2024-25 financials were rejected by shareholders at the September 2025 AGM, quarterly results for Q2-Q4 FY 2025-26 were never prepared or filed, and there was a complete failure of handover from the erstwhile management to the new board (reconstituted December 31, 2025). Additionally, unauthorized banking transactions are under police investigation (FIR filed at Madhapur Police Station), a forensic audit is underway, and the company admitted it cannot commit to finalization of accounts. The company also missed the SEBI LODR deadline of May 30, 2026 for submitting annual audited financial results. The CFO resignation is disputed, with conflicting email records noted.
This is a critically negative development indicating severe operational and governance breakdown at the company. The inability to file audited results by the regulatory deadline could lead to BSE/NSE action including suspension. The police complaint, forensic audit, and disputed CFO resignation point to potential financial irregularities. Investors should exercise extreme caution as the company faces regulatory non-compliance and possible fraud investigation.