Supreme Engineering Limited has informed the Exchange regarding Resignation of M/s. Rachna Patel & Co., Chartered Accountants , as Statutory Auditor of the Company w.e.f. April 29, 2025.
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Supreme Engineering Limited's statutory auditor, M/s. Rachna Patel & Co. (Firm Registration No. 141585W), has resigned effective April 29, 2025. Notably, the auditor was appointed only on January 4, 2025, making this a very early resignation within roughly 4 months of appointment. In their resignation letter, the auditor cited concerns about the audit environment and risk profile, stating that the engagement would require extensive time and resources. They specifically flagged delays in the availability of financial and operational information from the company and indicated possible management-imposed limitations. The auditor also noted that Form ADT-1 had not been filed by the company.
This is a significant governance red flag for shareholders. A statutory auditor quitting just months into their term, citing information delays and risk profile concerns, raises serious questions about financial reporting practices, internal controls, and transparency at the company. Investors should watch for the appointment of a new auditor, any regulatory queries from SEBI, and potential restatement or qualification risks in upcoming financial statements.