Appointment of Nehaben Chiragbhai Shah as an Internal Auditor of the company from F.Y. 2025-2026 to 2027-2028.
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Veerkrupa Jewellers has appointed Nehaben Chiragbhai Shah as its Internal Auditor for a 3-year term covering FY 2025-2026 to FY 2027-2028, effective from the board meeting on May 6, 2025. The appointment was recommended by the Audit Committee and signed off by Managing Director Chirag Arvindbhai Shah. Notably, Nehaben is herself a Promoter and Whole-Time Director of the company, and is the wife of the Managing Director. The internal audit function, which is meant to provide independent oversight of the company's processes and controls, has been handed to a member of the promoter family who already sits on the board.
This is a significant governance red flag for shareholders. Appointing a promoter, whole-time director and MD's spouse as internal auditor compromises the independence of the internal audit function, which is supposed to objectively check management. Investors should watch for any pushback from the audit committee, independent directors or auditors, and may view this negatively until the company provides clarity on how audit independence will be preserved.