Shayona Engineering Limited has announced the resignation of its statutory auditor, M/s. SGPS & Associates. The firm cited increased scope and regulatory requirements following the company’s listing on the BSE SME Platform, coupled with a failure to agree on revised professional remuneration. The auditors confirmed the resignation is based solely on commercial, professional, and resource-allocation considerations, with no concerns regarding fraud or management cooperation.
Statutory Auditor Resignation Announced
Shayona Engineering Limited has formally notified the Bombay Stock Exchange (BSE) of the resignation of its statutory auditor, M/s. SGPS & Associates. The resignation is effective from August 24, 2026.
Reasons for Resignation
According to the provided disclosures, the decision by M/s. SGPS & Associates to resign stems from several factors that have emerged since Shayona Engineering Limited’s listing on the BSE SME Platform. The company’s increased scale and expanded regulatory obligations have significantly broadened the scope and complexity of the audit engagement. Consequently, the statutory auditors proposed an adjustment to their professional remuneration to align with these enhanced requirements. However, a mutually agreeable revision in fees could not be reached between the company and the auditors.
Additionally, the auditors highlighted their existing professional commitments and resource constraints as contributing factors. They stated that it has become unfeasible to dedicate the necessary level of time and resources required for a listed-entity audit engagement under the current terms. The auditors emphasized that the resignation is based entirely on these commercial, professional, and resource-allocation considerations.
Confirmation of No Material Concerns
M/s. SGPS & Associates have explicitly confirmed that their resignation is not linked to any issues concerning the availability of information, lack of cooperation from the management, or any suspicions of fraud. They have further affirmed that there are no other material concerns requiring reporting under the applicable provisions of the Companies Act, 2013, or SEBI regulatory frameworks.
Next Steps for Company
Shayona Engineering Limited is now undertaking the process to fill the resulting casual vacancy in its statutory auditor position, in accordance with Section 139(8) of the Companies Act, 2013. The appointment of a new statutory auditor will be communicated to the Stock Exchange as per regulatory guidelines.
Source: BSE
