Shayona Engineering Limited has disclosed the findings of its Audit Committee regarding the resignation of its Statutory Auditors, M/s. SGPS & Associates. The committee confirmed the resignation, effective August 24, 2026, was due to commercial, professional, and resource-allocation considerations, including enhanced audit scope post-listing and unresolved remuneration discussions. No other material concerns were reported by the outgoing auditors.
Audit Committee Addresses Auditor Resignation
Shayona Engineering Limited has provided an update following the resignation of its Statutory Auditors, M/s. SGPS & Associates, Chartered Accountants. The company’s Audit Committee convened on August 27, 2026, to deliberate on the reasons behind the auditors’ decision to step down, which became effective from August 24, 2026.
Reasons for Resignation Identified
According to the disclosure, the outgoing auditors cited increased scope, responsibilities, and regulatory requirements following the company’s listing on the SME Platform of BSE Limited. They had proposed a revision in professional remuneration to match the enhanced scope. However, despite discussions, a mutually acceptable revision could not be reached. The auditors also highlighted existing professional commitments and resource-allocation constraints as contributing factors to their inability to continue the engagement at the required level for a listed entity.
Confirmation of No Other Material Concerns
The Audit Committee noted the confirmation from M/s. SGPS & Associates that their resignation was solely based on these commercial, professional, and resource-allocation considerations. Crucially, the auditors confirmed that there were no issues related to the availability of information or explanations, lack of cooperation from management, suspected fraud, or any other material concern that would require reporting under applicable regulatory frameworks.
Committee’s Deliberations and Views
Following a thorough review of the reasons, declarations, and confirmations provided by the outgoing auditors, and clarifications from the management, the Audit Committee concluded that the reasons for resignation were indeed the commercial, professional, and resource-allocation factors discussed. The committee recorded its views and communicated them to the management, also advising on ensuring compliances and an orderly transition of the audit engagement.
Source: BSE
