Ajel Limited confirmed that its statutory auditors, M/s. GMK & Co, resigned effective October 9, 2026, citing pre-occupation as the sole reason. The company’s board formally accepted the resignation during a meeting held on October 10, 2026.

The Audit Committee reviewed the resignation letter and verified that no adverse concerns, disagreements, or limitations on scope were reported by the auditors. The committee aligned with the reasons stated in the communication, confirming the departure was procedural rather than indicative of financial irregularities.

Audit Committee Verification

The Audit Committee noted that M/s. GMK & Co completed the limited review report for the quarter ended June 30, 2026, prior to their cessation. This completion satisfies SEBI circular requirements regarding auditor handovers. The board placed on record its appreciation for the firm’s contribution to the company’s audit processes.

Next Steps for Auditor Appointment

Ajel Limited stated it will take necessary steps to appoint a new auditor to fill the casual vacancy resulting from this resignation. The company committed to informing the stock exchanges once the new appointment is finalized.

Ajel Limited announced on October 5, 2026, that it has signed an in-principle letter of intent (LOI) to acquire the business of M/s Zineeverse Motion Pictures Private Limited. The proposed transaction involves acquiring the media company's operations through a share swap, where Ajel will issue its own equity shares as consideration.

The acquisition is limited specifically to the business assets and operations of Zineeverse, a Hyderabad-based entity engaged in digital streaming services, software development for media projects, and the production and distribution of filmed content. This move signals Ajel's intent to expand its footprint in the digital media and content production sector.

Transaction Structure and Terms

The deal is structured as an asset acquisition rather than a share purchase of the target company itself. Under the terms outlined in the LOI, the consideration will be paid entirely in Ajel Limited equity shares. The specific number of shares to be issued, along with the valuation of the acquired business, will be determined during the due diligence phase and recorded in definitive agreements.

Key components of the proposed transaction include:

• Nature of Deal: Acquisition of the business of Zineeverse Motion Pictures Private Limited.
• Consideration: Equity shares of Ajel Limited issued against the acquired business.
• Validity: The LOI remains valid for two months from the date of acceptance or until definitive agreements are executed, whichever is earlier.
• Jurisdiction: Governed by Indian laws with exclusive jurisdiction in Hyderabad courts.

Due Diligence and Regulatory Approvals

The completion of the transaction is contingent upon satisfactory legal, financial, tax, and business due diligence. Ajel Limited and its advisors will have reasonable access to Zineeverse's books, records, contracts, film rights, intellectual property, and statutory filings.

Furthermore, the proposal requires approval from the respective Boards of Directors and shareholders of both entities. It is also subject to all necessary regulatory and statutory approvals, including compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

What the Numbers Show

While the source document does not disclose the financial valuation of Zineeverse Motion Pictures or the specific exchange ratio for the share swap, the structural choice of a share swap over a cash acquisition preserves Ajel Limited's cash reserves. By issuing equity instead of cash, the acquirer avoids immediate liquidity outflow, though this approach may result in dilution of existing shareholders' stakes once the new shares are issued. The two-month validity period suggests an aggressive timeline for finalizing the definitive agreements.