Bits Limited has appointed M/S P R P A & Company LLP as its new statutory auditor, subject to shareholder approval. The board also scheduled its 34th Annual General Meeting for September 27, 2026, and proposed altering the company’s Memorandum of Association.

The board meeting held on August 27, 2026, addressed several key corporate governance matters. The appointment of the new auditor fills a casual vacancy arising from the resignation of the previous firm, M/s R C Chaddha & Co.

Auditor Appointment Details

The board approved the engagement of M/S P R P A & Company LLP, a firm of Chartered Accountants registered with the Institute of Chartered Accountants of India (ICAI). The firm holds Peer Review Certificate No. 022402 and possesses experience in statutory audits, taxation, corporate advisory, and assurance services.

The term will commence from the date of shareholders' approval at the ensuing 34th AGM and continue until the conclusion of the 39th Annual General Meeting, or as otherwise approved under the Companies Act, 2013.

Annual General Meeting Schedule

The company fixed September 27, 2026, at 2:30 pm for its 34th AGM. The meeting will be conducted through Video Conferencing or Other Audio-Visual Means. Shareholders can exercise their voting rights via e-voting between September 24, 2026, at 9:00 am and September 26, 2026, at 5:00 pm.

Ms. Pritika Nagi, Company Secretary in Practice, has been appointed as the scrutinizer for e-voting. The Register of Members and Share Transfer Books will remain closed from September 21, 2026, to September 27, 2026, inclusive.

Alteration in Memorandum of Association

The board proposed altering Clause III (B) of the Memorandum of Association to expand the company’s main objects. The amendment seeks to insert two new sub-clauses allowing the business of manufacturing, assembling, and dealing in industrial, engineering, agricultural, construction, mining, electrical, mechanical, and automation machinery, plant, and equipment.

The second proposed clause permits the company to act as importers, exporters, retailers, traders, distributors, dealers, stockists, commission agents, representatives, suppliers, and merchants of electrical, electronic, electromechanical, and electro-technical components, parts, accessories, equipment, and related products. These changes require shareholder approval and other statutory and regulatory clearances.

Bits Limited reported a significant turnaround in profitability for the first quarter of FY27, with standalone net profit rising 122% year-on-year to ₹16.34 lakh. The Mumbai-based IT services company posted revenue from operations of ₹43.54 lakh for the quarter ended June 30, 2026, marking a 41% increase from ₹30.90 lakh in the corresponding period last year. This growth underscores improved operational efficiency and revenue generation despite a modest rise in other expenditure. Shareholders benefited from the improved bottom line, with basic earnings per share (EPS) increasing 121% to ₹0.0146 from ₹0.0066.

The Board of Directors approved the unaudited standalone and consolidated financial results in a meeting held on July 24, 2026. The filings were submitted to BSE Limited in pursuance of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. R C Chadda & Co LLP, the statutory auditors, issued a limited review report on the financial statements, confirming compliance with Ind AS 34 and SEBI regulations. The company also published newspaper cuttings of the results in Financial Express and Prathakal on July 25, 2026, as per Regulation 47 disclosures.

Financial Performance Highlights

Standalone revenue from operations rose to ₹43.54 lakh from ₹30.90 lakh in Q1FY26. Total revenue, including other income of ₹0.70 lakh, stood at ₹44.24 lakh. While employee benefit expenses remained stable at ₹7.50 lakh, other expenditure increased to ₹15.84 lakh from ₹11.25 lakh in the previous year’s quarter. Depreciation and amortisation expenses decreased to ₹4.56 lakh from ₹5.35 lakh. No tax expense was recorded for the period.

Consolidated results showed similar strength, with total comprehensive income rising 95% YoY to ₹17.64 lakh. This includes a share of profit from associate company Prurient IT Solutions Private Limited amounting to ₹1.30 lakh. Consolidated basic EPS increased to ₹0.0158 from ₹0.0080 in Q1FY26.

What the Numbers Show

The divergence between revenue growth (41%) and expense growth (18%) highlights improved operating leverage for Bits Limited in Q1FY27. While other expenditure saw an absolute increase of ₹4.59 lakh, it was more than offset by the higher top-line growth, resulting in a pre-tax profit margin expansion. The absence of tax liability further boosted the bottom line, allowing nearly all pre-tax profits to flow through to net income. The stability in promoter shareholding at 65.07% indicates continued confidence from promoters during this period of financial recovery.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE839A01021/58027ddd-8f28-4e3c-8867-972c25592b0c.pdf