Desi Farms India Limited (formerly known as SER Industries Limited) has disclosed that M/s A N K H & Associates, Chartered Accountants, have tendered their resignation as the company’s statutory auditors. The resignation, dated August 08, 2026, becomes effective immediately, leaving the company to seek a replacement for the upcoming financial audits. This development follows the completion of the limited review for the quarter ended June 30, 2026, which was issued by the outgoing auditors on August 05, 2026.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Sunil Kumar Shahi, Managing Director of Desi Farms India Limited, signed the intimation letter addressed to BSE Limited on August 08, 2026.

M/s A N K H & Associates was originally appointed as statutory auditor at the Annual General Meeting held on September 12, 2024. Their term was scheduled to last for five years, covering Financial Year 2024-25 through Financial Year 2028-29. In their resignation letter, Partner K. M. Narasimha Murthy stated that the firm is discontinuing its services due to "preoccupation with other personal and professional commitments." The firm confirmed there are no other material reasons for the resignation and no concerns regarding audit evidence or management-imposed limitations.

The Audit Committee and the Board of Directors of Desi Farms India Limited are expected to consider the appointment of a new statutory auditor to fill the casual vacancy caused by this resignation. The company will intimate the exchange regarding the new appointment in due course.

Auditor Details

What the Numbers Show

The resignation occurs midway through the five-year tenure initiated in September 2024. With the limited review for the quarter ended June 30, 2026, already completed and issued on August 05, 2026, the transition aims to minimize disruption to the ongoing audit cycle for Financial Year 2026-27. The absence of any disclosed concerns regarding audit evidence or management cooperation suggests the departure is driven solely by the firm’s internal capacity constraints rather than any governance or compliance issues within Desi Farms India Limited.

Desi Farms India Limited reported a net loss of ₹8.93 lakh for the quarter ended June 30, 2026 (Q1FY26), marking a significant reversal from the net profit of ₹18.05 lakh recorded in the corresponding quarter of the previous year. The Bangalore-based agri-tech firm, formerly known as SER Industries Limited, registered zero revenue from operations for the period, highlighting a complete absence of operational income. This performance shift underscores challenges in generating top-line growth, as the company’s total expenses remained at ₹8.93 lakh despite the lack of revenue.

The Board of Directors approved the unaudited financial results on August 05, 2026, in a meeting held pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting commenced at 5:45 P.M. IST and concluded at 5:55 P.M. IST. Sunil Kumar Shahi, Managing Director of Desi Farms India Limited, signed off on the disclosure submitted to BSE Limited.

Financial Performance Overview

The financial statement reveals that Desi Farms India Limited generated no revenue from operations in Q1FY26. In contrast, the company had reported ₹31.00 lakh in revenue from operations in Q1FY25 and ₹11.00 lakh in Q4FY26. Other income also stood at zero for the current quarter, compared to ₹9.48 lakh in the preceding quarter and nil in the same quarter last year. Consequently, total revenue was zero for Q1FY26, down from ₹31.00 lakh in Q1FY25 and ₹20.48 lakh in Q4FY26.

Expenses for the quarter totaled ₹8.93 lakh, comprising employee benefit expenses of ₹0.07 lakh, depreciation and amortisation expenses of ₹0.02 lakh, and other expenses of ₹8.84 lakh. Finance costs were negligible at ₹0.00 lakh. The high proportion of other expenses relative to total expenditure suggests fixed overheads or non-operational costs are driving the loss in the absence of revenue.

Audit and Compliance

Ankh & Associates, the statutory auditor of the company, conducted a limited review of the financial results in accordance with Standard on Review Engagement (SRE) 2400. Partner K. M. Narasimha Murthy issued the review report on August 05, 2026, stating that nothing came to their attention to suggest the financial statements contained material misstatements or failed to disclose information required under SEBI Listing Regulations. The audit committee reviewed the results before they were taken on record by the Board.

What the Numbers Show

The most critical observation from Q1FY26 is the complete cessation of operational revenue, which directly correlates with the swing from profit to loss. While the company managed to keep total expenses lower than the previous quarter (₹8.93 lakh vs. ₹59.68 lakh), the lack of any income stream resulted in a net loss equal to the total expense figure. This indicates that cost containment measures may have been implemented, but without revenue generation, profitability remains unattainable. The paid-up equity share capital remains unchanged at ₹99.46 lakh.