Elitecon International Limited disclosed the resignation of two independent directors, Dr. Venkata Ramesh Penumaka and Mr. Edward Michael Bourgoin, in April 2026, citing concerns regarding corporate governance and the availability of information concerning the company's affairs. The resignations, effective April 7 and April 27 respectively, were communicated to the stock exchanges on July 22, 2026, following a delay attributed to a transition in the company's senior management and compliance function.

The company stated that the omission was identified during a recent review and reconciliation of statutory and compliance records. Elitecon International Limited expressed regret over the delay and affirmed that appropriate corrective measures are being implemented to prevent recurrence.

Dr. Venkata Ramesh Penumaka resigned from the position of Non-Executive Independent Director and all committee positions held by him, effective April 7, 2026. In his resignation letter dated April 7, 2026, he cited concerns relating to corporate governance and recent regulatory developments concerning the company. He confirmed that there were no other material reasons for his resignation. Dr. Penumaka holds the position of Chairman and Independent Director at MIC Electronics Limited.

Mr. Edward Michael Bourgoin resigned from the position of Non-Executive Independent Director and all committee positions, effective April 27, 2026. His resignation letter dated April 27, 2026, cited concerns regarding the availability of information concerning the affairs of the company and certain governance-related developments. The company noted that the requisite confirmation regarding the absence of any other material reasons was not separately provided by Mr. Bourgoin.

The particulars of the resignations were submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Elitecon International Limited announced progress in restoring its banking operations after the Securities and Exchange Board of India (SEBI) issued a clarification to concerned banks, aiding business continuity. The company, which faced operational constraints due to an interim order restricting debits from its bank accounts, is now focused on normalising activities and rebuilding stakeholder confidence. This development is critical for the company to meet its obligations towards employees, vendors, and customers while regulatory proceedings continue.

On March 30, 2026, SEBI passed an ex parte Interim Order against the company, its promoter, and certain other individuals, restricting debits from bank accounts subject to specific terms. The company stated that the observations in the order are prima facie and that no final determination has been made. Following the order, Elitecon participated in the inspection process and filed a preliminary response on June 25, 2026. To mitigate the impact on its operations during the quarter ended June 30, 2026, the company submitted a representation to SEBI on July 10, 2026, seeking operational relief.

SEBI informed the company on July 16, 2026, that a clarification had been issued to the concerned banks. Subsequently, Elitecon received communication from Kotak Mahindra Bank regarding the removal of the lien or restriction from its account. The company is following up with other banks to implement the clarification and stated it would provide further details upon receiving the official copy from SEBI. The lifting of these restrictions is expected to facilitate the processing of payments and the resumption of ordinary business activities.

The company outlined its immediate priorities, which include restoring normal access to banking channels, regularising business payments, and strengthening its workforce. It is also progressing the financial reporting process for FY 2025–26 and reinforcing its governance and compliance framework. Elitecon indicated that it intends to undertake fresh hiring and evaluate new business initiatives as operations normalise.

Elitecon expressed appreciation for SEBI's prompt consideration of its operational difficulties. The company reiterated its commitment to cooperating fully with the regulatory process while pursuing its lawful rights. It noted that its performance during the quarter should be viewed in the context of the exceptional constraints imposed by the banking restrictions and is not indicative of its long-term operational capabilities. Other legal matters, including ongoing GST proceedings, are being handled separately with professional advisers.