Harshil agrotech Limited has announced the resignation of its statutory auditor M/s. S K Bhavsar & Co., Chartered Accountants, due to regulatory compliance requirements. The audit firm tendered their resignation on June 12, 2025, citing the expiry of their Peer Review Certificate as the primary reason for stepping down from their role.

Auditor Resignation Details

S K Bhavsar & Co., with firm registration number 0145880W, submitted their resignation letter on June 12, 2025, effective immediately. The company formally notified BSE Limited on March 18, 2026, acknowledging an inadvertent delay in reporting this development under Regulation 30 of SEBI (LODR) Regulations, 2015.

Regulatory Compliance Requirements

The resignation stems from the expiry of the audit firm's Peer Review Certificate on June 30, 2025. According to SEBI Listing Regulations and guidelines issued by the Institute of Chartered Accountants of India (ICAI), audit firms must maintain a valid Peer Review Certificate to conduct statutory audits of listed entities. S K Bhavsar & Co. confirmed that their renewal application was in process with the Peer Review Board of ICAI, but they chose to resign to ensure regulatory compliance.

Appointment and Tenure Details

The audit firm was originally appointed as statutory auditors on September 30, 2024, for the financial year 2024-25, with an intended term of five years. However, their tenure lasted approximately nine months due to the certificate expiry issue. The appointment was made in accordance with the Companies Act, 2013, and SEBI (LODR) Regulations to audit the company's financial statements.

Company's Response and Compliance

Harshil Agrotech Limited, through Managing Director Pankajkumar Patel (DIN: 09054613), acknowledged the delay in reporting and assured timely compliance in future communications. The company confirmed that the Audit Committee was informed about the resignation at its meeting, and no concerns were raised by the auditor regarding the company's operations or management cooperation.

Professional Standards Maintained

S K Bhavsar & Co. emphasized that no material concerns existed regarding the company's operations, management cooperation, or compliance with laws and regulations. The audit firm confirmed that Harshil Agrotech's management extended full cooperation and provided all necessary information during their tenure. The resignation was purely driven by regulatory requirements rather than any operational or governance issues with the company.

Harshil Agrotech Limited has announced a significant business development, securing a substantial work order worth ₹113.00 crores from Heera Merchants. The order, which focuses on the supply of various agricultural products, marks a notable milestone for the company in its core business of trading and processing agricultural goods.

Order Details

The work order encompasses the supply of a diverse range of grains and vegetables, including:

• Wheat (Grade-A)
• Potato
• Onion
• Tomato (Hybrid)
• Green Chilli (Fresh)
• Brinjal/Capsicum mix

Harshil Agrotech is expected to deliver these products within a 45-day timeframe from the work order date, with deliveries scheduled in mutually agreed tranches. The delivery points include the Ahmedabad APMC and buyer-designated warehouses and cold storage facilities.

Financial Terms

The financial arrangement for this order includes:

Operational Aspects

Harshil Agrotech will be responsible for arranging packing and transport, including cold chain logistics for perishable items. The final quantity and quality will be determined by the buyer's weighbridge and quality control processes.

The company has committed to adhering to quality standards as per APMC and FSSAI norms. The agreement includes provisions for rejection/replacement, liquidated damages for delays, and specifies Ahmedabad as the jurisdiction for any potential arbitration.

Strategic Importance

Pankajkumar Patel, Managing Director of Harshil Agrotech Limited, commented on the order's significance: "This order aligns with our core business and is expected to contribute meaningfully to our near-term revenues, subject to timely execution, quality acceptance, and collection of dues as per agreed terms."

Relationship Disclosure

It's worth noting that Heera Merchants is an unrelated party, with no promoter or group interest in the counterparty. This transaction does not fall under related party transactions, ensuring transparency in the deal.

Market Impact

While the company expects this order to positively impact its near-term financial performance, it has cautioned that the actual contribution is subject to various factors including timely execution, quality acceptance, and market conditions.

Harshil Agrotech Limited continues to strengthen its position in the agricultural products sector with this significant order. Investors and stakeholders will be keenly watching the execution of this order and its impact on the company's financial results in the coming quarters.