Mihika Industries has replaced its statutory auditor following the resignation of S K Bhavsar & Co., effective August 10, 2026. The firm cited recent changes in the company’s management alongside other professional commitments as reasons for stepping down, clarifying that the resignation was not due to any fraud or non-compliance. The Board of Directors subsequently appointed M/s. Kapil Kumar Aggarwal & Associates to fill the casual vacancy and recommended their appointment for a five-year term, subject to shareholder approval at the upcoming Annual General Meeting.

The Board meeting held on August 10, 2026, at the corporate office in Ahmedabad, addressed several governance matters in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Audit Committee reviewed the resignation of S K Bhavsar & Co., noting no concerns regarding the management of the company. Consequently, the Board moved forward with appointing M/s. Kapil Kumar Aggarwal & Associates (FRN: 008174C) as the interim statutory auditor until the conclusion of the 43rd Annual General Meeting.

Auditor Appointments

The Board recommended two distinct appointments for M/s. Kapil Kumar Aggarwal & Associates. First, they were appointed to fill the casual vacancy arising from the resignation of S K Bhavsar & Co. Second, the Board sought shareholder approval for their appointment as Statutory Auditors for a period of five years, covering financial years FY2026-27 to FY2030-31. This long-term tenure would begin after the conclusion of the 43rd AGM and extend until the conclusion of the 48th AGM in 2031.

In addition to the statutory auditor change, the Board approved the appointment of M/s. Jay Pandya & Associates (FRN: S2024GJ963300) as the Secretarial Auditor. This appointment is made pursuant to Regulation 24A of the SEBI Listing Regulations and Section 204 of the Companies Act, 2013. The firm will undertake the secretarial audit for one term of five consecutive years, from FY2026-27 to FY2030-31, subject to shareholder approval.

Corporate Governance Updates

The Board also considered the shifting of the company’s registered office from West Bengal to Gujarat. The proposal involves moving the address from Rajarhat, Kolkata, to the existing corporate office at Titanium City Centre in Ahmedabad. This move requires requisite approvals from shareholders and regulatory authorities.

The 43rd Annual General Meeting is scheduled for September 1, 2026, at 3:00 P.M. (IST). The meeting will be conducted through Video Conferencing or Other Audio Visual Means. Shareholders will vote on the appointments of the statutory and secretarial auditors, as well as the shift of the registered office.

Mihika Industries reported a severe contraction in revenue for FY26, driven by a significant drop in trading volumes, while net profitability improved due to lower tax expenses. Revenue from operations fell 92% year-on-year to ₹2.67 crore, down from ₹34.73 crore in FY25. However, net profit after tax (PAT) rose 58% to ₹8.62 lakh, compared to ₹5.46 lakh in the prior year. The divergence between revenue collapse and profit growth was primarily aided by a reduction in tax of earlier years, which stood at nil in FY26 versus ₹5.68 lakh in FY25. The Board of Directors recommended no dividend for the year to conserve resources for future growth.

The financial results were qualified by statutory auditors M/s. S K Bhavsar & Company, citing material weaknesses in internal controls. The auditors highlighted that the company failed to appoint an Internal Auditor for the entire financial year, violating Section 138 of the Companies Act, 2013. Additionally, management did not provide balance confirmation letters or party-wise reconciliation statements for certain trade receivables and payables as of March 31, 2026. The absence of supporting documents for inventory valuation also prevented the auditors from obtaining appropriate evidence on asset completeness.

Financial Performance Snapshot

Beyond the annual results, the company announced several strategic and governance changes ahead of its 43rd Annual General Meeting (AGM) scheduled for September 1, 2026. The Board approved a proposal to raise up to ₹90 crore through a rights issue of equity shares with a face value of ₹10 each. This capital raise aims to fund future business prospects and working capital requirements. Concurrently, shareholders will vote to increase the authorized share capital tenfold, from ₹10 crore to ₹100 crore, by creating an additional nine crore equity shares.

Governance and Audit Observations

The secretarial audit report by M/s. Jay Pandya & Associates flagged multiple regulatory non-compliances. These included the failure to publish newspaper advertisements for quarterly results for the quarter ended June 30, 2025, and delays in submitting voting results for the quarter ended September 30, 2025. The company also lacked a qualified Company Secretary for three consecutive quarters in FY26, though it has since filled the vacancy with Ms. Umang Agrawal. The Board has shifted its registered office from Kolkata to Ahmedabad, Gujarat, seeking administrative convenience.

Management disclosed that related party transactions with M/s. Veggie Fest Foods Private Limited, a promoter entity, may exceed the material threshold under SEBI Listing Regulations. Shareholders are asked to approve transactions worth up to ₹50 crore involving the purchase and sale of goods, leasing, and services. During FY26, purchases from Veggie Fest Foods totaled ₹29.50 lakh, while sales amounted to ₹1.00 lakh. The Board appointed Mr. Bipinbhai Becharbhai Prajapati as Managing Director and CFO for a five-year term, effective October 18, 2025.