Procal Electronics India Limited has scheduled an Extraordinary General Meeting (EGM) on August 3, 2026, to appoint M/s SSRV & Associates as the new statutory auditors. The meeting will be held via Video Conferencing (VC) or Other Audio Visual Means (OAVM) at 12:00 PM IST to fill the casual vacancy caused by the resignation of the previous auditor, M/s. PAMS & Associates, effective June 12, 2026. The appointment is subject to shareholder approval and is in compliance with the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Board of Directors has recommended the appointment of M/s SSRV & Associates, Chartered Accountants (Firm Registration No. 135901W), to hold office from the conclusion of the EGM until the conclusion of the upcoming Annual General Meeting. The remuneration of the auditors will be determined by the management of the company in consultation with the statutory auditors. The outgoing firm cited the closure of its Mumbai branch and the inability to devote adequate resources from Bhubaneswar as reasons for resignation, confirming there are no material reasons or unresolved issues related to the stepping down.

EGM and Voting Details

The company has appointed Mr. Nitesh Chaudhary & Associates (FCS: 10010), Practicing Company Secretaries, as the Scrutinizer to oversee the remote e-voting and e-voting/poll process. The remote e-voting period begins on July 31, 2026, at 9:00 a.m. IST and ends on August 2, 2026, at 5:00 p.m. IST. Shareholders whose names appear in the Register of Members or Beneficial Owners as on the record date of July 27, 2026, are eligible to vote.

The facility for casting votes is available through CDSL and NSDL e-voting systems. Members holding shares in physical form can vote via www.evotingindia.com . The deemed venue for the EGM is the Registered Office of the company at 201, Shyam Baba House Chs Ltd, Upper Govind Nagar, Malad - East, Mumbai 400097.

Key Meeting Information

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE700B01015/04e4b53e-aa99-436a-bd45-e31e55439661.pdf

Procal Electronics India Ltd has submitted a revised Statement on Impact of Audit Qualifications for the financial year ended March 31, 2026, to the Bombay Stock Exchange. The correction addresses a discrepancy observed by the exchange, where the company inadvertently reported figures based on quarterly financial results instead of the audited yearly financial results. The revised filing confirms that the statutory auditors issued an audit report with an adverse opinion, highlighting significant material uncertainties regarding the company's ability to continue as a going concern.

The company's net worth has been fully eroded due to continuous losses, and there are no current business operations. The manufacturing unit at Silvassa, along with movable and immovable assets, was under the possession of Canara Bank due to credit facilities classified as Non-Performing Assets (NPA). These assets were sold through E-auction for an aggregate consideration of approximately Rs. 49.07 lakh, adjusted against outstanding dues. However, the auditors noted that complete supporting documents relating to the sale proceedings, appropriation of proceeds, and valuation basis were not made available for verification, preventing independent confirmation of the accounting treatment.

The table below presents the audited financial figures as reported before and after adjusting for the audit qualifications. There is no financial impact quantified by the adjustments in the revised statement.

Audit Qualifications

The adverse opinion stems from several key areas. The company allocated 76% of the total sale consideration towards inventories and 24% towards fixed assets, as no separate valuation was provided by Canara Bank. Consequently, the inventory balance was reduced to Nil. The auditors were unable to verify the existence, valuation, and accounting treatment of these inventories and fixed assets due to the lack of independent evidence and valuation reports.

Additionally, the company wrote off or wrote back various debit and credit balances based on management assessment and Board approval dated March 31, 2026. The auditors stated that adequate supporting documents and external confirmations were not provided to verify the appropriateness of these adjustments. Furthermore, the company did not obtain balance confirmations from trade receivables, trade payables, or lenders, making it impossible to verify the correctness and recoverability of these balances.

Banking and Operational Status

The company's bank accounts were inoperative during the year due to pending KYC compliance formalities. Certain expenses were incurred by directors through their personal accounts. The auditors expressed an inability to independently verify the completeness and authenticity of these transactions routed through personal accounts. The filing was signed by Mahendra Kumar Bothra, Managing Director, and PAMS & Associates, Statutory Auditor.