Quasar India Limited has accepted the resignation of M/s. Shweta Jain & Co LLP as its internal auditor, effective August 5, 2026. The firm cited preoccupation in other assignments and personal reasons for its decision to cease services with the company. This disclosure was made to the Bombay Stock Exchange (BSE) on August 5, 2026, ensuring transparency regarding changes in the company’s audit function.

The intimation was issued pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Quasar India Limited also referenced SEBI Master Circular bearing Ref. No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, which mandates specific disclosures for such changes. The company has provided the requisite details in Annexure A to comply with regulatory requirements.

Auditor Details

The following table outlines the key details of the resignation as disclosed by the company:

The resignation letter was signed by CA Amit J Joshi, Partner at M/s. Shweta Jain & Co LLP (Membership No. 120022), from Ahmedabad. In the letter, the firm thanked the senior management of Quasar India Limited for the opportunity and the staff for their cooperation during their tenure. The letter formally requested the acceptance of their resignation.

Regulatory Compliance

Quasar India Limited confirmed that the details required under Regulation 30 of the SEBI Listing Regulations have been provided. The disclosure ensures that stakeholders are informed about the change in the internal audit function, which is critical for corporate governance. The company has not yet appointed a successor internal auditor as per this disclosure.

What the Numbers Show

While this filing does not contain financial metrics, it highlights a change in the oversight mechanism of Quasar India Limited. The resignation of an internal auditor is a routine corporate governance event but requires timely disclosure to maintain market integrity. Investors should monitor subsequent filings for the appointment of a new internal auditor to ensure continuity in audit processes.

Quasar India Limited reported a net loss of ₹18.93 lakh for the financial year ended March 31, 2026, reversing from the net profit of ₹2.45 lakh recorded in FY25. Revenue from operations declined significantly to ₹142.62 lakh from ₹4,213.35 lakh in the previous year. The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 26, 2026.

The statutory auditors, M A A K & Associates, issued a qualified opinion on the standalone financial results. The audit report highlighted that the company failed to provide balance confirmations and supporting reconciliations for trade receivables, payables, and other financial assets. Additionally, the auditors noted an inability to verify the existence and valuation of inventories amounting to ₹3,969.24 lakh due to a lack of documentary evidence and physical verification reports.

Financial Performance

The company reported a total income of ₹143.42 lakh for FY26, down from ₹4,213.35 lakh in the previous year. Total expenses for the period stood at ₹168.72 lakh. For the quarter ended March 31, 2026, the company reported a net profit of ₹3.36 lakh, compared to a net loss of ₹302.98 lakh in the corresponding quarter of the previous year.

Compliance and Audit Observations

The auditors flagged several compliance lapses, including the company's failure to file its Income Tax Return and Tax Audit Report for FY25 within prescribed timelines. Outstanding tax demands are appearing on the Income Tax portal, and the auditors were unable to ascertain the potential financial impact. Furthermore, the company did not maintain an edit log facility in its accounting software as required by the Companies (Accounts) Rules, 2014.

The report also noted that the company did not conduct an internal audit during the year despite the applicability of Section 138 of the Companies Act, 2013, resulting in inadequate internal control monitoring mechanisms. The board appointed M/s. Shweta Jain & Co LLP as the internal auditor for FY27 to address these gaps.