Sanchay Finvest has announced the resignation of M/s. S K B J P & Co. as its internal auditor, effective August 21, 2026. The firm cited pre-occupation and other professional commitments for the decision.

The company disclosed the development in a letter to the Bombay Stock Exchange on August 22, 2026. The resignation was submitted by Satish Bokhia, partner at the chartered accountancy firm, which had been appointed for the financial year 2026-27 starting May 28, 2026.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also aligns with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Next Steps

Management is currently in the process of appointing a new internal auditor. The company stated that the appointment will be completed in due course in compliance with applicable provisions. The resigning firm offered cooperation for the smooth handover of records and information.

Sanchay Finvest Limited reported a net loss of ₹35.63 lakh for the quarter ended June 30, 2026 (Q1FY26), narrowing from the ₹41.91 lakh loss in the fourth quarter of FY26. The Mumbai-based share broking firm saw its revenue from operations turn negative at ₹(17.33) lakh, compared to ₹0.84 lakh in the prior quarter. Despite operational headwinds, the overall loss position improved sequentially due to lower employee benefit costs and reduced other expenses. In a separate development, the Board recommended the appointment of Ms. Shravan A Gupta & Associates as the Company’s Secretarial Auditor for five consecutive years, commencing from FY27 till FY31, subject to shareholder approval at the ensuing Annual General Meeting.

The Board of Directors approved the unaudited financial results during a meeting held on August 4, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The appointment of the secretarial auditor was disclosed under Regulation 30 of the Listing Regulations, read with Clause 7 of SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Financial Performance

The company’s financial statement reflects continued volatility in its core operations. Revenue from operations was negative at ₹(17.33) lakh in Q1FY26, a sharp decline from the positive ₹0.84 lakh reported in Q4FY26. Other income contributed ₹0.42 lakh, down from ₹0.90 lakh in the previous period. Total expenses stood at ₹22.71 lakh, comprising ₹2.54 lakh in employee benefits, ₹0.66 lakh in depreciation, and ₹19.51 lakh in other expenses.

Earnings per share (basic and diluted) were ₹(0.45) for the quarter, compared to ₹(1.33) in Q4FY26 and ₹(1.09) in Q1FY25. The paid-up equity share capital increased to ₹80.00 lakh from ₹31.50 lakh in the previous quarter, following a preferential allotment of 48.50 lakh equity shares to non-promoter investors in April 2026.

Auditor Concerns and Compliance Issues

Statutory auditors Jain Jagawat Kamdar & Co issued a limited review report with several emphasis-of-matter paragraphs highlighting material compliance risks. The auditors noted that the company has not paid preference share dividends at the agreed rate to 40,000 preference shareholders and has not redeemed the 12% Redeemable Non-Cumulative Preference Shares due since October 2024. This indicates potential non-compliance with the terms of issue, which may have regulatory implications.

Furthermore, the auditors drew attention to outstanding dues with the National Stock Exchange (NSE). As of March 31, 2026, NSE records showed dues aggregating to ₹28.39 lakh. Following reconciliation, ₹3.69 lakh was adjusted by the exchange, and the company paid ₹22.50 lakh on May 6, 2026, after receiving a notice on May 4, 2026. The auditors also stated that the company lacks an appropriate system for obtaining confirmations and reconciling balances of deposits, advances, and receivables, limiting their ability to determine the impact on financial results. Additionally, the classification of trade payables into MSME and others was based solely on management assessment without supporting audit evidence.