Shivalik Bimetal Controls Limited has disclosed the resignation of M/s Arora Gupta & Co., Chartered Accountants (FRN: 021313C), as statutory auditors for two of its wholly-owned subsidiaries. The Board of Directors noted the resignations in a meeting held on August 06, 2026, with the changes taking effect immediately. This development requires the company to appoint new statutory auditors to ensure continuous compliance with regulatory standards for its subsidiary operations.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular no. SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023. The affected entities are Shivalik Engineered Products Private Limited and Shivalik Bimetal Engineers Private Limited. Both firms had been appointed for five-year terms following shareholder resolutions passed in 2022.

Arora Gupta & Co. stated that the resignations stem from practical difficulties in deploying adequate audit resources commensurate with the expanded requirements. Since becoming wholly-owned subsidiaries of the listed parent, both entities have witnessed significant growth in operational scale and complexity. This enlargement has triggered broader applicability of accounting standards and listed-company regulations, substantially increasing the scope, volume, and resource demands for statutory audits.

The firm confirmed that it completed the statutory audits for standalone financial statements up to March 31, 2026, and limited reviews for the quarter ended June 30, 2026, prior to stepping down. In its resignation letters, the auditor explicitly denied any disagreement with management or the Board of Directors. Furthermore, the firm asserted that it had not identified any fraud, suspected fraud, material irregularity, or other matters requiring disclosure to shareholders or regulators under the Companies Act, 2013 or SEBI Listing Regulations.

What the Numbers Show

The timing of the resignation coincides with the completion of the FY26 audit cycle, suggesting a strategic exit point rather than a mid-term disruption. However, the cited reason—resource constraints due to expanded compliance scope—highlights the operational burden placed on smaller audit firms when their clients become part of larger listed groups. For Shivalik Bimetal Controls, this necessitates a swift appointment process to avoid gaps in statutory oversight for its key manufacturing subsidiaries.

The company secretary, Aarti Sahni (M. No.: A25690), submitted the intimation to both BSE Limited and National Stock Exchange of India Ltd. on August 06, 2026. The filing included Annexure-A detailing the resignation particulars and Annexure-B containing the original resignation letters from Amit Arora, Partner at Arora Gupta & Co. (Membership No.: 514828).

Shivalik Bimetal Controls has received the Consent to Operate from the Maharashtra Pollution Control Board for its Pune manufacturing facility (Phase-I). The approval, valid until June 30, 2032, enables the company to proceed with the phased operationalisation of the site, with commercial production scaling in line with customer qualifications and programme schedules.

Regulatory Compliance and Scope

The clearance was issued under Section 26 of the Water (Prevention and Control of Pollution) Act, 1974, and Section 21 of the Air (Prevention and Control of Pollution) Act, 1981. It also includes compliance with Rules 6 and 18(7) of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. This regulatory validation confirms the facility meets prescribed standards for emissions, effluent discharge, and hazardous waste management.

Strategic Expansion and Capabilities

The Pune facility expands the company’s capabilities in value-added components and assemblies for automotive electrification and battery-related applications. Key focus areas include bus-bar connectors and PCBA assemblies. Mr. Sumer Ghumman, Whole-time Director, stated that the approved capacity provides a scalable manufacturing platform for Cell Connecting Systems. The strategy involves disciplined industrialisation to deepen participation in automotive and electrification applications while increasing value delivered to OEM and Tier-1 customers.