Shree Rajivlochan Oil Extraction Limited has accepted the resignation of M/s Milind Nyati & Co. LLP as its statutory auditors, effective August 26, 2026. The firm cited other commitments and assignments as the reason for stepping down before the completion of its five-year term.

The resignation follows a shareholder resolution dated September 26, 2024, which appointed M/s Milind Nyati & Co. LLP to hold office until the conclusion of the Annual General Meeting in 2029. The firm completed its statutory audit for the financial year ending June 30, 2026, and submitted its latest audit report on August 11, 2026.

Resignation Details

The company disclosed the development in an intimation to the Bombay Stock Exchange under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resignation becomes effective from the close of business hours on August 26, 2026.

According to the resignation letter signed by Partner Aakash Kesharwani, the firm engaged in ongoing discussions with management regarding its continuation. No concerns were raised by the auditor prior to resignation, and no material reasons other than workload constraints were cited.

The company is required to appoint a new statutory auditor to cover the remaining tenure. M/s Milind Nyati & Co. LLP confirmed it will file form ADT-3 with the Registrar of Companies as per Companies Act 2013 requirements.

Shree Rajivlochan Oil Extraction Limited returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹6.87 lakh against a net loss of ₹12.68 lakh in the previous year. The company’s total income for the year stood at ₹25.83 lakh, a decrease from ₹35.36 lakh in FY25, while total expenses reduced significantly to ₹16.65 lakh from ₹48.04 lakh in the prior year. For the quarter ended March 31, 2026, the company recorded a net profit of ₹0.61 lakh.

The Board of Directors approved the audited standalone financial results on May 29, 2026. During the meeting, the board also appointed Samantra Prashant & Co. as the secretarial auditor for FY26 and Goel & Goyal as the internal auditor for FY27. The financial results were prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015.

Audit Qualification and Going Concern

Milind Nyati & Co. LLP, the statutory auditors, issued a disclaimer of opinion on the financial statements. The auditors noted that the company has disposed of its principal manufacturing plant and has not carried out significant operating activities since, primarily earning income from investments. Management did not provide a formal assessment of the company's ability to continue as a going concern, including supporting documentation relating to future business plans and projected cash flows for at least twelve months from the balance sheet date.

Consequently, the auditors were unable to obtain sufficient appropriate audit evidence regarding the appropriateness of the use of the going concern basis of accounting. Management stated that the company maintains a positive net worth and possesses sufficient financial resilience to meet existing obligations. It estimated the immediate quantifiable financial impact of the qualification to be NIL, attributing the qualification to a limitation of scope rather than verified financial distress.

Financial Performance

The company’s earnings per share (EPS) for the year improved to ₹0.17 from a negative ₹0.30 in the previous year. The statement of assets and liabilities as of March 31, 2026, showed total assets of ₹535.71 lakh, compared to ₹546.55 lakh in the previous year. Cash and cash equivalents increased to ₹170.84 lakh from ₹3.30 lakh, driven by a net cash inflow from operating activities of ₹167.54 lakh.