Shree Securities Limited has announced the resignation of its statutory auditor, M/s. R. K. Kankaria & Co., effective August 10, 2026. The firm, which served as the company’s statutory auditor since September 30, 2023, cited preoccupation as the primary reason for stepping down. The resignation follows an advance intimation letter dated June 20, 2026, and a formal resignation letter submitted on August 10, 2026, by Shreyansh Kothari, Partner at R. K. Kankaria & Co.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company notified BSE Limited and The Calcutta Stock Exchange Limited on August 11, 2026. In compliance with SEBI Circular CIR/CFD/CMD1/114/2019 dated October 18, 2019, the auditors completed the limited review of the quarterly results for the quarter ended June 30, 2026, signing the report on August 10, 2026, before tendering their resignation.

Auditor Transition Details

M/s. R. K. Kankaria & Co., Chartered Accountants (Firm Registration No. 321093E), had been scheduled to hold office until September 30, 2028. The firm’s address is listed as 12B, Russel Street, 7th Floor, Kolkata-700 071. The resignation process involved no reported concerns or disputes between the auditor and the company’s management or Audit Committee.

Regulatory Compliance and Reporting

The company confirmed that there were no instances where information requested by the auditor was not provided. Consequently, there were no management-imposed limitations or circumstances beyond management’s control that affected the audit evidence. The auditors also confirmed that no alternative procedures under SA 705 (Revised) were required due to lack of information.

In their declaration, Shreyansh Kothari affirmed that the information provided in the resignation letter is correct and complete, with no other material reasons for the resignation. The company is now expected to appoint a new statutory auditor in accordance with applicable regulations to ensure continuity in financial reporting oversight.

Shree Securities Limited reported a net loss of ₹2,739.14 lakh for the first quarter of FY26 (Q1FY26), ending June 30, 2026, compared to a net loss of ₹0.12 lakh in the same period last year. The Board of Directors approved the unaudited financial results on August 10, 2026, after postponing the meeting from August 4 due to delays in finalizing accounts. The significant loss was primarily driven by an exceptional item of ₹2,745 lakh, while revenue from operations increased to ₹66.70 lakh from ₹15.83 lakh in Q1FY25.

The company’s statutory auditors, R K Kankaria & Co., issued a limited review report under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In their report, the auditors highlighted an emphasis of matter regarding unsecured loans advanced to two parties totaling ₹3.15 crore at a concessional interest rate of 4% per annum, which is lower than prevailing bank rates. Additionally, the audit noted outstanding statutory dues, including TDS payable amounts ranging from ₹780 to ₹1.35 lakh that remained unpaid for over six months.

Financial Performance

Shree Securities saw its revenue from operations rise significantly to ₹66.70 lakh in Q1FY26, up from ₹15.83 lakh in Q1FY25. However, this growth was offset by a sharp increase in expenses. Total expenses stood at ₹60.84 lakh, compared to ₹15.95 lakh in the previous year’s corresponding quarter. Finance costs were the largest expense component at ₹38.75 lakh, followed by depository expenses of ₹11.91 lakh.

The profit before tax was negative ₹2,739.14 lakh, largely attributable to the exceptional item. Earnings per share (EPS) stood at ₹(0.343), compared to ₹(0.000) in Q1FY25. The company had no other operating income or gains from fair valuation of investments during the quarter.

Auditor Observations

R K Kankaria & Co., the statutory auditors, drew attention to specific balance sheet items in their review. They noted that Shree Securities had granted loans to Shreeji Shipping (₹2.00 crore) and Siddhi Marine Services LLP (₹1.15 crore) at 4% p.a. interest. This rate is below market standards, raising questions about related-party transaction fairness.

Furthermore, the auditors listed outstanding statutory dues as per Clause 3(vii)(a) of the Companies (Auditor's Report) Order, 2020 (CARO 2020). Outstanding TDS payables included ₹20,423 for AY 2023–24, ₹25,491 for AY 2025–26, and ₹1,35,024 for AY 2026–27. These amounts have been outstanding for more than six months. Shorter-term outstanding TDS payables included ₹1,43,786 and ₹3,63,781 for subsequent assessment years.

Shareholding Pattern

As of June 30, 2026, public shareholders held 79,79,98,000 shares, representing 100% of the shareholding. Promoter and promoter group shareholding was negligible, with only 2,000 non-encumbered shares held, accounting for 0.00% of total capital. No shares were pledged or encumbered by promoters. The company reported no investor complaints received, pending, or disposed of during the quarter.