Skyline Ventures India Limited completed the 100% acquisition of SPVO Two Point O Ventures Tech Private Limited for ₹100,000, making the newly incorporated entity a wholly owned subsidiary. The acquisition, approved by the Board on 1 June 2026, involves the subscription to 10,000 equity shares of ₹10 each. The target entity operates in the IT & ITES sector and was incorporated on 13 February 2026 to facilitate software development and IT-enabled services, addressing operational challenges related to director updates on the Ministry of Corporate Affairs portal.

Auditor Changes and Board Approvals

The Board accepted the resignation of M/s K S Rao & Associates, Chartered Accountants, as statutory auditors effective 27 May 2026, creating a casual vacancy. To fill this gap, the Board appointed M/s B N Pai & Co., Chartered Accountants, subject to shareholder approval in accordance with the Companies Act, 2013. The Board also reviewed the finalisation of accounts for FY 2024-25 and FY 2025-26, authorising management to complete the audit process and publish pending financial results for the quarters ended 30 September 2025, 31 December 2025, and 31 March 2026.

Legal Proceedings and Forensic Audit

The Board took note of ongoing proceedings before the National Company Law Tribunal (NCLT), Hyderabad Bench. This includes CP No. 53/241/HDB/2025 and IA (CA) No. 26/2026 under Sections 241 and 242 of the Companies Act, 2013, as well as CP (IB) No. 187/7/HDB/2025 and IA (IBC) No. 747/2026 under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Raj Breeders and Hatcheries Private Limited. The Board also reviewed interim forensic audit reports submitted by M/s Sarat & Associates.

Acquisition Details

Skyline Ventures India Limited's statutory auditor, M/s K S Rao & Associates, resigned effective May 27, 2026, citing pervasive scope limitations and the inability to obtain sufficient appropriate audit evidence. The firm stated that the non-availability of books of account, financial information, and supporting records for Q2, Q3, and Q4 of FY 2025-26, as well as for the full-year statutory audit, made it impossible to perform the necessary procedures. Consequently, the auditor cannot ensure compliance with Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates the submission of annual audited standalone and consolidated financial results by May 30, 2026.

The resignation follows a formal notice dated May 15, 2026, wherein the auditor requested the necessary records to complete the limited review and statutory audit. In response, the Company Secretary confirmed via email on May 18, 2026, that the company was not in a position to provide the requisitioned information. The auditor highlighted that while the limited review for Q1 of FY 2025-26 was completed and results were filed, the records for subsequent quarters remained unavailable due to a lack of handover from the erstwhile management.

Governance and Record-Keeping Issues

The auditor detailed several governance breakdowns that contributed to the scope limitations. The financial statements for FY 2024-25 were not adopted by shareholders at the Annual General Meeting held on September 30, 2025, and rectified or restated financials have not been prepared or provided. Additionally, the Board of Directors reconstituted on December 31, 2025, confirmed that no handover of books of account or financial records had been received from the previous management. The absence of opening balances and prior period records precluded the auditor from conducting the audit for FY 2025-26.

Material events occurring between October 1, 2025, and December 31, 2025, including significant fund inflows and outflows and changes in directorship, lacked supporting documentation. The erstwhile management failed to prepare or file quarterly financial results for Q2, Q3, and Q4 of FY 2025-26. The auditor noted that the registered office was vacated due to non-payment of dues and that statutory assets such as laptops and computers recorded in the balance sheet had not been handed over.

Statutory and Regulatory Constraints

The company faces significant statutory filing constraints due to incomplete banking access, non-updation of Ministry of Corporate Affairs (MCA) credentials, and multiple unauthorized banking transactions. An FIR has been filed at the Madhapur Police Station against the then directors regarding these unauthorized transactions. A forensic audit is currently underway, but significant information remains unavailable. The Company Secretary admitted that due to these practical limitations, the timelines for finalizing accounts remain uncertain and beyond the company's direct control.

A dispute regarding the resignation of the erstwhile CFO, Ms. Swapna Tervati, has further complicated matters. The present management could not locate a valid resignation email in official records, resulting in a lack of authorized signatories for statutory filings such as DIR-12 for the appointment of new directors. This has prevented the updation of MCA records and restricted access to underlying financial information required for the audit.

Auditor Disclosure Details

The auditor provided a comprehensive disclosure outlining the reasons for the resignation and the efforts made to secure the necessary information. The table below summarizes the key particulars of the auditor's association and the factors leading to the resignation.

M/s K S Rao & Associates stated that the inability to obtain sufficient appropriate audit evidence was due to management-imposed limitations, as the erstwhile management failed to provide the required records. The firm confirmed that alternative procedures could not be performed because basic books of account, bank statements, ledgers, vouchers, and asset records were not provided. The auditor will file e-Form ADT-3 with the Registrar of Companies within 30 days as required by Section 140(2) of the Companies Act, 2013.