syngene international announced that M/s. B S R & Co. LLP has resigned as the statutory auditor of its material subsidiary, Syngene Scientific Solutions Limited, effective July 7, 2026. The resignation was communicated to the stock exchanges on July 8, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The decision to step down was driven by the management's intention to align the subsidiary's auditors with those of the holding company, necessitated by the mandatory rotation of B S R & Co. LLP as auditors of Syngene International Limited under the Companies Act, 2013.

The audit firm stated that it was appointed on July 21, 2023, to hold office until the conclusion of the 6th Annual General Meeting following the financial year ending March 31, 2028. B S R & Co. LLP confirmed that it has completed the statutory audit for the period ending March 31, 2026, and issued the audit report on April 28, 2026. Consequently, the firm will not continue as statutory auditors for the year ending March 31, 2027.

Auditor Details and Resignation Timeline

The resignation letter and the accompanying Annexure A provided specific details regarding the auditor's tenure and the reasons for the exit. The firm confirmed there were no material reasons for the resignation other than the alignment with the holding company's auditor rotation requirements. The disclosures submitted to the exchanges included the following particulars:

Regulatory Compliance

The subsidiary confirmed that it would file the necessary forms, including ADT-3, with the Registrar of Companies (ROC) in accordance with the Companies Act, 2013. The disclosures provided in Annexure A confirmed that there were no concerns or limitations imposed by management that prevented the auditor from obtaining sufficient appropriate audit evidence. The firm also confirmed that the lack of information was not prevalent in previously reported financial statements.

Syngene International has secured a refund of ₹8.62 Cr for Assessment Year 2014-15 after tax authorities gave effect to an order passed by the National Faceless Appeal Centre (NFAC). The order, dated May 14, 2026, was received by the company on July 6, 2026, and concludes a litigation process that began with an initial demand of ₹16.72 Cr in 2016. While the refund amount is yet to be credited, the development will lead to a decrease in the company's contingent liability related to the financial period in question.

The dispute originated when the Deputy Commissioner of Income-tax, Circle 6(1)(1), Bangalore, passed an order under Section 143(3) of the Income Tax Act on December 23, 2016. This order disallowed certain deductions claimed by Syngene International and raised a demand of ₹16,72,20,900. Following an appeal filed by the company on January 24, 2017, the Assessing Officer passed a subsequent order under Section 154 of the Act on March 8, 2017, increasing the total demand to ₹33,69,27,800.

The NFAC intervened with an order under Section 250 of the Act dated February 13, 2026, partly allowing the company's appeal. The recent order from the Assessing Officer implements this NFAC decision, formally granting a refund of ₹8,62,14,600, which includes interest. Syngene International stated that it is currently analysing the order to determine if any further action is required.

Financial Implications

Syngene International stated that the order does not expect to have a material impact on its financials, operations, or activities. The primary accounting effect will be a reduction in the contingent liability associated with the Assessment Year 2014-15. No penalties, restrictions, or sanctions were imposed in the order.

Litigation Timeline