Terraform Magnum has disclosed the resignation of its statutory auditors, M/s. J. D. Zatakia & Co., effective August 04, 2026. The audit firm cited a dispute over remuneration as the sole reason for stepping down, stating that the existing fees were not commensurate with the time and effort required to carry out the audit engagement and fulfill their responsibilities. This development forces the company to appoint a new statutory auditor ahead of its upcoming financial reporting cycles.

The resignation was formally communicated to the Board of Directors via a letter dated August 04, 2026, signed by Jitendra D. Zatakia, Proprietor of J. D. Zatakia & Co. The firm noted that discussions regarding statutory audit fees for the financial year ending March 31, 2027, did not result in an agreement. Consequently, the firm expressed its inability to continue in the role. Terraform Magnum submitted the intimation to BSE Limited on August 05, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Auditor Details and Tenure

J. D. Zatakia & Co. was originally appointed as the statutory auditor at the Annual General Meeting held on September 27, 2024. The appointment was for a five-year term covering financial years 2024-25 through 2028-29. Prior to resignation, the firm had submitted the Statutory Audit Report for the year ended March 31, 2026, dated May 26, 2026, and a Limited Review Report for the quarter ended June 30, 2026, dated July 16, 2026.

Regulatory Compliance and Disclosures

The disclosure was made in accordance with SEBI Master Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The annexure filed with the stock exchange confirmed that there were no other material reasons for the resignation beyond the fee dispute. The auditor also declared that there were no concerns regarding management-imposed limitations on audit evidence or lack of information that would significantly impact financial statements. No alternative procedures under SA 705 (Revised) were required due to information gaps, as the issue was strictly related to fee structures rather than access to records.

Harsh Shedge, Company Secretary & Compliance Officer of Terraform Magnum, signed the intimation letter. The company is now required to fill the vacancy of the statutory auditor in accordance with applicable provisions of the Companies Act, 2013, and SEBI regulations. Shareholders will be informed of the appointment of the new auditor through subsequent filings.

Terraform Magnum Limited reported unaudited financial results for the quarter ended June 30, 2026, recording zero income from operations and a net loss of ₹1.89 lakh. The company's equity share capital remained unchanged at ₹24 lakh during the period. The results are subject to a limited review by the statutory auditor, J. D. Zatakia & Company, Chartered Accountants.

The Board of Directors reviewed and approved the unaudited financial results for the quarter ended June 30, 2026, in a meeting held on July 16, 2026. The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015, and other recognized accounting practices. The company noted that it has deferred recognition of revenue under Ind AS 115 due to ongoing litigation concerning a property at Kandivali (East), where the assignee has allegedly committed defaults.

For the quarter ended June 30, 2026, the company reported a net loss of ₹1.89 lakh before tax and ₹1.89 lakh after tax. This compares to a net loss of ₹2.88 lakh before tax and ₹2.88 lakh after tax in the corresponding quarter of the previous year ended June 30, 2025. Total comprehensive income for the period stood at a loss of ₹1.89 lakh. The auditor highlighted a material uncertainty related to going concern as the net worth of the company continues to be negative, though the results were prepared on a going concern basis based on internal assessment.

Earnings per share (EPS) of ₹10 each, on a basic and diluted basis and not annualised, was reported at a loss of ₹0.79 for the quarter ended June 30, 2026. In the previous year's corresponding quarter, the EPS was a loss of ₹1.20. Other equity was reported at ₹0.00 for the current quarter, compared to ₹0.00 in the previous year's quarter.

Financial Summary