Terraform Realstate has announced 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 primary 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 requires the company to appoint a new statutory auditor before the conclusion of its next Annual General Meeting.

The resignation was formally intimated to BSE Limited on August 05, 2026, pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 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. Ketan Mafatlal Trivedi, Company Secretary & Compliance Officer of Terraform Realstate, signed the intimation letter.

J. D. Zatakia & Co. was originally appointed as the statutory auditor at the Annual General Meeting held on September 27, 2024. The firm was engaged for a five-year term covering financial years 2025 through 2029. Prior to resigning, the firm had submitted the Statutory Audit Report for the year ended March 31, 2026, dated May 26, 2026, and the Limited Review Report for the quarter ended June 30, 2026, dated July 16, 2026.

In its resignation letter addressed to the Board of Directors, J. D. Zatakia & Co. noted that discussions regarding the statutory audit fees for the financial year ending March 31, 2027, did not result in an agreement. Jitendra D. Zatakia, Proprietor of the firm, stated that due to this impasse, they were unable to continue as statutory auditors. The firm confirmed there were no other material reasons for the resignation and no concerns regarding management-imposed limitations or lack of information.

Resignation Details

What This Means

The resignation of a statutory auditor mid-term often signals underlying friction between the company’s management and its external oversight mechanism. In this case, the explicit citation of fee inadequacy relative to effort suggests either an increase in the complexity of Terraform Realstate’s financial reporting requirements or a disagreement on valuation of services. Investors should monitor the timeline for the appointment of a successor auditor, as delays could impact the finalization of subsequent quarterly results. The company must now initiate the process to appoint a new firm approved by shareholders in accordance with regulatory norms.

Terraform Realstate Ltd reported a net loss of ₹1.40 lakh for the quarter ended June 30, 2026, as the company recorded zero revenue from operations. The real estate developer's financial performance for Q1FY27 reflects a continued period of operational inactivity, with the net worth remaining negative. Despite these challenges, the financial statements have been prepared on a going concern basis based on management's future cash flow projections and business prospects.

The Board of Directors approved the unaudited financial results at its meeting held on July 16, 2026. The results were subjected to a limited review by the statutory auditor. The company stated that the figures for previous periods have been regrouped or rearranged where necessary to correspond with the current period presentation.

Financial Performance

The company's total income from operations stood at ₹0.00 lakh for the quarter, unchanged from the previous quarter and the corresponding period in the previous year. The net loss for the period after tax was ₹1.40 lakh, widening from the net profit of ₹17.51 lakh reported in the preceding quarter ended March 31, 2026. For the full year ended March 31, 2026, the company had reported a net profit of ₹9.23 lakh.

The Earnings Per Share (EPS) for the quarter was reported at (₹0.28), compared to ₹3.50 in the previous quarter. The company's equity share capital remained constant at ₹50.00 lakh during the period.