U.Y. Fincorp statutory auditor B Nath & Co resigns over fee dispute
M/s B Nath & Co. resigned as statutory auditor of U.Y. Fincorp Limited on July 23, 2026, citing inadequate fees relative to the company's growing operational scale and regulatory complexity. The firm had been appointed in September 2023 for a five-year term. U.Y. Fincorp must now appoint a replacement to fill the casual vacancy.
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U.Y. Fincorp Limited has announced the resignation of its statutory auditors, M/s B Nath & Co., Chartered Accountants, effective July 23, 2026. The departure creates a casual vacancy in the statutory audit role, requiring the company to appoint a new firm to ensure compliance with regulatory timelines for financial reporting. This change in audit oversight may impact the timeline for future audit deliverables and signals a divergence in expectations regarding audit remuneration relative to the company’s expanding operational footprint.
The resignation was formalized through a letter dated July 23, 2026, signed by Gaurav More, Partner at B Nath & Co. The firm stated that discussions regarding statutory audit fees for the financial year ending March 31, 2027, did not yield a resolution. Consequently, the existing fees were deemed not commensurate with the time and effort required to conduct the audit engagement.
Regulatory Disclosures
In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, read with Para A(7) of Part A of Schedule III, the company disclosed the details of the resignation to the stock exchanges. The disclosure aligns with SEBI Circular No. SEBI/HO/CFD/CFD-POD-1/P/CIR/2023/123 dated July 13, 2023, and Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.
Key Details of Resignation
| Parameter | Details |
|---|---|
| Auditor Name | M/s B Nath & Co., Chartered Accountants |
| Firm Registration No. | 307057E |
| Effective Date | July 23, 2026 (close of business hours) |
| Reason for Resignation | Fees not commensurate with effort required due to growing scale and regulatory complexity |
| Previous Appointment Date | September 30, 2023 |
| Original Term End | Conclusion of AGM in 2028 |
Operational Context
B Nath & Co. was originally appointed for a five-year term covering financial years 2023-24 to 2027-28 at the Annual General Meeting held on September 30, 2023. Prior to this resignation, the firm submitted the Statutory Audit Report for the financial year ended March 31, 2026, and the Limited Review Report for the quarter ended March 31, 2026, dated May 27, 2026.
The auditor highlighted that the growing scale of operations and the increasing complexity of the business environment, including applicable RBI Scale Based Regulations and other regulatory compliances, necessitated greater audit resources than previously anticipated. The company confirmed it will take necessary steps to appoint a new statutory auditor to fill the casual vacancy and will intimate the stock exchanges accordingly.
Historical Stock Returns for UY Fincorp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +11.66% | +16.10% | +33.50% | +50.04% | +0.79% | -44.30% |
How might the delay in appointing a new statutory auditor impact U.Y. Fincorp's ability to meet upcoming financial reporting deadlines for FY2027?
Does the disagreement over audit fees signal underlying governance issues or aggressive cost-cutting measures within U.Y. Fincorp's management?
Which chartered accountancy firms are likely candidates to fill the casual vacancy, and how might their selection influence investor confidence?
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