Vikas Ecotech appoints MASAR & Co. as statutory auditor after KSMC resignation

1 min read Updated on 17 Aug 2026, 08:15 PM

Reviewed by

Shriram SScanX News Team

AI Summary

Vikas Ecotech Ltd replaced its statutory auditor, appointing MASAR & Co. following the resignation of KSMC & Associates. The outgoing firm cited mandatory tenure rotation and an engagement partner's medical emergency that hindered the Q1 FY27 review. The new appointment requires shareholder approval at the upcoming AGM.

*this image is generated using AI for illustrative purposes only.

Vikas Ecotech has appointed M/s MASAR & Co., Chartered Accountants, as its new statutory auditor, effective August 17, 2026. The appointment fills a casual vacancy created by the resignation of M/s KSMC & Associates, Chartered Accountants, which concluded its tenure after two consecutive five-year terms.

The Board of Directors approved the change during a meeting held on August 17, 2026, based on the recommendation of the Audit Committee. The new appointment is subject to approval by shareholders at the ensuing Annual General Meeting (AGM) for the financial year 2025-26.

Reasons for Resignation

M/s KSMC & Associates cited two primary reasons for stepping down in its resignation letter dated August 12, 2026:

Tenure Expiry: The firm completed its aggregate tenure of two consecutive terms (5+5 years) as per rotation requirements under the Companies Act, 2013, making it ineligible for re-appointment.
Operational Constraint: The firm stated that the limited review of financial results for the quarter ended June 30, 2026 (Q1 FY27), could not commence because the Engagement Partner was abroad due to a sudden personal or medical emergency. This unavailability prevented the completion of the audit within the requisite timeline.

The company confirmed in its exchange filing that there are no material reasons for the resignation other than those stated in the letter from M/s KSMC & Associates.

New Auditor Profile

M/s MASAR & Co., established in 2011, brings over 15 years of experience in audit, assurance, taxation, and regulatory compliance. The firm serves domestic and international clients with expertise in cross-border transactions and business advisory services.

Particulars	Details
Outgoing Auditor	M/s KSMC & Associates (FRN: 035565N)
Incoming Auditor	M/s MASAR & Co. (FRN: 033829N)
Effective Date	August 17, 2026
Term	Until conclusion of ensuing AGM
Reason for Change	Resignation due to tenure expiry and partner unavailability

The company disclosed these developments pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Historical Stock Returns for Vikas Ecotech

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	-1.80%	-8.40%	-27.81%	-48.58%	-43.81%

How might the transition to MASAR & Co. impact the timeline for Vikas Ecotech's Q1 FY27 financial results publication?

Will the new auditor's expertise in cross-border transactions influence Vikas Ecotech's future international expansion or M&A strategies?

Are there any pending regulatory observations or compliance issues from KSMC & Associates' tenure that MASAR & Co. will need to address immediately?

Read Next Article

Vikas Ecotech FY26 profit falls, auditors flag key risks

2 min read Updated on 11 Jul 2026, 12:47 PM

Reviewed by

Naman SScanX News Team

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Vikas Ecotech Limited reported a sharp decline in standalone net profit to ₹12.72 lakh for FY26 from ₹1,428.14 lakh in the previous year, posting a net loss of ₹109.74 lakh in Q4FY26. The statutory auditors issued a qualified opinion, citing delays in statutory dues, unapproved related party transactions, and insufficient evidence regarding the recoverability of a ₹18.50 crore loan and investments. The company also faces an income tax demand of ₹17.71 crore and settled a dispute with Hallow Securities Private Limited. Consolidated net profit for FY26 fell to ₹313.70 lakh from ₹1,698.37 lakh in FY25.

*this image is generated using AI for illustrative purposes only.

Vikas Ecotech Limited reported a standalone net profit of ₹12.72 lakh for the financial year ended March 31, 2026, a significant decline from the net profit of ₹1,428.14 lakh in FY25. For the quarter ended March 31, 2026, the company posted a standalone net loss of ₹109.74 lakh, reversing the net profit of ₹197.59 lakh in the same period of the previous year. Total income for the full year decreased to ₹26,782.87 lakh from ₹29,087.50 lakh in the previous year.

The statutory auditors, KSMC & Associates, issued a qualified opinion on the standalone and consolidated financial results. The report highlighted delays in the deposit of statutory dues and noted that the company continued business and investment activities, including granting inter-corporate deposits, without sufficient audit evidence regarding their business rationale. The auditors were unable to determine the impact of these matters on the financial results.

Auditor’s Key Observations

The auditors identified several material issues affecting the financial statements. The company entered into related party transactions, including inter-corporate deposits and investments, without obtaining requisite shareholder approvals as required by Regulation 23 of the SEBI (LODR) Regulations and Section 188 of the Companies Act, 2013. Additionally, a loan outstanding of ₹18.50 crore lacked sufficient evidence regarding recoverability.

Further, an investment of ₹132.50 crore with M/s BG Technocrats Private Limited was cancelled during the year, with ₹47.00 crore received and a receivable of ₹85.50 crore recognized. Subsequently, ₹42.97 crore was received, leaving a balance of ₹42.53 crore. The auditors stated they could not determine the necessary adjustments due to missing documentation regarding the cancellation and recoverability.

Consolidated Performance and Other Disclosures

On a consolidated basis, the company reported a net profit of ₹313.70 lakh for FY26, down from ₹1,698.37 lakh in FY25. Consolidated total income for the year stood at ₹36,032.64 lakh against ₹38,384.98 lakh in the prior year. For Q4FY26, the consolidated net loss was ₹44.41 lakh compared to a net profit of ₹430.36 lakh in Q4FY25.

The auditors also drew attention to an income tax demand of ₹17.71 crore, which the company is contesting, and a settlement agreement with Hallow Securities Private Limited regarding dues of ₹20.45 crore. The company’s shareholding in its erstwhile wholly-owned subsidiary, Vikas Organics Private Limited, was diluted to 53.19% following a preferential allotment.

Financial Results Summary

Particulars	Standalone FY26	Standalone FY25	Consolidated FY26	Consolidated FY25
Total Income	26,782.87	29,087.50	36,032.64	38,384.98
Total Expenses	26,664.05	28,357.50	35,473.83	37,518.88
Net Profit/ (Loss)	12.72	1,428.14	313.70	1,698.37
Basic EPS (₹)	0.00	0.09	0.02	0.10

Historical Stock Returns for Vikas Ecotech

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	-1.80%	-8.40%	-27.81%	-48.58%	-43.81%

What specific measures will management implement to address the statutory auditors' qualified opinion regarding the lack of business rationale for inter-corporate deposits?

How does the company plan to recover the outstanding balance of ₹42.53 crore from M/s BG Technocrats Private Limited given the missing documentation?

What is the likelihood of success regarding the ongoing contestation of the ₹17.71 crore income tax demand, and how might a potential adverse ruling impact liquidity?