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.

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

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