Abhishek Finlease Limited's Statutory Auditor Resigns Due to Organizational Changes

Abhishek Finlease announced a significant change in its auditing arrangements as AKGVG & Associates, the company's statutory auditor, tendered their resignation effective August 12, 2025. The unexpected departure comes less than two years into their appointment, which began on September 29, 2023.

Reasons for Resignation

AKGVG & Associates cited two primary reasons for their inability to continue as the statutory auditors:

1. A demerger with Shah Karia & Associates (Firm Registration No. 131546W)
2. The retirement of a relationship partner from AKGVG & Associates (Firm Registration No. 018598N)

Audit Timeline and Last Engagement

The auditing firm's tenure was originally scheduled to conclude at the Annual General Meeting for the fiscal year 2027-28. Their final audit work for Abhishek Finlease was a Limited Review Report for the quarter ended June 30, 2025, which was submitted on August 7, 2025, just days before their resignation.

Regulatory Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. CIR/CFD/CMD1/114/2019 dated October 18, 2019, Abhishek Finlease promptly informed the BSE Limited about this material event.

Auditor's Statement

In their resignation letter, AKGVG & Associates confirmed that there were no other material reasons for their resignation beyond the stated organizational changes. Priyank Shah, a partner at AKGVG & Associates, signed the resignation letter, emphasizing their commitment to ensuring a smooth transition of auditing responsibilities.

Company's Response

Mahendra M. Shah, the Managing Director of Abhishek Finlease, acknowledged the auditor's resignation in a formal communication to the BSE. The company is now likely to begin the process of appointing a new statutory auditor to fill the vacancy left by AKGVG & Associates.

This development highlights the importance of maintaining continuity in financial oversight and the potential impact of organizational changes within auditing firms on their client relationships. Shareholders and investors of Abhishek Finlease will be keen to see how swiftly the company appoints a new auditor to ensure uninterrupted financial reporting and compliance.