Amara Raja Subsidiary's Auditor Resigns for Group Alignment

1 min read     Updated on 24 Sept 2025, 05:51 PM
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Reviewed by
Jubin VergheseScanX News Team
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Overview

M/s Brahmayya & Co, Chartered Accountants, resigned as statutory auditors of Amara Raja Advanced Cell Technologies Private Limited (ARACT), a wholly owned subsidiary of Amara Raja Energy & Mobility Limited (ARE&M). The resignation, effective September 24, 2025, comes before the scheduled term end in 2028. The move aims to align the subsidiary's auditor with that of the holding company for enhanced operational efficiency. Brahmayya & Co confirmed no management concerns at ARACT. The firm had completed ARACT's audit up to March 31, 2025, and a limited review for the quarter ended June 30, 2025.

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Amara Raja Energy & Mobility Limited (ARE&M) announced a significant change in its auditing structure as M/s Brahmayya & Co, Chartered Accountants, resigned from their position as statutory auditors of Amara Raja Advanced Cell Technologies Private Limited (ARACT), a wholly owned material subsidiary of ARE&M.

Resignation Details

The resignation, effective September 24, 2025, comes nearly two years before the scheduled completion of their five-year term, which was set to expire on March 31, 2028. Brahmayya & Co had been appointed as ARACT's statutory auditors on August 29, 2023.

Reason for Resignation

The primary reason cited for the resignation is the company's strategic decision to align the statutory auditor of its subsidiary with that of the holding company. This move aims to enhance operational efficiency and maintain consistency in the audit process across the group.

Auditor's Statement

In their resignation letter, Brahmayya & Co confirmed that there were no concerns regarding the management of ARACT. They stated, "We confirm that there are no circumstances connected with our resignation which we consider should be brought to the attention of the members or creditors of the Company, other than the reason stated above."

Timing and Background

The resignation follows the completion of Brahmayya & Co's tenure as statutory auditors of the holding company, Amara Raja Energy & Mobility Limited, which concluded on August 14, 2025. Prior to their resignation, the firm had completed the statutory audit for ARACT up to March 31, 2025, and had also conducted a limited review of financial statements for the quarter ended June 30, 2025.

Regulatory Compliance

ARE&M has complied with the regulatory requirements by providing detailed information about the resignation as per the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, and relevant SEBI circulars.

Looking Ahead

While the company has not yet announced a replacement for Brahmayya & Co, the move signals ARE&M's intent to streamline its auditing processes across its group of companies. This change is expected to bring about greater synergy and efficiency in the company's financial reporting structure.

Investors and stakeholders will likely be watching closely to see who ARE&M appoints as the new auditor for ARACT, and how this change might impact the company's financial reporting processes going forward.

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Government Considers Incentives for Critical Mineral Recycling, Potential Impact on Amara Raja

1 min read     Updated on 03 Sept 2025, 02:42 PM
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Reviewed by
Radhika SahaniScanX News Team
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Overview

The Indian government is exploring an incentive program to promote critical mineral recycling processes. This initiative could impact companies in the battery and energy storage sector, including Amara Raja Batteries Ltd. The program aims to encourage sustainable resource management and circular economy practices in India's growing renewable energy and electric vehicle sectors. Critical minerals like lithium, cobalt, and nickel, essential for modern battery technologies, are the focus of this potential recycling initiative. The move reflects the increasing importance of sustainable practices in the energy storage industry as India pushes towards electrification and renewable energy adoption.

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The Indian government is reportedly contemplating the introduction of an incentive program aimed at promoting critical mineral recycling processes, a move that could have implications for companies in the battery and energy storage sector, including Amara Raja Batteries Ltd.

Potential Incentive Program

According to recent reports, the government is exploring ways to encourage the recycling of critical minerals. This initiative, if implemented, could mark a significant step towards sustainable resource management and circular economy practices in India's rapidly growing renewable energy and electric vehicle sectors.

Implications for Amara Raja

While specific details about the proposed incentive program and Amara Raja's potential involvement remain unclear, the news has drawn attention to the company's position in the market. Amara Raja, a leading manufacturer of industrial and automotive batteries, could potentially benefit from such an initiative, given its involvement in the battery industry.

Critical Minerals in Focus

Critical minerals, which include elements like lithium, cobalt, and nickel, are essential components in modern battery technologies. Recycling these minerals not only helps in conserving resources but also reduces the environmental impact of battery production and disposal.

Industry Outlook

The government's consideration of this incentive program reflects the growing importance of sustainable practices in the energy storage sector. As India pushes towards electrification and renewable energy adoption, efficient recycling of critical minerals could become a crucial factor in the industry's long-term sustainability and competitiveness.

While the exact structure and implementation details of the proposed incentive program are yet to be revealed, industry stakeholders, including companies like Amara Raja, will likely be watching these developments closely. The potential introduction of such incentives could influence future strategies and investments in the battery and energy storage sector.

As more information becomes available, it will be clearer how this initiative might shape the landscape for critical mineral recycling and its impact on key players in the industry.

Historical Stock Returns for Amara Raja Energy & Mobility

1 Day5 Days1 Month6 Months1 Year5 Years
+0.31%+1.93%-2.45%-1.72%-26.50%+64.96%
Amara Raja Energy & Mobility
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