Astron Paper & Board Mill's Auditors Resign, Citing Regulatory Pressures and Documentation Issues

Astron Paper & Board Mill Limited , a company listed on the Indian stock exchanges, has announced the resignation of its statutory auditors, SNDK Associates LLP, effective November 14, 2025. This development comes amidst growing regulatory pressures and concerns over the timely availability of audit evidence.

Key Points of the Auditor Resignation

Resignation Date: November 14, 2025
Auditor: SNDK Associates LLP (Firm Registration No. W100060)
Reasons Cited:
1. Increased regulatory obligations
2. Time constraints
3. Lack of timely availability of audit evidence from management

Impact and Company Response

The company has accepted the auditors' resignation, and the Audit Committee has taken note of the development. Astron Paper & Board Mill Limited has assured stakeholders that it is initiating steps to fill the casual vacancy in accordance with the provisions of the Companies Act, 2013.

Auditor's Statement

In their resignation letter, SNDK Associates LLP highlighted several key points:

Continuous amendments in reporting and disclosure requirements under various statutes have increased the complexity and time demands of the audit process.
The firm cited challenges in obtaining sufficient appropriate audit evidence and timely information from the company's management.
The auditors confirmed the completion of the limited review for the financial results of the quarter and half-year ended September 30, 2025.

Regulatory Compliance

In compliance with SEBI Circular No. CIR/CFD/CMD1/114/2019 dated October 18, 2019, Astron Paper & Board Mill Limited has made the following disclosures:

Disclosure Item	Details
Reason for resignation	Increased professional commitments, regulatory obligations, and inability to devote sufficient time to the audit
Other material reasons	None other than those stated in the resignation letter
Auditor's efforts	Indicated that adequate and timely audit evidence was not made available by management

This change in auditors raises questions about the company's internal processes and its ability to meet the increasing demands of regulatory compliance. Investors and stakeholders will likely be watching closely to see how Astron Paper & Board Mill Limited addresses these concerns and appoints new auditors to ensure continued transparency and compliance with regulatory requirements.

As the situation develops, it will be crucial for the company to maintain open communication with its stakeholders and take swift action to address any underlying issues that may have contributed to the auditors' resignation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.56%	-8.09%	-30.01%	-63.71%	-58.08%	-83.87%

Astron Paper & Board Mill Limited (ISIN: INE646X01014) has reported a net loss of Rs. 475.43 lakhs for the quarter ended September 30, 2025, as the company grapples with significant operational and financial challenges.

Key Financial Highlights

Metric	Amount
Revenue from operations	Rs. 0.00
Net loss	Rs. 475.43 lakhs

Plants remain shut down since September 2024

Operational Challenges

The company's operations have come to a standstill, with its plants remaining shut down since September 2024. This prolonged closure has resulted in zero revenue from operations for the quarter under review.

Financial Distress

Astron Paper & Board Mill is facing severe financial distress, as evidenced by the following:

Insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) 2016
Enforcement actions under the SARFAESI Act 2002
Default on bank loans totaling Rs. 81.41 crores

Corporate Governance Issues

The company is also facing corporate governance challenges:

Majority of independent directors have resigned
Non-compliance with board composition requirements

Auditor's Observations

The company's auditors, S N D K & Associates LLP, have raised significant concerns in their review report:

Going concern status: The auditors believe the company's ability to continue as a going concern is substantially affected.
Asset valuation: Concerns about the valuation of inventories and property, plant, and equipment (PPE) due to prolonged plant shutdown.
Financial reporting: Issues with the recognition and measurement of various financial items, including trade receivables, loans, and investments.
Compliance: Non-compliance with certain regulatory requirements, including board composition and the absence of a Company Secretary.

Outlook

The company's future remains uncertain as it navigates through insolvency proceedings and attempts to address its financial and operational challenges. Stakeholders should closely monitor further developments and any potential restructuring plans.

Note: This article is based on the unaudited financial results and auditor's review report for the quarter ended September 30, 2025. Investors and stakeholders are advised to exercise caution and seek professional advice before making any investment decisions.