Kay Power & Paper Limited has informed BSE Limited about the resignation of its statutory auditors M/s. R Y Kulkarni & Associates, Chartered Accountants, effective February 3, 2026. The company filed this intimation under Regulation 30 of SEBI (LODR) Regulations, 2015, ensuring compliance with applicable statutory provisions.

Auditor Resignation Details

The resignation was formalized through a letter dated February 3, 2026, submitted by R Y Kulkarni & Associates to the company's Board of Directors. The auditing firm provided detailed reasons for their decision to step down from their statutory role.

Reasons for Resignation

The auditing firm cited two primary reasons for their resignation. The expiry of their Peer Review Certificate issued by the Institute of Chartered Accountants of India (ICAI) represents the main regulatory constraint. According to applicable provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, holding a valid Peer Review Certificate is mandatory for continuing as statutory auditors of listed entities.

Additionally, the firm mentioned old age and health issues of the proprietor R Y Kulkarni as contributing factors to their decision. The proprietor holds membership number 036596 with ICAI.

Regulatory Compliance

The company has fulfilled all disclosure requirements as mandated by SEBI regulations. The resignation letter includes comprehensive details as required under SEBI Circular CIR/CFD/CMD1/114/2019 dated October 18, 2019.

Transition Arrangements

The resigning auditors confirmed they will issue a limited review report for the quarter ended December 31, 2025, before their resignation becomes effective. The firm has declared that no other material reasons exist beyond those disclosed for their resignation.

Kay Power and Paper Limited, formerly known as Kay Pulp and Paper Mills Ltd., operates from its registered office and works at Gat No. 454/457, A/P. Borgaon, Tal./Dist. Satara. The company will need to appoint new statutory auditors to fulfill regulatory requirements and continue its audit functions.

Kay Power & Paper Limited has announced the transmission of equity shares under an approved scheme of demerger, following regulatory approval from the Hon'ble Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Share Transmission Details

Under the approved demerger scheme, 1,42,300 equity shares representing 0.40% of the company's paid-up equity share capital will be transmitted from the current holder to a new entity within the promoter group.

Shareholding Structure Changes

The transmission involves a change in the identity of the shareholding entity within the promoter group, while maintaining the same shareholding percentage.

Corporate Structure Impact

Following the completion of this transmission, Kay Chandra Capital and Investment Private Limited will become part of the promoter group of Kay Power and Paper Limited. The company has provided specific assurances regarding the impact of this corporate restructuring:

• The transmission constitutes a non-market transmission pursuant to the approved scheme of demerger
• No change in control or management of the company will occur
• The aggregate shareholding of the promoter and promoter group will remain unchanged

Regulatory Compliance

The demerger scheme received approval from the Regional Director, Western Region, Mumbai, and became operative from the appointed date of April 1, 2025. The effective date of the scheme is February 2, 2026. The company confirmed that apart from this specific transmission, there are no other changes in the promoters and promoter group structure.