KJMC Financial Services Ltd. , a Non-Banking Financial Company (NBFC), has announced a significant change in its auditing arrangements. V.P. Thacker & Co., Chartered Accountants, the company's statutory auditor, has stepped down from their position effective November 13, 2020.

Auditor Resignation Details

The auditing firm, which was appointed on September 30, 2019, was originally slated to serve until September 30, 2022. However, their tenure has been cut short due to challenges arising from the COVID-19 pandemic.

Reason for Resignation

In their resignation, V.P. Thacker & Co. cited the impact of the COVID-19 pandemic as the primary reason for their departure. The firm stated that the time required for conducting audits and reviews was not commensurate with the fees they were able to charge under the current circumstances.

Communication with Management

The auditor confirmed that they had discussed the reasons for their resignation with KJMC Financial Services' management. Importantly, they stated that there were no other material reasons for their departure beyond the cited pandemic-related challenges.

Impact on KJMC Financial Services

This unexpected change in auditors may require KJMC Financial Services to swiftly find a replacement to ensure continuity in their financial reporting and compliance processes. As an NBFC, maintaining accurate and timely audited financial statements is crucial for regulatory compliance and investor confidence.

The resignation of V.P. Thacker & Co. highlights the far-reaching impacts of the COVID-19 pandemic on business operations, extending even to essential services like financial auditing. It also underscores the challenges faced by both auditing firms and their clients in adapting to the new economic realities brought about by the global health crisis.

KJMC Financial Services will likely need to appoint a new statutory auditor to fill the vacancy left by V.P. Thacker & Co.'s resignation. Stakeholders and investors will be keen to see how the company manages this transition and ensures uninterrupted financial oversight.

KJMC Financial Services Limited has announced strong financial results for the first quarter, showcasing significant growth in both revenue and profitability.

Revenue and Profit Surge

The company reported a total income from operations of Rs. 3,890.96 lakhs for Q1, marking a substantial increase of 25.2% compared to Rs. 3,108.13 lakhs in the same quarter of the previous fiscal year. This robust top-line growth demonstrates KJMC Financial Services' ability to expand its business operations effectively.

Net profit after tax also saw a healthy rise, reaching Rs. 181.63 lakhs, up 15.1% from Rs. 157.84 lakhs in the corresponding quarter of the previous year. This improvement in profitability indicates the company's focus on operational efficiency and cost management.

Earnings Per Share and Financial Position

The company's earnings per share (EPS) improved to Rs. 0.22 in Q1, compared to Rs. 0.19 in the corresponding quarter of the previous year, reflecting the positive impact of increased profitability on shareholder returns.

KJMC Financial Services also reported a strengthened financial position, with reserves (excluding revaluation reserves) growing to Rs. 4,768.16 lakhs from Rs. 3,735.53 lakhs. The equity share capital remained stable at Rs. 1,659.68 lakhs.

Corporate Governance and Transparency

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors. In line with regulatory requirements, the results were published in newspapers, demonstrating KJMC Financial Services' commitment to transparency and corporate governance.

Investor Communication

As part of its investor relations efforts, KJMC Financial Services has made its detailed financial results available through stock exchange filings. The company's proactive approach to financial reporting and disclosure aligns with best practices in corporate communication.

The strong Q1 performance positions KJMC Financial Services well for the remainder of the fiscal year, as it continues to focus on growth and value creation for its stakeholders.