Lumax Auto Technologies Limited , a prominent player in the auto components sector, has disclosed a significant change in its material subsidiary's audit arrangements. IAC International Automotive India Private Limited (formerly known as Lumax Integrated Ventures Private Limited), a material subsidiary of Lumax Auto Technologies, announced the resignation of its statutory auditors, S.R. Batliboi & Co. LLP, Chartered Accountants.

Key Details of the Resignation

The resignation, effective August 12, 2025, comes as part of a strategic move to align the subsidiary's auditors with those of the parent company. S.R. Batliboi & Co. LLP had been appointed as statutory auditors for IAC International Automotive India Private Limited on September 18, 2024, with a term scheduled to expire at the conclusion of the Annual General Meeting (AGM) for the financial year 2027-28.

Reasons for the Change

The primary reason cited for this change is the completion of S.R. Batliboi & Co. LLP's tenure as statutory auditors for Lumax Auto Technologies Limited (the holding company) at the AGM held on September 27, 2024. The management of IAC International Automotive India Private Limited is proposing to align its statutory auditors with the holding company's auditor, prompting this resignation.

Audit Status and Transition

Prior to their resignation, S.R. Batliboi & Co. LLP had completed the following:

• Audit of financial statements for the year ended March 31, 2025, issuing their audit report on May 22, 2025.
• Limited review for the quarter ended June 30, 2025, with an unmodified conclusion in their review report dated August 02, 2025.

Implications and Next Steps

This change in auditors for a material subsidiary could potentially impact the overall audit process for Lumax Auto Technologies Limited. The company will likely appoint new auditors for IAC International Automotive India Private Limited in the near future, aligning with the auditors of the parent company.

The move underscores Lumax Auto Technologies' commitment to maintaining consistency in its financial reporting and audit processes across its group companies. It also reflects the company's proactive approach to corporate governance and transparency in its financial operations.

Investors and stakeholders will be keen to see how this transition unfolds and its potential impact on the financial reporting processes of both the subsidiary and the parent company in the coming quarters.

Lumax Auto Technologies Limited announced a significant change in its auditing structure as S.R. Batliboi & Co. LLP resigned from its role as statutory auditors of IAC International Automotive India Private Limited, a material subsidiary of the company. The resignation, effective August 12, 2025, comes less than a year into their four-year term, which was initially set to conclude at the Annual General Meeting in FY 2027-28.

Reasons for Resignation

The primary driver behind this unexpected move is the management's decision to align the subsidiary's auditors with those of the holding company. S.R. Batliboi & Co. LLP had previously completed their tenure as statutory auditors of Lumax Auto Technologies Limited in September 2024. This strategic realignment aims to ensure consistency in auditing practices across the group.

Auditor's Statement

In their resignation letter, S.R. Batliboi & Co. LLP emphasized that there were no material concerns or issues leading to their departure. The firm had recently submitted its latest limited review report for the quarter ended June 30, 2025, on August 2, 2025, further underlining the absence of any auditing discrepancies.

Regulatory Compliance

Adhering to regulatory requirements, Lumax Auto Technologies Limited disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also complied with SEBI Circular No. CIR/CFD/CMD1/114/2019 dated October 18, 2019, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, by providing detailed information about the auditor's resignation.

Impact and Next Steps

While the resignation marks a significant change, both the company and the auditing firm have assured stakeholders that this transition is part of a broader strategic alignment rather than a response to any financial or operational concerns. The move is expected to streamline the auditing process across Lumax Auto Technologies and its subsidiaries.

As the auto component industry continues to evolve, Lumax Auto Technologies' decision to harmonize its auditing structure across its group companies reflects a proactive approach to corporate governance and financial transparency. Stakeholders will likely be keen to see who the company appoints as the new auditors for IAC International Automotive India Private Limited and how this change might influence the group's financial reporting processes going forward.