Mangal Compusolution's Statutory Auditors MGB & CO LLP Resign Over Fee Dispute
Mangal Compusolution Limited's statutory auditors, MGB & CO LLP, resigned on August 8, 2025, citing disagreement over audit fees. The resignation comes less than two years into their five-year term. The auditors proposed a fee revision due to enhanced regulatory requirements and increased audit scope following the company's listing on BSE SME Exchange. Mangal Compusolution did not accept this proposal. The company has notified BSE Limited about this change in compliance with SEBI regulations.
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Mangal Compusolution Limited announced on August 8, 2025, that its statutory auditors, MGB & CO LLP, Chartered Accountants, have resigned with immediate effect. The resignation comes less than two years into their five-year term, which was set to expire in March 2028.
Reasons for Resignation
The primary reason cited for the auditors' resignation is a disagreement over audit fees. Following Mangal Compusolution's listing on the BSE SME Exchange, the company faced:
- Enhanced regulatory requirements
- Increased audit scope
- Elevated stakeholder expectations
These changes necessitated significantly greater audit involvement and compliance obligations.
MGB & CO LLP proposed a revision in their audit fees to reflect the expanded scope, which included half-yearly reviews. However, Mangal Compusolution did not accept this proposal, leading to the auditors' decision to step down.
Audit Status and Transition
The resigning auditors confirmed that they had completed the statutory audit for the financial year ended March 31, 2025. However, they had not commenced work on the audit for the 2025-2026 financial year.
Regulatory Compliance
In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, Mangal Compusolution has formally notified the BSE Limited about this change in auditors. The company provided details of the resignation as required by SEBI regulations and circulars.
Company Response
Mangal Compusolution's Executive Director, Mukesh Desai, signed the regulatory filing acknowledging the auditor's resignation. The company will now need to appoint new statutory auditors to ensure continuity in its financial reporting and compliance with regulatory requirements.
Impact on Stakeholders
This sudden change in auditors may raise concerns among stakeholders about the company's financial oversight and corporate governance practices. It also highlights the increasing costs and complexities that companies face when transitioning to listed status, particularly in the SME segment.
The resignation of MGB & CO LLP underscores the importance of aligning expectations between companies and their auditors, especially in light of evolving regulatory landscapes and market expectations for listed entities.
Historical Stock Returns for Mangal Compusolution
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -7.28% | -7.65% | +3.97% | +12.54% | +10.18% |
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