MIRC Electronics Limited , the company behind the Onida brand, has announced the resignation of its statutory auditor, ASA Associates LLP, effective November 14, 2025. The auditor's departure, which comes midway through their appointed term, has been attributed to persistent delays in receiving information from the company's management.

Reasons for Resignation

ASA Associates LLP, in their resignation letter, cited that the engagement had become commercially unviable due to consistent delays in obtaining necessary information and explanations from MIRC Electronics' management. This situation apparently hindered the auditor's ability to perform their duties effectively.

Auditor's Appointment and Tenure

The auditing firm was originally appointed for a five-year term from July 2023 to 2028. Their premature exit less than halfway through the term raises questions about the company's internal processes and transparency.

Company's Response

MIRC Electronics has stated that its Audit Committee and Board of Directors will take note of the auditor's resignation in upcoming meetings. The company plans to recommend the appointment of new statutory auditors, which will require shareholder approval.

Regulatory Compliance

In compliance with regulatory requirements, MIRC Electronics has made the necessary disclosures to the stock exchanges. The company filed the information under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and adhered to the SEBI Master Circular dated November 11, 2024.

Impact and Next Steps

The resignation of a statutory auditor mid-term may raise concerns among investors and stakeholders about the company's financial reporting and internal controls. MIRC Electronics will need to address these concerns and ensure a smooth transition to new auditors to maintain market confidence.

Investors and market observers will likely watch closely for the appointment of new auditors and any potential impact on the company's financial reporting timelines or quality of disclosures in the coming months.

MIRC Electronics Limited , known for its Onida brand, has reported a loss before tax of Rs 1,427.00 lakhs for the half year ended September 30, 2025. Despite the financial setback, the company has been actively engaged in various fund-raising activities to strengthen its financial position.

Rights Issue Completion

The company successfully completed a rights issue, raising Rs 4,948.00 lakhs by issuing 4.95 crore equity shares at Rs 10.00 per share. The funds are earmarked for working capital and general corporate purposes, demonstrating the company's focus on operational liquidity and strategic flexibility.

Debt Financing

In addition to the equity raise, MIRC Electronics issued 6,000 non-convertible debentures worth Rs 6,000.00 lakhs to Neo Income Plus Fund. This debt instrument is specifically allocated for working capital, further bolstering the company's operational resources.

Preferential Allotment

The Board of Directors approved an allotment of 8.89 crore equity shares on a preferential basis at Rs 16.81 per share, aggregating to Rs 14,952.00 lakhs. This move indicates strong investor confidence in the company's future prospects.

Asset Monetization

MIRC Electronics recognized an exceptional profit of Rs 2,056.00 lakhs from the sale of property in Mumbai, showcasing its ability to unlock value from its real estate assets.

Employee Stock Option Scheme

An Extra-Ordinary General Meeting is scheduled for January 16, 2026, to seek shareholder approval for a revised Employee Stock Option Scheme 2023. The scheme covers 21.75 lakh stock options, potentially aligning employee interests with the company's long-term performance.

Executive Compensation

The meeting will also address the revision in remuneration for Mr. Shirish Suvagia, Whole time Director & CFO, subject to shareholder approval.

Fund Utilization

The company has provided a detailed breakdown of the funds raised through the rights issue:

The Audit Committee has confirmed that there is no deviation or variation in the use of proceeds from the Rights Issue.

These strategic financial moves come at a crucial time for MIRC Electronics as it navigates through challenging market conditions. The company's multi-pronged approach to fundraising, including equity, debt, and asset monetization, reflects its commitment to strengthening its financial foundation and pursuing growth opportunities in the competitive electronics market.