Rapid Investments Limited's Statutory Auditors Resign Over Fee Dispute, Board Meeting Scheduled

Rapid Investments Limited , a Mumbai-based company, has announced the resignation of its statutory auditors, Valawat & Associates, Chartered Accountants, effective September 29, 2025. The resignation comes amidst unresolved fee revision requests, highlighting the growing challenges in the auditing landscape.

Reasons for Resignation

According to the company's filing with the Bombay Stock Exchange (BSE), Valawat & Associates cited several factors that led to their decision:

• Substantial increase in business operations
• Growing complexity of compliance and disclosure requirements
• Considerable time and resources involved in the audit process

The auditing firm had been seeking a revision of professional fees for over a year through various channels, including calls, discussions, and formal meetings with the Board of Directors. However, the management's reluctance to accept the proposed fee revision made it increasingly difficult for the auditors to continue under the existing arrangement.

Implications and Next Steps

The resignation of Valawat & Associates creates a casual vacancy in the position of statutory auditors for Rapid Investments Limited. In response to this development, the company has scheduled a Board of Directors meeting for October 3, 2025, at 3:00 p.m. The primary agenda for this meeting includes:

1. Appointment of new Statutory Auditors to fill the casual vacancy
2. Any other matters with the permission of the Chair

Company's Response

Nina Ranka, the Managing Director of Rapid Investments Limited, has formally acknowledged the auditors' resignation in compliance with Regulation 30 and other relevant regulations of SEBI (LODR) Regulations, 2015. The company has submitted the required documentation, including the resignation letter and detailed reasons for the auditors' departure, to the BSE.

Looking Ahead

As Rapid Investments Limited navigates this transition, the upcoming Board meeting will be crucial in determining the company's next steps. The appointment of new statutory auditors will be essential to ensure continued compliance with regulatory requirements and maintain transparency in financial reporting.

This incident underscores the evolving dynamics between companies and their auditors, particularly in light of increasing business complexities and regulatory demands. It also highlights the importance of aligning expectations regarding professional fees and the scope of auditing services in today's challenging business environment.