Vivid Mercantile announced the resignation of its statutory auditor, M/S AKGVG & Associates, Chartered Accountants, effective August 12, 2025. The resignation comes as a result of a significant restructuring within the auditing firm.

Reasons for Resignation

The primary reason cited for the resignation is the demerger of M/s. Shah Karia & Associates from AKGVG & Associates. Additionally, the retirement of a key relationship partner from AKGVG & Associates has contributed to the firm's decision to step down from its role as Vivid Mercantile's statutory auditor.

Tenure and Last Report

AKGVG & Associates was appointed as the statutory auditor on February 26, 2025, with their term originally scheduled to conclude at the end of the Annual General Meeting for the fiscal year 2024-25. The firm's last submitted report was a Limited Review Report for the quarter ended June 30, 2025.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Vivid Mercantile promptly informed the BSE Limited of this material event. The company has provided the necessary disclosures as required by SEBI circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023.

Management Statement

Satishkumar Ramanlal Gajjar, Managing Director of Vivid Mercantile, signed the regulatory filing, ensuring transparency in communication with shareholders and regulatory bodies.

Financial Performance

While the auditor change is a significant event, it's worth noting Vivid Mercantile's recent financial performance. For the quarter ended June 30, 2025, the company reported:

Despite a significant decrease in total income, the company has managed to increase its profitability substantially compared to the same quarter in the previous year.

Next Steps

Vivid Mercantile will now need to appoint a new statutory auditor to ensure continued compliance with regulatory requirements and maintain the integrity of its financial reporting. Shareholders and investors will likely be keen to see who the company appoints as its new auditor and how smoothly the transition process unfolds.

The company's ability to maintain strong corporate governance practices during this transition will be crucial for maintaining investor confidence and ensuring continued transparency in its financial reporting.

Vivid Mercantile Limited , a trading company based in Ahmedabad, has released its financial results for the quarter ended June 30, revealing a complex financial picture marked by significant revenue decline but substantial profit growth.

Revenue Plummets, Profit Surges

The company reported a steep 82.20% year-over-year decline in revenue from operations, which fell to ₹169.24 crore from ₹947.90 crore in the same quarter of the previous year. Despite this considerable drop in top-line performance, Vivid Mercantile managed to achieve a remarkable 200.70% increase in net profit, which rose to ₹121.35 crore from ₹40.35 crore year-over-year.

Expense Management Drives Profitability

The dramatic improvement in profitability can be attributed to the company's effective cost management strategies. Total expenses saw a substantial reduction of 96.80%, decreasing to ₹29.89 crore from ₹924.09 crore in the corresponding quarter of the previous year. This significant cost reduction played a crucial role in boosting the company's bottom line.

Key Financial Highlights

Operational Changes

The company's financial statement reveals some interesting shifts in its operational dynamics:

1. Purchase of Stock-in-Trade: Decreased by 72.10% to ₹62.47 crore from ₹223.57 crore.
2. Employee Benefit Expenses: Increased to ₹7.19 crore from ₹3.26 crore.
3. Other Expenses: Rose to ₹22.70 crore from ₹7.52 crore.

Earnings Per Share

The basic and diluted earnings per share for the quarter stood at ₹0.12, reflecting the improved profitability despite the revenue decline.

Company Overview

Vivid Mercantile Limited operates in a single business segment focused on trading activities. The company's paid-up equity share capital remains unchanged at ₹1002.56 crore.

Conclusion

Vivid Mercantile's latest quarterly results present a nuanced financial picture. While the substantial decline in revenue may raise concerns, the company's ability to dramatically increase profitability through effective cost management demonstrates resilience in challenging market conditions. Stakeholders will be keen to understand the sustainability of this cost structure and the company's strategies for reviving top-line growth in future quarters.