V R Woodart Limited, a company listed on the Bombay Stock Exchange (BSE: 523888), has announced the resignation of its statutory auditor, M/s Thakur, Vaidyanath Aiyar & Co, Chartered Accountants. The resignation, effective November 12, 2025, comes before the completion of the auditor's original five-year term.

Key Details of the Resignation

• Reason for Resignation: Pre-occupation with other assignments
• Original Appointment: September 19, 2022
• Scheduled Term End: March 31, 2027
• Actual Resignation Date: November 12, 2025

Recent Audit Activities

Despite the resignation, M/s Thakur, Vaidyanath Aiyar & Co completed and issued a Limited Review Report for V R Woodart Limited's unaudited financial results for the quarter and half-year ended September 30, 2025. This report was dated November 11, 2025, just one day before the auditor's resignation.

Corporate Governance Implications

The company has affirmed that the auditor did not raise any concerns with the Audit Committee or Board of Directors prior to their resignation. In compliance with regulatory requirements, V R Woodart Limited has made the necessary disclosures to the BSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Management Response

Minal Patil, Additional Director (Whole-time) and Chairperson of V R Woodart Limited, signed the official intimation to the BSE regarding the auditor's resignation. The company is expected to appoint a new statutory auditor to fill the vacancy left by M/s Thakur, Vaidyanath Aiyar & Co.

Investor Considerations

The resignation of an auditor before the completion of their term may raise questions among investors. However, it's important to note that:

1. The auditor cited pre-occupation as the sole reason for resignation.
2. There were no reported disagreements or unresolved issues mentioned in the resignation letter.
3. The most recent limited review was completed before the resignation.

Investors and stakeholders of V R Woodart Limited may want to monitor further announcements regarding the appointment of a new statutory auditor and any potential impact on the company's financial reporting timeline.

V R Woodart Limited, a company facing financial challenges, has made significant moves to strengthen its capital base while reporting an increased loss for the half-year ended September 30, 2025.

Share Allotment Details

The Board of Directors of VR Woodart Limited has approved the allotment of 1,39,90,000 equity shares at Rs 22.00 per share and 44,80,000 convertible warrants at Rs 22.00 per warrant on a preferential basis. This decision comes in accordance with the special resolution passed by the company's shareholders at an Extraordinary General Meeting held on April 04, 2025.

The allotment is structured as follows:

It's noteworthy that Minal Gaurav Patil and Mounica Maddukuri, currently in the Non-Promoter Category, are set to be classified as Promoters following the completion of formalities under SEBI regulations.

Financial Performance

The company's financial results for the half-year ended September 30, 2025, paint a challenging picture:

• Net Loss: The company reported a net loss of Rs 64.59 lakh, significantly higher than the Rs 3.85 lakh loss in the same period of the previous year.
• Revenue: VR Woodart Limited continues to operate with no revenue from operations.
• Other Equity: The company's other equity stands at a negative Rs 1,766.25 lakh, indicating a complete erosion of net worth.

Balance Sheet Highlights

As of September 30, 2025:

• Total Assets: Rs 2.50 lakh
• Total Liabilities: Rs 279.57 lakh
• Equity Share Capital: Rs 1,489.18 lakh
• Other Equity: (Rs 1,766.25 lakh)

Auditor's Observations

The company's auditors, Thakur, Vaidyanath Aiyar & Co., have emphasized that while the company's net worth has been completely eroded and operations are limited, the accounts are prepared on a going concern basis.

Management's Perspective

The management states that the company has availed unsecured loans for continued operations and to explore various opportunities. The proceeds from the fresh issue are intended to be utilized for paying outstanding liabilities, meeting working capital requirements, and running business operations.

Looking Ahead

While VR Woodart Limited faces significant financial challenges, the recent share allotment may provide the company with much-needed capital. However, the substantial increase in net loss and the absence of operational revenue underscore the uphill battle the company faces in turning its fortunes around.

Investors and stakeholders will be keenly watching how the company utilizes the fresh capital and whether it can develop a sustainable business model in the coming quarters.