Zodiac Jrd Mkj Limited, a company involved in the trading of goods, has announced the resignation of its statutory auditor, H.G. Sarvaiya Co., Chartered Accountants. The auditor's departure, effective November 13, 2025, comes amidst changes in the company's corporate structure and limitations in the scope of the audit engagement.

Auditor Resignation Details

H.G. Sarvaiya Co. was appointed on March 26, 2024, with a term scheduled to expire on March 31, 2029. Prior to their resignation, the firm completed the statutory audit of standalone and consolidated financials for the second quarter and half-year ended September 30, 2025, submitting their limited review report on November 12, 2025.

Reasons for Resignation

The auditor cited two primary reasons for their resignation:

1. Changes in corporate structure
2. Limitations in the scope of audit engagement

It's important to note that the company stated there were no concerns raised by the resigning auditor regarding management, and no material reason for resignation that would require audit committee deliberation.

Company's Response

Zodiac Jrd Mkj Limited has indicated that the audit committee and board will consider appointing new statutory auditors to fill the casual vacancy created by this resignation.

Financial Performance

While the auditor change is a significant development, it's worth noting the company's recent financial performance. According to the unaudited consolidated financial results for the quarter and half-year ended September 30, 2025:

The company's financial results show a positive performance for the period, with a net profit of 53.88 lakhs for Q2 FY2026 and 88.88 lakhs for H1 FY2026.

Conclusion

The resignation of H.G. Sarvaiya Co. as statutory auditors marks a significant change for Zodiac Jrd Mkj Limited. As the company moves forward, stakeholders will likely be watching closely to see how this transition affects the company's financial reporting and corporate governance practices. The appointment of new auditors and any potential changes in corporate structure will be key developments to monitor in the coming months.

Zodiac Jrd Mkj , a company engaged in trading of diamonds, jewellery, and precious/semi-precious stones, has announced its financial results for the second quarter and half-year ended September 30, 2025. The company's board of directors approved the unaudited financial statements during a meeting held on November 12, 2025.

Key Financial Highlights (Consolidated)

Financial Performance

Zodiac Jrd Mkj reported a consolidated total income of Rs. 2,290.33 lakhs for the first half of the fiscal year 2026. The company's profit before tax for the same period stood at Rs. 88.88 lakhs, which also represents the net profit as no tax expenses were reported for the period.

For the second quarter of FY2026, the company achieved a total income of Rs. 1,038.55 lakhs and a net profit of Rs. 53.88 lakhs.

Operational Highlights

The company's main business activity continues to fall within a single primary business segment, namely dealing in Trading of Goods. The consolidated results include the performance of its subsidiary, VEM Plastic Moulding Private Limited, which focuses on molds and injection molded plastic parts for the automobile component segment.

Subsidiary Performance

VEM Plastic Moulding Private Limited contributed significantly to the group's financial results. For the second quarter and half-year ended September 30, 2025, the subsidiary reported:

• Total revenue: Rs. 1,280.64 Lakhs
• Net profit after tax: Rs. 47.47 Lakhs

Balance Sheet Overview

As of September 30, 2025, Zodiac Jrd Mkj's consolidated balance sheet showed:

• Total Assets: Rs. 13,405.93 lakhs
• Total Equity: Rs. 8,534.19 lakhs
• Current Assets: Rs. 10,280.41 lakhs
• Current Liabilities: Rs. 4,564.15 lakhs

Cash Flow and Liquidity

The company's cash flow statement for the half-year ended September 30, 2025, revealed:

• Net cash used in operating activities: Rs. 761.73 lakhs
• Net cash generated from investing activities: Rs. 549.04 lakhs
• Net cash generated from financing activities: Rs. 280.80 lakhs

The company's cash and cash equivalents at the end of the period stood at Rs. 73.66 lakhs, showing an increase from Rs. 5.55 lakhs at the beginning of the year.

Capital Structure

During the period, Zodiac Jrd Mkj completed a rights issue on June 30, 2025, which resulted in an increase in the equity share capital. The consolidated statement of assets and liabilities shows an equity share capital (including the rights issue) of Rs. -582.43 lakhs, which may require further clarification from the company.

Auditor's Review

The financial results have undergone a limited review by the company's statutory auditors, H.G. Sarvaiya & Co. The auditors have not expressed any material misstatements in their review report.

Zodiac Jrd Mkj's performance in the first half of FY2026 demonstrates the company's ability to generate profits in the challenging trading environment. The contribution from its subsidiary in the automobile component segment adds diversification to the group's revenue streams.