IGC Industries Limited's statutory auditors, ADV & Associates, resigned on August 14, 2025, citing significant financial issues. Key concerns include misuse of Rights Issue proceeds, unexplained payments, potential rule violations regarding deposits, and doubts about the company's ability to continue as a going concern. The company reported zero revenue and minimal activity in recent quarters.
14Aug 25
IGC Industries Faces Financial Scrutiny as Auditors Resign Amid Concerns
IGC Industries Limited is experiencing severe financial difficulties and regulatory scrutiny. The company's statutory auditors, M/s ADV & Associates, resigned on August 14, 2025, after issuing a disclaimer of opinion on the Q1 FY2026 financial results. Key concerns include questionable use of rights issue proceeds, unexplained payments, potential rule violations, and doubts about the company's ability to continue as a going concern. The company reported zero revenue and a marginal loss for Q1 FY2026, following a net loss of ₹6.17 crore in FY2024-25. A rights issue in November 2024 increased the paid-up equity share capital to ₹3,472.00 crore. The situation is likely to attract regulatory attention from SEBI and the Ministry of Corporate Affairs.