Mangalam Industrial's auditor resigned in May, then signed off June results
Mahesh Udhwani & Associates quit over non-cooperation but still cleared FY26 numbers. The company disclosed the resignation 35 days later, blaming oversight.
What's new
- Auditor Mahesh Udhwani & Associates resigned effective May 14, citing inability to obtain records.
- The same auditor signed off FY2026 annual results on May 29, weeks after its resignation.
- Company disclosed the resignation on June 18, attributing the delay to administrative oversight.
Why this matters
An auditor that resigns over non‑cooperation but then clears the books sends contradictory signals. For a ₹95 cr NBFC with negative PAT and massive trailing revenue growth from a low base, this raises governance doubts. The delayed disclosure doesn't help.
What we're watching
- Appointment of the new auditor to fill the casual vacancy.
- Whether the FY2026 results face any regulatory review or restatement.
- Any follow‑up communications from the company explaining the auditor's concerns.
The full read
Mangalam Industrial Finance's statutory auditor, Mahesh Udhwani & Associates, resigned on May 14, 2026 because it couldn't get the information it needed from the company. Two weeks later, on May 29, the same firm signed off on the FY2026 annual results. Then, on June 18, 35 days after the resignation, the company told the stock exchanges, blaming administrative oversight. For a ₹95 cr NBFC that posted 2002.6% revenue growth but a -1794.2% PAT swing, an auditor quitting over non‑cooperation is the kind of signal that matters more than the numbers. The contradiction of signing after resigning only deepens the fog. A new auditor will be appointed, but the damage to credibility is already done.
Questions answered
- Why did Mahesh Udhwani & Associates resign as auditor?
- The firm cited an inability to obtain necessary information and records from Mangalam Industrial Finance in a timely manner, despite repeated requests.
- How could the auditor sign off FY2026 results after resigning?
- The resignation was effective May 14, but the auditor still completed its statutory audit and signed the annual results on May 29. The company has not clarified whether the resignation was withdrawn or the signing was a procedural oversight.
- Why was the resignation disclosed only on June 18?
- The company attributed the delay to administrative oversight. The resignation letter was received on May 14 but not filed with exchanges for over a month.
- What does this mean for Mangalam Industrial's financial reporting?
- An auditor walkout over non‑cooperation is a red flag for internal controls and governance. Investors should watch for any future qualifications or restatements of the FY2026 results.
- Is the company financially stressed?
- Mangalam Industrial has a market cap of ₹95 cr, zero debt, and trailing ROE of 4.2%. Revenue surged 2002.6% (from a low base) while PAT turned deeply negative (-1794.2%), indicating possible liquidity pressure or one‑off losses.