Popular Vehicles says auditor of material subsidiary Prabal Motors resigned

Popular Vehicles and Services Limited said in a filing with the National Stock Exchange on 12 November 2026 that B S R and Co, the statutory auditor of its material subsidiary Prabal Motors Private Limited, has resigned. The firm's resignation letter is dated 11 November 2026. The company's filing says the auditor raised no concern with the management.

What Happened

The company made the disclosure under Regulation 30 of the SEBI listing regulations, which require a listed company to inform the stock exchanges of events such as the resignation of the statutory auditor of a material subsidiary. A material subsidiary is a subsidiary large enough, by the rules' tests, to matter to the listed parent's accounts.

According to the filing, B S R and Co had been appointed statutory auditor of Prabal Motors under a shareholders' resolution dated 30 September 2023. In its letter, the firm said it completed its statutory audit up to 31 March 2026 and issued its audit report on 21 May 2026. It also completed the limited review for the quarter ended 30 September 2026. The annexure to the letter says that limited review report was issued on 3 November 2026.

The filing quotes the reason the auditor gave: "The management of PMPL intends to align auditors of the Company with the auditors of Popular Vehicles and Services Limited, the ultimate holding company, due to mandatory rotation of our firm as auditors of the ultimate holding company under the Companies Act, 2013. Accordingly, we would not be in a position to continue as statutory auditors of the Company after completion of Limited Review for the quarter ended 30 September 2026." The auditor added that it had discussed the matter with the management.

The firm asked the company to accept its resignation with immediate effect. In the annexure that the SEBI circular requires, the firm answered "Not applicable" to the questions on concerns raised with the audit committee or board, on information it could not obtain, and on any other relevant facts. It confirmed that there is no other material reason for its resignation. It said it will forward a copy of its ADT-3 filing to the Registrar of Companies in due course.

Popular Vehicles said the resigning auditors have not raised any concern with respect to the management of the company. It therefore said no deliberation by its audit committee is required, and that disclosure of the audit committee's comments does not apply. The NSE listing describes the resignation as taking effect from 11 November 2026.

What It Means

The filing records an auditor leaving, and the reason it gives is rotation of the audit firm at the parent company, not a disagreement or a limit on the information it received. The filing does not report any qualification or concern in the accounts of Prabal Motors.

For shareholders of Popular Vehicles, the filing shows that the subsidiary will need a new statutory auditor. The filing does not name a replacement or say when one will be appointed. Companies are required to report such an appointment to the exchanges when it is made.

Readers who want to check the disclosure can read the company's filing on the National Stock Exchange website. Complaints against listed companies can be made at https://scores.sebi.gov.in.

Oquilia Data: Popular Vehicles and Services Ltd. (NSE: PVSL)

Closes adjusted for splits and bonuses; returns exclude dividends. Facts from NSE's files, not investment advice.

Source: Company filing on NSE