Ushanti Colour Chem's auditor resigns as its audit firm dissolves

Ushanti Colour Chem Limited said in a filing with the National Stock Exchange on 5 November 2026 that its statutory auditor, DJNV & Co., Chartered Accountants, had resigned with immediate effect. The company said the reason is the dissolution of the audit firm, and it appointed Bansi S. Mehta & Co., Chartered Accountants, in its place the same day.

What Happened

The company said its board met on 5 November 2026 and approved its unaudited standalone and consolidated results for the half year ended 30 September 2026, along with the limited review report from DJNV & Co. The same filing disclosed the auditor's resignation.

The board noted and accepted the resignation of DJNV & Co. as statutory auditors, effective from 5 November 2026. The filing gives the reason for the change as "Due to dissolution of Statutory Auditors Firm."

The resignation letter, dated 5 November 2026 and attached to the filing, says the firm is "planning to, dissolve our firm" and will cease its professional activities. The letter says there are no other material reasons for the resignation. It also says the firm has no dispute and no concern relating to suppression of information by the company's management.

The company said the board, on the audit committee's recommendation, appointed Bansi S. Mehta & Co. as statutory auditors from 5 November 2026 to fill the vacancy caused by the resignation. The appointment covers the audit for the financial year ending 31 March 2027 and is subject to shareholders' approval.

The filing also includes a certificate from DJNV & Co. on the use of money raised through a preferential issue of equity shares. It says the company raised Rs 15.37 crore, that the full amount was used for the purposes in its offer document, and that there was no deviation.

What It Means

An auditor's resignation is a disclosure that listed companies must make to the exchange, together with the auditor's own reasons. Here, the only reason given by the company and by the auditor is the closure of the audit firm. The filing does not say that the auditor found any problem with the company's accounts.

Shareholders will be asked to approve the new auditor. Investors who have a complaint about a listed company can lodge it at https://scores.sebi.gov.in.

Source: Company filing on NSE