Gensol Engineering Limited, a publicly listed engineering and solar solutions company, has announced the resignation of its Chief Financial Officer (CFO), Mr. Jabirmahendi Mohammedraza Aga, effective May 16, 2025. The resignation was formally disclosed to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on May 17, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, alongside the detailed annexure mandated by SEBI's July 13, 2023, circular.

The resignation of Mr. Aga comes at a time of heightened scrutiny and internal instability at Gensol. In his resignation letter dated May 16, 2025, submitted via email to the Board of Directors and the Company Secretary, Mr. Aga has highlighted serious operational and governance issues within the company. These include multiple ongoing investigations by various regulatory bodies, disarray in critical internal data management, and the recent exit of other top executives.

Detailed Reasons Cited for Resignation

In his resignation letter, Mr. Aga notes the following as core reasons for stepping down:

• Ongoing investigations by multiple regulatory authorities into the affairs of the company.

• Complete disorganization of critical operational and financial data across departments, severely limiting response capability to regulatory inquiries.

• A lack of systemic support, with the exit of the top management leaving key functions unsupported.

• The detrimental impact on his physical and mental well-being, leading to loss of professional focus and stress.

Given these conditions, he has expressed that resigning is in the best interest of the Company and requested that the Board accept his resignation with immediate effect.

The resignation email was sent to key company personnel, including Director Ali Imran Naqvi, Company Secretary, and other senior staff involved in operations and finance.

SEBI Disclosure and Regulatory Compliance

The company has submitted a formal disclosure in line with Regulation 30 and Schedule III of SEBI (LODR) Regulations, 2015, as amended by SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The disclosure includes:

• Name: Mr. Jabirmahendi Mohammedraza Aga

• Position: Chief Financial Officer (Key Managerial Personnel)

• Reason: As per the resignation letter, citing internal disorganization and regulatory pressure

• Date of Cessation: May 16, 2025

• Brief Profile: Not Applicable (since it is a resignation)

• Relationship with Directors: None

The declaration has been duly signed by Director Ali Imran Naqvi (DIN: 07088892), affirming that the resignation has been received and processed as per applicable regulations.

Background and Context

Gensol Engineering Limited, engaged in renewable energy engineering, procurement, and construction (EPC) services, has faced a tumultuous period in recent months. The company has reportedly been under the lens of financial regulators, and there have been internal challenges in data management and executive continuity.

While the company has not publicly elaborated on the nature of the regulatory investigations, insiders suggest that discrepancies in project billing, vendor payments, and compliance gaps could be among the triggers for scrutiny. The departure of key leadership, including the CFO, further underscores the gravity of internal issues.

Investor Impact and Market Outlook

The resignation of a Chief Financial Officer, especially under stressful and non-routine circumstances, often acts as a red flag to both institutional and retail investors. In the case of Gensol, this development:

• Raises concerns about the company’s financial governance, internal controls, and data reliability.

• Signals a possible escalation in regulatory intervention, especially if further senior exits or adverse findings follow.

• Could trigger volatility in the stock price in the immediate term, especially if the market perceives a lack of direction in crisis handling.

No Announcement on Successor Yet

As of the latest update, no announcement has been made by Gensol Engineering Limited regarding a replacement CFO or any interim arrangement. The company has not clarified whether it intends to appoint an internal candidate or seek external expertise to stabilize its financial leadership.

Corporate Governance Concerns Mount

This resignation brings into focus larger concerns about corporate governance at Gensol Engineering. The chain of resignations and the cited systemic disorganization point to possible breakdowns in compliance, accountability, and reporting mechanisms.

Such gaps, especially in a listed company operating in a capital-intensive and regulation-heavy sector like solar EPC, can have long-term reputational and operational repercussions.

Investors, analysts, and regulatory bodies will be closely watching for:

• Any follow-up disclosures on investigations or audits.

• Appointment of new senior leadership.

• Clarification on internal controls and governance measures being put in place.

• Whether this resignation precipitates further exits or shareholder actions.

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