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Mishtann Foods Announces Resignation of Statutory Auditor and Independent Director
Team Finance Saathi
06/Jan/2025
What's covered under the Article:
- Mishtann Foods announces the resignation of its statutory auditor, M/s. Panchal S K & Associates, due to inability to continue.
- Independent Director, Mr. Nihar Gaurang Sheth, resigns due to personal reasons and other professional commitments.
- Details of the resignations are provided, as required under SEBI regulations and circulars.
Mishtann Foods Limited has made a significant announcement regarding the resignation of two key figures in the company’s governance structure: the statutory auditor, M/s. Panchal S K & Associates, and Independent Director, Mr. Nihar Gaurang Sheth. The company has informed the stock exchanges about these developments through a formal communication issued on January 6, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The resignation of M/s. Panchal S K & Associates (FRN No. 145989W), the statutory auditors of Mishtann Foods, was submitted via a formal letter dated December 30, 2024. The auditors have expressed their inability to continue as the statutory auditors for the company. In accordance with the provisions outlined under Schedule III of the Listing Regulations, SEBI Circulars CIR/CFD/CMD/4/2015 dated September 9, 2015, and CIR/CFD/CMD/114/2019 dated October 18, 2019, Mishtann Foods has shared the details of the resignation, including the resignation letter and annexures, with the stock exchanges. It is noteworthy that, although the company received the resignation on December 30, 2024, the details were only formally provided to the stock exchanges by the auditors on January 4, 2025.
In a related note, the resignation of Mr. Nihar Gaurang Sheth (DIN: 10308024), an Independent Director, was also announced. He has resigned due to personal circumstances and other professional commitments. The resignation is effective from the close of business hours on January 5, 2025. In his resignation letter, Mr. Sheth has confirmed that there are no material reasons for his resignation, aside from those stated. The company has also provided the details as per Regulation 30 read with Schedule III - Para A(7B) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which include the confirmation from the director regarding the absence of any material reasons behind his resignation.
The resignation of Mr. Nihar Sheth has raised important questions about corporate governance and has prompted Mishtann Foods to ensure full compliance with the SEBI regulations. According to the company's submission, Mr. Sheth had no significant directorships in other listed entities and did not serve in any board committees of those entities. His resignation was a result of his increased commitments elsewhere, and no further issues or material reasons were provided beyond personal matters.
These resignations mark a key moment in the company’s governance and operations. The company has attached the resignation letters from both the statutory auditor and Mr. Sheth, along with other necessary documentation, for BSE and MSEI. The move follows the necessary regulatory requirements and ensures transparency with the company's shareholders and the market.
The company’s communication confirms that despite these resignations, Mishtann Foods will continue to operate effectively under the governance structures in place. The management is actively working on filling these key roles, and further updates will follow as per the standard disclosure requirements. The stock exchanges have been notified of these changes to ensure compliance with regulatory standards.
For Mishtann Foods, these changes represent an opportunity to reorganize its leadership and strengthen its operational efficiency moving forward. The company has expressed its commitment to enhancing its corporate governance framework and ensuring continued compliance with all relevant SEBI guidelines.
Mishtann Foods also reassured its stakeholders that no further changes in the company’s financial reporting or operations are expected due to the resignation of the statutory auditor. The company will take the necessary steps to appoint a new auditor and continue with its business operations as usual.
This resignation notice also highlights the company’s ongoing commitment to maintaining a high level of corporate transparency and accountability in all of its dealings, ensuring that all statutory requirements are met.