Fusion Klassroom replaces auditor after 10-year association

Fusion Klassroom Edutech Limited replaced its statutory auditor after the outgoing engagement partner had signed its audit reports continuously for 10 years, from FY 2016-17 to FY 2025-26. The Board accepted A V H P & Company LLP’s resignation effective 04 November 2026 and appointed Rao & Shyam from 05 November 2026, subject to shareholder approval.

Why did Fusion Klassroom change its statutory auditor?

Fusion Klassroom said A V H P & Company LLP resigned as a prudent measure to safeguard auditor independence after its engagement partner, Hitesh Purohit, had signed the company’s audit reports for 10 consecutive years. The stated period ran from FY 2016-17 through FY 2025-26, although the partner signed through three audit practices: M/s Keni & Purohit, M/s H M Purohit & Associates, and A V H P & Company LLP.

The resignation followed Fusion Klassroom’s listing on the BSE SME Platform on 07 August 2026. The outgoing auditor cited the spirit of Section 139(2) of the Companies Act, 2013, Rule 6 of the Companies (Audit and Auditors) Rules, 2014, and the Institute of Chartered Accountants of India Code of Ethics on long association. A V H P & Company LLP stated that there was no other reason for its departure.

Were any audit concerns raised at Fusion Klassroom?

No concerns were raised with Fusion Klassroom’s management or Audit Committee, according to the resignation disclosure dated 04 November 2026. A V H P & Company LLP marked concerns raised as not applicable and stated that it had obtained all information and explanations it sought during its engagement.

The auditor also reported no other facts relevant to the resignation and confirmed that no additional material reason existed beyond the long association and independence consideration. Fusion Klassroom’s Audit Committee and Board recorded their appreciation for A V H P & Company LLP’s contribution to the company’s audit processes and auditing standards at the Board meeting on 05 November 2026.

When did Fusion Klassroom’s auditor transition take effect?

Fusion Klassroom’s former auditor resigned effective 04 November 2026, and the Board approved Rao & Shyam as replacement statutory auditor effective 05 November 2026. The appointment fills the casual vacancy created by the resignation, but remains subject to approval by shareholders at the ensuing General Meeting.

The transition ended a tenure that began when A V H P & Company LLP was appointed on 28 December 2020 to fill a casual vacancy. It was appointed at the annual general meeting, or AGM, on 31 December 2020 for five years and reappointed at the AGM on 29 September 2025 for another five years. That second term had been due to end at the conclusion of the AGM to be held in 2030, but was cut short by the November 2026 resignation.

What audit work did the outgoing auditor complete?

A V H P & Company LLP issued its limited review report on 29 October 2026 for Fusion Klassroom’s unaudited financial results for the half-year ended 30 September 2026. The report was issued before the auditor resigned on 04 November 2026, meeting the sequence described in the resignation filing.

The firm’s last audit report was dated 15 July 2026 and covered Fusion Klassroom’s financial statements for FY 2025-26. This means the outgoing auditor completed both the FY 2025-26 annual audit and the latest disclosed half-year limited review before its resignation, rather than leaving those reports unfinished.

Who has Fusion Klassroom appointed as replacement auditor?

Fusion Klassroom has appointed Rao & Shyam, Chartered Accountants, Firm Registration No. 006186S, to fill the casual vacancy from 05 November 2026, subject to shareholder approval. The Board made the decision on the Audit Committee’s recommendation under Section 139 and other applicable provisions of the Companies Act, 2013.

Rao & Shyam is a partnership firm of practising chartered accountants established in 1993, according to Fusion Klassroom’s appointment disclosure. The firm has a presence in Mumbai, Visakhapatnam and Hyderabad, and provides statutory audit, internal audit, accounting, taxation, business advisory, project management, assurance and certification services. It also declared on 05 November 2026 that it met the conditions for appointment and had no pending professional-conduct proceedings against the firm or its partners.

Conclusion

Fusion Klassroom’s auditor change was attributed to the outgoing engagement partner’s 10-year continuous association with the company, rather than an identified reporting dispute or lack of access to records. The move came less than three months after the 07 August 2026 BSE SME listing and replaced A V H P & Company LLP with Rao & Shyam after the former completed the 30 September 2026 half-year review.

The next disclosed step is shareholder approval of Rao & Shyam’s appointment at Fusion Klassroom’s ensuing General Meeting. The filing identifies no unresolved concern, qualification, information gap or further reason behind the prior auditor’s resignation, while the replacement auditor’s first reporting assignment will be the next disclosed audit-related development.