Ajwa Projects Limited Changed Auditors Twice Within Nine Months

Ajwa Projects Limited changed statutory auditors twice within 225 days after M. Mantri & Co., its auditor since March 14, 2011, resigned on September 10, 2024. N. R. Panchal & Co. then resigned on April 23, 2025, and D G M S and Co. was appointed on June 2, 2025 before issuing an October 3, 2026 examination report on Restated Financial Information.

Why did Ajwa Projects change auditors twice within nine months?

Ajwa Projects disclosed separate reasons for the two statutory-auditor resignations. M. Mantri & Co. resigned on September 10, 2024 for personal reasons, according to the prospectus. N. R. Panchal & Co., appointed 10 days later on September 20, 2024, resigned on April 23, 2025 on account of pre-occupation. The prospectus does not state that the two resignations resulted from the same issue.

The 225-day interval between the September 10, 2024 and April 23, 2025 resignation dates is the period in which the second change arose. Ajwa Projects then appointed D G M S and Co. on June 2, 2025 to fill the casual vacancy caused by the preceding auditor’s resignation. A statutory auditor is the audit firm appointed to examine a company’s financial reporting under applicable corporate requirements.

How did Ajwa Projects’ auditor continuity change?

Ajwa Projects moved from an auditor relationship lasting more than 13 years to two successive resignations between September 2024 and April 2025. M. Mantri & Co. served from March 14, 2011 until September 10, 2024. Its replacement, N. R. Panchal & Co., held the position from September 20, 2024 until April 23, 2025, or about seven months.

The timing shows two different appointment gaps. N. R. Panchal & Co. was appointed 10 days after M. Mantri & Co. resigned, while D G M S and Co. was appointed 40 days after N. R. Panchal & Co. resigned. Ajwa Projects states that, except for the changes listed in its auditor table, there was no change in statutory auditors during the three financial years immediately preceding the prospectus.

What work did D G M S and Co. perform for Ajwa Projects?

D G M S and Co. examined Ajwa Projects’ Restated Financial Information, with its examination report dated October 3, 2026. Ajwa Projects also received the firm’s written consent to include its name in the prospectus as an expert under Section 26(5) of the Companies Act, 2013 and the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements Regulations. The prospectus says that consent had not been withdrawn as of its date.

D G M S and Co. also issued a report dated October 5, 2026 on the statement of special tax benefits. Separately, Ajwa Projects says the firm certified on October 5, 2026 that the company’s related-party transactions were undertaken at arm’s length and in the ordinary course of business. The offer’s intermediary details identify D G M S and Co. as the statutory and peer review auditor and list peer review certificate number 014466 as being under renewal.

What reporting will apply after Ajwa Projects’ offer?

Ajwa Projects says a monitoring agency is not mandatory under Regulation 262(1) of the Issue of Capital and Disclosure Requirements Regulations, 2018 because the offer size is below Rs 50 crore. The company nevertheless says its Audit Committee will receive half-yearly disclosures on the uses and application of net proceeds under Regulation 32(3) of the Listing Obligations and Disclosure Requirements Regulations, 2015.

Ajwa Projects says its balance sheets will separately disclose utilised and unutilised proceeds, the purpose for which money has been used, and interim investments, if any, until the proceeds are fully utilised. It also says it will submit a statutory-auditor certificate on the use of public-offer money with quarterly financial results until full utilisation, under Regulation 262(5) of the 2025 amendment to the Issue of Capital and Disclosure Requirements Regulations.

How will Ajwa Projects disclose deviations from its stated use of proceeds?

Ajwa Projects says it will furnish the stock exchanges with half-yearly statements of material deviations, if any, from the stated use of net proceeds under Regulation 32(1)(a) of the Listing Obligations and Disclosure Requirements Regulations, 2015. That obligation applies alongside the Audit Committee’s half-yearly review, creating two stated reporting channels for the use of offer proceeds.

If Ajwa Projects cannot use the full amount estimated for an object during a financial year, it says it will use the unutilised amount in the next financial year. The persistence of those disclosures depends on proceeds remaining unutilised, while the quarterly statutory-auditor certificates are stated to continue until all public-offer money is used. The prospectus does not identify a further planned change to D G M S and Co. after its June 2, 2025 appointment.

Conclusion

Ajwa Projects’ auditor disclosure records a marked change in continuity after September 2024. M. Mantri & Co.’s service from March 2011 ended with a personal-reasons resignation, N. R. Panchal & Co. subsequently resigned because of pre-occupation, and D G M S and Co. filled the vacancy in June 2025 before examining the company’s Restated Financial Information in October 2026.

The next disclosed items to watch are the half-yearly Audit Committee and stock-exchange statements on net-proceeds use, plus quarterly statutory-auditor certificates until the proceeds are fully utilised. Ajwa Projects also states that amounts not used for an intended object in one financial year will be carried into the next financial year, making later balance-sheet disclosures relevant.