SEBI Orders Agri-Tech Forensic Audit for FY21-26

SEBI initiates forensic audit of Agri-Tech

The Securities and Exchange Board of India (SEBI) has ordered a forensic audit of Agri-Tech (India) Limited, escalating regulatory scrutiny around the company’s financial records. The review is mandated for six financial years, covering FY2021 through FY2026 (FY2020-21 to FY2025-26). SEBI has appointed CNK & Associates LLP as the forensic auditor for the assignment. The development was disclosed by Agri-Tech (India) Ltd through an exchange filing, putting the matter on investors’ radar.

The company said it will cooperate with the forensic auditor and provide the required records and assistance. At the same time, it indicated it is not in a position to comment on specifics or potential implications until the audit process is completed. The public disclosure did not detail the specific issues or matters that SEBI wants examined, beyond stating that the scope will refer to points mentioned in SEBI’s communication.

Exchange disclosure and key dates

Agri-Tech disclosed the forensic audit order under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was submitted to both BSE and NSE on August 6, 2026. The company said this followed receipt of SEBI’s communication dated August 5, 2026.

The filing names CNK & Associates LLP as the forensic auditor appointed by SEBI. It also confirms the audit will examine the company’s books of account and other records for the specified period. For investors, the combination of a multi-year scope and an external forensic auditor appointment typically signals a compliance-focused review, though the company has not shared the matters under review.

Scope: FY2021 to FY2026 books and records

SEBI’s order mandates an examination spanning six financial years from FY2020-21 to FY2025-26. The company stated that the forensic auditor will examine books of account and records with reference to specific matters identified by SEBI. However, those matters were not described in the public filing.

Because the audit is ordered by the regulator, the work is tied to the regulator’s communication. Agri-Tech has positioned its response as procedural cooperation rather than commentary on underlying issues. Investors will likely watch for further exchange disclosures, especially if SEBI issues follow-up directions or if the company provides additional detail after completion of the audit.

Company response: cooperation, limited commentary

Agri-Tech said it is extending full cooperation to CNK & Associates LLP. The company committed to providing all necessary information, records, and assistance required to complete the audit.

The disclosure was signed by Rajendra Sharma, Chief Financial Officer of Agri-Tech (India) Limited. In the filing, the company also affirmed a commitment to corporate governance, transparency, and regulatory compliance. However, it stated that it cannot comment further on the potential impact or the specifics of findings while the forensic audit is ongoing.

Snapshot table: what is known from the filing

Recent financial performance: Q1FY27 update

In its recent update, Agri-Tech (India) Ltd reported a narrowing of its standalone net loss to INR 0.0285 crore (INR 2.85 lakh) for the quarter ended June 30, 2026 (Q1FY27). The improvement was accompanied by a rise in revenue to INR 0.2040 crore (INR 20.40 lakh).

These figures indicate a smaller quarterly loss alongside higher revenue, based on the company’s stated numbers. The forensic audit, however, is ordered for FY2021 to FY2026 and is not described as being limited to a single quarter or a particular transaction in the exchange disclosure.

Audit and governance context: auditor changes and EGM resolutions

The company has had notable audit-related and governance developments in recent months. Agri-Tech disclosed that its auditors issued a qualified opinion citing non-charging of interest on inter-corporate loans to related parties amounting to INR 88 crore, along with fair value asset issues that were noted as pending a Supreme Court decision. The company also disclosed that the previous auditor resigned on February 12, 2026.

Separately, the company held an Extraordinary General Meeting (EGM) on April 25, 2026, with 36 shareholders attending and 100% voting participation. All three ordinary resolutions were approved with a 94.60% majority, including regularisation of two independent directors and the appointment of new statutory auditors to fill a casual vacancy following resignation of the outgoing auditor.

On the statutory audit front, Agri-Tech appointed KP Sahasrabudhe & Co. as statutory auditor for a five-year term, subject to shareholder approval, effective June 20, 2026. The board also appointed P A Agrawal & Associates as internal auditor for FY2026-27.

Shareholding disclosure: promoter stake and encumbrance

Agri-Tech disclosed that promoters, their relatives, and persons acting in concert held 30.90% of the company’s equity shares as on March 31, 2026. The company also stated that no shares were encumbered directly or indirectly during the financial year ended March 31, 2026.

The filing also mentioned total shareholding of 18,35,487 equity shares at the end of the fiscal year. The promoters named in the disclosure include Nandkishor Laxminarayan Kagliwal and Jeevanlata Nandkishor Kagliwal.

Broader context: how SEBI-ordered forensic audits work

The broader regulatory framework referenced alongside the company update outlines that forensic audits in India can be invoked under multiple regimes, including SEBI investigations under the SEBI Act. For SEBI-ordered forensic audits, the appointment order itself serves as the engagement reference, listing the allegations, review period, deadline, and reporting protocol, as described in the contextual note.

The same context also notes that there is no single statutory registration for forensic auditors, and that forensic audit credentials in practice may include ICAI-related forensic qualifications, Certified Fraud Examiner credentials, or empanelment with SEBI. SEBI has also expanded its panel of forensic audit firms, adding 18 additional firms through a process initiated via a public procurement notice issued in November 2025, with a notification dated July 15.

What investors will track next

For now, the key verified facts are the appointment of CNK & Associates LLP, the audit coverage from FY2021 to FY2026, and the company’s commitment to cooperate while withholding further commentary until completion. Any further clarity on the “specific matters” referenced by SEBI would likely come through additional regulatory communication or subsequent exchange filings.

The next milestones, based on what the company has disclosed, are tied to completion of the forensic audit and any follow-on steps SEBI may take thereafter. Until then, investors are likely to watch for updates on the audit process, governance disclosures, and any additional financial reporting clarifications.