Vaxfab Enterprises Limited appoints forensic auditor for FY2023-FY2025

Vaxfab Enterprises Limited appointed ASGM & Co. as forensic auditor on November 3, 2026, to examine records for FY2023-FY2025 under a ₹3,00,000 engagement. The Board-approved review follows a management transition in April 2025 and GST authority queries concerning historical transactions, including input tax credit matters.

Why did Vaxfab Enterprises order the forensic audit?

Vaxfab Enterprises ordered the forensic audit because historical financial and supporting records were reportedly not comprehensively handed over after control and management changed on April 1, 2025. The company said certain primary accounting and statutory documents relating to the earlier periods were unavailable at the time of the transition.

The decision was also linked to notices and queries received from GST authorities concerning historical transactions. These queries include matters relating to input tax credit. The company has not disclosed the value of the transactions under review, the amount of any disputed tax credit, or any conclusion on whether the records contain irregularities.

The Board approved the appointment at its meeting held on Tuesday, November 3, 2026. The stated purpose is to independently examine past financial information rather than to replace the company's regular statutory, tax or internal audit processes.

What will ASGM & Co. examine in the review?

ASGM & Co. will examine the integrity and reliability of Vaxfab Enterprises' accounting records for the three financial years ended March 31, 2023, March 31, 2024 and March 31, 2025. The engagement covers verification of transactions, reconciliation of financial statements, and identification of unusual or unsupported transactions.

The appointed firm is M/s. ASGM & Co., Chartered Accountants, with firm registration number 137191W. The firm is represented by CA Aashish Shah. Its assignment has been described as a forensic accounting and investigation engagement.

A forensic audit differs from a routine financial audit in its focus on detailed examination of records and transactions for specific issues or evidence. In this case, Vaxfab Enterprises has defined the review around historical accounting records, missing supporting documentation and transactions that may need verification or reconciliation.

What are the engagement terms and reporting process?

Vaxfab Enterprises has approved professional fees of ₹3,00,000, excluding applicable taxes and out-of-pocket expenses, for the forensic engagement. An initial retainer of ₹1,50,000 is payable before the assignment begins.

The company has specified that the work is not a statutory audit, tax audit or internal audit. This distinction means the engagement has a defined investigative scope, while the company's other audit and compliance functions continue to remain separate processes.

ASGM & Co. will submit its findings to the Audit Committee and the Board. Vaxfab Enterprises said it will review the findings and take appropriate corrective actions after receiving the report. No timeline for completion of the forensic audit has been disclosed.

The company has said that further disclosures, including the final forensic audit report and management comments, will be made in accordance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

How does the appointment affect Vaxfab Enterprises investors?

The appointment gives Vaxfab Enterprises' Audit Committee and Board an independent process to assess the reliability of historical financial records for the specified three-year period. For investors, the material developments to track are the final findings, any management response, and disclosures on corrective actions.

The supplied disclosure does not state that any financial statements will be restated, that a financial loss has been identified, or that any liability has been quantified. It also does not provide a share-price movement or a projected financial impact from the review. The appointment itself should therefore be assessed as an investigation into historical records, not as a confirmed finding of wrongdoing.

The GST-related context is relevant because input tax credit depends on documentation and transaction-level compliance. The forensic work may help the company organise and verify underlying records needed to address historical questions, though the company has not disclosed the outcome of any GST proceedings or queries.

What background is relevant to this forensic review?

The forensic review concerns a period that ended before the April 2025 management transition. The years under examination span FY2023 through FY2025, while the stated reason for initiating the review is the incomplete transfer of certain historical financial and statutory records to the new management.

Vaxfab Enterprises also made finance and audit-related changes after the transition period. In November 2025, the company appointed Chandabhoy & Jassoobhoy as statutory auditor following the resignation of SSRV & Associates, subject to shareholder approval. In January 2026, it appointed Nikhil Kumar Gupta as Chief Financial Officer after the former CFO's resignation.

These appointments are separate from the current forensic mandate. The November 2026 decision assigns ASGM & Co. a specific investigation into earlier transactions and records, with the findings to be reviewed by the Audit Committee and Board.

Conclusion

Vaxfab Enterprises has initiated an independent forensic examination of FY2023-FY2025 records after a management transition left gaps in the handover of some historical documents and GST authorities raised queries on past transactions. The approved ₹3,00,000 engagement covers record reliability, transaction verification, financial-statement reconciliation and potential unusual or unsupported entries.

The next disclosed step is ASGM & Co.'s submission of findings to the Audit Committee and Board. Investors should watch for the final forensic report, management comments, any corrective action, and further disclosures made under SEBI LODR Regulations, 2015.