Transgene Biotek has reported the resignation of its statutory auditor, M/s Eswara Rao & Co., effective October 28, 2026. This is the second auditor resignation for the company this month. The auditor cited medical emergencies and time constraints for the sudden departure, noting no audit work had yet commenced. Investors should watch for the next auditor appointment and the company's progress on meeting mandatory quarterly financial reporting deadlines.
Transgene Biotek Reports Second Auditor Resignation in One Month
Transgene Biotek Ltd has confirmed the resignation of M/s Eswara Rao & Co. as its Statutory Auditor effective October 28, 2026. This follows the previous resignation of M/s Vasavi & Co., marking two auditor departures within a single month.
Reader Takeaway: Repeated auditor turnover raises concerns regarding financial reporting timelines and company oversight for retail shareholders.
What just happened
Transgene Biotek provided an additional disclosure to the BSE explaining the departure of Eswara Rao & Co. The audit firm was appointed only on October 10, 2026, to fill a vacancy left by the previous auditor. The firm stated they could not meet the November 14, 2026, deadline for the September quarter results due to a combination of medical emergencies involving partners and the time required to onboard as new auditors.
Auditor Assertions
In compliance with the Companies Act, the resigning firm explicitly stated that:
- No audit or limited review work had been initiated.
- Management fully cooperated and provided necessary information.
- No audit-related concerns or disputes were raised with the Audit Committee.
Risks to watch
The primary risk for investors is a potential delay in the release of financial results for the quarter ended September 30, 2026. Frequent changes in audit leadership can signal operational or administrative instability, which often leads to increased stock price volatility. Market participants should monitor the BSE for announcements regarding the appointment of a third auditor.
What to track next
The company must now move quickly to appoint a replacement auditor who can finalize the financial statements. Any further delays in the audit process could lead to regulatory scrutiny from the exchange regarding compliance with filing requirements.