Kush Industries Secretarial Auditors Resign; Company Seeks Replacement

Kush Industries Limited has announced the immediate resignation of its secretarial auditors, M/s. Nishant Pandya & Associates. The firm cited personal reasons for its departure, effective from the start of the financial year 2025-26.

Secretarial audits are a vital part of corporate oversight in India, ensuring a company adheres to a wide range of laws and regulations beyond financial matters. Replacing auditors promptly is essential for maintaining regulatory compliance and corporate integrity.

The company must now begin the process of appointing a new firm to conduct its secretarial audits. This appointment is critical to ensure continued adherence to the Companies Act, 2013, and SEBI regulations. The board of directors will manage the selection and formal appointment.

Previously, for the financial year 2024-25, M/s. Kashyap R. Mehta & Associates had been re-appointed as the secretarial auditors on July 30, 2024. Kush Industries Ltd had also announced the appointment of both statutory and secretarial auditors at its 33rd Annual General Meeting (AGM) held on September 30, 2025, signaling a regular cycle for these appointments.

Delays in appointing new secretarial auditors could raise concerns about compliance and attract regulatory attention. While personal reasons were cited, the company will need to conduct thorough due diligence when selecting its successor. Kush Industries has previously faced challenges, including reported poor sales growth of -50.3% over five years and high debtors of 3,285 days, although these are not directly linked to the auditor resignation.

Companies in the textile sector, such as Vardhman Textiles Ltd and Trident Ltd, similarly operate under strict regulatory frameworks requiring regular secretarial audits to ensure corporate compliance.

Investors and stakeholders will likely monitor the timeline for appointing the new secretarial auditors, the credentials and independence of the chosen firm, and confirmation that Kush Industries continues to meet all statutory and regulatory obligations.