Whalesbook
EFC (I) Ltd has announced a change in its statutory auditors. Current auditor Nikhil Warankar & Co. resigned, effective April 24, 2026.
The primary reason for the change is that Nikhil Warankar & Co. is not a peer-reviewed firm, which fails to meet the Institute of Chartered Accountants of India's (ICAI) requirements for the upcoming financial year. Consequently, EFC (I) Ltd has appointed SKAND and Co., a peer-reviewed firm, as its new statutory auditor. This appointment is also effective from April 24, 2026.
Why the Change Matters
Meeting auditor regulations is key to corporate governance. This move proactively addresses the ICAI's mandate, protecting EFC (I) Ltd from potential regulatory scrutiny or audit problems. It shows the company's commitment to professional standards, vital for investor confidence and accurate financial reporting.
Background on the Rule
Nikhil Warankar & Co. was first appointed as EFC (I) Ltd's statutory auditor on September 30, 2022. The ICAI announced its phased peer review mandate on January 22, 2025. This mandate has increasingly required audit firms to get peer review certificates, with its scope expanding for different entities over time.
What Happens Next
SKAND and Co. will now serve as EFC (I) Ltd's statutory auditor for FY 2025-26 and possibly longer. This ensures the company's financial statements will be audited by a firm meeting ICAI's peer review standards. The aim is a smooth audit process for the coming fiscal year.
Potential Risks
The main risk is complying with the ICAI's peer review mandate. The previous auditor's resignation suggests a potential gap if this change hadn't occurred. Investors will watch for a smooth and effective audit by SKAND and Co.
Industry Practice
Many listed Indian companies are focusing on audit quality and compliance with mandates like ICAI's peer review. While auditor changes are company-specific, large real estate firms like Embassy Office Parks REIT, DLF, and Prestige Estates also face strict oversight and typically use peer-reviewed audit firms to ensure compliance and governance.
What Investors Will Watch
- The smooth handover of audit duties from Nikhil Warankar & Co. to SKAND and Co.
- SKAND and Co.'s initial audit report on EFC (I) Ltd's financial statements.
- Any further announcements or clarifications from ICAI on auditor mandates.
- Confirmation of SKAND and Co.'s full appointment scope and term.