GSGallard Steel544616Auditor resignation (mid

Statutory auditor of wholly owned subsidiary resigns with immediate effect, cites personal reasons

Gallard Steel Ltd informed the exchanges that M/s S.N. Gadiya & Co., Chartered Accountants (FRN: 002052C), has resigned as statutory auditor of its wholly owned subsidiary, Sleeploop India Private Limited.

By ScoutQuest · Fri 23 Oct 2026, 9:27 AM IST · 2 min read

Auditor

M/s S.N. Gadiya & Co., Chartered Accountants (FRN: 002052C)

Resignation letter date

22nd October, 2026

Latest audit report period

31st March, 2026

What was announced

• M/s S.N. Gadiya & Co., Chartered Accountants (FRN: 002052C) has resigned as the statutory auditor of Sleeploop India Private Limited, a wholly owned subsidiary of Gallard Steel Ltd.
• The resignation is with immediate effect, through the auditor's letter dated 22nd October, 2026.
• The entity whose accounts were being audited is the subsidiary; the listed company is Gallard Steel Ltd.

The reason given in the resignation letter

• The letter states that due to personal reason, the firm is not in a position to devote time to the affairs of the company.
• The company's covering letter repeats this and adds that neither were any concerns raised by the statutory auditor with respect to the management of the Company, nor is there a material reason for the resignation.
• The auditor's own declaration says there is no other material reason other than those provided.

Tenure and what was covered

• The auditor was appointed in the Annual General Meeting held on 30/09/2024.
• The term was scheduled to expire at the Annual General Meeting to be held in the calendar year 2029 (F.Y. 31/03/2029).
• The latest audit report submitted by the auditor was for the period ended 31st March, 2026, so the resignation comes after that reporting period.

On audit evidence and limitations

• The auditor stated that no such instance was observed, apart from negotiation for the fees and other scope of services.
• It stated there was no instance where any request was not accepted by the company, so the related disclosures were marked not applicable.
• It answered "No" to whether an inability to obtain sufficient appropriate audit evidence was due to a management-imposed limitation or circumstances beyond management's control, whether such a lack would have a significant impact on the financial statements or results, whether alternative procedures were performed under SA 705 (Revised), and whether any such lack was prevalent in previously reported financial statements.

How a reader can weigh it

• A statutory auditor stepping down is a disclosure that typically draws attention, because the auditor is the outsider who signs off on the accounts.
• Here the stated cause is personal, the scope of the resignation is a wholly owned subsidiary rather than the listed entity, and the update records a "No" against management-imposed limitations and against concerns over management.
• The one friction the auditor did name was negotiation over fees and scope of services.
• The disclosures were placed in the format prescribed under the SEBI circular referenced in the letter.

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