Statutory auditor Manubhai & Shah LLP resigns; board adopts Q2 results with modified review opinion
Sadbhav Engineering's statutory auditor, Manubhai & Shah LLP, has resigned with effect from close of business hours on November 4, 2026.
By ScoutQuest · · 2 min read
- Resigning Auditor
- M/s. Manubhai & Shah LLP, Chartered Accountants
- Resignation Effective Date
- with effect from close of business hours on November 4, 2026
- Review Opinion
- Limited Review Report with modified opinion on results for the quarter and half year ended 30 September 2026
What happened
The board of Sadbhav Engineering met on Wednesday, 04/11/2026 from 06:00 p.m. to 08:00 p.m. Among the business considered, the board approved the resignation of the company's statutory auditors, M/s. Manubhai & Shah LLP, Chartered Accountants, with effect from 04 November 2026. The auditor's resignation letter is dated November 4, 2026 and is part of the same disclosure.
What the auditor said
- The resignation takes effect from close of the business hours on November 4, 2026.
- Reason given: a significant reduction in the company's operational activities, coupled with the matters stated in the qualified opinion/conclusion on the company's financial statements/results.
- The firm stated that its client acceptance and continuance policy does not permit it to continue as statutory auditor of the company.
- The firm confirmed there is no other material reason for the resignation.
Tenure as printed in the update
- Initial appointment commenced at the annual general meeting held on September 30, 2019, for five consecutive financial years from 2020-2021 to 2024-2025.
- The term was scheduled to expire at the conclusion of the company's annual general meeting to be held for the financial year 2029-2030.
- The resignation letter separately refers to the firm's appointment as statutory auditor at the annual general meeting held on September 30, 2025.
- The resignation is with effect from close of business hours on November 4, 2026.
Also approved at the same board meeting
- Standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026.
- Standalone and consolidated Limited Review Report with modified opinion on those unaudited results.
- The auditor's Annexure records that it issued its Limited Review report dated November 4, 2026 on the standalone and consolidated financial results for the quarter and period ended September 30, 2026.
The terms, in plain language
A modified or qualified opinion means the auditor has flagged one or more matters in the accounts it is not fully satisfied with, while still issuing a report. It is different from an adverse opinion or a disclaimer of opinion. A Limited Review Report is the lighter review that auditors issue on unaudited quarterly and half-yearly results, as opposed to a full statutory audit.
Why investors watch this
A statutory auditor stepping down before the scheduled end of its term is a governance event that investors typically track closely. Here the reason is stated by the auditor itself and is tied to two things: the scale of the company's operations and the matters behind the qualified opinion on its financial statements. The disclosure also follows the standard SEBI-prescribed format, listing the auditor's tenure, the effective date of cessation and the auditor's own explanation, which lets a reader weigh the stated reason against the company's own description of events.
Also from Sadbhav Engineering
Q2 results, statutory auditor resignation and qualified review conclusion
4 Nov 2026
Board meeting on 4 November 2026 to consider and approve unaudited standalone and consolidated results
28 Oct 2026
More numbers
- Auditor's initial appointment termfive consecutive financial years
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