Auditor Resigns Amidst Going Concern Warning; New Firm Appointed

summarizeSummary

GROOVE BOTANICALS INC. reported the resignation of its independent auditor, M. S. Madhava Rao, and the immediate appointment of GSKCA & Associates, with no disagreements cited.

check_boxKey Events

• Auditor Resignation

  M. S. Madhava Rao, Chartered Accountant, resigned as the independent registered public accounting firm on May 13, 2026. No reason for the resignation was provided by the auditor.

• No Disagreements Reported

  The company stated there were no disagreements with the former auditor on accounting principles or practices, financial statement disclosure, or auditing scope during the past two fiscal years and interim period.

• Going Concern Paragraph

  The former auditor's reports for fiscal years 2025 and 2024 included an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern, consistent with prior disclosures.

• New Auditor Appointed

  Concurrently with the resignation, the Board of Directors approved the engagement of GSKCA & Associates as the new independent registered public accounting firm, effective May 13, 2026.

auto_awesomeAnalysis

GROOVE BOTANICALS INC., a company already facing a going concern warning and critically low cash, announced the resignation of its independent auditor, M. S. Madhava Rao. While the auditor did not provide a reason for the resignation, the company stated there were no disagreements on accounting principles or reportable events. A new firm, GSKCA & Associates, was immediately appointed. This change is important for maintaining compliance, especially given the company's precarious financial state, where any disruption to financial reporting could exacerbate existing challenges.