Listed company TeleCanor Global Limited has initiated the statutory process for removal of its auditor, M/s K.K. Goel & Co. before completion of the auditor's term. The company's Board approved initiation of the removal process at its meeting held on 19 September 2026, according to its stock-exchange disclosure.
Company Alleges Non-Cooperation by Auditor
According to TeleCanor Global's disclosure, the decision has been taken because of what the company describes as continued non-cooperation and failure by the statutory auditor to provide necessary support and information required for completion of statutory and regulatory compliances.
The company has stated that the situation has affected completion of compliances relating to its financial results for the quarters/periods ended March 2026 and June 2026. It has also referred to Stock Exchange SOP fines of ₹5,000 per day relating to pending compliances/results.
Importantly, these are allegations made by the company. They should not presently be treated as established professional misconduct on the part of the audit firm, since no finding by ICAI, RoC/MCA or another competent authority has been cited.
Removal Requires Approval Under Companies Act
The Board's decision does not mean that the statutory auditor has already been removed.
Under Section 140(1) of the Companies Act, 2013, removal of a statutory auditor before expiry of the term requires the prescribed regulatory process. TeleCanor Global has stated that it proposes to file Form ADT-2 with the Regional Director seeking approval for the removal.
If the required approval is obtained, the company proposes to convene a general meeting and seek shareholders' approval through a Special Resolution.
The statutory auditor is also entitled to the procedural protections available under the Companies Act, including a reasonable opportunity of being heard before removal.
Company Plans Complaints Before ICAI, RoC and MCA
TeleCanor Global's Board has further authorised its directors to initiate appropriate complaints/proceedings concerning the auditor before the:
- Institute of Chartered Accountants of India (ICAI)
- Registrar of Companies (RoC)
- Regional Director / Ministry of Corporate Affairs (MCA)
The company has also reserved its right to pursue other legal remedies concerning the alleged regulatory, compliance and financial consequences.
Pending Financial Results Add Significance
The dispute assumes greater significance because the company's FY 2025-26 audited financial results and June 2026 quarter results have been pending. Earlier exchange disclosures also show that meetings for considering these results had been postponed.
The auditor dispute therefore raises important issues relating to timely financial reporting, listed-company compliance and the respective responsibilities of management, the Audit Committee, Board and statutory auditor.
Key Takeaway for CAs
This case is a useful reminder that a company cannot simply remove its statutory auditor through a Board resolution. Removal before expiry of the auditor's term is a regulated process under Section 140(1), requiring prescribed approval, an opportunity for the auditor to be heard and shareholder approval through a Special Resolution.
At the same time, complaints proposed before ICAI or RoC should not be interpreted as proof of professional misconduct. Any such finding would have to emerge through the applicable regulatory or disciplinary process. CA Sansaar