Earlier also, due to lack of funds, the company has shown the way out to its employees in the name of cost cutting. According to the information, not only have the employees of the company lost their jobs but many employees have not even been paid their full salary. Let us tell you that now the auditor of the company has also resigned, due to which the situation has become more serious.
“It’s all over for Reshmandi,” a source was quoted as saying in the report. “The company has been struggling to pay its liabilities, including salaries, and meet costs for the past several months,” it added. Sources close to the company have confirmed that all 500 employees have been laid off, the report said.
The company has faced several corporate governance issues, including allegations of revenue inflation and fraudulent invoices. Auditor Walker Chandiok & Co LLP, which resigned last month, highlighted these problems in its regulatory filing with the Registrar of Companies (RoC). The auditor’s report indicated that CTO and founder Saurabh Kumar Agarwal acknowledged the firm’s financial difficulties, including staff reductions and the inability to support the audit firm in completing the financial statements for FY23, the report said. According to the filing, Reshamandi owes Rs 14.16 lakh to the auditing firm. In late July, the Bengaluru-based company appointed a new auditor called Suresh Kapoor & Associates.
In addition, Reshamondi has faced frequent resignations of its chief financial officers (CFOs). In April 2023, former KPMG CFO Samdrita Chakraborty was appointed group CFO, replacing Ritesh Kumar, who served as CFO from March 2022 to January 2023. Chakraborty left the company in October of the same year, Inc42 reports.
A Reshamandi spokesperson acknowledged the company’s financial difficulties in a statement provided to the publication and said, “Reshamandi is facing certain financial difficulties and has streamlined its employees, operations and processes to focus on collecting its pending receivables from the market. We believe in being able to come out of this situation strongly and get back on track soon.” Reshamandi has raised over $50 million, including a $30 million Series A round in October 2021 and a $6.2 million debt round in November 2022. Its investors include Creation Investments, Omnivore, 9Unicorns, Venture Catalysts, Northern Arc, InnoVen Capital, and Stride Ventures.
Why can’t I access my EPF ..@reshamandi #EPFO pic.twitter.com/UeSIuYjygs
— Nabamita Ghosh (@MitaNaba) June 24, 2024
