Modern Dairies has appointed M/s. Sanjeev Sharma & Associates as its statutory auditors for the financial year ending March 31, 2027, marking a change in audit firm from APT & Co. LLP. The Board of Directors approved the appointment on August 11, 2026, following a recommendation from the Audit Committee. This transition ensures continuity in regulatory compliance and financial oversight for the dairy processing company, with the new auditors taking charge immediately after the conclusion of the forthcoming Annual General Meeting (AGM).

The appointment is subject to shareholder approval at the 34th AGM, scheduled to be held on September 26, 2026. Upon ratification, M/s. Sanjeev Sharma & Associates will serve for a term of one year, holding office until the conclusion of the 35th AGM in 2027. The outgoing statutory auditors, APT & Co. LLP, Chartered Accountants, will complete their current term upon the conclusion of this same meeting. This procedural step aligns with the company’s governance framework and ensures an orderly handover of audit responsibilities.

The decision was disclosed pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Modern Dairies submitted the intimation to the Bombay Stock Exchange on August 11, 2026, citing Clause 7 of Para A Part A Schedule III of Regulation 30 of SEBI LODR. The filing confirms that there are no undisclosed relationships between the directors and the newly appointed audit firm, maintaining transparency in the selection process.

Auditor Profile and Experience

M/s. Sanjeev Sharma & Associates, Chartered Accountants, brings extensive experience in statutory and concurrent audits. Established in 1993, the firm holds Firm Registration No. 12326N and is registered with the Institute of Chartered Accountants of India (ICAI), the Comptroller and Auditor General (C&AG), and the Reserve Bank of India (RBI).

The firm specializes in a broad spectrum of services including statutory, concurrent, revenue, stock, and internal audits, alongside GST consultancy, income tax advisory, accounting, and company law compliance. Its client portfolio includes prominent public sector banks such as State Bank of India, Punjab National Bank, UCO Bank, Punjab & Sind Bank, Union Bank of India, Central Bank of India, and Canara Bank. Additionally, the firm has served government organizations and corporate entities like India Optel Limited, Haryana Tourism Corporation Limited, HSSIDC, NIELIT, CITCO, and Haryana State Warehousing Corporation.

Key Details of Appointment

The appointment underscores Modern Dairies’ commitment to robust financial reporting and regulatory adherence. By engaging a firm with deep expertise in banking and public sector audits, the company aims to strengthen its internal controls and audit quality. Shareholders are advised to review the appointment details during the upcoming AGM proceedings.

Modern Dairies Limited reported a standalone net profit of ₹2.13 crore for the quarter ended June 30, 2026 (Q1FY27), a 30% year-on-year increase from ₹1.65 crore in the corresponding period of FY26. Revenue from operations rose 16.6% to ₹91.27 crore, up from ₹78.30 crore in Q1FY26, driven by favorable inventory movements and controlled material costs. The Board of Directors approved these results on August 11, 2026, alongside key governance appointments.

The company’s total income stood at ₹91.56 crore, while total expenses were ₹88.52 crore. Profit before tax was ₹3.05 crore, compared to ₹2.09 crore in Q1FY26. Deferred tax expense increased to ₹90.85 lakh from ₹44.07 lakh in the prior year quarter. Earnings per share (basic) rose to ₹0.75 from ₹0.64 in Q1FY26. The results were reviewed by the Audit Committee and approved by the Board pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Highlights

Cost of materials consumed decreased to ₹71.72 crore from ₹60.57 crore in Q1FY26, but was offset by a positive change in inventories of ₹34.12 lakh compared to a negative adjustment of ₹73.31 lakh in the prior year. Employee benefits expense remained stable at ₹4.27 crore. Other income declined slightly to ₹29.76 lakh from ₹13.57 lakh in Q1FY26.

Governance and Appointments

The Board approved the re-appointment of Mr. Ashwani Kumar Aggarwal as Executive (Whole-Time) Director for three years, subject to shareholder approval at the forthcoming Annual General Meeting (AGM). The appointment follows a recommendation by the Nomination and Remuneration Committee. Mr. Aggarwal, a Dairy Technologist with over three decades of experience, has been associated with the company since its inception.

Additionally, the Board appointed M/s. Sanjeev Sharma & Associates as Statutory Auditors for one year, effective from the conclusion of the AGM until the AGM in 2027. M/s. K K Sinha & Associates was appointed as Cost Auditors for the financial year 2026-27. Both appointments were recommended by the Audit Committee.

Key Disclosures

The company disclosed an ongoing legal matter regarding Milk Cess liability under the Haryana Murrah Buffalo and other Milch Animal Breed Act, 2001. A Special Leave Petition is pending before the Supreme Court, which granted an interim stay in September 2012. The Government of Haryana issued a demand notice on December 31, 2023, for ₹544.31 crore including compounded interest. As of June 30, 2026, the company has provided ₹22.01 crore for this liability, including a current quarter provision of ₹11.81 lakh. Of this total provision, ₹9.91 crore has already been deposited as per court orders.

What the Numbers Show

The 30% net profit growth outpaced the 16.6% revenue growth, indicating improved operational leverage. This margin expansion was primarily driven by a significant positive swing in inventory valuation changes (₹34.12 lakh vs. negative ₹73.31 lakh last year) and controlled employee costs. However, the rise in deferred tax expenses suggests higher taxable income recognition, while the ongoing milk cess litigation remains a contingent liability risk, though partially mitigated by existing provisions and court stays.