North Eastern Carrying Corporation Limited has approved the re-appointment of M/s. Nemani Garg Agarwal & Co. as its Statutory Auditor for a five-year term, covering financial years FY2026-27 through FY2030-31. The Board of Directors made this decision on August 4, 2026, acting on the recommendation of the Audit Committee, citing the firm’s satisfactory past performance. The appointment is subject to ratification by shareholders at the company’s ensuing Annual General Meeting (AGM).

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026, updated on January 30, 2026. North Eastern Carrying Corporation Limited notified both the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited of the event.

Auditor Profile and Term Details

M/s. Nemani Garg Agarwal & Co., Chartered Accountants, is a professionally managed firm with over four decades of experience. The firm provides a wide spectrum of professional services, including audit, management consultancy, tax advisory, accounting, and corporate services. It is supported by a team of distinguished Chartered Accountants, Corporate Financial Advisors, and Tax Consultants. The firm holds ICAI Firm Registration No. 010192N.

The key details of the re-appointment are outlined below:

Regulatory Compliance

The Board confirmed that there are no relationships between the directors and the appointed auditor that require disclosure under the relevant regulations. The Company Secretary and Compliance Officer, Rakesh (Membership No. A57773), signed the disclosure letter dated August 4, 2026. The filing includes an annexure detailing the recommendation as required under Regulation 30 of the SEBI Listing Regulations.

What This Means for Stakeholders

The re-appointment ensures continuity in the statutory audit process for North Eastern Carrying Corporation Limited over the next five fiscal years. By retaining Nemani Garg Agarwal & Co., the company aims to leverage the firm’s existing understanding of its operations and compliance framework. Shareholders will have the final say on this appointment during the upcoming AGM, where they will vote to confirm the five-year tenure commencing from FY2026-27.

North Eastern Carrying Corporation Limited reported a 13% year-on-year increase in net profit to ₹2.01 crore for the quarter ended June 30, 2026, driven by a 9.4% rise in revenue from operations. The growth underscores steady demand in its exclusive transportation business segment, providing shareholders with consistent profitability despite broader market fluctuations. However, statutory auditors highlighted governance concerns regarding the company’s failure to provide for doubtful debts and unconfirmed balances.

The Board of Directors approved these unaudited standalone financial results at a meeting held on August 04, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, M/s. Nemani Garg Agarwal & Co., Chartered Accountants, in accordance with Regulation 33 of the same regulations. The financial results were prepared in accordance with Indian Accounting Standards notified under Section 133 of the Companies Act, 2013.

Financial Performance Highlights

Revenue from operations rose to ₹75.58 crore from ₹69.10 crore in the corresponding period of the previous year. Total income stood at ₹77.25 crore, compared to ₹69.25 crore previously. Operating expenses remained controlled, with employee benefits expense at ₹3.74 crore and finance costs at ₹2.11 crore. Profit before tax increased significantly by 37% to ₹3.29 crore from ₹2.40 crore. Tax expenses amounted to ₹1.28 crore, comprising current tax of ₹1.22 crore and deferred tax of ₹0.06 crore.

Auditor Observations and Governance

The statutory auditors issued a modified conclusion on the statement due to specific observations. M/s. Nemani Garg Agarwal & Co. noted that the company has not provided for doubtful debts, citing management's opinion that debtors are fully realizable. Additionally, the auditors stated that debit and credit balances are subject to confirmation. These disclosures indicate potential monitoring gaps in working capital management that shareholders should monitor.

In other governance matters, the Board re-appointed M/s. Nemani Garg Agarwal & Co. as Statutory Auditor for a five-year term from FY2026-27 to FY2030-31. The Board also approved the re-appointment of Sunil Kumar Jain as Chairman and Managing Director, and Utkarsh Jain as Whole-time Director, both serving five-year terms commencing October 01, 2026.

What the Numbers Show

A notable divergence exists between the growth in pre-tax profits and the flat earnings per share (EPS). While profit before tax surged 37% year-on-year, EPS remained constant at ₹0.18 per share. This is primarily due to an increase in paid-up equity share capital from ₹100 crore to ₹104.50 crore during the preceding quarter, which diluted the per-share impact of the higher absolute profits. The company’s total comprehensive income for the period was ₹1.90 crore.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE553C01016/aa475596-abd5-43db-bc83-99ed41deafa4.pdf