Committed Cargo Care Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Committed Cargo Care Ltd's record shows three consecutive clean audit opinions, but cash conversion is negative, auditor churn is recurring, and the group is rapidly expanding through new subsidiaries while old receivables and tax disputes persist.

Key findings

  1. Reported profit is not converting to cash Major - Cumulative operating cash flow was negative ₹23 crore over FY24-FY26 against cumulative PAT of ₹22 crore, a CFO/PAT ratio of -1.05x. The gap widened each year, from -0.73x in FY24 to -1.35x in FY26, while the company continued paying dividends.
  2. Revenue growth is not converting to cash, with old disputed receivables piling up Major - Revenue rose from Rs. 143 crore in FY24 to Rs. 251 crore in FY26, but CFO turned increasingly negative, reaching Rs. -13.84 crore in FY26. As at 31 March 2024, 4.23 crore of receivables were outstanding more than 3 years, including 1.51 crore disputed but considered good, up from 3.93 crore a year earlier.
  3. Auditor churn, three statutory auditors in three years Major - Gupta Vijay K & Co. resigned effective 22 May 2024, citing SEBI circular CIR/CFDICMD1/114/2019 dated October 18, 2019. Aggarwal Vineeta & Co. audited FY2022-23, and KMM & Associates audited FY2024-25 and FY2025-26. Consecutive annual reports acknowledge "issues, objections or concerns raised by outgoing auditors taken into consideration."
  4. Rapid layering of new subsidiaries and offshore entities while core cash flow is negative Major - The group acquired a 51% stake in Committed Cargo Solutions Private Limited effective August 14, 2025, which then incorporated EziGo FZE in Sharjah Publishing City Free Zone, UAE, during FY2025-26. Subsequent to year-end, the company acquired 100% of Ampersand Logistics Private Limited for ₹5.46 crores, with an indicative completion date of May 29, 2026.
  5. Clean audit opinions with no CARO adverse findings, despite tax arrears and a typo in the internal controls report Major - All three years received unqualified opinions with no Emphasis of Matter. Income tax arrears outstanding over six months were ₹30.29 lakh in FY2025-26, contested by the company. The FY2024-25 internal financial controls report incorrectly states 2024 rather than 2025.
  6. Promoter shareholding fell sharply in FY2026 through open-market sales Minor - Promoter group sold 7,28,800 shares (5.97% of total share capital) through open market on 10-08-2026, reducing holding from 59.39% to 50.37%. Pledge level stood at 0.00%. Managerial remuneration rose 14.70% in FY2025-26 versus 5.08% for other employees.
  7. A ₹17.8 crore service tax demand was dropped in full in April 2026 Minor - The CGST Delhi East Commissionerate order dated 24 April 2026 dropped the Service Tax demand of Rs. 17,80,24,937/- in its entirety with no penalty. A separate demand of Rs. 9,72,692/- relating to GTA services under Reverse Charge Mechanism was confirmed, and the company is evaluating legal remedies.
  8. Tax disputes and third-party recovery suits continue across years Minor - The ₹17.90 crore service tax demand was reduced to ₹9.73 lakhs by order dated 24th April 2026. Income tax arrears stood at Rs.30.29 lakhs in FY2025-26, up from Rs.18.12 lakhs in FY2024-25. The company filed twenty-six suits for recovery of Rs.6.36 crore from third parties in FY2025-26, up from nine suits for Rs.1.45 crore in FY2024-25.

What to watch

Bottom line: The company's clean audit opinions mask a cash-burning core, rapid subsidiary layering, and recurring auditor churn. The risk sits in the gap between reported profit and cash conversion, and in the expanding web of entities and old receivables. Watch whether warrant conversion, the Ampersand acquisition, and the EziGo FZE entity deepen that gap.