Evervan Kothari Footwear Private Limited, a subsidiary of Phoenix Kothari Footwear Private Limited, is establishing a state-of-the-art footwear manufacturing facility in Karur, Tamil Nadu. The unit will manufacture Adidas footwear. The ground breaking ceremony for this facility is scheduled for July 10, 2026, and will be attended by the Hon'ble Chief Minister of Tamil Nadu.

To facilitate shareholder participation, Kothari Industrial Corporation has arranged a live webcast of the ceremony through video conferencing. Shareholders wishing to attend virtually must send their requests to companysecretary@kotharis.in . The company will provide the video conferencing link upon receipt of the request.

Event Details

The intimation was submitted to BSE Limited pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Anil Kumar Padhiali, Company Secretary & Compliance Officer, signed the disclosure on July 9, 2026.

Kothari Industrial Corporation Limited reported a standalone net loss of ₹31.19 crore for the financial year ended March 31, 2026, as the company navigates significant audit qualifications and pending litigations. The Board of Directors approved the audited financial results on June 03, 2026, following a review by the Audit Committee. The statutory auditors, Ray & Ray, issued a qualified opinion on the standalone and consolidated financial statements, highlighting material limitations in verifying key financial figures.

Audit Qualifications and Financial Gaps

The auditors identified several material lapses in the company's financial reporting. A subsidy receivable of ₹80 lakhs, outstanding for over eight years, lacks documentary evidence, preventing verification of its realizability. Additionally, year-end balance confirmations for promoters amounting to ₹1.80 crores, trade receivables of ₹33.49 crores, and other significant balances were not provided for verification. The auditors also noted that detailed stock valuation reports for inventory worth ₹10.98 crores were unavailable, and the company does not track non-moving or slow-moving inventories separately.

Reconciliation and Compliance Issues

Significant discrepancies were found in the company's Goods and Services Tax (GST) accounts. The books reflect a GST input credit balance of ₹10.41 crores and an output liability of ₹10.55 crores, but these have not been reconciled with the GST portal and GSTR-2B. Consequently, the auditors could not verify the accuracy of these liabilities or the available credit. Furthermore, final reconciliation workings for statutory deductions, including Provident Fund liabilities of ₹40.68 lakhs, Employees’ State Insurance of ₹9.38 lakhs, and Professional Tax of ₹30.03 lakhs, were not made available, raising concerns about potential shortfalls in remittances.

Key Financial Metrics and Borrowings

Despite the challenges, the company's total income stood at ₹181.69 crore for the year, while total expenditure reached ₹212.88 crore. To support business operations, the company availed unsecured loan facilities during the quarter ended March 31, 2026. It borrowed ₹34 crores from Satluj Credit Holdings Private Limited and ₹2 crores from Transworld Breweries and Distilleries Private Limited, both at an interest rate of 24% per annum.

Litigation and Regulatory Matters

The company is involved in ongoing legal proceedings, including a writ petition before the Madras High Court challenging the repossession of land in Coonoor by the Collector of Nilgiris. It also received a notice under Section 148A(1) of the Income Tax Act, 1961, dated March 21, 2026, proposing a demand of ₹1.16 crore for FY 2021-22. The company contends the demand is erroneous and has not made any provision for it. Additionally, the company has applied for voluntary delisting of its equity shares from the Calcutta Stock Exchange to streamline compliance.