Chothani Foods Limited reported a 16.7% decline in net profit to ₹11.33 lakh for the financial year ended March 31, 2026, compared to ₹13.61 lakh in the previous year. Revenue from operations increased 4.1% to ₹833.00 lakh from ₹800.20 lakh in FY25. The Board of Directors approved the audited financial results on May 28, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditor, M/s. Gupta Rustagi & Co., issued an audit report with an unmodified opinion on the financial results. However, the auditor included an Emphasis of Matter paragraph noting that the company does not have confirmations and reconciliation for few balances from sundry debtors. The effect of potential adjustments arising from the settlement of old dues and possible loss from non-recovery has not been ascertained.

Total expenses for the year rose to ₹819.85 lakh from ₹782.88 lakh in the prior year. Finance costs increased to ₹22.82 lakh from ₹19.63 lakh. The company’s earnings per share (EPS) for the year stood at ₹0.11, down from ₹0.13 in the previous year. Reserves and Surplus increased to ₹526.48 lakh as of March 31, 2026, from ₹515.14 lakh a year earlier.

Financial Performance for FY26

The statement of assets and liabilities showed that trade payables increased significantly to ₹349.68 lakh from ₹243.79 lakh. Cash and cash equivalents decreased to ₹28.10 lakh as of March 31, 2026, from ₹31.43 lakh in the previous year. The company confirmed there were no investor complaints pending as of March 31, 2026.

Chothani Foods Limited has paid a fine of Rs 5900 to BSE Limited for delayed filing of related party transaction disclosure under Regulation 23(9) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The penalty was imposed for the half year ended September 30, 2025.

Board Deliberations on BSE Penalty

The Board of Directors of Chothani Foods Limited convened on February 13, 2026, to deliberate on the penalty notice received from BSE Limited dated December 16, 2025. The company had received an email communication from the stock exchange regarding the delay in filing the mandatory disclosure under Regulation 23(9) of SEBI Listing Regulations.

Technical Issues Behind Filing Delay

During the board meeting, directors noted that the required disclosure under Regulation 23(9) was successfully submitted to BSE on November 14, 2025, following the Board Meeting held on November 13, 2025. The delay occurred due to unforeseen technical issues experienced during the filing process.

The Board emphasized that the delay was purely technical in nature and occurred without any malafide or wilful intention on the part of the company or any of its Directors or Key Managerial Personnel. The company has since paid the applicable fine to the stock exchange as required.

BSE's Penalty Framework

According to the penalty notice from BSE, the fine was imposed under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which prescribes penal actions for non-compliance with SEBI Listing Regulations. Under Regulation 23(9), companies face a penalty of Rs 5000 per day until compliance is achieved for non-disclosure of related party transactions within the prescribed timeline.

Compliance Status and Resolution

The company has now achieved full compliance with the regulatory requirements and has cleared all outstanding penalties. BSE had warned that failure to pay the fine within 15 days could result in freezing of the entire shareholding of the promoter and suspension of trading activities.

Managing Director Neeraj Ashok Chothani signed the disclosure document, confirming that the matter has been properly addressed and brought to the attention of the Board of Directors as required by regulatory guidelines.