Kothari Industrial Corporation Limited has secured a service contract worth approximately ₹9.45 crore from Integral Coach Factory (ICF), Chennai. The order involves the hiring of 3 Ton and 5 Ton forklift trucks along with drivers, fuel, and associated staff for the movement of coach items within the Furnishing Division Shops. This contract is expected to be executed over a period of 580 days from the date of the Letter of Acceptance, which was issued on June 27, 2026.

The contract value is detailed at ₹94,473,428.11. As per the terms, the company must submit a Performance Guarantee equivalent to 5% of the contract value. The agreement is subject to the conditions stipulated in the tender documents issued by the production unit of Indian Railways.

Contract Details

The following table summarises the key parameters of the awarded contract:

The contract specifically covers the movement of coach items from store wards to designated locations or coaches in the Furnishing Division Shops of ICF. The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the order has been awarded by a domestic entity and does not fall within the ambit of related party transactions. Furthermore, the promoter group has no interest in the entity awarding the contract. Anil Kumar Padhiali, Company Secretary cum Compliance Officer, signed the disclosure on behalf of the company.

Kothari Industrial Corporation Limited reported a consolidated net loss of ₹8,989.20 lakh for the financial year ended March 31, 2026, significantly widened by the consolidation of losses from its 30% stake in associate company Phoenix Kothari Footwear Limited. The standalone net loss for the year stood at ₹3,121.44 lakh. The Board of Directors approved the audited financial results on May 30, 2026, following a review by the Audit Committee and Statutory Auditors.

Audit Qualifications and Financial Impact

M/s. Ray & Ray, Statutory Auditors, issued a qualified opinion on both standalone and consolidated financial results, highlighting several material discrepancies. The auditors noted a government subsidy receivable of ₹80 lakhs outstanding for over eight years without documentary evidence. 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 flagged unreconciled GST input credits of ₹10.41 crores and output liabilities of ₹10.55 crores with the GST portal, alongside the unavailability of detailed stock valuation reports for inventory worth ₹10.98 crores. Further, statutory deductions under Provident Fund, Employees’ State Insurance, and Professional Tax totaling ₹80.09 lakhs could not be reconciled due to missing payroll records.

Operational and Disciplinary Updates

During the quarter ended March 31, 2026, the company availed unsecured loan facilities totaling ₹36 crores at an interest rate of 24% per annum to support business operations. This included ₹34 crores from Satluj Credit Holdings Private Limited and ₹2 crores from Transworld Breweries and Distilleries Private Limited. The company disclosed receiving a notice from the Income Tax Department under Section 148A(1) dated March 21, 2026, proposing a demand of ₹1,16,26,892 for the assessment year 2022-23, against which no provision has been made. Proceedings initiated by the Collector of Nilgiris for land repossession in Coonoor are currently pending adjudication before the Madras High Court. The company also applied for voluntary delisting of its equity shares from the Calcutta Stock Exchange to streamline compliance.