Kotyark Industries announced that its Board of Directors has approved the issuance of bonus equity shares in the ratio of 10:1. This means shareholders will receive 10 bonus equity shares of Rs.10 each for every 1 existing fully paid-up equity share held. The decision was taken during the board meeting held on Thursday, May 14, 2026, subject to shareholder approval.

Capital Increase and Shareholder Approval

The board approved increasing the authorized share capital from Rs.23,00,00,000 to Rs.200,00,00,000. This involves raising the number of equity shares from 2,30,00,000 to 20,00,00,000 with a face value of Rs.10 each. The company will seek shareholder consent for the bonus issue and the alteration of the Memorandum of Association via a postal ballot. National Securities Depository Limited (NSDL) has been appointed as the Remote E-Voting Agency, and M/s. SCS and Co. LLP will act as the scrutinizer.

Financial Implications and Dividend

The bonus issue will be capitalized from free reserves, specifically the Securities Premium Account and Retained Earnings. As on March 31, 2026, the company reported a Securities Premium balance of Rs. 7715.14 Lakhs and Retained Earnings of Rs. 7142.5 Lakhs. The board noted that a dividend of Rs.5 per share was previously recommended for the financial year ended March 31, 2026. Following the bonus issue, this dividend will be proportionately adjusted to maintain the overall payout amount.

The record date for determining eligibility for the bonus shares will be communicated later. The company expects to credit the bonus shares within two months from the board approval date, or by July 14, 2026, pending necessary approvals.

Kotyark Industries Limited has submitted a formal clarification to the National Stock Exchange of India Limited in response to an exchange query regarding the format of its financial results for the quarter and year ended March 31, 2026. The exchange, through an e-mail dated April 30, 2026, raised an observation concerning the outcome of the Board Meeting held on April 27, 2026, specifically noting that the submitted financial results were not in the format prescribed by SEBI, with the balancing figure note found to be missing.

Exchange Query and Company's Response

The National Stock Exchange had flagged that the financial results submitted by Kotyark Industries did not conform to the format prescribed by SEBI, citing the absence of a balancing figure note as required under Regulation 33(3)(e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In its reply dated May 06, 2026, the company provided a detailed explanation for the deviation, grounded in its unique transitional regulatory status.

The key details of the exchange query and the company's clarification are summarised below:

Regulatory Context: SME to Main Board Migration

Kotyark Industries explained that the requirement to disclose a balancing figure note under Regulation 33(3)(e) arises specifically when audited annual financial results are submitted together with published year-to-date figures up to the end of the third quarter. This requirement presupposes the existence of previously published quarterly financial results in the prescribed format.

The company noted that it was previously listed on the SME Platform (NSE Emerge) and subsequently migrated to the Main Board of NSE and BSE with effect from March 12, 2026. As a direct consequence of this transitional status, the company was not obligated to publish quarterly financial results under Regulation 33 for the following quarters:

• Quarter ended June 30, 2025
• Quarter ended September 30, 2025
• Quarter ended December 31, 2025

Accordingly, no year-to-date figures in the prescribed format were published for those periods, rendering the standard balancing figure disclosure inapplicable.

Explanatory Notes Provided in Lieu

In place of the standard balancing figure note, Kotyark Industries stated that it had included detailed explanatory notes in its financial results to ensure complete transparency and provide meaningful clarity to all stakeholders. Specifically, the company included:

• Note No. 2: Explaining the migration from the SME Platform to the Main Board with effect from March 12, 2026.
• Note No. 8: Clarifying that the quarterly figures reported for the relevant quarters are based on management-certified accounts derived from audited annual financial statements and have not been subjected to audit or limited review by the statutory auditors, as the company was not required to submit quarterly financial results under Regulation 33 for those periods.

The company further submitted that including the standard balancing figure note without appropriate contextual clarification, in the absence of previously published year-to-date figures, would have been potentially misleading to stakeholders. The explanatory notes provided were stated to accurately reflect the basis of preparation and presentation of the financial results, consistent with the spirit and intent of the applicable regulatory framework.

Compliance Commitment

The clarification was signed by Bhavesh Nagar, Company Secretary and Compliance Officer (Membership No. A62546), from Vadodara. Kotyark Industries expressed confidence that the explanation satisfactorily addressed the exchange's observation and reaffirmed its commitment to full compliance with all applicable regulatory requirements.