Kothari Fermentation Reports Q1 Loss, Announces Board Reshuffles
Kothari Fermentation & Biochem reported a net loss of Rs 112.46 lakhs for Q1, compared to a profit of Rs 109.78 lakhs in the same quarter last year. Revenue decreased to Rs 2375.31 lakhs from Rs 2635.52 lakhs. The company announced several board changes, including the appointment of new secretarial auditors, re-appointment of Mr. Siddhant Kothari as whole-time director, resignation of Dr. Rajiv Agarwal as Independent Director, and appointment of Mr. Varun Kumar as Additional Non-Executive Independent Director. Key committees were reconstituted, and the 35th Annual General Meeting is scheduled for September 30.
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Kothari Fermentation & Biochem , a key player in the yeast and cattle feed industry, has reported a net loss for the first quarter, alongside significant changes to its board composition.
Financial Performance
The company announced a net loss of Rs 112.46 lakhs for the quarter, a stark contrast to the net profit of Rs 109.78 lakhs recorded in the same quarter of the previous year. This shift represents a significant downturn in the company's financial performance.
Revenue from operations also saw a decline, dropping to Rs 2375.31 lakhs from Rs 2635.52 lakhs year-on-year, indicating challenging market conditions for the company's products.
The earnings per share (EPS) turned negative at Rs (0.75), compared to a positive Rs 0.73 in the corresponding quarter last year, reflecting the impact of the loss on shareholder value.
Board and Management Changes
In a series of strategic moves, the company's board approved several key appointments and changes:
M/s Priyanka Saxena & Associates, a peer-reviewed firm, has been appointed as secretarial auditors for a five-year term, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Mr. Siddhant Kothari has been re-appointed as whole-time director, pending shareholder approval. Mr. Kothari, at approximately 31 years old, represents the next generation of leadership within the company.
Dr. Rajiv Agarwal has resigned from his position as Independent Director, citing preoccupation as the reason for his departure.
Mr. Varun Kumar has been appointed as an Additional Non-Executive Independent Director for a five-year term, bringing with him over 15 years of entrepreneurial experience in the manufacturing sector.
Corporate Governance
The company has also announced the reconstitution of its key committees following Dr. Agarwal's resignation. The Audit Committee, Nomination and Remuneration Committee, and Stakeholders' Relationship Committee have all seen changes in their composition to ensure continued effective governance.
Annual General Meeting
Kothari Fermentation & Biochem has scheduled its 35th Annual General Meeting for September 30, where shareholders will have the opportunity to vote on these board changes and appointments.
Auditor's Review
The independent auditor's review highlighted an outstanding issue regarding statutory dues. As of the review date, Provident Fund (PF) dues amounting to Rs 9.59 lakhs, pertaining to the period prior to the quarter, were outstanding for over six months.
This comprehensive update from Kothari Fermentation & Biochem reflects a period of financial challenges coupled with significant organizational changes. The company appears to be positioning itself for future growth and improved governance, despite the current financial setback. Investors and stakeholders will likely be watching closely to see how these changes impact the company's performance in the coming quarters.
Historical Stock Returns for Kothari Fermentation & Biochem
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.04% | -0.36% | -12.04% | -15.71% | -46.68% | +3.40% |
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