Kothari Industrial Corporation Limited has resubmitted a corrected limited review report on its consolidated financial results for the quarter ended December 31, 2025, following a query from BSE regarding an incorrect period mentioned in the original submission. The company acknowledged that a typographical error led to the period being inadvertently mentioned as September 30, 2025 instead of the correct quarter ending December 31, 2025.

Correction Details

The company's compliance officer, Anil Kumar Padhial, submitted the corrected report to BSE, expressing regret for the inadvertent error. The revised limited review report has been duly issued and signed by the statutory auditors, Ray & Ray Chartered Accountants.

Auditor Observations and Concerns

The independent auditor's limited review report highlights several significant matters that require attention. The auditors were unable to obtain sufficient appropriate audit evidence for revenue recognition of ₹118.66 lakhs during the quarter. Additionally, income and expenditure pertaining to one division have not been accrued, with the amount being presently indeterminable.

Key Audit Issues

The auditors have identified multiple areas of concern that impact their ability to provide a clean review opinion:

• Revenue Recognition: The company recognized revenue of ₹118.66 lakhs without sufficient audit evidence available for verification
• Confirmation of Balances: External confirmations for trade receivables, payables, and various advances were not provided for verification
• TDS Compliance: Outstanding TDS defaults of ₹0.77 lakhs pertaining to FY 2022-23, FY 2024-25, and FY 2025-26 remain unresolved
• Legal Proceedings: Ongoing land repossession proceedings by the Collector of Nilgiris for certain plots in Coonoor, currently under challenge at Madras High Court

Associate Company Performance

The consolidated results include the performance of associate company Phoenix Kothari Footwear Limited and its subsidiaries. The group's share of net loss from associates was significant during the reporting period.

Regulatory Compliance Matters

The auditors noted that while the new Labour Codes became effective from November 21, 2025, the supporting final rules are yet to be notified. The company has not considered the potential impact of increased employee benefit obligations in its interim financial results and is currently evaluating the implications for the quarter and year ending March 31, 2026.

Previous Asset Sale Impact

The report references an ongoing matter from the previous year regarding the sale of land and plant machinery in Ennore to Coromandel International Limited for ₹4,895 lakhs and ₹133 lakhs respectively. The final outcome of the stamp duty assessment order remains pending, affecting the computation of capital gains on the transaction.

Kothari Industrial Corporation Limited has announced the constitution of its Risk Management Committee, marking a significant step in strengthening its corporate governance framework. The decision was approved by the Board of Directors during their meeting held on 14th February 2026, in compliance with SEBI regulatory requirements.

Committee Formation and Compliance

The formation of the Risk Management Committee aligns with Regulation 30 read with Regulation 21 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory compliance demonstrates the company's commitment to maintaining robust risk management practices and adhering to prescribed corporate governance standards.

Committee Composition

The Risk Management Committee has been structured with a balanced representation across different categories of directors and senior management:

Operational Framework

The newly constituted Risk Management Committee will function in accordance with the provisions of Regulation 21 of the Listing Regulations and the company's existing Risk Management Policy. This framework ensures systematic identification, assessment, and mitigation of various risks that could impact the organization's operations and strategic objectives.

Board Meeting Details

The Board of Directors meeting that approved this constitution commenced at 4.30 pm and concluded at 7.00 pm on 14th February 2026. The formal intimation was communicated to BSE Limited, where the company's shares are listed under scrip code 509732, ensuring transparency and regulatory compliance.