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.

Chothani Foods Limited has announced its unaudited financial results for the half-year ended September 30, 2025, showcasing significant growth across key financial metrics.

Financial Highlights

Revenue and Profitability

Chothani Foods demonstrated robust growth in the first half of fiscal year 2026. The company's total income from operations surged to ₹476.57 lacs, marking a substantial 47% increase from ₹324.75 lacs in the corresponding period of the previous year. This growth indicates strong market demand for the company's products and effective revenue generation strategies.

Expenses and Operational Efficiency

While the company's total expenses increased to ₹459.13 lacs from ₹313.45 lacs, the rise was proportionate to the revenue growth. This suggests that Chothani Foods has maintained operational efficiency while scaling up its business operations.

Profit After Tax

The company's bottom line showed impressive growth, with profit after tax rising to ₹16.71 lacs from ₹11.30 lacs in the previous year, representing a 48% increase. This growth in profitability outpaced the revenue growth, indicating improved margins and efficient cost management.

Balance Sheet Strength

As of September 30, 2025, Chothani Foods reported total assets of ₹2,208.84 lacs, up from ₹1,958.30 lacs as of March 31, 2025. This 12.80% increase in total assets over six months reflects the company's expanding asset base.

Trade Receivables

The company's trade receivables increased to ₹629.87 lacs from ₹482.59 lacs. This 30.50% rise in receivables is notable, and it's important for the company to manage its working capital efficiently to ensure healthy cash flows.

Corporate Governance

The financial results were approved by the Board of Directors at their meeting held on November 13, 2025. Prior to board approval, the results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Gupta Rustagi & Co., demonstrating the company's commitment to regulatory compliance and transparency.

Conclusion

Chothani Foods Limited's half-yearly results for FY2026 showcase strong growth in revenue and profitability. The company's ability to grow its top line while maintaining proportional cost increases suggests effective management and operational efficiency. However, the increasing trade receivables warrant attention to ensure they don't impact cash flows negatively in the future.