Kothari Fermentation & Biochem announced significant corporate decisions following its board meeting held on December 22, 2025. The ISO 22000:2018 HALAL certified company informed BSE Limited about key resolutions passed during the meeting, which commenced at 3:30 PM and concluded at 4:05 PM.

Internal Auditor Reappointment

The board approved the reappointment of M/s RADAM Associates, Chartered Accountants (FRN: 008280C) as the company's internal auditors for Financial Year 2025-26. This decision was made based on the recommendation of the audit committee and will be effective from April 1, 2025.

RADAM Associates is a chartered accountancy firm established in 2020 through the merger of well-established CA firms, including R Kant Gupta & Associates, Aman Madaan & Associates, and KMD Associates. The partnership firm provides comprehensive professional services encompassing internal audit, statutory audit, taxation, and regulatory compliance. The firm maintains empanelment with regulatory authorities including the Reserve Bank of India (RBI) and the Comptroller & Auditor General of India (CAG).

Banking Facilities Confirmation

The board took note of and confirmed loan facilities aggregating ₹25.00 crores from Karur Vysya Bank Limited. These facilities comprise two key components for the company's financial restructuring and business expansion needs.

Regulatory Compliance

The announcements were made in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also adhered to SEBI circulars dated July 13, 2023, and November 11, 2024, regarding disclosure requirements for auditor appointments. The meeting documentation was signed by Shivani, Company Secretary & Compliance Officer.

These corporate actions reflect Kothari Fermentation & Biochem's ongoing efforts to maintain robust internal audit mechanisms while securing adequate banking facilities to support its business operations. The reappointment of experienced internal auditors and confirmation of substantial loan facilities position the company for continued operational efficiency in the upcoming financial year.

Kothari Fermentation & Biochem Limited , a yeast manufacturing company, has reported a substantial net loss for the quarter ended September 30, 2025, raising concerns about its financial health and compliance issues.

Financial Performance

The company's financial results for the second quarter of the fiscal year 2025-26 paint a challenging picture:

The net loss for Q2 FY2025-26 stood at Rs. 307.72 lakhs, a significant increase from the loss of Rs. 112.46 lakhs in the previous quarter. This represents a deterioration in the company's financial performance, with the loss widening by approximately 173% quarter-over-quarter.

Operational Challenges

The company's operational expenses have seen an uptick, particularly in power and fuel costs, which amounted to Rs. 628.06 lakhs for the quarter. This increase in operational costs, coupled with a slight decline in revenue from operations compared to the same quarter last year, has contributed to the expanded losses.

Compliance Concerns

Adding to the financial woes, Kothari Fermentation & Biochem is facing compliance issues. The company has reported outstanding statutory dues, including:

• TDS (Tax Deducted at Source) of Rs. 4.85 lakhs
• PF (Provident Fund) of Rs. 9.82 lakhs

These dues have been pending for over six months, raising concerns about the company's ability to meet its statutory obligations.

Cash Flow and Liquidity

The cash flow statement reveals some positive movements despite the overall financial strain:

• Net cash flow from operating activities for the half-year ended September 30, 2025, was Rs. 420.01 lakhs.
• Cash and cash equivalents at the end of the period increased to Rs. 59.13 lakhs from Rs. 24.09 lakhs at the beginning of the period.

However, the company's ability to manage its short-term liabilities and improve its working capital position remains crucial.

Outlook

The consecutive quarterly losses and compliance issues present significant challenges for Kothari Fermentation & Biochem. The company's management will need to address these concerns promptly to restore investor confidence and improve its financial health.

Investors and stakeholders should closely monitor the company's efforts to reduce operational costs, improve revenue, and resolve the outstanding statutory dues in the coming quarters.