Kothari Industrial Corporation Limited has announced a strategic academic partnership with ITECH Lyon, France, through the execution of a Memorandum of Understanding (MoU) on February 25, 2026. The collaboration aims to enhance technical education and skill development in leather technology through innovative academic programs.

Partnership Details

The MoU establishes a framework for academic collaboration between the two organizations to design and deliver specialized educational programs in leather technology. The partnership brings together Kothari Industrial's industry expertise with ITECH Lyon's academic excellence in technological innovation.

Academic Program Framework

The collaboration will focus on developing a One-Year Diploma/Certificate program in Leather Technology, emphasizing the latest technological innovations in tanning and finishing processes. This educational initiative is designed to upgrade students' knowledge and keep them connected with cutting-edge innovations in the leather industry.

Under the partnership structure:

• ITECH Lyon will provide academic and teaching services, bringing international expertise in leather technology education
• Kothari Industrial Corporation Limited will provide necessary infrastructure and administrative support to facilitate the program delivery

Strategic Impact

This collaboration is expected to significantly enhance technical capability and skill development in leather and polymer related areas. The partnership aligns with industry needs for skilled professionals who are well-versed in modern leather processing technologies and innovative finishing techniques.

The company has indicated that further disclosures will be made as and when definitive agreements are executed, in accordance with applicable regulations. This suggests that the current MoU serves as a preliminary framework, with more detailed operational agreements to follow.

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.