The shares of the Chennai-based Kothari Industrial Corporation Ltd (KICL), trading in which has been suspended since July 18, 2000, are set to be allowed for trading again on the BSE “very soon”, the company’s Vice Chairman and MD, J Rafiq Ahmed, told businessline today. He did not give more details. 

Set up in 1917 by Chandula Mothilal Kothari, KICL was the flagship company of the Kothari group; it continued to be the flagship of the DC Kothari group after the group was split into two (the other being H C Kothari group) between Kothari brothers. During its better days, until the 1990s, KICL was in four major businesses – fertilizers, textiles (spinning), financial services and granite.  

Company’s turnover

As per data available on the BSE, the company’s turnover in 2022-23 was ₹9.58 crore and net loss, ₹19.77 lakh. The company has two secured creditors to whom it owes ₹31.67 crore and 63 unsecured creditors who are owed ₹7.81 crore.  

On May 10, 2023, the National Company Law Tribunal, Chennai, allowed KICL to “cancel and extinguish” 66.70 lakh shares of ₹5 each. The company had earlier, in March 2016, allotted these shares to shareholders instead of using their share subscription money.  

While allotting the shares, KICL unwittingly violated laws – it should have first gotten the suspension in trading revoked before issuing fresh shares. To rectify the lapse, the company told the NCLT that it would annul the issue and sought the Tribunal’s permission for the same—which was granted on May 10, 2023. 

While giving the objects of the annulment of the 66.70 lakh shares, KICL had told the Tribunal that the capital reduction scheme would enable the company “to comply with the norms for a vacation of suspension (of trading).”