Kothari fermentation & biochem ltd

From recent 2023 annual report, 4 red flags –

1. Significant reduction in profits due to high material cost

2. Seems CRISIL has decreased their rating:

CREDIT RATING
Your company’s domestic credit rating by CRISIL is ‘CRISIL BB+ /Stable (Downgraded from ‘CRISIL BBB-/Negative’)’for
long-term debt facilities and a ‘CRISIL A4+ (Downgraded from ‘CRISIL A3’)’ for the short-term debt facilities.

3. They still have 9.81 Crore income-tax case going on from AY 2008-09.

4. There is chances that Statutory Auditors they hired have relationship with promoters

Statutory Auditors
In terms of the provisions of the Section 139 of the Companies Act, 2013, the shareholders have appointed M/s
Kothari Kuldeep and Co., Chartered Accountants as Statutory Auditor of the Company for a term of five years from the
conclusion of 32nd Annual General Meeting till the conclusion of 37th Annual General Meeting of the Company to be
held in the year 2027.
The notes on accounts are self-explanatory with regards to auditors’ observations. There was no qualification, reservation
or adverse remark made by the Auditors for the year under review.

PS: Not invested. Not thinking too at current valuation.