Key Financial Figures (FY 2025-2026)

Financial Performance:

  • Total Revenue: ₹86.73 crore (₹104.68 crore in FY25)
  • Net Loss: ₹240.57 crore (₹133.05 crore in FY25)
  • EPS: ₹(30.95) per share (₹(17.12) in FY25)
  • Total Comprehensive Income: ₹(240.00) crore (₹(138.84) crore in FY25)
  • Depreciation: ₹266.14 lakh (₹258.77 lakh in FY25)
  • Interest: ₹72.08 lakh (₹512.83 lakh in FY25)

Segment-wise Performance:

  • Cement Division: Production 165,884 MT; Turnover ₹63.65 crore; Loss PBIT ₹10.89 crore
  • Sugar Division: Cane crushed 21,450 MT; Turnover ₹16.26 crore; Loss PBIT ₹9.60 crore
  • Power Division: Generation 12,92,159 kWh; Turnover ₹0.99 crore; Loss PBIT ₹3.06 crore

Capital Structure:

  • Share Capital: ₹777.39 lakh (77,73,858 equity shares of ₹10 each)
  • Dematerialized Shares: 76,54,215 shares (98.46% of total)
  • Promoter Holding: 54.25% (42,17,225 shares)

Dividend:

  • Recommended Dividend: ₹3 per equity share
  • Total Outlay: ₹233.22 lakh
  • Record Date: August 3, 2026
  • Payment Date: On or before September 9, 2026

AGM Details

  • Date: August 10, 2026
  • Time: 10:15 AM
  • Venue: Sri Thyagaraya Gana Sabha, Vivek Nagar, Chikkadapally, Hyderabad - 500020
  • Book Closure: August 4, 2026 to August 10, 2026 (both days inclusive)

AGM Agenda Items

Ordinary Business:

1. Adoption of audited financial statements for FY ended March 31, 2026

2. Declaration of dividend of ₹3 per equity share

3. Re-appointment of Shri J S Rao (DIN: 00029090) who retires by rotation

Special Business:

4. Payment of Remuneration to Managing Director: Approval for remuneration to Shri P Veeraiah for remaining tenure from December 1, 2026 to November 30, 2028 at same terms approved in 2023 AGM:

  • Salary: ₹7,00,000 per month
  • Commission: 2% of net profits
  • LTA: Equivalent to one month's salary
  • Perquisites: HRA 40% of salary, medical reimbursement, car with driver, club fees
  • Minimum remuneration as per Schedule V if profits inadequate

5. Re-appointment of Director: Smt. Hima Bindu Myneni (DIN: 07120807) as Non-Executive Independent Director for five years from June 16, 2026 to June 15, 2031 (Special Resolution)

6. Fixation of Cost Auditor Remuneration: Ratification of remuneration of ₹1.75 lakh to M/s. Narasimha Murthy & Co. for FY 2026-27 cost audit

7. Donation Authorization: Authorization to Managing Director to give donations up to ₹35 lakh per year to charity organizations from 2026-2027 onwards

Corporate Governance

Board Composition:

  • Total Directors: 6
  • Executive Directors: 1 (Shri P Veeraiah - Chairman & MD)
  • Non-Executive Directors: 5 (including 3 Independent Directors)
  • Women Directors: 2 (Smt. M Varalakshmi and Smt. Hima Bindu Myneni)

Board Meetings:

  • 4 meetings held during FY26 on May 23, 2025; August 11, 2025; November 3, 2025; and February 6, 2026

Key Managerial Personnel:

  • Shri P Veeraiah (Chairman & Managing Director)
  • Dr. P Anuradha (Chief Executive Officer)
  • Shri M Bhavani Dattu (Chief Financial Officer)
  • Shri M V R L S Rao (Company Secretary & Compliance Officer)

Committee Composition:

  • Audit Committee: Smt. Hima Bindu Myneni (Chairperson), Shri J S Rao, Shri V Siva Ramakrishna Murthy, Shri K Rama Rao
  • Nomination & Remuneration Committee: Shri V Siva Ramakrishna Murthy (Chairman), Smt. M Varalakshmi, Shri K Rama Rao
  • Stakeholders Relationship Committee: Smt. Hima Bindu Myneni (Chairperson), Smt. M Varalakshmi, Shri V Siva Ramakrishna Murthy
  • CSR Committee: Smt. Hima Bindu Myneni (Chairperson), Shri P Veeraiah, Shri J S Rao

Statutory Auditors:

  • M/s. M. Anandam & Co., Chartered Accountants (FRN: 000125S)
  • Appointed for 5 years from 2022 AGM to 2027 AGM
  • Audit Fees: ₹5.00 lakh (statutory audit), ₹1.25 lakh (tax audit), ₹1.50 lakh (limited review)

Internal Auditors:

  • M/s. Ramanatham & Rao, Chartered Accountants

Cost Auditors:

  • M/s. Narasimha Murthy & Co., Cost Accountants
  • Remuneration: ₹1.75 lakh for FY 2026-27 (subject to shareholder ratification)

Secretarial Auditor:

  • Manjula Aleti & Associates, Practicing Company Secretaries
  • Secretarial Audit Report issued in Form MR-3 with no qualifications

SEBI Compliance:

  • Annual Secretarial Compliance Report obtained
  • No material non-compliances observed
  • No penalties imposed by SEBI or stock exchanges during the year

IEPF Transfers:

  • Transferred 12,292 equity shares to IEPF during FY26
  • Transferred unclaimed dividend of ₹10,02,843 (for FY 2017-18) to IEPF

Related Party Transactions:

  • All transactions at arm's length basis
  • Approved by Audit Committee
  • Total remuneration to KMPs: ₹220.59 lakh

Operational Highlights

Capacity Utilization:

  • Cement: Production decreased by 27.82% to 165,884 MT from 129,778 MT in FY25
  • Sugar: Cane crushing decreased by 55.21% to 21,450 MT from 47,887 MT in FY25
  • Power: Generation decreased by 40.36% to 12,92,159 kWh from 21,66,438 kWh in FY25

Challenges Cited:

  • Adverse market conditions in cement industry
  • Weaker infrastructure demand and government spending
  • Rising input costs (petrol/diesel, raw materials)
  • Scarcity of water sources for sugar division
  • Migration of farmers to alternative crops like oil palm
  • Government restrictions on coal usage in power division

Outlook for Current Year:

  • Cement: Target production 270,000 MT
  • Sugar: Target cane crushing 25,000 MT
  • Power: Performance dependent on sugar division operations

Capital and Investments

Property, Plant and Equipment:

  • Gross Block: ₹682.97 crore
  • Net Block: ₹444.92 crore
  • Additions during year: ₹183.08 lakh

Investments:

  • Union Bank of India shares: 1,830 shares valued at ₹3.00 lakh

Bank Balances:

  • Cash & Cash Equivalents: ₹228.74 lakh
  • Other Bank Balances: ₹4,043.07 lakh (including term deposits of ₹4,000 lakh)
  • Earmarked Deposits: ₹6,115.57 lakh (pledged for working capital facilities)

Borrowings and Liabilities

Secured Borrowings:

  • Working Capital Loans: ₹1,950.04 lakh (from State Bank of India)
  • Security: Pledge of fixed deposits valuing ₹7,365.00 lakh
  • Interest Rate: Average 7.07% p.a.

Contingent Liabilities:

  • Tax Matters: ₹6,181.06 lakh (various income tax disputes)
  • Customs Duty: ₹65.77 lakh (dispute for FY 2012-13)
  • Electricity Duty: ₹321.75 lakh (dispute with Telangana Electricity Board)
  • Sales Tax: ₹435.61 lakh (dispute for FY 2015-16)
  • Grid Support Charges: ₹2,053.86 lakh (dispute with TGNPDCL)
  • Wheeling Charges: ₹4,236.87 lakh (dispute with TGSPDCL)

Shareholder Information

Distribution of Shareholding (as on March 31, 2026):

  • Up to 5,000 shares: 17,730 shareholders (95.47%), holding 12.92% of capital
  • 100,001 and above: 39 shareholders (0.21%), holding 69.50% of capital

E-Voting Details:

  • Service Provider: Central Depository Services (India) Limited (CDSL)
  • Voting Period: August 7, 2026 (9:00 AM) to August 9, 2026 (5:00 PM)
  • Cut-off Date: August 3, 2026

Dividend Tax Implications:

  • TDS Rates: 10% for residents with valid PAN, 20% without PAN
  • Exemption: No TDS if dividend below ₹10,000 annually
  • Taxability: Dividends taxable in hands of shareholders

Corporate Social Responsibility

  • No CSR expenditure obligation for FY26 due to losses in previous year
  • CSR Committee constituted but no spending required

Other Disclosures

  • Employee Strength: 433 permanent employees as on March 31, 2026
  • Industrial Relations: Cordial throughout the year
  • Whistleblower Policy: Implemented, no complaints received during year
  • Sexual Harassment Policy: Implemented, no complaints received during year
  • Vigil Mechanism: Established and operational

#Tags: #KakatiyaCement #AnnualReport #FY2026 #SEBIDisclosure #AGM #Dividend #FinancialResults #RegulatoryCompliance #Neutral