Company Overview

Rajshree Sugars & Chemicals Limited (CIN: L01542TZ1985PLC001706) is a public limited company incorporated in India with its registered office at 1GV, 360, Kamaraj Road, Uppilipalayam, Coimbatore - 641015, Tamil Nadu. The company's equity shares are listed on BSE (Scrip code: 500354) and NSE (Scrip symbol: RAJSREESUG).

Financial Performance Highlights

FY 2025-26 Financial Results:

  • Total Income: ₹54,894.36 lakhs (Previous year: ₹65,356.87 lakhs)
  • Profit before Finance Costs, Depreciation and Exceptional Items: ₹4,176.15 lakhs (PY: ₹5,050.29 lakhs)
  • Finance Costs: ₹1,449.50 lakhs (PY: ₹1,597.12 lakhs)
  • Depreciation: ₹2,334.12 lakhs (PY: ₹2,345.60 lakhs)
  • Exceptional Items (Expense): ₹200.86 lakhs (PY: Nil)
  • Profit before Tax: ₹191.67 lakhs (PY: ₹1,107.57 lakhs)
  • Tax Expense: ₹78.08 lakhs (PY: ₹298.47 lakhs)
  • Profit after Tax: ₹113.59 lakhs (PY: ₹809.10 lakhs)
  • Other Comprehensive Income/(Loss): ₹(7.11) lakhs (PY: ₹(101.34) lakhs)
  • Total Comprehensive Income: ₹106.48 lakhs (PY: ₹707.76 lakhs)
  • Basic/Diluted EPS: ₹0.34 (PY: ₹2.44)

Segment-wise Performance (₹ in lakhs):

  • Sugar Segment: Revenue ₹43,736.02, Loss ₹(2,709.97)
  • Cogeneration Segment: Revenue ₹7,690.61, Profit ₹3,894.61
  • Distillery Segment: Revenue ₹12,835.46, Profit ₹2,033.40
  • Inter-segment Revenue: ₹9,794.35

Operational Performance

Sugar Division:

  • Sugarcane crushed: 11,29,060 MT (PY: 12,28,905 MT)
  • Recovery: 8.73% (PY: 8.14%)
  • Sugar Produced: 98,521 MT (PY: 1,00,053 MT)
  • Sugar Sold (Domestic): 88,523 MT (PY: 1,17,347 MT)

Cogeneration Division:

  • Power Produced: 1,376 lakh units (PY: 1,488 lakh units)
  • Power Exported: 831 lakh units (PY: 886 lakh units)

Distillery Division:

  • Alcohol Produced: 177 lakh litres (PY: 187 lakh litres)
  • Sales Volume: 169 lakh litres (PY: 192 lakh litres)

Key Corporate Actions

1. Reappointment of Mr. R. Varadarajan as Director retiring by rotation

  • DIN: 00001738, Date of Birth: 22nd April 1958
  • Currently designated as Wholetime Director since 5th June 2003
  • Recommended by Nomination and Remuneration Committee and Board
  • Serves on committees: Share Transfer (Chairman), Audit, Stakeholders Relationship, CSR, Securities Allotment
  • Holds directorships in Sri Krishna Potable Products Private Limited, CoCCA Art & Design Institute Private Limited, and The Lakshmi Mills Company Limited
  • Does not hold any shares in the company
  • Attendance: All 5 Board meetings during FY25-26

2. Appointment of Statutory Auditors

  • Proposed appointment of M/s. Karthikeyan & Jayaram, Chartered Accountants (Firm Registration No. 007570S)
  • For 5 financial years from FY2026-27 to FY2030-31
  • To replace M/s. S. Krishnamoorthy & Co. who complete their second consecutive term
  • Statutory audit fee: ₹9.00 lakhs per financial year (same as previous auditors)
  • Peer Review Certificate No. 017284 valid from 28th June 2024 to 30th June 2027

3. Reappointment of Mr. R. Varadarajan as Wholetime Director

  • Proposed tenure: 5 years from 5th June 2026 to 4th June 2031
  • Special resolution required as he will attain age of 70 during tenure
  • Remuneration package:
  • Salary: ₹10,00,000 per month consolidated
  • Variable pay: 10% of monthly salary annualized
  • Leave encashment at year-end
  • LTA: ₹5,00,000 per annum
  • Gratuity: half month's salary per completed year
  • Company mobile phone and telephone
  • Company car with driver for official purposes
  • FY24-25 remuneration: ₹130.68 lakhs total (salary ₹117.00 lakhs, perquisites ₹0.40 lakhs, sitting fees ₹2.80 lakhs, variable pay ₹10.48 lakhs)

4. Ratification of Cost Auditors Remuneration

  • M/s. S. Mahadevan & Co., Cost Accountants (Firm Registration No. 000007)
  • Total remuneration: ₹2,50,000 (exclusive of taxes)
  • Breakup: Sugar ₹1,25,000, Cogeneration ₹81,000, Industrial Alcohol ₹44,000
  • Increased from ₹2,00,000 paid in previous year

Capital Structure and Shareholding

  • Authorized Share Capital: ₹3,700.00 lakhs (3,70,00,000 shares of ₹10 each)
  • Paid-up Share Capital: ₹3,313.56 lakhs (3,31,35,606 shares of ₹10 each)
  • Promoter Holding: 40.72% (1,34,92,021 shares)
  • Dematerialized Shares: 97.07% of total equity share capital
  • Shares pledged: 1,34,92,021 equity shares with voting rights of Promoter & Promoter Group in favour of SBICAP Trustee Company Ltd for lenders

Dividend and Reserves

  • No dividend recommended for FY 2025-26 to conserve financial resources
  • No amount transferred to reserves
  • Unpaid dividend of ₹39,729/- for FY 2009-10 pending transfer due to Court orders

Changes in Registered Office

  • Registered office shifted from "The Uffizi", 338/8, Avanashi Road, Peelamedu, Coimbatore to 1GV, 360, Kamaraj Road, Uppilipalayam, Coimbatore
  • Effective from 1st September 2025

Board Composition and Changes

Current Board of Directors:

  • Ms. Rajshree Pathy (Chairperson, DIN: 00001614)
  • Mr. R. Varadarajan (Wholetime Director, DIN: 00001738)
  • Mr. S. Vasudevan (Independent Director, DIN: 01567080)
  • Mr. Sheilendra Bhansali (Independent Director, DIN: 00595312)
  • Mr. K. Ilango (Independent Director, DIN: 00124115)
  • Mr. B. Rajan (Independent Director, DIN: 10309315)

Changes during the year:

  • Mr. B. Rajan appointed as Independent Director effective 13th August 2025
  • Mr. S. Krishnaswami (Independent Director) completed second consecutive tenure on 29th September 2025

Key Managerial Personnel

  • Mr. R. Varadarajan: Wholetime Director
  • Mr. C.S. Sathiyanarayanan: Chief Financial Officer
  • Mr. M. Ponraj: Company Secretary

Corporate Governance

  • 5 Board meetings held during the year
  • All mandatory committees constituted: Audit, Nomination & Remuneration, Stakeholders Relationship, CSR, Share Transfer, Securities Allotment, Compensation
  • Whistle Blower Policy established and operational
  • No frauds reported by auditors under Section 143(12)
  • No complaints under Sexual Harassment of Women at Workplace Act, 2013

Debt Restructuring and Borrowings

  • Company under monitoring period after debt restructuring under Framework Restructuring Agreement dated 12th July 2021
  • Working capital facilities availed from Kotak Mahindra Bank: Dropline Overdraft ₹30 crores and Cash Credit ₹20 crores
  • Total Borrowings (Non-current): ₹24,011.72 lakhs
  • Total Borrowings (Current): ₹9,079.38 lakhs
  • Debt Equity Ratio: 0.91 (PY: 1.03)

Contingent Liabilities

  • GST and Central Excise demand of ₹62.84 Crores for period Apr'14 to Jun'17 - writ petition filed in Madras High Court
  • Excise duty demand of ₹161 lakhs for Apr'12 to Jun'12 - appeal filed before appellate tribunal
  • Tamil Nadu Electricity Board demand of ₹4.99 crores for parallel operation charges - appeal pending in Supreme Court
  • Recompense amount payable as per Debt Restructuring Scheme: ₹238.34 Crores

E-Voting and AGM Arrangements

  • Remote e-voting period: 20th July 2026 (9:00 AM) to 22nd July 2026 (5:00 PM)
  • NSDL appointed as e-voting agency
  • Mr. B. Krishnamoorthi, FCA appointed as Scrutinizer
  • Members can join AGM through VC/OAVM facility
  • Company registered on SMART ODR Portal for investor grievance resolution

Conservation of Energy and Technology Absorption

  • Energy conservation initiatives implemented across all units with total investment of ₹17.55 lakhs
  • R&D expenditure: ₹138.06 lakhs
  • Focus on drip irrigation, mechanized harvesting, and new sugarcane varieties
  • YouTube channel created for technology promotion with 5 videos and 2 short videos uploaded

Future Outlook

  • Ground water recharge in command areas supporting operations for next two years
  • Government allowed sugar export of 1.5 million tons in 2025-26 season
  • Ethanol blending program continues with national average of 19.98% achieved till 31st March 2026
  • Climate variations and competitive crops remain key challenges

Auditors and Compliance

  • Statutory Auditors: M/s. S. Krishnamoorthy & Co. (completing tenure)
  • Cost Auditors: M/s. S. Mahadevan & Co.
  • Secretarial Auditor: Mr. G. Soundarrajan, Practising Company Secretary
  • No qualifications or adverse remarks in audit reports

Other Disclosures

  • No deposits accepted under Section 73 of Companies Act, 2013
  • No loans, guarantees or investments under Section 186
  • All related party transactions at arm's length basis
  • No material changes between financial year end and date of report
  • Fixed deposits: Not applicable

#Tags: #RajshreeSugars #AnnualReport #FY2026 #SEBIDisclosure #AGMNotice #FinancialResults #SugarIndustry #Negative

Note: All financial figures in Indian Rupees lakhs (1 lakh = 100,000)