Key Dates and Events

  • AGM Date: September 30, 2026 at 10:00 AM
  • AGM Mode: Video Conferencing (VC) or Other Audio Visual Means (OAVM)
  • E-voting Period: September 26, 2026 (10:00 AM) to September 29, 2026 (5:00 PM)
  • Cut-off Date for E-voting: September 18, 2026
  • Board Meeting Date for Results Approval: May 30, 2026

Financial Performance Highlights (FY 2025-26)

Income Statement (Amounts in ₹ lakhs)

  • Sales and Other Income: ₹12,763.60 (Previous year: ₹12,298.36)
  • EBIDTA: ₹418.70 (Previous year: ₹640.82)
  • Finance Cost: ₹322.21 (Previous year: ₹283.20)
  • Depreciation: ₹79.57 (Previous year: ₹85.45)
  • Profit Before Tax: ₹16.92 (Previous year: ₹272.17)
  • Provision for Taxation: ₹10.53 (Current Tax), ₹(1.92) (Deferred Tax)
  • Profit After Tax: ₹8.31 (Previous year: ₹203.49)
  • Total Comprehensive Income: ₹10.09 (Previous year: ₹202.10)
  • Basic Earnings Per Share: ₹0.13 (Previous year: ₹2.57)

Balance Sheet Highlights (As of March 31, 2026)

  • Equity Share Capital: ₹786.55 lakhs (78,65,520 equity shares of ₹10 each)
  • Other Equity: ₹972.97 lakhs
  • Total Assets: ₹7,196.01 lakhs
  • Property, Plant & Equipment: ₹841.08 lakhs
  • Inventories: ₹3,083.91 lakhs
  • Trade Receivables: ₹2,191.91 lakhs
  • Cash and Cash Equivalents: ₹6.77 lakhs
  • Borrowings (Non-current): ₹247.27 lakhs
  • Borrowings (Current): ₹2,855.30 lakhs
  • Current Liabilities: ₹5,042.71 lakhs

Key Financial Ratios

  • Debtors Turnover: 7.31 (Previous year: 11.52)
  • Inventory Turnover: 3.81 (Previous year: 4.01)
  • Interest Coverage Ratio: 0.53 (Previous year: 2.15)
  • Current Ratio: 1.25 (Previous year: 1.33)
  • Debt Equity Ratio: 1.76 (Previous year: 1.90)
  • Operating Profit Margin: 2.65% (Previous year: 0.04%)
  • Net Profit Margin: 0.07% (Previous year: 0.02%)
  • Return on Net Worth: 0.47% (Previous year: 0.12%)

Dividend and Reserves

  • No dividend recommended for FY 2025-26
  • No amount transferred to reserves

AGM Agenda Items

Ordinary Business

1. Adoption of audited financial statements for FY 2025-26 with reports of Board of Directors and Auditors

2. Appointment of director in place of Mr. Joginatha Sarma Vaduguri (DIN: 00165204) who retires by rotation

3. Re-appointment of statutory auditors M/s. Yelamanchi & Associates, Chartered Accountants (ICAI Firm Registration No. 000041S) for second term of 5 years

Special Business

4. Approval for Material Related Party Transactions with Sree Rayalaseema Hi-Strength Hypo Limited and Mr. Tumbalam Gooty Raghavendra for amount not exceeding ₹18.00 crores per annum

5. Ratification of remuneration of Cost Auditor M/s. M P R & Associates at ₹90,000 plus applicable taxes

Board of Directors

Current Composition

  • Mr. Tumbalam Gooty Raghavendra: Chairman & Managing Director (DIN: 00186546)
  • Mr. Joginatha Vaduguri Sarma: Whole-time Director (DIN: 00165204)
  • Ms. Karunasree Samudrala: Non-Executive Independent Woman Director (DIN: 06960974)
  • Mr. Muttaraju Venu Manohar: Non-Executive Independent Director (DIN: 11272558)
  • Mr. Gantla Venkat Reddy: Non-Executive Independent Director (DIN: 11276913)

Changes During the Year

  • Mr. Satyanarayana Murthy Annadanam (DIN: 02229882) and Mr. Mohan Rao Oruganti (DIN: 07009749) retired as independent directors effective November 2, 2025
  • Mr. Muttaraju Venu Manohar and Mr. Gantla Venkat Reddy appointed as independent directors effective October 1, 2025

Key Managerial Personnel

  • Mr. Vishnu Vardhan Bheemaneni: Chief Executive Officer
  • Mrs. Indani Venkata Lakshmi: Company Secretary & Compliance Officer

Committee Composition

Audit Committee

  • Chairman: Ms. Karunasree Samudrala
  • Members: Mr. Gantla Venkat Reddy, Mr. Joginatha Vaduguri Sarma, Mr. Muttaraju Venu Manohar

Nomination & Remuneration Committee

  • Chairman: Mr. Muttaraju Venu Manohar
  • Members: Mr. Gantla Venkat Reddy, Ms. Karunasree Samudrala

Stakeholders Relationship Committee

  • Chairman: Mr. Gantla Venkat Reddy
  • Members: Mr. Tumbalam Gooty Raghavendra, Mr. Joginatha Vaduguri Sarma

Auditor Appointments and Remuneration

Statutory Auditors

  • M/s. Yelamanchi & Associates, Chartered Accountants (Firm Registration No. 000041S)
  • Audit Fees: ₹3.00 lakhs
  • Other Services: ₹1.00 lakhs
  • Total Fees: ₹4.00 lakhs
  • Recommended for re-appointment for second term of 5 years from FY 2026-27 to 2030-31

Secretarial Auditors

  • M/s. Geeta Serwani & Associates, Practising Company Secretaries
  • Appointed for term of five consecutive years from FY 2025-26 to FY 2029-30

Cost Auditors

  • M/s. M P R & Associates, Cost Accountants (Firm Registration No. 000413)
  • Remuneration: ₹90,000 plus applicable taxes for FY 2026-27

Material Events and Updates

Fire Incident

  • Fire incident at Hyderabad manufacturing facility resulting in damage to property, plant and equipment, and inventories
  • Losses of ₹4.09 crores recognized relating to fixed assets and inventories
  • Insurance claims will be recognized upon receipt in accordance with applicable accounting standards

Related Party Transactions

  • Transactions with Sree Rayalaseema Hi-Strength Hypo Limited (purchase of materials up to ₹800 lakhs)
  • Transactions with Mr. Tumbalam Gooty Raghavendra (loan from directors up to ₹1,000 lakhs)
  • Represent 15% of company's annual turnover for immediately preceding financial year

Share Capital and Ownership

  • Authorized Capital: ₹900 lakhs (90,00,000 equity shares of ₹10 each)
  • Paid-up Capital: ₹786.55 lakhs (78,65,520 equity shares of ₹10 each)
  • Promoter Holding: 48.03% (37,77,664 shares)
  • Public Holding: 51.97% (40,87,856 shares)
  • Dematerialized Shares: 82.42% (NSDL: 70.88%, CDSL: 11.54%)
  • Physical Shares: 17.58%

Significant Accounting Policies

  • Inventories valued at lower of cost (weighted average basis) and net realizable value
  • Property, plant and equipment stated at cost less accumulated depreciation
  • Revenue recognized upon transfer of control of goods to customers
  • Functional and presentation currency is Indian Rupees

Regulatory and Compliance Matters

SEBI Compliance

  • Compliance with Regulation 34 of SEBI (LODR) Regulations, 2015
  • E-voting facilities provided through CDSL as mandated
  • Corporate governance report included as part of annual report

Companies Act Compliance

  • Compliance with Section 134(5) Directors' Responsibility Statement
  • Secretarial audit conducted as per Section 204 of Companies Act, 2013
  • Related party transactions compliant with Section 188 of Companies Act, 2013

Risk Factors and Concerns

  • Raw material price uncertainty affecting profitability
  • Import dependency for Triphenyl Phosphine oxide (TPPO) and Triphosgene
  • Exchange rate fluctuations impacting import costs
  • Increased competition from domestic and global players
  • Credit sales demanding more working capital finance

Corporate Governance

  • Whistle Blower Policy implemented
  • Vigil Mechanism in place
  • Risk Management Policy framed and implemented
  • Internal financial controls adequate and effective
  • Code of Conduct for Board and Senior Management

Human Resources

  • Total employees: 56 (Male: 54, Female: 2)
  • Industrial relations remained cordial throughout the year
  • No complaints under Sexual Harassment at Workplace Policy

Forward-Looking Statements

  • Management Discussion and Analysis contains forward-looking statements within meaning of applicable securities laws
  • Actual results could differ materially due to economic conditions, government regulations, tax laws, and other incidental factors