Company and Document Overview

Sri Chakra Cement Limited (CIN: L40300AP1981PLC002952, Scrip Code: BSE 518053) submitted its 44th Annual Report for the financial year ended March 31, 2026, along with the Notice of the 44th Annual General Meeting (AGM), under Regulation 34 of the SEBI (LODR) Regulations, 2015. The submission was made via a letter dated July 24, 2026, signed by Company Secretary & Compliance Officer P Rajendra Babu, to the BSE Limited listing department.

Financial Performance Analysis

Standalone Results:

  • Revenue from Operations: ₹128.55 crore (up 19.6% from ₹107.49 crore in FY25)
  • Total Expenses: ₹167.91 crore (down from ₹169.26 crore)
  • Standalone Net Loss: ₹22.37 crore (improved from ₹56.77 crore loss in FY25)

Consolidated Results:

  • Consolidated Net Loss: ₹22.55 crore (improved from ₹55.41 crore loss in FY25)
  • Share of Profit from LLP: (₹8.59) crore versus ₹12.34 crore profit in prior year

Financial Ratios (Significant Deterioration):

  • Return on Equity (ROE): (69.31)% vs (500.46)% previous year
  • Net Profit Ratio: (17.54)% vs (52.82)% previous year
  • Return on Capital Employed: (89.50)% vs (87.30)% previous year
  • Inventory Turnover Ratio: 6.31 times vs 3.91 times previous year
  • Trade Receivables Turnover: 60.31 times vs 18.86 times previous year

Annual General Meeting Details

The 44th AGM is scheduled for Wednesday, August 19, 2026, at 12:00 NOON through Video Conferencing (VC) / Other Audio-Visual Means (OAVM). Key agenda items include:

Ordinary Business:

  • Adoption of Audited Standalone and Consolidated Financial Statements for FY 2025-26
  • Re-appointment of Smt. Venkata Naga Lalitha Kapilavai who retires by rotation

Special Business:

  • Re-appointment of Sri Vijayulu Reddy Kaliki as Independent Director for a second five-year term
  • Ratification of remuneration of ₹75,000 plus GST to M/s. Naval & Associates as Cost Auditors

Compliance and Regulatory Disclosures

The company confirmed several compliance statements:

  • No intangible Assets under Development
  • No proceedings for holding benami property under Benami Transactions Act
  • Not declared wilful defaulter by any bank or financial institution
  • No transactions with struck-off companies
  • No charges pending registration beyond statutory period
  • No multiple layers of companies

SEBI Form ISR-1 Requirements: Detailed procedures provided for physical security holders to update PAN, KYC details, bank information, and nomination details as per SEBI circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 03, 2021.

Board Composition and Management Changes

Board as of March 31, 2026:

  • Managing Director: K Vijay Kumar
  • Whole-time Director: K Sriram
  • Director: Venkata Naga Lalitha Kapilavai
  • Independent Directors: Nemani Gopal, Vijayulu Reddy Kaliki, Siva Kumar Ramaswami

Changes during the year:

  • Sri P Ramamoorthy ceased as Independent Director on December 16, 2025
  • Sri Siva Kumar Ramaswami appointed as Additional Director (Independent) effective June 1, 2025

Material Concerns and Going Concern

Auditors highlighted material uncertainty regarding the company's ability to continue as a going concern due to:

  • Negative net worth of ₹35.23 crore
  • Current liabilities exceeding current assets by ₹69.76 crore
  • FPPCA charges expense of ₹4.68 crore recognized in FY26 with total liability of ₹7.08 crore
  • Trade payables of ₹1.99 crore to Micro and Small Enterprises

The company operates in a single reportable segment - Cement, with significant challenges in a competitive market impacting profitability despite the improved financial performance.