Southern Magnesium & Chemicals Ltd

Financial results

• Unaudited quarterly results for quarter ended 30 June 2026 approved.
• Audit Committee reviewed; statutory auditors issued unmodified limited-review report.
• Results prepared in Ind AS.

AGM and book closure

• AGM scheduled for Sept 30, 2026 via video conferencing.
• Book closure fixed 24 September to 30 September 2026.
• Notice of AGM along with Directors' report issued.

Auditor remarks

• Independent Auditor's Review Report states no material misstatement.

Accounting and segment disclosure

• Company operates in a single magnesium segment under IND AS 108.

Special Window details

• Opening of a Special Window to transfer physical shares to demat form.
• Window provides transfer and dematerialisation options for a defined period.
• The window lasts one year from the lodgement date.
• The facility is available to shareholders for dematerialisation under the SEBI circular.
• Lodgement of transfer requests is subject to regulatory requirements and document verification.

Dematerialisation status

• All dematerialisation requests processed within 15 days of receipt.
• Dematerialised securities are listed on the stock exchange(s).
• Physical certificates for dematerialisation mutilated and cancelled; depository named as registered owner in records.

Secretarial auditor appointment

• M/s. D. Hanumanta Raju & Co. appointed as secretarial auditors for FY 2026-27.
• Appointment approved at board meeting on 04 May 2026.
• Firm established in 1990; provides corporate consultancy and secretarial audit services.
• Peer Review certified; experienced with listed entities, SEBI, FEMA, IPOs, and compliance audits.
• No director relationship disclosed.

Internal auditor appointment

• M/s. K. S. Rao & Co. appointed as internal auditors for FY 2026-27.
• Appointment approved at board meeting on 04 May 2026.
• Firm established in 1976; specializes in assurance, risk, tax advisory, and transaction services.
• Appointment is on terms decided by the Board.
• No director relationship disclosed.

Audited results

• Board approved audited financial results for quarter and year ended 31 March 2026.
• Statutory auditors Brahmayya & Co. issued an unmodified opinion.
• Auditors reported the financial results present a true and fair view.

Financials

• 📊 Q4 FY26 revenue from operations rose to ₹89.86 lakh, up 10.8% YoY.
• 📊 Q4 FY26 total income increased to ₹115.23 lakh from ₹101.47 lakh.
• 📊 Q4 FY26 profit after tax was ₹5.87 lakh versus loss of ₹6.91 lakh.
• 📊 FY26 revenue from operations fell to ₹335.55 lakh from ₹1,243.49 lakh.
• 📊 FY26 total income declined to ₹399.07 lakh from ₹1,300.41 lakh.
• 📊 FY26 profit after tax dropped to ₹12.64 lakh from ₹319.77 lakh.
• 📊 FY26 EPS was ₹0.42, versus ₹10.66 in FY25.
• 📊 Finance costs rose to ₹37.95 lakh in FY26 from ₹14.71 lakh.
• 📊 Material consumption was ₹199.28 lakh in FY26, versus ₹562.94 lakh last year.

Balance sheet

• 📊 Cash and cash equivalents were ₹1.35 lakh at FY26 end.
• 📊 Other bank balances stood at ₹305.00 lakh at FY26 end.
• 📊 Inventories were ₹814.51 lakh, down from ₹971.61 lakh.
• 📊 Borrowings increased to ₹466.83 lakh from ₹329.46 lakh.
• 📊 Equity share capital remained ₹300.00 lakh.
• 📊 Other equity rose to ₹1,004.82 lakh from ₹992.19 lakh.

Cash flow

• 📊 FY26 operating cash flow was negative ₹468.65 lakh, versus positive ₹473.27 lakh.
• 📊 FY26 investing cash flow was positive ₹368.61 lakh, aided by movement in other bank balances.
• 📊 FY26 financing cash flow was positive ₹99.42 lakh.
• 📊 Net cash and cash equivalents decreased by ₹0.62 lakh during FY26.

Audit and governance

• 📍 Statutory auditors issued an unmodified opinion on FY26 standalone audited results.
• 📍 Board approved FY26 audited results on 4 May 2026.
• 📍 D. Hanumanta Raju & Co. was appointed secretarial auditor for FY27.
• 📍 K. S. Rao & Co. was appointed internal auditor for FY27.

Business

• 🗒️ The company operates in a single business segment: magnesium.
• 🗒️ Results are standalone for the quarter and year ended 31 March 2026.

Financial results

• Approved audited standalone financial results for quarter and year ended 31 March 2026.
• Auditor issued an unmodified opinion on the audited standalone results.

Key financials

• Revenue from operations was ₹89.86 lakh for the quarter and ₹335.55 lakh for the year.
• Net profit was ₹5.87 lakh for the quarter and ₹12.64 lakh for the year.
• Balance sheet total assets were ₹1,800.11 lakh and equity was ₹1,304.82 lakh.
• Cash and cash equivalents closed at ₹1.35 lakh as of 31 March 2026.

Auditor report

• Statutory auditor reported a true and fair view with no modified opinion.
• Quarterly figures for March 2026 and March 2025 were balancing figures.

Appointments

• Appointed D. Hanumanta Raju & Co. as secretarial auditor for FY 2026-27.
• Appointed K. S. Rao & Co. as internal auditor for FY 2026-27.