Bannari Amman Sugars submitted its Business Responsibility and Sustainability Report (BRSR) for the fiscal year ended March 31, 2026. The filing outlines the company’s environmental performance, social governance practices, and operational sustainability metrics across its integrated sugar, distillery, and power generation businesses.

The report highlights a significant reduction in total energy consumption, which fell to 83,63,296 GJ in FY26 from 1,01,09,347 GJ in FY25. This decline coincided with a decrease in energy intensity per rupee of turnover to 0.000436 GJ/₹ from 0.000564 GJ/₹. The company attributes these improvements to process optimizations, including the replacement of conventional lighting with LED fittings and upgrades to centrifugal machinery.

Environmental Performance

Water management remains a critical focus, with total water withdrawal decreasing to 44,61,884.39 kilolitres in FY26 compared to 48,53,243.37 kilolitres in FY25. Groundwater withdrawal dropped sharply to 25,257.85 kilolitres from 63,000.50 kilolitres the previous year. The company implemented Zero Liquid Discharge (ZLD) systems in its distillery units, treating effluent through biological processes and reverse osmosis for reuse.

Greenhouse gas emissions saw mixed trends. Scope 1 emissions rose to 1,53,992.47 metric tonnes of CO2 equivalent from 1,11,742.61 metric tonnes in FY25. However, Scope 2 emissions declined to 5,784.53 metric tonnes from 8,953.24 metric tonnes. Total waste generated fell significantly to 8,73,433.12 metric tonnes from 11,93,035.41 metric tonnes, driven by lower non-hazardous waste output.

Social and Governance Metrics

The company employs 478 permanent employees and 1,800 workers. Training coverage remained robust, with 85.36% of employees and 82.94% of workers receiving health and safety training in FY26. The workforce is predominantly male, with females constituting just 0.21% of permanent employees and 0.39% of workers.

Safety records improved, with zero lost-time injuries reported for both employees and workers in FY26. In contrast, FY25 recorded 21 recordable work-related injuries among workers. Union membership among permanent workers decreased to 43.31% from 50.93% in the prior year.

What the Numbers Show

A notable divergence exists between energy consumption and greenhouse gas emissions. While total energy consumption dropped by approximately 17% year-on-year, Scope 1 emissions increased by nearly 38%. This suggests that the reduction in energy use was primarily achieved through efficiency gains in electricity and non-carbon-intensive fuel sources, while operational intensity or feedstock composition in carbon-heavy processes may have shifted. Additionally, waste recovery operations expanded substantially, with recycled and reused waste jumping to 5,15,634.00 MT from 96,228.00 MT, indicating a stronger push toward circular economy practices despite lower overall waste generation.

Bannari Amman Sugars Limited has received a show cause notice from the Office of the Deputy Commissioner of Commercial Taxes (Audit)-3, Mysuru, regarding alleged discrepancies in Input Tax Credit (ITC) claims for the fiscal year 2020-21.

The notice, dated August 18, 2026, cites an alleged excess availment of ITC as reported in Form GSTR-9 compared to the ITC reflected in relevant GST records. The Department of Commercial Taxes, Government of Karnataka, has proposed a total financial demand of ₹29,75,98,313 against the company.

Breakdown of Proposed Liability

The show cause notice details the proposed charges as follows:

The interest component is subject to computation up to the date of payment, as applicable under prevailing regulations.

Company Response and Status

Bannari Amman Sugars stated that it had submitted detailed replies to the GST authorities prior to the issuance of the notice, explaining the nature of the ITC and providing reconciliation data. The company is currently examining the notice in detail and intends to submit an appropriate reply within the prescribed timeframe.

The company plans to defend the proceedings and contest the proposed tax, interest, and penalty. It disclosed that no final adjudication or order has been passed yet and does not anticipate any material impact on its operations at this stage.

What the Numbers Show

The penalty proposed by the authority is equal to the tax amount (₹10.14 crore each), indicating a standard 100% penalty structure often applied in cases of alleged ITC mismatch without sufficient justification. The interest component (₹9.48 crore) constitutes approximately 32% of the total proposed liability, highlighting the significant time-value cost associated with the disputed period of FY21.