Bannari Amman Sugars has scheduled its 42nd Annual General Meeting for September 23, 2026. The meeting will be conducted through Video Conferencing or Other Audio Visual Means to transact ordinary and special business items.

The company will seek shareholder approval for the audited financial statements for the financial year ended March 31, 2026. Additionally, members will vote on the declaration of equity share dividends and the re-appointment of Managing Director B Saravanan, who retires by rotation.

Special Resolutions and Governance

Shareholders will consider a special resolution to alter the Object Clauses of the Memorandum of Association. This change aligns the company’s charter with the Companies Act, 2013, removing the obsolete "Other Objects" clause. The Board also seeks ratification of remuneration for Cost Auditor Sri M Nagarajan.

Voting and Logistics

Remote e-voting will be available from September 19 to September 22, 2026. The cut-off date for dividend payment and voting reckoning is September 16, 2026. Central Depository Services (India) Limited has been engaged to facilitate the e-voting process.

Members holding shares in physical form are reminded to update their KYC details with the Registrar and Transfer Agent to ensure smooth processing of dividend payments and service requests.

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.