Barak Valley Cements Limited has entered into a Memorandum of Understanding (MoU) with LKC Industries and Infra Private Limited to secure an inter-corporate loan of up to Rs 2.65 crore. The funds are earmarked exclusively for meeting operational expenses, working capital requirements, and other lawful business activities undertaken in the ordinary course of business. This financial arrangement is a related party transaction, as the promoters of both Barak Valley Cements and LKC Industries are the same, although the deal has been executed at arm's length.

The loan agreement was signed on May 30, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Preeti Bhatia, the Company Secretary and Compliance Officer of Barak Valley Cements, confirmed the execution of the MoU and the subsequent filing with the stock exchanges. The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited to update their records.

Key Details of the Agreement

The transaction involves an unsecured loan from M/s LKC Industries and Infra Private Limited. The total sanctioned amount under the agreement is Rs 2.65 crore. As per the disclosure, the total amount outstanding against this loan facility is Rs 2.50 crore. No security has been provided to the lender for this borrowing, and there are no special rights attached to the agreement, such as the right to appoint directors or restrict changes in capital structure.

Related Party Disclosures

The filing explicitly states that the transaction falls within the scope of related party transactions due to the common promoters of Barak Valley Cements and LKC Industries. However, the company has affirmed that the transaction was conducted at arm's length. There is no shareholding by Barak Valley Cements in LKC Industries, and no nominee has been appointed on the board of directors of the listed entity in connection with this agreement. The loan is intended to support the company's liquidity needs for its regular business operations.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE139I01011/746da8fbb2794edf.pdf

[Barak Valley Cements Limited](barak valley cements) reported a consolidated net profit of ₹29.37 lakh for the financial year ended March 31, 2026, a decline of 94% compared to ₹516.68 lakh in the previous year. The company's Board of Directors approved the audited standalone and consolidated financial results at a meeting held on May 27, 2026. The statutory auditors, P.K. Lakhani & Co., issued an unmodified opinion on the results. The company recognized an additional employee benefit obligation of ₹111.51 lakh during the year due to changes introduced by the Labour Codes notified by the Government of India. The audited financial results were published in newspapers on May 28, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

For the quarter ended March 31, 2026, the company reported a consolidated net profit of ₹145.27 lakh, a turnaround from the net loss of ₹230.67 lakh in the preceding quarter ended December 31, 2025. Total consolidated income for the quarter stood at ₹6,054.99 lakh, while total income for the full year FY26 was ₹21,364.36 lakh. The standalone net profit for FY26 was ₹299.36 lakh.

Board Approvals and Disclosures

The Board approved related party transactions for the year ended March 31, 2026, and provided omnibus approval for repetitive contracts for FY27. Authorizations were granted for investments and loans under Section 186 of the Companies Act, 2013, and for borrowings under Sections 179 and 180. The trading window for dealing in the company's securities, which was closed from April 1, 2026, will reopen 48 hours after the declaration of the audited financial results.