Kesoram Industries Limited has submitted its Business Responsibility and Sustainability Report for the financial year ended March 31, 2026, to the stock exchanges. The filing, made in compliance with Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the company's performance on environmental, social, and governance parameters on a standalone basis.

The report specifies that the disclosures cover the company's corporate office, as there are no manufacturing operations on a standalone basis. Consequently, information related to manufacturing, workers, and associated compliances has not been provided. The company's paid-up capital stands at ₹ 310.66 Crore, and it has a net worth of ₹ 34505.35 Lakhs.

Corporate Structure and Governance

Kesoram Industries has identified two key entities within its corporate structure: Cygnat Industries Limited, a wholly owned subsidiary, and Gondkhari Coal Mining Ltd, a joint venture where the company holds a 45.46% stake. Both entities participate in the business responsibility initiatives of the listed entity. The highest authority responsible for implementing and overseeing the Business Responsibility policy is P. Radhakrishnan, Whole-time Director and Chief Executive Officer.

The Board of Directors comprises six members, with a 50% representation of women. Similarly, 50% of the Key Management Personnel are women. The company reported that it has not incurred any fines, penalties, or settlement amounts during the financial year.

Employee and Workforce Statistics

The company reported a total of 19 employees at the end of the financial year, comprising 11 permanent and 8 other than permanent employees. There were no workers on the rolls. The workforce is predominantly male, with 17 male employees (89.47%) and 2 female employees (10.53%). No differently abled employees or workers were employed during the year.

The company provided 100% coverage for health insurance to all employees. All employees underwent training on health and safety measures as well as skill upgradation. The median remuneration for male employees other than the Board of Directors and Key Managerial Personnel was ₹ 4,92,168, while for female employees in the same category, it was ₹ 43,475.

Financial and Operational Disclosures

The report indicates that the company had no turnover, exports, or sourcing activities on a standalone basis. Consequently, metrics related to energy consumption, water withdrawal, greenhouse gas emissions, and waste generation were all reported as zero. The company stated that it is compliant with applicable environmental laws and regulations.

Employee and Workforce Details

Subsidiary and Associate Companies

Kesoram Industries Limited reported a consolidated loss of ₹8,813.24 lakhs for the financial year ended March 31, 2026, a significant decline from the profit of ₹5,43,151.51 lakhs recorded in the previous year. The company’s standalone financial statements reflected a loss of ₹20,686.58 lakhs, driven largely by exceptional items and challenging business conditions at its wholly-owned subsidiary, Cygnet Industries Limited.

The company’s consolidated revenue from operations for the year stood at ₹30,333.63 lakhs. The standalone income, comprising interest and other miscellaneous income, was ₹5,073.19 lakhs. The consolidated performance remained under pressure primarily due to the losses incurred by Cygnet Industries, which operates the Rayon, Transparent Paper, and Chemicals businesses.

Financial Performance

The following table summarizes the key financial metrics for the year:

The exceptional items for the year amounted to ₹24,215.49 lakhs. These included a provision for impairment of investments and loans in Cygnet Industries Limited amounting to ₹15,619.32 lakhs, a provision of ₹4,172.11 lakhs for the re-measurement of factory land at the Kesoram Spun Pipes and Foundries unit, and a waiver of accumulated interest of ₹4,424.06 lakhs on loans given to the subsidiary.

Operational Review

Post the demerger of its cement business, Kesoram Industries operates as a holding company with its performance dependent on Cygnet Industries Limited. The subsidiary faced challenging business conditions during the year, resulting in losses. Cygnet Industries reported a total income of ₹25,269.48 lakhs and a loss of ₹3,745.98 lakhs for the year, compared to an income of ₹27,061.76 lakhs and a loss of ₹5,637.69 lakhs in the previous year.

Strategic Developments

A significant development during the year was the announcement of an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Certain members of the Promoter and Promoter Group entered into a Share Purchase Agreement with Frontier Warehousing Limited for the transfer of equity shares. Subject to the completion of the regulatory process, the company is expected to undergo a change in control and management.

Corporate Governance

The company’s Board of Directors has upheld high standards of corporate governance and regulatory compliance. The statutory auditors, Walker Chandiok & Co. LLP, issued an unqualified report, stating that the financial statements give a true and fair view of the company's state of affairs. The company has also complied with all applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

No dividend has been proposed for the year in view of the loss and the non-availability of any carry forward surplus.