KMS Medisurgi Limited held its 28th Annual General Meeting on September 30, 2026, where shareholders approved the audited financial statements for the fiscal year ended March 31, 2026, along with the declaration of dividend.

The meeting, chaired by Siddharth Gaurang Kanakia, commenced at 3:00 pm and concluded at 3:40 pm at the company's registered office in Mumbai. Seventeen shareholders were present either in person or through authorized representatives, ensuring the requisite quorum was met. The proceedings included the adoption of the Board's report and the audited accounts for FY26.

Key resolutions passed

The following items of ordinary business were put to vote and approved by the members:

1. Adoption of the audited financial statements for the financial year 2025-2026.
2. Declaration of dividend for FY26.
3. Re-appointment of Rohan Devang Kanakia as a Director liable to retire by rotation.

Voting and attendance details

The company facilitated remote e-voting through KfinTech from September 27, 2026, to September 29, 2026. Members who did not vote electronically cast their votes via ballot paper at the venue. Naveen Karn, a practicing company secretary, served as the scrutinizer for the voting process.

The Chairman thanked the members for their participation and constructive suggestions. The detailed proceedings were disseminated to the stock exchanges and made available on the company's website within 24 hours of the meeting's conclusion.

KMS Medisurgi reported a ₹24.55 lakh profit after tax (PAT) for FY26, down from ₹43.98 lakh in the previous year. The decline followed a 12.42% drop in revenue to ₹1,220.85 lakh, as the medical device manufacturer navigated softer sales volumes.

The Board of Directors recommended a final dividend of ₹0.05 (0.5%) per equity share for approval at the upcoming Annual General Meeting (AGM). The payout represents a continuation of the company’s dividend policy despite the contraction in earnings.

Financial Performance

Revenue from operations fell to ₹1,220.85 lakh in FY26 compared to ₹1,393.86 lakh in FY25. Total expenses decreased proportionally to ₹1,188.84 lakh from ₹1,335.71 lakh.

Cost of materials consumed stood at ₹882.19 lakh, down from ₹1,054.78 lakh. Employee benefit expenses rose to ₹130.45 lakh from ₹119.71 lakh, while depreciation increased significantly to ₹47.13 lakh from ₹26.57 lakh, reflecting recent capital expenditures.

Balance Sheet and Cash Flow

As of March 31, 2026, total assets stood at ₹1,054.80 lakh. Inventories remained stable at ₹253.80 lakh, while trade receivables declined sharply to ₹322.22 lakh from ₹424.11 lakh, indicating improved collection efficiency. Cash and cash equivalents nearly doubled to ₹110.47 lakh from ₹46.73 lakh.

Long-term borrowings decreased to ₹77.34 lakh from ₹91.28 lakh, primarily due to repayments of unsecured loans from directors and related parties. The debt-to-equity ratio improved to 0.09 from 0.11.

Auditor Qualifications

Statutory auditors H.H. Dedhia & Associates issued a qualified opinion on the financial statements. The qualification stems from two key issues:

• The company uses LIC group gratuity reports for post-employment benefits instead of an actuarial valuation, departing from AS-15.
• Quantitative stock records were only recently implemented for material items, preventing the auditors from commenting on stock movement and closing stock value of ₹253.80 lakh.

AGM Details

The 28th AGM is scheduled for September 30, 2026, at the registered office in Mumbai. Key agenda items include:

• Adoption of standalone financial statements for FY26.
• Approval of the final dividend of ₹0.05 per share.
• Reappointment of Mr. Rohan Devang Kanakia as a director retiring by rotation.

Remote e-voting will be available via KfinTech from September 27 to September 29, 2026. The register of members will remain closed from September 24 to September 30, 2026.

What the Numbers Show

The divergence between declining revenue and rising employee costs highlights margin pressure. While cost of materials fell in line with sales, employee benefit expenses grew by 9% despite lower turnover. Additionally, depreciation costs surged by 77% due to capital additions of ₹172.00 lakh in plant and machinery, suggesting the company is investing in capacity expansion even as current demand softens.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE870V01014/e86f75ea-c1c8-4565-8e4a-a94b38255bb0.pdf