Uttam Sugar Mills filed its Business Responsibility and Sustainability Report (BRSR) for FY26 with the National Stock Exchange of India Ltd and BSE Limited on August 24, 2026. The disclosure covers environmental performance, employee welfare, and governance metrics.

The company operates four plants across Uttar Pradesh and Uttarakhand. Its business activities account for 73.92% turnover from sugar production, 23.36% from distillery and allied products, and 2.72% from power generation. Exports contributed nil percentage to total turnover during the period.

Environmental Performance

Uttam Sugar Mills reported total energy consumption of 606,943.86 GJ in FY26, down from 704,377.49 GJ in FY25. All energy was sourced from renewable sources, primarily bagasse and slop. Total water withdrawal increased to 463,954 kilolitres from 393,528 kilolitres in the prior year, entirely sourced from groundwater.

The company implemented Zero Liquid Discharge (ZLD) processes at all distilleries. Total waste generated fell to 803.40 metric tonnes from 1,031.43 metric tonnes in FY25. Of this, 364 metric tonnes were recycled.

Social Metrics

As of March 31, 2026, the company employed 504 permanent employees and 2,693 workers. Female representation among permanent employees stood at 2.38%. The permanent employee turnover rate declined to 6.66% in FY26 from 8.17% in FY25. Training coverage reached 88.31% of employees and 82.45% of workers.

Governance and Compliance

The report highlights no monetary or non-monetary penalties paid to regulators during FY26. Related-party purchases constituted 2.19% of total purchases, up from 0.25% in FY25. Sales to related parties were 0.64% of total sales. The company maintains a Code of Conduct and Whistle Blower Policy but does not have a dedicated anti-corruption policy or ESG committee.

What the Numbers Show

A notable divergence exists between water withdrawal trends and operational claims. While the company states it operates with "zero ground water extraction" at sugar units, total groundwater withdrawal rose by approximately 18% year-on-year to 463,954 kilolitres. This suggests increased reliance on groundwater sources, potentially linked to distillery operations or other non-sugar manufacturing processes not covered by the zero-extraction claim.

Uttam Sugar Mills has scheduled its 31st Annual General Meeting for September 18, 2026. The meeting will address the adoption of FY26 financials, director re-appointments, and a proposed final dividend of ₹2.50 per equity share.

AGM Agenda and Key Resolutions

The Board approved the 25% final dividend on May 15, 2026. Shareholders must approve this payout at the AGM. The record date for eligibility is September 11, 2026. Payout is scheduled on or before October 17, 2026.

Key resolutions include:

Capital Structure and Borrowing Powers

Shareholders will vote on special resolutions to enhance borrowing and security creation limits:

• Security Creation: Consent under Section 180(1)(a) to create charges/mortgages up to ₹1,750 crore.
• Borrowing Limit: Consent under Section 180(1)(c) to borrow up to ₹2,000 crore, exceeding paid-up capital and free reserves if necessary.

These limits supersede previous approvals from 2014 and aim to align with current legal frameworks under the Companies Act, 2013.

Dividend Timeline and Eligibility

The company holds its 31st Annual General Meeting on September 18, 2026. Shareholders whose names appear in the register as of the record date, September 11, 2026, are eligible for the dividend.

Key dates for the dividend process include:

Once declared, the company will distribute dividends via Reserve Bank-approved electronic modes within 30 days.

Tax Deduction at Source (TDS) Guidelines

Dividend income is taxable under the Income Tax Act, 2025. Uttam Sugar Mills will deduct tax at source (TDS) at prescribed rates during payment. Shareholders must submit necessary tax documents by September 11, 2026, to avail applicable exemptions or lower rates.

Resident Shareholders

For resident individuals with a valid PAN, TDS is deducted at 10%. If PAN is not linked with Aadhaar or is invalid, the rate rises to 20%. No tax is deducted if:

• Total dividend received in Tax Year 2026-27 does not exceed ₹10,000.
• The shareholder submits Form 121 meeting all eligibility conditions.
• An exemption certificate is issued by the Income-tax Department.

Other resident entities, such as insurance companies, mutual funds, and AIFs, may claim nil TDS by providing specific self-declarations and registration certificates.

Non-Resident Shareholders

Non-resident shareholders face a withholding tax of 20% plus applicable surcharge and cess under domestic law. However, they can opt for beneficial rates under Double Tax Avoidance Agreements (DTAA). To claim DTAA benefits, shareholders must submit:

• Self-attested PAN card.
• Valid Tax Residency Certificate (TRC).
• Form 41 filed online.
• Self-declaration of treaty eligibility and beneficial ownership.

Foreign Portfolio Investors must also provide SEBI registration certificates. The company reserves the right to reject incomplete documentation.

Action Required from Shareholders

Shareholders must ensure their bank account details are updated with Depository Participants or the RTA to facilitate electronic dividend credit. Physical mode holders should update email addresses with the company or RTA to receive communications.

Documents such as Form 121 and Form 41 must be uploaded via the RTA portal by September 11, 2026. Any submissions received after this date will not be considered. Failure to link PAN with Aadhaar will result in higher TDS deductions.