Avadh Sugar & Energy Limited has initiated a postal ballot to seek shareholder approval for the appointment of Mr. Chandra Shekhar Nopany as Managing Director, designated as Co-Chairperson, for a five-year term starting September 1, 2025. This move marks a significant shift in the company's leadership structure, as Mr. Nopany transitions from his current role as a Non-Executive Director to a more hands-on executive position.

Key Details of the Proposed Appointment

• Term: Five years, from September 1, 2025, to August 31, 2030
• Remuneration:
  • Monthly salary of Rs. 25.00 lakh
  • Commission of 5% on net profits, subject to statutory limits
  • Additional benefits including furnished accommodation, medical reimbursements, and other perquisites

About Chandra Shekhar Nopany

Mr. Nopany, 59, brings a wealth of experience to the role:

• Qualifications: Chartered Accountant and M.S. in Industrial Administration from Carnegie Mellon University, USA
• Experience: Extensive industrial experience across sugar, tea, shipping, textiles, and fertilizers sectors
• Current Role: Non-Executive Director since July 2016
• Other Directorships: Holds board positions in eight other public companies, including Chambal Fertilisers and Chemicals Limited and Sutlej Textiles and Industries Limited

Voting Process

• E-voting Period: August 14, 2025, to September 12, 2025
• Eligibility: Shareholders on record as of August 8, 2025
• Method: Electronic voting only, facilitated by National Securities Depository Limited (NSDL)

Corporate Governance Implications

The proposed appointment requires approval through a special resolution. If approved, Mr. Nopany will not be liable to retire by rotation, ensuring leadership continuity for the stipulated five-year term.

Industry Context

This leadership change comes at a time when the sugar industry faces various challenges and opportunities. Mr. Nopany's extensive experience in the sector could prove valuable in navigating the company through evolving market dynamics.

Shareholders are encouraged to review the detailed postal ballot notice and cast their votes before the deadline. The outcome of this resolution could significantly impact Avadh Sugar & Energy's strategic direction in the coming years.

Avadh Sugar & Energy Limited reported a net loss of ₹841.38 lakhs for the quarter ended June 30, compared to a net profit of ₹868.80 lakhs in the corresponding quarter of the previous year. Revenue from operations increased to ₹71,660.81 lakhs from ₹70,799.03 lakhs year-over-year.

Financial Performance

The company's financial results reveal a challenging quarter:

• Revenue increased slightly to ₹7,166.08 crores from ₹7,079.90 crores in the same period last year.
• EBITDA declined significantly to ₹28.20 crores compared to ₹57.30 crores year-over-year.
• The EBITDA margin compressed to 3.90% from 8.10% in the previous year's corresponding quarter.
• Total income stood at ₹7,166.08 crores, compared to ₹7,079.90 crores in the corresponding quarter of the previous year.
• Expenses increased to ₹7,300.00 crores from ₹6,950.00 crores year-on-year.
• The company reported a loss before tax of ₹12.60 crores, in contrast to a profit before tax of ₹13.52 crores in the same quarter of the previous fiscal year.

Segment-wise Performance

Avadh Sugar & Energy's segment-wise revenue for the quarter is as follows:

The sugar segment remained the primary revenue generator, while the distillery segment also showed significant contribution.

Board Decisions

In addition to the financial results, the Board of Directors made two significant appointments:

1. New Managing Director: Mr. Chandra Shekhar Nopany has been appointed as the Managing Director and Co-Chairperson of the company. His term is for five years, effective from September 1, subject to shareholder approval.

2. Senior Management Addition: Mr. Pankaj Goenka has been appointed as a Senior Management Personnel with immediate effect.

Industry Context

It's worth noting that the sugar industry is seasonal, with crushing typically occurring between November and May, while sales are distributed throughout the year. This cyclical nature can lead to variations in quarterly performance.

The company's performance this quarter reflects the challenges faced by the sugar industry, including potential factors such as fluctuating sugar prices, changes in government policies, or broader economic conditions affecting the sector.

As Avadh Sugar & Energy navigates through these challenges, the new leadership appointments may bring fresh perspectives to steer the company towards improved performance in the coming quarters.