Southern Magnesium and Chemicals Limited (SMCL), a Hyderabad-based company engaged in magnesium manufacturing, has disclosed key decisions taken during its Board of Directors meeting held on August 7, 2025. The meeting addressed the approval of unaudited financial results for the quarter ended June 30, 2025, the reappointment of key managerial personnel, and the announcement of the upcoming 39th Annual General Meeting (AGM).

The company has complied with all relevant provisions of Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by duly informing the BSE and its shareholders through corporate announcements.

Financial Results for Q1 FY26:

For the quarter ended June 30, 2025, SMCL posted total income of ₹21.70 lakh, with no exceptional items recorded. The company reported a net loss of ₹9.86 lakh, marking a notable downturn from the ₹177.80 lakh profit recorded in the same quarter of the previous year.

Key highlights from the financials include:

• Total Expenses stood at ₹45.63 lakh.

• Loss before tax amounted to ₹13.18 lakh.

• Basic and Diluted EPS was reported at ₹(0.33) for the quarter.

The financial statements were prepared in compliance with Indian Accounting Standard (Ind AS) 34 – Interim Financial Reporting, under Section 133 of the Companies Act, 2013. The Independent Auditor's Review Report, issued by Brahmawa & Co., expressed no material misstatements, confirming compliance with SEBI regulations and accounting norms.

Reappointment of Key Directors:

The Board of Directors also approved the reappointment of two senior executives, subject to shareholder approval in the upcoming AGM.

• Mr. N Ravi Prasad (DIN: 00319537) was reappointed as Managing Director & Chief Executive Officer for a 3-year term from November 13, 2025, to November 12, 2028. Mr. Ravi Prasad holds degrees in B.E., M.B.A., and M.S., with over three decades of experience, and is a promoter of the company.

• Mr. N Rajender Prasad (DIN: 00145659) was reappointed as Joint Managing Director and Chief Financial Officer, also for a 3-year term, commencing August 10, 2025, to August 9, 2028. A Chemical Engineer by qualification, he too holds a master’s degree and brings over two decades of industry experience.

It is important to note that both appointees are promoter directors and siblings, maintaining continuity in leadership. Neither of them is debarred by SEBI or any statutory authority, which affirms their eligibility under SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11.11.2024.

Annual General Meeting and Book Closure:

The Board has scheduled the 39th AGM for September 29, 2025, which will be conducted through video conferencing (VC) / other audio-visual means (OAVM) to facilitate shareholder participation across locations. In view of this meeting, the book closure has been announced from September 23 to September 29, 2025 (both days inclusive) to determine shareholder eligibility for voting and other entitlements.

The Board also approved the notice of the AGM along with the Directors' Report, ensuring regulatory compliance and transparency in shareholder communications.

Regulatory Disclosures:

The company made the following mandatory disclosures under Regulation 30 of SEBI LODR:

• The reappointments of both MD and JMD were recommended by the Nomination and Remuneration Committee, and in the case of Mr. Rajender Prasad, also endorsed by the Audit Committee.

• The reappointments are subject to shareholder approval during the AGM.

• SMCL continues to adhere to its insider trading policy, and its financial reporting follows Ind AS compliance guidelines.

Conclusion:

The Board meeting on August 7, 2025, reflects Southern Magnesium’s commitment to corporate governance, continuity in leadership, and timely financial disclosures. The reappointment of experienced promoter directors signifies a strategic move to maintain business stability, while the AGM arrangements demonstrate the company's adaptability to digital formats for stakeholder engagement.

Investors and stakeholders are encouraged to review the financial statements, attend the upcoming AGM through the virtual mode, and participate in the company’s future journey with informed decision-making.

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