In compliance with Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended we are herewith submitting the Annual Report for the financial year ....

SOUTHERN MAGNESIUM AND CHEMICALS LIMITED Deccan Chambers, 5th Floor, 6-3-666/B, Somajiguda, Hyderabad - 500 082 Phones: 23311789, 23312341, Fax: 040-23319871 E-Mail: southernmagnesium@gmail.com CIN : L27109TG1985PLC005303 Date: 03.09.2026 Place: Hyderabad BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 BSE Scrip Code: 513498 Dear Sir/Madam, Sub: Compliance with Regulation 30 and Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015. In accordance with Regulation 30 and Regulation 34 (1) of SEBI (Listing Obligation and Disclosure Requirements) Regulation 2015 and Section 96 of the Companies Act, 2013 and other applicable provisions of Companies Act, 2013, we hereby inform you that the Fortieth Annual General Meeting of the Company will be held on Wednesday, September 30, 2026 at 11.30 A.M. IST through Video Conferencing/ Other Audio Visual Means (“VC/OAVM”) in compliance with Circulars issued by Ministry of Corporate Affairs and Securities and Exchange Board of India. Further we would like to inform you that pursuant to provision of Section 108 of the Act read with Rule 20 of the Companies (Management and Administration) Rules, 2014 and Regulation 44 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company is providing e-voting facility to its shareholders to exercise the right to vote at the AGM. The remote e-voting will commence on Sunday, 27th September, 2026 at 09.00 A.M. and will end on Tuesday, 29th September, 2026 at 05.00 P.M. The facility of e-voting will also be available during the AGM and those members present in the AGM through VC/OAVM facility, who have not cast their votes on resolutions through remote e-voting and / or otherwise not barred from doing so shall be eligible to vote through the e-voting system at AGM. The members who cast their votes by remote e-voting prior to AGM may also attend the meeting but shall not be entitled to cast their vote again. The cut-off date for the purpose of determining the members eligible for voting is fixed as 23rd September, 2026. We enclose herewith the Annual Report for the financial year 2025-26 along with Notice of 40th Annual General Meeting. For SOUTHERN MAGNESIUM AND CHEMICALS LIMITED Pasupulati Manisha Company Secretary and Compliance Officer M. No: A72576 Encl: as above SOUTHERN MAGNESIUM AND CHEMICALS LIMITED (CIN NO. L27109TG1985PLC005303) 40th ANNUAL REPORT 2025-2026 SOUTHERN MAGNESIUM AND CHEMICALS LIMITED CORPORATE INFORMATION BOARD OF DIRECTORS & KMP : Mr. N. RAVI PRASAD Managing Director and CEO, till 23.10.2025 Mr. N. RAJENDER PRASAD Managing Director and CFO, (JMD, till 11.11.2025) Mr. RAMAKRISHNA MARAM APIDC Nominee Director Mrs. URMI N PRASAD Non Executive Director Mr. N. PURNACHANDRA RAO Independent Director Mr. K. VENKATA NARAYANA REDDY Independent Director COMPANY SECRETARY : Ms. PASUPULATI MANISHA REGISTERED OFFICE : Deccan Chambers, 5th Floor, 6-3-666/B, Somajiguda, Hyderabad - 500 082. Ph : 040-23311789, Fax No. : 040-23319871 AUDITORS : Brahmayya & Co. Chartered Accountants, Hyderabad. INTERNAL AUDITORS : K.S.Rao & Co. Charctered Accountants, Hyderabad. SECRETARIAL AUDITORS : D. Hanumanta Raju & Co, Company Secretaries, Hyderabad. BANKERS : Union Bank of India, Somajiguda, Hyderabad WORKS : Gowripatnam, West Godavari District LISTED AT : BSE Limited REGISTRAR & Aarthi Consultants Private Limited SHARE TRANSFER AGENTS : 1-2-285, Doamalguda, Hyderabad - 500029 Ph. Nos. 040-27638111 / 27634445 Email : info@aarthiconsultants.com CONTENTS 1. Notice of Annual General Meeting 2 2. Director’s Report 14 3. Management’s Discussion and Analysis 27 4. Auditor’s Report 29 5. Annexure `A’ to Auditor’s Report 33 6. Balance Sheet 38 7. Profit and Loss Account 39 8. Cash Flow Statement 40 9. Notes to Accounts 47 SOUTHERN MAGNESIUM AND CHEMICALS LIMITED NOTICE NOTICE IS HEREBY GIVEN THAT THE 40TH ANNUAL GENERAL MEETING OF THE MEMBERS OF SOUTHERN MAGNESIUM AND CHEMICALS LIMITED WILL BE HELD ON WEDNESDAY, 30TH SEPTEMBER, 2026 AT 11.30 A.M. THROUGH VIDEO CONFERENCING (“VC”) / OTHER AUDIO VISUAL MEANS (“OAVM”) TO TRANSACT THE FOLLOWING ITEMS OF BUSINESS: ORDINARY BUSINESS: 1. To receive, consider and adopt the Audited Financial Statements of the Company including Balance Sheet as at 31st March 2026, Statement of Profit & Loss for the year and Cash Flow Statement for the year ended on that date together with the Schedules and Notes attached thereto, along with the Reports of Auditors and Directors thereon. 2. To appoint a Director in place of Mr. Nuthakki Rajender Prasad (DIN: 00145659), who retires by rotation in terms of Section 152(6) of the Companies Act, 2013 and being eligible, offers himself for re-appointment SPECIAL BUSINESS: 3. Change in designation of Mr. Nuthakki Rajender Prasad (DIN: 00145659) from Joint Managing Director & CFO to Managing Director and CFO To consider and, if thought fit, to pass with or without modifications(s), the following Resolution, as Special Resolution: “RESOLVED THAT in partial modification of earlier resolution passed by the shareholders at the 39th Annual General Meeting of the Company held on September 29, 2025 and pursuant to all other applicable provision of the Companies Act, 2013, read with the Companies (Appointment and Qualifications of Directors) Rules, 2014 and applicable provisions of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (including any statutory modification(s) or enactment thereof for the time being in force) (the “Act”) and on the recommendation of nomination and remuneration committee and the Board, the approval of the members be and is hereby accorded to ratify the re-designation of Mr. Nuthakki Rajender Prasad (DIN: 00145659) as Managing Director and CFO of the Company w.e.f 12.11.2025 for the remaining period of his tenure i.e. up to August 09, 2028. RESOLVED FURTHER THAT except for the change in designation mentioned above, all other terms and conditions of his appointment as approved by the shareholders at their 39th Annual General Meeting on September 29, 2025 shall remain unchanged. RESOLVED FURTHER THAT the Directors of the Company and Company Secretary, be and are hereby severally authorized to do all such acts, matters, deeds, things necessary or desirable in connection with or incidental to giving effect to the above resolution, including but not limited to filing the prescribed forms, returns, documents, applications and deeds with all statutory and regulatory authorities including intimation to the relevant Stock Exchange in respect of this change in designation, and to comply with all other requirements in this regard. For and on Behalf of the Board of Directors of Southern Magnesium and Chemicals Limited Sd/- Place: Hyderabad N. Rajender Prasad Date:07.08.2026 Managing Director & CFO (DIN: 00145659) SOUTHERN MAGNESIUM AND CHEMICALS LIMITED NOTES: 1. The Ministry of Corporate Affairs (“MCA”) vide General Circular No. 14/2020 dated 08.04.2020, General Circular No. 17/2020 dated 13.04.2020, General Circular No. 22/2020 dated 15.06.2020, General Circular No. 33/2020 dated 28.09.2020, General Circular No. 39/2020 dated 31.12.2020, General Circular No. 10/2021 dated 23.06.2021, General Circular No. 20/2021 dated 08.12.2021, General Circular No. 02/2022 dated 05.05.2022 General Circular No. 10/2022 dated 28.12.2022, General Circular No. 09/2023 dated 25.09.2023, General Circular No. 09/2024 dated 19.09.2024 and General Circular No. 03/2025 dated 22.09.2025 read with Circular nos. SEBI/HO/CFD/CMD1/ CIR/P/2020/79, SEBI/HO/CFD/CMD2/CIR/P/2021/11, SEBI/HO/CFD/CMD2/CIR/P/2022/62, SEBI/HO/ CFD/PoD-2/P/CIR/2023/4, SEBI/HO/CFD/CFD-PoD-2/P/CIR/2023/167 and SEBI/HO/CFD/CFD-PoD- 2/P/CIR/2024/133 dated May 12, 2020, January 15, 2021, May 13, 2022, January 5, 2023, October 7, 2023 and October 3, 2024 issued by the Securities and Exchange Board of India (hereinafter collectively referred to as “the Circulars”) com [Showing first 8,000 characters — download PDF for full document]