Shareholders meeting

K.M. Sugar Mills Limited Registered Office: 176, Eldeco Greens Gomti Nagar, Lucknow - 226010 (U.P.) Phone: 0522-4079561/2308772 Corporate Office and Works: Post Office Moti Nagar, District Faizabad-224 201 U.P. (India) Tel. No.: (05278) 254 059, 254 173, Fax No.: (05278) 254 031 Email : cs@kmsugar.in Website : www.kmsugar.com K.M. Sugar Mills Limited 53rd Annual Report 2025-26 moc.euqinummocavda.www Legacy meets Sustainability Rooted in Nature, Refining for the Future CONTENTS 1. Vision & Mission 2 2. Highlights 3 3. Our Visiting Card 4 4. Corporate Social Responsibility 6 5. Our Management 8 6. Company Information 11 7. Directors’ Report 12 8. Corporate Governance Report 22 9. Management Discussion & Analysis Report 44 Standalone Financial Statement 10. Auditors Report 58 11. Balance Sheet 66 12. Profit & Loss Account 67 13. Cash flow Statement 68 14. Statement of Change in Equity 70 15. Notes forming part of Financial Statement 71 Consolidated Financial Statement 16. Auditors Report 119 17. Balance Sheet 126 18. Profit & Loss account 127 19. Cash flow Statement 128 20. Statement of Change in Equity 130 21. Notes forming part of Financial Statement 131 Notice 180 Forward looking statement Statement in this report that describe the company's laws and regulations. The Company cautions that such objectives, projections, estimates, expectations or statements involve risk and uncertainty and that actual predications of the future may be 'forward looking results could differ materially from those expressed and statements' within the meaning of applicable securities implied. CCoorrppoorraattee OOvveerrvviieeww SSttaattuuttoorryy RReeppoorrttss FFiinnaanncciiaall SSttaatteemmeennttss SUSTAINABLE VALUE CREATION KM Sugar Mills exemplifies precision but also align KM Sugar sustainable value creation through Mills with global sustainability its evolution from a traditional benchmarks and the evolving sugar manufacturer into a expectations of stakeholders. diversified, integrated enterprise. Through investments in By efficiently utilizing sugarcane and digital transformation, smart responsibly converting byproducts manufacturing, and AI driven into valuable resources, the Company analytics, the Company seeks to has strengthened its operational optimize resource efficiency, reduce resilience while advancing circular environmental impact, and create economy principles and sustainable adaptive systems that respond to growth. dynamic market and regulatory Looking ahead, the Company landscapes. This forward looking is committed to embedding a strategy ensures that KM Sugar Mills futuristic approach that integrates remains a responsible industry innovation, automation, and leader, taking decisive steps together artificial intelligence into its with the global sector towards operations. These initiatives will inclusive, resilient, and sustainable not only enhance productivity and development. AAnnnnuuaall RReeppoorrtt 22002255--2266 || 11 VISION KM Sugar Mills is driven under the leadership of Shri Aditya Jhunjhunwala — to ensure that the Indian sugar industry stands at par with global standards while fostering comprehensive development across all stakeholders. The Company’s vision emphasizes raw material This vision is anchored in a commitment to security and the creation of better living economic progress, social responsibility, conditions for cane growers, recognizing and governance excellence (ESG). Through them as the backbone of sustainable growth. responsible practices, innovation, and By expanding into sugar, renewable energy, stakeholder engagement, the Company seeks and by product businesses, KM Sugar Mills to balance profitability with inclusivity, ensuring advances a model of harmonized living that growth translates into shared prosperity for between communities, society, and the nation. farmers, employees, shareholders, and society at large. MISSION Excellence in Encourage the Develop our Enhance innovation management and sugarcane farmers in administration and and research quality control of the area to have high management systems to increase sugarcane production, productivity and good continuously for the organization and sugar product and quality yields with the sustainability of profits cane growers’ all by product with principle, care and of the sugarcane farmer efficiency and maximum efficiency. responsible guidance and our businesses. competitiveness. for the farmers. 22 || KK.. MM.. SSuuggaarr MMiillllss LLiimmiitteedd Corporate Overview Statutory Reports Financial Statements PROFIT BEFORE TAX EBIDTA (Rs/lacs) 5483457552657166590165838 Annual Report 2025-26 | 3 2202-1202 3202-2202 4202-3202 5202-4202 6202-5202 Corporate Overview Statutory Reports Financial Statements GROSS REVENUE (Rs/lacs) Annual Report 2025-26 | 3 2202-1202 3202-2202 4202-3202 5202-4202 5593 3133 3911 4898 7256 6202-5202 2202-1202 3202-2202 4202-3202 5202-4202 6202-5202 HIGHLIGHTS 8290 6106 7824 8905 10627 OUR VISITING CARD Parentage K.M. Sugar Mills traces its origins to 1942, when it was established as a partnership firm, Kamlapat Motilal, in Kanpur by the Jhunjhunwala and Singhania families. Beginning with a modest sugar milling operation, the firm laid the foundation for a legacy of value creation in the agro- industrial sector. Between 1949 and 1950, the manufacturing facility was relocated to its present site in Faizabad, positioning the business for future growth and deeper engagement with the agricultural ecosystem. In 1971, the partnership was reconstituted as K.M. Sugar Mills (Pvt.) Ltd., a private limited company registered with the Registrar of Companies, Uttar Pradesh, Kanpur, marking an important milestone in its journey towards becoming an integrated and sustainable sugar enterprise. Promoters Presence In 1971, Mr. L.K. Jhunjhunwala took charge K.M. Sugar Mills Ltd. is listed on both the as Managing Director with the vision of National Stock Exchange and the Bombay building one of India’s most respected sugar Stock Exchange. As of 31st March 2026, companies. Guided by this ambition, K.M. the Company’s market capitalisation Sugar Mills Ltd. has grown into a sustainable, stood at ₹2,430 million on the NSE and multi-product enterprise, manufacturing ₹2,460 million on the BSE, reflecting its sugar, ethanol, and co-generated power. valuation at the close of the financial year 44 || KK.. MM.. SSuuggaarr MMiillllss LLiimmiitteedd CCoorrppoorraattee OOvveerrvviieeww SSttaattuuttoorryy RReeppoorrttss FFiinnaanncciiaall SSttaatteemmeennttss Products The Company’s core product portfolio includes: Sugar Ethanol & Power White crystal sugar and Related Products Generated through raw sugar for domestic bagasse-based Produced through its and export markets co-generation distillery operations Plants The Company’s manufacturing facilities are located in District Ayodhya, Uttar Pradesh. Sugar Division With a crushing capacity of 9,500 tonnes of sugarcane per day, the Sugar Division produces high-quality white crystal sugar and raw sugar for both domestic consumption and export. Distillery Division Established in 1995, the Distillery Division began with capacities of 45 KLPD for Rectified Spirit and 20 KLPD for Extra Neutral Alcohol. Over time, production capabilities expanded: 2003 – Ethanol 2004 – ENA plant converted 2020 – Ethanol capacity production to produce Ethanol, taking increased to 50 KLPD commenced at 30 KLPD capacity to 45 KLPD The division currently manufactures: n Rectified Spirit n Ethanol n Other related byproducts Power Division The Company operates a 25 MW bagasse-based co-generation power plant at Motinagar, Ayodhya, Uttar Pradesh. Power generated is supplied to Uttar Pradesh Power Corporation Limited (UPPCL). AAnnnnuuaall RReeppoorrtt 22002255--2266 || 55 CORPORATE SOCIAL RESPONSIBILITY Approved on 30 October 2015 and reviewed stewardship, the Company strives to foster annually by the Board of Directors, the CSR equitable opportunities and improve qualit [Showing first 8,000 characters — download PDF for full document]