| Textual Information(1) |
Notes to the unaudited financial results for the quarter ended June 30, 2026: 1. The Company has accumulated losses resulting in negative net worth as of June 30, 2026. Further, the manufacturing facilities and operations of the Company have remained non-operational for a prolonged period and the Company has defaulted in repayment of certain borrowings and settlement obligations during the year. However, the standalone financial statements for the quarter ended June 30, 2026 have been prepared on a going concern basis considering the revival and recommencement plans initiated by the management for restoration of production capabilities, improvement of operational and financial performance and ensuring the Company’s ability to meet its obligations and sustain its business activities in the foreseeable future. 2. Pursuant to withdrawal of CIRP proceedings, the Company entered into a Master Restructuring Agreement (“MRA”) dated May 24, 2024 with India Debt Resolution Company Limited (“IDRCL”), acting as trustee on behalf of National Asset Reconstruction Company Limited (“NARCL”), for restructuring of the outstanding borrowings of the Company. Under the terms of the MRA, unsustainable debt amounting to INR 33,465 Lakhs was disclosed as contingent liability. Since the previous financial year, the Company committed multiple breaches of repayment obligations and financial covenants stipulated under the MRA, including non-payment of instalments falling due under the agreed repayment schedule. Consequently, IDRCL, through its legal counsel, issued a Default Notice dated February 07, 2026 granting time for one month to cure the subsisting Events of Default. However, the Company could not remedy the defaults within the stipulated timeline. The company has also made a subsequent default on the said liability on 30th June 2026. Accordingly, in terms of the MRA, the restructuring arrangement stands cancelled and the concessions, waivers and reliefs granted thereunder stand withdrawn. Consequently, the original outstanding dues including unsustainable debt amounting to INR 33,465 Lakhs have become payable by the Company. However, the aforesaid unsustainable debt continues to be disclosed as contingent liability in the financial statements based on ongoing discussions and negotiations with the lenders and management’s assessment regarding the proposed restructuring and funding arrangements. The Company has not reclassified the borrowings as current liabilities as the lender has not recalled the loan as at the date of the report. The Company is in discussions with the lender for resolution of the outstanding defaults and restructuring of the repayment obligations. Further, the Company intimated the default in repayment of the loan, which occurred on June 30, 2026, to the stock exchanges through its communication dated July 30, 2026. Further, the Sugar Development Fund (“SDF”) Loan secured by the fixed assets of Unit-III (excluding refinery assets and harvester machines) was covered under a One Time Settlement (“OTS”) sanctioned by the Government of India for an amount of INR 6,111 Lakhs. Vide letter dated October 13, 2025, the authority had granted extension for repayment of the aforesaid OTS amount up to April 06, 2026. However, the Company has defaulted in repayment within the extended timeline. Consequently, the SDF Authority has issued a letter dated April 22,2026 stating the cancellation of OTS arrangement entered into with the company, the concessions and reliefs granted under the OTS arrangement stand withdrawn and the original liability together with applicable interest has become payable by the Company. The consequential financial impact arising on account of reinstatement of the original liability, including applicable interest and other related charges, is being evaluated by the management and necessary adjustments, wherever required, will be accounted for upon final determination. 3. The management is actively undertaking various revival and recommencement measures for restoration of the Company’s operations, including arrangements for working capital and operational funding and discussions with lenders and other stakeholders. Management is also evaluating various options for external funding and infusion of financial support for recommencement of operations and meeting working capital requirements. Management is positive about the revival and recommencement of the Company’s operations and expects improvement in the operational and financial position of the Company in the foreseeable future. 4. The Company has obtained unsecured loans in the said quarter from Corporate entities to the tune of INR 223.03 Lakhs as per Loan agreements. The Total Outstanding loans from Directors & Loans from related parties stands at INR 21,633.56 Lakhs as on June 30, 2026. 5. The Company availed a loan from I heart Properties Private Limited in August 2024 amounting to INR 2,470 lakhs for a tenure of four months. As at June 30, 2026, the entire loan amount of INR 2,996.21 Lakhs including interest of INR 526.21 Lakhs, remains unpaid beyond its due date. 6. The Company has investments in equity shares of Appu Hotels Limited, having a carrying amount of INR 1,455.39 Lakhs as at June 30, 2026. The Management is in the process of assessing the fair value of the investments and complying with the disclosure requirements of Ind AS 113 – Fair Value Measurement. 7. During the previous financial year 2024-25, the Company issued 83,14,328 equity shares of INR 10 each for consideration other than cash pursuant to a debt resolution agreement entered into with National Asset Reconstruction Company Limited (NARCL). However, as at June 30, 2026, the said shares have not been admitted in dematerialised form and are pending receipt of in-principle approval from the stock exchanges in accordance with the terms of the agreement. Consequently, the equity shares issued pursuant to the debt resolution arrangement are neither dematerialised nor listed as at June 30, 2026. Further, the equity shares of the Company were suspended from trading on the National Stock Exchange of India and the Bombay Stock Exchange (BSE) with effect from July 03, 2023, pursuant to initiation of liquidation proceedings by the Hon’ble National Company Law Tribunal, Chennai Bench, vide Order IA (IBC)/380/CHE/2023 in IBA/976/2019 dated June 27, 2023. Further, vide NSE Circular Ref. No. 0815/2023 dated June 30, 2023, the Exchange notified suspension of trading in the equity shares of the Company. The management is undertaking necessary steps for regularisation of defaults and pursuing efforts for restoration of trading and revocation of suspension of the equity shares of the Company. As of the review date, Statutory dues aggregating in respect of TDS, Employees Provident Fund, Employees State Insurance, Professional Tax, and Power Generation Tax remain unpaid. The delays are primarily due to liquidity issues. The Company is working on a priority payment schedule to clear all outstanding statutory dues. 8. Interest on the Inter-Corporate Loan from Dharani Developers Limited and loans from directors has not been accrued in the books for the quarter in line with the terms agreed in the Master Restructuring Agreement (MRA) dated 24th May 2024. 9. Vendor classification between MSME and non-MSME is under review. Updated MSME registration certificates are being obtained from suppliers. Management acknowledges that some MSME dues have remained unpaid beyond statutory timelines and is working to settle these and prevent delays in future. 10. The Company does not have any subsidiary/associate/joint venture company as on June 30 ,2026. 11. Previous period figures have been regrouped/reclassified, wherever necessary. |