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16SIMBHAOLI SUGARS LIMITEDMain BoardEquity2025-04-012026-03-312026-05-292026-05-25INRLakhsQuarterlyFourth quarterMulti segment2026-05-2914:30:002026-05-2917:25:00trueCash Flow IndirectStatement on impact of audit qualificationtruetrueNANAfalsefalsefalsetrue2026-01-012026-03-31AuditedStandalone18807290005557700019363060002032204000150245000-81763300014500200015300067981000288973000186692500069381000-4893000644880000000644880000000644880001870600083194000412790000101.681.56001.681.562025-04-012026-03-31AuditedStandalone855899600023670200087956980004559855000801717000158372200054949200042100027567800013238820009094767000-299069000-4893000-3039620000000-3039620000000-30396200018706000-28525600041279000010-1165354000-7.25-7.3600-7.25-7.36Excise Duty63036000Power and Fuel50106000Other Expenses175831000Excise Duty489941000Power and Fuel127127000Other Expenses70681400011220497000242810001952000000001100938000002829600011292340000115729000124916930003245267000230476000392556000342444000363660000010316730002360809000799100011377800057278450000018219538000412790000-1165354000-752564000-75256400030490000000304900003206400000625540001007695900010152300055358930005637416000298689300018701268000192115000161650000018909548000001897210200018219538000Other financial assets28296000Income tax assets(net)74285000Other non-current assets41444000Other current financial assets1031673000Other current assets113778000Other current financial liabilities2986893000Other current liabilities192115000Sugar1506097000Distillery472221000Borrowings0Sugar6664244000Distillery2417266000Borrowings0197831800090815100009758900052251400018807290008558996000Sugar83400000Distillery-32027000Borrowings0Sugar-288268000Distillery-139725000Borrowings051373000-427993000153000421000-13268000-12445200064488000-303962000Sugar12090371000Distillery3410680000Borrowings015501051000271848700018219538000Sugar5922653000Distillery170450000Borrowings10107449000162005520002771550000189721020004210001562691000-7074300000152440000-2630000-121824200000-20500027567800000-145000000-942000000137491000000-168290004893000003912340008727200000010400008716800000000000011671000000000000000000000-42630000-46815000-6274900000000000000042100000-42100023998000023998000318446000342444000-18706000-18706000001870600018706000Simbhaoli Sugars Limited******Integrated Casetech Consultants Private Limited******SubsidiaryAny other transactionRent received120000NA1200003780800027199000Simbhaoli Sugars Limited******Mr. Dayal Chand Popli******Chief Financial OfficerRemuneration8671000NA8671000-1546000-2452000Simbhaoli Sugars Limited******Mr. Anil Kumar Sharma******Company SecretaryRemuneration1408000NA1408000-84000-41000Simbhaoli Sugars Limited******Ms.Jagriti Sharma******Company SecretaryRemuneration842000NA8420000-183000Simbhaoli Sugars Limited******Mr. Sachchida Nand Misra******Whole Time DirectorRemuneration7469000NA7469000-1010000-1026000Simbhaoli Sugars Limited******Simbhaoli Specialty Sugars Private Limited******SubsidiaryAny other transactionRent Paid240000NA240000-2723000-2837000Simbhaoli Sugars Limited******Simbhaoli Specialty Sugars Private Limited******SubsidiaryAny other transactionExpenses Rimbursement768000NA76800000Simbhaoli Sugars Limited******Simbhaoli Superannuation Trust******SubsidiaryAny other transactionContribution in Trust424000NA424000-412000-635000Simbhaoli Sugars Limited******Simbhaoli Transport Carrier Pvt. Ltd.******SubsidiaryAny other transactionExpenses Paid36000NA36000-6960000-6876000Simbhaoli Sugars Limited******Simbhaoli Transport Carrier Pvt. Ltd.******SubsidiaryAny other transactionRent Received60000NA6000000Simbhaoli Sugars Limited******Simbhaoli Power Private Limited******SubsidiaryInterest received149121000NA149121000751858000860126000Simbhaoli Sugars Limited******Simbhaoli Power Private Limited******SubsidiaryAny other transactionOther Transaction220530000NA220530000176864000272983000389689000AuditedAdverse opinionB. K. Kapur and Co.true2029-04-3087956990008795699000909966100012825709000-303962000-4030010000-7.36-97.6318219538000182195380001897210200022698150000-752564000-4478612000The Statutory Auditors have qualified that the Company has not provided interest expense on borrowings from banks amounting to Rs. 8,997.65 lakhs for the quarter ended 31 March 2026 and Rs. 34,990.72 lakhs for the financial year ended 31 March 2026. The said non-provision has arisen consequent to admission of the Company into Corporate Insolvency Resolution Process (CIRP) by the Honble National Company Law Tribunal (NCLT) vide order dated 11 July 2024. As a result of non-recognition of such interest liability, the Net Loss and Total Comprehensive Loss for the quarter and year ended 31 March 2026 are understated by Rs. 8,997.65 lakhs and Rs. 34,990.72 lakhs respectively. Further, the cumulative interest expense not recognised in the books up to 31 March 2026 aggregates to Rs. 2,10,020.35 lakhs. Consequently, the Current Financial Liabilities of the Company are understated by the aforesaid amount, while Other Equity/Accumulated Losses are correspondingly overstated to the same extent. Had the aforesaid interest liability been recognised in accordance with applicable accounting standards, the reported financial position and performance of the Company would have been materially impacted. The auditors have further stated that the final liability towards lenders and creditors shall ultimately depend upon the claims admitted during the CIRP process and the outcome of proceedings pending before the Honble NCLAT. Accordingly, the financial impact of such borrowings and related interest obligations remains subject to final determination under the insolvency resolution framework.Adverse opinionRepetitiveThe Company was admitted into Corporate Insolvency Resolution Process (CIRP) pursuant to the order of the Honble NCLT dated 11 July 2024 and the matter is presently pending before the Honble NCLAT. In view of the ongoing CIRP proceedings and uncertainty regarding final admission and crystallisation of claims by financial creditors, the Company has not recognised interest on borrowings from banks for the period subsequent to commencement of CIRP. The management is of the view that the final liability towards lenders, including interest and other charges, shall be determined based on claims admitted by the IRP/Resolution Professional and outcome of the proceedings before the Honble NCLAT/NCLT. Necessary accounting adjustments, if any, shall be carried out upon final determination of liabilities under the CIRP framework.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not provided interest expense on borrowings from banks amounting to Rs. 8,997.65 lakhs for the quarter ended 31 March 2026 and Rs. 34,990.72 lakhs for the financial year ended 31 March 2026. The said non-provision has arisen consequent to admission of the Company into Corporate Insolvency Resolution Process (CIRP) by the Honble National Company Law Tribunal (NCLT) vide order dated 11 July 2024. As a result of non-recognition of such interest liability, the Net Loss and Total Comprehensive Loss for the quarter and year ended 31 March 2026 are understated by Rs. 8,997.65 lakhs and Rs. 34,990.72 lakhs respectively. Further, the cumulative interest expense not recognised in the books up to 31 March 2026 aggregates to Rs. 2,10,020.35 lakhs. Consequently, the Current Financial Liabilities of the Company are understated by the aforesaid amount, while Other Equity/Accumulated Losses are correspondingly overstated to the same extent. Had the aforesaid interest liability been recognised in accordance with applicable accounting standards, the reported financial position and performance of the Company would have been materially impacted. The auditors have further stated that the final liability towards lenders and creditors shall ultimately depend upon the claims admitted during the CIRP process and the outcome of proceedings pending before the Honble NCLAT. Accordingly, the financial impact of such borrowings and related interest obligations remains subject to final determination under the insolvency resolution framework.Adverse opinionRepetitiveThe non-provision of interest on unsecured loans from related parties is linked with the ongoing CIRP proceedings and uncertainty regarding final settlement of claims. The management believes that the liability towards such creditors, including interest obligations, will be crystallised only upon final determination and admission of claims under the CIRP process. Accordingly, interest liability has not been recognised for the period subsequent to commencement of CIRP. Necessary accounting treatment, wherever required, shall be considered upon final resolution of the CIRP proceedings.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not made provision for interest payable on delayed payment of sugarcane dues to farmers as required under Section 17(3) of the U.P. Sugarcane (Regulations of Supply and Purchase) Act, 1953. As per the claims submitted by various cane societies before the office of the Interim Resolution Professional (IRP) up to 11 July 2024, the interest liability on delayed payment of cane dues amounts to Rs. 12,163.25 lakhs. Consequently, the Net Loss and Total Comprehensive Loss for the quarter and year ended 31 March 2026 are understated by the aforesaid amount. Further, Current Financial Liabilities as at 31 March 2026 are understated and Other Equity is overstated to the same extent. The auditors have further observed that subsequent to commencement of the Corporate Insolvency Resolution Process (CIRP), the IRP, in accordance with the directions of the Honble NCLAT dated 24 July 2024, has discharged the majority of the outstanding cane dues of the Company except dues relating to the Chilwaria unit. However, the Company has not provided interest liability on the balance outstanding cane dues after 11 July 2024. In the absence of complete working and quantification of interest on the outstanding sugarcane dues for the period subsequent to commencement of CIRP, the auditors were unable to ascertain the consequential financial impact and adjustments required in the standalone financial results. Accordingly, the extent of additional liability, if any, that may arise on final determination of such interest obligations remains presently unascertainable.Adverse opinionRepetitiveSubsequent to commencement of CIRP, the IRP, in accordance with directions of the Honble NCLAT, has substantially cleared outstanding sugarcane dues except dues relating to the Chilwaria unit. The liability towards interest on delayed payment of cane dues is subject to reconciliation and final determination of claims filed before the IRP. Further, the Company is in the process of evaluating the applicability and quantification of such interest liability for the period subsequent to commencement of CIRP. Necessary accounting adjustments, if any, shall be made upon final crystallisation of liabilities.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not recognised/provided interest liability on delayed payments made to Micro and Small Enterprises as required under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The unprovided interest liability amounts to Rs. 51.26 lakhs for the quarter and year ended 31 March 2026. Consequently, the Net Loss and Total Comprehensive Loss for the quarter and year ended 31 March 2026 are understated by Rs. 51.26 lakhs. Further, Current Financial Liabilities as at 31 March 2026 are understated and Other Equity is overstated by the equivalent amount. Had the said interest liability been recognised in the financial statements in accordance with the provisions of the MSMED Act and applicable accounting standards, the liabilities and accumulated losses of the Company would have increased correspondingly. The qualification indicates non-compliance with the disclosure and recognition requirements prescribed under the MSMED Act in respect of delayed payments to eligible Micro and Small Enterprises.Adverse opinionRepetitiveThe Company is in the process of identifying and reconciling balances pertaining to Micro and Small Enterprises covered under the MSMED Act. The liability towards interest on delayed payments is being reviewed considering confirmations, reconciliations and status of claims during CIRP proceedings. Appropriate accounting treatment shall be carried out after completion of reconciliation and determination of actual liability, if any.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not recognised claims relating to penalties and disputed charges raised by its subsidiary, Simbhaoli Power Private Limited (SPPL), amounting to Rs. 1,048.41 lakhs for the quarter ended 31 March 2026 and Rs. 2,174.69 lakhs for the year ended 31 March 2026, including applicable GST. These claims pertain to disputes and adjustments between the Company and its subsidiary and have not been accounted for in the standalone financial statements. Consequently, the Net Loss and Total Comprehensive Loss for the quarter and year ended 31 March 2026 are understated by the aforesaid amounts. Further, Current Financial Assets and Other Equity as at 31 March 2026 are overstated to the extent of such unrecognised liabilities/claims. Had the said claims been appropriately recognised in the books of accounts, the financial performance and net worth of the Company would have been adversely impacted correspondingly. The auditors have further observed that the matter remains subject to reconciliation and resolution between the Company and SPPL. Accordingly, the final financial impact may vary upon settlement, confirmation and accounting of the disputed claims between the parties.Adverse opinionRepetitiveThe claims relating to penalties and disputed charges raised by Simbhaoli Power Private Limited (SPPL) are under reconciliation and dispute resolution between the parties. The management is of the view that these claims are presently not fully ascertainable and are subject to mutual confirmation and settlement. Accordingly, no provision has been considered necessary at this stage. Necessary adjustments, if any, shall be accounted for upon final resolution of the disputes and reconciliation of balances.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has recognised penalties and other charges recoverable from its subsidiary, Simbhaoli Power Private Limited (SPPL), amounting to Rs. 268.19 lakhs for the quarter ended 31 March 2026 and Rs. 1,005.43 lakhs for the year ended 31 March 2026. These amounts have been recorded as receivable by the Company in the standalone financial statements. However, SPPL has not recognised the corresponding liability in its books of accounts. In the absence of confirmation and acceptance of such claims by SPPL, along with lack of sufficient and appropriate audit evidence regarding the recoverability of the said receivables, the auditors were unable to ascertain the realizability of these balances and the consequential impact, if any, on the standalone financial statements of the Company. Accordingly, there exists uncertainty regarding recoverability of the aforesaid receivables recognised from SPPL. In the event the claims are not ultimately accepted or realised, the Company may be required to reverse/recover such amounts, which could adversely impact the financial results, financial assets and net worth of the Company in subsequent periods.Adverse opinionRepetitiveThe penalties and other charges recoverable from SPPL have been recognised based on contractual terms and management assessment of recoverability. The matter is presently under discussion and reconciliation with SPPL. Management believes that the amounts are recoverable and therefore no adjustment has been considered necessary in the standalone financial statements. The Company shall review the recoverability position periodically and make suitable adjustments, if required, based on final settlement and confirmation by SPPL.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has supplied bagasse to its subsidiary, Simbhaoli Power Private Limited (SPPL), at rates higher than those stipulated in the existing bagasse supply agreement. However, SPPL has accounted for the said transactions only at the contractual/agreed rates in its books of accounts. As a result, a differential amount of Rs. 676.63 lakhs has arisen between the value recorded by the Company and the value recognised by SPPL. In view of the materiality of the differential amount involved and pending final reconciliation and resolution regarding the applicable rate for supply of bagasse, the auditors were unable to comment upon the consequential impact, if any, on revenue from operations, profitability, recoverability of balances and other related financial statement items appearing in the standalone financial results of the Company. Accordingly, the financial impact arising out of the aforesaid difference in accounting treatment remains uncertain and may require adjustment upon final settlement/reconciliation between the Company and SPPL. Any such adjustment may have a consequential impact on the revenue, trade receivables, profitability and net worth of the Company.Adverse opinionWhether appeared first timeThe differential amount relating to supply of bagasse to SPPL has arisen due to differences in interpretation and applicability of contractual pricing terms. The matter is under reconciliation and discussion between the Company and SPPL. Pending final resolution and mutual agreement regarding applicable rates, the Company has accounted for transactions based on its understanding of the arrangement. Necessary adjustments, if any, shall be carried out upon final settlement and reconciliation.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not recognised Deferred Tax Liability in respect of temporary differences that may result in future tax obligations, as required under applicable Indian Accounting Standards relating to income taxes. Further, in the absence of necessary calculations, supporting records and adequate information relating to deferred tax computation, the auditors were unable to determine the net deferred tax liability and its consequential impact on the standalone financial statements of the Company. Accordingly, the auditors were unable to comment upon the extent to which deferred tax liabilities may have been understated and the corresponding impact on the Statement of Profit and Loss, liabilities and other equity of the Company. Had the deferred tax liability been properly assessed and recognised, the financial statements may have reflected higher liabilities and corresponding impact on profitability and net worth. The qualification indicates that the financial statements presently do not fully comply with the recognition and measurement requirements prescribed under the applicable Indian Accounting Standards relating to deferred taxation, and the final financial impact remains unascertainable pending detailed evaluation and computation by the management.Adverse opinionWhether appeared first timeConsidering the ongoing CIRP proceedings, significant accumulated losses and uncertainty regarding future taxable profits and final settlement of liabilities, the management has not carried out detailed deferred tax computation during the year. The Company shall reassess temporary differences and deferred tax implications in accordance with applicable accounting standards after completion of CIRP proceedings and availability of necessary supporting information.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not accounted for an income tax demand amounting to Rs. 999.23 lakhs arising from a penalty order pertaining to Assessment Year 2018-19. The said demand has not been recognised in the standalone financial statements for the quarter and year ended 31 March 2026. Consequently, the Net Loss and Total Comprehensive Loss for the quarter and year ended 31 March 2026 are understated by Rs. 999.23 lakhs. Further, Current Financial Liabilities as at 31 March 2026 are understated and Other Equity is overstated by the equivalent amount. Had the aforesaid income tax demand been recognised in the books of accounts, the liabilities and accumulated losses of the Company would have increased correspondingly. The qualification indicates that the standalone financial statements do not reflect the potential obligation arising from the aforesaid tax demand. The ultimate financial impact may, however, depend upon the outcome of any appeal, rectification or other legal proceedings initiated by the Company against the said penalty order.Adverse opinionRepetitiveThe income tax demand pertaining to Assessment Year 2018-19 arises from a penalty order against which the Company is evaluating appropriate legal remedies and/or appeal options. Based on management assessment and legal advice received, the liability is considered contingent in nature at present. Accordingly, no provision has been recognised in the financial statements. The matter shall be reviewed further based on outcome of legal proceedings.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have stated that the interest liabilities and related claims referred to in above paragraphs of the Basis for Adverse Opinion, including unprovided interest on borrowings from banks, related parties, operational creditors and other charges, are subject to the final outcome of the proceedings pending before the Honble National Company Law Appellate Tribunal (NCLAT). The final decision of the Honble NCLAT shall determine whether the Company will continue under the Corporate Insolvency Resolution Process (CIRP) or otherwise. The auditors have further observed that, in the event the interim stay granted by the Honble NCLAT is vacated and CIRP proceedings continue, the final liability of the Company towards lenders, creditors and other stakeholders would be determined on the basis of claims admitted by the Interim Resolution Professional (IRP)/Resolution Professional under the provisions of the Insolvency and Bankruptcy Code, 2016. Such admitted claims, including interest and other charges not presently accounted for in the books, may materially differ from the carrying amounts presently reflected in the standalone financial statements. Further, balances of creditors, including banks, group entities and operational creditors, continue to be carried in the books at their existing carrying values pending completion of the CIRP process and final admission/reconciliation of claims by the IRP/Resolution Professional. Accordingly, the auditors were unable to comment upon the exact financial impact of such adjustments and the consequential effect, if any, on liabilities, losses and net worth of the Company. The qualification therefore indicates material uncertainty regarding the ultimate amount of liabilities payable by the Company, since the same is contingent upon the final outcome of CIRP proceedings and determination of claims under the insolvency resolution framework.Adverse opinionRepetitiveThe Company is presently under CIRP and the final amount of liabilities towards lenders, operational creditors and other stakeholders shall be determined based on claims admitted by the IRP/Resolution Professional under the Insolvency and Bankruptcy Code, 2016 and outcome of proceedings pending before the Honble NCLAT/NCLT. Pending such determination, liabilities continue to be reflected at their carrying amounts in the books of accounts. Necessary adjustments, if any, shall be recognised upon final admission and reconciliation of claims.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not carried out impairment assessment in respect of its investments in and receivables from subsidiary companies, namely Simbhaoli Power Private Limited (SPPL) and Integrated Casetech Consultants Private Limited, as required under Indian Accounting Standard (Ind AS) 36 Impairment of Assets, Ind AS 109 Financial Instruments and other applicable accounting standards. The carrying value of investments and receivables relating to SPPL aggregates to Rs. 22,855.79 lakhs as at 31 March 2026, while the carrying value relating to Integrated Casetech Consultants Private Limited aggregates to Rs. 655.72 lakhs. The Company has not assessed whether any impairment loss is required to be recognised against these investments and receivables considering the financial position, recoverability and future business prospects of the subsidiary companies. In the absence of impairment testing, valuation analysis and supporting documentation, the auditors were unable to determine whether any impairment provision is required in respect of the aforesaid balances and consequently could not comment upon the impact thereof on the standalone financial statements. Accordingly, the extent of diminution, if any, in the value of such investments and receivables and the consequential impact on the Statement of Profit and Loss, financial assets and other equity remain unascertainable. Had the impairment assessment been carried out in accordance with the applicable Indian Accounting Standards, the Company may have been required to recognise impairment losses which could materially affect the profitability, net worth and carrying value of investments and receivables reflected in the standalone financial statements.Adverse opinionRepetitiveThe Company has not carried out detailed impairment assessment of investments in and receivables from subsidiary companies considering that the subsidiaries continue to remain operational and the final impact of CIRP proceedings on business operations and valuations is yet to be determined. Management believes that the carrying value of such investments and receivables is recoverable over a period of time. The impairment assessment shall be reviewed upon greater clarity regarding business revival, future cash flows and final outcome of CIRP proceedings.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not carried out impairment assessment of its Property, Plant and Equipment and other assets as required under Indian Accounting Standard (Ind AS) 36 Impairment of Assets. The impairment assessment has not been undertaken pending finalisation and implementation of the Corporate Insolvency Resolution Process (CIRP) before the Honble NCLT. Accordingly, the standalone financial results have been prepared based on the carrying values of Property, Plant and Equipment and other assets as appearing in the books of accounts without considering any impairment adjustments that may be required under the applicable accounting standards. In the absence of an impairment evaluation supported by valuation analysis and future cash flow assessment, the auditors were unable to determine whether the carrying amount of such assets exceeds their recoverable value. Consequently, the auditors could not comment upon the consequential impact, if any, on the Statement of Profit and Loss, carrying value of assets, depreciation, other equity and compliance with the requirements of Ind AS. Had the impairment assessment been carried out in accordance with the applicable accounting standards, the Company may have been required to recognise impairment losses, which could materially affect the financial position and profitability of the Company. The qualification therefore indicates uncertainty regarding the recoverability and valuation of the Companys fixed assets and other assets pending completion of the CIRP process and determination of the future operational viability of the Company.Adverse opinionRepetitiveThe Company continues to prepare its financial statements on a going concern basis in view of ongoing CIRP proceedings and continued operations under supervision of the IRP. Pending finalisation and implementation of CIRP and assessment of future business plans, the Company has not undertaken detailed impairment testing of Property, Plant and Equipment and other assets. Management believes that the carrying value of such assets is recoverable considering the expected revival and continuation of operations. The impairment assessment shall be revisited after completion of CIRP proceedings and finalisation of the resolution process.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not made any provision for obsolete and non-moving stores and spares after commencement of the Corporate Insolvency Resolution Process (CIRP)/Interim Resolution Professional (IRP) period. The Company has also not carried out any assessment regarding the realizable value, physical condition or expected future usability of such inventories as at the reporting date. In the absence of such assessment and valuation exercise, the auditors were unable to ascertain whether the carrying value of stores and spares reflected in the standalone financial statements is recoverable and stated at appropriate value in accordance with the applicable Indian Accounting Standards. Consequently, the auditors could not comment upon the adequacy of inventory valuation and the consequential impact, if any, on the Statement of Profit and Loss, current assets, other equity and compliance with Ind AS requirements. Had appropriate assessment and provisioning for obsolete and non-moving inventory been carried out, the Company may have been required to recognise inventory write-downs or provisions, which could adversely affect the profitability and net worth of the Company. Accordingly, the financial impact arising from possible diminution in value of such stores and spares remains unascertainable pending detailed evaluation by the management.Adverse opinionWhether appeared first timeDue to ongoing CIRP proceedings and operational constraints, detailed technical and physical assessment of obsolete and non-moving stores and spares could not be completed during the year. Management is in the process of reviewing the usability and realizable value of inventory items. Necessary provisions, wherever considered necessary, shall be recognised after completion of detailed evaluation and assessment.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company had paid managerial remuneration aggregating to Rs. 301.82 lakhs to the Managing Director, Mrs. Gursimran Kaur Mann, and the Whole-Time Director, Mr. S.N. Misra, during earlier financial years pursuant to the Special Resolution passed at the 10th Annual General Meeting held on 27 September 2021, without obtaining prior consent of all lenders as required under Section 197 of the Companies Act, 2013. Further, during the Corporate Insolvency Resolution Process (CIRP) period from 11 July 2024 to 31 March 2026, remuneration aggregating to Rs. 128.68 lakhs was provided/payable to Mr. S.N. Misra, Whole-Time Director cum COO of the Company, including remuneration amounting to Rs. 18.67 lakhs for the quarter ended and Rs. 74.66 lakhs for the year ended 31 March 2026, pursuant to the Special Resolution passed at the Annual General Meeting held on 28 September 2023. The aforesaid remuneration was also paid/provided without obtaining consent of all lenders as mandated under Section 197 of the Companies Act, 2013. Accordingly, the auditors have observed that the payment/provision of such managerial remuneration is in contravention of the provisions of Section 197 of the Companies Act, 2013. In the absence of legal determination regarding recoverability, waiver, ratification or any regulatory consequences arising from such non-compliance, the auditors were unable to ascertain the consequential financial impact, if any, on the standalone financial statements of the Company. The qualification therefore indicates potential non-compliance with statutory provisions governing managerial remuneration and may result in consequential adjustments, recovery obligations, approvals or other regulatory implications depending upon the outcome of future actions by lenders, regulatory authorities or other stakeholders.Adverse opinionRepetitiveThe remuneration paid/provided to managerial personnel was pursuant to resolutions duly approved by shareholders of the Company. However, consent of lenders as required under Section 197 of the Companies Act, 2013 could not be obtained due to ongoing CIRP proceedings and operational exigencies. The matter shall be placed before the appropriate authorities/Committee of Creditors for necessary ratification/approval, wherever required. Management believes that the remuneration was paid for services rendered in managing the affairs of the Company during a financially stressed period.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have observed that, as per the last appointment-cum-continuation letter, the tenure of the Chief Financial Officer (CFO), Mr. D.C. Popli, expired on 14 February 2025. Subsequently, the Interim Resolution Professional (IRP), in a meeting held on 13 February 2025, extended his tenure on the existing terms and conditions, subject to ratification by the Committee of Creditors (CoC) and other necessary approvals, as referred to in Note No. 15 to the standalone financial results. Further, during the Corporate Insolvency Resolution Process (CIRP) period from 15 February 2025 to 31 March 2026, remuneration aggregating to Rs. 86.09 lakhs has been recognised/payable to Mr. D.C. Popli in the books of accounts, including outstanding dues amounting to Rs. 20.36 lakhs as at 31 March 2026. The auditors have stated that such remuneration has been paid/provided without obtaining consent of all lenders as required under Section 197 of the Companies Act, 2013. Accordingly, the auditors have indicated non-compliance with the provisions of Section 197 of the Companies Act, 2013 relating to payment of managerial remuneration during the CIRP period. Pending ratification/approval by the CoC and determination of the legal and regulatory implications arising from such payments, the consequential impact, if any, on the standalone financial statements remains uncertain and unascertainable. The qualification therefore indicates potential exposure relating to regulatory compliance, recovery/refund obligations or other consequential adjustments in respect of remuneration paid/provided to the CFO during the CIRP period.Adverse opinionRepetitiveThe tenure of the CFO was extended by the IRP in order to ensure continuity in financial and operational management of the Company during the CIRP period. The extension and remuneration were subject to ratification and necessary approvals. Considering operational requirements and continuity of financial reporting functions, remuneration continued to be provided in the books of accounts. Necessary approvals/ratifications, wherever required, shall be obtained in due course.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have qualified that the Company has not recognised any provision towards Corporate Insolvency Resolution Process (CIRP) costs in the standalone financial statements. The auditors have noted that the Committee of Creditors (CoC) has not yet been constituted due to the interim stay granted by the Honble National Company Law Appellate Tribunal (NCLAT), and accordingly the total CIRP costs incurred or likely to be incurred have not been fully ascertained as at 31 March 2026. The auditors have further observed that Punjab National Bank, being the applicant financial creditor, has disbursed an amount of Rs. 72 lakhs excluding GST during the period from 11 July 2024 to 31 March 2026 directly into the designated CIRP bank account of the Company towards partial CIRP related expenses. However, since the complete CIRP costs have not yet been identified, quantified or provided for in the books of accounts, the standalone financial statements do not reflect the full extent of such liabilities and related expenses. Consequently, current liabilities and expenses for the quarter and year ended 31 March 2026 are understated to the extent of CIRP costs not recognised in the books. The auditors have indicated that the final determination, ratification and accounting of CIRP costs shall be undertaken upon constitution of the CoC, completion of the CIRP process and determination of recoverability from the successful resolution applicant, if any. Accordingly, the exact financial impact of unprovided CIRP costs on the standalone financial statements cannot presently be ascertained and remains subject to final determination under the insolvency resolution process.Adverse opinionRepetitiveThe Committee of Creditors (CoC) has not yet been constituted owing to the interim stay granted by the Honble NCLAT. Accordingly, the total CIRP costs incurred and payable have not yet been fully determined and ratified. Pending final quantification and approval of such costs, no complete provision has been recognised in the books of accounts. Necessary accounting treatment shall be undertaken upon constitution of CoC, determination of CIRP costs and completion of the CIRP process.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.The Statutory Auditors have drawn attention to the existence of material uncertainty relating to the Companys ability to continue as a going concern. The auditors have observed that the Companys net worth has been fully eroded and one of its manufacturing units remained non-operational during the current crushing season. Further, the Company has incurred cash losses during the quarter and year ended 31 March 2026, its current liabilities exceed current assets and it has defaulted in repayment obligations towards lenders, sugarcane farmers and other creditors. The aforesaid conditions indicate the existence of significant financial stress and material uncertainty which may cast substantial doubt on the Companys ability to continue its operations as a going concern in the normal course of business. Under ordinary circumstances, such adverse financial indicators may require reassessment of the appropriateness of preparation of financial statements on a going concern basis and could potentially result in adjustments relating to recoverability and classification of assets and liabilities. However, the auditors have noted that the Company has been admitted into the Corporate Insolvency Resolution Process (CIRP) with effect from 11 July 2024 and the Interim Resolution Professional (IRP) has taken over the management and control of the affairs of the Company with the objective of operating the Company as a going concern during the CIRP period. Accordingly, the standalone financial statements have continued to be prepared on a going concern basis. The auditors have further stated that the aforesaid matters are material and pervasive to the standalone financial statements. The ultimate impact on the Companys financial position and its ability to continue as a going concern will depend upon the successful resolution of the CIRP proceedings, revival of operations, settlement of liabilities and outcome of proceedings pending before the Honble NCLAT/NCLT.Adverse opinionRepetitiveThe standalone financial statements have been prepared on a going concern basis considering that the Company continues to operate under the supervision of the IRP pursuant to commencement of CIRP under the Insolvency and Bankruptcy Code, 2016. The management and IRP are taking necessary steps for revival and continuation of operations of the Company. Further, the CIRP framework envisages resolution and revival of the Corporate Debtor as a going concern. Accordingly, despite erosion of net worth, cash losses and defaults in repayment obligations, the financial statements continue to be prepared on a going concern basis. The ultimate outcome shall depend upon successful resolution of CIRP proceedings and implementation of the resolution plan.Not ApplicableFinal assessment of fair value of all the assets and liabilities will be made after finalization and implementation of CIRP and accordingly impairment and write back will be accounted for.The company has not quantified the impairment of assets, interest payable on outstanding cane dues and amount of Deferred Tax Liabilities which as informed to us shall be done at the time of finalisation and implementation of CIRP.NADayal Chand PopliNAMADHUSUDAN KAPURMr. Anurag Goel (IRP of the Company)Noida2026-06-2910076959000Simbhaoli Sugars Limited is under Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC) in terms of Order passed by the Honble National Company Law Tribunal (NCLT), Allahabad Bench with effect from July 11, 2024. Mr. Anurag Goel an insolvency professional having IBBI registration no. IBBI/IPA-001/IP-P00876/2017-2018/11460 was appointed as Interim Resolution Professional by NCLT vide its Order dated July 11, 2024. Pursuant to the provisions of Sections 17, 18 and 20 of the IBC, the powers of the Board of Directors of Corporate Debtor shall stand suspended and such powers shall be vested with the aforesaid IRP. Thus, the powers that are to be exercised by the board shall be vested Mr. Anurag Goel (IRP). In view of the above, audited (standalone) financial results have not been considered and recommended by Audit Committee and, consequently by the Board of Directors. However, the same have been certified by Mr. Dayal Popli - Chief Financial officer (CFO) of the Company. Based on this certification, these audited (standalone) financial results have been taken on record by IRP of the Company on 29th May,2026.10076959000000