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SUGARS LIMITEDMain BoardEquity2025-04-012026-03-312026-07-132026-07-07INRLakhsQuarterlyFourth quarterMulti segment2026-07-1315:30:002026-07-1317:05:00trueCash Flow IndirectStatement on impact of audit qualification2026-01-012026-03-31AuditedConsolidated19851470004111300020262600002062157000150245000-825644000188734000289850001580660002783180002040861000-14601000-2923000-17524000-1040000-1040000-174200000000-1742000020069000264900018825000-3624500019491000578000412790000100.530.46000.530.462025-04-012026-03-31AuditedConsolidated88466230008640500089330280004596005000801717000158493100071621000011741100044203100013616860009619991000-686963000-9203000-696166000-1040000-1040000-6960620000000-69606200020069000-675993000-516073000-1799890001949100057800041279000010-2161298000-12.28-12.500-12.28-12.5Excise Duty63036000Power and Fuel16177000Other expenses199105000Excise Duty489941000Power and Fuel46884000Other expenses82486100013356120000242810000028420000004270000033086000335130001085600011872300013546335000326526800035345600021931600047579800036717200008113700014968790001017000016217300049344900002310000018483135000412790000-2161298000-174850800090724000-1657784000304900000003049000039525000007001500010076959000101733000576247200058642050003869344000198105080002349440002543000022000020070904000002014091900018483135000Other Financial Assets33086000Income Tax Assets (Net)76264000Other non-current assets42459000Other current financial assets81137000Other current assets162173000Other current financial liabilities3869344000Other current liabilities234944000Sugar1497887000Distillery472221000Power113270000Others29959000Borowings0Sugar6639442000Distillery2417266000Power310190000Others118235000Borowings02113337000948513300012819000063851000019851470008846623000Sugar70534000Distillery-32843000Power-43601000Others350000Borowings0Sugar-317726000Distillery-140541000Power-139090000Others195000Borowings0-5560000-59716200028985000117411000-17022000-18408000-17523000-696165000Sugar11707801000Distillery3410680000Power2369030000Others138101000Borowings01762561200085752300018483135000Sugar5922653000Distillery158887000Power264395000Others90108000Borowings1010744900016543492000359742700020140919000117411000156878000010000700000175900000-261740000-122669800000445200044203100000-32490000-99370000017208000000-312790009203000009449290002487630000001243000024752000000000000029390000000000000000000000117230000-97236000-1149030000000000000001874900000-187490001138680000113868000361930000475798000-20069000-20069000002006900020069000AuditedAdverse opinion B. K. Kapur and Co.true2029-04-3089330280008933028000962909000013554419000-696062000-4621391000-12.28-107.3718483135000183837770002014091900023966890000-1657784000-5583113000The Holding Company has prepared the Consolidated Financial Statements on a going concern basis despite significant adverse financial and operational conditions, including continuous losses, negative net worth, negative working capital, defaults in repayment of borrowings and operational liabilities, proceedings under the Insolvency and Bankruptcy Code, 2016, and uncertainty regarding continuation of operations. In the absence of adequate evidence supporting the appropriateness of the going concern assumption, the Company has not assessed the requirement for adjustments that may be necessary if the Company is unable to continue as a going concern. Consequently, the carrying values of assets and liabilities, their classification between current and non-current, recoverability of assets and adequacy of provisions may require significant adjustments. Since the outcome of these uncertainties cannot presently be determined, the financial impact on the Consolidated Financial Statements is not ascertainable.Adverse opinionWhether appeared first timeThe Holding Company has prepared the Consolidated Financial Statements on a going concern basis considering that the Company is undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, and the outcome of the CIRP is expected to determine the future course of operations. The management believes that the Company possesses significant operating assets and business potential, and the resolution process is intended to preserve and revive the business as a going concern. Accordingly, pending the outcome of the CIRP and considering the uncertainty associated with the ongoing legal proceedings before the Hon'ble NCLAT, the financial statements have been prepared on a going concern basis. The management believes that no adjustment to the carrying values of assets and liabilities is presently warranted.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised interest expense on borrowings from banks after commencement of CIRP. Consequently, Finance Costs for the year ended March 31, 2026 are understated by Rs. 34,990.72 Lakhs, resulting in an equivalent understatement of Net Loss for the year. Further, Current Financial Liabilities are understated and Other Equity is overstated by the cumulative unprovided interest of Rs. 2,10,020.35 Lakhs as at March 31, 2026. Accordingly, the Consolidated Financial Statements do not reflect the full borrowing costs and related liabilities in accordance with the applicable Indian Accounting Standards.Adverse opinionRepetitiveThe management has not recognised interest on borrowings from banks after the commencement of CIRP in view of the legal uncertainty regarding accrual of such interest during the CIRP period and the pending proceedings before the Hon'ble NCLAT. The management believes that the final liability towards lenders will be determined based on the claims admitted by the Resolution Professional and the final outcome of the insolvency proceedings. Accordingly, no provision has been considered necessary at this stage. <br /> N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised interest payable on unsecured loans received from its related Holding Company after commencement of CIRP. Consequently, Finance Costs and Net Loss for the year ended March 31, 2026 are understated by Rs. 43.81 Lakhs. Current Financial Liabilities are understated and Other Equity is overstated by the cumulative unprovided interest amounting to Rs. 75.51 Lakhs as at March 31, 2026.Adverse opinionRepetitiveThe management has adopted a consistent accounting approach for unsecured borrowings from related parties after commencement of CIRP. Since the admissibility and settlement of such claims are subject to the outcome of the insolvency proceedings and applicable judicial orders, the management believes that recognition of additional interest liability at this stage may not appropriately reflect the final obligation of the Company.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised interest payable under Section 17(3) of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 on delayed payment of sugarcane dues. Interest claimed by cane societies up to July 11, 2024 amounting to Rs. 12,163.25 Lakhs has not been recognised. Consequently, Current Financial Liabilities are understated and Other Equity is overstated by at least the aforesaid amount. Further, the Company has not computed interest on the outstanding cane dues subsequent to July 11, 2024. Accordingly, the additional liability, finance cost and consequential impact on Net Loss and Equity cannot presently be quantified.Adverse opinionRepetitiveThe management believes that the liability towards interest on delayed payment of sugarcane dues is intrinsically linked to the claims that will ultimately be admitted and settled under the CIRP framework. Further, substantial sugarcane dues have already been discharged by the Interim Resolution Professional after commencement of CIRP. Accordingly, the management considers that recognition of further interest liability should await final adjudication and determination of claims by the appropriate authorities.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised interest payable on delayed payments to Micro and Small Enterprises as required under the provisions of the MSMED Act, 2006. Consequently, Finance Costs and Net Loss for the year ended March 31, 2026 are understated by Rs. 51.26 Lakhs. Current Financial Liabilities are understated and Other Equity is overstated by an equivalent amount.Adverse opinionRepetitiveThe management believes that the liability relating to interest under the MSMED Act is also subject to the determination of operational creditors' claims under the CIRP proceedings. Accordingly, the management has considered it appropriate not to recognise such interest pending final determination of liabilities under the Insolvency and Bankruptcy Code.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised penalties and disputed charges raised by its subsidiary, Simbhaoli Power Private Limited (SPPL), amounting to Rs. 2,174.69 Lakhs for the year ended March 31, 2026. Consequently, expenses and Net Loss are understated by the said amount. Further, Current Financial Assets and Other Equity are overstated by Rs. 2,174.69 Lakhs, resulting in an overstatement of the Company's financial position.Adverse opinionRepetitiveThe management does not accept the penalties and disputed charges raised by Simbhaoli Power Private Limited, as these claims are under dispute between the parties and have not attained finality. The Company believes that the claims are not legally enforceable in their present form and, therefore, no provision has been considered necessary pending final resolution of the disputes.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has recognised receivables from SPPL aggregating to Rs. 1,005.43 Lakhs towards penalties and other charges. However, the subsidiary has not acknowledged the corresponding liability and sufficient appropriate audit evidence regarding recoverability of the receivable was not available. Consequently, the recoverability of the receivable, adequacy of impairment, and the resulting impact on Current Financial Assets, Net Loss and Other Equity could not be determined. Accordingly, the financial impact on the Consolidated Financial Statements is not ascertainable.Adverse opinionRepetitiveThe management is of the view that the receivables recognised from Simbhaoli Power Private Limited are recoverable based on contractual rights and ongoing discussions between the parties. Since the disputes remain unresolved and the Company expects an amicable settlement or legal determination in its favour, no impairment provision has been considered necessary.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has recognised revenue from supply of bagasse to SPPL at rates higher than those stipulated in the agreement. However, since these transactions are eliminated upon consolidation as inter-company transactions, there is no impact on the Consolidated Revenue, Profit, Assets, Liabilities or Equity. Accordingly, this qualification does not have any financial impact on the Consolidated Financial Statements.Adverse opinionRepetitiveThe management believes that the revenue has been recognised based on the Company's interpretation of the contractual terms and commercial understanding between the parties. In any event, since the transactions are eliminated on consolidation, the management concurs that there is no impact on the Consolidated Financial Statements.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised Deferred Tax Liability arising from taxable temporary differences as required under Ind AS 12, "Income Taxes". In the absence of detailed computation of temporary differences, the amount of Deferred Tax Liability, Deferred Tax Expense and consequential effect on Other Equity could not be determined. Accordingly, the financial impact on the Consolidated Financial Statements is not ascertainable.Adverse opinionRepetitiveThe management is evaluating the temporary differences and their tax implications in light of the ongoing CIRP and the uncertainty surrounding future taxable profits and settlement of liabilities. Pending completion of such evaluation and determination of temporary differences, no deferred tax liability has been recognised.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised an income tax demand of Rs. 999.23 Lakhs arising from the penalty order for Assessment Year 2018-19. Consequently, Current Financial Liabilities are understated by Rs. 999.23 Lakhs, Other Equity is overstated by an equivalent amount and Net Loss for the year is understated by the same amount.Adverse opinionWhether appeared first timeThe Company has challenged the penalty order before the appropriate appellate authorities and believes, based on legal advice, that it has a reasonably strong case on merits. Accordingly, the management considers the demand to be contingent in nature and has not recognised the same as a liability in the financial statements pending disposal of the appeal.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 liabilities towards banks, financial creditors and operational creditors remain subject to the final outcome of the proceedings before the Hon'ble NCLAT and determination of claims by the Interim Resolution Professional/Resolution Professional. Since the admitted claims may differ from the carrying amounts presently recorded in the books, the consequential impact on Financial Liabilities, Finance Costs, Net Loss and Other Equity cannot presently be determined. Accordingly, the financial impact is not ascertainable.Adverse opinionWhether appeared first timeThe management believes that the liabilities of financial creditors, operational creditors and other stakeholders will ultimately be determined through the CIRP mechanism in accordance with the Insolvency and Bankruptcy Code, 2016. Until such claims are admitted and finally determined by the Resolution Professional and the competent judicial authorities, the carrying values reflected in the books represent the best estimate presently available.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not carried out impairment assessment of investments in and receivables from its subsidiary companies aggregating to Rs. 23,518.33 Lakhs in accordance with Ind AS 36 and Ind AS 109. Consequently, the adequacy of the carrying value of such investments and receivables could not be evaluated. The amount of impairment loss, if any, and its consequential impact on Investments, Financial Assets, Net Loss and Other Equity cannot presently be quantified.Adverse opinionRepetitiveThe management believes that the value of investments in and receivables from subsidiary companies is intrinsically linked to the successful implementation of the resolution process and the future operational performance of the subsidiaries. Pending completion of CIRP and assessment of long-term business prospects, the management believes that impairment testing at this stage may not appropriately reflect their recoverable value.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not performed impairment testing of Property, Plant and Equipment and other non-current assets as required under Ind AS 36. Accordingly, the carrying amounts of such assets may exceed their recoverable amounts. Since no impairment assessment has been carried out, the amount of impairment loss, if any, and the consequential impact on Property, Plant and Equipment, Depreciation, Net Loss and Other Equity cannot presently be determined.Adverse opinionRepetitiveThe management is of the opinion that the recoverable value of the Company's property, plant and equipment cannot be reliably assessed until the outcome of the CIRP and the future operating model of the Company become reasonably certain. Accordingly, impairment testing has been deferred, as management believes that the existing carrying values continue to represent the best available estimate under the prevailing circumstances.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not assessed the net realisable value or usability of obsolete and non-moving stores and spares after commencement of CIRP. Consequently, the adequacy of provision against slow-moving inventory could not be evaluated. The amount by which Inventory may be overstated and the corresponding effect on Net Loss and Other Equity cannot presently be quantified.Adverse opinionRepetitiveThe management believes that the assessment of usability and realisable value of stores and spares should be undertaken after finalisation of the business revival plan under CIRP. Since future operations are expected to determine the utilisation of such inventories, no additional provision has been considered necessary at this stage.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has paid managerial remuneration without obtaining prior approval of lenders as required under Section 197 of the Companies Act, 2013. This represents non-compliance with statutory provisions. Since the ultimate regulatory consequences, including possible recovery or refund of remuneration, remain uncertain, the consequential financial impact on the Consolidated Financial Statements cannot presently be determined.Adverse opinionRepetitiveThe remuneration paid to managerial personnel was based on approvals obtained under the applicable provisions of the Companies Act, 2013 and resolutions passed by the shareholders. The management believes that the matter primarily relates to regulatory compliance and that the final outcome, if any, will depend upon the interpretation of applicable legal provisions and decisions of the competent authorities.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 remuneration of the Chief Financial Officer amounting to Rs. 86.70 Lakhs has been recognised after expiry of his contractual tenure based on approval granted by the Interim Resolution Professional pending ratification by the Committee of Creditors and other necessary approvals. Consequently, the matter represents uncertainty relating to compliance and governance. The consequential financial impact, if any, arising from non-ratification cannot presently be determined.Adverse opinionRepetitiveThe remuneration of the Chief Financial Officer during the relevant period was approved by the Interim Resolution Professional in order to ensure continuity of key managerial functions during CIRP. The management believes that the subsequent ratification process is procedural in nature and does not warrant any adjustment to the financial statements at this stage.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 Holding Company has not recognised the full cost relating to the Corporate Insolvency Resolution Process, as the Committee of Creditors has not yet been constituted and the total CIRP costs have not been determined. Although Rs. 72 Lakhs (excluding GST) has been funded by Punjab National Bank towards partial CIRP expenses, the total obligation remains unascertained. Consequently, Current Liabilities and Expenses are understated and Net Loss is understated to the extent of the unprovided CIRP costs. However, the exact financial impact on the Consolidated Financial Statements cannot presently be quantified until the CIRP costs are finally determined and ratified.Adverse opinionRepetitiveThe management believes that the total CIRP costs can only be determined after constitution of the Committee of Creditors and completion of the CIRP process. Since the amount presently recoverable and payable cannot be reliably measured, only the costs actually incurred and funded have been recognised. Appropriate accounting adjustments, if any, will be made upon final determination and ratification of CIRP costs in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 disclaimer of opinion issued by the statutory auditor of Simbhaoli Power Private Limited on the financial statements of the Company for the year ended March 31, 2026 indicates that the auditor was unable to obtain sufficient and appropriate audit evidence regarding certain significant matters. The key impacts of the same are as follows: <br /> The Company has prepared its financial statements on a going concern basis despite incurring continuous losses, negative working capital, deterioration in operational performance due to non-functioning of one turbine at the Simbhaoli plant and non-generation of power at the Chilwaria plant, uncertainty regarding continuity of supply of bagasse, disputes with one of the Joint Venture partners, and absence of firm financial and operational support from the shareholders. Further, insolvency proceedings initiated against one of the Joint Venture partners have significantly increased the uncertainty surrounding the Company's future operations. In the absence of sufficient appropriate audit evidence supporting management's assessment of the going concern assumption, the auditor has been unable to determine whether the Company will be able to continue as a going concern. Consequently, the carrying values and classification of assets and liabilities, recoverability of assets, recognition of liabilities and other consequential adjustments that may be required if the going concern assumption is inappropriate have not been determined. Accordingly, the financial impact on the financial statements is not ascertainable.Disclaimer of opinionRepetitiveThe management has prepared the financial statements on a going concern basis considering the strategic importance of the Company's power generation business, the continued support expected from its Joint Venture partners, and the expectation that the operational and financial challenges currently being faced are temporary in nature. The management believes that the ongoing disputes with one of the Joint Venture partners, uncertainty regarding the supply of bagasse and the insolvency proceedings against one of the Joint Venture partners do not necessarily indicate cessation of business operations. The Company continues to maintain its operating assets and is actively pursuing restoration of normal operations, including resolution of commercial disputes and revival of power generation activities. Accordingly, the management is of the view that preparation of the financial statements on a going concern basis remains appropriate and no adjustment to the carrying values or classification of assets and liabilities is presently considered necessary.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 disclaimer of opinion issued by the statutory auditor of Simbhaoli Power Private Limited on the financial statements of the Company for the year ended March 31, 2026 indicates that the auditor was unable to obtain sufficient and appropriate audit evidence regarding certain significant matters. The key impacts of the same are as follows: <br /> The Company has not recognised impairment losses on its cash-generating units despite continuous operating losses, inadequate cash flows and non-generation of power at the Chilwaria plant. Although an impairment provision of INR 568.40 Lakhs has been recognised against one non-operational turbine, the carrying value of INR 600.00 Lakhs continues to be based on valuation assumptions involving significant uncertainty regarding marketability, technical condition of the assets and future utilisation. Further, management's impairment assessment for the remaining assets is based on assumptions relating to future operations, uninterrupted availability of bagasse, operation of all turbines at optimum capacity and lower discount rates, which could not be independently substantiated. Consequently, the auditor was unable to obtain sufficient appropriate audit evidence regarding the recoverable amount of the Company's property, plant and equipment and cash-generating units. Accordingly, the adequacy of impairment loss, if any, and the consequential impact on Property, Plant and Equipment, Depreciation, Net Loss and Retained Earnings as at March 31, 2026 cannot presently be determined.Disclaimer of opinionRepetitiveThe management has carried out an assessment of the recoverability of its Property, Plant and Equipment based on the expected future business prospects, anticipated restoration of operations, availability of bagasse, and future cash flow projections. During the year, impairment amounting to INR 568.40 Lakhs has already been recognised in respect of the non-operational turbine at the Simbhaoli plant based on an independent valuation report. In the management's opinion, no further impairment is presently warranted as the remaining generating assets are expected to generate adequate economic benefits upon normalisation of operations. The assumptions adopted in the valuation and cash flow projections represent management's best estimates under the prevailing circumstances and will continue to be reviewed periodically based on future developments.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 disclaimer of opinion issued by the statutory auditor of Simbhaoli Power Private Limited on the financial statements of the Company for the year ended March 31, 2026 indicates that the auditor was unable to obtain sufficient and appropriate audit evidence regarding certain significant matters. The key impacts of the same are as follows: <br /> The Company is subject to legal proceedings before the National Company Law Tribunal, Allahabad Bench, Prayagraj, initiated by one of its Joint Venture partners alleging oppression and mismanagement. Pending adjudication of these proceedings and in the absence of sufficient and appropriate audit evidence supporting management's assessment regarding the likely outcome of the litigation, the auditor has been unable to determine whether any adjustments, provisions, disclosures or reclassification of assets and liabilities may be necessary. Accordingly, the consequential financial impact, if any, on the Company's financial statements cannot presently be quantified.Disclaimer of opinionRepetitiveThe management believes that the allegations made in the petition filed before the Hon'ble National Company Law Tribunal are without merit and has been appropriately contested. Based on legal advice received and the facts presently available, the management does not expect the outcome of the proceedings to result in any material financial liability requiring recognition or adjustment in the financial statements. Appropriate disclosures have been made regarding the pending litigation, and the management will account for any financial impact, if required, upon final adjudication of the matter.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 disclaimer of opinion issued by the statutory auditor of Simbhaoli Power Private Limited on the financial statements of the Company for the year ended March 31, 2026 indicates that the auditor was unable to obtain sufficient and appropriate audit evidence regarding certain significant matters. The key impacts of the same are as follows: <br /> The Company has recognised net receivables from one of its Joint Venture partners, Simbhaoli Sugars Limited, amounting to INR 2,174.80 Lakhs, which have not been accepted by the Joint Venture partner. Simultaneously, the Joint Venture partner has raised counter claims amounting to INR 1,781.30 Lakhs, including transactions pertaining to the current financial year, which have not been accepted by the Company. As the matter remains under discussion between the parties and no final settlement has been reached, the recoverability of the recognised receivables and the validity of the counter claims remain uncertain. Consequently, the auditor was unable to determine whether any impairment, write-off, provision or adjustment is required. Accordingly, the impact on Trade Receivables, Other Financial Assets, Net Loss and Equity cannot presently be quantified.Disclaimer of opinionRepetitiveThe management is of the opinion that the receivables recognised from Simbhaoli Sugars Limited arise from valid contractual obligations and are recoverable. The counter claims raised by Simbhaoli Sugars Limited are disputed by the Company and are not considered legally sustainable. Discussions between the parties are continuing for an amicable resolution and, if necessary, the disputes will be resolved through appropriate legal mechanisms. Accordingly, the management believes that no impairment or provision against the recognised receivables is required at this stage, and the financial statements appropriately reflect the Company's contractual rights.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 disclaimer of opinion issued by the statutory auditor of Simbhaoli Power Private Limited on the financial statements of the Company for the year ended March 31, 2026 indicates that the auditor was unable to obtain sufficient and appropriate audit evidence regarding certain significant matters. The key impacts of the same are as follows: <br /> During the year, Simbhaoli Sugars Limited has charged the Company for supply of bagasse at rates higher than those stipulated under the Bagasse Supply Agreement. The Company has not recognised the additional liability arising from such higher rates as the matter is under dispute. Since bagasse constitutes the principal raw material for generation of power, the outcome of the dispute has significant implications not only on the recognition of purchase cost and liabilities but also on the continuity of raw material supply, operational viability, assessment of impairment of cash-generating units and the appropriateness of the going concern assumption. In the absence of sufficient appropriate audit evidence regarding the likely resolution of the dispute and its financial implications, the auditor has been unable to determine the amount of additional liability, if any, required to be recognised and the consequential impact on Cost of Materials Consumed, Trade Payables, Net Loss, Property, Plant and Equipment, impairment assessment and Equity. Accordingly, the financial impact on the financial statements is not ascertainable.Disclaimer of opinionRepetitiveThe management believes that the additional amount charged by Simbhaoli Sugars Limited for supply of bagasse is contrary to the terms and conditions of the Bagasse Supply Agreement and, therefore, has not recognised the additional liability in the financial statements. The matter remains under discussion between the parties and the Company expects that the dispute will be resolved in accordance with the contractual provisions or through appropriate legal proceedings. Since the liability has neither crystallised nor been accepted by the Company, the management considers that recognition of the disputed amount is not warranted at this stage. The management further believes that the ongoing discussions regarding bagasse pricing will not materially impair the long-term operational viability of the Company and will continue to evaluate the accounting treatment based on future developments.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 statutory auditor has issued an adverse opinion on the financial statements of ICCPL for the year ended March 31, 2026 An adverse opinion indicates that the auditor believes the financial statements contain material and pervasive misstatements and therefore do not present a true and fair view of the financial position and performance of the Company. The impact of the matters reported in the “Basis for Adverse Opinion” section is summarized below: <br /> The Company has continued to recognise disputed unbilled revenue amounting to Rs. 492.42 Lakhs and Earnest Money Deposits aggregating to Rs. 150.50 Lakhs as recoverable in the financial statements without recognising any expected credit loss or provision for probable losses, despite the disputes remaining unresolved since Financial Year 2020-21. In the absence of sufficient and appropriate evidence demonstrating the recoverability of these balances, the auditor is of the opinion that the entire amount should have been provided for. Consequently, the Net Profit after Tax and Total Comprehensive Income for the year are understated by Rs. 642.92 Lakhs, while Current Financial Assets and Other Equity as at March 31, 2026 are overstated by an equivalent amount. Accordingly, the financial statements do not appropriately reflect the recoverability of these assets in accordance with the applicable Indian Accounting Standards.Adverse opinionRepetitiveThe management believes that the unbilled revenue amounting to Rs. 492.42 Lakhs and Earnest Money Deposits amounting to Rs. 150.50 Lakhs represent valid contractual claims arising from services rendered under various contracts. These amounts remain under dispute with the respective customers; however, the Company continues to pursue recovery through contractual and legal remedies. Based on the facts of each case, legal advice received and management's assessment of the contractual rights, the management is of the view that there remains a reasonable expectation of recovery and, accordingly, no provision for Expected Credit Loss or probable loss has been considered necessary. The recoverability of these balances will continue to be reviewed on an ongoing basis in light of future developments.N.A.Not applicable <br /> The company has not recognised Deferred Tax Liability. Further final 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 statutory auditor has issued an adverse opinion on the financial statements of ICCPL for the year ended March 31, 2026 An adverse opinion indicates that the auditor believes the financial statements contain material and pervasive misstatements and therefore do not present a true and fair view of the financial position and performance of the Company. The impact of the matters reported in the “Basis for Adverse Opinion” section is summarized below: <br /> The Company has not recognised impairment or Expected Credit Loss (ECL) on overdue trade receivables aggregating to Rs. 242.10 Lakhs (comprising receivables of Rs. 227.73 Lakhs overdue for more than three years and Rs. 14.37 Lakhs overdue for more than two years), including disputed receivables amounting to Rs. 30.96 Lakhs, despite the absence of supporting confirmations or evidence of recoverability. In the auditor's opinion, the aforesaid overdue receivables should have been fully provided for under the Expected Credit Loss model prescribed under Ind AS 109. Consequently, Net Profit after Tax and Total Comprehensive Income for the year are understated by Rs. 242.10 Lakhs, while Current Financial Assets and Other Equity as at March 31, 2026 are overstated by an equivalent amount.Adverse opinionRepetitiveThe management has evaluated the recoverability of overdue trade receivables based on the nature of the customers, contractual arrangements, historical recovery experience and the current status of recovery efforts. The management believes that the outstanding receivables continue to be recoverable and that the delays in collection are primarily attributable to commercial disputes and prolonged settlement processes rather than deterioration in the creditworthiness of the customers. Accordingly, the management is of the opinion that recognition of a full Expected Credit Loss provision is not warranted at this stage and will continue to reassess the recoverability of these receivables based on future developments.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 statutory auditor has issued an adverse opinion on the financial statements of ICCPL for the year ended March 31, 2026 An adverse opinion indicates that the auditor believes the financial statements contain material and pervasive misstatements and therefore do not present a true and fair view of the financial position and performance of the Company. The impact of the matters reported in the “Basis for Adverse Opinion” section is summarized below: <br /> The Company has continued to recognise Deferred Tax Assets amounting to Rs. 108.56 Lakhs despite the existence of accumulated losses and uncertainty regarding the availability of sufficient future taxable profits for utilisation of such deferred tax assets. In the absence of persuasive evidence supporting future taxable profits, the auditor is of the opinion that the Deferred Tax Asset should have been fully impaired in accordance with Ind AS 12, Income Taxes. Consequently, Net Profit after Tax and Total Comprehensive Income for the year are understated by Rs. 108.56 Lakhs, while Deferred Tax Assets and Other Equity as at March 31, 2026 are overstated by the same amount.Adverse opinionRepetitiveThe management believes that the Deferred Tax Asset recognised in earlier years continues to be recoverable, considering the Company's expectation of generating sufficient taxable profits from the execution of recently secured contracts and anticipated improvement in business operations. The recognition of Deferred Tax Assets is based on management's assessment of future taxable profits and business projections. The management will continue to review the recoverability of the Deferred Tax Asset at each reporting date and make appropriate adjustments if future circumstances so warrant.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 statutory auditor has issued an adverse opinion on the financial statements of ICCPL for the year ended March 31, 2026 An adverse opinion indicates that the auditor believes the financial statements contain material and pervasive misstatements and therefore do not present a true and fair view of the financial position and performance of the Company. The impact of the matters reported in the “Basis for Adverse Opinion” section is summarized below: <br /> The Company has not raised invoices amounting to Rs. 649.09 Lakhs in respect of services already rendered within the timelines prescribed under the GST Act. Further, vendors have not raised invoices against advances aggregating to Rs. 656.28 Lakhs, against which the Company has recognised estimated provisions of Rs. 620.43 Lakhs. The management has not assessed or recognised the interest and penalty liabilities arising from such non-compliance with the provisions of the GST Act. Consequently, statutory liabilities relating to interest and penalties, if any, remain unrecognised. In the absence of the necessary assessment and computation by the management, the consequential impact on Current Liabilities, Finance Costs, Other Expenses, Net Profit after Tax and Other Equity cannot presently be quantified.Adverse opinionRepetitiveThe management acknowledges that invoices relating to certain contracts could not be raised within the prescribed timelines due to commercial and operational constraints, including delays in settlement with customers and liquidity constraints affecting GST compliance. Similarly, certain vendors have also not raised invoices in respect of advances received. The Company has made estimated provisions against such advances based on the best available information. The management is in the process of evaluating the implications of the applicable GST provisions, including any interest and penalty, in consultation with tax advisors. Appropriate accounting adjustments, if any, will be recognised upon completion of such assessment and crystallisation of the related liabilities.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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 statutory auditor has issued an adverse opinion on the financial statements of ICCPL for the year ended March 31, 2026 An adverse opinion indicates that the auditor believes the financial statements contain material and pervasive misstatements and therefore do not present a true and fair view of the financial position and performance of the Company. The impact of the matters reported in the “Basis for Adverse Opinion” section is summarized below: <br /> The Company has prepared its financial statements on a going concern basis despite significant uncertainties arising from the non-recognition of impairment losses on disputed unbilled revenue, overdue receivables, Earnest Money Deposits and Deferred Tax Assets, absence of committed financial support from the Holding Company, discontinuation of payments by the Holding Company under existing contracts, inability to raise invoices due to liquidity constraints arising from GST compliance requirements, and the initiation of insolvency proceedings against the Holding Company. These conditions indicate the existence of material uncertainties that cast significant doubt on the Company's ability to continue as a going concern. In the absence of sufficient appropriate audit evidence supporting the appropriateness of the going concern assumption, the auditor has been unable to determine whether any adjustments are required to the carrying values and classification of assets and liabilities or any additional provisions that may become necessary. Accordingly, the financial impact of these uncertainties on the financial statements cannot presently be quantified.Adverse opinionRepetitiveThe financial statements have been prepared on a going concern basis as the management believes that the Company has adequate business prospects arising from recently secured contracts and expects improvement in its operational performance in the foreseeable future. Although the Company continues to face challenges arising from outstanding disputes, delayed recoveries, liquidity constraints and uncertainties associated with the Corporate Insolvency Resolution Process of the Holding Company, the management is of the view that these factors are temporary in nature and do not indicate an intention or necessity to discontinue operations. The management expects that recoveries from customers, execution of new contracts and resolution of pending matters will improve the Company's financial position. Accordingly, the management believes that preparation of the financial statements on a going concern basis remains appropriate and no adjustment to the carrying values or classification of assets and liabilities is presently considered necessary.N.A.Not applicableThe company has not recognised Deferred Tax Liability. Further final 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.NADayal Chand PopliNAB K Kapur and CompanyMr. Anurag Goel (IRP of the Company)Noida2026-07-13