Simbhaoli Sugars Ltd

Simbhaoli Sugars’ Financial Strain Deepens: Key Concerns in Latest Report 📉

- Unaudited standalone financial results for Q2 & H1 FY2025 reviewed by Interim Resolution Professional (IRP) Anurag Goel.

- Under CIRP since July 11, 2024; next NCLT hearing on January 14, 2026.

- No provision for bank interest expenses: ₹8,691.77 lakhs (Q2), ₹17,052.06 lakhs (H1).

- Accumulated unprovided bank interest: ₹192,081.67 lakhs as of September 30, 2025.

- Unprovided interest on related-party loans: ₹11.04 lakhs (Q2), ₹21.97 lakhs (H1); total accumulated ₹53.66 lakhs.

- Unprovided sugarcane farmer interest: ₹12,163.25 lakhs as of July 11, 2024.

- Unrecognized penalties/disputed charges: ₹1,237.32 lakhs + interest of ₹46.97 lakhs (Q2), ₹93.44 lakhs (H1).

- No impairment assessment for subsidiaries: Simbhaoli Power (₹21,509.72 lakhs), Integrated Casetech (₹646.83 lakhs).

- Unauthorized director remuneration: ₹301.82 lakhs (pre-CIRP), ₹91.35 lakhs (during CIRP).

- Unprovided ex-CFO remuneration: ₹47.77 lakhs (Feb 15–Sep 30, 2025).

- No CIRP cost provision despite ₹48 lakhs disbursed by Punjab National Bank.

- Financials prepared as going concern despite net worth erosion and payment defaults.

- Unadjusted power tariff revision (retroactive from April 1, 2024) pending final assessment.

- Legal risks include lender recovery proceedings and potential fraud classification by PNB.

- Auditors issued qualified report citing interest, impairment, and adjustment gaps.