Simbhaoli Sugars Limited has informed the Exchange regarding 'Appointment of Cost Auditor' for FY 2025-2026
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Simbhaoli Sugars, currently under CIRP since July 11, 2024 (powers of Board suspended), held an IRP-convened meeting on May 29, 2026. The meeting approved appointment of M/s Cheena & Associates as Cost Auditor (for Sugar & Distillery) and M/s Amit Gupta & Associates as Secretarial Auditor for five years (FY 2025-26 to FY 2029-30), pending ratification by COC and shareholders. Consolidated unaudited financials for Q1-Q3 FY2025-26 and audited standalone results for Q4/year ended March 2026 were taken on record. The auditors issued an adverse conclusion citing unprovided interest on bank borrowings (₹18,339 Lacs cumulatively), unprovided interest on delayed cane payments (₹1,216 Lacs), going concern doubts, material uncertainty over NCLAT's pending judgment, and unresolved disputes in subsidiary companies (SPPL and ICCPL received disclaimer/adverse opinions). Revenue for Q1 (June 2025) stood at ₹23,247 Lacs with net loss of ₹2,243 Lacs. Other equity is negative at ₹16,644 Lacs.
The company remains in a distressed state under CIRP with a stayed process awaiting NCLAT judgment. Appointment of auditors ensures statutory compliance during insolvency. However, the adverse auditor opinion and massive unprovided liabilities indicate the financial statements significantly understate obligations, creating high risk for existing shareholders.