The Exchange had sought clarification from Dharani Sugars & Chemicals Limited for the quarter ended 31-Mar-2024 with respect to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. On basis of above the Company was required to clarify the following: The response of the Company is enclosed.
Awaiting price reaction for this filing.
The company responded to NSE's queries regarding compliance with Regulation 33 of SEBI LODR. The Exchange had raised observations about delayed financial result submissions (beyond 30-minute limit), missing Statement of Modified Opinion, and non-compliance with prescribed format. The company attributed the delay to uploading four quarters' results sequentially as a technical issue. The audited results for FY2024 show net profit of Rs. 12,132.39 lakhs (vs loss of Rs. 3,077.95 lakhs in FY2023), aided by exceptional items of Rs. 15,590.05 lakhs from IBC settlement. Revenue from operations was very low at Rs. 95.77 lakhs. The auditors issued a qualified opinion citing: ongoing CIRP during audit year, no actuarial valuation for employee benefits, uncertainty over Appu Hotels investment value (Rs. 1,455.39 lakhs), missing balance confirmations, and prior-year filing delays without penalty provisions. The company disclosed unsustainable debt of Rs. 3,316.5 crores as contingent liability, with settlement expected upon loan repayment completion under the Master Restructuring Agreement with NARCL.
The company is clarifying past non-compliances to the Exchange. While FY2024 shows net profit due to exceptional settlement gains, the underlying business is weak with negative net worth and very low revenue. The auditors' qualified opinion and pending going concern issues signal elevated risk for shareholders.