Nature of the Disclosure

This document is a clarification submitted by Simbhaoli Sugars Limited to The National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) in response to a discrepancy raised by BSE. The discrepancy pertained to the company's failure to disclose a material event to the Exchange within the mandated 24-hour timeline.

Key Events and Timeline

  • Initial Announcement Date: The company made an announcement on 3rd July, 2026, at 17:18:49 with the subject 'Defaults under Para A sub-paragraph 6 of Schedule III - Initial Disclosure'.
  • BSE Discrepancy Notice: BSE raised a clarification via email dated 6th July, 2026, stating that the 'Material Event is not disclosed to the Exchange within 24 Hours'.
  • Company Response Date: This clarification letter was issued on 11th July, 2026.

Reason for Delay in Disclosure

The company attributes the delay in disclosure to its ongoing Corporate Insolvency Resolution Process (CIRP). This process has led to significant changes in management and active personnel, resulting in considerable administrative and statutory compliance challenges. The company states that the omission of the disclosure within the prescribed timeline was "inadvertent" and that there was no intention to withhold material information.

Details of the Omitted Material Event and Subsequent Disclosure

The material event that was not disclosed in a timely manner was an order received from PNB (Punjab National Bank) Fraud Risk Management Division. The company first learned of the need to intimate the stock exchanges about this order during discussions on the consolidation of financials for the audit as of 31st March 2026.

  • Prior Disclosure: The matter was, however, disclosed in the Notes to Accounts that formed part of the Standalone Audited Financial Results for the year ended March 31, 2026. These results were submitted to the Stock Exchange on 29th May, 2026.
  • Note Reference: The specific disclosure was contained under Note No. 1 of those financial results.
  • Subsequent Action: Upon internally noticing the omission of a separate, timely intimation, the company promptly submitted the requisite disclosure via a corporate announcement on 3rd July, 2026.

Financial Impact

Financial impact of the underlying event (the order from PNB Fraud Risk Management Division) is not quantified in this disclosure.

Remedial Measures and Assurance

The company regrets the delay and assures the Exchange that "appropriate measures are being taken to further strengthen its compliance mechanism and ensure timely disclosures" in the future.