Key Quantitative Figures

  • Revenue from Operations: ₹88,466.23 lakhs (FY2026) vs ₹1,16,431.09 lakhs (FY2025)
  • Net Loss: ₹6,960.62 lakhs (FY2026) vs ₹1,981.19 lakhs (FY2025)
  • Total Comprehensive Loss: ₹6,759.93 lakhs (FY2026) vs ₹2,003.72 lakhs (FY2025)
  • Unprovided Interest on Bank Borrowings: ₹34,990.72 lakhs (FY2026), cumulative ₹2,10,020.35 lakhs up to March 31, 2026
  • Unprovided Interest on Sugarcane Dues: ₹12,163.25 lakhs claimed up to July 11, 2024
  • Unprovided MSMED Interest: ₹51.26 lakhs (FY2026)
  • Total Assets: ₹1,84,831.35 lakhs (March 2026) vs ₹2,03,251.08 lakhs (March 2025)
  • Total Liabilities: ₹2,02,316.43 lakhs (March 2026)
  • Net Worth: Negative ₹17,485.08 lakhs (March 2026)
  • Paid-up Capital: ₹4,127.90 lakhs

Dates of Action

  • CIRP Commencement: July 11, 2024 (NCLT order)
  • IRP Appointment: July 11, 2024 (Mr. Anurag Goel)
  • NCLAT Interim Order: July 24, 2024 (stay on CIRP steps)
  • NCLAT Final Hearing: May 13, 2026 (judgment reserved)
  • NCLAT Oral Pronouncement: July 13, 2026 (dismissed promoter appeal, disposed farmer appeal)
  • Financial Results Approval: July 13, 2026 (taken on record by IRP)
  • Auditor's Report Date: July 13, 2026

Parties Involved

  • Interim Resolution Professional: Mr. Anurag Goel (IBBI/IPA-001/IP-P-00876/2017-18/11460)
  • Statutory Auditor: B.K. Kapur & Co. (Firm Registration No. 00852C)
  • Applicant Financial Creditor: Punjab National Bank (formerly Oriental Bank of Commerce)
  • Promoter Appellant: Ms. Gursimran Kaur Mann
  • Farmer Appellant: Surender Pal Singh Mangat
  • Subsidiaries: Simbhaoli Power Private Limited (SPPL), Integrated Casetech Consultants Private Limited (ICCPL), Simbhaoli Specialty Sugars Private Limited (SSSPL)
  • Key Management: Mr. Dayal Chand Popli (CFO), Mr. S.N. Misra (Whole-Time Director cum COO)

Financial and Operational Impact

Audit Qualifications - Holding Company (17 Material Matters):

1. Going Concern: Significant doubt due to continuous losses, negative net worth (₹17,485.08 lakhs), negative working capital, default in payments, CIRP proceedings, and fraud declaration by PNB

2. Unprovided Interest on Bank Borrowings: ₹34,990.72 lakhs for FY2026 not provided, cumulative ₹2,10,020.35 lakhs up to March 31, 2026

3. Unprovided Interest on Unsecured Loans: ₹43.81 lakhs for FY2026 not provided, cumulative ₹75.51 lakhs from July 11, 2024 to March 31, 2026

4. Unprovided Sugarcane Interest: ₹12,163.25 lakhs claimed by cane societies up to July 11, 2024 not provided

5. Unprovided MSMED Interest: ₹51.26 lakhs for FY2026 not provided

6. Unrecognized SPPL Claims: ₹2,174.69 lakhs penalties and disputed charges not recognized

7. Disputed Receivables from SPPL: ₹1,005.43 lakhs recognized but not accepted by SPPL

8. Bagasse Pricing Dispute: Revenue recognized at higher rates than contractual agreement

9. Unrecognized Deferred Tax Liability: Not computed as required by Ind AS 12

10. Unrecognized Income Tax Demand: ₹999.23 lakhs penalty for AY 2018-19 not provided

11. CIRP Claim Uncertainty: Final liability subject to NCLAT decision and claim admission

12. Unassessed Subsidiary Impairments: Investments and receivables of ₹23,518.33 lakhs in SPPL and ICCPL not impaired

13. Unassessed PPE Impairment: Property, plant and equipment not tested for impairment

14. Unassessed Inventory Provision: Obsolete and non-moving stores and spares not provided for

15. Unauthorized Managerial Remuneration: ₹301.82 lakhs paid in earlier years without lender consent

16. Unauthorized CFO Remuneration: ₹86.70 lakhs provided after tenure expiration without proper approvals

17. Unprovided CIRP Costs: Only ₹72 lakhs (ex-GST) recognized from PNB, total costs unascertained

Subsidiary Audit Opinions:

Simbhaoli Power Private Limited (SPPL) - Disclaimer of Opinion:

  • Going concern uncertainty due to net loss of ₹2,138.80 lakhs, current liabilities exceeding current assets by ₹16,308.30 lakhs
  • Non-operational turbine at Simbhaoli plant, no power generation at Chilwaria plant
  • Impairment assessment not adequate, only ₹568.40 lakhs provided against non-operational turbine
  • NCLT petition for oppression and mismanagement by joint venture partner
  • Disputed receivables of ₹2,174.80 lakhs from SSL and counter claims of ₹1,781.30 lakhs
  • Bagasse pricing dispute with SSL affecting raw material supply

Integrated Casetech Consultants Private Limited (ICCPL) - Adverse Opinion:

  • Disputed unbilled revenue of ₹492.42 lakhs and earnest money deposits of ₹150.50 lakhs not provided
  • Overdue trade receivables of ₹242.10 lakhs (3+ years overdue) not provided
  • Deferred tax assets of ₹108.56 lakhs not impaired despite losses
  • GST non-compliance: ₹649.09 lakhs invoices not raised, vendor advances of ₹656.28 lakhs without invoices
  • Going concern uncertainty due to disputes and holding company insolvency

Capital Structure Impact

  • No change in paid-up equity share capital: ₹4,127.90 lakhs
  • Other equity: Negative ₹21,612.98 lakhs (March 2026) vs Negative ₹16,643.64 lakhs (March 2025)
  • Non-controlling interest: ₹907.24 lakhs (March 2026) vs ₹2,701.35 lakhs (March 2025)
  • Significant understatement of liabilities due to unprovided interest and claims

Cash Flow Implications

  • Cash from Operations: ₹2,475.20 lakhs (FY2026) vs ₹3,413.79 lakhs (FY2025)
  • Cash from Investing: Negative ₹1,149.03 lakhs (FY2026) vs Negative ₹2,961.37 lakhs (FY2025)
  • Cash from Financing: Negative ₹187.49 lakhs (FY2026) vs ₹946.96 lakhs (FY2025)
  • Cash Equivalents: ₹4,757.98 lakhs (March 2026) vs ₹3,619.30 lakhs (March 2025)
  • CIRP costs funded by PNB: ₹72 lakhs (ex-GST) for period July 11, 2024 to March 31, 2026

Management Commentary

Management disputes most audit qualifications, citing:

  • CIRP process will determine final liabilities
  • Disputed claims are not legally enforceable
  • Going concern appropriate due to business revival expectations
  • Impairment testing deferred until CIRP outcome
  • Managerial remuneration approved under Company Act provisions