Tasty Dairy Specialities

Tasty Dairy Specialities Limited approved unaudited standalone financial results for the quarter ended June 30, 2025. The dairy company, which manufactures ghee, butter, milk powder and packaged milk products, continues to face significant financial challenges. The company reported continuous losses across previous year, previous quarter and current quarter. Lenders have initiated recovery proceedings under SARFAESI Act through NCLT and DRT after restructuring plan payments became overdue. All bank accounts remain frozen since November 2023, forcing the company to route transactions through third parties including related parties. The company's net-worth has turned negative, and manufacturing activities ceased in the last quarter. Banks credited Rs 2,980.74 lakhs from recovery proceedings during FY 2024-25. Management has made provisions for trade receivables of Rs 3,751.67 lakhs during FY 2024-25. Despite these challenges, management continues operations on going concern basis, citing cost-saving measures, ongoing lender negotiations for revival/settlement plan, and expected promoter fund infusion. The auditors issued a qualified conclusion citing material uncertainty about the company's ability to continue as going concern and non-compliance with Indian Accounting Standards.