Shree Hanuman Sugar & Industries reported a widened net loss of ₹89.42 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹42.37 lakh in the previous year, as operations remained non-operational. The company, currently under the Corporate Insolvency Resolution Process (CIRP), recorded zero revenue from operations for the quarter ended March 31, 2026, while total expenses stood at ₹19.60 lakh for the quarter and ₹93.77 lakh for the full year. The statutory auditor, BDS & Co., issued a qualified opinion on the financial results, highlighting significant non-compliances and material uncertainties regarding the company's future.

The auditors identified multiple instances of non-compliance, including the failure to deduct tax at source (TDS) under sections 192 and 194 of the Income Tax Act, 1961, up to March 2022. The company also did not comply with Ind AS 19 regarding the accounting of gratuity, leave liabilities, and other retirement benefits, nor did it provide for depreciation on fixed assets since 2014. Additionally, interest expenses on borrowings and advances received from parties were not provided for, and no interest was charged on loans and advances given, leading to non-compliance with sections 73 to 76 of the Companies Act, 2013.

The financial statements reflect a material uncertainty related to the company's status as a going concern. The plant has been inoperative since 2012-13 due to technical problems and a gap between production costs and realization. The company was admitted into the CIRP initiated by the Stress Assets Stabilization Fund, with the interim resolution process communicated on September 30, 2024. While a Resolution Plan has been submitted to the Hon'ble NCLT Kolkata Bench, the auditors stated that the financial statements should be prepared on a non-going concern basis due to the incurred cash loss of ₹89.42 lakh in the current year.

Financial Performance

The company's standalone financial results for the quarter and year ended March 31, 2026, show a continued lack of operational income. For the quarter ended March 31, 2026, the company reported a net loss of ₹19.60 lakh, widening from a loss of ₹26.02 lakh in the corresponding quarter of the previous year. The basic and diluted loss per share for the year stood at ₹0.48, compared to ₹0.23 in the prior year.

Assets and Liabilities

The standalone statement of assets and liabilities as of March 31, 2026, shows total assets at ₹23,913.76 lakh, a marginal decrease from ₹23,962.51 lakh in the previous year. Non-current assets remained stable at ₹23,768.98 lakh, primarily comprising plant, property, and equipment. Current assets decreased to ₹144.78 lakh from ₹193.53 lakh, largely due to a reduction in cash and cash equivalents to ₹6.44 lakh from ₹66.32 lakh.

On the liabilities side, total equity and liabilities stood at ₹23,913.76 lakh. Equity decreased slightly to ₹15,186.38 lakh from ₹15,275.80 lakh, while current liabilities increased to ₹8,727.38 lakh from ₹8,686.71 lakh. The company's borrowings remained unchanged at ₹5,583.90 lakh.

Segment Reporting

The company operates in two segments: Sugar and Construction. For the year ended March 31, 2026, the Sugar segment reported a net loss of ₹89.42 lakh, while the Construction segment recorded no activity. Total segment assets for the Sugar segment were reported at ₹23,913.76 lakh, with segment liabilities at ₹8,727.38 lakh. The Sugar Mill at Motihan, Bihar, remained non-operational and closed during the year due to cost ineffectiveness, financial crunch, and labour unrest.

Shree Hanuman Sugar & Industries Limited has submitted its Annual Secretarial Compliance Report (ASCR) for the year ended 31st March, 2026, as examined by Practicing Company Secretary Nupur Mimani (ACS No.: A37847, C.P. No.: 16805). The report, dated 13/05/2026, was prepared in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and covers the company's compliance status across multiple SEBI regulations during the review period. Notably, the company has been undergoing Corporate Insolvency Resolution Process (CIRP) since 27th September 2024, pursuant to an order by the Hon'ble NCLT, Kolkata Bench.

CIRP Status and Regulatory Implications

With the initiation of CIRP on 27th September 2024, the powers of the Board of Directors stand suspended, and all authority has been vested in the Resolution Professional (RP). As a consequence, pursuant to sub-regulations (2A) and (2B) of Regulation 15 of SEBI LODR Regulations, 2015, the provisions of Regulations 17, 18, 19, 20, and 21 — covering Board composition, Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee — are not applicable to the company during the insolvency resolution process period.

Key Non-Compliance and Regulatory Action

The report identifies one instance of non-compliance during the review period. The following table summarises the deviation and the action taken:

The management has acknowledged the non-compliance, attributing it to the suspension of the Board and the ongoing CIRP, with the Resolution Professional stated to be in the process of addressing the regulatory requirement.

Affirmations Under BSE Circular

In accordance with BSE Circular Reference No. 20230410-41 dated April 10, 2023, the Practicing Company Secretary has provided affirmations on key compliance parameters. The table below presents the compliance status across all assessed areas:

Key observations from the affirmations include:

• Secretarial Standards (Sr. No. 1): Marked as No, indicating non-compliance with applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI).
• Performance Evaluation (Sr. No. 7): Marked as No, as the company was unable to conduct performance evaluation of the Board, Independent Directors, and Committees given the CIRP status.
• Subsidiaries (Sr. No. 5) and Related Party Transactions (Sr. No. 8): Marked as NA — the company has no subsidiaries, and related party transaction provisions were not applicable during the review period.
• Additional Non-Compliances (Sr. No. 12): The PCS noted that no Company Secretary was appointed during the year under review.

Regulations Examined

The ASCR covered compliance with the following SEBI regulations, with certain regulations noted as not applicable during the review period:

• SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
• SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
• SEBI (Buyback of Securities) Regulations, 2018 — Not Applicable
• SEBI (Share Based Employee Benefits) Regulations, 2014 — Not Applicable
• SEBI (Issue and Listing of Debt Securities) Regulations, 2008 — Not Applicable
• SEBI (Issue and Listing of Non-Convertible and Redeemable Preference Shares) Regulations, 2013 — Not Applicable
• SEBI (Prohibition of Insider Trading) Regulations, 2015
• SEBI (Depositories and Participant) Regulations, 2018

The report was signed by Nupur Mimani, Practicing Company Secretary, from Kolkata, with UDIN: A037847H000348289 and Peer Review No. 5781/2024. No actions were taken by SEBI or stock exchanges beyond those already disclosed, and no previous compliance observations were pending for action.