Shree Hanuman Sugar & Industries reported a 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. The company, which has ceased operations since FY 2012-13, is currently undergoing the Corporate Insolvency Resolution Process (CIRP) initiated by the Stressed Assets Stabilization Fund. The auditors, BDS & Co., issued a qualified opinion on the financial results, citing significant material uncertainties and non-compliances that impact the accuracy of the reported figures.

The statutory auditor's report highlights that the company has not complied with Ind AS 19 regarding gratuity and leave liabilities, nor has it provided for depreciation on fixed assets since 2014. Additionally, the company failed to deduct or deposit Tax Deducted at Source (TDS) up to March 2022 and has not provided for interest expenses on borrowings. Due to these issues, the auditors stated that the operating results are overstated or understated to the extent of these unascertained impacts.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹19.60 lakh. Total income for the year stood at ₹4.35 lakh, entirely derived from other income, while revenue from operations remained nil. Total expenses for the year increased to ₹93.77 lakh from ₹42.83 lakh in the prior year. The company reported a basic and diluted loss per share of ₹0.48 for FY26, compared to ₹0.23 in FY25.

Asset and Liability Position

The company's total assets stood at ₹23,913.76 lakh as of March 31, 2026, slightly down from ₹23,962.51 lakh in the previous year. Non-current assets, primarily comprising plant, property, and equipment, were valued at ₹23,724.19 lakh. Current liabilities totaled ₹8,727.38 lakh, including borrowings of ₹5,583.90 lakh and trade payables of ₹577.34 lakh. The net worth of the company was reported at ₹15,186.38 lakh.

Audit Qualifications and Going Concern

The auditors raised serious concerns regarding the company's ability to continue as a going concern. The plant has been inoperative since 2012-2013, and no physical verification of assets has taken place since then to assess potential impairment. The Resolution Professional has submitted a resolution plan to the Hon'ble NCLT Kolkata Bench, but the company's future depends on the approval of this plan.

Other significant qualifications include the non-confirmation of balances for borrowings, loans, and trade payables due to pending disputes and lack of reconciliation. The auditors also noted that management wrote off payables and receivables based solely on board resolutions without providing supporting documentation. Consequently, the financial statements have been prepared on a non-going concern basis.

Shree Hanuman Sugar & Industries Limited 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 audited standalone financial results were reviewed by the Committee of Creditors on May 27, 2026, and subsequently published in newspapers on June 2, 2026, under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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.