Simbhaoli Sugars Limited has secured regulatory approval to extend the deadline for holding its Annual General Meeting (AGM) for FY26 by three months. The new cutoff date is now December 31, 2026.

The company is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. This process began on July 11, 2024, following an order by the adjudicating authority.

Governance Under Insolvency

Since the initiation of CIRP, the powers of the Board of Directors have been suspended. These powers now vest with the Interim Resolution Professional (IRP) or Resolution Professional (RP), as per Sections 17 and 23 of the IBC 2016.

Mr. Anurag Goel was appointed as the IRP on July 11, 2024. He manages the company’s assets and operations in accordance with the code’s provisions.

Regulatory Compliance

The application for the AGM extension was filed through e-Form GNL-2 with the SRN AC5803702. This filing was made pursuant to Ministry of Corporate Affairs General Circular No. 8/2020 dated March 6, 2020.

The Registrar of Companies, Noida, has approved the form and taken it on record. Jagriti Sharma, Company Secretary and Compliance Officer, confirmed the approval on September 21, 2026.

Simbhaoli Sugars Limited reported a widened consolidated net loss of ₹2,534.53 lakh for the quarter ended June 30, 2026, compared to ₹2,243.24 lakh in the same period last year. The company’s independent auditors issued an adverse conclusion on the financial results, citing pervasive accounting irregularities and significant uncertainties regarding its ability to continue as a going concern.

The results were taken on record by Interim Resolution Professional (IRP) Anurag Goel on August 26, 2026, following the resumption of the Corporate Insolvency Resolution Process (CIRP) after the National Company Law Appellate Tribunal (NCLAT) dismissed promoter appeals on July 13, 2026. The financials were certified by Chief Financial Officer Dayal Chand Popli and published in Business Standard on August 27, 2026.

Financial Performance

Consolidated revenue from operations declined 37.1% year-on-year to ₹14,611.07 lakh, down from ₹23,247.21 lakh in Q1FY26. The drop was driven by lower availability of sugarcane and underutilization of plant capacity during the 2025-26 crushing season.

Segment-wise, sugar revenue fell to ₹11,190.15 lakh from ₹16,841.36 lakh, while distillery revenue dropped to ₹3,401.63 lakh from ₹8,023.56 lakh. Power segment revenue was negligible at ₹76.85 lakh. All three core segments—Sugar, Distillery, and Power—reported operating losses for the quarter.

Auditor’s Adverse Conclusion

B.K. Kapur & Co highlighted multiple material misstatements in their limited review report:

• Unprovided Interest Liabilities: The company did not provide for interest expenses on bank borrowings amounting to ₹9,350.66 lakh for the quarter. Cumulative unprovided interest up to June 30, 2026, stands at ₹2,19,371.02 lakh.
• Subsidiary Disputes: Statutory auditors of subsidiary Integrated Casetech Consultants Pvt Ltd issued an adverse opinion due to unrecognized provisions for disputed unbilled revenue (₹492.42 lakh) and overdue receivables (₹282.65 lakh).
• Power Subsidiary Issues: Simbhaoli Power Private Ltd received a disclaimer of conclusion due to non-operational plants, bagasse pricing disputes with the holding company, and going concern doubts.
• Going Concern Doubts: The holding company has negative net worth and negative working capital. The Punjab National Bank had declared the account as fraud, though this was later set aside by high courts.

What the Numbers Show

The divergence between reported net loss and actual economic burden is stark. While the P&L shows a net loss of ₹2,534.53 lakh, the auditor notes that net loss is understated by at least ₹9,350.66 lakh due to non-provisioning of bank interest. This indicates that the operational losses are significantly masked by accounting treatments permitted during the CIRP period, where interest accruals are often deferred pending resolution plan approval.

Regulatory and Operational Updates

• CIRP Progress: The first Committee of Creditors (CoC) meeting was held on July 23, 2026. The second meeting concluded on August 13, 2026.
• Management Appointment: Yogendra Pal Arya was appointed as Corporate Head – Human Resource.
• Legal Challenges: The Supreme Court dismissed the suspended board’s appeal against the CIRP on August 7, 2026. Enforcement Directorate attachment orders on assets worth ₹109.80 crore remain under appeal in the Allahabad High Court.
• Environmental Compliance: Central Pollution Control Board directions to stop distillery operations have been conditionally revoked, allowing resumption pending compliance.