Simbhaoli Sugars Limited disclosed the resignation of the statutory auditor for its material subsidiary, Simbhaoli Power Private Limited (SPPL), effective for the financial year 2026-27. The resignation was communicated via a letter dated May 29, 2026, and the information was received by the company on June 4, 2026. The development impacts the audit oversight of SPPL, a key subsidiary of the listed holding company.

MSK A & Associates LLP (Formerly known as M S K A & Associates) cited internal quality control policies as the primary reason for stepping down. The firm stated that under the framework of SQC 1, which governs quality control for audit and review engagements, it regularly evaluates client and engagement acceptance or continuance. Following this evaluation for the financial year 2026-27, the firm determined it could not continue as the statutory auditors.

The auditor had been appointed to serve SPPL for the financial years beginning April 1, 2022, and ending March 31, 2027, at the Annual General Meeting held on December 30, 2022. Prior to the resignation, the firm completed the audit for the financial year 2025-26. However, the audit report issued on May 29, 2026, contained a disclaimer of opinion on the financial statements for the year ended March 31, 2026.

The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Simbhaoli Sugars Limited is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, effective July 11, 2024. The powers of the Board of Directors stand suspended during this period.

Auditor and Resignation Details

The following table outlines the key details regarding the auditor's association and the resignation:

The auditor confirmed in the filing that there were no material reasons for the resignation other than those stated regarding the evaluation of continuance. The firm also noted that no efforts were required to be made prior to resignation by approaching the Audit Committee or Board of Directors, as the decision stemmed from internal quality control protocols.

Simbhaoli Sugars Limited has published its Consolidated Unaudited Financial Results for the quarters ended June 30, 2025, September 30, 2025, and December 31, 2025, along with the Audited Financial Results for the year ended March 31, 2026. The publication, which appeared in Business Standard (English) and Business Standard (Hindi) on May 30, 2026, follows the review and certification of these results by the Interim Resolution Professional (IRP), Mr. Anurag Goel, and the Chief Financial Officer, Mr. Dayal Popli. The company is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, with the Board of Directors' powers suspended since July 11, 2024.

Financial Performance Overview

The unaudited consolidated financial results for the reported periods reflect a challenging financial environment for the company. For the quarter ended December 31, 2025, the company reported a total income from operations of ₹20,938.99 lakh and a net loss of ₹14.21 lakh. In the half-year ended September 30, 2025, the total income stood at ₹43,406.72 lakh with a net loss of ₹53.67 lakh. The audited results for the full year ended March 31, 2026, showed a total income from operations of ₹99,669.05 lakh and a net loss of ₹19.81 lakh.

Key Financial Metrics

The following table summarizes the key financial figures for the periods ended December 31, 2025, and March 31, 2026:

Regulatory and Procedural Details

The financial statements of the material subsidiary, SPPL, for certain previous periods were not audited during the relevant reporting periods, leading to inconsistencies in comparative figures. Consequently, the unaudited consolidated financial results have not been considered and recommended by the Audit Committee or the Board of Directors. However, the results were certified by the CFO and taken on record by the IRP solely for the purpose of ensuring compliance by the Corporate Debtor with applicable laws. The IRP has relied upon the certifications and representations of the management and officials of the Corporate Debtor.