Oswal Overseas Limited , a sugar manufacturer based in Uttar Pradesh, is facing significant challenges as the Cane Commissioner of Uttar Pradesh has initiated auction proceedings for the company's sugar stock. The action comes in response to the non-payment of sugarcane farmers' dues, amounting to a substantial Rs. 70.34 crore.

Auction Details

The auction, scheduled for September 25, 2025, involves 8,900 quintals of sugar with an estimated value of Rs. 3.55 crore. This development puts Oswal Overseas in a precarious position, potentially impacting its operations and financial standing.

Company's Response

In compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, Oswal Overseas Limited has informed the BSE about this development. The company stated that it is currently evaluating the financial and operational implications of the auction proceedings.

Financial Impact

While the exact financial impact on Oswal Overseas Limited remains uncertain, the company has committed to keeping the exchange informed of any material developments. The quantifiable financial impact cannot be determined at this time, according to the company's disclosure.

Additional Challenges

Adding to the company's woes, recent LODR data reveals that a Financial Creditor has filed an application for the initiation of Corporate Insolvency Resolution Process (CIRP) against Oswal Overseas Limited. The application is currently pending consideration before the National Company Law Tribunal (NCLT).

Regulatory Compliance

It's worth noting that Oswal Overseas Limited faced a query from the BSE regarding a delay in disclosing a material event. The company attributed this to an inadvertent lapse due to delayed internal communication and has reiterated its commitment to timely compliance with SEBI regulations.

As these events unfold, stakeholders will be closely watching how Oswal Overseas Limited navigates these challenges and addresses its financial obligations, particularly to the sugarcane farmers. The outcome of both the sugar stock auction and the pending CIRP application could have significant implications for the company's future operations and financial health.

Oswal Overseas Limited (BSE: OSWALOVER) has responded to a query from the Bombay Stock Exchange (BSE) regarding the Corporate Insolvency Resolution Process (CIRP) initiated by financial creditors. The company provided clarification on the current status of the CIRP application and addressed concerns about the timeliness of its disclosure.

CIRP Application Status

Oswal Overseas confirmed that a financial creditor, L H Sugar Factories Limited, has filed an application for initiating the CIRP against the company. The application was registered on September 1, 2025, with the National Company Law Tribunal (NCLT) under the filing number 0710102076792025. The company emphasized that the matter is currently pending consideration by the NCLT for admission or rejection.

In its response to the BSE, Oswal Overseas stated, "We respectfully submit that the Financial Creditor has filed an application for initiation of the Corporate Insolvency Resolution Process (CIRP) before the Hon'ble National Company Law Tribunal (NCLT). The matter is currently pending consideration of the Hon'ble NCLT for admission or rejection."

Commitment to Transparency

The company has committed to providing immediate updates upon receiving any order or decision from the NCLT. Lalit Kumar, Company Secretary & Compliance Officer of Oswal Overseas Limited, assured stakeholders of the company's dedication to keeping them informed about any developments in the case.

Addressing Disclosure Delay

In addition to clarifying the CIRP application status, Oswal Overseas also addressed a query from the BSE regarding a delay in disclosing the material event. The company acknowledged that there was a delay in submitting the disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Explaining the reason for the delay, the company stated, "The disclosure under Regulation 30 of SEBI (LODR) was submitted with a delay due to an inadvertent lapse arising from delayed internal communication of the event. The delay was unintentional and occurred under exceptional circumstances beyond control."

Assurance of Future Compliance

Oswal Overseas reaffirmed its commitment to maintaining high standards of corporate governance and adhering to statutory timelines. The company assured that all material information and events would be disclosed within the prescribed timelines under SEBI (LODR) regulations going forward.

"The Company has always maintained high standards of corporate governance and has adhered to the statutory timelines in true letter and spirit, and will continue to do so," the company stated in its response to the BSE.

As the CIRP application remains under consideration by the NCLT, stakeholders and investors of Oswal Overseas Limited will be closely monitoring further developments in this matter. The company's proactive approach in addressing the BSE's queries and its commitment to transparency may help in maintaining investor confidence during this period of uncertainty.