SAB Events & Governance Now Media Limited has taken a significant step towards addressing its financial challenges by filing an application for a Pre-Packaged Insolvency Resolution Process (PPIRP) with the National Company Law Tribunal (NCLT), Mumbai Bench.

Key Details of the PPIRP Application

Background and Approvals

The company's decision to initiate the PPIRP follows a series of internal approvals:

1. Board of Directors' approval on August 14, 2025
2. Company members' approval on September 25, 2025

About the Financial Creditor

Saturn Fund, the unrelated financial creditor to whom the debt is owed, is registered as an Alternative Investment Fund (AIF) Category II with SEBI. Their registration number is IN/AIF2/19-20/0682.

Implications of PPIRP

The Pre-Packaged Insolvency Resolution Process, introduced under Section 54C of the Insolvency and Bankruptcy Code, 2016, is designed to provide a quicker, cost-effective insolvency resolution framework for corporate debtors classified as micro, small, and medium enterprises (MSMEs).

This move by SAB Events & Governance Now Media Limited indicates the company's proactive approach to addressing its financial obligations and potentially restructuring its debt. The PPIRP could offer the company an opportunity to negotiate with its creditors and formulate a resolution plan that could help in its financial recovery.

As this process unfolds, stakeholders, including investors and creditors, will be keenly watching the developments and their potential impact on the company's future operations and financial health.

SAB Events & Governance Now Media Limited , a company operating in the Digital Media Websites & MICE segment, has announced significant developments in its financial and operational structure. The company's Board of Directors, in a meeting held on August 14, 2025, approved several key measures to address its ongoing financial challenges.

Initiation of Pre-Packaged Insolvency Resolution Process

The Board has approved the initiation of a Pre-Packaged Insolvency Resolution Process (PPIRP) under the Insolvency and Bankruptcy Code, 2016. This decision comes in light of the company's inability to service its debt obligations and the substantial losses incurred in recent quarters. Mr. Kedar Parshuram Mulye, an Insolvency Professional with registration number IBBI/IPA-001/IP-P-01365/2018-2019/12282, has been appointed as the Resolution Professional to oversee the PPIRP.

Financial Performance

For the quarter ended June 30, 2025, SAB Events & Governance Now Media reported a net loss of Rs. 24.30 lakhs, showing an improvement from the loss of Rs. 42.00 lakhs in the same period last year. The company's revenue from operations increased significantly to Rs. 40.68 lakhs from Rs. 15.00 lakhs year-over-year, indicating positive momentum in its core business activities.

Key Financial Metrics

Financial Challenges

The company faces significant financial challenges, with current liabilities 4.82 times higher than current assets. This imbalance, coupled with the inability to service debt obligations, has raised material uncertainty regarding the company's ability to continue as a going concern, as highlighted by the auditors.

Increase in Authorized Share Capital

To strengthen its financial position, the Board has approved increasing the authorized share capital from Rs. 11.03 crores to Rs. 32.00 crores, subject to shareholder approval. This increase will primarily affect the equity share capital, potentially allowing the company to raise additional funds in the future.

Appointment of Secretarial Auditors

The company has appointed HRU & Associates as Secretarial Auditors for a term of five years, starting from the financial year 2025-2026 until 2029-2030, subject to member approval.

Auditor's Observations

The company's auditors, P. Parikh & Associates, have highlighted several concerns in their review report:

1. Material uncertainty regarding the company's ability to continue as a going concern.
2. Potential impairment in the value of Goodwill, which stands at Rs. 42.38 Lakhs as of June 30, 2025.
3. Non-provision of interest expenses amounting to approximately Rs. 5.97 Lakhs for the quarter ended June 30, 2025, on outstanding loans.

These developments underscore the financial challenges faced by SAB Events & Governance Now Media Limited and the steps being taken by the management to address these issues. The success of the Pre-Packaged Insolvency Resolution Process and the company's ability to improve its financial position will be crucial for its future operations and sustainability.