Sanwaria Consumer Limited Reports Q1 FY26 Results Amid Ongoing Liquidation Process
Sanwaria Consumer Limited, under Corporate Insolvency Resolution Process (CIRP), released Q1 FY26 results. The company reported a net loss of Rs. 7,624,579 and total income of Rs. 8,650,357. The Committee of Creditors has decided to liquidate the company after no resolution plans were approved. Sanwaria continues limited operations under Resolution Professional supervision, focusing on warehousing, leasing, and job work. Financial reporting challenges persist due to the insolvency process, including non-recognition of interest payables and lack of full impairment assessment.
*this image is generated using AI for illustrative purposes only.
Sanwaria Consumer Limited , a company currently under Corporate Insolvency Resolution Process (CIRP), has released its unaudited standalone and consolidated financial results for the quarter ended June 30, 2025. The company, which has been facing financial challenges, continues to operate with limited commercial activities under the supervision of a Resolution Professional.
Financial Performance
For the quarter ended June 30, 2025, Sanwaria Consumer Limited reported the following key financial figures on a standalone basis:
| Particulars | Q1 FY26 (Rs.) |
|---|---|
| Net Loss | 7,624,579.00 |
| Total Income | 8,650,357.00 |
It's important to note that the company has adopted a cash basis accounting policy, which means certain cumulative expenses totaling approximately Rs. 24.39 crore have not been provided for in the books of accounts as they remain unpaid.
Insolvency Proceedings
The company has been under CIRP since May 29, 2020, following a petition filed by creditor Kishor Ramniklal Unadikat. Mr. Gautam Mittal currently serves as the Resolution Professional, having replaced the initial appointee.
Resolution Plans and Liquidation Decision
The Resolution Professional had invited expressions of interest for the company's revival, receiving five eligible submissions. However, none of the resolution plans were approved by the Committee of Creditors (CoC). Consequently, the CoC has decided to liquidate the company, and an application for initiating the liquidation process has been filed with the National Company Law Tribunal (NCLT).
Limited Operations
Under the supervision of the Resolution Professional and the Committee of Creditors, Sanwaria Consumer Limited continues to engage in limited commercial activities, primarily focusing on warehousing, leasing, and job work.
Financial Reporting Challenges
Due to the ongoing insolvency process, the company faces several challenges in financial reporting:
The company has not recognized interest payable on borrowings from banks, financial institutions, customer advances, and inter-corporate deposits received after the insolvency commencement date.
A full assessment of impairment in the value of tangible assets, as required by accounting standards, has not been conducted.
The carrying value of tangible assets as of June 30, 2025, stands at Rs. 575.13 crore.
Conclusion
As Sanwaria Consumer Limited navigates through the insolvency process and moves towards liquidation, stakeholders are advised to monitor further developments closely. The company's financial position remains challenging, and the outcome of the liquidation process will be crucial in determining the future course of action for all parties involved.
Disclaimer: This article is based on the unaudited financial results and corporate filings of Sanwaria Consumer Limited. Investors and stakeholders should conduct their own due diligence before making any financial decisions.
Historical Stock Returns for Sanwaria Consumer
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -3.70% | -10.34% | -33.33% | -44.68% | -56.67% |
15
