Sanwaria Consumer Limited, a company currently under Corporate Insolvency Resolution Process (CIRP), has released its unaudited financial results for the first quarter. The company's performance shows a slight decline in revenue but an improvement in net loss compared to the same period last year.

Financial Highlights

• Paid-up Equity Share Capital: Rs 7,361.00 lakhs
• Negative Reserves: Rs 66,563.64 lakhs

Performance Analysis

Despite a marginal decrease in revenue, Sanwaria Consumer Limited has managed to reduce its net loss by approximately 22.40% compared to the same quarter in the previous year. This improvement in the bottom line, despite lower revenue, suggests that the company may have implemented some cost-cutting measures or improved operational efficiencies.

Corporate Insolvency Resolution Process

It's important to note that Sanwaria Consumer Limited continues to operate under the Corporate Insolvency Resolution Process, as per the National Company Law Tribunal (NCLT) order dated May 29, 2020. This status indicates that the company is still working through its financial challenges under the supervision of the NCLT.

Financial Position

The company's financial position remains precarious, with significant negative reserves of Rs 66,563.64 lakhs against a paid-up equity share capital of Rs 7,361.00 lakhs. This substantial negative reserve highlights the ongoing financial struggles of the company and the challenges it faces in achieving a turnaround.

Market Listing

Sanwaria Consumer Limited maintains its listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), providing liquidity options for its shareholders despite its current financial situation.

Looking Ahead

While the reduction in net loss is a positive sign, Sanwaria Consumer Limited still faces significant challenges. The ongoing CIRP and the company's negative reserves indicate that there is still a long road ahead for financial recovery and stability. Stakeholders and potential investors should closely monitor the progress of the insolvency resolution process and any strategic decisions made to address the company's financial health.

As the company navigates through its financial restructuring, future quarters will be crucial in determining whether Sanwaria Consumer can sustain this trend of reducing losses and potentially return to profitability.

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:

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:

1. 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.

2. A full assessment of impairment in the value of tangible assets, as required by accounting standards, has not been conducted.

3. 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.