Siti Networks Limited, a company currently undergoing Corporate Insolvency Resolution Process (CIRP), has reported a standalone net loss of ₹437.64 million for the quarter ended June 30. This loss, while significant, shows a slight improvement from the ₹530.17 million loss recorded in the previous quarter.

Financial Performance

The company's financial results, as approved by the Resolution Professional and CEO, reveal a challenging fiscal landscape:

The revenue from operations saw a marginal decline to ₹799.55 million from ₹818.25 million in the prior quarter.

Insolvency Proceedings and Financial Position

Siti Networks has been under CIRP since February 2023, with operations being managed by a Resolution Professional. The company's financial health remains precarious:

• Negative net worth of ₹13,380.37 million
• Negative working capital of ₹17,278.93 million
• Financial creditors' claims of ₹12,060.33 million, with ₹11,292.66 million admitted

Consolidated Performance

On a consolidated basis, the group reported:

• Net loss of ₹441.32 million
• Revenue from operations at ₹2,706.76 million

Auditor's Observations

The statutory auditors have disclaimed their opinion on the financial results, citing multiple uncertainties related to the insolvency proceedings. Key points from the auditor's report include:

• Ongoing litigations and appeals regarding the CIRP process
• Non-provision of additional and penal interest on loans classified as Non-Performing Assets
• Discrepancies in claims submitted by creditors and balances in books
• Concerns over the company's ability to continue as a going concern

Management's Stance

Despite the financial challenges, the management has prepared the financial statements on a going concern basis, citing the ongoing CIRP process. However, the auditors have expressed inability to obtain sufficient evidence regarding the use of this assumption.

Regulatory Compliance

The company has stated that the financial results have been prepared in accordance with the Indian Accounting Standards and SEBI regulations. However, the auditors have raised concerns about the presentation of certain revenue items, particularly the inclusion of broadcasters' share in subscription income.

As Siti Networks navigates through its insolvency process, the outcome of the ongoing resolution efforts will be crucial for its future operations and financial stability. Stakeholders will be closely monitoring the developments in the CIRP and any potential resolution plans that may emerge.

Siti Networks Limited , a player in the Indian cable TV and broadband services sector, has disclosed defaults on term loan instalments to multiple lenders in its latest SEBI compliance filing dated December 31, 2025. The company reported total outstanding claims of ₹1,500 crores as it continues to navigate through Corporate Insolvency Resolution Process (CIRP).

Default Disclosure Details

In compliance with SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/2019/140, Siti Networks reported defaults on term loan instalments with a default date of November 30, 2025. The defaults continue beyond the 30-day threshold, triggering mandatory disclosure requirements.

Lender-wise Outstanding Claims

The company's financial obligations are distributed across multiple lenders, with claims varying significantly between the initial CIRP filing and subsequent assessments:

Ongoing Insolvency Proceedings

The Corporate Insolvency Resolution Process was initiated by the National Company Law Tribunal (NCLT) Mumbai Bench on February 22, 2023, with Mr. Rohit Mehra appointed as the Interim Resolution Professional. The process has been marked by extensive legal challenges and appeals.

Key Legal Developments

• NCLAT Appeal: Ms. Shilpi Asthana, director of Siti Networks, filed an appeal against the admission order, which was initially stayed but later dismissed on August 10, 2023
• Supreme Court Proceedings: Multiple appeals are currently pending before the Supreme Court regarding financial creditor claims and payment obligations
• Stay Orders: The Supreme Court has granted stay to financial creditors from remitting amounts received during the CIRP stay period

Related Party Transactions

A significant development involves Zee Entertainment Enterprise Limited (ZEEL), whose financial creditor claim has been assigned to Vani Agencies Private Limited (VAPL) on July 2, 2024. The Resolution Professional has admitted VAPL's claim as financial debt and classified it as a related party transaction under the Insolvency and Bankruptcy Code, 2016.

Current Status and Implications

The substantial outstanding claims and ongoing legal complexities continue to pose significant challenges for Siti Networks. The company's operational capabilities remain under stress as multiple stakeholders await resolution of the insolvency proceedings. The Supreme Court's directions regarding payment restrictions to operational creditors during the CIRP stay period add another layer of complexity to the resolution process.