Tasty Dairy Specialities Limited , currently operating under Corporate Insolvency Resolution Process (CIRP), has released its unaudited financial results for the quarter ended September 30, 2025. The company continues to face significant financial challenges, raising concerns about its ability to operate as a going concern.

Financial Performance

The company reported a net loss for the quarter, reflecting the ongoing difficulties in its operations. Here's a summary of the key financial metrics:

Operational Challenges

Tasty Dairy Specialities is grappling with several operational issues:

1. Frozen Bank Accounts: All of the company's bank accounts have been frozen since November 2023, severely restricting normal operations. The company is resorting to routing transactions through third parties, including related parties.

2. Negative Net Worth: The company's net worth has turned negative, standing at ₹(3,385.30) lakhs as of September 30, 2025.

3. Overdue Loans: The company has failed to meet its loan obligations, with lenders initiating recovery proceedings under the SARFAESI Act through the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT).

4. Asset Sale: During FY 2024-25, a bank sold hypothecated property worth ₹26.81 crores and adjusted the proceeds against the loan. The company has challenged this action before the DRT.

Insolvency Proceedings

Tasty Dairy Specialities is currently under the Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code 2016. The company's affairs, business, and assets are being managed by the Resolution Professional, Mr. Anish Agarwal, appointed by order dated October 7, 2025.

Auditor's Concerns

The company's auditors, Neha B Agarwal And Co, have raised several concerns in their limited review report:

1. Non-compliance with certain Ind AS requirements
2. Unconfirmed and unreconciled balances of sundry debtors, creditors, loans, and advances
3. Material uncertainty casting significant doubt on the company's ability to continue as a going concern

Management's Stance

Despite the challenges, the management is actively engaged in negotiations with lenders for a revival or settlement plan. They are also implementing cost-saving measures and working on improving operational efficiency.

The company's ability to continue as a going concern remains uncertain, given the ongoing insolvency proceedings and financial difficulties. Investors and stakeholders are advised to closely monitor further developments in the company's restructuring efforts and legal proceedings.

Tasty Dairy Specialities Limited , a prominent player in the dairy industry, has entered the Corporate Insolvency Resolution Process (CIRP) following an order by the National Company Law Tribunal (NCLT), Allahabad bench. The development comes after Punjab National Bank (PNB) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, citing a substantial financial debt.

Key Details of the Insolvency Proceedings

The NCLT's order, dated October 7, 2025, reveals several crucial aspects of the case:

Background of the Financial Relationship

The financial relationship between Tasty Dairy Specialities and Punjab National Bank dates back to 2003 when the bank initially sanctioned facilities worth Rs. 1.20 crore. Over time, these facilities were enhanced, ultimately reaching Rs. 72.59 crore by February 2021.

COVID-19 Impact and Restructuring Attempts

During the COVID-19 pandemic, Tasty Dairy Specialities availed various relief schemes offered by the government. These included:

1. Funded Interest Term Loan (FITL) under RBI guidelines
2. COVID Emergency Credit Facility (CECF) Loan
3. Guaranteed Emergency Credit Line (GECL) 2.0

Despite these measures, the company struggled to maintain its financial obligations. A restructuring attempt was made in August 2022, with the bank approving a restructuring of the existing debt into sustainable (Rs. 59.67 crore) and unsustainable (Rs. 12.21 crore) portions. However, this restructuring was declared failed on June 30, 2023, due to non-compliance with terms and conditions.

Legal Proceedings and Recovery Efforts

Prior to the insolvency application, Punjab National Bank had initiated several steps to recover the dues:

• Issued demand notices under the SARFAESI Act
• Filed an Original Application (OA) before the Debt Recovery Tribunal, Allahabad

Implications of the CIRP

With the commencement of the CIRP:

1. A moratorium has been declared, prohibiting certain actions against the company.
2. The powers of the Board of Directors stand suspended.
3. Mr. Anish Agarwal has been appointed as the Interim Resolution Professional to manage the company's affairs and initiate the resolution process.

Looking Ahead

The initiation of the CIRP marks a critical juncture for Tasty Dairy Specialities Limited. The coming months will be crucial as stakeholders work towards finding a resolution that balances the interests of creditors while potentially salvaging the company's operations.

As the process unfolds, it will be important to monitor the actions of the Committee of Creditors and any potential resolution plans that may emerge. The outcome of this insolvency process could have significant implications not only for the company and its creditors but also for the broader dairy industry in the region.