Tasty Dairy Specialities Limited , a dairy products manufacturer based in Uttar Pradesh, has reported its unaudited financial results for the quarter ended September 30, 2025, while operating under Corporate Insolvency Resolution Process (CIRP).

Financial Performance

The company's financial results reveal significant challenges:

Tasty Dairy Specialities' total income for Q2 FY2026 stood at ₹109.78 lakhs, marking a substantial decline from ₹647.55 lakhs in the same quarter of the previous year. The net loss for the quarter was ₹205.70 lakhs, compared to a loss of ₹287.83 lakhs in Q2 FY2025.

Ongoing Insolvency Proceedings

The company is currently under the Corporate Insolvency Resolution Process, with Resolution Professional Anish Agarwal managing its affairs. This process was initiated following an order dated October 7, 2025, under the Insolvency and Bankruptcy Code 2016.

Material Uncertainties

Tasty Dairy Specialities faces several material uncertainties that cast significant doubt on its ability to continue as a going concern:

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 financial statements indicate that the company's net worth has become negative.

3. Recovery Proceedings: Lenders have initiated recovery proceedings under the SARFAESI Act. 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 Debt Recovery Tribunal (DRT).

4. Operational Challenges: The company has reported non-payment of statutory dues (ESI, PF, TDS), non-payment of salaries (which are being paid by promoters), and cessation of manufacturing activities.

Management's Response

Despite these 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 management believes that with the conclusion of the ongoing resolution process and improved operational efficiency, the company's situation may improve.

Auditor's Observations

The statutory auditors have expressed a qualified opinion on the financial results, citing concerns about the company's ability to continue as a going concern, non-compliance with certain Indian Accounting Standards, and unconfirmed balances of sundry debtors, creditors, loans, and advances.

As Tasty Dairy Specialities navigates through these challenging times, stakeholders will be closely watching the outcome of the insolvency proceedings and the company's efforts to revive its operations.

Note: The financial figures mentioned are based on the unaudited results for the quarter ended September 30, 2025, as reported by the company.

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.