Simbhaoli Sugars Limited , a prominent player in the sugar industry, has officially notified stock exchanges about a significant change in their statutory auditors. The announcement was made on August 27, 2025, as part of the company's commitment to transparency and regulatory compliance.

Key Details of the Announcement

Regulatory Compliance

The company's action is in line with the Securities and Exchange Board of India (SEBI) Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. This circular likely pertains to guidelines or requirements regarding changes in statutory auditors for listed companies.

Disclosure and Transparency

Simbhaoli Sugars Limited has submitted relevant disclosures regarding the change in statutory auditors to both the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. This move underscores the company's adherence to regulatory requirements and its commitment to keeping shareholders and the market informed about significant corporate developments.

Significance of the Change

A change in statutory auditors is a notable event for any publicly listed company. Statutory auditors play a crucial role in ensuring the accuracy and reliability of a company's financial statements. This change could potentially bring a fresh perspective to the auditing process of Simbhaoli Sugars Limited.

Next Steps

Investors and stakeholders of Simbhaoli Sugars Limited may want to keep an eye out for any further announcements or disclosures regarding the new statutory auditors. The company's future financial reports and audits will be conducted under the supervision of the newly appointed auditors.

The market will be watching closely to see if this change in statutory auditors leads to any significant shifts in the company's financial reporting practices or if it results in any material restatements of previous financial statements.

Shareholders and potential investors are advised to conduct their own due diligence and consult with financial advisors before making any investment decisions based on this information.

Simbhaoli Sugars Limited is grappling with significant challenges in its financial reporting processes, as revealed in a recent corporate filing. The sugar manufacturer, currently undergoing Corporate Insolvency Resolution Process (CIRP), has cited multiple factors contributing to delays in submitting its financial statements.

Insolvency Process and Management Changes

The company entered CIRP on July 11, following an order from the National Company Law Tribunal (NCLT), Allahabad bench. As per the Insolvency and Bankruptcy Code, 2016, the management of Simbhaoli Sugars is now vested with the Interim Resolution Professional (IRP), Mr. Anurag Goel. Consequently, the powers of the company's Board of Directors have been suspended and transferred to the IRP.

Legal Challenges

Adding to the complexity, one of the company's promoters, Ms. Gursimran Kaur Mann, has filed an appeal against the NCLT order with the National Company Law Appellate Tribunal (NCLAT) in New Delhi. On July 24, the NCLAT issued an interim order directing that no further steps be taken in pursuance of the NCLT's order. The matter remains sub-judice, creating uncertainty around the company's governance.

Staff Attrition and Reporting Challenges

A significant exodus of senior finance and accounts department employees has severely impacted Simbhaoli Sugars' financial reporting capabilities. These departures have created hurdles in:

• Preparing annual and quarterly standalone and consolidated financial statements
• Coordinating with subsidiary companies

While the IRP has initiated steps to fill these positions, the onboarding and adaptation of new employees are taking time, further delaying the financial statements.

Specific Reporting Issues

The company is facing several reporting challenges:

1. Consolidated Statements: Technical issues related to previous years are affecting the preparation of consolidated financial statements.

2. Quarterly Statements: The process of receiving financial statements from subsidiary companies is ongoing. One subsidiary, ICCPL, has already provided its statements.

3. Standalone Financial Statements: The audit process for standalone financial statements is underway but progressing slowly due to staff attrition.

Steps Towards Resolution

Simbhaoli Sugars has outlined its plans to address these issues:

1. Resolve technical issues affecting the consolidated financial statements.
2. Complete the audit process for standalone financial statements.
3. Consolidate and audit the financial statements of all subsidiaries.

The company has committed to informing the stock exchanges once these processes are completed and the financial statements are ready for publication.

As Simbhaoli Sugars navigates through these challenging times, stakeholders will be closely watching how quickly the company can resolve its reporting issues and provide a clear picture of its financial position.