Siti Networks Limited has formally explained to the BSE the reasons behind the delay in submitting its financial results for the second quarter of financial year 2025-26, ended September 30, 2025. The company's response, dated December 11, 2025, addresses BSE's inquiry regarding the non-disclosure of reasons for the delayed submission.

Corporate Insolvency Resolution Process Impact

The primary factor affecting the company's financial reporting timeline is the ongoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated by the National Company Law Tribunal, Mumbai Bench through its order dated February 22, 2023, later confirmed by the National Company Law Appellate Tribunal on August 10, 2023.

Upon admission into CIRP, the powers of the Board of Directors stand suspended, with management responsibilities transferred to the Resolution Professional. This fundamental change in corporate governance has significantly impacted the company's operational processes, including financial reporting mechanisms.

Operational Challenges and Resource Constraints

The CIRP process has created substantial operational challenges that directly affect financial statement preparation. The resolution process involves meticulous procedures including transaction audits, valuations, claim verifications, and comprehensive legal and financial assessments. These activities have absorbed considerable time and focus from the finance department, creating resource allocation challenges.

A critical development has been the resignation of several key personnel from the finance and audit teams responsible for preparing financial statements. These departures have created knowledge gaps and workflow disruptions, contributing significantly to the delay in completing the required financial documentation.

Subsidiary Company Complications

Siti Networks Limited operates with 23 subsidiary companies, adding complexity to its consolidated financial statement preparation. One subsidiary, Siti Broadband Services Private Limited, is currently undergoing its own CIRP process, creating additional complications for the parent company's reporting requirements.

The company faces delays in receiving financial statements from several subsidiary companies, which are essential for preparing consolidated financial statements. This interdependency has created a cascading effect on the overall timeline for financial reporting completion.

Timeline and Compliance Commitment

Despite these challenges, Siti Networks Limited has provided a clear timeline for resolution. The company anticipates submitting the second quarter financial results by January 31, 2026. This extended timeline allows for comprehensive review and ensures accurate representation of the company's financial status while maintaining compliance with regulatory requirements.

The company has emphasized its commitment to meeting regulatory obligations under SEBI Listing Regulations and has assured stakeholders of continued updates on progress. The management acknowledges the complexity involved in aligning financial statements with ongoing CIRP proceedings while ensuring accuracy and transparency in reporting.

Siti Networks Limited's situation highlights the significant operational and reporting challenges faced by companies undergoing insolvency resolution processes, where maintaining regulatory compliance becomes increasingly complex amid restructuring activities and resource constraints.

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.