Dharani Sugars & Chemicals Ltd

Financial results and reporting

• Unaudited standalone results for quarter ended 30 June 2026 approved; segment report included.
• Limited Review Report by auditors accompanying the results.

Going concern and restructuring disclosures

• Company has accumulated losses and negative net worth; revival plans underway.
• Auditor notes material going concern uncertainty; management pursuing revival measures.
• MRA canceled; unsustainable debt of INR 33,465 Lakhs payable; contingent liability retained.
• SDF OTS canceled; original liability with interest payable; adjustments under evaluation.
• Default on I Heart Properties loan; outstanding INR 2,996.21 Lakhs; settlement terms unclear.
• Directors and related party loans total INR 21,633.56 Lakhs as of 30 June 2026.
• Vendor MSME classification under review; some MSME dues unpaid; settlement efforts ongoing.
• Trading of equity shares suspended since July 3, 2023; steps to regularise trading.
• No subsidiary/associate/joint venture as of 30 June 2026.

Capital structure and assets

• Unsecured loans from corporate entities in quarter: INR 223.03 Lakhs.
• Investment in Appu Hotels Limited carrying amount INR 1,455.39 Lakhs; fair value under Ind AS 113 being assessed.
• Equity shares issued under NARCL debt resolution: 8,314,328 shares; dematerialisation/listing pending.
• Inter-Corporate loan interest and director loans not accrued per Master Restructuring Agreement.

Auditor remarks and regulatory status

• Srivatsan & Associates: limited review; going concern caveat noted; not an audit opinion.

Default details

• Nature of defaulted obligation: loans from banks/financial institutions including revolving facilities.
• Date of default: 30 June 2026.
• Current default amount: 15.09 crore.
• Total principal amount of the obligation: 338.35 crore.
• Total outstanding borrowings from banks/financial institutions: 336.51 crore.
• Total financial indebtedness: 336.51 crore.

Demat/remat processing status

• Securities received for dematerialisation during quarter ended 30 June 2026 were processed and communicated to depositories (accepted/rejected).
• The dematerialised securities have been listed on the stock exchanges where issuer's securities are listed.
• Physical certificates for dematerialisation were mutilated and cancelled after verification; depository name updated as owner in 15 days.

Transfer requests update

• Zero transfer requests were received or processed during Apr–Jun 2026; average processing time was 0 days.

Bank facility default

• Loans/revolving facilities from banks/financial institutions.
• Total outstanding ₹338.36 cr; default ₹105.02 cr as of 30 Jun 2026.
• Unlisted debt securities (NCDs/NCRPS) have NIL default.
• Total financial indebtedness: ₹350.18 cr.

Financial Performance

• Unaudited standalone results approved for quarter and nine months ended 31 Dec 2025.
• Total income for nine months ended 31 Dec 2025: INR 217.04 lakhs.
• Net loss after tax for nine months ended 31 Dec 2025: INR 6,051.81 lakhs.
• Basic EPS loss for nine months ended 31 Dec 2025: INR 14.60 per share.
• Segment losses before tax and finance cost: Sugar INR 2,336.02 lakhs, Distillery INR 636.89 lakhs, Power INR 395.11 lakhs.

Financial Position and Debt

• Company has accumulated losses and negative net worth as of 31 Dec 2025; financials on going concern basis with revival plan.
• Unsecured loans of INR 1,371.54 lakhs obtained during quarter; total loans from directors/related parties INR 21,202.13 lakhs.
• INR 33,465 lakhs disclosed as unsustainable debt under contingent liabilities per Master Restructuring Agreement.
• Equity shares issued under debt resolution with NARCL not dematerialised or listed as of 31 Dec 2025.
• Loan of INR 2,470 lakhs from Iheart Properties Private Limited unpaid; accrued interest INR 267.65 lakhs.
• Sugar Development Fund loan repayment extended by Government of India to 6 April 2026.

Statutory and Vendor Liabilities ️

• Statutory dues including TDS and Provident Fund remain unpaid due to liquidity; company prioritising payments.
• Interest on inter-corporate loans from directors/related parties not accrued per MRA terms.
• Vendor classification under review; some MSME dues unpaid beyond statutory timelines, risking penalties.

Auditor Remarks ️

• Qualified opinion due to accumulated losses, negative net worth; financials prepared on going concern basis.
• Investment in Appu Hotels Limited (INR 1,455.39 lakhs) may not reflect fair value per IND AS 113.
• Non-receipt of balance confirmations limits audit scope.
• Non-provision of interest on borrowings understates finance costs and liabilities.
• Unpaid loan from Iheart Properties Private Limited poses material uncertainty on going concern.
• Unpaid statutory and MSME dues may attract penalties and prosecution; impact unquantified.

Corporate Structure and Other

• No subsidiaries, associates, or joint ventures as of 31 Dec 2025.