Sanwaria Consumer omits Rs 2.8590843 crore unpaid expenses

Sanwaria Consumer Limited said its unaudited financial statements for the period ended September 30, 2026 exclude Rs 2.8590843 crore of cumulative unpaid expenses under its cash-basis policy, while interest payable after the May 29, 2020 insolvency commencement date has not been recognised.

Why are unpaid expenses missing from Sanwaria Consumer’s accounts?

Sanwaria Consumer said the unpaid costs are not provided in its books because it follows a cash-basis accounting policy. The company identified Rs 2.8590843 crore of expenses that had accumulated up to the financial year ended September 30, 2026 but had not been paid.

Salary expenses were the largest disclosed category at Rs 1.1279351 crore, followed by professional expenses at Rs 1.060337 crore. Together, these two categories totalled Rs 2.1882721 crore, or most of the Rs 2.8590843 crore unpaid-expense total reported in the notes.

Security expenses were Rs 61.31897 lakh, making them the third-largest unpaid category. The smaller items were audit fees of Rs 5.428 lakh and advertisement expenses of Rs 33,425; these two items together amounted to Rs 5.76225 lakh.

The disclosed expenses are cumulative through September 30, 2026 rather than costs identified only for the quarter ended on that date. Sanwaria Consumer did not provide a restated expense, profit or loss figure showing the result if the Rs 2.8590843 crore had been provided in the unaudited statements.

The cash-basis treatment means the listed costs are absent as provisions in the accounts as of September 30, 2026. The filing specifies the nature and amount of the unpaid costs, but it does not state when these expenses were incurred or when payment is expected.

What is Sanwaria Consumer’s CIRP status?

Sanwaria Consumer has been under the Corporate Insolvency Resolution Process, or CIRP, since May 29, 2020, when the National Company Law Tribunal, Indore Bench, admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was filed by creditor Kishor Ramniklal Unadikat, sole proprietor of M/s Shakti Clearing Agency.

At the first Committee of Creditors, or CoC, meeting on July 28, 2020, members holding 100% voting share resolved to replace the Interim Resolution Professional with Gautam Mittal as resolution professional. The filing says the board’s powers remain suspended during CIRP and are exercised by the interim or resolution professional under the Code.

Sanwaria Consumer said the CIRP has concluded, the CoC proposes liquidation, and the resolution professional has filed an application before the National Company Law Tribunal. The note also says the resolution professional had invited resolution plans from potential applicants and put them before the CoC and tribunal for necessary approvals.

The unaudited statements for the period ended September 30, 2026 were placed before the resolution professional and chief financial officer on November 4, 2026. The resolution professional approved the statements to discharge board powers under Section 17 of the Code, relying on the chief financial officer’s examination and management representations dated November 4, 2026.

How unresolved are Sanwaria Consumer’s creditor claims?

Sanwaria Consumer said financial-creditor claims submitted as of June 15, 2020 exceeded the amounts appearing in its books. It has made no accounting impact for excess, short or non-receipt of claims from either financial or operational creditors while claim submission and reconciliation remain ongoing.

The insolvency process required a public announcement inviting claims by June 15, 2020, and the CoC was formed on July 1, 2020 after receipt of claims by that date. The resolution professional is described as receiving, collating and verifying claims, seeking clarifications, and requesting documents to support unreconciled balances.

The filing says claims may be submitted during CIRP until approval of a resolution plan by the CoC. It also says creditor lists may be revised as additional claims are received, which distinguishes the amounts currently recorded in Sanwaria Consumer’s books from claims under review by the resolution professional.

No rupee amount was disclosed for the excess of financial-creditor claims over book balances as of June 15, 2020. The note also gives no separate value for unresolved operational-creditor claims, so it does not quantify the potential difference between recorded liabilities and creditor claims being processed.

Which asset values and borrowing costs remain unrecognised?

Sanwaria Consumer reported a carrying value of Rs 53.3008 crore for tangible assets as of September 30, 2026, but said it had not considered any impact on those values under Indian Accounting Standard 10, or Ind AS 10, Events after the Reporting Period. The company linked that treatment to its CIRP status and the liquidation proposal before the tribunal.

The company also said it had not made the full impairment assessment, if any, required by Indian Accounting Standard 36, or Ind AS 36, Impairment of Assets. It did not disclose an impairment charge or state how the Rs 53.3008 crore carrying value would change after the assessment referred to in the notes.

Sanwaria Consumer has not recognised interest payable after May 29, 2020 on borrowings from banks and financial institutions, customer advances and inter-corporate deposits received. The company stated that this treatment is not compliant with Indian Accounting Standard 23, Borrowing Costs, read with Indian Accounting Standard 109, Financial Instruments.

The filing does not disclose the cumulative value of interest unrecognised from May 29, 2020 through September 30, 2026. It therefore identifies the liability categories and starting date but does not permit a calculation of the additional finance cost or liability from the notes alone.

The tangible-asset issue and the unrecognised-interest issue affect different parts of the accounts. The first concerns whether the Rs 53.3008 crore asset carrying value needs adjustment, while the second concerns interest payable on specified funding and advance categories after the insolvency commencement date.

Conclusion

Sanwaria Consumer’s September 30, 2026 unaudited accounts disclose several limits on what is reflected in the reported financial position: Rs 2.8590843 crore of unpaid cumulative expenses has not been provided, interest after May 29, 2020 has not been recognised, creditor claims exceed book amounts without an accounting adjustment, and tangible assets of Rs 53.3008 crore have not received the full impairment assessment cited in the notes.

The next disclosed event to watch is the National Company Law Tribunal’s consideration of the resolution professional’s application after the CoC proposed liquidation. Subsequent filings could also address the unresolved creditor-claim reconciliation, quantify interest unrecognised since May 29, 2020, or report an impairment assessment for the tangible assets carried at Rs 53.3008 crore.