Shree Hanuman Sugar auditor qualifies going-concern basis

Shree Hanuman Sugar & Industries Limited received a qualified limited-review conclusion for the quarter and half year ended 30 September 2026 because its accounts use a going-concern basis while its Corporate Insolvency Resolution Process, or CIRP, remains in progress. Shree Hanuman Sugar reported total assets of Rs 239.19 crore at 30 September 2026.

Why did Shree Hanuman Sugar’s auditor qualify the September 2026 results?

Shree Hanuman Sugar’s auditor qualified the limited review because management prepared the financial statements on a going-concern basis under Indian Accounting Standard 1, Presentation of Financial Statements, despite the company being under CIRP from 27 September 2024. B D S & Co. dated its limited-review report 5 November 2026 and identified the going-concern treatment as the basis for qualification.

The qualification concerns the possible effects of applying the going-concern assumption during the insolvency process, rather than a stated error in a specific asset, liability or income-statement line. Except for that possible effect, the auditor said nothing had come to its attention to suggest that the unaudited results for the quarter ended 30 September 2026 and six months from 1 April 2026 did not make the disclosures required under Regulation 33 of the Securities and Exchange Board of India, or SEBI, Listing Regulations.

B D S & Co. conducted the work under Standard on Review Engagement 2410, which involves inquiries and analytical procedures and provides moderate assurance. The report states that this type of review is narrower than an audit, so it does not provide assurance that all matters potentially identified in a full audit would be detected for the period ended 30 September 2026.

Why is Shree Hanuman Sugar under CIRP?

Shree Hanuman Sugar entered CIRP after the National Company Law Tribunal, Kolkata Bench admitted an application on 27 September 2024, with the order communicated to the Interim Resolution Professional, or IRP, on 30 September 2024. The filing says Stress Assets Stabilization Fund invoked a corporate guarantee in the matter of Eastern Sugar & Industries Limited.

The company said the powers of its board were suspended from 27 September 2024, and management and operations are being handled by the insolvency professional under Section 20 of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional took the quarter and half-year financial statements on record on 5 November 2026, rather than the suspended board authorising them.

The Committee of Creditors, or CoC, confirmed the IRP as Resolution Professional, or RP, following its first meeting on 28 October 2024; voting results were declared on 7 November 2024. The company’s 5 November 2026 filing states that the CIRP was still in progress, making the status of that process directly relevant to the auditor’s going-concern qualification.

What did Shree Hanuman Sugar report on its September 2026 balance sheet?

Shree Hanuman Sugar reported total assets of Rs 239.19 crore at 30 September 2026, compared with Rs 239.14 crore at 31 March 2026. Property, plant and equipment accounted for Rs 237.24 crore at both dates, while current assets increased to Rs 1.50 crore from Rs 1.45 crore.

Equity was Rs 151.37 crore at 30 September 2026, comprising Rs 18.50 crore of equity share capital and Rs 132.87 crore of other equity. Current liabilities were Rs 87.82 crore, including borrowings of Rs 55.84 crore, other current liabilities of Rs 16.52 crore, trade payables other than to micro, small and medium enterprises of Rs 5.77 crore, provisions of Rs 5.61 crore and net current tax liabilities of Rs 4.08 crore.

The balance sheet also recorded investments of Rs 44.79 lakh at 30 September 2026, unchanged from 31 March 2026. Inventory remained Rs 11.25 lakh and loans remained Rs 90.56 lakh, showing that the Rs 5.51 lakh increase in total assets over the six months was concentrated in current-asset movements rather than fixed assets or investments.

How did Shree Hanuman Sugar’s financial position change since March 2026?

Shree Hanuman Sugar’s total assets increased by Rs 5.51 lakh between 31 March 2026 and 30 September 2026, while equity declined by Rs 49.54 lakh. The equity reduction reflected other equity falling to Rs 132.87 crore from Rs 133.36 crore, as share capital remained unchanged at Rs 18.50 crore.

Current liabilities rose by Rs 55.05 lakh to Rs 87.82 crore at 30 September 2026 from Rs 87.27 crore at 31 March 2026. The increase matched the rise in other current liabilities to Rs 16.52 crore from Rs 15.97 crore, while borrowings remained Rs 55.84 crore, trade payables remained Rs 5.77 crore and provisions remained Rs 5.61 crore.

Within current assets, cash and cash equivalents declined to Rs 5.47 lakh from Rs 6.44 lakh, while other current assets rose to Rs 43.02 lakh from Rs 36.54 lakh. The filing identifies goods and services tax input of Rs 21.66 lakh at 30 September 2026 versus Rs 15.19 lakh at 31 March 2026, alongside capital advances of Rs 19.12 lakh at both dates.

The supplied announcement pages do not include an income statement for the quarter ended 30 September 2026 or the six months from 1 April 2026. As a result, the filing supports a comparison of balance-sheet positions at 30 September 2026 and 31 March 2026, but not a comparison of revenue, operating profit or net profit.

What did the limited review conclude apart from the qualification?

Shree Hanuman Sugar’s auditor concluded that, except for the possible effects of the going-concern matter, no issue had come to its attention indicating that the results were not prepared in accordance with applicable Indian Accounting Standards and other accounting principles generally accepted in India. The conclusion covered the quarter ended 30 September 2026 and the year-to-date period from 1 April 2026 to 30 September 2026.

The statement was prepared under Indian Accounting Standard 34, Interim Financial Reporting, and filed under Regulation 33 of the SEBI Listing Regulations. B D S & Co. also cited SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016 when describing the disclosure framework applied to the unaudited financial results.

The company said its meeting on 5 November 2026 began at 4:30 p.m. and concluded at 5:00 p.m. The accompanying balance sheet was signed under CIRP by the RP and states that it was prepared from information provided by suspended management and CIRP transactions.

Conclusion

The qualified review makes the going-concern basis the central accounting issue in Shree Hanuman Sugar’s September 2026 results, as CIRP remained ongoing nearly two years after the 27 September 2024 admission order. The balance sheet reported Rs 239.19 crore of assets, mostly Rs 237.24 crore of property, plant and equipment, against Rs 55.84 crore of borrowings and Rs 87.82 crore of current liabilities.

The next disclosed matter to watch is progress in the CIRP being administered by the RP confirmed after the CoC’s 28 October 2024 meeting. Subsequent financial statements will show whether the company continues to prepare accounts on a going-concern basis and whether B D S & Co.’s qualification remains in place after 30 September 2026.