**Shree Hanuman Sugar & Industries Limited** is an Indian enterprise currently in a state of severe financial and operational distress. The company is undergoing a **Corporate Insolvency Resolution Process (CIRP)** under the **Insolvency and Bankruptcy Code (IBC), 2016**, following an order by the **NCLT Kolkata Bench** on **September 27, 2021** (and subsequent proceedings in **2024**). The company’s management powers are currently suspended and vested with a **Resolution Professional (RP)**, Mr. Sandeep Khaitan, overseen by a **Committee of Creditors (CoC)**. --- ### **Current Insolvency Status & Legal Encumbrances** The company’s primary existential threat arises from corporate guarantees and mortgages provided for **Eastern Sugar & Industries Limited** (the Principal Borrower). * **Debt Magnitude:** The **Stressed Assets Stabilization Fund (SASF)** claimed a default of **₹2,673.80 crore** as of March 31, 2023. This figure has since escalated to an aggregated claim of **₹3,098.09 crore**. * **Asset Attachment:** On **March 15, 2024**, the **Debt Recovery Tribunal (DRT), Patna**, issued an order attaching the **Permanent Account Number (PAN)** of the company and its promoter, **Shruti Limited**. * **Security Pledged:** The company has mortgaged significant land parcels in **Motihari, Bihar** (including plots of **13 Bighas** and **24 Bighas**) to secured financial creditors. * **Litigation:** The company faces a rejected claim of **₹12.58 crore** from the **EPFO** regarding liabilities from 1998–2002, which the RP has contested as the unit was leased to a third party during that period. --- ### **Operational Segments & Infrastructure Status** The company’s business model is theoretically split into two segments, though one is entirely dormant and the other remains in a planning phase. | Segment | Status | Operational Reality | | :--- | :--- | :--- | | **Sugar** | **Non-operational** | Mill located at **Motihari, Bihar**. Operations suspended since **FY 2012-13**. | | **Construction** | **Active/Planned** | Intended focus on **housing and commercial projects** to diversify risk. | #### **The Sugar Division (Motihari, Bihar)** * **Infrastructure:** The plant is characterized by **obsolete technology** and machinery, leading to extreme **cost ineffectiveness**. * **Supply Chain:** While located in a cane-rich area, all **cane development activities** are suspended. There is a significant geographical risk regarding the distance between the unit and viable cane fields. * **Asset Impairment:** No physical verification of assets has been conducted since **2012-13**. A major **Capital Work-in-Progress (CWIP)** write-off of **₹2,354.53 Lacs** was recorded after plant upgradation activities were abandoned. --- ### **Financial Performance & "Non-Going Concern" Basis** Due to the prolonged cessation of operations, financial statements are prepared on a **Non-Going Concern Basis**. The company generates **zero revenue** from operations. #### **Three-Year Financial Summary** | Metric (Rs. in Lacs) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Total Income** | **0.00** | **0.00** | **20.41** | | **Net Loss after Tax** | **(26.44)** | **(715.39)** | **(5,975.96)** | | **Cash Loss** | **(42.37)** | - | - | | **Dividend** | **Nil** | **Nil** | **Nil** | * **Loss Volatility:** The massive losses in **FY 2021-22** and **FY 2022-23** were driven by one-time write-offs of **non-recoverable advances** and **damaged inventory**. * **Land Sale Reversal:** A historical attempt to generate liquidity via a land sale in Motihari (advance of **₹1.5 Cr**) failed after the **Registrar rejected the conveyance registration**, forcing a reversal on the books. --- ### **Critical Audit Qualifications & Compliance Failures** Auditors have consistently issued **qualified opinions** due to numerous departures from standard accounting practices and statutory requirements: * **Depreciation & Interest:** No depreciation has been provided on **Fixed Assets since 2014**. Furthermore, the company has failed to provide for interest expenses on borrowings, violating **Sections 73 to 76** of the Companies Act, 2013. * **Valuation Gaps:** **Stores & Spares** worth **₹45 lacs** were written down in 2022-23 without a formal valuation report. * **Employee Benefits:** Non-compliance with **Ind AS 19** regarding Gratuity and Leave Liabilities. * **Governance Deficit:** The company lacks an **Executive Director, Women Director, and Key Managerial Personnel (KMP)**. The Board does not comply with **SEBI LODR Regulation 17**. * **Taxation:** Significant historical non-compliance with **TDS (Sections 192/194)** was only partially rectified starting March 2022. --- ### **Capital Structure & Market Listing** * **Equity Base:** **1,85,00,000 equity shares** at a par value of **₹10 per share**. * **Dematerialization:** **88.45%** of equity share capital is held in demat form as of March 31, 2024. * **Listing Status:** Listed on **BSE Limited** and **The Calcutta Stock Exchange (CSE)**. * **BSE:** Trading is subject to restrictions; promoter demat accounts were previously frozen due to filing delays. * **CSE:** Trading is currently **suspended**. --- ### **Strategic Outlook & Risk Factors** The company’s future is entirely dependent on the outcome of the **CIRP** and the potential for a successful resolution plan. * **Recovery Catalysts:** Management has previously cited that a **Fair Price Mechanism** for sugarcane and sector de-controls could theoretically aid recovery, though the current state of the plant makes this unlikely without massive capital infusion. * **Diversification Strategy:** The stated intent to pivot toward **Construction and Real Estate** is currently stalled by the insolvency proceedings and lack of working capital. * **Primary Risks:** * **Liquidation Risk:** If no resolution plan is approved, the company faces liquidation. * **Technological Obsolescence:** The sugar unit requires total modernization to be viable. * **Legal Risk:** The multi-billion rupee claims from SASF far exceed the company's book value.