Simbhaoli Sugars Ltd — Interim / Quarterly Report 2021

Feb 12, 2021

LI

Ref: SSL: Stock Exchange February 12, 2021

The Manager - Listing National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra- (East), Mumbai - 400 051.

Department of Corporate Services BSE Limited,

s

Simbhaoli Sugars Limited CIN-L15122UP2011PLC044210

(An FSSC 22000: 2011, ISO 9001 : 2008 & 14001 : 2004 Certified Company) Corporate Office : A-112, Sector-63, Noida-201307 (Delhi NCR) INDIA Tel. : �1-120-480 6666 Fax : �1-120-2427166 E-mail : info@simbhaolisugars.com www.simbhaolisugars.com GSTIN: 09AAPCS7569A1ZV

Corporate Relationship Dept., P. J. Towers, Dalal Street, Mumbai - 400 001

Scrip Code: NSE: SIMBHALS BSE: 539742

Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Sub: Financial Results approved in Board meeting held on Februa 12, 2021

Dear Sir,

In the meeting of the Board of Directors of Simbhaoli Sugars Limited, held today, Friday, February 12, 2021, which commenced at 1:00 PM and concluded at :).45 PM, the Board has considered and approved the following:

1. Unaudited financial results for the quarter ended on December 31, 2020. The copies of the financial results along-with the Limited Review report of the auditors are enclosed herewith.

2. Annual In pursuance to the resolution, at item No 4 of the Notice, passed at the 9[th ] General Meeting of the members of the Company regarding their appointment for a period of another tern of 5 years viz financial year 2020-21 till 2024-25, as recommended by the audit committee, the Board has fixed audit fee of Rs 32.50 lacs annum, excluding other professional charges for certification and the reimbursement of out of pocket expenses on actual basis, for payment to M/ s Mittal Gupta & Co, the statutory auditors,. The audit fee is commensurate to the quantum of the audit procedures, to be carried out ·as per the norms, prevailing in the peer group listed entities in the sugar industry.

You are requested to take the above submissions in your records.

•• . ... ¼...d ., ,,. _ -·--��-. ix (.j,e _llwdk.JJi .Coll.llqt,.hulicllJur.e aLAJlahabad .. . *Mis Simbliaoli Spirits Limited k11ow11 as Mis Simhl,aoli Sugars Limited i11 pursuance to Scheme of Amalgamation, as sanctioned

Specialty Sugars

Potable Alcohol

Ethanol Power

SIMBHAOLI SUGARS LIMITED

(Formerly known as 'Simbhaoli Spirits limited') Regd. Office : Simbhaoli Dist. Hapur (U.P.) - 245207 CIN - L15122UP2011PLC044210 E-mail: info@simbhaolisugars.comWebsite:www.simbhaolisugars.com STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020

	DECEMBER 31, 2020	DECEMBER 31, 2020
Income (a) Revenue fom operations (b) Other income Total revenue 2 Expenses (a) Cost of materials consumed (b) Purchase of stock-in-trade Particulars (c) Changes in inventories of fnished goods. work-in- progress and stock-in-trade ( d) Excise dut (e) Employee benefts expense (f) Finance costs (g) Depreciation and amortisation expense (h) Power & fel i Other ex enses Total ex enses	Quarter ended N		ine months ended Rs. Lacs Year Ended
	Decembet31, 2020 31,159 359 31,!18 ;: 31,827 984 ,, ,··, {14,597) September 30, . . 2020 28,032 403 28,435 21 1,366 19,549 4,409 1,277 678 862 272 2 263 30 697 (2,262) (2,262) (2,262) December 31, 2019 25.370 540 25,910 26,405 838 (11,707) 3,995 1.466 778 907 688 3 441 26 811 (901) (901) (901) Dece 1		mber 31, December 31, 2020 2019 97,559 1 171 98,730 44,575 3,241 20,616 13,869 4,138 2,285 2,671 2,052 8 247 01 694 (2,964) (2,964) 80,315 1 381 81,696 39,052 2,236 9,158 15,296 3,919 2,322 2,719 2,225 8 539 85 466 (3,770) (3,770) March 31 202 1,20,832 2 574 1,23,406 82,202 2,866 (7,202) 19,888 5,696 3,163 3,601 2,844 12 513 1 25 571 (2,165) (2,165)
3 Profit/ (loss) before exceptional items and tax (1-2) 4 Exceptional items 5 Profit/ (loss) before Tax (3-4) 6 Tax expense : - Currnt tax - Deferred tax - Income Tax Adjustment Total tax expenses 7 Net Profit/(loss) from ordinary activities after tax (5-6) 8 Other Comprehensiv! Income (net of tax) A) I. Items that will not be reclassified to profit & loss II. Income Tax relating to Items that will not be reclassifed to proft or loss B) I. Items that will be reclassifed to proft & loss II. Income Tax relating to Items that will be reclassified to proft or loss
		(2,262) (901)	(2,964) 2 964 (3,770) 3770 (2,165) (272) (272) 2 437
9 Total Com rehensive Income net of tax 7+8 10 Paid up equity share capital (face value Rs. 10/- each) 11 Other Equity 12 Basic and Diluted Earing Per Share (Rs.) (not annualized) - EPS befre exceptonal item - EPS afer exce tional item
			4,128; 4,128 (9.13) 9.13 4,128 (5,359)

..

SEGMENT WISE REVENUE, RESULTS, ASSETS AND LIABILITIES

UNDER REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015. FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020

UNDER REGULATION 33 OF THE SEBI(LISTINGOBLIGATIONS AND DISCL FOR THEQUARTER AND NINE MONTHSENDED DECEMBER 31, 2020	OSURE REQUIREMENTS) REGULATIONS,2015.	OSURE REQUIREMENTS) REGULATIONS,2015.	OSURE REQUIREMENTS) REGULATIONS,2015.	OSURE REQUIREMENTS) REGULATIONS,2015.	OSURE REQUIREMENTS) REGULATIONS,2015.
.. . (A). Segment Revenue (a) Sugar (b) Distillery Total Less: Inter Seamen! Revenue	/Rs.Lacsl Quarter ended Nine months ended Year Ended
	December 31, · September 30, December 31, December31, 2020 2020 2019 2020			December 31, 2019	March 31, 2020
	Unaudited ~~·.,~~ Unaudited , Unaudited Unaudited 23,452 19,648 19,885 74,967 1'1079 8 744 7 150 27 783			Unaudited 57,302 26 814	Audited 92,040 35 252
	· 34531 28 392 27 035 1 02 750			84 116	1 27 292
	3372 360 1 665 5 191			3 801	6 460
Net sales/income from ooerations	31159 28 032 25 370 97 559			80 315	1 20 832
(B). Segment Results Profit/ (loss) before finance cost, unallocated expenditure. exceptional items and tax fom each segment (a) Sugar lb\ Distillerv	~~'~~ ' ' C(fj3) (1,457) (295) (2,022) :672 /255 116 1 017			(1,976) 189	265 387
**Total **	~~'~~ · : 559 (1,712 (311 (1,005			(1,787	652
Less: (a) Finance cost lb\ Other un-allocated exoenses/ /income\ /net|~~"~~		678 778 2,285 2,322 (128 /188 1326 1339 (2,262 (901 (2 964 (3,770 1,25,073 1,42,788 1,36,426 1.42.788 40,479 41,154 43,425 41,154 15 894 15 188 15 994 15 188	2,322 1339	3,163 1346
Total Profit/ Closs) before tax	~~,.~~ ~~:•.,~~				(2 165 1,60,072 42,024 15 325
(C). Segment Assets (a) Sugar (b) Distllery le\ Unallocated	' j •:.,·. 1·
Total			1 81 446 1 99 130 195 845 1 99 130		2 17 421
(0). Segment Liabilities (a) Sugar (b) Distillery (c) Unallocated Id\ Borrownas			56,888 73,771 70,473 73,771 2,233 2,894 2,781 2,894 22,431 20,514 23,279 20,514 1 03 800 1 04 522 103 494 1 04 522		90,142 2,716 21,332 1 04 462
~~•n•�•~~			1 85 352 2 01 701 2 00 027 2 01 701		2 18 652

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Notes to Standalone Results:

1. Indian sugar industry has been facing difficulties on account of high sugar production in the country since 2016-17 resulting in surplus sugar and lower prices. For last several quarters, the Company has incurred losses due to high sugarcane costs fixed by the state government, and comparatively lower prices of finished sugar which are also regulated and controlled. The operations of the Company remained intact and robust. however due to above-stated reasons has incurred continuing losses and its net worth has been fully eroded. This has resulted delays in meeting the payment obligations to the lenders and sugarcane farmers in terms of their respective agreements and understanding.

Recognizing the status of the sugar industry, the state and central governments have taken a number of measures to improve the financial health, support for liquidation of cane arrears, fixing minimum obligation for exports to manage the sugar inventory and providing subsidy to meet export expenses, fixing minimum support price of sugar, and mandatory blending of ethanol with petrol with long term tendering and providing remunerative price of ethanol etc. Pursuant to an order of Hon'ble High Court of Uttar Pradesh, the Uttar Pradesh sugar industry as well as the Company is confident to receive accrued benefits from the state government under the erstwhile New Sugar Industrial Promotion Policy (NSIPP 2004-09).

All these measures are expected to reflect in the revival of the sugar industry and as well as the Company, in time to come on sustainable basis. Based on these steps, along with other internal measures for improvement being undertaken, the management believes that the regular operations at its manufacturing facilities shall remain continued in the near foreseeable future.

On account of delays in servicing �f loans, certain lenders to the Company have initiated recovery proceeding at various forums, including filing of applications before the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 and approached debt recovery tribunal as well. Against a criminal complaint filed by one of the lenders with the investigating agency, the Enforcement Directorate had passed an attachment order on certain assets of the Company to the extent ofRs. 109.80 Crore, against which the Company has preferred an appeal with the appropriate authority and the matter is sub-judice. Enforcement Directorate had proceeded to take the constructive possession of the attached property on which an interim stay has been granted by the Hon'bleAppellate Tribunal.

The Company is continuing to pursue a comprehensive debt resolution proposal with all the lenders. Majority of commercial lenders have shown their inclination to accept the debt resolution proposal of the Company.

Considering the steps initiated for achieving turnaround of the Company and sugar sector, ongoing discussions with the lenders for resolution of their dues and continuing manufacturing operations in near foreseeable future, these financial statements are continued to be presented on going concern basis, which contemplates realization of assets and settlement ofliabilities, in the normal course of business.

2. Impact ofCOVID 19 Pandemic

The Company has cons{dered the potential impact of COVID 19 in preparation of financial results for the quarter and period ended December 31, 2020 based on the information available to it up to the date of approval of these financial results. However, the impact of COVID 19 as well as negative outlook of sugar sector on the carrying amount of its property, plant and equipment's and consequential impairment could not be ascertained and provided for due to non- availability of requisite information on account oflockdown restrictions.

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1. The Credit Facilities availed by the Company have been classified as non-performing assets (NP A) by all the lenders and interest thereon is not being charged to the loan accounts by commercial lenders as per RBI's circular. Company has submitted comprehensive debt resolution proposals with all the lenders commensurating with its future cash flows. Majority of commercial lenders have shown their inclination to accept the debt resolution proposal of the Company and accordingly accepted the offered Earnest Money Deposit. Interest expenses pertaining to commercial lenders, for the ensuing quarter and nine months ended December 31, 2020 amounting to Rs. 3,836 lacs and Rs. 11,166 Lacs (previous quarter and nine months ended December 31, 2019 amounting to Rs. 3,294 lacs and Rs 9,739 lacs respectively) has not been recognized in profit and loss account. A total amount of Rs. 48,620 lacs towards accrued interest has not been provided for in the books of accounts as on December 31, 2020.

2. The Hon'ble High Court of Uttar Pradesh had directed the state government to determine the interest liability for the period of delayed payments of sugarcane price to cane growers for sugar seasons 2012-13 to 2014-15 by the UP sugar industry. No demand, pursuant to the order and for subsequent period has since been received by the company. Considering this and also prevalent past practices, no such provision towards the interest on delayed payment of cane price has been made in the accounts.

3. The outstanding balances of the Company with its material subsidiary company, Simbhaoli Power Private Limited (SPPL) as reported in standalone financial statements, is subject to reconciliation on account of difference in interpretation of certain long term commercial agreements. Pending reaching to final settlement, no adjustment has been made in the accounts for aggregating to Rs. 459 lacs (including Rs. 120 lacs and Rs. 207 lacs for the quarter and nine months ended December 31, 2020) being the difference in the value ofbagasse sold and certain other claims made by SPPL.

4. Pending notification of the State Advised Price (SAP) for procurement of sugarcane for the sugar season 2020-21 by the State Government of Uttar Pradesh, the cost of cane procurement for the sugar season 202021 has been recognized based on SAP as applicable for the sugar season 2019-20.

5. Sugar, one of the major businesses of the Company, is a part of seasonal industry. The results may vary from quarter to quarter.

6. The previous periods figures have been regrouped/rearranged wherever necessary.

7. The above results were reviewed and recommended by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on February 12, 2021.

For SIMBHAOLI SUGARS LIMITED

GU[R$IMRAN(:01g1tallyslgnedby ] \GURSIMRAN KAUR MANN K[AUR MANf'4·��;�21.02.,2 ][,4;,1,42 ] ,::, Gursimran Kaur Mann Managing Director Place: Noida, India Date: February 12, 2021 Company Website: www.simbhaolisugrs.com

MITTAL GUPTA & CO. Chartered Accountants Regd. Off: 14-Ratan Mahal, 15/197-Civil Lines, Kanpur-208001. Phone : 0512-2303234, 2303235. # E-mail : mgco@mgcoca.in

Independent Auditor's Review Report on unaudited standalone quarterly and Year to date financial results of Simbhaoli Sugars Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015, as amended

To

The Board of Directors of

Simbhaoli Sugars Limited

• l . We have reviewed the accompanying statement of unaudited standalone financial results of Simbhaoli Sugars Limited ('the Company') for the quarter and year to date from April 01, 2020 to December 31, 2020 being submitted by the Company pursuant to Regulation 33 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (the Listing Regulation 2015) as amended to date, which has been initialed by us for identification purposes.

• The statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued there under and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.

• We have conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance so as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and an analytical procedure applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

MITTAL GUPTA & CO. Chartered Accountants Regd. Off: 14-Ratan Mahal, 15/197-Civil Lines, Kanpur-208001. Phone : 0512-2303234, 2303235. #E-mail : mgcomgcoca.in

4. Basis of Qualified Conclusion

We draw attention to

• (i) Note No. 2 to the Statement regarding non provisions for impairment in the carrying value of Property, Plant and Equipments. We are not made available of appropriate impairment assessment carried out by the management and accordingly, we are unable to comment on the same including compliance with the Ind AS-36 ('Impairment of Assets') and any consequential adjustments that may arise in this regard in these financial results.

• (ii) Note No. 3 to the Statement regarding non-provision of interest expenses amounting Rs.3,836 Lakhs for the quarter and Rs.11,166 Lakhs for the year to date ending December 31, 2020 (previous quarter and nine months ending December 31,2019 amounting to Rs. 3,294 Lakhs and Rs 9,739 Lakhs respectively) on certain borrowings for the reasons stated in the said note. The aggregate amount of interest expense not provided for in the accounts aggregates to Rs. 48,620 Lakhs till December 31, 2020. Consequently, Financial cost and Loss for the quarter and year to date ending December 31, 2020 has been understated by the amount as stated in aforesaid note for the respective periods.

• (iii) Note No. 4 to the Statement regarding non- provision of interest liability in respect of delayed payment of sugarcane price for the reasons stated in the said note. The amount of interest not provided for in the books has not been ascertained.

• (iv) Note No. 5 to the Statement regarding non provision of difference in value of bagasse sold and certain claims made by Simbhaoli Power Private Limited, a subsidiary company, amounting Rs. 120 Lakhs for the quarter and Rs. 207 Lakhs for year to date ending December 31, 2020. Pending reaching to final settlement, no adjustment has been made in the accounts for amount aggregating to Rs. 459 Lakhs for the reasons stated in the said note. Consequently, loss for

• the quarter and year to date ending December 31, 2020 has been overstated by the aforesaid amount. CERTlfltU T

Our Conclusion on the statement is qualified in respect of the above matters.

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MITTAL GUPTA & CO.

Chartered Accountants Regd. Off: 14-Ratan Mahal, 15/197-Civil Lines, Kanpur-208001. Phone : 0512-2303234, 2303235. #E-mail : mgcomgcoca.in

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5. Material Uncertainty related to Going Concern:

As stated in Note No. 1 , The Statement has been prepared on going concern basis. Events or conditions as set forth in Note No. 1 indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as going concern. The ability of the Company to continue as going concern depends on the decision of National Company Law Tribunal under the Insolvency and Bankruptcy Code 2016, the Company's ability to get its borrowings restructured as stated in the said note and turnaround of its sugar and distilleries operations on sustainable basis.

Our Conclusion on the statement is not modified in respect of the above matter.

1. Based on our review conducted as above, and except for the matters referred to in paragraph 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in all material respects in accordance with applicable Indian Accounting Standards specified under Se�tion 133 of the Companies Act, 2013, and other recognized accounting practices and policies, has not disclosed the information required to be disclosed in accordance with requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

For MITTAL GUPTA & CO.

Chartered Accountants

FRN: 01874C

BIHARI LAL GUPTA (B. L. Gupta)

Partner

Membership No.:073794

Place of Signature: Kanpur

Date:12.02.2021

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UDIN:21073794AAAABW4895
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SJMBHAOLI SUGARS LIMITED

(Formerly known as 'Simbhaoli Spirits Limited') Regd. Office: Simbhaoli Dist. Hapur (U.P.) • 245207

CIN • L 15122UP2011PLC044210 E-mail: info@simbhaoJisugars.comWebsite:www.simbhaolisugars.com STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ANO NINE MONTHS ENDED DECEMBER 31, 2020

							Rs.Lacs
SI. No.	Particulars		Quarter ended September 30, 2020 Unaudited/ Recasted	Nine Moritlis erided Unaudited Oe�!! be;;1� \Y· pjaudited			Year ended March 31, 2020 Audited Recasted
	Income (a) Revenue from operations (b) Other income	31,2;9 367	28,053 411	97,80 1,192	84,276 461		1,28,021 809
	Total revenue	31,596	28,464	98;998'	84,737		1,28,830
2 3 4 5 6	Expenses (a) Cost of materials consumed (b) Purchase of stock-in-trade (c) Changes in inventories of fnished goods, work-in- progress and stock-in-trade (d) Excise duty ( e) Employee benefts expense (f) Finance costs (g) Depreciation and amortisation expense (h) Power and Fuel (i) Other expenses Total ex enses ProfiU (Joss) before exceptional items and tax (1-2) Exceptional items ProfiU (loss) before Tax (3-4) Tax expense :	·: 31,?7 984 (14,5�7) 5,720 1.�$7 &3 9'3 1.ob3 3;83 31803 {�p7) (i!	21 1,366 19,549 4,409 1,376 679 861 271 2,239 30,771 (2,307) (2,307)	4,575 3,241 20,61$ 1�;86� 4,413 2,286 f670 2.052 . 8)64 101986 . , {2J9 ) ;.Jw) : ('..	40,285 2,254 9,160 15,296 5,371 3,919 3,537 881 9,525 90 228 (5,491) (5,491)		84,111 2,895 (7,194) 19,888 8,021 5,190 4,653 1,490 13,595 1 32,649 (3,819) (3,819)
	• Current tax				10		9
	• Deferred tax.				5		3
7 8 9	Total tax expenses Net ProfiU(loss) from ordinary activities afer tax (5-6) Other Comprehensive Income (net of tax) A) I. Items that will not be reclassifed to proft & loss H. Income Tax relating to Items that will not be reclassifed to prft or loss B) I. Items that will be reclassified to proft & loss II. Income Tax relating to Items that will be reclassifed to proft or loss Total Comprehensive Income (net of tax) (7+8)				15 (5,506) (5,506)		12 (3,831) (285) (286) (4,116)
	ProflULoss for the year attributable to :
	1) Owners of the parent				(4,973)		(3,436)
	2) Non-Controlling Interest				(533)		(395)
	Other Comprehensive Income attributable to:
	1) Owners of the parent						(279)
	2) Non-Controlling Interest						(6)
	Total Comprehensive Income attributable to: 1) Owner of the parent 2 Non-Controllin Interest
10	Paid up equity share capital (face value Rs. 10/- each)
11 12	Other Equity Basic and Diluted Earing Per Share (Rs.) (not annualized) - EPS before exceptional item - EPS afer exce tional item

SEGMENT WISE REVENUE, RESULTS, ASSETS AND LIABILITIES

UNDER REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015. FOR THE QUARTER ANO NINE MONTHS ENDED DECEMBER 31, 2020

(A). Segment Revenue (a) Sugar (b) Distillery (c) Power (d) Others Total Particulars less: Inter Se ment Revenue	(A). Segment Revenue (a) Sugar (b) Distillery (c) Power (d) Others Total Particulars less: Inter Se ment Revenue	December31, 2020 Unaudited 23;452 11,079 114 34645 3,416 31,229	December31, 2020 Unaudited 23;452 11,079 114 34645 3,416 31,229	Quarter ended September30, 2020 Unaudited 19,648 8,744 63 28,455 402 28,053 (1,457) (255) 52 1,764 1,20,227 40,479 35,048 1,617 5,960 2,03,331 56,122 2,233 1,980 1,311 25,531 1,09,978 1 97 155 December31, 2019 Unudited 19,885 7,151 1,524 778 29,338 2,425 26,913 (295) (16) 210 1 100 Rs. lacs Nine Months ended Year ended December31, December31, March31, 2020 2019 2020 Unaudited Unaudite Audited/ Recasted 74,967 57,302 92,040 27,783 26,814 35,252 4,082 6,440 377 1,360 2,376 1,03·127 89,558 1,36,108 5;321 5,282 8,087 97,806 84,276 1,28,021 (;022) (157) 1;017 387 1,015 21 1,266 3,919 5,190 375 105 5 491 3 819 1,38,579 1,55,287 41,154 42,024 34,481 35,048 1,261 1,641 5,570 5,425 2 21 045 2 39 425 73,892 89,376 2,894 2,716 1,404 1,980 946 1,378 23,739 24,473 1,10,625 1,10,560 2 13 500 2 30 483	Quarter ended September30, 2020 Unaudited 19,648 8,744 63 28,455 402 28,053 (1,457) (255) 52 1,764 1,20,227 40,479 35,048 1,617 5,960 2,03,331 56,122 2,233 1,980 1,311 25,531 1,09,978 1 97 155 December31, 2019 Unudited 19,885 7,151 1,524 778 29,338 2,425 26,913 (295) (16) 210 1 100 Rs. lacs Nine Months ended Year ended December31, December31, March31, 2020 2019 2020 Unaudited Unaudite Audited/ Recasted 74,967 57,302 92,040 27,783 26,814 35,252 4,082 6,440 377 1,360 2,376 1,03·127 89,558 1,36,108 5;321 5,282 8,087 97,806 84,276 1,28,021 (;022) (157) 1;017 387 1,015 21 1,266 3,919 5,190 375 105 5 491 3 819 1,38,579 1,55,287 41,154 42,024 34,481 35,048 1,261 1,641 5,570 5,425 2 21 045 2 39 425 73,892 89,376 2,894 2,716 1,404 1,980 946 1,378 23,739 24,473 1,10,625 1,10,560 2 13 500 2 30 483
Net sales/income from o erations
(B). Segment Results ProfU (loss) before fnance costs, unallocated expenditure, exceptional items and tax from each segment (a) Sugar (b) Distillery (c) Power dOthers
Total
Less: (a) Finance cost b Other un-allocated ex enses/ income net
Total ProfiU loss before tax
(C). Segment Assets (a) Sugar (b) Distillery (c) Power (d) Others e Unallocated
Total					2 21 045 2 39 425
(D). Segment liabilities (a) Sugar (b) Distiller (c) Power (d) Others (e) Unallocated Borrowin s Total					73,892 89,376 2,894 2,716 1,404 1,980 946 1,378 23,739 24,473 1,10,625 1,10,560
	Total				2 13 500 2 30 483

Notes to Consolidated Results:

• I. Indian sugar industry has been facing difficulties on account of high sugar production in the country since 2016-17 resulting in surplus sugar and lower prices. For last several quarters, the Company has incurred losses due to high sugarcane costs fixed by the state government, and comparatively lower prices of finished sugar which are also regulated and controlled. The operations of the Company remained intact and robust, however due to above-stated reasons has incurred continuing losses and its net worth has been fully eroded. This has resulted delays in meeting the payment obligations to the lenders and sugarcane farmers in terms of their respective agreements and understanding.

Recognizing the status of the sugar industry, the state and central governments have taken a number of measures to improve the financial health, support for liquidation of cane arrears, fixing minimum obligation for exports to manage the sugar inventory and providing subsidy to meet export expenses, fixing minimum support price of sugar, and mandatory blending of ethanol with petrol with long term tendering and providing remunerative price of ethanol etc. Pursuant to an order ofHon'ble High Court ofUttar Pradesh, the Uttar Pradesh sugar industry as well as the Company is confident to receive accrued benefits from the state government under the erstwhile New Sugar Industrial Promotion Policy (NSI 2004-09).

All these measures are expected to reflect in the revival of the sugar industry and as well as the Company, in time to come on sustainable basis. Based on these steps, along with other internal measures for improvement being undertaken, the management believes that the regular operations at its manufacturing facilities shall remain continued in the near foreseeable future.

On a9count of delays in servicing of loans, certain lenders to the Company have initiated recovery proceeding at various forums, including filing of applications before the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 and approached debt recovery tribunal as well. Against a criminal complaint filed by one of the lenders with the investigating agency, the Enforcement Directorate had passed an attachment order on certain assets of the Company to the extent of Rs. 109.80 Crore, against which the Company has preferred an appeal with the appropriate authority and the matter is sub-judice. Enforcement Directorate had proceeded to take the constructive possession of the attached property on which an interim stay has been granted by the Hon'ble Appellate Tribunal.

The Company is continuing to pursue a comprehensive debt resolution proposal with all the lenders. Majority of commercial lenders have shown their inclination to accept the debt resolution proposal of the Company.

Considering the steps initiated for achieving turnaround of the Company and sugar sector, ongoing discussions with the lenders for resolution of their dues and continuing manufacturing operations in near foreseeable future, these financial statements are continued to be presented on going concern basis, which contemplates realization of assets and settlement ofliabilities, in the normal course of busine .

2. Impact of COVID 19 Pandemic

The Company has considered the potential impact of COVID � 9 in preparation of financial results for the quarter and period ended December 31, 2020 based on the information available to it up to the date of approval of these financial results. However, the impact ofCOVID 19 as well as negative outlook of sugar sector on the carrying amount of its property, plant and equipment's and consequential impairment could not be ascertained and provided for due to non- availability ofrequisite information on account oflockdown restrictions.

The impact of COVID 1.9 may differ from what has been assessed by the Management as at the date of approval of these financial results. The Company will continue to closely monitor any material change in future economic conditions and take appropriate action as may be required.

1. The Credit Facilities availed by the Company have been classified as non-performing assets (NPA) by all the lenders and interest thereon is not being charged to the loan accounts by commercial lenders as per RBI's circular. Company has submitted comprehensive debt resolution proposals with all the lenders commensurating with its future cash flows. Majority of commercial lenders have shown their inclination to accept the debt resolution proposal of the Company and accordingly accepted the offered Earnest Money Deposit. Interest expenses pertaining to commercial lenders, for the ensuing quarter and nine months ended December 31, 2020 amounting to Rs. 3,836 lacs and Rs. 11,166 Lacs (previous quarter and nine months ended December 31, 2019 amounting to Rs. 3,294 lacs and Rs 9,739 lacs respectively) has not been recognized in profit and loss account. A total amount of Rs. 48,620 lacs towards accrued interest has not been provided for in the books of accounts as on December 31, 2020.

2. The Hon'ble High Court of Uttar Pradesh had directed the state government to determine the interest liability for the period of delayed payments of sugarcane price to cane growers for sugar seasons 2012-13 to 2014-15 by the UP sugar industry. No demand, pursuant to the order and for subsequent period has since been received by the company. Considering this and also prevalent past practices, no such provision towards the interest on delayed payment of cane price has been made in the accounts.

3. Pending notification of the State Advised Price (SAP) for procurement of sugarcane for the sugar season 2020-21 by the State Government ofUttar Pradesh, the cost of cane procurement for the sugar season 202021 has been recognized based on SAP as applicable for the sugar season 2019-20.

4. In the audited financial statements of Simbhaoli Power Private Limited ('SPPL '), statutory auditor of the SPPL has drawn Emphasis of Matter in respect of following "During the year ended March 31, 2020, Uttar Pradesh Electricity Regulatory Commission ('UPERC') has notified UPERC (Captive and Renewable Energy Generating Plants) Regulations, 2019 ('CRE Regulations 2019') which has, inter alia, reduced the tariff applicable to bagasse-based generation plants operating in the state of Uttar Pradesh w.e.f. April 1, 2019. SPPL, along with bagasse-based co-generators operating in the State, have filed a writ petition with Hon'ble $gh Court of Allahabad, Lucknow Bench, challenging CRE Regulatiqns 2019 which have been accepted by the court.

Based on the writ petition filed and legal opinion obtained, SPPL has recorded revenue from operations for the period from April 2019 to September 2019 at pre CRE Regulations 2019 tariff instead at the reduced tariff as per CRE Regulations, 2019. W.e.f. October 1, 2019, SPPL has accounted for sale of power to Uttar Pradesh Power Corporation Ltd. (UPPCL), the customer at reduced tariff rate under protest and subject to outcome ofHon'ble High Court decision on writ petition.

SPPL's computation, shows that revenue from operations for year ended March 31, 2020 would have been lower by Rs. 683 lacs, if accounted for at or basis reduced tariff as per CRE Regulations 2019.

With regard to the above stated conditions and on account of difference in interpretation of certain long term commercial agreements, auditors of SPPL have drawn material uncertainty related to going concern.

1. In the consolidated financial results of the Company for the Quarter and nine months ended December 31, 2020, the financial results of SPPL, a material subsidiary has not been consolidated, as the quarterly and nine months financial results of SPPL have not been yet finalized and approved till date.

2. The transactions entered into between the Company and SPPL for the nine months ended December 31, 2020 which have not been eliminated in the consolidated financial.results, have resulted in increase in the total revenue by Rs. 1,618 lacs and total expenses by Rs. 1,051 lacs. Further, increase in the balances of subsidiary of Rs. 769 Lacs has been included in the consolidated balance sheet in the respective assets heads.

3. With reference to note no. 5 of financial results published on July 30, 2020, of the previous year ended March 31, 2020, consolidated financial statements have been prepared on the basis of nine months ended December 31, 2019 unaudited results of SPPL which are now restated incorporating the audited financial

statements of SPPL for the year ended March 31, 2020. The reconciliation of previous year's pul,Jlishe,$!" r, if" accounts with the restated accounts figures are as under: Ct RT\���;}· H'U !�w;I�kITT

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(Rs. in Lacs)

	(Rs. in Lacs)
Published Figure Particulars (March31 2020)	Restated Figure ( March 31 2020)
Total Revenue 1,27,618 Net profit(Loss) (3,885) Total Comprehensive Income (4,159) Total Assets 2,39,454 Total Equity and Liabilities 2,39,454 Equity Share and Other Equity (2,549) Non-ControllingInteret 11,448	1,28,830 (3,831) (4,116) 2,39,425 2,39,425 (8,942) 11,581

1. The standalone results are available on Company's website www.simbhaolisugars.com. The particulars in respect of standalone results are as under:

Net Sales/Income fom o erati ons 25,439 23,623 21,375		65,019 1,00,944
Proft/(Loss) before tax (203) (2,262) (901)	(2,964)	(3,770) (2,165)
Profit/ (Loss) afer tax (203) (2,262) (901)	(2,964)	(3,770~~)~~ (2,165)
Other Comprehensive Icome		(272)
Total Comprehensive Income (203) (2,262) (901)	(2,964)	(3,770) (2,437)
EBITDA 1,523 (722) 784	1,992	1271 4,599

1. Sugar, one of the i;najor businesses of the Company, is a part of seasonal industry. The .results may vary from quarter to quarter.

2. The previous periods figures have been regrouped/rearranged wherever necessar[y] .

3. The above results were reviewed and recommended by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on February 12, 2021.

For SIMBHAOLI SUGARS LIMITED (r' t �,t , ..l(<A [l,i\lJ ][�ANN" ] ' .. / , [���021.02.12 1•<>1�s ] +oS:iO' Gursimran Kaur Mann Managing Director GURSIMRAN,g�:�:;���MANN

Place: Noida, India Date: February 12, 2021 Company Website: www.simbhaolisu[g] ars.com

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MITTAL GUPTA & CO.

Chartered Accountants Regd. Off: 14-Ratan Mahal, 15/197-Civil Lines, Kanpur-208001. Phone : 0512-2303234, 2303235. #E-mail : mgcomgcoca.in

Independent Auditor's Review Report on unaudited consolidated quarterly and year to date financial results of the Group Pursuant to the Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015, as amended

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To

The Board of Directors of

Simbhaoli Sugars Limited

• I. We have reviewed the accompanying statement of unaudited consolidated Financial Results of Simbhaoli Sugars Limited ('the Holding Company') and its subsidiaries (hereinafter referred to as 'the Group') for the quarter and year to date from April 1, 2020 to December 31, 2020, being submitted by the company pursuant to Regulation 33 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (the Listing Regulation 2015) as amended to date.

• The statement, which is the responsibility of the Company's Management and approved by the Company's B"oard of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued there under artd other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.

• We have conducted our re!'iew in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance so as

• to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and an analytical procedure applied to financial data and thus provides less assurance than an audit. We udit and accordingly, we do not express an audit opinion<'£

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MITTAL GUPTA & CO.

Chartered Accountants Regd. Off: 14-Ratan Mahal, 15/197-Civil Lines, Kanpur-20800L Phone : 0512-2303234, 2303235. #E-mail : mgco@mgcoca.in

4. Basis of Adverse Conclusion

As explained in Note No. 7 , the Group has not consolidated the financial statements of its material subsidiary viz Simbhaoli Power Private Limited (SPPL) w.e.f. April I, 2020 for the reasons stated in the said note. Under the accounting principles generally accepted in India, the subsidiary should have been consolidated because it is controlled by the Company. Had the result of subsidiary been consolidated, many elements in the accompanying consolidated financial results would have been materially affected. The effects on the financial results due to the failure to consolidate have not been determined.

5. Basis of Qualified Conclusion

We draw attention to

(i) Note No.2 to the Statement regarding non provisions for impairment in the carrying value of Property, Plant and Equipments. We are not made available of appropriate impairment asse ment carried out by the management and accordingly, we are unable to comment on the same including compliance with the Ind AS-36 ('Impairment of Assets') and any consequential adjustments that may arise in this regard in these fmancial results.

• (ii) Note No.3 to the Statement regarding non-provision of interest expenses amounting Rs.3,836 Lakhs for the quarter and Rs.11,166 Lakhs for the year to date ended December 31, 2020 (previous quarter and nine months ending December 31,2019 amounting to Rs. 3,294 Lakhs and Rs 9,739 Lakhs respectively), on certain borrowings for the reasous stated in the said note. The aggregate amount of interest expense not provided for in the accounts aggregates to Rs. 48,620 Lakhs tiII December 31, 2020. Consequently, Financial cost and Loss for the quarter and year to date ended December 31, 2020 has been understated by the amount as stated in aforesaid note for the respective periods.

• (iii) Note No.4 to the Statement regarding non- provision of interest liability in respect of delayed payment of sugarcane price for the reasons stated in the said note. The amount of interest not provided for in the books has not been ascertained.

Our Conclusion on the statement is qualified in respect of the above matters.

MITTAL GUPTA & CO.

Chartered Accountants

Regd. Off: 14-Ratan Mahal, 15/197-Civil Lines, Kanpur-208001. Phone : 0512-2303234, 2303235. # E-mail : mgco@mgcoca.in

6. Emphasis of matter

• i) As stated in Note no. 6 of the Statement, SPPL had recorded revenue from operations for the period April to September, 2019 at or basis pre CRE Regulation 2019 Tariff Rate instead at the reduced tariff as per CRE Regulation 2019. Management's computation, as reviewed by the statutory auditors of SPPL, shows that revenue from operations for the year ended March 31, 2020 would have been lower by Rs 683 Lakhs, if accounted for at or basis reduced tariff as per CRE Regulations 2019.The Statutory Auditor of SPPL had reported this under Emphasis of Matter para in its audit report on the account ofSPPL for the year ended March 31, 2020 .

Our Conclusion on the statement is not modified in respect of the above matter.

7. Material Uncertainty related to Going Concern

• (i) As stated in Note No.I of the consolidated financial results, the standalone financial statement of holding company has been prepared on going concern basis. Events or conditions as set forth in Note No. I indicate that a material uncertainty exists that may cast significant doubt on the holding company's ability to continue as going concern. The ability of the holding company to continue as going concern depends on the decision of National Company Law Tribunal under the Insolvency and Bankruptcy Code 2016, the holding company's ability to get its borrowings restructured as stated in the said note and turnaround of its sugar and distilleries operations on sustainable basis.

• (ii) Statutory Auditor of SPPL has, in its audit report on the fi cial statement for the year ending on March 3 l, 2020 drawn attention of members on the material uncertainty related to Going concern of SPPL and stated that due to reduction in tariff rate w.e.f. April 1, 2019, SPPL has suffered losses of Rs. 431 lacs during the year. This loss would have been further increased had the revenue from the period April 2019 to September 2019 been recorded on revised reduced tarrif and also due to certain disagreements with. . holding company in respect of purchase price of bagasse. The Auditors observed that these conditions indicate the existence of material uncertainty that may cast significant doubt about SPPL' s ability to continue as Going concern

Our Conclusion on the statement is not modified in respect of the above matter.

1. Based on our review conducted as above, and after considering the matters referred to in Paragraph No. 4 & 5 above, we conclude that the accompanying Statement are not prepared in all material respects in accordance with applicable Indian Acco Standards specified under Section 133 of the Companies Act, 2013, and �tt{\f�'Ut

MITTAL GUPTA & CO. Chartered Accountants Regd. Off: 14-Ratan Mahal, 15/197-Civil Lines, Kanpur-20800L Phone: 0512-2303234, 2303235. #E-mail: mgco@mgcoca.in

accounting practices and policies, has disclosed the information required to be disclosed in accordance with requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed.

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1. The statement includes the results of the following Subsidiary Companies:

2. A. Integrated Casetech Consultants Private Limited

3. B. Simbhaoli Specialty Sugars Private Limited

4. The consolidated unaudited financial results include the financial results of one subsidiary, whose interim financial results reflect total assets of Rs. 142.70 Lakhs as at December 31, 2020, total revenue of Rs.3.78 Lakhs, total net profit after tax and total comprehensive income of Rs. 1.52 Lakhs for year to date December 31, 2020 as considered in the Statement which have been reviewed by its respective Independent auditor. The independent auditors' reports on financial results/financial information of the entity have been furnished to us and· our opinion on the consolidated unaudited financial results in so far as it relates to the amounts and disclosures included in respect of the entity, is based solely on the report of such auditor and the procedures performed by us are as stated in paragraph above.

Our conclusion on the Statement is not modified in respect of these matters.

For MITT AL GUPTA & CO.

Chartered Accountants

FRN: 01874C __ .,.""""'" BIHARI LAL GUPTA'�.·--·--····=: (B. L. Gupta) Partner Membership No.: 073794 Place of Signature: Kanpur ,· ·, �;;·,t-;: " ''

Date: 12.02.2021

UDIN: 21073794AAAABV9966