Garlon Polyfab Industries Limited narrowed its net loss to ₹2.28 lakh for the financial year ended March 31, 2022, compared to a loss of ₹3.79 lakh in the previous year, as the company continued to remain non-functional with nil sales. The standalone financial results for the quarter and year ended March 31, 2022, were audited by M/s P. D. Agarwal and Company, Chartered Accountants, and approved by the Board of Directors on May 30, 2022. Despite the lack of operational activity, the Board stated it is continuously looking for avenues for future growth and is hopeful of securing strategic investors to restart operations.

Financial Performance

The company recorded no income from operations or other income during FY22. Total expenses for the year stood at ₹2.28 lakh, down from ₹3.88 lakh in the previous year. Consequently, the Profit Before Tax was a loss of ₹2.28 lakh, compared to a loss of ₹3.79 lakh in FY21. There was no tax liability for the current or previous year. The basic and diluted earnings per share remained negative at ₹0.008, an improvement from the negative ₹0.008 reported in the prior year.

Operational Status and Outlook

The Directors' Report confirmed that the company has not undertaken any business activity for the last few years, resulting in nil turnover. Management attributed the suspension of operations to macro and micro aspects beyond its control. While the outlook section of the Management Discussion and Analysis Report noted that operations remained suspended, the company expressed optimism about a better year ahead and is seeking strategic investors to bring operations back on track.

Governance and Statutory Details

The Board of Directors held meetings during FY22. M/s P. D. Agarwal and Company, Chartered Accountants, serve as the statutory auditors. The auditors' report contained no qualifications or adverse remarks. The company confirmed that it has adequate internal financial controls and a vigil mechanism in place. Corporate Social Responsibility requirements were not applicable to the company during the year under review.

Garlon Polyfab Industries Limited reported a net loss of ₹2.21 lakh for the quarter ended March 31, 2021, as the company recorded zero income from operations. The total expenses for the period amounted to ₹2.30 lakh, primarily comprising employee benefits expenses of ₹0.36 lakh and other expenses of ₹1.94 lakh. Consequently, the loss for the quarter widened compared to the ₹0.88 lakh loss recorded in the corresponding period of the previous year.

For the financial year ended March 31, 2021, the company reported a net loss of ₹3.79 lakh. Total annual expenses reached ₹3.88 lakh, with employee benefits costs at ₹1.44 lakh and other expenses at ₹2.44 lakh. The company generated no revenue from operations during the year, while other income stood at ₹0.09 lakh.

The Board of Directors approved the unaudited financial results for the quarter and period ended March 31, 2021, at a meeting held on June 29, 2021. The standalone financial results were reviewed by the Audit Committee and subsequently approved by the Board. The statutory auditors, P. D. Agrawal & Co., audited the quarterly and year-to-date results, confirming compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statement of assets and liabilities as of March 31, 2021, revealed that the company's total assets stood at ₹6.15 lakh, a decrease from ₹6.42 lakh in the previous year. Shareholders' funds were negative at ₹192.28 lakh, comprising share capital of ₹461.32 lakh and a negative reserve and surplus balance of ₹653.60 lakh. Current liabilities increased to ₹198.43 lakh from ₹194.91 lakh in the prior year.

The earnings per share (EPS) for the quarter ended March 31, 2021, was reported at (0.0048) on a basic and diluted basis. The financial results were prepared in compliance with Indian Accounting Standards (Ind-AS), and previous period figures have been regrouped or reclassified for comparability.

Financial Performance Summary