Garlon Polyfab Industries Limited reported a net loss of ₹43,855 for the quarter ended September 30, 2016, with zero income from operations recorded during the period. The unaudited financial results, approved by the Board of Directors on December 29, 2016, reveal that the company's total expenses for the quarter amounted to ₹43,855, comprising employee benefits and other expenses. The loss for the half year ended September 30, 2016, widened to ₹1,98,196 compared to ₹1,56,870 in the corresponding period of the previous year.

The Board meeting, which commenced at 04:00 P.M. and concluded at 05:00 P.M., also approved the Limited Review Report from P. D. Agrawal & Co., Chartered Accountants. The report noted that the company has adopted Indian Accounting Standards (Ind AS) for the financial year commencing April 1, 2016. The auditors stated that they did not review the comparative figures for the quarter ended September 30, 2016, which were furnished by the management.

Financial Performance

The standalone statement of assets and liabilities as of September 30, 2016, shows shareholders' funds at a negative ₹12,848,814, a deterioration from the negative ₹12,198,580 recorded in the previous year. The company's total assets stood at ₹5,748,463, a decrease from ₹6,091,797 in the previous year. Current liabilities increased to ₹18,597,277 from ₹18,290,377 in the prior year.

Cash Flow Analysis

The cash flow statement for the half year ended September 30, 2016, indicates a net cash outflow from operating activities of ₹2,09,642.01. There were no cash flows from investing or financing activities during the current period. Cash and cash equivalents at the end of the period were ₹26,014, significantly lower than the ₹1,73,810 reported in the previous year.

The financial results were reviewed by the Audit Committee and approved by the directors. The company remains engaged in a single business segment, as per the notes accompanying the financial statements.

Garlon Polyfab Industries Ltd returned to profitability in the fourth quarter of FY19, reporting a net profit of ₹8.77 lakh for the period ended March 31, 2019. This marks a significant turnaround from the net loss of ₹1.12 lakh recorded in the corresponding quarter of the previous year. The company’s financial performance for the full year also improved, with the net loss narrowing to ₹2.34 lakh for the year ended March 31, 2019, compared to a loss of ₹1.94 lakh in FY18.

The Board of Directors approved the audited standalone financial results at its meeting held on May 15, 2019. The Audit Committee had previously reviewed these results on the same date. P. D. Agrawal & Co., Chartered Accountants, audited the quarterly and year-to-date results, issuing an unmodified opinion in their report dated May 14, 2019.

Financial Performance

The company reported total income from operations of ₹13.10 lakh for the quarter ended March 31, 2019, entirely derived from other income. Total expenses for the quarter stood at ₹4.33 lakh, primarily driven by other expenses. In comparison, the company had recorded no income and total expenses of ₹1.12 lakh in the quarter ended March 31, 2018.

For the full year, total income remained at ₹13.10 lakh, while total expenses increased to ₹15.44 lakh from ₹1.94 lakh in the previous year. The rise in expenses was largely attributed to other expenses, which amounted to ₹15.44 lakh for the year ended March 31, 2019.

Key Metrics

Balance Sheet Position

As of March 31, 2019, Garlon Polyfab Industries Ltd’s total assets stood at ₹6.50 lakh, a decrease from ₹7.40 lakh in the previous year. The shareholders' funds were negative at ₹186.08 lakh, worsening from a negative balance of ₹170.64 lakh in the prior year. Current liabilities increased to ₹192.58 lakh from ₹178.04 lakh over the same period.

The paid-up equity share capital remained constant at ₹461.32 lakh with a face value of ₹10 per share. The company’s cash and cash equivalents decreased to ₹0.74 lakh as of March 31, 2019, down from ₹1.64 lakh a year earlier.