Garlon Polyfab reports net loss of ₹0.38 lakh in Q2FY21
Garlon Polyfab Industries Limited posted a net loss of ₹0.38 lakh for Q2FY21 with no operational income. Total expenses for the quarter were ₹0.38 lakh, primarily driven by employee costs. For the half-year ended September 30, 2020, the net loss widened to ₹1.00 lakh. The company's shareholders' funds remained in deficit at ₹189.50 lakh.
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Garlon Polyfab Industries Limited reported a net loss of ₹0.38 lakh for the quarter ended September 30, 2020, as per its unaudited financial results. The company recorded no income from operations during the period, while total expenses stood at ₹0.38 lakh. The primary expense component was employee benefits, which accounted for ₹0.36 lakh, alongside other expenses of ₹0.02 lakh.
The Board of Directors approved the unaudited financial results for the quarter and half-year ended September 30, 2020, at a meeting held on November 12, 2020. The results were reviewed by the Audit Committee on November 8, 2020. P. D. Agrawal & Co., Chartered Accountants, conducted a limited review of the financial statements in accordance with the Standard on Review Engagement (SRE) 2410 issued by the Institute of Chartered Accountants of India.
For the half-year ended September 30, 2020, the company reported a net loss of ₹1.00 lakh on total expenses of ₹1.00 lakh. Employee benefits expense for the half-year was ₹0.72 lakh, and other expenses totaled ₹0.28 lakh. The company’s paid-up equity share capital remained constant at ₹46,132,000.00, with a face value of ₹10 per share. The earnings per share (EPS) for both the quarter and half-year were reported as (0.00).
The statement of assets and liabilities as of September 30, 2020, showed total assets of ₹7.77 lakh, comprising non-current assets of ₹6.97 lakh and current assets of ₹0.80 lakh. The shareholders' funds stood at a negative ₹189.50 lakh, driven by reserves and surplus of negative ₹650.82 lakh against a share capital of ₹461.32 lakh. Current liabilities were recorded at ₹197.22 lakh, including short-term borrowings of ₹190.86 lakh.
The cash flow statement for the half-year ended September 30, 2020, indicated a net increase in cash and cash equivalents of ₹0.66 lakh. Cash flow from operating activities was positive at ₹0.14 lakh, while there was no cash flow from investing or financing activities. The closing cash and cash equivalents balance was reported at ₹0.80 lakh.
Financial Performance Summary
| Metric | Q2FY21 (Unaudited) | H1FY21 (Unaudited) |
|---|---|---|
| Net Profit/Loss | (0.38) | (1.00) |
| Total Expenses | 0.38 | 1.00 |
| Employee Benefits Expense | 0.36 | 0.72 |
| Other Expenses | 0.02 | 0.28 |
| Earnings Per Share (Basic) | (0.00) | (0.00) |
Assets and Liabilities Snapshot
| Category | 30-09-2020 (₹ in Lacs) | 30-09-2019 (₹ in Lacs) |
|---|---|---|
| Total Assets | 7.77 | 6.45 |
| Non-Current Assets | 6.97 | 5.76 |
| Current Assets | 0.80 | 0.69 |
| Shareholders' Funds | (189.50) | (186.53) |
| Current Liabilities | 197.22 | 192.98 |
What strategies does the company plan to implement to resume operations and generate revenue in the upcoming quarters?
How will the company manage its significant short-term borrowings given the current lack of operational income?
Are there any plans for capital infusion or restructuring to address the negative shareholders' equity?
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