Shyam Telecom Reports Zero Revenue and ₹394.58 Lakh Net Loss in Q1
Shyam Telecom Limited reported no revenue from operations and a net loss of ₹394.58 lakh in the first quarter. The company's only income was ₹3.57 lakh from other sources, while total expenses reached ₹398.29 lakh. The financial results reveal a fully eroded net worth and current liabilities exceeding current assets. Despite these challenges, management continues to prepare financial statements on a going concern basis. The company also announced arrangements for its 32nd Annual General Meeting, including e-voting processes.
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Shyam Telecom Limited , a telecommunications company, has released its financial results for the first quarter, revealing significant challenges in its operations and financial health.
Financial Performance
The company reported no revenue from operations for the quarter, indicating a complete halt in its primary business activities. The only income generated was ₹3.57 lakh from other sources, which was insufficient to cover the company's expenses.
Shyam Telecom's total expenses for the quarter amounted to ₹398.29 lakh, resulting in a net loss of ₹394.58 lakh. This translates to a loss per share of ₹3.50.
Financial Position
The financial results paint a concerning picture of Shyam Telecom's financial health:
- The company's net worth has been fully eroded.
- Current liabilities substantially exceed current assets.
- The company incurred a net cash loss during the quarter.
Despite these challenges, the management continues to prepare financial results on a going concern basis, indicating their intention to continue operations.
Breakdown of Expenses
The major components of the company's expenses for the quarter were:
| Expense Category | Amount (₹ in Lakh) |
|---|---|
| Employee Benefits | 32.52 |
| Depreciation and Amortisation | 3.35 |
| Other Expenses | 362.42 |
| Total Expenses | 398.29 |
Annual General Meeting Arrangements
In other corporate matters, the Board of Directors has approved arrangements for the 32nd Annual General Meeting (AGM) of the company. Key points include:
- The AGM will be held via video conferencing or other audio-visual means.
- M/s Soniya Gupta & Associates, Practicing Company Secretaries, have been appointed as scrutinizers for the e-voting process.
- NSDL (National Securities Depository Limited) has been appointed to manage the electronic voting process.
Auditor's Review
The independent auditor's limited review report highlights the material uncertainty regarding the company's ability to continue as a going concern, given the fully eroded net worth and the substantial excess of current liabilities over current assets.
Outlook
The absence of operational revenue and the significant net loss pose serious challenges for Shyam Telecom. The company's ability to turn around its operations and improve its financial position will be crucial for its future sustainability. Investors and stakeholders will likely be watching closely for any strategic initiatives or restructuring plans that the company may undertake to address these financial difficulties.
Historical Stock Returns for Shyam Telecom
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.57% | -0.89% | -6.00% | -5.86% | -55.47% | +144.40% |
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