Swadha Nature Limited Reports Net Loss and Board Resignations
Swadha Nature Limited faced financial challenges in Q2 and H1 of FY2023-24, reporting zero revenue in Q2 and a net loss of Rs 5.43 lakhs for H1. The company's total assets decreased to Rs 86.79 lakhs. Additionally, two executive directors, Mr. Manoj Kumar Saraf and Mr. Sanjeev Kumar Saraf, resigned from the board citing personal commitments.
*this image is generated using AI for illustrative purposes only.
Swadha Nature Limited, formerly known as MS Securities Limited, has reported financial results for the quarter and half-year ended September 30, alongside significant changes in its board composition.
Financial Performance
The company's financial results for Q2 and H1 reveal a challenging period:
| Particulars (in Rs. lakhs) | Q2 | Q2 | H1 | H1 |
|---|---|---|---|---|
| Revenue from Operations | 0.00 | 1.19 | 0.93 | 8.44 |
| Total Expenses | 1.24 | 0.44 | 6.40 | 7.86 |
| Net Profit/(Loss) | (1.24) | 0.80 | (5.43) | 1.39 |
| EPS (Basic & Diluted) | (0.03) | 0.02 | (0.13) | 0.03 |
Swadha Nature Limited reported zero revenue from operations for Q2, compared to Rs 1.19 lakhs in the same quarter last year. For the half-year, the company's revenue declined to Rs 0.93 lakhs from Rs 8.44 lakhs in the previous year.
The company's financial position has deteriorated, with a net loss of Rs 5.43 lakhs for H1, compared to a profit of Rs 1.39 lakhs in the same period last year. This loss was primarily due to increased expenses, particularly in the 'other expenses' category, which rose to Rs 5.64 lakhs for the half-year.
Balance Sheet Highlights
As of September 30:
- Cash and cash equivalents stood at Rs 30.47 lakhs, down from Rs 36.82 lakhs as of March 31.
- Total assets decreased to Rs 86.79 lakhs from Rs 93.14 lakhs.
- The company's equity (including share capital and other equity) reduced to Rs 63.79 lakhs from Rs 69.21 lakhs.
Board Resignations
In a separate announcement, Swadha Nature Limited disclosed significant changes to its board of directors:
- Mr. Manoj Kumar Saraf (DIN: 00175213) resigned as Executive Director, effective October 10.
- Mr. Sanjeev Kumar Saraf (DIN: 01762532) also stepped down from his position as Executive Director on the same date.
Both directors cited personal commitments as the reason for their resignations. As promoter directors and founding members, they expressed pride in the company's journey and confidence in its future prospects.
Company Outlook
The resignations of two key promoter directors, coupled with the company's financial performance, may signal a period of transition for Swadha Nature Limited. The company's ability to navigate these changes and improve its financial position will be crucial in the coming quarters.
Swadha Nature Limited continues to operate in a single business segment, as disclosed in its financial statements. The company's management will need to focus on reversing the current financial trend and exploring new avenues for growth in the face of these challenges.
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