Transglobe Foods Reports ₹5.23 Lakh Net Loss Amid Going Concern Uncertainty
Transglobe Foods Limited reported a net loss of ₹5.23 lakhs for the quarter ended June 30, with accumulated losses reaching ₹85.10 lakhs. Statutory auditors Bilimoria Mehta & Co. highlighted material uncertainty about the company's ability to continue as a going concern. Management remains optimistic, citing deferred repayments from creditors and confidence in future revenue generation. The financial results were prepared in accordance with Ind AS 34 and submitted as per SEBI regulations.
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Transglobe Foods Limited, a Mumbai-based company, has released its unaudited standalone financial results for the quarter ended June 30, revealing a net loss and raising questions about its ability to continue as a going concern.
Financial Performance
The company reported a net loss of ₹5.23 lakhs for the quarter ended June 30. This loss contributes to Transglobe Foods' accumulated losses, which now stand at ₹85.10 lakhs. The financial results were approved by the company's Board of Directors at a meeting held on August 12.
Auditor's Review and Going Concern Uncertainty
Bilimoria Mehta & Co., the company's statutory auditors, conducted a review of the financial results. In their report, the auditors highlighted a material uncertainty related to Transglobe Foods' ability to continue as a going concern. This assessment is based on the company's recent financial performance and accumulated losses.
Management's Perspective
Despite the concerns raised by the auditors, Transglobe Foods' management remains optimistic about the company's future. The management has cited several factors supporting their view:
- Deferral of Repayments: The company has received deferral letters from creditors regarding the repayment of borrowings and interest.
- Revenue Generation: Management expressed confidence in the company's ability to generate sufficient revenue to repay its borrowings and other liabilities.
- Going Concern Basis: Based on these factors, the management believes that the use of the going concern basis of accounting remains appropriate for the preparation of financial statements.
Regulatory Compliance
The financial results were prepared in accordance with the Indian Accounting Standard 34 (Ind AS 34) and other accounting principles generally accepted in India. The company has submitted these results in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
As the company navigates through these financial challenges, stakeholders will be closely watching Transglobe Foods' performance in the coming quarters to assess its ability to turn around its financial situation and address the going concern uncertainties.
Historical Stock Returns for Transglobe Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.74% | +6.89% | +25.38% | +50.60% | +99.49% | +22.96% |
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