Western Ministil Reports Rs 5.07 Lakh Net Loss in Q1, Continues to Face Financial Challenges

Western Ministil Limited , a company grappling with financial difficulties, has reported a net loss of Rs 5.07 lakh for the quarter ended June 30. The company's Board of Directors approved the unaudited financial results in a meeting held on August 8.

Financial Performance

The company's financial situation remains precarious, with no revenue from operations during the quarter. The total expenses for the period stood at Rs 5.07 lakh, primarily consisting of other expenses. This resulted in a loss per share of Rs 0.24 for the quarter.

Comparing the results with previous periods:

While the loss has decreased compared to the previous quarter, it has increased year-over-year, indicating ongoing financial challenges.

Financial Position and Liabilities

Western Ministil's financial position remains concerning. The company's accumulated losses exceed its paid-up share capital of Rs 215.72 lakh and free reserves. Additionally, current liabilities surpass current assets, raising questions about the company's ability to meet short-term obligations.

The company owes a total of Rs 488.19 lakh to various parties, including:

• Rs 158.26 lakh to related parties
• Rs 103.34 lakh to other companies

Notably, there is an unprovided accrued interest of Rs 278.07 lakh since April 2001 on borrowings from a related party. The company has not made provisions for this interest due to financial difficulties and lack of funds.

Operational Status and Future Outlook

Western Ministil has not conducted any manufacturing activities since the closure of its plant in 1995. However, the management is exploring business revival opportunities and other fresh business ventures. Despite the challenging financial situation, the company continues to prepare its accounts on a going concern basis.

Auditor's Review

The independent auditors, MAARK & Associates, conducted a limited review of the financial results. They emphasized the non-provision of interest on borrowings and the company's accumulated losses exceeding its paid-up share capital and free reserves. The auditors noted that these factors indicate material uncertainty about the company's ability to continue as a going concern.

Western Ministil's shares are listed on the BSE with the scrip code 504998. As the company continues to navigate its financial challenges, stakeholders will be closely watching for any signs of potential business revival or strategic changes in the coming quarters.