Garden Silk Mills Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018


1 The above results have been reviewed and recommended for adoption by the Audit Committee and subsequently approved and taken on record by the Board of Directors of the Company at their respective meetings held on 4th February, 2019. The Statutory Auditors of the Company have carried out a Limited Review of the financial results for the quarter / nine months ended 31st December, 2018 and expressed an Unqualified Report on the aforesaid results.

2 Effective 1st July, 2017, sales are recorded net of GST whereas earlier sales were recorded gross of excise duty which formed part of expenses. Hence, revenue from operations for the nine months ended 31st December, 2018 is not comparable to that extent with that of the corresponding previous period.

3 The Company has term loans, working capital and other financing arrangements from certain banks and other lenders. These lenders have declared their arrangements with the Company as non-performing asset since the Company has defaulted in repayment of principal, interest and other penal dues. One of the members of company’s consortium funding viz, Corporation Bank Limited, has filed an application with National Company Law Tribunal (NCLT) Ahmedabad Bench, Ahmedabad for initiation of Corporate Insolvency Resolution Process (CIRP) against the Company under Section 7 of the Insolvency and Bankruptcy Code, 2016 which is likely to come up for hearing for its admission in due course. Irrespective of these developments, management's efforts for financial restructuring including identifying a potential investor are on and the management is confident of a positive outcome and has accordingly prepared financial results on a going concern basis.

4 Effective 1st April, 2018, Ind AS 115, 'Revenue From Contracts with Customers' is applicable to the Company, however there is no material impact on the above results.

5 The Company's business segment consists of a single segment of "Textiles" in accordance with the requirement of Indian Accounting Standards (Ind AS) - 108 Operating Segments. Accordingly, no separate segment information is required to be provided.

6 Previous period's / year's figures have been regrouped / reclassified wherever necessary.