Arcuttipore Tea Company Annual Reports, Balance Sheet and Financials

Arcuttipore Tea Company Limited Balance Sheet (in Rs.)

Arcuttipore Tea Company Limited Profit & Loss Statement (in Rs.)

Arcuttipore Tea Company Limited Consolidated Cash Flow Statement (in Rs.)

Here is a summary of the Cash Flow Statement for the years 2018 and 2017:

Cash Flow from Operating Activities:

Net Profit before Tax and Exceptional/Non-recurring items: In 2018, the company reported a net profit before tax and exceptional/non-recurring items of -₹49,64,330.74, whereas in 2017, it reported a similar figure of -₹18,49,837.62.

Adjustments: Various adjustments were made to reconcile the net profit figure, including depreciation expenses, interest received, interest paid, and the write-back of a liability no longer required.

Operating Profit before Working Capital: After adjusting for these items, the operating profit before working capital changes was -₹29,54,835.52 in 2018 and -₹16,35,959.05 in 2017.

Changes in Working Capital: Significant changes were observed in trade and other receivables, inventories, unsecured loans and advances given, unsecured loans taken, and trade payables and other liabilities, affecting the cash generated from operations.

Cash generated from Operations: Despite these changes, the company generated cash from operations amounting to ₹81,64,266.21 in 2018 and ₹40,15,870.34 in 2017.

Direct Taxes Paid: Direct taxes paid amounted to zero in 2018 and ₹3,86,856.98 in 2017, affecting the net cash flow from operating activities.

Cash Flow from Investing Activities:

Purchase of Fixed Assets: The company invested in fixed assets, resulting in cash outflows of ₹44,04,621.83 in 2018 and ₹16,58,992.74 in 2017.

Interest Income Received: Interest income received was negative in both years due to interest expenses exceeding interest income.

Net Cash used in Investing Activities: Consequently, the net cash used in investing activities was ₹42,19,326.10 in 2018 and ₹14,37,156.33 in 2017, reflecting the company's investment in fixed assets.

Cash Flow from Financing Activities:

Interest Paid: Interest expenses were significant, leading to cash outflows of ₹45,46,470.01 in both 2018 and 2017.

Net Cash from Financing Activities: Consequently, the net cash from financing activities was ₹45,46,470.01 in both years, reflecting the company's financing activities.

Net Changes in Cash & Cash Equivalents:

The net changes in cash and cash equivalents were negative, indicating a decrease in cash reserves. It amounted to ₹-6,01,529.90 in 2018 and ₹-12,245.56 in 2017.

Opening and Closing Balance of Cash & Cash Equivalents:

The opening balance of cash and cash equivalents was ₹8,81,432.90 in 2018 and ₹8,93,678.46 in 2017. By the end of the year, the closing balance decreased to ₹2,94,559.00 in 2018 and remained at ₹8,81,432.90 in 2017, reflecting the company's liquidity position.

Financial Ratios of Arcuttipore Tea Company Limited

Here is a summary of the financial and operational metrics for Arcuttipore Tea Company Limited for the year 2018 and 2017:

Current Ratio: The current ratio increased from 0.25 in 2017 to 0.44 in 2018. While the increase suggests an improvement in the company's ability to cover its short-term liabilities with its current assets, the ratio is still below 1.0 in both years, indicating potential liquidity concerns.

Quick Ratio: The quick ratio increased from 0.12 in 2017 to 0.24 in 2018. Similar to the current ratio, this suggests an improvement in the company's liquidity position, but it's still below the desirable level of 1.0.

Inventory Turnover Ratio: The inventory turnover ratio decreased from 6.64 in 2017 to 6.08 in 2018. A decrease in this ratio indicates that the company's inventory turnover slowed down slightly in 2018 compared to the previous year. This might suggest either decreased sales or changes in inventory management practices.

Total Debt/Equity Ratio: The total debt-to-equity ratio decreased from -2.15 in 2017 to -2.26 in 2018. A negative ratio typically indicates that the company has more equity than debt. However, it's important to note that a negative ratio can sometimes be the result of certain accounting practices or financial arrangements, and further context would be needed to fully understand its implications.

Asset Turnover Ratio: The asset turnover ratio decreased from 60.61% in 2017 to 56.41% in 2018. This indicates a decrease in the company's efficiency in generating revenue from its assets. A lower asset turnover ratio may suggest inefficiencies in asset utilization or decreased sales.

Return on Capital Employed (ROCE): The return on capital employed decreased from 2.22% in 2017 to -0.65% in 2018. This indicates that the company experienced a negative return on its capital investments in 2018, which is a concerning trend. It suggests that the company's capital was not effectively utilized to generate profits during the period.