Arihant Classic Finance Annual Reports, Balance Sheet and Financials

Arihant Classic Finance Limited Balance Sheet (Rs In Lakhs)

Particulars	2023	2022
A. ASSETS
1 Financial Assets
a. Cash and Cash Equivalents	0.82	196.75
b. Loans	4,164.06	2,818.65
c. Investments	478.71	482.54
d. Other Financial assets	0.12	-
Total Financial Assets	4,643.71	3,497.95
2 Non-Financial Assets
a. Inventories 7	136.27	137.27
b. Deferred tax assets	1.8	1.8
c. Other Non-Financial assets	46.81	53.96
Total non-financial Assets	184.88	193.03
Total Assets	4,828.59	3,690.98
B. LIABILITIES AND EQUITY
I. LIABILITIES
1 Financial Liabilities
a. Borrowings	2,844.56	1,971.12
b. Other Financial liabilities	225.35	14.33
Total Financial liabilities	3,069.91	1,985.45
2 Non-Financial Liabilities
a. Current Tax Liabilities	29.26	52.4
Total non-financial liabilities	29.26	52.4
Total Liabilities	3,099.17	2,037.85
II. EQUITY
a. Equity Share Capital	1,014.81	1,014.81
b. Other Equity	714.61	638.32
Total Equity	1,729.42	1,653.13
Total Liabilities and Equity	4,828.59	3,690.98

 Arihant Classic Finance Limited Profit & Loss Statement (Rs In Lakhs)

Particulars	2023	2022
INCOME
1. Revenue from Operations
Interest Income	267.5	140.96
Sale of shares	4.02	248.75
Total revenue from operation	271.52	389.71
2. Other Income	4.64	4.79
Total Income	276.17	394.5
EXPENSES
Purchases of Stock-in-Trade	0.92	67.94
Changes in inventories of Finished Goods & Work in Progress	1	19.17
Employee Benefits Expenses	17.23	19.38
Finance Costs	127.11	63.72
Other Expenses	21.89	23.02
Investment Allowance	5.41	6.92
Total Expenses	173.55	200.15
Profit Before Exceptional Items and Tax	102.62	194.34
Profit before tax	102.62	194.34
Tax expenses:
(1) Current Tax	29.26	52.4
(2) Deferred Tax	-	-10.86
Profit for the year	73.36	131.08
Total Comprehensive income for the year, net of tax	73.36	131.08
Earning per equity share
Basic	0.72	1.29
Diluted	0.72	1.29

 Arihant Classic Finance Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Particulars	2023	2022
Cash Flow From Operating Activities
Profit before tax	102.62	194.34
Adjustments for :
Finance Costs	127.11	63.72
Tax Adjustments	-6.77
Operating profit before working capital changes	222.95	258.06
Adjustments for:
(Increase)/decrease in loans (non-current)	-1345.41	-1,723.08
(Increase)/decrease in other financial assets (non-current)	0.16	80.23
(Increase)/decrease in other non-current assets	7.15	-34.34
(Increase)/decrease in inventories	1	19.17
Increase/(decrease) in other financial liabilities (current)	211.02	-0.87
Increase/(decrease) in current provisions	-26.79	-3.65
Cash Generated From operations	-1,149.22	-1,662.55
Cash Generated From operations before extraordinary Items	-1,149.22	-1,662.55
Net Cash From/(used in) Operating Activities (A)	-926.27	-1,404.49
Cash Flow From Financing Activities
Repayment/Taken of Short term borrowings	873.44	1,651.11
Finance cost paid	-127.11	-63.72
Net Cash from/(used in) Financing Activities (C)	746.34	1,587.39
Net increase/(decrease) in Cash and Cash Equivalents	-179.93	182.9
Cash and Cash Equivalents at the end of the year	16.82	196.75
Components of cash and cash equivalents
Cash on Hand	0.44	2.99
With banks -
On Current Accounts & cheque in hand	0.38	193.76
Total cash and cash equivalents	0.82	196.75

 Certainly, here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Cash Flow From Operating Activities:

1. Profit before tax:

In 2023, the company had a profit before tax of Rs 102.62.

In 2022, the company had a profit before tax of Rs 194.34.

2. Adjustments for Finance Costs:

In 2023, the company incurred finance costs of Rs 127.11.

In 2022, the company incurred finance costs of Rs 63.72.

3. Tax Adjustments:

In 2023, there is a tax adjustment of -Rs 6.77, indicating a reduction in tax expense.

The tax adjustment for 2022 is not specified.

4. Operating profit before working capital changes:

This represents the company 's profit before taking into account changes in working capital. In 2023, it was Rs 222.95, and in 2022, it was Rs 258.06.

5. Adjustments for Changes in Non-Current Assets and Liabilities:

 (Increase)/decrease in loans (non-current) shows how much long-term loans increased or decreased. In 2023, it decreased by Rs -1,345.41, and in 2022, it decreased by Rs -1,723.08.

(Increase)/decrease in other financial assets (non-current) represents changes in non-current financial assets. In 2023, it increased by Rs 0.16, and in 2022, it increased by Rs 80.23.

(Increase)/decrease in other non-current assets indicates changes in other non-current assets. In 2023, it increased by Rs 7.15, and in 2022, it decreased by Rs -34.34.

6. Changes in Current Assets and Liabilities:

(Increase)/decrease in inventories represents the change in the value of inventories. In 2023, it increased by Rs 1, and in 2022, it increased by Rs 19.17.

Increase/(decrease) in other financial liabilities (current) shows changes in current financial liabilities. In 2023, it increased by Rs 211.02, and in 2022, it decreased by Rs -0.87.

Increase/(decrease) in current provisions indicates changes in provisions set aside for future expenses. In 2023, it decreased by Rs -26.79, and in 2022, it decreased by Rs -3.65.

7. Cash Generated From operations:

This represents the cash generated from the company 's core operating activities after taking into account all the adjustments. In 2023, it was -Rs 1,149.22 (negative, indicating cash outflow), and in 2022, it was -Rs 1,662.55.

Net Cash From/(used in) Operating Activities :

This is the final figure for cash generated or used in the company 's day-to-day operations. In 2023, it was -Rs 926.27, and in 2022, it was -Rs 1,404.49.

Cash Flow From Financing Activities:

This section shows the cash flows related to the company 's financing activities.

1. Repayment/Taken of Short term borrowings:

In 2023, the company took Rs 873.44 in short-term borrowings.

In 2022, the company took Rs 1,651.11 in short-term borrowings.

2. Finance cost paid:

In 2023, the company paid finance costs of -Rs 127.11 (negative indicates cash outflow).

In 2022, the company paid finance costs of -Rs 63.72.

3. Net Cash from/(used in) Financing Activities (C):

This is the net result of the financing activities. In 2023, it was Rs 746.34, and in 2022, it was Rs 1,587.39.

Net increase/(decrease) in Cash and Cash Equivalents:

This figure represents the overall change in cash and cash equivalents during the year.

In 2023, there was a net decrease of -Rs 179.93 (negative indicates a decrease).

In 2022, there was a net increase of Rs 182.9.

Cash and Cash Equivalents at the end of the year:

This shows the total cash and cash equivalents at the end of the year.

In 2023, it was Rs 16.82.

In 2022, it was Rs 196.75.

Components of cash and cash equivalents:

This section breaks down the types of cash and cash equivalents.

1. Cash on Hand:

In 2023, the company had Rs 0.44 in cash on hand.

In 2022, the company had Rs 2.99 in cash on hand.

2. With banks - On Current Accounts & cheque in hand:

In 2023, the company had Rs 0.38 in current accounts and cheques in hand.

In 2022, the company had Rs 193.76 in current accounts and cheques in hand

3. Total cash and cash equivalents:

In 2023, the total cash and cash equivalents were Rs 0.82.

In 2022, the total cash and cash equivalents were Rs 196.75.

Please note that a negative value in the cash flow statement indicates cash outflow or a decrease in cash, while a positive value indicates cash inflow or an increase in cash.

Below are the Financial Ratios

Particulars	2023	2022
Interest Coverage Ratio	1.81	3.88
Current Ratio	1.4	1.57
Debt Equity Ratio	2.21	1.54
Net profit margin in Percentage	0.27	0.34

Here is a summary of the financial and operational metrics for Arihant Classic Finance Limited for the years 2023 and 2022:

1. Interest Coverage Ratio:

2023: The Interest Coverage Ratio in 2023 was 1.81. This means that the company 's operating profits were 1.81 times higher than its interest expenses for that year.

2022: In 2022, the Interest Coverage Ratio was 3.88, indicating that the company 's operating profits were 3.88 times higher than its interest expenses.

The Interest Coverage Ratio is a crucial financial metric that assesses a company 's ability to meet its interest obligations on its debt. A higher ratio is generally preferable because it suggests a stronger ability to cover interest expenses. A declining Interest Coverage Ratio from 2022 to 2023 might indicate that the company 's profitability relative to its interest expenses has reduced, potentially raising concerns about its ability to service its debt.

2. Current Ratio:

2023: The Current Ratio in 2023 was 1.4. This means that the company had 1.4 times more current assets than current liabilities.

2022: In 2022, the Current Ratio was 1.57, indicating that the company had 1.57 times more current assets than current liabilities.

The Current Ratio is a measure of a company 's liquidity and its ability to meet its short-term financial obligations. A ratio above 1.0 typically suggests that the company can cover its short-term liabilities with its short-term assets. While both years have Current Ratios above 1.0, the decrease in the ratio from 2022 to 2023 could mean the company had slightly less liquidity in 2023.

3. Debt Equity Ratio:

2023: The Debt Equity Ratio in 2023 was 2.21. This means that for every unit of equity, the company had 2.21 units of debt.

2022: In 2022, the Debt Equity Ratio was 1.54, indicating that for every unit of equity, the company had 1.54 units of debt.

The Debt Equity Ratio is a measure of a company 's financial leverage, showing the proportion of debt used to finance its assets compared to shareholders ' equity. A higher ratio indicates higher financial leverage, which can be a sign of greater risk. The increase in the Debt Equity Ratio from 2022 to 2023 suggests that the company took on more debt relative to its equity, potentially increasing its financial risk.

4. Net Profit Margin in Percentage:

2023: The Net Profit Margin in 2023 was 0.27%. This means that the company 's net profit represented 0.27% of its total revenue.

2022: In 2022, the Net Profit Margin was 0.34%, indicating that the company 's net profit represented 0.34% of its total revenue.

The Net Profit Margin is a measure of a company 's profitability. A higher net profit margin is generally preferred as it indicates better profitability. The decrease in the Net Profit Margin from 2022 to 2023 suggests that the company 's profitability declined slightly in 2023.

In summary, these metrics provide insights into the financial health and performance of Arihant Classic Finance Limited:

The Interest Coverage Ratio declined from 2022 to 2023, which may raise concerns about the company 's ability to cover its interest expenses.

The Current Ratio, while above 1.0 in both years, decreased slightly, indicating slightly lower liquidity in 2023.

The Debt Equity Ratio increased significantly, suggesting higher financial leverage and potentially increased risk.

The Net Profit Margin decreased, indicating slightly lower profitability in 2023 compared to 2022.