Berar Finance Annual Report, Balance Sheet and Financials

Berar Finance Limited Balance Sheet (Rs in Lakhs)

Berar Finance Limited Profit & Loss Statement (Rs in Lakhs)

Berar Finance Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Profit Before Tax

31-03-2024: ₹2,995.29 million

31-03-2023: ₹2,172.78 million

Analysis: There was an increase in profit before tax of ₹822.51 million from the previous year. This indicates that the company had higher profitability in the current year.

Adjustments for Non-Cash Items

Depreciation and Amortization Expense: Increased from ₹396.44 million to ₹467.69 million. Depreciation and amortization are non-cash charges that need to be added back to the profit.

ESOP Expense: Decreased from ₹23.47 million to ₹7.45 million. The decrease reflects lower stock-based compensation expense.

Provision for Defined Benefit Obligation: Increased from ₹60.71 million to ₹88.19 million, indicating a higher cost for employee benefits.

Finance Cost: Decreased from ₹526.23 million to ₹411.22 million, reducing the expense related to interest on borrowings.

Interest Income on Security Deposit: Slightly increased from ₹-4.44 million to ₹-5.09 million (a negative value represents income).

Interest Income on Investment: Increased from ₹-106.63 million to ₹-126.41 million, reflecting more income earned on investments.

Net Gain on Fair Value Changes in Investment: Improved from ₹-13.69 million to ₹-3.43 million.

Profit on Sale of Investment: Reported a profit in 2024 (₹-8.91 million), compared to no such profit in 2023.

Gain on Termination of Lease: A minor change from ₹-0.10 million to ₹-0.05 million.

Impairment on Financial Instruments: Increased from ₹3,067.99 million to ₹3,907.20 million. This suggests that the company had to write down the value of its financial assets more this year.

Profit on Sale of Property, Plant, and Equipment (Net): Slight decrease from ₹-2.86 million to ₹-0.50 million.

Operating Profit Before Working Capital Changes

Increased from ₹6,119.90 million to ₹7,732.65 million. This shows an improvement in operational efficiency.

Changes in Working Capital

Increase in Trade Payables: Increased from ₹26.74 million to ₹226.12 million, showing the company delayed payments to suppliers.

Increase in Other Financial Liabilities: Increased from ₹152.87 million to ₹804.19 million.

Increase/Decrease in Provisions and Other Liabilities: Decreased from ₹142.02 million to ₹-105.81 million, suggesting a reduction in provisions.

Increase/Decrease in Other Financial Assets: Increased from ₹-74.59 million to ₹636.73 million.

Increase/Decrease in Loans: A significant increase in loans from ₹-13,346.79 million to ₹-19,902.14 million, reflecting higher borrowings.

Increase/Decrease in Other Assets: A decrease from ₹12.73 million to ₹-59.38 million.

Cash Generated from/ (Used in) Operations

Turned negative from ₹-6,967.12 million to ₹-10,667.64 million, indicating more cash used in operations compared to the previous year.

Income Tax Paid

Increased from ₹757.42 million to ₹1,193.55 million.

Net Cash Used in Operating Activities

Increased from ₹-7,724.53 million to ₹-11,861.19 million, highlighting a higher outflow of cash for operational purposes.

Cash Flow from Investing Activities

Payment for Property, Plant, and Equipment, Intangible Assets, and Capital Work-in-Progress: Decreased from ₹-213.86 million to ₹-153.94 million.

Change in Other Bank Balances Not Available for Immediate Use: Increased from ₹-987.70 million to ₹-3,364.46 million, indicating a higher investment in non-liquid assets.

Proceeds from Sale of Property, Plant, and Equipment: Slightly decreased from ₹3.36 million to ₹0.90 million.

Purchase of Investments: Increased from ₹-346.30 million to ₹-370.96 million.

Proceeds from Sale of Investments: Increased from ₹90 million to ₹238.44 million.

Interest Received: Increased from ₹106.75 million to ₹128.84 million.

Net Cash Used in Investing Activities

Increased from ₹-1,347.75 million to ₹-3,521.18 million, indicating a higher outflow of cash for investments.

Cash Flow from Financing Activities

Proceeds from Bank & Financial Institution Borrowing (Net of Repayments): Increased significantly from ₹4,913.49 million to ₹15,872.49 million, reflecting a higher level of borrowing.

Debt Securities Issued: Increased from ₹2,298.53 million to ₹-7,157.43 million, indicating a reduction or repayment of debt securities.

Deposits Taken (Net of Repayments): Decreased from ₹2,947.55 million to ₹1,731.85 million.

Dividend Paid: Remained unchanged at ₹-123.37 million.

Repayment of Lease Liabilities: Decreased from ₹-401.23 million to ₹-333.82 million.

Net Cash Generated from Financing Activities

Increased from ₹9,634.97 million to ₹9,989.72 million, showing a higher inflow from financing activities.

4. Net Increase/Decrease in Cash and Cash Equivalents

31-03-2024: Decrease by ₹-5,392.65 million

31-03-2023: Increase by ₹562.69 million

Cash and Cash Equivalents at the Beginning of the Year

31-03-2024: ₹5,177.54 million

31-03-2023: ₹4,614.85 million

Cash and Cash Equivalents at the End of the Year

31-03-2024: ₹-215.12 million

31-03-2023: ₹5,177.54 million

Financial Ratios of Berar Finance Limited

Here is a summary of the financial and operational metrics for Berar Finance Limited for the years 2024 and 2023:

Tier I Capital Adequacy Ratio (CRAR)

31-03-2024: 24.25%

31-03-2023: 25.90%

Analysis:

Tier I CRAR measures the core equity capital as a percentage of risk-weighted assets. A decrease from 25.90% to 24.25% indicates a reduction in the proportion of high-quality capital (common equity) relative to the total risk-weighted assets.

Insight: Although the Tier I CRAR is still well above the regulatory minimum, the decline suggests a possible increase in risk-weighted assets or a relatively lower growth in Tier I capital compared to the growth in risk-weighted assets. It could also indicate increased leverage or reduced capital adequacy over the year.

Tier II Capital Adequacy Ratio (CRAR)

31-03-2024: 0.70%

31-03-2023: 0.43%

Analysis:

Tier II CRAR reflects the proportion of supplementary capital, including subordinated debt and other instruments, relative to risk-weighted assets. An increase from 0.43% to 0.70% suggests an improvement in the supplementary capital base.

Insight: The increase in Tier II CRAR could indicate that the institution has enhanced its non-core capital, possibly by issuing subordinated debt or other Tier II instruments. This can help in meeting regulatory capital requirements and supporting the risk-weighted asset base.

Liquidity Coverage Ratio (LCR)

31-03-2024: 136.57%

31-03-2023: 164.62%

Analysis:

LCR measures the proportion of highly liquid assets that can be used to cover net cash outflows over a 30-day stress period. A decrease from 164.62% to 136.57% indicates a reduction in the liquidity buffer available.

Insight: The decrease in LCR suggests a potential reduction in liquid assets or an increase in short-term liabilities. Although the ratio is still above 100% (the regulatory minimum), the decline may reflect tighter liquidity conditions or changes in the institution’s liquidity management strategies.