Budge Budge Company Annual Reports, Balance Sheet and Financials

BUDGE BUDGE COMPANY LTD Balance Sheet (In Lakhs)

BUDGE BUDGE COMPANY LTD Profit & Loss Statement (In Lakhs)

BUDGE BUDGE COMPANY LTD Consolidated Cash Flow Statement (In Lakhs)

The cash flow statement for the year 2023 and 2022 can be summarized as follows:

A. Cash Flow from Operating Activities:

- Profit/(Loss) Before Tax: In 2023, the company reported a profit before tax of 137.24 lakhs, whereas in 2022, it had a loss of -70.54 lakhs.

- Adjustments: Various adjustments were made to calculate the operating cash flow. These adjustments include depreciation/amortization, interest expenses, rent, dividend income, interest income, profit/loss on property, plant, and equipment, sundry balance written back/off, interest received on income tax refund, and fair value gain/loss on non-current investments.

- Operating Profit Before Working Capital Changes: In 2023, the operating profit before working capital changes was 919.62 lakhs, an improvement from 660.56 lakhs in 2022.

- Changes in Working Capital: Significant changes in working capital were observed. Trade receivables, advances, and other assets decreased by 66.00 lakhs in 2023, while trade payables, other liabilities, and provisions increased by 1,542.93 lakhs. Inventories decreased by -1,755.90 lakhs.

- Cash Generated from/(Used in) Operations: The cash generated from operations in 2023 was 640.65 lakhs, a decrease from 1,039.06 lakhs in 2022.

- Income Taxes Refunded/(Paid): Income taxes refunded increased to 28.75 lakhs in 2023 from -44.68 lakhs in 2022.

- Net Cash Flow from/(Used in) Operating Activities: In 2023, the net cash flow from operating activities was 669.40 lakhs, down from 994.38 lakhs in 2022.

B. Cash Flow from Investing Activities:

- Purchase of Property, Plant, and Equipment/Intangible: In 2023, the company spent -443.65 lakhs on the purchase of property, plant, and equipment or intangible assets, whereas in 2022, it gained 316.35 lakhs from such activities.

- Capital Work in Progress: The capital work in progress decreased by -108.12 lakhs in 2023 compared to a decrease of -224.12 lakhs in 2022.

- Intangible Assets under Development: In both years, there was a -4.00 lakhs change in intangible assets under development.

- Proceeds from Sale of Property, Plant, and Equipment: In 2023, the company earned 26.00 lakhs from the sale of property, plant, and equipment, compared to 24.02 lakhs in 2022.

- Advance for Capital Expenditure: In 2023, the company had an advance for capital expenditure of 10.16 lakhs.

- Other Income: This includes dividend income, investments in/maturity of bank deposits, loans realized, rent, and interest. There was a slight increase in dividend income from 1.49 lakhs in 2022 to 1.77 lakhs in 2023.

- Net Cash Flow from/(Used in) Investing Activities: In 2023, the net cash flow from investing activities was -175.16 lakhs, indicating a decrease in cash due to these activities, compared to -122.60 lakhs in 2022.

In the data below, are the Financial Ratios

In 2023, the company 's financial performance reflects a mix of positive and negative trends across various aspects of its operations. Let 's break down the particulars by activity to gain a clearer understanding of the situation.

1. Profitability:

   - EBITDA stands at an impressive 196.89%, indicating a robust operating profit margin. This suggests that the company is generating substantial earnings from its core operations.

2. Financial Health:

   - Net worth is at a concerning -2.02%, which suggests that the company 's liabilities outweigh its assets. This is a significant issue that requires attention to strengthen the company 's financial position.

3. Leverage:

   - The Debt/Equity Ratio is 0.65, indicating that the company has a moderate level of debt compared to its equity. This ratio suggests a balanced approach to financing, but the negative net worth raises concerns about its ability to service this debt.

4. Return on Equity (ROE):

   - ROE is relatively low at 3.58%. While it indicates some profitability for shareholders, the negative net worth means that shareholders ' equity is eroding, and efforts should be made to improve this metric.

5. Asset Management:

   - Total Assets have grown by 18.89%, which might suggest an expansion strategy. However, the negative Fixed Assets growth (-3.14%) might imply that the company has reduced its long-term investments. This decision could be intentional or indicative of financial challenges.

6. Working Capital:

   - Current Assets have surged by 54.21%, signifying an increase in short-term assets like cash, inventory, and accounts receivable. Simultaneously, Current Liabilities have also grown by 37.07%, which could indicate higher short-term obligations. This highlights the importance of managing working capital effectively.

7. Accounts Receivable and Payables:

   - Trade Receivables have ballooned by 119.45%, suggesting that the company might be offering more generous credit terms to customers. However, Trade Payables have also increased by 52.93%, indicating that the company might be taking advantage of extended payment terms from its suppliers.

8. Liquidity:

   - The Current Ratio stands at 0.79, which is less than 1. This indicates that the company may have difficulty meeting its short-term obligations with its current assets. This is a critical liquidity concern and requires attention to ensure financial stability.