Capillary Technologies India Limited Annual Report and Financials

Capillary Technologies India Limited Balance Sheet (Rs In millions)

Capillary Technologies India Limited Profit& Loss Statement (Rs In millions)

Capillary Technologies India Limited Consolidated Cash Flow Statement (Rs In millions)

Here is a summary of the Cash Flow Statement for the years 2022 and 2021:

1. Cash Flow from Operating Activities:

   In 2022, the company 's operating activities generated a net cash inflow of INR 71.59 million, a significant improvement from the previous year. This positive cash flow was primarily driven by adjustments made to the loss before exceptional items and tax. Depreciation and amortization expenses increased to INR 287.15 million, while employee stock option expenses surged to INR 389.64 million. Working capital adjustments, including a notable decrease in trade receivables by INR 94.42 million, contributed positively to the overall cash flow from operations.

2. Cash Flow from Investing Activities:

   The investing activities of the company in 2022 resulted in a substantial net cash outflow of INR -1136.59 million. This outflow was largely due to investments in property, plant, and equipment, intangible assets, and assets under development, amounting to INR -173.3 million. The acquisition of a subsidiary had a significant negative impact, contributing to an adjustment of INR -900.57 million. Despite some positive contributions, such as finance income received and proceeds from the sale of assets, the overall investing activities reflected a strategic commitment towards future growth.

3. Cash Flow from Financing Activities:

   Financing activities in 2022 generated a net cash inflow of INR 962.25 million, a notable increase from the previous year. Key contributors included proceeds from long-term borrowings (INR 441.63 million), a substantial change in capital (INR -428.29 million), and positive short-term borrowings (INR 244.82 million). The company also raised capital through the issuance of shares, amounting to INR 886 million. Finance costs paid and payments related to lease liabilities were notable aspects, totaling -INR 51.96 million and -INR 15.37 million, respectively.

4. Net Decrease/Increase in Cash and Cash Equivalents:

   The net change in cash and cash equivalents for 2022 reflected a decrease of INR -102.75 million, signifying the impact of the company 's operational, investing, and financing decisions on overall liquidity. This is a departure from the positive trend observed in 2021, where there was an increase of INR 148.93 million in cash and cash equivalents.

5. Cash and Cash Equivalents at the Beginning of the Year:

   The year 2022 began with the company holding cash and cash equivalents totaling INR 385.76 million, showcasing an improved liquidity position compared to the beginning balance of INR 236.7 million in 2021.

6. Effect of Exchange Differences on Cash and Cash Equivalents:

   The effect of exchange differences on cash and cash equivalents in foreign currency was INR 8.93 million in 2022, indicating potential currency fluctuations impacting the company 's cash holdings. This contrasted with the minor impact of INR 0.13 million in 2021.

7. Cash and Cash Equivalents at the End of the Year:

   The closing balance of cash and cash equivalents at the end of 2022 was INR 291.94 million. Despite a decrease from the beginning balance, this figure suggests that the company maintained a satisfactory level of liquidity to support its operations and strategic initiatives

Below are the Financial Ratios:

Let 's analyze the financial particulars for the year 2022 point by point:

1. EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization):

   In 2022, the company 's EBITDA margin was -92.05%. This negative margin indicates that the company 's operating earnings were insufficient to cover its operating expenses, suggesting a challenging financial performance.

2. Net worth:

   The net worth of the company in 2022 stood at 359.66%, indicating that the shareholders ' equity is substantial compared to the total liabilities. This can be a positive sign, showcasing a strong financial position and the ability to cover obligations.

3. Debt/Equity Ratio:

   The debt/equity ratio of 0.4 signifies a relatively conservative capital structure. A ratio below 1 suggests that the company relies more on equity financing than debt, which can be considered a financially prudent approach, indicating lower financial risk.

4. Return on Equity (ROE):

   The return on equity for the year was -14.75%, reflecting a negative return. This suggests that the company 's ability to generate profit from shareholders ' equity was not successful in 2022, indicating potential operational or financial challenges.

5. Total Assets:

   The total assets increased to 226.40% in 2022, indicating growth. A significant rise in total assets could be due to strategic investments, acquisitions, or expansion, which might have implications for the company 's overall risk and return profile.

6. Fixed Assets:

   Fixed assets constituted 70.83% of the total assets. This percentage reflects the proportion of long-term, tangible assets, such as property and equipment, in the company 's overall asset structure.

7. Current Assets:

   Current assets increased to 117.27%, indicating a higher proportion of short-term assets. This could be due to an increase in cash, receivables, or other liquid assets, potentially supporting the company 's short-term liquidity.

8. Current Liabilities:

   Current liabilities surged to 194.28%, suggesting an increase in short-term obligations. This could be attributed to various factors, such as increased trade payables or accrued expenses, and might impact the company 's short-term financial health.

9. Trade Receivables:

   Trade receivables increased by 113.10%, implying a rise in outstanding customer payments. While this could be indicative of increased sales, managing receivables efficiently is crucial to maintaining healthy cash flow.

10. Trade Payables:

    Trade payables rose sharply by 271.52%, indicating an increase in outstanding payments to suppliers. While this might provide short-term liquidity benefits, it 's essential to manage payables effectively to maintain positive supplier relationships.

11. Current Ratio:

    The current ratio stands at 1.55, suggesting that the company has 1.55 times more current assets than current liabilities. This indicates reasonable short-term liquidity, as a ratio above 1 typically implies the ability to cover short-term obligations.