Castle Traders Annual Reports, Balance Sheet and Financials

Castle Traders Limited Balance Sheet (Rs In Thousands)

Particulars	2023	2022
Assets
Non-current assets
Property, plant and equipment	227	5
Financial assets
(i) Investments	37,068	7,541
Total non-current assets	37,295	7,546
Current assets
Financial assets
(i) Loans	10,000	-
(ii) Trade receivables	-	9,332
(iii) Cash and cash equivalents	1,116	13
Other Current Asset	335	35
Current Tax Asset (Net)	125	35
Total current assets	11,576	9,415
Total Assets	48,871	16,961
Equity and Liabilities
Equity
Equity share capital	2,450	2,450
Other equity	38,185	13,034
Total equity	40,635	15,484
Non-current liabilities
Deferred tax Liability (net)	7,156	873
	7,156	873
Current liabilities
Financial liabilities
(i) Trade payables
total outstanding dues of creditors other than micro enterprises and small enterprises	275	534
Other current liabilities	805	70
Total current liabilities	1,080	604
Total liabilities	8,236	1,477
Total Equity and Liabilities	48,871	16,961

 Castle Traders Limited Profit & Loss Statement (Rs In Thousand)

Particulars	2023	2022
Income
Revenue from operations	144,110	131,819
Other income	253	222
Total Income	144,363	132,041
Expenses
Purchase of traded goods	137,223	123,040
(Increase)/Decrease in inventories of finished goods	-	878
Employee benefits expense	1,226	1,808
Finance costs	-	2
Depreciation and amortization expense	11	3
Other expenses	4,144	3,872
Total expense	142,604	129,602
Profit before tax	1,759	2,439
Current tax	453	633
Deferred tax (net)	2	0
Income tax expense	455	632
Profit for the year (I)	1,304	1,807
Gain / (loss) on FVOCI equity securities (Net)	30,119	-19,226
Deferred tax (net)	-6,281	3,895
	23,837	-15,331
Other comprehensive profit for the year, net of tax	23,837	-15,331
Total comprehensive income for the year, net of tax	25,141	-13,524
Earnings per equity share
Basic and diluted	5.32	7.38
Nominal value per equity share (Rs)	10	10

 Castle Traders Limited Consolidated Cash Flow Statement (Rs In Thousand)

Particulars	2023	2022
Cash flow from operating activities
Net Profit/(loss) before tax and extraordinary items	1,759	2,439
Adjustments for:
Depreciation	11	3
Interest Income	-29	-52
Dividend income	-	0
Finance costs	-	2
Cash flows before working capital changes	1,742	2,392
Adjustments for:
Trade receivables	9,332	2,873
Other current assets	-301	-30
Inventories	-	878
Other current liabilities	735	-1,350
Trade payables	-259	-6,186
Cash flows from operating activities	11,249	-1,422
Direct taxes paid (net)	-534	-193
Net cash flows from operating activities	10,715	-1,614
Cash flow used in investing activities
Purchase of Fixed Assets	-233	-
Proceeds from issue of equity shares	592	1
Interest Received	29	52
Dividend received	-	0
Net cash used in investing activities	388	53
Cash flow from financing activities
Loans	-10,000
Interest paid	-	-2
Net cash from financing activities	-10,000	-2
Net decrease in cash and cash equivalents	1,103	-1,563
Opening balance of cash and cash equivalents	13	1,576
Closing balance of cash and cash equivalents	1,116	13
Net decrease in cash and cash equivalents	1,103	-1,563

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

Cash Flow from Operating Activities:

1. Net Profit/(Loss) before tax and extraordinary items:

In 2023, the company reported a net profit of 1,759 before tax and extraordinary items.

In 2022, the net profit before tax and extraordinary items was higher at 2,439.

Explanation: This item represents the company 's profit or loss before accounting for income tax and any extraordinary items. In 2023, the company 's pre-tax profit was 1,759, which decreased from 2,439 in 2022.

2. Adjustments:

Depreciation:

In 2023, the company had depreciation expenses of 11.

In 2022, depreciation expenses were lower at 3.

Explanation: Depreciation represents the allocation of the cost of assets over their useful life. The company increased its depreciation expense from 3 in 2022 to 11 in 2023, which could be due to the acquisition of new assets.

Interest Income:

In 2023, the company received interest income of -29, indicating an interest - expense.

In 2022, the interest income was -52, suggesting a larger interest expense.

Explanation: Interest income and expenses reflect the company 's cost of borrowing and income from investments. The negative values indicate that the company incurred net interest expenses both in 2023 and 2022.

Dividend Income:

In 2023, there was no dividend income specified.

In 2022, there was no dividend income either.

Explanation: This item shows any income received from dividends. In both years, there was no dividend income specified.

Finance Costs:

In 2023, there were no finance costs mentioned.

In 2022, finance costs were 2.

Explanation: Finance costs represent the expenses associated with borrowing. In 2022, the company incurred finance costs of 2, which were not present in 2023.

3. Cash Flows before Working Capital Changes:

In 2023, the cash flows before considering working capital changes were 1,742.

In 2022, the cash flows before working capital changes were higher at 2,392.

Explanation: This item represents the company 's cash flows before accounting for changes in working capital. In 2023, cash flows from core operations were 1,742, which decreased from 2,392 in 2022.

4. Adjustments for Working Capital:

Trade Receivables:

In 2023, trade receivables increased by 9,332, indicating a significant increase in accounts receivable.

In 2022, trade receivables increased by 2,873.

Explanation: Trade receivables represent amounts owed to the company by customers. The significant increase in trade receivables in 2023 suggests that more sales were made on credit, which led to an increase in accounts receivable.

Other Current Assets:

In 2023, there was a decrease in other current assets of -301.

In 2022, there was a decrease of -30 in other current assets.

Explanation: Other current assets represent various short-term assets. In 2023, there was a decrease in these assets, indicating a reduction in other current assets.

Inventories:

In 2023, no specific value for inventories is mentioned.

In 2022, inventories decreased by 878.

Explanation: Inventories represent the company 's stock of goods. In 2022, there was a significant decrease in inventory value by 878.

Other Current Liabilities:

In 2023, there was an increase in other current liabilities of 735.

In 2022, other current liabilities decreased by -1,350

Explanation: Other current liabilities represent various short-term obligations. In 2023, these liabilities increased, whereas they decreased significantly in 2022.

Trade Payables:

In 2023, trade payables decreased by -259.

In 2022, trade payables decreased by a larger amount, -6,186.

Explanation: Trade payables represent amounts owed by the company to suppliers. In both years, there was a decrease in trade payables.

5. Cash Flows from Operating Activities:

In 2023, the company generated a significant cash inflow of 11,249 from its operating activities, despite the working capital changes.

In 2022, there was a cash outflow of -1,422 from operating activities.

Explanation: This item represents the final cash flows from operating activities, taking into account all adjustments and working capital changes. In 2023, the company generated a substantial positive cash flow from operations, whereas in 2022, there was a negative cash flow, indicating cash was used in operations.

6. Direct Taxes Paid (Net):

In 2023, net direct taxes paid amounted to -534, indicating a tax expense.

In 2022, net direct taxes paid were -193.

Explanation: This item reflects the net amount of direct taxes paid, which includes both income taxes paid and refunds received. In both years, there was a net tax expense.

Cash Flow used in Investing Activities:

7. Purchase of Fixed Assets:

In 2023, the company invested -233 in fixed assets, indicating capital expenditures.

In 2022, no such investment is specified.

Explanation: This item represents the company 's capital expenditures, including the purchase of fixed assets. In 2023, there was an investment in fixed assets, whereas no such investment was specified in 2022.

8. Proceeds from Issue of Equity Shares:

In 2023, the company raised 592 from issuing equity shares.

In 2022, the company raised 1 from the issuance of equity shares.

Explanation: This item represents the funds raised from issuing equity shares. In both years, the company raised funds through equity share issuances.

9. Interest Received:

In 2023, the company received interest income of 29.

In 2022, interest income received was 52.

Explanation: This item represents the interest income received by the company. In both years, the company received interest income.

Cash Flow from Financing Activities:

10. Loans:

In 2023, the company received loans of -10,000, indicating a significant inflow of funds through borrowing.

In 2022, there was no information about loans received.

Explanation: In 2023, the company received a significant amount of loans, while no information about loans was provided for 2022

11. Interest Paid:

In 2023, there were no interest payments mentioned.

In 2022, the company incurred interest expenses of -2.

Explanation: This item represents the interest expenses paid by the company. In 2022, the company incurred interest expenses of -2, while no interest payments were mentioned in 2023.

Net Decrease in Cash and Cash Equivalents:

12. In 2023, there was a net increase of 1,103 in cash and cash equivalents, indicating improved liquidity.

13. In 2022, there was a net decrease of -1,563, suggesting a reduction in cash and cash equivalents.

Explanation: This item shows the net change in cash and cash equivalents during the year. In 2023, there was a positive net change, indicating improved liquidity. In contrast, in 2022, there was a negative net change, indicating a reduction in cash and cash equivalents.

Cash and Cash Equivalents at the Beginning and End of the Year:

14. In 2023, the company started with 13 in cash and ended with 1,116.

15. In 2022, the company began with 1,576 in cash and ended with 13.

Explanation: These figures represent the company 's cash and cash equivalents at the beginning and end of the year. In 2023, the company significantly increased its cash and cash equivalents, while in 2022, it experienced a decrease in cash holdings.

These details provide a comprehensive understanding of the company 's cash flow activities, profitability, financing, and changes in its financial position over the two specified years. In 2023, the company experienced significant cash inflows from operating activities, primarily through trade receivables and loans received. It 's essential to assess the overall financial health and liquidity of the company in the context of its specific industry and business strategy.

Below are the Financial Ratios

Particulars	2023	2022
Current Ratio (In times)	10.72	15.58
Return on equity ratio (in %)	53.21%	73.76%
Inventory turnover ratio (No of Days)	-	1.3
Trade receivables turnover ratio (in times)	30.88	28.25
Trade payables turnover ratio (in times)	339.21	304.14
Net capital turnover ratio (in times)	14.93	13.65
Net profit ratio (in %)	0.90%	1.37%
Return on capital employed (in %)	4.33%	15.77%

Here is a summary of the financial and operational metrics for Castle Traders Limited for the years 2023 and 2022:

Liquidity Ratios:

1. Current Ratio (In times):

In 2023, the current ratio was 10.72.

In 2022, the current ratio was higher at 15.58.

Explanation: The current ratio measures a company 's ability to cover its short-term liabilities with its short-term assets. In both years, the company had a high current ratio, indicating strong liquidity. A higher current ratio is generally considered favorable.

Profitability Ratios:

2. Return on Equity Ratio (in %):

In 2023, the return on equity (ROE) ratio was 53.21%.

In 2022, the ROE ratio was higher at 73.76%.

Explanation: The ROE ratio measures a company 's profitability in relation to its shareholders ' equity. In both years, the company had positive ROE, but it decreased from 2022 to 2023. A higher ROE is generally considered favorable, as it indicates better profitability for shareholders.

3. Net Profit Ratio (in %):

In 2023, the net profit ratio was 0.90%.

In 2022, the net profit ratio was higher at 1.37%.

Explanation: The net profit ratio measures the percentage of net profit in relation to total revenue. In both years, the company had positive net profit ratios, but it decreased from 2022 to 2023. A higher net profit ratio indicates better profitability.

4. Return on Capital Employed (in %):

In 2023, the return on capital employed (ROCE) was 4.33%.

In 2022, the ROCE was higher at 15.77%.

Explanation: The ROCE ratio measures a company 's profitability in relation to the capital invested in the business. In both years, the company had positive ROCE, but it decreased from 2022 to 2023. A higher ROCE is generally considered favorable, as it indicates better profitability relative to the capital invested.

Operational Ratios:

5. Inventory Turnover Ratio (No of Days):

In 2023, the inventory turnover ratio was not specified.

In 2022, the inventory turnover ratio was 1.3 days.

Explanation: The inventory turnover ratio measures how quickly a company sells its inventory. A lower number of days is favorable, indicating faster turnover.

6. Trade Receivables Turnover Ratio (in times):

In 2023, the trade receivables turnover ratio was 30.88 times.

In 2022, the turnover ratio was 28.25 times.

Explanation: The trade receivables turnover ratio measures how many times a company 's accounts receivable is collected in a year. An increase in this ratio suggests improved efficiency in collecting receivables.

7. Trade Payables Turnover Ratio (in times):

In 2023, the trade payables turnover ratio was 339.21 times.

In 2022, the turnover ratio was 304.14 times.

Explanation: The trade payables turnover ratio measures how many times a company pays its trade payables in a year. An increase in this ratio indicates more frequent payments to suppliers.

8. Net Capital Turnover Ratio (in times):

In 2023, the net capital turnover ratio was 14.93 times.

In 2022, the turnover ratio was 13.65 times.

Explanation: The net capital turnover ratio measures how efficiently a company utilizes its net capital to generate revenue. An increase in this ratio indicates improved capital efficiency.