Champion Commercial Company Ltd Annual Report and Financials

Champion Commercial Company Limited Balance Sheet (Rs In Lakhs)

Particulars	2023	2022
I ASSETS
(1)  Non - Current Assets
(a) Property, plant and equipment	3,784.08	2,928.39
(b) Right of use Assets	21.37	46.48
(c) Other intangible assets	0.16	0.53
(d) Financial Assets
(i) Non current investments	4,630.74	4,377.83
(ii) Other non- current financial assets	8.91	6.13
(e) Deferred tax assets (net)	46.17	-
(f)  Non Current tax assets (Net)	3.84	-
(g) Other non - current assets	100.83	348.51
Total Non- Current Assets	8,596.10	7,707.87
(2) Current Assets
(a) Inventories	2,139.37	2,773.75
(b) Financial assets
(i) Current investments	127.06	126.05
(ii) Trade receivables	4,858.24	3,179.57
(iii) Cash and cash equivalents	12.88	26.46
(iv) Bank balances other than (iii) above	62.26	38.68
(v) Loans	-	5
(vi) Other current financial assets	13.5	20.91
(c) Current tax assets (Net)	7.95	18.65
(d) Other current assets	201	263.68
Total Current Assets	7,422.27	6,452.74
TOTAL ASSETS	16,018.37	14,160.61
II EQUITY AND LIABILITIES
EQUITY
(a) Equity share capital	20	20
(b) Other equity	8,405.39	7,898.14
Total Equity	8,425.39	7,918.14
LIABILITIES
(1)  Non - Current Liabilities
(a) Financial Liabilities
(i) Borrowings	1,500.95	1,256.53
(ii) Lease Liabilities	13.41	24.74
(iii) Other non Current Financial Liabilities	10.5	-
(b) Other non current liabilities	1.78	-
(c) Provisions	51.61	46.08
(d) Deferred tax liabilities	-	3.42
Total Non- Current Liabilities	1,578.26	1,330.77
(2) Current Liabilities
(a) Financial Liabilities
(i) Borrowings	1,558.82	1,889.17
(ii) Lease Liabilities	10.08	23.5
(iii) Trade payables
Dues other than of Micro and Small Enterprises	4,379.68	2,889.11
(iv) Other financial liabilities	13.25	5.07
(b) Other current liabilities	47.93	49.66
(c) Provisions	4.96	3.99
(d) Current tax liabilities (Net)	-	51.19
Total Current Liabilities	6,014.72	4,911.69
Total Liabilities	7,592.98	6,242.47
TOTAL EQUITY AND LIABILITIES	16,018.37	14,160.61

 Champion Commercial Company Limited Profit & Loss Statement (Rs In Lakhs)

Particulars	2023	2022
Income:
Revenue from operations	23,353.95	21,047.71
Other income	75.8	118.74
Total Income	23,429.74	21,166.45
Expenses:
Purchases of stock - in - trade	20,178.37	18,003.56
Changes in inventories of stock-in-trade	319.05	-676.24
Employee benefit expenses	910.51	768.64
Finance costs	256.62	167.16
Depreciation & amortization expenses	237.93	165.28
Other expenses	820.59	493.29
Total Expenses	22,723.08	18,921.68
Profit before exceptional items and tax	706.66	2,244.77
Profit/(Loss) before tax	706.66	2,244.77
Less: Tax expenses
(1) Current tax
Current Year	239.84	600.04
Earlier Years	-2.76	-12.24
(2) Deferred tax	-41.01	-25.23
Total Tax Expenses	196.07	562.57
Profit after tax	510.6	1,682.21
Other Comprehensive Income ( Net of Tax )
(i) Items that will not be reclassified to profit or loss	0.09	529.73
(ii) Income tax relating to items that will not be reclassified to profit or loss	-3.44	-64.11
Total Other Comprehensive Income for the year	-3.35	465.62
Total Comprehensive Income for the year	507.25	2,147.83
Earning per equity share (Face Value of Rs. 10/- each)
(1) Basic	255.3	841.1
(2) Diluted	255.3	841.1

Champion Commercial Company Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Particulars	2023	2022
A) CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax & Extraordinary Items	714.65	2,248.78
Dividend Received	-54.84	-42.24
Depreciation and Amortization	237.93	165.28
Profit on sale of Fixed Assets	-	-2.21
Interest income	-2.67	-2.05
Unwinding of interest Income	-0.52	-0.44
Unwinding of rent income	-0.35	-
Interest expense	235.04	135.01
Net gain on sale of investments	0	-0.09
Loss on financial assets measured at FVTPL	-1.01	-16.02
Fixed Assets Written off	-	0.61
Unwinding of interest Expenses	0.08	0.47
Sundry balance written off/(written back)	0.33	-
Bad debts written off	-	1.37
Allowance for obsolete Inventories	3.68	0.88
Investment Written off	-	0.29
Mark to Market Gain on derivatives	4.72	-1.6
Excess provision for expected credit losses on trade receivables (Net)	3.31	1.3
Exchange Rate Fluctuation (Net)	-9.09	3.38
	416.6	243.93
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES	1,131.25	2,492.71
ADJUSTMENTS FOR WORKING CAPITAL CHANGES IN :
Other non - current assets	-1.39	0.06
Inventories	630.7	-1,009.91
Trade Receivable	-1,681.51	-532.67
Other Bank Balances	-23.58	-0.92
Other Non Current financial assets	-2.26	1.41
Other financial assets	2.56	11.77
Other current assets	62.7	-161.33
Trade payables	1,499.08	606.14
Other Non Current financial liabilities	12.3	-
Other current liabilities	-1.73	-1.67
Provisions	8.84	10.05
Provisions	505.71	-1,077.07
Cash Generated from Operations	1,636.96	1,415.64
Direct Taxes paid	301.43	578.55
NET CASH FROM OPERATING ACTIVITIES	1,335.53	837.08
B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets	-798.14	-181.95
Sale of Fixed Assets	-	4.6
Inter Corporate Deposit	5	-5
Purchase of Investments	-786.67	-2,502.01
Sale of Investments	510.58	1,091.03
Interest Received	2.8	1.72
Dividend Received	54.84	42.24
NET CASH USED IN INVESTING ACTIVITIES	-1,011.58	-1,549.36
C)    CASH FLOW FROM FINANCING ACTIVITIES
Interest Paid	-226.86	-136.56
Proceeds /(Repayment) of Non Current (Net)	244.42	-70.97
Payment of Lease Liabilities	-24.74	-24.2
Proceeds /(Repayment) of Current (Net)	-330.36	950.55
NET CASH USED IN FINANCING ACTIVITIES	-337.53	718.82
NET CHANGES IN CASH & CASH EQUIVALENTS	-13.58	6.54
OPENING BALANCE OF CASH & CASH EQUIVALENTS	26.46	19.92
CLOSING BALANCE OF CASH & CASH EQUIVALENTS	12.88	26.46
	-13.58	6.54
Notes
1 CASH & CASH EQUIVALENTS INCLUDES
Cash in Hand	12.53	9.69
BALANCE WITH SCHEDULED BANKS
In current account	0.35	16.77
	12.88	26.46

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

A) CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax & Extraordinary Items: In 2023, the company generated a net profit of 714.65, which was significantly lower than the previous year 's 2,248.78. This figure represents the profit before accounting for taxes and extraordinary items.

Dividend Received: The company received dividends of -54.84 in 2023 and -42.24 in 2022, indicating that it received less in dividends in 2023 compared to the previous year.

Depreciation and Amortization: The depreciation and amortization expenses were 237.93 in 2023, up from 165.28 in 2022, suggesting an increase in non-cash expenses.

Profit on sale of Fixed Assets: There was no profit recorded from the sale of fixed assets in 2023, whereas in 2022, there was a small loss of -2.21.

Interest income: The company received interest income of -2.67 in 2023 and -2.05 in 2022.

Unwinding of interest Income: The unwinding of interest income was -0.52 in 2023 and -0.44 in 2022, reflecting the adjustment of interest income over time.

Unwinding of rent income: In 2023, there was an unwinding of rent income of -0.35, while there was no such income recorded in 2022.

Interest expense: The company incurred interest expenses of 235.04 in 2023, higher than the 135.01 recorded in 2022.

Net gain on sale of investments: There was no net gain on the sale of investments in 2023, while there was a small loss of -0.09 in 2022.

Loss on financial assets measured at FVTPL: In 2023, there was a loss of -1.01, which was significantly lower than the loss of -16.02 in 2022.

Fixed Assets Written off: There were no fixed assets written off in 2023, but in 2022, there was a small amount of 0.61 written off.

Unwinding of interest Expenses: The unwinding of interest expenses was 0.08 in 2023 and 0.47 in 2022, indicating the adjustment of interest expenses over time.

Sundry balance written off/(written back): In 2023, there was a balance written off of 0.33, while no such transaction was recorded in 2022.

Bad debts written off: The company did not write off any bad debts in 2023, while 1.37 was written off in 2022.

Allowance for obsolete Inventories: In 2023, the company increased the allowance for obsolete inventories by 3.68, while it was 0.88 in 2022.

Investment Written off: No investments were written off in 2023, but 0.29 was written off in 2022.

Mark to Market Gain on derivatives: The company recorded a gain of 4.72 in 2023, compared to a loss of -1.6 in 2022.

Excess provision for expected credit losses on trade receivables (Net): In 2023, there was an excess provision of 3.31, higher than the 1.3 recorded in 2022.

Exchange Rate Fluctuation (Net): The company experienced a net loss of -9.09 due to exchange rate fluctuations in 2023, while it gained 3.38 in 2022.

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES:

The operating profit before working capital changes was 1,131.25 in 2023, a significant decrease from 2,492.71 in 2022.

ADJUSTMENTS FOR WORKING CAPITAL CHANGES IN:

Other non-current assets: The company reduced its other non-current assets by -1.39 in 2023, compared to an increase of 0.06 in 2022.

Inventories: In 2023, the company increased its inventory by 630.7, whereas in 2022, it reduced its inventory by -1,009.91.

Trade Receivables: The company reduced its trade receivables by -1,681.51 in 2023, which was more than the reduction of -532.67 in 2022.

Other Bank Balances: The company reduced other bank balances by -23.58 in 2023, compared to a reduction of -0.92 in 2022.

Other Non-Current financial assets: The company reduced other non-current financial assets by -2.26 in 2023, while it increased by 1.41 in 2022.

Other financial assets: In 2023, the company increased other financial assets by 2.56, while in 2022, it increased by 11.77.

Other current assets: The company increased other current assets by 62.7 in 2023, while it reduced them by -161.33 in 2022.

Trade payables: In 2023, the company increased its trade payables by 1,499.08, while in 2022, they increased by 606.14.

Other Non-Current financial liabilities: In 2023, the company increased other non-current financial liabilities by 12.3, while there were no such liabilities in 2022.

Other current liabilities: The company reduced other current liabilities by -1.73 in 2023, compared to a reduction of -1.67 in 2022.

Provisions: The company increased provisions by 8.84 in 2023, while they increased by 10.05 in 2022.

Provisions: In 2023, provisions increased by 505.71, while they decreased by -1,077.07 in 2022.

Cash Generated from Operations:

The cash generated from operations was 1,636.96 in 2023, higher than the 1,415.64 generated in 2022.

Direct Taxes paid:

The company paid direct taxes of 301.43 in 2023 and 578.55 in 2022.

NET CASH FROM OPERATING ACTIVITIES:

The net cash from operating activities was 1,335.53 in 2023, a substantial increase from 837.08 in 2022.

Bellow are the Financial Ratios

Particulars	2023	2022
Current Ratio	1.23	1.31
Debt Equity Ratio	0.37	0.4
Debt Service Coverage Ratio	3.6	9.57
Return on Equity Ratio	0.06	0.25
Inventory Turn Over Ratio	8.34	8.24
Trade Receivables Turn Over Ratio	5.81	7.22
Trade Payables Turn Over Ratio	5.77	7.15
Net Capital Turn Over Ratio	15.83	14.75
Net Profit Ratio	0.02	0.08
Return on Capital Employed	0.08	0.22
Return on Investment	0.02	0.17

Here is a summary of the financial and operational metrics for Champion Commercial Company Limited for the years 2023 and 2022:

1. Current Ratio:

The current ratio in 2023 is 1.23, which indicates that for every unit of current liabilities, the company has 1.23 units of current assets available to cover those obligations. In 2022, the ratio was slightly higher at 1.31, suggesting a small decrease in short-term liquidity in 2023. While a current ratio above 1 is generally considered healthy, a decrease might warrant monitoring to ensure the company can meet its short-term obligations.

2. Debt Equity Ratio:

In 2023, the company 's debt equity ratio is 0.37, indicating that it has reduced its reliance on debt financing relative to equity compared to the previous year 's ratio of 0.4. A lower debt equity ratio generally suggests improved financial leverage and reduced financial risk.

3. Debt Service Coverage Ratio:

The debt service coverage ratio in 2023 is 3.6, significantly lower than the 9.57 recorded in 2022. This reduction may indicate that the company 's ability to service its debt has decreased in 2023. It 's important to assess whether this is a temporary or long-term situation.

4. Return on Equity Ratio:

The return on equity (ROE) ratio in 2023 is 0.06, while it was 0.25 in 2022. A lower ROE suggests a decrease in profitability relative to shareholders ' equity, indicating that the company might not be generating as much profit for its equity investors.

5. Net Profit Ratio:

The net profit ratio in 2023 is 0.02, down from 0.08 in 2022. This indicates that the company 's net profit as a percentage of total revenue has decreased, reflecting reduced profitability.

6. Return on Capital Employed:

The return on capital employed (ROCE) ratio in 2023 is 0.08, compared to 0.22 in 2022. This drop in ROCE implies lower profitability concerning the capital invested in the business, which could be a cause for concern.

7. Return on Investment:

The return on investment (ROI) ratio in 2023 is 0.02, down from 0.17 in 2022. This means that the company 's returns on its total investment have decreased, indicating a potentially less efficient use of invested capital.

Operational Efficiency Ratios:

8. Inventory Turnover Ratio:

The inventory turnover ratio in 2023 is 8.34, which is slightly higher than the 8.24 recorded in 2022. This suggests that the company is selling and replacing inventory at a slightly faster rate in 2023.

9. Trade Receivables Turnover Ratio:

In 2023, the trade receivables turnover ratio is 5.81, compared to 7.22 in 2022. A lower ratio indicates a longer time it takes to collect receivables, which may be an area of concern in terms of cash flow management.

10. Trade Payables Turnover Ratio:

The trade payables turnover ratio in 2023 is 5.77, down from 7.15 in 2022. A lower ratio suggests that the company is taking slightly more time to pay its suppliers, which could impact relationships with creditors.

11. Net Capital Turnover Ratio:

The net capital turnover ratio in 2023 is 15.83, showing an increase from 14.75 in 2022. This suggests that the company is utilizing its net capital more efficiently to generate revenue, which is a positive sign for operational efficiency.

These detailed analyses of financial and operational metrics provide a comprehensive view of Champion Commercial Company Limited 's performance. The changes between 2023 and 2022 highlight areas of improvement or concern, offering insights for further assessment and decision-making regarding the company 's financial and operational strategies.