City Gold Credit Capital Ltd Annual Report and Financials

City Gold Credit Capital Limited Balance Sheet (Rs In Lakhs)

Particulars	2023	2022
Non-Current Assets
a) Property, Plant & Equipment	0.24	0.29
b) Financial Assets
i) Investments	4.33	60.57
Current Assets
a) Inventories	0	41.01
b) Financial Assets
i) Cash & Cash Equivalents	2.13	32.07
ii) Short term loans	321.35	195.53
c) Other Current Assets	0.33	1.66
Total Assets	328.37	331.14
EQUITY & LIABILITIES
Equity
a) Equity Share Capital	320.05	320.05
b) Other Equity	5.95	8.23
Liabilities
Non-Current Liabilities
a) Financial Liabilities	0	0
b) Deferred Tax Liabilities (Net)	0.18	0.57
Current Liabilities
a) Financial Liabilities	0	0
b) Other Current Liabilities	2.19	2.29
Total Equity & Liabilities	328.37	331.14

 City Gold Credit Capital Limited Profit & Loss Statement (Rs In Lakhs)

Particulars	2023	2022
Income
Revenue from Operations	69.28	260.96
Other Income	3.48	2.56
Total Income	72.76	263.53
Expenses
Purchase of Stock In trade	16.57	260.31
Changes in inventories of Finished Goods, Stock in Trade and work in progress	41.01	-22.9
Employee Benefit Expenses	10.82	16.71
Finance Cost	0.07	0.01
Depreciation and Amortization Expenses	0.05	0.08
Other Expenses	6.91	5.64
Total Expenses (4)	75.43	259.85
Profit/(Loss) before Exceptional Items & tax	-2.67	3.67
Profit/(Loss) before tax	-2.67	3.67
Tax Expenses
Current Tax	0	0.51
Deferred Tax	-0.39	0.34
Tax related to Last Year	0.01	0
Profit/(Loss) for the period from Continuing Operations	-2.28	2.82
Profit/(Loss) for the period	-2.28	2.82
Total Comprehensive Income for the period	-2.28	2.82

 City Gold Credit Capital Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Particulars	2023	2022
A. Cash flow from operating activities
Net Profit / (Loss) before extraordinary items and tax	-2.66	3.67
Adjustments for:
Depreciation and amortization	0.05	0.08
Finance cost	0.07	0.01
Operating profit / (loss) before working capital changes	-2.54	3.76
Adjustments for (increase) / decrease in operating assets:
Short-term loans and advances	-125.81	57.77
Inventories	41.01	-22.9
Other current assets	1.33	5.13
Adjustments for increase / (decrease) in operating liabilities:
Other current liabilities	-0.1	-4.28
	-83.57	35.72
Cash generated from operations	-86.11	39.49
Net income tax (paid) / refunds	-0.01	-0.51
Net cash flow from / (used in) operating activities	-86.12	38.98
B. Cash flow from investing activities
Change in long term investments	56.24
Net cash flow from / (used in) investing activities	56.24	-21.58
C. Cash flow from financing activities
Finance cost	0.07
Net cash flow from / (used in) financing activities	-0.07	-0.01
Net increase / (decrease) in Cash and cash equivalents	-29.95	17.39
Cash and cash equivalents at the beginning of the year	32.08	14.69
Cash and cash equivalents at the end of the year	2.13	32.08
Reconciliation of Cash and cash equivalents with the
Cash and cash equivalents as per Balance Sheet	2.13	32.07
Net Cash and cash equivalents	2.13	32.07
Cash and cash equivalents at the end of the year	2.13	32.07
Comprises:
(a) Cash on hand	0.49	0.02
(i) In current accounts	1.63	32.05
	2.13	32.07

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

A) CASH FLOW FROM OPERATING ACTIVITIES:

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

2023: -2.66

2022: 3.67

In 2023, the company incurred a net loss of -2.66, which is a substantial decline from the profit of 3.67 recorded in 2022. This suggests that the company was less profitable or possibly incurred losses during 2023.

Adjustments for:

Depreciation and amortization:

2023: 0.05

2022: 0.08

Depreciation and amortization expenses represent the allocation of the cost of assets over time. These figures were minimal in both years, indicating relatively stable non-cash expenses.

Finance cost:

2023: 0.07

2022: 0.01

Finance costs increased slightly in 2023 compared to 2022, which may indicate higher interest expenses or financial charges during the year.

Operating profit / (loss) before working capital changes:

2023: -2.54

2022: 3.76

The operating profit before considering changes in working capital showed a significant decrease in 2023 compared to 2022. This suggests that the company 's core operational performance was weaker in 2023.

Adjustments for (increase) / decrease in operating assets:

Short-term loans and advances:

2023: -125.81

2022: 57.77

The company had a significant decrease in short-term loans and advances in 2023, indicating a reduction in loans or advances provided to others.

Inventories:

2023: 41.01

2022: -22.9

There was an increase in inventories in 2023, which might indicate higher stock levels or purchases, whereas in 2022, there was a decrease in inventories.

Other current assets:

2023: 1.33

2022: 5.13

Other current assets increased by a smaller amount in 2023 compared to 2022, suggesting a reduced allocation of assets in other current categories.

Adjustments for increase / (decrease) in operating liabilities:

Other current liabilities:

2023: -0.10

2022: -4.28

The company had a smaller decrease in other current liabilities in 2023, indicating fewer obligations compared to a larger decrease in 2022.

Cash generated from operations:

2023: -86.11

2022: 39.49

The cash generated from operations in 2023 is -86.11, indicating that the company used more cash for its operating activities than it generated. This is a substantial decrease from the positive cash generation of 39.49 in 2022.

Net income tax (paid) / refunds:

2023: -0.01

2022: -0.51

The company paid a small amount of net income tax in 2023, compared to a larger payment in 2022.

Net cash flow from / (used in) operating activities:

2023: -86.12

2022: 38.98

The net cash flow from operating activities in 2023 is -86.12, indicating a significant outflow of cash due to operating activities. This is a notable decrease from the positive net cash flow of 38.98 in 2022, signifying that the company 's operations consumed more cash in 2023.

B) CASH FLOW FROM INVESTING ACTIVITIES:

Change in long-term investments:

2023: 56.24

2022: N/A

In 2023, there was an inflow of cash related to changes in long-term investments, which was not present in 2022.

Net cash flow from / (used in) investing activities:

2023: 56.24

2022: -21.58

The net cash flow from investing activities in 2023 is 56.24, indicating a significant inflow of cash due to investment activities. In contrast, there was an outflow of cash amounting to -21.58 in 2022, suggesting that the company made more investments in the previous year.

C) CASH FLOW FROM FINANCING ACTIVITIES:

Finance cost:

2023: 0.07

2022: N/A

In 2023, there was a cash outflow related to finance costs, which was not present in 2022.

Net cash flow from / (used in) financing activities:

2023: -0.07

2022: -0.01

The net cash flow from financing activities in 2023 is -0.07, indicating a small cash outflow related to financing activities. In 2022, there was a similar, but slightly smaller, outflow of -0.01.

Net increase / (decrease) in Cash and cash equivalents:

2023: -29.95

2022: 17.39

The net increase or decrease in cash and cash equivalents in 2023 is -29.95, indicating a significant decrease in cash reserves. In contrast, there was an increase of 17.39 in cash reserves in 2022.

Cash and cash equivalents at the beginning of the year:

2023: 32.08

2022: 14.69

The company had a starting cash balance of 32.08 in 2023, compared to 14.69 in 2022.

Cash and cash equivalents at the end of the year:

2023: 2.13

2022: 32.08

The company 's cash and cash equivalents at the end of 2023 are 2.13, which is a significant decrease from 32.08

Bellow are the Financial Ratios

Particulars	2023	2022
Inventory Turnover Ratio	2.56	5.96
Debt Equity Ratio	0.01	0.01
Current Ratio	147.78	118
Interest Coverage Ratio	38.68	307.54
Operating Profit Margin	-3.76	1.41
Net Profit Margin	-3.14	1.07
Return on Net Worth	-0.7	0.86

Here is a summary of the financial and operational metrics for City Gold Credit Capital Limited for the years 2023 and 2022:

Operational Efficiency Ratios:

1. Inventory Turnover Ratio:

The inventory turnover ratio measures how quickly a company sells and replaces its inventory. A lower ratio in 2023 (2.56) compared to 2022 (5.96) suggests that the company took longer to sell its inventory in 2023, potentially indicating an issue with managing and selling its stock efficiently.

Leverage Ratios:

2. Debt Equity Ratio:

The debt equity ratio reflects the proportion of debt used to finance the company 's assets relative to equity. A very low ratio (0.01) in both years indicates a minimal reliance on debt financing.

Liquidity Ratios:

3. Current Ratio:

The current ratio measures the company 's ability to cover short-term liabilities with its current assets. A very high current ratio in 2023 (147.78) compared to 2022 (118) suggests a significant increase in short-term liquidity, indicating a strong ability to meet its short-term obligations.

Profitability Ratios:

4. Interest Coverage Ratio:

The interest coverage ratio assesses a company 's ability to meet its interest payment obligations. A lower ratio in 2023 (38.68) compared to 2022 (307.54) indicates a reduced ability to cover interest expenses, which may be a concern.

5. Operating Profit Margin:

The operating profit margin measures the company 's profitability from its core operations. In 2023, the company had a negative operating profit margin (-3.76), indicating an operating loss, whereas in 2022, it had a positive margin of 1.41.

6. Net Profit Margin:

The net profit margin reflects the company 's overall profitability, including all expenses and income. In 2023, the company had a negative net profit margin (-3.14), indicating a net loss, while in 2022, it had a positive margin of 1.07.

7. Return on Net Worth:

The return on net worth measures the company 's profitability in relation to shareholders ' equity. In 2023, the company had a negative return (-0.7), indicating a loss relative to net worth, whereas in 2022, it had a positive return of 0.86.