EL Forge Ltd Annual Report and Financials

EL Forge Limited Balance Sheet (Rs In Lakhs)

Particulars	2023	2022
ASSETS
Non-current assets
Property, Plant and Equipment	2347.42	2656.23
Financial Assets
(i) Investments	0.01	0.01
(iv) Others	85.4	59.9
Other Non-Current Assets	1.26	8.71
Total Non-Current Assets	2434.09	2724.85
Current assets
Inventories	417.75	429.86
Financial Assets
(i) Investments
(ii) Trade Receivables	378.32	199.23
(iii) Cash and cash equivalents	228.8	138.47
(iv) Bank Balances, other than above (iii)	3.74	3.74
Other Current Assets	183.6	147.47
Current Tax (Net)	65.44	47.13
Total Current Assets	1277.65	965.9
Total Assets	3711.74	3690.76
EQUITY AND LIABILITIES
Equity
Equity Share Capital	2032.43	2032.43
Other Equity	-8112.88	-7882.21
Total Equity	-6080.44	-5849.78
Liabilities
Non-current liabilities Financial Liabilities
(i) Borrowings	1211.12	1211.12
(ii) Other Financial Liabilities	7525.01	7525.01
Total Non-current liabilities	8736.13	8736.13
Current liabilities
Financial Liabilities
(i) Trade Payables	388.18	243.5
(a) Due to Micro and Small Enterprises
(b)   Due to Other than MSE
(iii) Other Financial Liabilities	158.54	151.73
Other Current Liabilities	432.15	406.82
Provisions	77.18	2.35
Current Tax Liabilities (Net)	0	0
Total Current liabilities	1056.05	804.41
Total Equity and Liabilities	3711.74	3690.76

 EL Forge Limited Profit & Loss Statement (Rs In Lakhs)

Particulars	2023	2022
Income
Revenue from operations	5846.31	4033.62
Land Income	0	0
Other income	4.99	16.75
Total Income	5851.3	4050.38
Expenses
Cost of Materials and Services Consumed	3216.78	2218.94
Changes in inventories of FG, SIT and WIP	-56.91	-30.72
Cost of the Land Sold	0	0
Employee Benefits Expenses	965.45	750.51
Finance Costs	39.77	43.28
Depreciation and Amortization Expense	488.71	617.3
Other Expenses	1335.01	991.08
Total Expenses	5988.81	4590.38
Finished goods, stock-in-trade and work-in-progress
Profit/ (Loss) before, exceptional items and tax	-137.52	-540.01
Exceptional items	93.15	-143.16
Profit/ (Loss) before extraordinary items and tax	-230.66	-396.85
Profit/ (Loss) before tax	-230.66	-396.85
Profit for the year from continuing operations	-230.66	-396.85
Net profit/(Loss) for the period	-230.66	-396.85
Earnings per equity share (For Continuing Operations)
Basic (in Rs.)	-1.13	-1.95
Diluted (in Rs.)	-1.13	-1.95

 EL Forge Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Particulars	2023	2022
Cash Flow from Operations
Net Profit / Loss (-) before Tax	-230.66	-396.85
Adjustment for [Add/ Less (-)]
Depreciation	488.71	617.3
Profit (-)/ Loss on Sales of Property, Plant & Equipments	-1.47	6.65
Interest Expenses	39.77	43.28
Profit/ Loss - Sales of Investments	0	-171.8
Operating Profit before working Capital Changes	296.35	98.58
Adjustment for Net Changes in
Current Liabilities & Provisions	251.64	40.55
Sundry Debtors	-179.09	-62.83
Inventories	12.11	-70.66
Loans & Advances	-46.98	-4.07
Cash Generation from Operation	334.04	1.58
Net Cash from Operating Activities	334.04	1.58
Cash Flow from Investing Activities
Payment for Purchase of Property, Plant & Equipments	-184.21	-88.84
Proceeds for sales Property, Plant & Equipments	5.78	7.58
Proceeds for Sale of Investments		171.8
Deposits (Given)/ Receipts	-25.5	10.41
Payment for Purchase of Investments	0
Dividend Received	0
Net Cash Flow from Investing Activities	-203.95	100.95
Cash Flow from Financing Activities
Interest Paid	-39.77	-43.28
Net Cash Flow from Investing Activities	-39.77	-43.28
Net Increase/ Decrease in Cash & Cash Equivalent	90.33	59.25
Add: Cash & Cash Equivalent- Opening Balance	142.21	82.97
Cash & Cash Equivalent- Closing Balance	232.54	142.21
Cash & Cash Equivalent- as per Financial Statements (Closing Balance)	232.54	142.21
Note: Closing Balance Cash & Cash Equivalent-represents
Cash in Hand	13.83	10.47
Cash at Bank - Current A/c.	29.6	7.63
Deposit A/c.	185.38	120.38
Earmark A/c.	3.74	3.74
Total	232.54	142.21

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

Cash Flow from Operations:

Net Profit / Loss before Tax:

In 2023, the company reported a net loss of -230.66 million rupees before tax, while in 2022, the loss was even greater at -396.85 million rupees.

Adjustments for [Add/ Less (-)]:

Depreciation:

The company made depreciation adjustments of 488.71 million rupees in 2023 and 617.3 million rupees in 2022, reflecting the allocation of expenses related to the wear and tear of assets over time.

Profit/Loss on Sales of Property, Plant & Equipment:

In 2023, there was a loss of -1.47 million rupees, while in 2022, there was a profit of 6.65 million rupees from the sale of property, plant, and equipment.

Interest Expenses:

The company paid 39.77 million rupees in interest expenses in 2023, which decreased from 43.28 million rupees in 2022, indicating a reduction in borrowing costs.

Profit/Loss - Sales of Investments:

In 2023, there were no profits or losses from the sale of investments, whereas in 2022, there was a significant loss of -171.8 million rupees.

Operating Profit before working Capital Changes:

In 2023, the company had an operating profit of 296.35 million rupees, a substantial improvement from 98.58 million rupees in 2022.

Adjustment for Net Changes in Current Liabilities & Provisions:

The company had a net increase in current liabilities and provisions of 251.64 million rupees in 2023, compared to 40.55 million rupees in 2022, indicating a greater need for short-term funding.

Sundry Debtors:

In 2023, the company experienced a decrease of -179.09 million rupees in outstanding debt from customers, while in 2022, the decrease was -62.83 million rupees.

Inventories:

The company 's inventory increased by 12.11 million rupees in 2023, while it decreased by -70.66 million rupees in 2022.

Loans & Advances:

The company reduced loans and advances by -46.98 million rupees in 2023, as opposed to -4.07 million rupees in 2022, indicating a more substantial reduction in lending.

Cash Generation from Operation:

In 2023, the company generated 334.04 million rupees from its operations, a significant increase compared to a mere 1.58 million rupees in 2022.

Net Cash from Operating Activities:

The net cash generated from operating activities was 334.04 million rupees in 2023, as opposed to 1.58 million rupees in 2022.

Cash Flow from Investing Activities:

Payment for Purchase of Property, Plant & Equipments:

The company spent -184.21 million rupees in 2023 to purchase property, plant, and equipment, which was an increase from the -88.84 million rupees spent in 2022.

Proceeds for sales Property, Plant & Equipments:

In 2023, the company received 5.78 million rupees from selling these assets, compared to 7.58 million rupees in 2022.

Proceeds for Sale of Investments:

The company received 171.8 million rupees from the sale of investments in 2023, while there were no investment sales in 2022.

Deposits (Given)/ Receipts:

In 2023, the company had outflows of -25.5 million rupees related to deposits, while there were inflows of 10.41 million rupees in 2022.

Payment for Purchase of Investments:

There were no payments for the purchase of investments in either 2023 or 2022.

Dividend Received:

The company did not receive any dividends in either 2023 or 2022.

Net Cash Flow from Investing Activities:

In 2023, there was a net outflow of -203.95 million rupees from investing activities, in contrast to a net inflow of 100.95 million rupees in 2022.

Cash Flow from Financing Activities:

Interest Paid:

The company paid -39.77 million rupees in interest expenses in 2023, which decreased from -43.28 million rupees in 2022.

Net Cash Flow from Financing Activities:

The net cash flow from financing activities was -39.77 million rupees in 2023, as opposed to -43.28 million rupees in 2022.

Net Increase/Decrease in Cash & Cash Equivalent:

In 2023, there was a net increase in cash and cash equivalents of 90.33 million rupees, while in 2022, the increase was 59.25 million rupees.

Cash & Cash Equivalent:

Cash & Cash Equivalent - Opening Balance:

In 2023, the opening balance of cash and cash equivalents was 142.21 million rupees, an increase from 82.97 million rupees in 2022.

Cash & Cash Equivalent - Closing Balance:

The closing balance of cash and cash equivalents was 232.54 million rupees in 2023, compared to 142.21 million rupees in 2022.

Note: Closing Balance Cash & Cash Equivalent represents:

Cash in Hand:

In 2023, the company had 13.83 million rupees in hand, compared to 10.47 million rupees in 2022.

Cash at Bank - Current A/c  :

The company had 29.6 million rupees in a current bank account in 2023, an increase from 7.63 million rupees in 2022.

Deposit A/c.:

In 2023, the deposit account held 185.38 million rupees, while it was 120.38 million rupees in 2022.

Earmark A/c.:

The earmark account remained the same at 3.74 million rupees in both 2023 and 2022.

Total: The total cash and cash equivalents in 2023 were 232.54 million rupees, while in 2022, they were 142.21 million rupees.

This detailed breakdown of the Cash Flow Statement provides a comprehensive understanding of the company 's financial activities, including operating, investing, and financing, and how they impacted its cash position in the respective years.

Below are the Financial Ratios

Particulars	2023	2022
Current ratio	1.21	1.2
Debt-equity ratio	-1.61	-1.63
Debt service coverage ratio	9.83	2.79
Return on equity ratio	3.87	7.02
Inventory turnover ratio	28.53	25.2
Trade receivables turnover ratio	20.25	24.04
Trade payables turnover ratio	10.11	8.11
Net capital turnover ratio	30.52	53.89
Net profit/ Loss (-) ratio	-3.95	-9.84
Return on capital employed	-6.21	-10.75
Return on investment	330.64	235.68

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

Liquidity Ratios:

Current Ratio:

2023: 1.21

2022: 1.2

The current ratio measures the company 's ability to cover its short-term obligations with its current assets. In both years, EL Forge Limited had a current ratio above 1, indicating that it had sufficient current assets to cover its short-term liabilities.

Debt-Equity Ratio:

2023: -1.61

2022: -1.63

The debt-equity ratio indicates the proportion of debt to equity in the company 's capital structure. A negative value suggests that the company has more equity than debt, which can be a positive sign for investors and creditors.

Profitability Ratios:

Debt Service Coverage Ratio:

2023: 9.83

2022: 2.79

This ratio measures the company 's ability to meet its debt obligations. An increase in this ratio from 2022 to 2023 indicates an improved ability to service debt.

Return on Equity Ratio:

2023: 3.87%

2022: 7.02%

The return on equity ratio reflects the company 's profitability in relation to shareholders ' equity. The decrease from 2022 to 2023 suggests a lower return on equity in 2023.

Return on Capital Employed:

2023: -6.21%

2022: -10.75%

Return on capital employed measures the return generated from the capital invested in the business. Although the ratio improved from 2022 to 2023, both years show negative returns, indicating financial challenges.

Return on Investment:

2023: 330.64%

2022: 235.68%

The return on investment ratio indicates the efficiency of capital utilization. The significant increase from 2022 to 2023 suggests higher profitability for the capital invested.

Operational Ratios:

Inventory Turnover Ratio:

2023: 28.53

2022: 25.2

The inventory turnover ratio measures how efficiently the company manages its inventory. The increase from 2022 to 2023 indicates that inventory turnover improved.

Trade Receivables Turnover Ratio:

2023: 20.25

2022: 24.04

This ratio measures how quickly the company collects receivables from its customers. The decrease suggests a slightly longer collection period in 2023.

Trade Payables Turnover Ratio:

2023: 10.11

2022: 8.11

The trade payables turnover ratio indicates how quickly the company pays its suppliers. The increase from 2022 to 2023 suggests that the company took longer to pay its suppliers in 2023.

Net Capital Turnover Ratio:

2023: 30.52

2022: 53.89

This ratio measures the efficiency of capital usage in generating revenue. The decrease from 2022 to 2023 indicates that the company generated less revenue for each unit of capital.

Net Profit/Loss (-) Ratio:

2023: -3.95%

2022: -9.84%

This ratio indicates the company 's net profit or loss as a percentage of its total revenue. The decrease in the ratio from 2022 to 2023 suggests a smaller loss as a percentage of revenue in 2023.