Emrald Commercial Ltd Annual Report and Financials

EMRALD COMMERCIAL LIMITED Balance Sheet (In Hundred)

 EMRALD COMMERCIAL LIMITED Profit & Loss Statement (In Hundred)

EMRALD COMMERCIAL LIMITED Consolidated Cash Flow Statement (In Hundered)

The cash flow statement for the year 2023 reveals key financial activities, providing insights into the company 's operational, investing, and financing activities.

A. Cash Flow from Operating Activities:

   - Net profit before tax surged from ₹50,785.77 lakhs in 2022 to ₹99,370.27 lakhs in 2023, reflecting a substantial increase.

   - Adjustments for depreciation increased to ₹6,884.28 lakhs in 2023 from ₹2,451.93 lakhs in the previous year.

   - Operating profit before working capital changes rose significantly to ₹106,254.55 lakhs.

   - Movements in working capital had a notable impact, with a substantial increase in operating assets and a decrease in operating liabilities.

   - Despite operating challenges, the company managed to generate ₹13,972.32 lakhs from operations, a decrease from ₹37,845.09 lakhs in 2022.

   - Income tax paid increased to ₹13,957.5 lakhs, contributing to a net cash inflow of ₹14.82 lakhs from operating activities.

B. Cash Flow from Investing Activities:

   - The company invested ₹43,479.57 lakhs in fixed assets in 2022, but in 2023, it experienced a positive net cash inflow of ₹3,500 lakhs from investing activities, possibly indicating divestment or a more conservative investment approach.

C. Cash Flow from Financing Activities:

   - The net changes in cash and cash equivalents improved, showing a positive trend of ₹3,514.82 lakhs in 2023 compared to a negative ₹9,282.13 lakhs in 2022.

   - The opening cash and cash equivalents were ₹14,139.09 lakhs, closing at ₹17,653.91 lakhs.

   - Cash in hand increased from ₹7,505.90 lakhs to ₹12,152.75 lakhs.

   - Deposits with banks in current accounts slightly decreased from ₹6,633.19 lakhs to ₹5,501.16 lakhs.

In summary, the company experienced significant growth in net profit before tax and operating profit. Despite challenges in working capital, it generated positive cash from operating activities. The positive net cash flow from investing activities suggests strategic decisions in capital allocation. The overall positive net changes in cash and cash equivalents indicate a healthy financial position with increased cash holdings, both in hand and in bank deposits.

Bellow, are the Financial Ratios

The financial ratios for the year 2023 provide valuable insights into the company 's performance, financial structure, and efficiency in managing various aspects of its operations.

1. EBITDA Margin:

   - EBITDA stands at an impressive 121.47%, indicating a strong operating performance and healthy profitability. This suggests efficient cost management and robust revenue generation.

2. Net Worth:

   - The net worth ratio is 1.00%, suggesting that the company 's net assets contribute 1% to its total equity. This ratio is relatively low and may indicate a conservative financial structure.

3. Debt/Equity Ratio:

   - The Debt/Equity Ratio is 0, indicating that the company is entirely equity-financed and has no debt. This implies a low financial risk and a reduced reliance on external borrowings.

4. Return on Equity (ROE):

   - The Return on Equity is 0.98%, reflecting a moderate return for shareholders. A higher ROE is generally preferable, but the overall financial context, industry standards, and company goals should be considered.

5. Asset Management:

   - Total Assets increased by 3.62%, suggesting growth in the company 's asset base.

   - Fixed Assets experienced a decrease of -16.70%, which may indicate divestment or a shift in capital allocation strategy.

   - Current Assets surged by 39.21%, demonstrating increased liquidity or short-term asset holdings.

6. Liability Management:

   - Current Liabilities skyrocketed by 588.38%, signifying a substantial increase in short-term obligations. Further analysis is required to understand the nature and reason behind this surge.

7. Trade Receivables and Payables:

   - Trade Receivables increased by 162.03%, possibly indicating a higher amount of credit sales. This could impact cash flow and liquidity.

   - Trade Payables rose significantly by 3,214.96%, suggesting an increase in outstanding payments to suppliers. This can be a strategic move to optimize cash flow but needs careful management to avoid liquidity issues.

8. Current Ratio:

   - The Current Ratio is 8.47, reflecting a strong ability to cover short-term obligations with current assets. However, the significant increase in current liabilities should be closely monitored for its impact on liquidity.