Gujarat Wedge Wire Annual Reports, Balance Sheet and Financials

Gujarat Wedge Wire Screens Limited Balance Sheet (Rs In Thousands)

Gujarat Wedge Wire Screens Limited Profit & Loss Statement (Rs In Thousands)

Gujarat Wedge Wire Screens Limited Consolidated Cash Flow Statement (Rs In Thousands)

Let 's break down the Cash Flow Statement for the years 2023 and 2022, activity-wise: 

A. Cash Flow from Operating Activities:

1. Net Cash from Operating Activities (2022 vs. 2021): In 2022, the net cash from operating activities amounted to Rs 1,526.32 thousand, a significant decrease from the previous year 's figure of Rs 3,130.26 thousand.

2. Operating Profit and Adjustments: The operating profit before working capital changes in 2022 was Rs 2,910.97 thousand, showing an improvement from the previous year 's figure of Rs 1,984.47 thousand. This improvement is attributed to factors such as increased revenue or cost management. Various adjustments were made to this figure, including depreciation, deferred tax, interest, and profit on the sale of assets.

3. Changes in Working Capital: There were notable changes in working capital components. While there was a decrease in inventories and an increase in trade payables, there were fluctuations in accounts receivables and various other current and non-current assets and liabilities.

4. Taxes Paid: A portion of the operating cash flow was allocated for taxes paid, amounting to Rs 53.89 thousand in 2022. This figure was absent in the previous year 's cash flow statement.

B. Cash Flow from Investing Activities:

1. Net Cash Used in Investing Activities (2022 vs. 2021): In 2022, the net cash used in investing activities was Rs -146.33 thousand, showing a significant improvement from the previous year 's figure of Rs -2,975.61 thousand.

2. Investment in Fixed Assets: The company made investments in fixed assets, primarily through the purchase of fixed assets, amounting to Rs -292.74 thousand in 2022. Additionally, there was a sale of fixed assets, generating a cash inflow of Rs 145 thousand.

C. Cash Flow from Financing Activities:

1. Net Cash Used in Financing Activities (2022 vs. 2021): In 2022, the net cash used in financing activities was Rs -1,205.57 thousand, compared to Rs -177.37 thousand in 2021.

2. Short-Term Borrowings and Finance Costs: The company either obtained or repaid short-term borrowings, resulting in a net cash outflow of Rs -422.75 thousand in 2022. Additionally, finance costs, including interest expenses, amounted to Rs -782.81 thousand, contributing to the overall cash outflow from financing activities.

Overall Cash Position:

1. Net Increase/(Decrease) in Cash: In 2022, there was a net increase in cash of Rs 174.42 thousand, indicating improved cash flow management compared to the previous year 's net decrease of Rs -22.72 thousand.

2. Cash and Cash Equivalents: The company began the year 2022 with cash and cash equivalents amounting to Rs 68.2 thousand, ending the year with a balance of Rs 242.62 thousand. This indicates a positive change in liquidity position compared to the beginning of the year. Similarly, in 2021, the cash and cash equivalents at the beginning and end of the year were Rs 90.91 thousand and Rs 68.2 thousand, respectively.

Financial Ratios of Gujarat Wedge Wire Screens Limited:

Insights into the financial health and performance of the company in 2022 and 2021:

1. Liquidity:

   - The current ratio improved slightly from 2021 to 2022, indicating a better ability to cover short-term obligations with short-term assets.

2. Financial Structure:

   - The debt-equity ratio remained negative in both years, potentially indicating more equity than debt, though extreme negative values warrant further investigation.

3. Debt Servicing:

   - The debt service coverage ratio increased from 2021 to 2022, indicating an enhanced ability to cover debt obligations with operating income.

4. Profitability:

   - Return on equity was negative in 2022, indicating a loss compared to shareholder equity, while it was positive in 2021, suggesting profitability relative to shareholder investments.

   - Net profit ratio turned positive in 2022, indicating profitability, whereas it was negative in 2021, suggesting a loss relative to net sales.

   - Return on capital employed increased from 2021 to 2022, indicating improved profitability relative to the capital employed.

   - Return on investment was negative in 2022, indicating a loss relative to the investment made, while it was positive in 2021, signifying profitability relative to the investment.

5. Efficiency:

   - Inventory turnover ratio improved from 2021 to 2022, indicating better management of inventory.

   - Trade receivable turnover ratio decreased from 2021 to 2022, suggesting improved collection of accounts receivable.

   - Trade payable turnover ratio decreased from 2021 to 2022, indicating quicker payment to suppliers.

6. Capital Utilization:

   - Net capital turnover ratio remained negative in both years, suggesting potential issues with capital utilization efficiency.

Dividend History of Gujarat Wedge Wire Screens Limited: