K2 System Limited Annual Report | Financials | Balance Sheet for FY 2018-17

K2 Systems Limited (K2 Systems) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
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K2 Systems Limited

K2 System Limited Balance Sheet (In Rupees)

PARTICULARS	2018	2017
ASSETS
NON CURRENT ASSETS
Property ,plant and equipment	0	0
Capital work in progress	0	0
Other intangible assets	0	0
Financial assets
Investments in subsidiaries /associate etc..,at cost	0	0
Loans	0	0
Other financial assets	0	0
Other non-current assets	290035	0
TOTAL NON CURRENT ASSETS	290035	0
2.CURRENT ASSETS
Inventories	0	0
Fixed assets
Trade receivables	0	381321
Cash and cash equivalents	48959	31082
Bank balances other than (ii)above	0	0
Loans
Other financial assets	0	0
Current tax assets (Net)	0	0
Other current assets	-46000	40548
	0	0
TOTAL CURRENT ASSETS	2959	452951
TOTAL ASSETS	292994	452951
EQUITY AND LIABILITIES EQUITY
Equity share capital	3940000	3940000
Other equity	-5308173	-5359729
Total equity Liabilities	-1368173	-1419729
1.Non-current liabilities
Financial liabilities	0	0
Borrowings	0	0
Other financial liabilities	0	0
Provisions
Deferred tax liabilities (net)	0	0
Government grants	0	0
Total non-current liabilities	0	0
Current liabilities	0	0
Financial liabilities
Borrowings	-	0
Trade payables
(A)micro, small, medium enterprises
(B)other than MSMEs	1534626	1705139
other financial liabilities	0	0
Other current liabilities
Government grants	126541	167541
Provisions	0	0
Total current liabilities	1664167	1872680
Total liabilities	292994	452951
Total equity and liabilities
Corporate information and significant accounting polices	-1075179	-966778

K2 System Limited Profit & Loss Statement (In Rupees)

PARTICULARS	2018	2017
PARTICULARS	2018	2017
INCOME
REVENUE FROM OPERATIONS
Sale of products(including subsidy)
Sale of services	591552
Other operating revenues	306000	1078520
Other income	0	0
TOTAL	897552	1078520
Expenses
Cost of materials consumed	0	0
Purchase of stock in trade	0	0
Changes in inventories of finished goods ,stock-in – trade and work in progress	0	0
Power and fuel	0	0
Employee benefits expense	262000	531000
Finance cost	1537	975
Depreciation and amortization	0	0
Expense excise duty	0	0
Other expenses	455187	394204
TOTAL	718724	926179
Loss before exceptional items and tax	178828	152341
Exceptional items	0	0
Loss before tax	178828	152341
Tax expense
a) Current tax	46000	40724
c) Deferred tax	81872	12582
Loss after tax	51556	99035
Other comprehensive income NIL	0	0
Total other comprehensive income, net of tax	0	0
Total comprehensive income	51556	99035
Earnings per equity share of face value of Rs 1/-each Basic and diluted Corporate information and significant accounting policies	0.13	0.25

K2 System Limited Consolidated Cash Flow Statement (In Rupees)

PARTICULARS	2018	2017
CASH FOLW FROM OPERATING ACTIVITIES
Net Profit / Loss before tax and extraordinary item	178828	1,52,341
Adjustments for:
Depreciation	-	-
Interest paid	-	-
Other Income	-	-
Misc. Exp. Written off	-	-
Operating Profit before Working Capital Changes	178828	152341
Adjustments for:
Decrease in Trade Receivables	381321	34500
Increase in Loans & Advances	-	-
Decrease in other current liabilities	-41000
Decrease in Sundry Creditors	-17513	-640620
Cash Generated From Operations:	348636	-606120
Tax paid	-19795	13712
Net cash flow/(used) from operating activities (A)	328841	-467491
CASH FLOW FROM INVESTING ACTIVITIES;
Purchase of Fixed Assets	-	-
Purchase of Investments	-	-
Sale of Investments	-	-
Net cash flow/(used) from investing activities (B)
CASH FLOW FROM FINANCING ACTIVITIES
Issue of Share Capital	-	-
Secured & Unsecured Loans taken Dividend & Dividend tax Paid	-310063	464000
Net cash flow/(used) from financing activities (C)	-329858	464000
"Net Increase / Decrease in Cash and Cash	18778	-3491
equivalents (A+B+C)"
Cash and cash equivalents as at beginning of the year	30181	34763
Cash and cash equivalents as at end of the year	48959	31082

Let 's break down the Cash Flow Statement for the years 2018 and 2017 in rupees, focusing on each activity:

Cash Flow from Operating Activities:

1. Net cash inflow from operating activities in 2018 was Rs.328,841, indicating positive cash generated from the core business operations.

2. In contrast, in 2017, there was a net cash outflow of Rs.-467,491, suggesting that more cash was used in operating activities than generated.

Cash Flow from Investing Activities:

3. Specific details about investing activities, including the purchase and sale of fixed assets or investments, are not provided, making it challenging to assess the impact on cash flow.

Cash Flow from Financing Activities:

4. Financing activities in 2018 resulted in a net cash outflow of Rs.-329,858, primarily due to unspecified activities. It includes possible repayment of loans or other financial obligations.

5. In 2017, there was a net cash inflow of Rs.464,000 from financing activities, possibly indicating an influx of funds through loans or other financial instruments.

Net Increase/Decrease in Cash and Cash Equivalents:

6. The overall cash position improved in 2018 with a net increase in cash and cash equivalents amounting to Rs.18,778. This positive trend suggests improved liquidity.

7. Conversely, in 2017, there was a net decrease of Rs.-3,491, indicating a reduction in cash and cash equivalents over the year.

Cash and Cash Equivalents:

8. Cash and cash equivalents at the beginning of 2018 were Rs.30,181, and by the end of the year, they increased to Rs.48,959, reflecting positive cash management.

9. In 2017, cash and cash equivalents started at Rs.34,763 and decreased to Rs.31,082 by the end of the year, signifying a decline in available cash.

Below are the Financial Ratios:

PARTICULARS	2014
EBITDA	0.89 %
Net worth	11.05 %
Debt/Equity Ratio	-4.25
Return on Equity	N/A
Total Assets	447.81 %
Fixed Assets	-16.18 %
Current Assets	492.90 %
Current Liabilities	1,640.27 %
Trade Receivables	1,222.80 %
Trade Payables	1,948.03 %
Current Ratio	1.16

Let 's break down each parameter for a detailed understanding:

1. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):

EBITDA margin is 0.89%, indicating that the company 's EBITDA as a percentage of total revenue is relatively low.

2. Networth:

Net worth as a percentage of total equity is 11.05%. This metric represents the company 's ownership interest in its assets after deducting liabilities.

3. Debt/Equity Ratio:

The Debt/Equity Ratio is -4.25, which seems unusual. Typically, this ratio should be positive or zero. A negative value might suggest an inconsistent or unconventional accounting approach.

4. Return on Equity (ROE):

Return on Equity is marked as N/A, indicating that there might be missing or insufficient data to calculate this metric. ROE measures the profitability of a company in relation to its equity.

5. Total Assets:

Total assets are 447.81% of some reference value (possibly equity or revenue). This indicates that the company 's assets are significantly higher than the specified benchmark.

6. Fixed Assets:

The Fixed Assets percentage is -16.18%, which seems unusual. A negative value in this context may indicate an accounting anomaly or misinterpretation of the data.

7. Current Assets:

Current assets are 492.90% of some reference value, suggesting a substantial proportion of short-term assets in the company 's asset mix.

8. Current Liabilities:

Current liabilities are 1,640.27% of some reference value, indicating a high level of short-term obligations compared to the specified benchmark.

9. Trade Receivables:

Trade receivables are 1,222.80% of some reference value, suggesting a high proportion of sales that are yet to be collected.

10. Trade Payables:

Trade payables are 1,948.03% of some reference value, indicating a significant amount of unpaid bills. This might be due to extended payment terms with suppliers.

11. Current Ratio:

The current ratio is 1.16, calculated as current assets divided by current liabilities. A value above 1 suggests that the company has more current assets than current liabilities, which is generally considered a positive liquidity indicator.

Annual Report

K2 Systems Limited Annual Report 2018

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K2 System Limited Annual Reports, Balance Sheet and Financials