Aashrit Capital Annual Report

Aashrit Capital Limited (Aashrit Capital) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Aashrit Capital Limited

Aashrit Capital Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Financial Assets
Cash and Cash Equivalents	12.17	147.08
Loans	5,327.73	5,669.40
Other Financial Assets	1.25	5.06
Non-Financial Assets
Inventories	12,428.79	11,894.96
Current Tax Assets	8.84	8.84
Property, Plant and Equipment	108.37	41.12
Other Non-Financial Assets	31.55	26.81
Total Assets	17,918.70	17,793.27
Financial Liabilities
Borrowings	-	16.58
Other Financial Liabilities	7.59	9.05
Non-Financial Liabilities
Current Tax Liabilities (Net)	12.10	29.89
Deferred Tax Liabilities (Net)	1,320.13	1,401.43
Other Non-Financial Liabilities	1.46	2.61
Equity
Equity Share Capital	1,120.25	1,120.25
Other Equity	15,457.17	15,213.46
Total Equity and Liabilities	17,918.70	17,793.27

Aashrit Capital Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from Operations
Interest Income	502.73	327.41
Net gain on fair value changes	-	1,585.06
Sales	409.16	3,730.84
Other Income	6.64	18.23
Total Income	918.53	5,661.54
Expenses
Finance cost	0.60	7.55
Fee and commission expense	2.24	11.17
Impairment of financial instruments	-1.37	-9.77
Purchase of stock in trade	939.26	123
Changes in Inventories of finished goods, stock-in-trade and work-in-progress	-533.84	2,632.59
Employee benefits expenses	55.62	68.6
Depreciation, amortization and impairment	50.03	45.22
Other expenses	170.22	197.94
Total Expenses	682.76	3,076.30
Profit/(loss) before tax	235.76	2,585.23
Current Tax	72.98	663.93
Deferred Tax	-81.30	-387.3
Previous Year Taxes	0.38	0.65
Profit/(loss) for the year	243.71	2,307.95
Total Comprehensive Income for the year	243.71	2,307.95
Earnings Per Share
Basic (Rs)	2.18	20.6
Diluted (Rs)	2.18	20.6

Aashrit Capital Limited Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operation Activities
Net Profit before Taxation and Extraordinary items	235.76	2,585.23
Adjustments:
Adjustments in current year profits	-	-1.69
Depreciation and amortization expenses	50.03	45.22
Impairment of financial instruments	-1.37	-9.77
Finance Cost	0.60	7.55
Net Gain/(Loss) on Fair value changes of Financial Instruments	-	-1,585.06
Profit on Cancellation of Lease	-	-18.04
Operating cash flow before working capital changes	285.01	1,023.44
(Increase)/decrease in Inventories	-533.84	2,632.59
(Increase)/decrease in Loans & Advances	343.05	-3,264.84
(Increase)/decrease in other Financial Assets	3.81	-4.35
(Increase)/decrease in Other Non Financial Assets	-4.74	452.22
(Increase)/decrease in Current Tax Assets	-	1.69
Increase/(decrease) in Non Financial Liabilities	-1.15	0.66
Increase/(decrease) in Financial Liabilities	-1.45	-2.1
Cash (used in)/generated from operations	90.70	839.31
Less: Payment of Income Tax	91.15	645.65
Net cash (used in)/generated from Operating Activities	-0.45	193.66
Cash Flow from Investing Activities
Purchases of Fixed Assets	-117.28	-0.13
Net cash (used in)/generated from Investing Activities	-117.28	-0.13
Cash Flows from Financing Activities
Increase/(decrease) in Short Term Borrowings	-16.58	-25.8
Payments for principal portion of lease liability	-	-27.71
Finance Cost	-0.60	-7.55
Net cash generated from/(used in) Financing Activities	-17.18	-61.06
Net change in cash and cash equivalents	-134.91	132.47
Cash and cash equivalents-opening balance	147.08	14.61
Cash and cash equivalents-Closing balance	12.17	147.08

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Operating activities reflect the cash flows generated from the company’s core business operations. In 2024, the net profit before tax and extraordinary items stood at ₹235.76 lakhs, a sharp decline from ₹2,585.23 lakhs in 2023. This decline suggests a lower profitability in the current year, possibly due to reduced revenues or higher costs.

Several adjustments were made to the net profit to reflect non-cash items and one-time adjustments. In 2024, depreciation and amortization expenses were ₹50.03 lakhs, up slightly from ₹45.22 lakhs in 2023, indicating a consistent expense for asset depreciation. There was also a small finance cost of ₹0.60 lakhs in 2024, down from ₹7.55 lakhs in 2023. No significant fair value changes or lease cancellations were present in 2024, unlike the previous year where there was a loss from financial instruments and a profit from lease cancellation. After these adjustments, the operating cash flow before working capital changes amounted to ₹285.01 lakhs in 2024, compared to ₹1,023.44 lakhs in 2023.

Working capital adjustments, which account for changes in current assets and liabilities, had a notable impact on cash flows. In 2024, there was a significant increase in inventories (₹533.84 lakhs), which decreased cash flow, indicating that the company had more stock on hand, possibly due to lower sales or excess production. On the other hand, loans and advances decreased by ₹343.05 lakhs, which helped boost cash flows. Other financial and non-financial assets showed minimal changes, and the net effect of changes in liabilities was also marginal.

After accounting for these changes, cash generated from operations in 2024 was ₹90.70 lakhs, significantly lower than the ₹839.31 lakhs generated in 2023. Following the payment of income tax (₹91.15 lakhs in 2024 compared to ₹645.65 lakhs in 2023), the net cash flow from operating activities was slightly negative at ₹-0.45 lakhs in 2024, compared to a positive cash flow of ₹193.66 lakhs in 2023. This indicates that while the company generated some cash from its operations, it was not sufficient to cover tax payments, resulting in a small cash outflow.

Cash Flow from Investing Activities

Investing activities reflect the cash used or generated from investments in long-term assets, such as property, plant, and equipment. In 2024, the company spent ₹117.28 lakhs on purchasing fixed assets, which represents an investment in its operational capacity. This was a much larger outflow compared to 2023, where the company only spent ₹0.13 lakhs on fixed assets.

No cash inflows were reported from asset sales or other investments in either year. As a result, the net cash flow from investing activities was negative at ₹-117.28 lakhs in 2024, compared to a minimal outflow of ₹-0.13 lakhs in 2023. The increased spending on fixed assets in 2024 suggests the company is focusing on expanding or upgrading its infrastructure, though it puts pressure on cash reserves.

Cash Flow from Financing Activities

Financing activities show the cash flows related to borrowings, repayments, and other financing-related movements. In 2024, the company reduced its short-term borrowings by ₹16.58 lakhs, compared to a reduction of ₹25.80 lakhs in 2023, indicating a continued effort to lower debt levels. There were no payments related to lease liabilities in 2024, in contrast to 2023 where the company paid ₹27.71 lakhs for the principal portion of lease liabilities.

The finance costs were minimal in both years, with ₹0.60 lakhs paid in 2024 compared to ₹7.55 lakhs in 2023. Overall, the company reported a net cash outflow of ₹-17.18 lakhs from financing activities in 2024, slightly improved from the outflow of ₹-61.06 lakhs in 2023. This smaller outflow reflects reduced debt repayments and lower financing costs in 2024.

Net Change in Cash and Cash Equivalents

After considering all the operating, investing, and financing activities, the company experienced a net cash outflow of ₹-134.91 lakhs in 2024, contrasting with a cash inflow of ₹132.47 lakhs in 2023. This significant difference is primarily due to the reduced cash generated from operations and higher investments in fixed assets during 2024.