Adventz Securities Enterprises Annual Reports, Balance Sheet and Financials

Adventz Securities Enterprises Limited Balance Sheet (Rs in Lakhs)

Adventz Securities Enterprises Limited Profit & Loss Statement (Rs in Lakhs)

 Adventz Securities Enterprises Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities:

The net cash inflow from operating activities for the year ending March 31, 2024, amounted to Rs. 316.80 lakhs, an improvement over the Rs. 204.41 lakhs in 2023. The company’s profit before tax increased significantly from Rs. 1,208.81 lakhs in 2023 to Rs. 2,133.17 lakhs in 2024, reflecting strong business performance. Adjustments to this profit included depreciation and amortization (Rs. 4.26 lakhs), provisions for sub-standard/doubtful assets (Rs. 10 lakhs), and provisions for gratuity and leave (Rs. 8.38 lakhs), contributing to the positive cash flow. However, the company experienced a significant reduction in operating profit due to a substantial share of losses from associates (Rs. 1,554.96 lakhs in 2024 compared to Rs. 901.68 lakhs in 2023), along with income on mutual fund investments (-Rs. 15.98 lakhs) and dividend income (-Rs. 42.18 lakhs).

After adjusting for changes in operating assets and liabilities, such as loans, other financial and non-financial assets, and liabilities, the cash generated from operations was Rs. 442.60 lakhs in 2024 compared to Rs. 278.11 lakhs in 2023. However, income taxes paid increased from Rs. 73.70 lakhs to Rs. 125.80 lakhs, which reduced the overall net operating cash inflow.

Cash Flow from Investing Activities:

The net cash outflow from investing activities in 2024 was Rs. 509.66 lakhs, marking a significant change from a small inflow of Rs. 7.07 lakhs in 2023. This shift was driven by a large outflow of Rs. 547.78 lakhs related to the net sale of investments, compared to Rs. 32.17 lakhs in 2023. The company also purchased fixed assets worth Rs. 4.06 lakhs during the year, similar to the Rs. 4.55 lakhs in 2023. While dividend income remained stable (Rs. 42.18 lakhs), the overall negative cash flow from investing activities was substantial, likely due to a strategic decision to invest heavily in financial instruments or other investment opportunities.

Cash Flow from Financing Activities:

The net change in cash and bank balances resulted in a decrease of Rs. 192.86 lakhs in 2024, compared to an increase of Rs. 211.48 lakhs in 2023. This was primarily due to the significant cash outflow from investing activities, which outweighed the positive cash flow from operations. The company’s cash and cash equivalents at the beginning of 2024 stood at Rs. 239.24 lakhs, but after the year’s financial activities, it decreased to Rs. 46.38 lakhs by the end of the fiscal year.

Financial Ratios of Adventz Securities Enterprises Limited

Here is a summary of the financial and operational metrics for Adventz Securities Enterprises Limited for the year 2024 and 2023:

Capital to Risk-Weighted Assets Ratio (CRAR):

The Capital to Risk-Weighted Assets Ratio (CRAR), also known as the Capital Adequacy Ratio, measures a bank 's capital in relation to its risk-weighted assets. This ratio indicates the bank 's ability to absorb a reasonable amount of loss and safeguard depositors ' money. In 2024, the CRAR decreased to 24.75% from 30.67% in 2023. Despite the decrease, a CRAR of 24.75% still indicates a strong capital base, significantly higher than the regulatory minimum. The decline may suggest that the bank’s risk-weighted assets increased faster than its capital base, or there was a decrease in the overall capital during the year.

Tier I CRAR:

The Tier I Capital Adequacy Ratio represents the core capital of the bank, which includes common equity, retained earnings, and other reserves. It is the primary buffer against unexpected financial shocks. In 2024, the Tier I CRAR stood at 21.25%, down from 23.17% in 2023. This shows a slight weakening in the core capital position, but the bank still maintains a strong buffer, with its Tier I ratio well above regulatory requirements. The slight reduction indicates that while the bank has strong reserves, it may have experienced either an increase in risk-weighted assets or moderate growth in core capital.

Tier II CRAR:

The Tier II Capital Adequacy Ratio includes supplementary capital such as subordinated debt, hybrid instruments, and loan-loss reserves. It is less secure than Tier I capital but still provides an additional cushion for the bank. The Tier II CRAR decreased significantly from 7.5% in 2023 to 3.51% in 2024. This sharp decline indicates that the bank may have reduced its reliance on supplementary capital or repaid subordinated debt during the year. While Tier II capital is important for overall capital adequacy, the bank 's focus on maintaining a strong Tier I ratio shows a conservative approach, prioritizing high-quality capital.