Aggarsain Spinners Ltd Annual Reports, Balance Sheet and Financials

Aggarsain Spinners Limited Balance Sheet (Rs in Thousands)

Aggarsain Spinners Limited Profit & Loss Statement (Rs in Thousands)

 Aggarsain Spinners Limited Consolidated Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities:

In the year ending March 31, 2024, the company’s net cash flow from operating activities shows a significant outflow of ₹1,31,420.99 thousand compared to an inflow of ₹32,646.51 thousand in 2023. The operating profit before working capital changes grew substantially to ₹28,835.64 thousand in 2024 from ₹16,269.83 thousand in 2023. This increase was driven by higher net profit before tax (₹5,360.46 thousand) and a sharp rise in interest paid (₹21,077.18 thousand), though the company benefited from lower depreciation expenses.

However, working capital adjustments caused a significant drain on cash flow in 2024. Trade receivables and other current assets increased by ₹2,71,612.10 thousand, compared to a reduction of ₹15,493.42 thousand in 2023, indicating a substantial build-up in receivables, which negatively impacted cash flow. Inventories also saw a large increase of ₹25,809.35 thousand, in contrast to the previous year 's reduction, further tightening cash flow. On the other hand, trade payables and other current liabilities provided some relief, increasing by ₹1,37,542.95 thousand, a sharp reversal from the prior year, where they reduced cash flow by ₹16,161.48 thousand.

Cash Flow from Investing Activities:

Investing activities in 2024 were minimal, with a net outflow of ₹73.31 thousand compared to a net inflow of ₹2,709.33 thousand in 2023. The primary difference between the two periods was that in 2023, the company received interest income of ₹2,707.88 thousand, which did not recur in 2024. The only outflow in 2024 was a small investment in property, plant, and equipment (₹73.31 thousand). Overall, the investing activities had a negligible impact on the cash flow in 2024.

Cash Flow from Financing Activities:

Financing activities saw a significant positive impact in 2024, with a net inflow of ₹1,09,511.40 thousand compared to a net outflow of ₹12,844.07 thousand in 2023. The most significant factor contributing to this was the increase in short-term borrowings, which provided ₹1,36,972.73 thousand in 2024, a substantial change from the repayment of short-term borrowings (₹18,955.94 thousand) in 2023. However, the company continued to make interest payments, which increased to ₹21,077.12 thousand in 2024 from ₹9,406.18 thousand in 2023, likely due to the increased debt levels. Long-term borrowings were repaid, leading to an outflow of ₹6,384.15 thousand in 2024 compared to an inflow of ₹15,518.06 thousand in 2023.

Net Increase/Decrease in Cash and Cash Equivalents:

The company experienced a net decrease in cash and cash equivalents of ₹21,982.89 thousand in 2024, in contrast to a net increase of ₹22,511.78 thousand in 2023. Despite the positive cash inflows from financing activities, the large outflow from operating activities led to an overall reduction in cash. As a result, cash and cash equivalents decreased significantly, ending the year at ₹907.02 thousand, down from ₹22,889.91 thousand at the beginning of the year.

Financial Ratios of Aggarsain Spinners Limited

 Here is a summary of the financial and operational metrics for Aggarsain Spinners Limited for the year 2024 and 2023:

Debtors Turnover Ratio:

The debtors turnover ratio measures how efficiently a company collects its receivables. In 2023-24, this ratio increased to 5.01% from 3.62% in 2022-23, indicating that the company has improved its collection process. A higher ratio suggests that the company is collecting payments from customers more frequently, improving cash flow.

Inventory Turnover Ratio:

This ratio indicates how effectively the company is managing its inventory. The sharp rise from 8.77% in 2022-23 to 27.79% in 2023-24 suggests that the company is selling and replacing its inventory much faster. This could point to better sales performance or improved inventory management during the year.

Interest Coverage Ratio:

The interest coverage ratio measures a company 's ability to pay its interest expenses with its operating profit. The ratio declined drastically from 1.36% in 2022-23 to -0.25% in 2023-24, signaling that the company’s earnings were insufficient to cover its interest expenses in the latest period.

Current Ratio:

The current ratio assesses a company’s ability to meet short-term liabilities with short-term assets. In 2023-24, the ratio dropped significantly to 1.38% from 3.15% in 2022-23, suggesting a decline in the company’s liquidity.

Debt-Equity Ratio:

The debt-equity ratio measures the company’s financial leverage. The ratio increased to 2.95% in 2023-24 from 1.44% in 2022-23, indicating that the company has taken on significantly more debt relative to its equity. A higher ratio signals increased financial risk, as the company is relying more on borrowed funds for its operations.

Operating Profit Margin:

This ratio measures the percentage of revenue that translates into operating profit. The operating profit margin declined from 6.64% in 2022-23 to 2.86% in 2023-24, indicating that the company’s profitability from core operations has weakened. This could be due to rising costs or declining revenues, which have squeezed margins.

Net Profit Margin:

The net profit margin shows how much of the company’s revenue remains as profit after all expenses. In 2023-24, it dropped to 0.43% from 1.44% in the previous year. The decline reflects that the company is retaining a smaller portion of its revenue as net profit, indicating worsening overall profitability.

Return on Net Worth (RoNW):

RoNW measures the return generated on shareholders’ equity. The ratio remained relatively stable, with a slight decline to 4.77% in 2023-24 from 4.80% in 2022-23. This indicates that the company is generating nearly the same return on equity as in the previous year, with only a marginal decrease in performance.