Aggarsain Spinners Ltd Annual Reports, Balance Sheet and Financials

Aggarsain Spinners Limited Standalone Balance Sheet (Rs in Thousands)

Particulars	31-03-2025	31-03-2024
Non-current assets
Property, plant and equipment	12,763.61	12,399.52
Right of Use Assets	11,550.39	0.00
Other non-current financial assets	723.77	0.00
Current assets
Inventories	87,113.45	44,648.02
Trade receivables	2,20,313.51	2,87,143.31
Cash and cash equivalents	739.34	907.01
Other bank balance	15.00	15.00
Other financial assets	77,023.51	1,24,596.48
Other current assets	8,201.76	8,571.48
Total Assets	4,18,444.34	4,78,280.82
Equity
Equity Share capital	35,034.00	35,034.00
Other Equity	52,758.21	47,706.64
Non-current liabilities
Borrowings	72,383.80	59,134.52
Non-current Lease Liabilities	9,383.86	0.00
Deferred tax liabilities (Net)	161.16	1.97
Current liabilities
Short Term Borrowings	1,85,645.49	1,85,292.58
Current Lease Liabilities	2,085.58	0.00
Trade payables
Dues of creditors other than micro & small enterprises	49,498.79	1,44,785.17
Other financial liabilities	9,350.71	4,592.13
Other current liabilities	560.83	358.33
Current provisions	1,581.91	1,375.48
Total Equity and Liabilities	4,18,444.34	4,78,280.82

 

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

Particulars	31-03-2025	31-03-2024
Revenue from Operations	10,98,141.54	9,25,865.36
Other Income	3,728.76	-
Total Income	11,01,870.30	9,25,865.36
Expenses
Cost of Material Consumed	0.00	20,022.00
Purchase of Stock in trade	10,90,634.13	8,50,413.32
Changes in Inventories	(42,465.43)	11,681.11
Employee Benefits Expense	10,729.62	10,361.69
Finance Costs	26,220.79	21,077.18
Depreciation & Amortization Expenses	3,998.69	2,398.01
Other Expenses	5,667.82	4,551.59
Total Expenses	10,94,785.63	9,20,504.90
Profit/(Loss) before tax	7,084.67	5,360.46
Current Year	1,995.30	1,710.20
Earlier Year	-121.39	47.73
Deferred Tax	159.19	-347.46
Profit/ Total comprehensive income for the year	5,051.57	3,949.99
Earnings per equity share
Basic & Diluted	1.44	1.13

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

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activities :
Net Profit before tax and extraordinary items	7,084.67	5,360.46
Adjusted for :
Depreciation & Amortization Expenses	3,998.69	2,398.01
Interest Paid	26,220.79	21,077.18
Interest income on security Deposit	(50.66)	-
Interest income	(2,072.10)	-
Operating Profit Before Working Capital Changes	35,181.39	28,835.64
Adjusted for :
(Increase)/decrease Trade receivables/other current assets	1,14,772.48	-2,71,612.10
(Increase)/decrease Inventories	-42,465.43	-25,809.35
Increase/(decrease) Trade Payables and current liabilities	-90,325.31	1,37,542.95
Cash Generated From Operations	17,163.13	-1,31,042.85
Direct Taxes paid / adjusted	1,667.49	378.14
Net cash from Operating activities	15,495.64	-1,31,420.99
Cash Flow From Investing Activities :
Purchase of property, Plant and equipment	-3,000.00	-73.31
Security Deposit against ROU	-1,160.00	-
Interest Received	2,072.10	-
Net Cash from investing activities	-2,087.90	-73.31
Cash Flow From Financing Activities :
Interest paid	-26,220.79	-21,077.12
Repayment of Lease Liabilities	-956.82	-
Net Proceeds/(Repayment) of Long Term Borrowings	13,249.28	-6,384.15
Net Proceeds/(Repayment) from Short term Borrowings	352.91	1,36,972.73
Net Cash from Financing activities	-13,575.42	1,09,511.40
Net Increase In Cash And Cash Equivalents	-167.67	-21,982.89
Cash And Cash Equivalents At The Beginning Of The Year	907.01	22,889.91
Cash And Cash Equivalents At The End Of The Year	739.34	907.02

 

Cash Flow Statement Analysis – Aggarsain Spinners Limited (Rs in Thousands)

(Activity-wise Summary Explanation)

Operating Activities:
The company reported an increase in net profit before tax to ₹7,084.67 (from ₹5,360.46). After adjusting for depreciation (₹3,998.69) and substantial interest cost (₹26,220.79), operating profit before working capital changes stood at ₹35,181.39.

A significant improvement in working capital was observed during the year. Trade receivables and other current assets released ₹1,14,772.48, though inventories increased by ₹42,465.43 and trade payables declined by ₹90,325.31. Despite these mixed movements, cash generated from operations turned positive at ₹17,163.13 compared to a large negative figure in the previous year.

After tax adjustments, net cash from operating activities stood at ₹15,495.64, marking a strong turnaround from the previous year’s negative operating cash flow. This indicates improved operational efficiency and better working capital management during FY 2025.

Investing Activities:
During the year, the company invested ₹3,000.00 in property, plant and equipment and ₹1,160.00 as security deposit against Right-of-Use (ROU) assets. However, interest income of ₹2,072.10 partially offset these outflows. Net cash used in investing activities amounted to ₹(2,087.90), reflecting moderate capital deployment for asset strengthening and operational requirements.

Financing Activities:
Financing cash flows were negative at ₹(13,575.42). The company incurred heavy interest payments of ₹26,220.79 and repaid lease liabilities of ₹956.82. Although long-term borrowings increased by ₹13,249.28 and short-term borrowings by ₹352.91, these inflows were insufficient to offset finance costs. In contrast, the previous year showed strong positive financing inflows mainly due to short-term borrowings.

Overall Cash Position:
Overall, cash and cash equivalents marginally decreased by ₹167.67 during the year, closing at ₹739.34 as against ₹907.01 at the beginning of the year. While operating performance improved significantly, high finance costs and debt servicing obligations continue to exert pressure on liquidity. The company has shown operational recovery, but sustained cash stability will depend on controlling finance costs and maintaining efficient working capital management. 

Financial Ratios of Aggarsain Spinners Limited

Particulars	2024-25	2023-24
Debtors turnover ratio	4.33%	5.31%
Inventory Turnover Ratio	15.91%	21.99%
Interest Coverage ratio	2.80%	-0.25%
Current ratio	1.58%	1.38%
Debt equity ratio	2.94%	2.95%
Operating profit margin	3.39%	2.86%
Net Profit margin	0.46%	0.43%
Return on net worth	3.93%	4.77%

 Key Ratio Analysis – Aggarsain Spinners Limited

1. Debtors Turnover Ratio:
The ratio declined to 4.33 times from 5.31 times, indicating slower recovery from customers. This suggests a relatively longer collection period during FY 2025, which may impact short-term liquidity and working capital efficiency.

2. Inventory Turnover Ratio:
Inventory turnover decreased to 15.91 times from 21.99 times. The lower ratio reflects slower movement of inventory compared to the previous year, possibly due to higher stock holding or moderate demand conditions. Efficient inventory management will be important to avoid carrying costs and obsolescence risk.

3. Interest Coverage Ratio:
The interest coverage ratio improved significantly to 2.80 times from a negative (0.25) times in the previous year. This indicates that the company is now generating sufficient operating profits to cover its interest obligations, marking a substantial improvement in financial stability.

4. Current Ratio:
The current ratio increased to 1.58 times from 1.38 times, showing improved short-term solvency. The company maintains adequate current assets to meet its current liabilities, reflecting a stronger liquidity position.

5. Debt-Equity Ratio:
The debt-equity ratio remained almost stable at 2.94 times compared to 2.95 times in the previous year. This indicates that the company continues to operate with a high leverage position. Although stable, the level of debt remains relatively high and requires consistent profitability for sustainability.

6. Operating Profit Margin:
Operating profit margin improved to 3.39% from 2.86%, indicating better operational efficiency and cost management during the year.

7. Net Profit Margin:
Net profit margin marginally improved to 0.46% from 0.43%, showing slight enhancement in overall profitability after accounting for finance costs and taxes. However, margins remain thin, which suggests limited cushion against adverse market conditions.

8. Return on Net Worth (RONW):
Return on Net Worth declined to 3.93% from 4.77%, indicating comparatively lower returns generated for shareholders despite improved operating margins. This may be due to high finance costs or capital structure pressures.

Overall Interpretation:

Aggarsain Spinners Limited has shown improvement in profitability and interest coverage, along with better liquidity. However, efficiency ratios such as debtor and inventory turnover have weakened, and leverage remains high. Sustained operational performance and reduction in finance costs will be crucial for improving shareholder returns and strengthening financial stability.