AKC Steel Annual Reports, Balance Sheet and Financials

AKC Steel Industries Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, plant and equipment	903.03	914.81
Capital work-in-progress	41.54
Deferred tax Assets (Net)	36.05	-
Other Non-Current Assets	88.66	-
Current Assets
Inventories	56.14	42.21
Investments	865.32	544.24
Trade receivables	81.15	100.18
Cash and cash equivalents	25.81	19.74
Other financial assets	27.85	26.88
Current tax assets (Net)	-	13.15
Other current assets	62.14	62.30
Total Assets	2,187.69	1,723.51
Equity
Equity share capital	1,013.44	316.70
Other equity	1,062.80	1,348.50
Non-current Liabilities
Deferred tax liabilities (net)	-	11.37
Current Liabilities
Borrowings	35.00	-
Trade payables:
Total outstanding dues of micro  enterprises and small enterprises	5.04	6.71
Total outstanding dues of creditors other than micro enterprises and small enterprises	36.05	24.77
Other financial liabilities	5.97	4.19
Other Current Liabilities	5.97	6.11
Provisions	23.42	5.15
Total Equity and Liabilities	2,187.69	1,723.50

AKC Steel Industries Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue From Operations Other	809.29	433.58
Income	222.09	184.97
Total Income	1,031.37	618.55
Expenses
Purchases of Stock in trade/Process Scrap	4.74	19.5
Changes in inventories of Process Scrap and Traded Goods	-15.04	-8.44
Employee benefits expense	77.87	71.32
Finance costs	0.10	-
Depreciation and amortization expense	74.13	45.98
Other expenses	372.73	167.95
Profit before tax	516.86	322.24
Current Tax	150.83	63.5
Tax expense relating to earlier years	1.48	-4.81
Deferred Tax	-47.43	15.55
Profit/(loss) for the period	411.97	248.00
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Re measurements of defined benefit liability/(asset)	-0.75	1.84
Income taxes on items that will not be reclassified to profit or loss	0.19	0.46
Total Comprehensive Income for the period	411.04	249.38
Earnings per Equity Share
Basic	4.06	7.87
Diluted	4.06	7.87

AKC Steel Industries Limited Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash flow from operating activities
Net Profit/(Loss) before extra-ordinary items and tax	516.86	322.24
Adjustments for:
Depreciation and amortization	74.13	45.98
Gain on Sale of Fixed Assets	-	-6
Profit on redemption of mutual fund (short term)	-111.42	-4.86
Investment in Mutual Funds -Fair Value Changes	109.49	-70.6
Finance costs	0.10	-
Provisions	-0.02	2.11
Operating profit/(loss)before working capital changes	589.14	288.87
Changes in working capital:
Adjustments for(increase)/decrease in operating assets:
Inventories	-13.94	-7.9
Trade receivables	19.03	-30.47
Financial and Other Assets	-0.81	0.32
Adjustments for increase/(decrease)in operating liabilities:
Trade payables	9.61	-9.88
Financial and Other Liabilities	1.78	-5.73
Other Current Liabilities	-0.14	-
Provisions	17.54	-
Cash generated from operations	622.20	235.23
Net income tax(paid)/refunds	-139.35	-63.51
Net cash flow from/ (used in) operating activities	482.86	171.72
Cash flow from investing activities
Additions to fixed assets	-62.35	-188.3
Sale of Fixed Assets Capital	-	8.1
Capital work-in progress	-41.54	-
Capital Advances	-88.66	112
Sale of Mutual Funds	501.41	99.86
Investment in Mutual Funds	-820.56	-194.86
Net Cash flow from/ (used in) investing activities	-511.70	-163.20
Cash flow from financing activities
Proceeds from current borrowings	35.00	-
Finance cost	-0.10
Net cash flow from/ (used in) financing activities	34.90	-
Net increase/(decrease)in Cash and cash equivalents	6.06	8.52
Cash and cash equivalents at the beginning of the year	19.74	11.22
Cash and cash equivalents at the end of the year	25.80	19.74

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities
The company reported a net profit before extraordinary items and tax of ₹516.86 lakhs in FY 2025, up from ₹322.24 lakhs in FY 2024. After adjustments like depreciation, mutual fund gains/losses, and provisions, the operating profit before working capital changes stood at ₹589.14 lakhs in FY 2025 compared to ₹288.87 lakhs in FY 2024. Working capital movements contributed positively, mainly due to lower trade receivables and higher trade payables. After accounting for tax payments of ₹139.35 lakhs (₹63.51 lakhs in FY 2024), the net cash inflow from operations was ₹482.86 lakhs, which is significantly higher than the ₹171.72 lakhs generated in the previous year. This indicates improved internal cash generation.

Cash Flow from Investing Activities
In FY 2025, the company had a net cash outflow of ₹511.70 lakhs from investing activities, compared to an outflow of ₹163.20 lakhs in FY 2024. This was primarily due to heavy investments in mutual funds (₹820.56 lakhs) and additional capital expenditure on fixed assets, capital work-in-progress, and advances. Although proceeds from the sale of mutual funds (₹501.41 lakhs) provided some inflow, the overall effect was negative. In FY 2024, the company had also invested in mutual funds and fixed assets, but the outflow was comparatively lower.

Cash Flow from Financing Activities
Financing activities resulted in a net inflow of ₹34.90 lakhs in FY 2025, as the company availed short-term borrowings of ₹35.00 lakhs, offset slightly by finance costs. In the previous year, there was no financing activity reported, indicating that the company relied only on internal funds and investments then.

Net Change in Cash and Cash Equivalents
Overall, the company’s cash position improved slightly during FY 2025, with a net increase of ₹6.06 lakhs, compared to an increase of ₹8.52 lakhs in FY 2024. Cash and cash equivalents rose from ₹19.74 lakhs at the beginning of FY 2025 to ₹25.80 lakhs at the end of the year. While operating cash flows were strong, heavy investment outflows limited the overall increase in liquidity.

Financial Ratios of AKC Steel Industries Limited

Particulars	31-03-2025	31-03-2024
Current ratio	10.04	17.23
Debt-Equity Ratio	0.02	-
Debt Service Coverage Ratio	7.52	-
Return on equity ratio (in %)	19.84%	14.89%
Inventory Turnover ratio	16.46	11.33
Trade receivables turnover ratio	8.93	5.1
Trade Payables turnover ratio	10.24	4.65
Net capital turnover ratio	0.92	0.67
Net profit ratio (in %)	50.91%	57.20%
Return on capital employed (in %)	22.48%	19.22%
Return on Investment (in %)	47.61%	45.57%

Summary of the financial ratios of AKC Steel Industries Limited for the year 2025 and 2024:

Current Ratio
The current ratio declined from 17.23 in FY 2024 to 10.04 in FY 2025. Although still very high compared to the ideal benchmark of 2, the fall indicates that the company has slightly reduced its liquidity cushion. The business continues to hold significantly more current assets than current liabilities, showing a strong short-term solvency position.

Debt-Equity Ratio
The debt-equity ratio stood at 0.02 in FY 2025, while in FY 2024 the company had no debt at all. This indicates that AKC Steel is largely equity-financed and carries negligible financial leverage, which keeps risk low but also limits the benefit of leveraging cheap borrowings for expansion.

Debt Service Coverage Ratio (DSCR)
The DSCR in FY 2025 was 7.52, which is very strong. It shows the company is more than capable of covering its debt obligations from operating earnings. Since there was no debt in FY 2024, the ratio was not applicable then.

Return on Equity (ROE)
ROE improved from 14.89% in FY 2024 to 19.84% in FY 2025. This shows that the company generated better returns for shareholders, driven by higher profitability and efficient use of equity funds.

Inventory Turnover Ratio
The ratio increased from 11.33 times in FY 2024 to 16.46 times in FY 2025, reflecting faster inventory movement. This indicates better efficiency in managing stock and stronger demand or sales performance compared to the previous year.

Trade Receivables Turnover Ratio
The receivables turnover improved from 5.1 in FY 2024 to 8.93 in FY 2025. This means the company collected payments from customers more quickly, strengthening its cash cycle and reducing credit risk.

Trade Payables Turnover Ratio
The payables turnover rose significantly from 4.65 in FY 2024 to 10.24 in FY 2025. This shows the company is paying its suppliers much faster than before, which could indicate strong liquidity but also reduced credit utilization from vendors.

Net Capital Turnover Ratio
The ratio improved from 0.67 in FY 2024 to 0.92 in FY 2025. This suggests that the company is generating higher sales relative to its working capital employed, reflecting better operational efficiency.

Net Profit Ratio
The net profit margin decreased from 57.20% in FY 2024 to 50.91% in FY 2025. Although still at an exceptionally high level, the slight dip suggests rising costs or lower relative profitability despite increased revenues.

Return on Capital Employed
ROCE improved from 19.22% in FY 2024 to 22.48% in FY 2025, showing that the company is generating higher returns from the overall capital employed, which reflects strong operational profitability.

Return on Investment
ROI increased marginally from 45.57% in FY 2024 to 47.61% in FY 2025. This means that investments made by the company are yielding very strong returns, and the improvement highlights efficient deployment of funds.