Amarawati Tea Co Annual Reports, Balance Sheet and Financials

Balance Sheet Of AMARAWATI TEA COMPANY TIMITED as at 31st March 2025 ('in '00)

Particulars	2024-25	2023-24
EQUITY AND LIABILITIES
Shareholders Funds
Share capital	12,000.00	12,000.00
Reserves & surplus	2,158,615.19	2,038.028.85
Non-current liabilities
Long Term Borrowings	133,394.10	171,290.16
Deferred tax liabilities (net)	25,268.26	25,633.41
Current liabilities
Short term borrowings	1,208,844.74	885,770.84
Trade payables	336,894.23	271,933.53
Other current liabilities	552,376.18	408,741.08
TOTAL	4,427,392.70	3,812.797.86
ASSETS
Non-current assets
Property, Plant & Equipment and Intangible Assets
(i) Property, Plant and Equipment	1,360,274.93	1,245,816.26
(ii) Intangible assets	1,434.92	1,776.92
(iii) Capital work-in-progress	1,82,728.O5	218,446.26
Non current investments	842,077.61	454,802.7L
Other non-current assets	224,400.07	212,115.61
Current assets
lnventories	325,088.98	263,298.34
Trade receivables	654,974.28	623,257.16
Cash and cash equivalents	204,703.10	164,830.28
Short term loans and advances	479,578.O2	481,329.43
Other current assets	1.52,132.74	147,124.89
TOTAL	4,427,392.7O	3,812,797.86

Statement of Profit & Loss Of AMARAWATI TEA COMPANY LIMITED for the year ended 31st March 2025 ('in '00)

Particulars	2024-25	2023-24
Incomes
Revenue from operations	6,310,491.71	6,228,136.32
Other income	546,860.93	234,904.36
Total Revenue	6,857,352.64	6,463,040.67
Expenses
Cost of materials consumed	661,265.98	411, 108.65
Purchases of Stock-in Trade	1,640,141.32	1,780,386.07
Changes in inventories of finished goods	(29,989.50)	26,959.52
Employee benefit expenses	2,890,456.60	2,717,526.11
Finance costs	178,964.67	153,940.07
Depreciation and Amortisation expense	110,780.63	102,762.36
Other expenses	1,253,297.97	1,151,353.76
Total Expenses	6,704,917.67	6,344,036.55
Profit before tax	152,434.97	119,004.12
Tax expenses
- Current tax	(50,338.30)	(32,193.65)
- MAT Credit Entitlement	18,061.80	-
- Tax for earlier years	62.73	-
- Deferred tax	365.15	480.62
Profit/(Loss) for the year	120,586.35	87,291.09
Earnings per Equity Share (face value of Rs. 100 each)
Basic & diluted (in Rs.)	1,004.89	727.43

CASH FLOW STATEMENT Of AMARAWATI TEA COMPANY LIMITED for the year ended 31st March 2025 ('in '00)

Activity-wise cash flow analysis of Amarawati Tea Company Limited, with figures interpreted 

Particulars	2024-25	2023-24
A. CASH FLOW FROM OPERATING ACTIVITIES
Net profit before Tax	152,434.97	119,004.12
Adjustment for:
Depreciation	110,780.63	102,762.36
(Profit)/Loss on Sale of Fixed assets	1,583.18	(100.00)
Loss/ (Profit) on sale of Investments	(467,061.43)	(134,756.28)
Fixed Assets Discarded	362.50	-
Dividend Received	(483.03)	(4,172.35)
Interest Paid	178,964.67	153,940.07
Interest on Income Tax Refund	(1,335.34)	(959.32)
Interest Income	(57,430.24)	(53,424.71)
Operating Profit before working capital changes	(81,821.59)	182,293.88
Adjustment for-
(Increase)/Decrease in Inventories	(61,790.64)	46,515.46
Decrease/(Increase) in Trade & Other recelvables	(31,717.12)	(71,185.49)
(Increase)/Decrease in Loans & Advances	(3,256.44)	47,789.15
(Increase)/Decrease in Non Current Assets	(4,267.12)	(11,531.72)
Increase/(Decrease) in Trade Payable & Other Current Liabilities	209,195.80	125,626.73
Cash Generated from Operations	26,342.89	319,508.01
Direct tax paid [including TDS](Net of Refund Recelved)	(39,258.27)	(45,809.99)
Net Cash from Operating Activitles	(12,915.38)	273,698.02
B. CASH FLOW FROM INVESTING ACTIVITIES
(Purchase) of Fixed assets	(228,424.75)	(185,950.18)
Sale of Fixed Assets	37,300,00	35,099.98
(Purchase) of Investments	(1,115,950.18)	(3,446,681.68)
Sale of Investments	1,195,736.70	3,297,232.24
Net Cash from Investing Activities	(111,338.23)	(300,299.64)
C. CASH FLOW FROM FINANCING ACTIVITIES
(Payments) / Proceeds from long term Borrowings	(37,896.05)	(101,339.17)
(Payments) / Proceeds from short term Borrowings	323,073.90	200,303.58
Interest received	57,430.24	53,424.71
Interest Paid	(178,964.67)	(153,940.07)
Dividend Received	483.03	4,172.35
Net Cash used in Financing Activities	164,126.44	2,621.40
Net Increase/(Decrease) in Cash & Cash Equivalents	39,872.83	(23,980.22)
Opening Cash & Cash Equivalents	164.830.28	188,810.49
Net Increase/(Decrease) in Cash & Cash Equivalents	39,872.82	(23,980.22)
Closing Cash & Cash Equivalents	204,703.10	164.830.28
Components of cash and bank balances
Cash & cash equivalents
Cash In Hand	24,620.19	18,980.81
In Current Account	179,051.62	144,811.00
In Tea Development account	568.20	568.20
Other Bank Balances
In unpaid Dividend Account	463.09	470.26
In Fixed deposit with Nationalised Banks	-	-
Total Cash and Bank Balances	204,703.10	164,830,28

as ₹ in ‘00:

1. Operating Activities

The Company reported a net cash outflow from operating activities of ₹12,915.38 (‘00) in FY 2025, as against a strong inflow of ₹273,698.02 (‘00) in FY 2024.

Net profit before tax stood at ₹152,434.97 (‘00), higher than the previous year. However, after adjusting for significant non-operating items, operating performance weakened:

• A substantial profit on sale of investments (₹467,061.43 (‘00)) reduced operating profit.

• High finance costs (₹178,964.67 (‘00)) and depreciation (₹110,780.63 (‘00)) impacted earnings.

As a result, operating profit before working capital changes turned negative at ₹81,821.59 (‘00).

Working capital movements showed mixed trends:

• Increase in inventories (₹61,790.64 (‘00)) and trade receivables (₹31,717.12 (‘00)) led to cash outflows.

• This was partially offset by a significant increase in trade payables and current liabilities (₹209,195.80 (‘00)), supporting liquidity.

After generating cash from operations of ₹26,342.89 (‘00) and accounting for tax payments of ₹39,258.27 (‘00), the Company reported a net operating cash outflow.

Overall Interpretation:
Despite higher accounting profits, the Company experienced negative operating cash flows, primarily due to large non-operating gains, high finance costs, and adverse working capital movements, indicating weak core cash generation during the year.

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2. Investing Activities

The Company reported a net cash outflow of ₹111,338.23 (‘00) from investing activities, compared to a higher outflow of ₹300,299.64 (‘00) in FY 2024.

Key components include:

• Purchase of investments (₹1,115,950.18 (‘00)), partially offset by

• Sale of investments (₹1,195,736.70 (‘00)), indicating active portfolio management.

• Capital expenditure of ₹228,424.75 (‘00) on fixed assets.

• Proceeds from sale of fixed assets (₹37,300.00 (‘00)).

Overall Interpretation:
Investing activities reflect significant deployment of funds into investments and fixed assets, though partially balanced by disposals. The continued net outflow indicates ongoing investment and expansion strategy.

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3. Financing Activities

The Company recorded a net cash inflow of ₹164,126.44 (‘00) from financing activities, compared to a marginal inflow in the previous year.

This was driven by:

• Increase in short-term borrowings (₹323,073.90 (‘00)), providing major liquidity support.

• Repayment of long-term borrowings (₹37,896.05 (‘00)).

• High interest payments (₹178,964.67 (‘00)), partially offset by interest income.

Overall Interpretation:
The Company has relied significantly on short-term borrowings to support its cash requirements, particularly in light of negative operating cash flows and ongoing investments.

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4. Net Cash Movement & Liquidity Position

• Net increase in cash and cash equivalents: ₹39,872.83 (‘00) in FY 2025, compared to a decrease in the previous year

• Closing cash balance: ₹204,703.10 (‘00), up from ₹164,830.28 (‘00)

Overall Interpretation:
Despite negative operating and investing cash flows, the Company achieved a net increase in cash position, primarily supported by financing inflows. Liquidity remains adequate, though dependent on borrowings.

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Conclusion

Amarawati Tea Company Limited reported improved profitability during FY 2025, but this did not translate into operating cash flows due to significant non-operating gains and working capital pressures. The Company continues to invest actively, resulting in cash outflows from investing activities, which are being funded through increased short-term borrowings.

While the liquidity position remains stable, the Company’s dependence on external financing and weak operating cash generation highlight the need for improved core operational efficiency and working capital management going forward.

Financial Ratios Of AMARAWATI TEA COMPANY LIMITED

Ratio-wise analysis of the key financial and operational metrics of Amarawati Tea Company Limited:

Ratio-wise analysis of the key financial and operational metrics of Amarawati Tea Company Limited:

1. Liquidity Ratio

1.Current Ratio: 0.87 (FY 2025) vs 1.07 (FY 2024)

The current ratio has declined below 1, indicating that the Company’s current liabilities exceed its current assets, reflecting tight short-term liquidity conditions. This suggests increased reliance on external funding or working capital support to meet immediate obligations.

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2. Leverage Ratios

2.Debt-Equity Ratio: 0.06 vs 0.08

The debt-equity ratio has improved, indicating a reduction in financial leverage. The Company maintains a low-debt capital structure, which reduces financial risk and enhances long-term solvency.

3.Debt Service Coverage Ratio (DSCR): 3.27 vs 2.80

The DSCR has strengthened further, reflecting the Company’s strong ability to service its debt obligations through operating earnings. This indicates improved financial stability despite liquidity pressures.

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3. Profitability Ratios

4.Return on Equity (ROE): 5.71% vs 4.35%

The improvement in ROE indicates enhanced returns to shareholders, driven by better profitability during the year. However, the ratio remains moderate, suggesting scope for further improvement.

5.Net Profit Margin: 1.90% vs 1.39%

The increase in net profit margin reflects improved cost efficiency and operational performance, though margins remain relatively thin, which is typical for commodity-based industries like tea.

6.Return on Capital Employed (ROCE): 15.52% vs 13.43%

The rise in ROCE indicates better utilization of capital employed, demonstrating improved operational efficiency and profitability.

7.Return on Investment (ROI): 0.72 vs 0.44

The significant improvement in ROI reflects enhanced returns from investments, aligning with strong investment-related income observed in cash flows.

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4. Efficiency Ratios

8.Inventory Turnover Ratio: 39.29 vs 39.15

The inventory turnover ratio remains stable at a high level, indicating efficient inventory management and quick stock movement, which is positive for operational efficiency.

9.Trade Receivables Turnover Ratio: 9.87 vs 10.60

The slight decline suggests longer collection periods, indicating a marginal slowdown in receivables realization, which may impact liquidity.

10.Trade Payables Turnover Ratio: 11.57 vs 12.63

The decrease indicates that the Company is taking relatively longer to pay its suppliers, which may be a deliberate working capital strategy to manage liquidity.

11.Net Capital Turnover Ratio: (75.52) vs 20.85

The sharp decline into negative territory reflects significant inefficiency in utilizing working capital, likely due to negative working capital position or imbalance in current assets and liabilities.

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Overall Interpretation

Amarawati Tea Company Limited demonstrates improvement in profitability and capital efficiency, as reflected in ROE, ROCE, and net profit margins. The Company also maintains a low-leverage position with strong debt servicing capability, indicating financial stability.

However, certain concerns remain:

• Weak liquidity position, with current ratio below 1.

• Deterioration in working capital efficiency, as reflected in net capital turnover.

• Slight slowdown in receivables collection, impacting cash flows.

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Conclusion

The Company is showing positive momentum in profitability and operational efficiency, supported by strong returns on capital and investments. However, liquidity constraints and working capital inefficiencies need to be addressed to ensure sustainable growth and financial stability going forward.

Particulars	2024-25	2023-24
Curent Ratio	0.87	1.07
Debt Equity Ratio	0.06	0.08
Debt Service Coverage Ratio	3.27	2.80
Retum on Equity %	5.71%	4.35%
Inventory Turnover Ratio	39.29	39.15
Trade Receivables Turnover Ratio	9.87	10.60
Trade Payable Turnover Ratio	11.57	12.63
Net capital Turnover Ratio	(75.52)	20.85
Net Profit %	1.90%	1.39%
Return on Capital Employed %	15.52%	13.43%
Return on Investsent	0.72	0.44