Arthmatetech Annual Report, Balance Sheet & Revenue

Arthmatetech Private Limited Balance Sheet (Rs in Crores)

Arthmatetech Private Limited Profit & Loss Statement (Rs in Crores)

 Arthmatetech Private Limited Consolidated Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities:

Profit / (Loss) before Tax: The starting point for cash flow from operating activities is the profit before tax, which stands at 12.57. This figure represents the company 's earnings before accounting for income tax expenses.

Adjustments for:

Depreciation and Amortization Expenses: Depreciation and amortization add back 1.18. These non-cash charges are added back to profit because they do not involve actual cash outflows.

Provisions for Standard Assets & Impairment: Provisions amounting to 0.99 are added back. These are also non-cash adjustments made for anticipated losses.

Gratuity Expenses: The gratuity expenses of 0.26 are added back as these are non-cash provisions.

Liabilities Written Off: Liabilities amounting to -2.53 are subtracted. This reflects amounts previously recognized as liabilities but written off in the current period.

Interest Income: The interest income of -0.11 is subtracted. This is deducted because it is part of cash inflow from investing activities, not operating activities.

Interest & Finance Charges: These are added back as they are cash expenses related to financing activities, totalling 33.01.

Operating Profit before Working Capital Changes: This gives a total of 45.37, showing the profit from operations before changes in working capital.

Changes in Working Capital:

Increase / (Decrease) in Trade Payables and Other Liabilities: An increase of 30.89 indicates more cash inflow as the company delays payments to suppliers or other creditors.

Increase / (Decrease) in Trade Receivables: A decrease of -22.07 indicates less cash inflow as more money is tied up in receivables.

Increase / (Decrease) in Loans and Advances and Other Assets: A significant decrease of -101.27 represents cash outflows for loans and advances, and other asset purchases.

Direct Taxes Paid (Net of Refunds): The net cash outflow for taxes is -3.03.

Net Cash Generated / (Used) from Operating Activities: After all adjustments and changes in working capital, the net cash flow from operating activities is -50.11, indicating a cash outflow.

Cash Flow from Investing Activities:

Purchase of Fixed Assets, Including Capital Work-in-Progress and Capital Advances: This results in a cash outflow of -33.67 for acquiring or investing in fixed assets.

Investment in Fixed Deposit (Net): A small outflow of -0.05 is recorded for fixed deposits.

Interest Received: Interest income received amounts to 0.11.

Net Cash Used in Investing Activities: Summarizing these activities, the net cash outflow for investing activities is -33.61.

Cash Flow from Financing Activities:

Issue of Equity Share Capital: There is an inflow of 5.63 from issuing new equity shares.

Proceeds from Long-Term Borrowings (Net): The company raises 30.91 in long-term borrowings.

Interest & Finance Charges Paid: Outflows amount to -28.59 related to finance charges.

Net Cash Used in Financing Activities: After accounting for inflows and outflows, the net cash inflow from financing activities is 7.95.

Net Increase / (Decrease) in Cash and Cash Equivalents:

The overall cash position decreases by -75.77, reflecting the net effect of all operating, investing, and financing activities.

Cash and Cash Equivalents at the Beginning of the Year:

Starting cash balance is 90.75.

Less: Consolidated Adjustment of Transfer to Reserve:

An adjustment of -5.55 is made, possibly for reserve or consolidation purposes.

Cash and Cash Equivalents at the End of the Year:

The ending cash balance stands at 9.43, which is a significant reduction from the beginning balance.

Financial Ratios of Arthmatetech Private Limited

Here is a summary of the financial and operational metrics for Arthmatetech Private Limited for the year 2023 and 2022:

Current Ratio:

2023: 1.21

2022: 1.02

Insight: The current ratio has improved from 1.02 to 1.21, indicating better short-term liquidity. This means the company has more current assets relative to its current liabilities in 2023, which suggests an improved ability to meet short-term obligations.

Debt to Equity Ratio:

2023: 4.23

2022: 25.47

Insight: The drastic reduction in the debt-to-equity ratio from 25.47 to 4.23 is highly positive. This indicates that the company has significantly reduced its reliance on debt financing relative to equity. A lower ratio suggests improved financial stability and lower financial risk.

Debt Service Coverage Ratio (DSCR):

2023: 0.32

2022: 0.05

Insight: The DSCR has improved but remains quite low at 0.32. This ratio measures the company’s ability to cover its debt obligations with its operating income. While the improvement from 0.05 to 0.32 is notable, it still indicates that the company is not generating sufficient cash flow to comfortably cover its debt service obligations.

Return on Equity (ROE):

2023: 0.50%

2022: Not available

Insight: The ROE for 2023 is 0.50%. This is a measure of profitability relative to shareholders ' equity. Since there 's no data for 2022, it 's challenging to compare, but a positive ROE suggests the company is generating some return on shareholders ' investment, though it is relatively low.

Trade Receivables Turnover Ratio:

2023: 12.59

2022: Not available

Insight: This ratio measures how efficiently the company is managing its receivables. A turnover ratio of 12.59 indicates that the company collects its receivables approximately 12.6 times per year, which suggests good efficiency in collecting outstanding invoices.

Trade Payables Turnover Ratio:

2023: 5.66

2022: Not available

Insight: The ratio of 5.66 indicates that the company pays off its trade payables approximately 5.66 times per year. This reflects how quickly the company settles its supplier payments.

Net Capital Turnover Ratio:

2023: 2.24

2022: 7.00

Insight: The decline from 7.00 to 2.24 suggests that the company is generating less revenue per unit of capital employed. This could imply decreased operational efficiency or lower revenue relative to capital.

Net Profit Ratio:

2023: 0.08%

2022: 0.02%

Insight: The net profit ratio has improved from 0.02% to 0.08%, indicating a slight increase in profitability. However, the ratio remains very low, suggesting that profit margins are thin.

Return on Capital Employed (ROCE):

2023: 0.36%

2022: 0.05%

Insight: The ROCE has improved from 0.05% to 0.36%, showing better efficiency in generating profits from capital employed. Although the increase is significant, the overall return remains low, which may indicate that the company is still not utilizing its capital effectively.