ASEL Financial Annual Reports, Balance Sheet and Financials

ASEL Financial Services Limited Balance Sheet (Rs in Lakhs)

ASEL Financial Services Limited Profit & Loss Statement (Rs in Lakhs)

ASEL Financial Services Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

The company reported a net profit after tax of ₹71.70 lakhs in 2024, a significant decline from ₹645.93 lakhs in 2023. After adjustments for non-cash items such as depreciation (₹71.24 lakhs) and financial charges (₹157.08 lakhs), the operating profit before working capital changes was ₹-324.37 lakhs in 2024, compared to ₹25.55 lakhs in the previous year.

Working capital adjustments had a substantial impact, resulting in large movements:

Trade and other receivables decreased by ₹4,787.55 lakhs, and trade and other payables increased by ₹8,960.32 lakhs, providing significant cash inflows.

However, loans and advances increased by ₹6,740.15 lakhs, which was a major cash outflow.

After these adjustments, the company generated ₹6,683.34 lakhs from operations in 2024, compared to a negative cash flow of ₹-925.61 lakhs in 2023. Following income tax payments of ₹-168.70 lakhs, the net cash from operating activities was ₹6,514.64 lakhs, a significant improvement from the negative cash flow of ₹-1,106.32 lakhs in the prior year.

Cash Flow from Investing Activities

Investing activities resulted in a net cash inflow of ₹303.12 lakhs in 2024, down from ₹453.60 lakhs in 2023. The company made additions to property, plant, and equipment (₹-166.37 lakhs) and intangible assets (₹-9.08 lakhs), representing cash outflows for investments in fixed assets. These outflows were partially offset by interest income (₹622.07 lakhs) and dividend income (₹2.31 lakhs). There were also adjustments in capital work in progress (₹6.79 lakhs), reflecting changes in ongoing projects.

Cash Flow from Financing Activities

Financing activities led to a net cash outflow of ₹-1,231.62 lakhs in 2024, a reversal from the inflow of ₹1,777.13 lakhs in 2023. The company faced outflows due to finance expenses (₹-157.08 lakhs) and a reduction in short-term borrowings (₹-1,074.54 lakhs), signaling repayments or reductions in debt financing.

Net Increase in Cash and Cash Equivalents

Despite outflows in financing and investing activities, the strong performance in operating activities led to a net increase in cash and cash equivalents of ₹5,586.14 lakhs in 2024, compared to ₹1,124.41 lakhs in 2023. The company started the year with ₹6,961.81 lakhs in cash and ended with ₹12,547.95 lakhs, reflecting a substantial increase in liquidity by the end of the year.

Financial Ratios of ASEL Financial Services Limited 

 Here is a summary of the financial and operational metrics for ASEL Financial Services Limited   for the year 2024 and 2023:

Current Ratio (in times)

The current ratio measures the company 's ability to cover its short-term liabilities with its current assets. In 2023-24, the ratio surged to 19.04 from 4.47 in 2022-23, indicating a significant increase in liquidity. This suggests the company now has far more current assets relative to its short-term obligations, reflecting a much stronger ability to meet its short-term debts. However, a very high current ratio could also mean that the company is not utilizing its assets efficiently.

Debt-Equity Ratio (in times)

The debt-equity ratio assesses the proportion of debt to equity in the company’s capital structure. The ratio fell to 0 in 2023-24 from 0.15 in 2022-23, meaning the company has no outstanding debt. This indicates a completely equity-financed business, eliminating financial risk associated with debt, but it may also suggest missed opportunities for leveraging growth through borrowing.

Debt Service Coverage Ratio (in times)

The debt service coverage ratio (DSCR) measures the company’s ability to cover its debt obligations with operating income. The ratio improved dramatically from 0.24 in 2022-23 to 3 in 2023-24. A DSCR above 1 means the company is generating sufficient earnings to cover its debt payments, indicating a substantial improvement in its ability to service debt.

Return on Equity Ratio (in %)

ROE measures the profitability of the company relative to shareholders ' equity. In 2023-24, the ROE was 0.02%, slightly lower than 0.03% in 2022-23. This low percentage indicates that the company is generating very little profit for its shareholders, reflecting a need for improved profitability and better utilization of equity.

Trade Receivables Turnover Ratio (in times)

This ratio shows how efficiently the company collects payments from its customers. The turnover ratio increased significantly to 18.15 in 2023-24 from 6.68 in 2022-23, indicating faster collection of receivables and better management of customer credit. This improvement suggests healthier cash flow and better receivables management.

Net Capital Turnover Ratio (in times)

This ratio measures how effectively the company utilizes its working capital to generate revenue. The ratio increased to 0.07 in 2023-24 from 0.03 in 2022-23, indicating a marginal improvement in the efficiency of using working capital to support sales. Although this is an improvement, the ratio remains low, suggesting there is still room to optimize the use of working capital.

Net Profit Ratio (in %)

The net profit ratio reflects the percentage of revenue that turns into net profit. In 2023-24, the ratio fell to 0.36% from 1.39% in 2022-23, indicating a decline in profitability. The company is retaining a smaller portion of its revenue as profit, which could be due to higher costs or lower margins.

Return on Capital Employed (ROCE) (in %)

ROCE measures how efficiently the company uses its capital to generate profit. The ratio remained flat at 0.03% in both 2023-24 and 2022-23, indicating that the company’s ability to generate returns from its capital employed has not improved. This low ratio signals inefficiency in utilizing capital resources to drive profitability.

Return on Investments (ROI) (in %)

ROI assesses the return generated on investments. Similar to ROE and ROCE, the ROI was low, declining slightly to 0.02% in 2023-24 from 0.03% in 2022-23. This indicates the company is generating very modest returns from its investments, reflecting a need to reassess its investment strategies for higher returns.