Assam Carbon Annual Reports, Balance Sheet and Financials

Assam Carbon Products Limited Balance Sheet (Rs in Thousands)

 Assam Carbon Products Limited Profit & Loss Statement (Rs in Thousands)

 Assam Carbon Products Limited Consolidated Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities:
The company’s profit before tax increased to ₹1,15,506 million from ₹95,385 million in the previous year, indicating robust growth in pre-tax earnings. Adjustments for non-cash items and other financial activities include depreciation and amortization of ₹11,635 million, which is slightly up from ₹11,554 million. There were adjustments for advances written off, which were not present in 2024 but totaled ₹2,041 million in 2023. The company also recorded finance costs of ₹1,012 million, down from ₹1,107 million, and interest income of ₹-3,079 million, compared to ₹-2,187 million previously. Dividend income and other adjustments contributed to the operating cash flow changes.

Operating cash flow before working capital changes surged to ₹1,19,539 million from ₹97,843 million. Changes in working capital were significant, with a notable increase in trade receivables, loans, and advances reducing cash by ₹-31,722 million, while inventories increased by ₹16,305 million. Trade payables, provisions, and other liabilities saw a reduction in cash outflow by ₹2,218 million. After accounting for direct taxes paid of ₹-39,657 million, net cash provided by operating activities increased markedly to ₹66,683 million from ₹17,874 million, reflecting improved operational efficiency and cash generation.

Cash Flow from Investing Activities:
Investing activities showed a net outflow of ₹-4,803 million, compared to ₹-11,154 million in the previous year, indicating a reduction in net cash used in investments. Major cash flows included purchases of fixed assets amounting to ₹-6,279 million and deferred government grants of ₹-13,911 million received in 2023 but not in 2024. Proceeds from the disposal of fixed assets amounted to ₹599 million, and interest received totaled ₹3,079 million, up from ₹2,187 million. Investment activities saw minimal activity with a ₹2 million investment in mutual funds, compared to a significant ₹-29,998 million in the previous year. The sale of mutual funds, which was not present this year, contributed ₹10,040 million in the previous year. The net cash used in investing activities, therefore, reflects a significant decrease, indicating less intensive investment outflows.

Cash Flow from Financing Activities:
Financing activities showed a net outflow of ₹-11,986 million, an increase from ₹-4,471 million in 2023. This outflow was driven by borrowings totaling ₹-5,463 million, finance costs paid of ₹-1,012 million, and dividend payments of ₹-5,511 million, which were not made in the previous year. The increase in net cash used in financing activities reflects higher outflows related to financing decisions and returns to shareholders.

Net Increase in Cash and Cash Equivalents:
The net increase in cash and cash equivalents was substantial at ₹49,894 million, compared to a modest increase of ₹2,249 million in the prior year. The closing cash and cash equivalents balance at ₹64,520 million significantly exceeded the previous year 's ₹14,626 million. This increase was primarily due to strong operational cash flow and improvements in cash management. The cash and cash equivalents at year-end comprised cash on hand of ₹150 million and balances with banks in current accounts totaling ₹64,370 million, indicating a solid liquidity position.

 Financial Ratios of Assam Carbon Products Limited

Here is a summary of the financial and operational metrics for Assam Carbon Products Limited for the year 2024 and 2023:

Current Ratio: The current ratio increased to 4.57 in 2024 from 3.46 in 2023. This improvement indicates a stronger ability to cover short-term liabilities with short-term assets, reflecting enhanced liquidity and a better cushion against financial uncertainties. A higher current ratio suggests that the company is in a robust position to manage its current obligations.

Debt-Equity Ratio: The debt-equity ratio decreased to 0.02 from 0.04, highlighting a significant reduction in financial leverage. This low ratio signifies that the company relies minimally on debt to finance its operations, which reduces financial risk and indicates a conservative approach to debt management.

Debt Service Coverage Ratio (DSCR): The DSCR increased to 126.63 from 97.6, showcasing a substantial improvement in the company’s ability to service its debt from its operational income. A DSCR above 100% indicates that the company generates sufficient cash flow to cover its debt obligations, signaling strong financial health and stability.

Return on Equity (ROE): ROE improved to 17.83% from 16.64%, reflecting a higher return on shareholders ' equity. This increase indicates that the company is effectively using shareholders ' funds to generate profits, demonstrating improved efficiency in utilizing equity capital.

Inventory Turnover Ratio: The inventory turnover ratio rose to 4.11 from 3.5, suggesting that the company is more efficient in managing and selling its inventory. A higher turnover ratio indicates better inventory management and faster sales, which can lead to improved liquidity and reduced holding costs.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio slightly decreased to 4.16 from 4.18. Although this is a minor decline, it indicates that the company’s efficiency in collecting receivables has slightly reduced. The company may be experiencing longer collection periods, but the change is relatively small and does not significantly impact cash flow.

Trade Payables Turnover Ratio: The ratio increased marginally to 5.37 from 5.27. This suggests a slight improvement in the company’s management of trade payables. It implies that the company is paying its suppliers a bit more quickly, which could reflect better supplier relationships or improved cash management.

Net Capital Turnover Ratio: The net capital turnover ratio decreased to 1.6 from 1.76, indicating a slight reduction in the efficiency of using capital to generate sales. This reduction suggests that while capital is still being used effectively, there may be a need for more efficient capital deployment to sustain growth.

Net Profit Ratio: The net profit ratio increased to 13.13% from 11.54%, demonstrating an improvement in profitability relative to sales. This indicates that the company has become more effective at converting revenue into actual profit, reflecting better cost control and operational efficiency.

Return on Capital Employed (ROCE): ROCE improved to 22.8% from 21.91%, showing enhanced profitability in relation to the capital employed. This increase highlights the company’s efficient use of capital to generate earnings, reflecting strong operational performance and effective capital management.

 FAQ Related to Assam carbon products limited

Q.1 Do Assam Carbon Products Limited is listed or not?

Assam carbon products limited is unlisted company.

Q.2 Is Assam Carbon Products Limited is profitable?

There is not much increase in the profit of company compared to past year.

Q.3 What is the main Work of Assam Carbon Products Limited?

The main work of assam carbon products limited is manufacturing and supplying of carbon blocks, brush and mechanical and special carbon components