Associated Ceramics Annual Reports, Balance Sheet and Financials

Associated Ceramics Limited Balance Sheet (Rs In Lakhs)

 Associated Ceramics Limited Profit & Loss Statement (Rs In Lakhs)

 Associated Ceramics Limited Consolidated Cash Flow Statement (Rs In Lakhs)

 Certainly, here is a summary of the Cash Flow Statement for the years 2023 and 2022:

CASH FLOW FROM OPERATING ACTIVITIES:

This section starts with the "Net Profit before Tax & Extraordinary items," which is the profit generated from the company 's core operating activities before accounting for taxes and extraordinary items. In 2023, the net profit before tax and extraordinary items was 596.31 Rs, which was an increase from 537.06 Rs in 2022.

Next, there are various adjustments made to calculate the operating cash flow:

Exceptional items: These are one-time or unusual income or expenses that are not part of the regular operating activities. In 2023, there were exceptional items worth 20.72 Rs, while in 2022, there was a negative figure of -2.7 Rs, indicating an improvement in this regard in 2023.

Loss in fair value of investment: In 2023, there was a loss of 14.35 Rs in the fair value of investments. This was not provided for 2022.

Foreign Exchange Fluctuation Gain: In 2023, there was a foreign exchange fluctuation gain of -7.92 Rs. This was not provided for 2022.

Liabilities Written off: In 2023, there was a minor amount of liabilities written off, which was -0.2 Rs. This was not provided for 2022.

Depreciation: This represents the non-cash expense related to the depreciation of assets. In 2023, depreciation amounted to 156.75 Rs, which was higher than the 99.18 Rs in 2022.

Interest Expense: This is the cost of borrowing. In 2023, the interest expense was 33.93 Rs, significantly higher than the 9.4 Rs in 2022.

Interest on Income Tax: In 2023, there was an interest cost of 4.31 Rs on income tax, which was not provided for in 2022.

Interest Income: This is income generated from interest on investments or cash. In 2023, the company had a minor interest income of -2.22 Rs, while in 2022, it was -3.27 Rs.

Allowance for credit losses: In 2023, the company reduced its allowance for credit losses by -25.33 Rs, indicating an improvement in credit quality. In 2022, there was an allowance of 22.08 Rs.

Changes in fair value of financial assets carried at fair value through profit and loss: This represents the changes in the value of assets carried at fair value. In 2023, it was not provided, while in 2022, there was a negative change of -31.86 Rs.

After making these adjustments, we arrive at the "Operating Profit before working capital changes." In 2023, this figure was 789.7 Rs, an improvement from 629.18 Rs in 2022.

Next, there are changes in working capital, which includes:

(Increase)/decrease in inventories: In 2023, there was a decrease in inventories of -38.72 Rs, while in 2022, there was a larger decrease of -133.57 Rs.

(Increase)/decrease in Trade Receivables: In 2023, there was a decrease in trade receivables of -47.24 Rs, while in 2022, there was an increase of 456.78 Rs.

(Increase)/decrease in other financial assets, other current assets: In 2023, there was an increase of 3.12 Rs, and in 2022, there was an increase of 73.04 Rs.

(Increase)/decrease in other current assets: In 2023, there was a decrease of -1.81 Rs, and in 2022, there was a decrease of -4.92 Rs.

(Increase)/decrease in Loans: In 2023, there was a minor increase of 0.38 Rs, and in 2022, there was also a minor increase of -0.38 Rs.

-Increase/(decrease) in Trade Payables: In 2023, there was an increase in trade payables of 261.65 Rs, whereas in 2022, there was a decrease of -50.01 Rs.

Current liabilities and provisions: In 2023, there was an increase in current liabilities and provisions of 21.18 Rs, and in 2022, there was a decrease of -46.36 Rs.

Adding up all these changes in working capital, we calculate "Cash Utilized/Generated from Operation." In 2023, the company generated 198.56 Rs in cash from its operating activities, while in 2022, it generated 294.57 Rs.

After accounting for "Direct Tax Paid (Net of Refund)," which represents the net cash outflow due to tax payments, we arrive at the "Net Cash flow from/utilized in Operating Activities." In 2023, this figure was 862.4 Rs, and in 2022, it was 837.72 Rs.

CASH FLOW FROM INVESTING ACTIVITIES:

This section accounts for the cash flows related to investments and capital expenditures:

Purchase of Property, Plant, and Equipment: In 2023, the company spent -1,591.82 Rs on the purchase of property, plant, and equipment, indicating a significant investment in its physical assets. In 2022, the expenditure was -564.08 Rs.

Sale of Property, Plant, and Equipment: In 2023, the company generated 411.1 Rs from the sale of such assets, a significant increase compared to the 35.76 Rs generated in 2022.

Investment in other bank balance: In 2023, the company did not make any investment in other bank balances. In 2022, there was an investment of -9.1 Rs.

Dividend Income: In 2023, the company received 0.99 Rs as dividend income, slightly higher than the 0.7 Rs in 2022.

Interest Income: In 2023, the company generated 2.22 Rs from interest income, a minor decrease from the 3.27 Rs in 2022.

The "Net Cash flow from/used in Investing Activities" in 2023 was -1,177.51 Rs, indicating significant cash outflows due to capital expenditures and investments. In 2022, it was -533.45 Rs, which was also a significant outflow

CASH FLOW FROM FINANCING ACTIVITIES:

This section accounts for cash flows related to financing activities:

Secured Loans - Short Term Borrowings: In 2023, the company had a net repayment of -132.09 Rs for short-term secured loans, whereas in 2022, there was a net borrowing of 63.23 Rs.

Interest Expense: This is the cost of borrowing. In 2023, the interest expense was -33.93 Rs, and in 2022, it was -9.4 Rs, indicating an increase.

Below are the Financial Ratios

Here is a summary of the financial and operational metrics for Associated Ceramics Limited for the years 2023 and 2022:

1. Current Ratio (%):

2023: The current ratio in 2023 was 1.28%. This means that for every 100 Rs of current assets, the company had 128 Rs of current liabilities. It indicates a liquidity position where the company had sufficient current assets to cover its current obligations.

2022: In 2022, the current ratio was 2.22%, reflecting a more favorable liquidity position compared to 2023. The company had 222 Rs of current assets for every 100 Rs of current liabilities.

2. Debt-Equity Ratio (%):

2023: The debt-equity ratio in 2023 was 0.21%, which implies that for every 100 Rs of equity, the company had 21 Rs of debt. The increase in this ratio from 2022 suggests a higher reliance on debt financing.

2022: In 2022, the debt-equity ratio was 0.12%, indicating a lower proportion of debt in the company 's capital structure.

3. Return on Equity Ratio (%):

2023: The return on equity (ROE) in 2023 was 0.16%. This means that the company generated a return of 16% on shareholders ' equity. It indicates a profitability level relative to the equity invested.

2022: In 2022, the ROE was slightly higher at 0.2%, suggesting a slightly better performance in generating returns on shareholders ' equity.

4. Inventory Turnover Ratio (%):

2023: The inventory turnover ratio in 2023 was 0.48%, which signifies that the company 's inventory turnover rate slowed down. It implies that the company 's inventory was not converted into sales as quickly as in 2022.

2022: In 2022, the inventory turnover was 0.64%, indicating a faster inventory turnover rate.

5. Trade Receivables Turnover Ratio (%):

2023: In 2023, the trade receivables turnover ratio was 16.04%, which is a significant improvement from 9.76% in 2022. This suggests that the company collected payments from customers more efficiently in 2023.

2022: In 2022, the trade receivables turnover was lower, indicating slower collection of payments.

6. Trade Payables Turnover Ratio (%):

2023: The trade payables turnover ratio was 0.54% in 2023, indicating that the company managed its payables more efficiently and paid suppliers relatively faster compared to 0.15% in 2022.

2022: In 2022, the company had a lower turnover ratio for trade payables, suggesting a longer payment cycle to suppliers.

7. Net Capital Turnover Ratio (%):

2023: The net capital turnover ratio in 2023 was 8.49%, reflecting an improvement in capital efficiency. It indicates that the company generated more revenue relative to its invested capital.

2022: In 2022, the ratio was 4.65%, indicating a lower capital efficiency compared to 2023.

8. Net Profit Ratio (%):

2023: The net profit ratio in 2023 was 0.08%, meaning that the company retained 8% of its revenue as profit. This was slightly lower than the 0.11% net profit ratio in 2022.

2022: In 2022, the net profit ratio was higher, suggesting a higher level of profitability relative to revenue.

9. Return on Capital Employed (%):

2023: The return on capital employed (ROCE) was 0.26% in 2023, indicating a slightly improved performance compared to 0.25% in 2022. This ratio measures profitability concerning the capital employed in the business.

10. Return on Investment (%):

2023: The return on investment (ROI) was only 0.01% in 2023, which is significantly lower than the 0.28% ROI in 2022. This suggests that the return on total investment made in the company was much lower in 2023.