Atlantic Commercial Annual Reports, Balance Sheet and Financials

Atlantic Commercial Company Limited Balance Sheet (Rs in Hundreds)

 Atlantic Commercial Company Limited Profit & Loss Statement (Rs in Hundreds)

 Atlantic Commercial Company Limited Consolidated Cash Flow Statement (Rs in Hundreds) 

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

Cash Flow from Operating Activities:

The company’s operating activities begin with a profit before tax of ₹1,46,876.29 hundred in 2024, compared to ₹1,98,905.01 hundred in 2023. A series of non-cash adjustments are then applied to the profit before tax to reconcile it with cash generated from operations. Key adjustments include depreciation of ₹3,479.20 hundred, which is a non-cash expense, and the rental income of ₹598.65 hundred recorded in line with Ind AS, which reduces the cash inflow. Notably, the company recorded a profit on the buyback of shares of ₹8,036 hundred and profit on the sale of investment property amounting to ₹1,35,867.21 hundred, which were also deducted from the operating cash flow as these are non-operating gains.

After accounting for these adjustments, the operating cash flow before working capital changes comes to ₹4,805.50 hundred in 2024, significantly lower than ₹1,99,153.74 hundred in 2023. This decrease reflects lower profitability and one-time gains on asset sales.

Changes in working capital further influence cash flow. The increase in other current assets of ₹587.20 hundred and the decrease in other current liabilities by ₹339.79 hundred reduce cash flow, while trade receivables decreased by ₹105 hundred, providing a minor cash inflow. After incorporating these changes, cash used in operations stands at ₹3,983.51 hundred in 2024, compared to ₹2,09,142.77 hundred in the previous year, indicating a decrease in overall cash flow from operations.

The company paid ₹17,538.21 hundred in taxes, leading to a net cash outflow from operating activities of ₹13,554.70 hundred in 2024. This contrasts with the positive cash inflow of ₹1,57,988.29 hundred in 2023, which was driven by stronger profitability and less tax outflow.

Cash Flow from Investing Activities:

Investing activities in 2024 generated positive cash flow primarily due to the sale of investment property for ₹2,00,000 hundred, a significant one-time cash inflow. On the other hand, the company also invested in the purchase of investment property worth ₹1,34,420 hundred and bonds amounting to ₹50,000 hundred, leading to substantial cash outflows.

Other inflows include interest received on bank deposits of ₹1,048.13 hundred and ₹9,676 hundred from the buyback of shares. As a result, net cash generated from investing activities amounted to ₹26,304.13 hundred in 2024, marking a stark contrast to the net outflow of ₹1,08,722.62 hundred in 2023. The sharp improvement in 2024 is primarily due to the proceeds from the sale of investment property, which offset the cash outflows related to new investments.

Net Cash Flows During the Year:

Overall, the company experienced a net increase in cash and cash equivalents of ₹12,749.43 hundred during 2024, which is significantly lower than the ₹49,265.67 hundred increase in 2023. Despite the positive cash flows from investing activities, the overall increase is smaller due to the substantial operating cash outflow during the year.

Cash and Cash Equivalents at the Beginning and End of the Year:

At the beginning of the year, the company had ₹51,333.18 hundred in cash and cash equivalents, which increased to ₹64,082.61 hundred by the end of the year. The increase in the cash balance is primarily driven by the net inflow from investing activities, although this was partially offset by negative cash flow from operations.

Financial Ratios of Atlantic Commercial Company Limited

Here is a summary of the financial and operational metrics for Atlantic Commercial Company Limited for the year 2024 and 2023:

Current Ratio

The Current Ratio measures a company 's ability to cover its short-term liabilities with its short-term assets. In 2024, the current ratio was 17.97, up from 14.07 in 2023. A higher current ratio indicates that the company is in a strong liquidity position, with enough assets to comfortably meet its short-term obligations.

Return on Equity (ROE)

The Return on Equity (ROE) shows how effectively a company is using shareholders ' equity to generate profits. In 2024, the ROE was 37.79%, which is significantly lower than the 75.43% achieved in 2023.

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio measures how efficiently a company collects revenue from its credit sales. In 2024, the ratio was 2,924.87, down from 4,013.62 in 2023. This decline could indicate a slower collection period or an increase in credit sales without a corresponding increase in collections.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio reflects the company’s efficiency in using its working capital to generate revenue. In 2024, the ratio was 2.64, a decrease from 3.28 in 2023.

Net Profit Ratio

The Net Profit Ratio measures how much of each rupee of revenue translates into profit. In 2024, the net profit ratio was 82.39%, compared to 70.65% in 2023.

Return on Capital Employed (ROCE)

The Return on Capital Employed (ROCE) gauges the company’s efficiency in using its capital to generate profits. In 2024, the ROCE was 43.87%, significantly lower than the 100.78% recorded in 2023.

Return on Investment (ROI)

The Return on Investment (ROI) shows the profitability of investments made by the company. In 2024, the ROI was 43.11%, down from 98.47% in 2023.