Atlantic Commercial Annual Reports, Balance Sheet and Financials

Atlantic Commercial Company Limited Standalone Balance Sheet (Rs in Hundreds)

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

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

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

During FY 2024–25, the company’s Profit Before Tax declined significantly to ₹12,030.84 hundred from ₹1,46,876.29 hundred in the previous year, mainly because FY 2023–24 included exceptional gains while FY 2024–25 reflected normal business performance. After adjusting for non-cash and non-operating items, operating cash flow before working capital changes turned negative at ₹2,044.60 hundred due to lower earnings and deduction of dividend and interest income classified under investing activities. Working capital changes provided some support through reduction in other current assets and increase in current liabilities. Consequently, cash generated from operations was ₹1,642.57 hundred, but after income tax payments of ₹8,315.55 hundred, net cash flow from operating activities resulted in an outflow of ₹6,672.98 hundred, which was lower than the previous year’s outflow of ₹13,554.70 hundred.

Cash Flow from Investing Activities

During FY 2024–25, investing activities led to a significant cash outflow mainly due to the purchase of investment property worth ₹50,951.13 hundred. Although the company earned inflows from dividend income and interest on bank deposits and REC bonds, these were insufficient to offset the large investment made during the year. Unlike FY 2023–24, there were no proceeds from sale of investment property or share buyback, which had previously boosted liquidity. As a result, net cash used in investing activities stood at ₹32,787.56 hundred compared to a positive inflow of ₹26,304.13 hundred in the previous year, reflecting a shift from asset monetization to reinvestment and expansion.

Cash Flow from Financing Activities

The company reported no financing activities during either FY 2024–25 or FY 2023–24. This indicates that the company neither raised nor repaid borrowings, issued shares, nor paid dividends through financing channels during the reported periods. The absence of financing cash flows suggests that operations and investments were managed primarily through internal accruals and existing cash reserves.

Net Change in Cash Position

Overall, the company recorded a net decrease in cash and cash equivalents of ₹39,460.54 hundred during FY 2024–25, compared with a net increase of ₹12,749.43 hundred in FY 2023–24. The decline was mainly driven by heavy investment in investment properties along with negative operating cash flow.

The opening cash and cash equivalents balance of ₹64,082.61 hundred reduced to ₹24,622.07 hundred at year-end. Despite the reduction, the company still maintained a positive cash balance, indicating adequate liquidity, though substantially lower than the previous year.

Financial ratios of Atlantic Commercial Company Limited:

Summary of the Ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined sharply from 17.97 times in FY 2023–24 to 4.21 times in FY 2024–25. Despite the decline, the ratio remains well above the standard benchmark of 1, indicating that the company still has sufficient current assets to meet its short-term liabilities. The reduction may be due to lower cash balances or increased current liabilities during the year.

Return on Equity

The Return on Equity ratio decreased significantly from 37.79% to 1.42%. This indicates that the company generated much lower returns for shareholders during FY 2024–25. The sharp fall mainly reflects lower profitability compared to the previous year, which had exceptionally high earnings.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio declined from 0.07 times to 0.05 times. This shows reduced efficiency in utilizing working capital to generate revenue. The lower ratio suggests slower business activity or underutilization of capital during the year.

Net Profit Ratio

The Net Profit Ratio reduced drastically from 3,163.00% to 284.08%. Although the ratio remains positive, the decline indicates that the company earned substantially lower profit margins compared to the previous year. FY 2023–24 likely included exceptional gains which boosted profitability significantly.

Return on Capital Employed

ROCE fell from 43.87% to 3.00%, showing a considerable reduction in the company’s efficiency in generating profits from total capital employed. The decline reflects lower operating earnings and weaker overall business performance during FY 2024–25.

Return on Investments

The Return on Investments ratio also declined sharply from 43.11% to 2.96%. This indicates that returns generated from the company’s investments were much lower during the year, mainly due to reduced income from investment-related activities.