C2C Advanced Balance Sheet and Financials

C2C Advanced Balance Sheet (in Thousands of Rs)

 C2C Advanced Profit & Loss Statement (in Thousands of Rs)

 C2C Advanced Consolidated Cash Flow Statement (in Thousands of Rs)

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Cash Flow from Operating Activities:

Profit Before Tax:

The company reported a significant profit before tax of 31,181 in 2023, a notable turnaround from a loss of (26,354) in 2022. This improvement indicates a strong recovery in operational performance.

Depreciation & Amortization:

Depreciation and amortization increased to 3,418 in 2023 from 2,225 in 2022. This increase reflects additional depreciation and amortization costs, likely due to new or expanded assets.

Finance Cost:

Finance costs decreased significantly to 150 from 626. This reduction indicates a decrease in interest expenses or borrowing costs.

Operating Profit/(Loss) Before Working Capital Changes:

Operating profit before changes in working capital improved substantially to 34,749 in 2023, contrasting sharply with a loss of (23,503) in 2022. This reflects better core operational performance and cash flow management.

2. Movement in Working Capital:

Decrease/(Increase) in Trade Receivables:

The substantial increase in trade receivables in 2023 indicates a significant rise in outstanding invoices or delayed collections, negatively impacting cash flow.

Decrease/(Increase) in Short Term Loans and Advances:

A decrease in short-term loans and advances suggests a reduction in short-term financing needs or increased repayment of advances, which positively affects cash flow.

Decrease/(Increase) in Inventories:

An increase in inventories in 2023 indicates more stock was held compared to the previous year, potentially leading to cash flow constraints.

Decrease/(Increase) in Other Current Assets:

A significant increase in other current assets suggests a rise in asset investments or an increase in prepayments, which consumes cash.

Decrease/(Increase) in Trade Payables:

A decrease in trade payables indicates that the company paid off some of its outstanding obligations, which is a cash outflow.

Decrease/(Increase) in Other Current Liabilities:

An increase in other current liabilities reflects additional short-term financial obligations or deferred expenses, positively impacting cash flow.

Net Cash Flow from Operating Activities:

Despite a positive operating profit, the net cash flow from operating activities in 2023 was negative at (16,612), though this represents an improvement over the larger negative cash flow of (41,045) in 2022. This indicates that while operational performance improved, working capital changes still led to negative cash flow.

3. Cash Flow from Investing Activities:

Capital Expenditure on Fixed Assets, Including Capital Advances:

Capital expenditure on fixed assets was relatively minor in 2023, reflecting limited investment in new property, plant, or equipment.

Capital Expenditure on Intangibles:

The significant expenditure on intangible assets in 2023 suggests substantial investments in items such as software or intellectual property.

Payment of Security Deposit:

The payment of security deposits decreased, indicating a reduced need for such deposits or refunds.

Net Cash Flow from Investing Activities:

The net cash flow from investing activities in 2023 was a substantial outflow of (32,211), compared to a smaller outflow of (739) in 2022. This reflects increased capital and investment spending.

4. Cash Flow from Financing Activities:

Proceeds from Long-Term Borrowings:

There was a significant increase in proceeds from long-term borrowings in 2023, indicating higher financing needs or new debt issuance.

Proceeds from Short-Term Borrowings:

No new short-term borrowings in 2023, contrasting with the inflows in 2022.

Issue of Equity Shares:

The company issued equity shares, raising 9,999, which provides new capital but also dilutes existing ownership.

Repayment of Short-Term Borrowings:

Repayment of short-term borrowings in 2023 indicates reduced reliance on short-term debt.

Finance Cost:

Finance costs decreased, reflecting reduced interest expenses.

Net Cash Flow from Financing Activities:

The net cash flow from financing activities was positive and increased to 48,466 in 2023 from 41,220 in 2022. This improvement reflects higher borrowing and equity issuance.

5. Net Increase/(Decrease) in Cash and Cash Equivalents:

The net decrease in cash and cash equivalents in 2023 was (356), showing an improvement over the decrease of (663) in 2022.

Cash and Cash Equivalents at Beginning of the Year:

The beginning cash balance was 371 in 2023, down from 1,035 in 2022, indicating a lower starting liquidity position.

Cash and Cash Equivalents at End of the Year:

Cash and cash equivalents decreased significantly to 15 at the end of 2023 from 371 at the end of 2022. This sharp reduction highlights a considerable decline in available liquidity.