Calcutta Security Printers Annual Reports, Balance Sheet and Financials

Calcutta Security Printers Limited Standalone Balance Sheet (Rs in Thousands)

Calcutta Security Printers Limited Standalone Profit & Loss Statement (Rs in Thousands)

Calcutta Security Printers Limited Standalone Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities

The company reported a net loss before tax of ₹1,464.38 thousand in FY25, which is a significant improvement compared to the larger loss of ₹14,022.87 thousand in FY24. Despite losses, strong non-cash adjustments such as depreciation (₹10,413.38 thousand) and finance costs (₹5,084.77 thousand) supported operating cash flows. After adjusting for items like interest income and profit on asset sales, the operating profit before working capital changes stood at ₹13,857.72 thousand, higher than the previous year.

Working capital movements further strengthened cash generation. A reduction in receivables contributed positively, though inventory buildup and a decline in payables partially offset gains. Overall, the company generated cash flow from operations of ₹15,929.57 thousand, which remained robust compared to ₹12,661.71 thousand last year. After minor tax outflow, the net operating cash flow stood at ₹15,529.57 thousand, indicating strong operational cash generation despite accounting losses.

Cash Flow from Investing Activities

Investing activities showed a net outflow of ₹1,015.12 thousand, significantly lower than the previous year’s outflow of ₹7,635.24 thousand. The reduction in capital expenditure (₹1,993.58 thousand vs ₹8,246.62 thousand in FY24) indicates a slowdown in asset expansion or completion of prior investments. The company also generated inflows through sale of fixed assets and interest income. Overall, the investing cash flow reflects controlled capital spending and improved liquidity management compared to the previous year.

Cash Flow from Financing Activities

The company reported a net inflow of ₹2,638.22 thousand from financing activities, compared to an outflow of ₹3,674.29 thousand in FY24. This improvement is primarily due to increased borrowings (₹7,722.99 thousand), which helped offset interest payments. While reliance on debt has supported liquidity, continued borrowing may increase financial risk if profitability does not improve.

Net Change in Cash & Cash Equivalents

The company witnessed a significant increase in cash balance by ₹17,152.67 thousand, compared to a modest increase of ₹1,345.89 thousand in the previous year. This sharp rise is mainly driven by strong operating cash flows and additional financing inflows, indicating improved short-term liquidity.

Financial ratios of Calcutta Security Printers Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio:
The current ratio of the company slightly improved from 0.97 in 2024 to 0.99 in 2025. However, it remains below the ideal benchmark of 1, indicating that the company continues to face tight liquidity conditions. This suggests that current liabilities are almost equal to current assets, leaving very little margin for meeting short-term obligations comfortably.

Debt-Equity Ratio:
The debt-equity ratio increased from 1.72 to 1.96, reflecting a higher reliance on borrowed funds. This rising leverage indicates increased financial risk, as the company is becoming more dependent on external debt rather than equity financing, which may lead to higher interest burdens in the future.

Debt Service Coverage Ratio:
The DSCR improved from -0.16 to -0.05 but remains negative in both years. A negative DSCR indicates that the company is not generating sufficient operating income to cover its debt obligations. Although there is slight improvement, the company still faces serious challenges in servicing its debt.

Return on Equity:
The ROE declined sharply from a positive 14.34% in 2024 to -6.32% in 2025. This indicates that the company has moved from generating returns for shareholders to incurring losses, reflecting poor profitability and inefficient utilization of shareholders’ funds during the year.

Inventory Turnover Ratio:
The inventory turnover ratio decreased from 7.00 to 5.87, suggesting slower movement of inventory. This may indicate overstocking, weak demand, or inefficiencies in inventory management, which could increase holding costs and reduce operational efficiency.

Trade Receivables Turnover Ratio:
The receivables turnover ratio declined from 6.05 to 5.59, indicating that the company is taking longer to collect payments from customers. This deterioration in collection efficiency may impact cash flows and increase the risk of bad debts.

Trade Payables Turnover Ratio:
The trade payables turnover ratio increased from 3.00 to 4.00, implying that the company is paying its suppliers more quickly than before. While this may improve supplier relationships, it could also put pressure on liquidity if cash inflows are not strong.

Net Capital Turnover Ratio:
The net capital turnover ratio worsened significantly from -33.88 to -47.21. The negative ratio indicates inefficient utilization of working capital, possibly due to negative working capital or operational losses, reflecting poor operational efficiency.

Net Profit Ratio:
The net profit ratio declined from -0.07 to -1.61, indicating a substantial increase in losses relative to revenue. This shows that the company’s profitability has deteriorated sharply, with expenses significantly exceeding income.

Return on Capital Employed:
ROCE decreased from 21.50% to 7.17%, indicating a decline in the company’s ability to generate returns from its overall capital employed. Although still positive, the sharp drop reflects reduced operational efficiency and profitability.