Carol Info Annual Reports, Balance Sheet and Financials

Carol Info Services Limited Balance Sheet (Rs in Lakhs)

 Carol Info Services Limited Profit & Loss Statement (Rs in Lakhs)

 Carol Info Services Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

The company generated a profit before tax of ₹13,489 lakhs in 2024, higher than ₹10,357 lakhs in 2023. Adjustments were made for non-cash items, including depreciation and amortization (₹193 lakhs), finance costs (₹5,340 lakhs), and interest income (₹-7,436 lakhs). There were also adjustments for provisions for doubtful advances (₹417 lakhs) and the fair valuation of Optionally Convertible Cumulative Redeemable Preference Shares (₹-2,992 lakhs).

After these adjustments, the operating profit before working capital changes was ₹9,012 lakhs, up slightly from ₹8,930 lakhs in 2023. The company experienced a positive impact from working capital movements, with a decrease in trade receivables (₹589 lakhs) and a slight increase in liabilities (₹161 lakhs). As a result, the company generated ₹9,779 lakhs from operations, up from ₹8,503 lakhs in 2023. After paying income taxes of ₹1,850 lakhs, the net cash from operating activities was ₹7,929 lakhs, compared to ₹6,891 lakhs in 2023.

Cash Flow from Investing Activities

Investing activities showed a net cash outflow of ₹-8,897 lakhs in 2024, significantly higher than the outflow of ₹-1,424 lakhs in 2023. The primary reason for this outflow was the issuance of short-term loans amounting to ₹28,357 lakhs. While the company received loan repayments of ₹18,955 lakhs, the net cash used in lending was substantial. Additionally, there were proceeds from the sale of fixed assets (₹680 lakhs) and interest income of ₹357 lakhs, which provided some inflows, but they were not enough to offset the high cash outflows.

Cash Flow from Financing Activities

Financing activities resulted in a minimal net cash outflow of ₹-62 lakhs in 2024, compared to a larger outflow of ₹-5,565 lakhs in 2023. The company raised ₹45,000 lakhs from borrowings and repaid ₹39,276 lakhs. The repayment of borrowings was a key activity, though it was largely offset by the new borrowings raised. Finance costs paid amounted to ₹5,307 lakhs, which consumed a significant portion of cash. The company’s careful management of borrowings and repayments led to a neutral financing cash flow.

Net Change in Cash and Cash Equivalents

Despite the positive cash flow from operating activities, the heavy outflows from investing and neutral cash flow from financing resulted in a net decrease in cash and cash equivalents of ₹-1,031 lakhs in 2024. This compares to a smaller decrease of ₹-98 lakhs in 2023.

 Financial Ratios of Carol Info Services Limited

Here is a summary of the financial and operational metrics for Carol Info Services Limited for the year 2024 and 2023:

Current Ratio

The current ratio measures the company’s ability to cover its short-term liabilities with its current assets. In 2024, the current ratio improved significantly to 3.54 from 0.44 in 2023, indicating much stronger liquidity. This suggests the company is now in a better position to meet its short-term obligations, which is a significant improvement in financial health compared to the previous year.

Debt-Equity Ratio

The debt-equity ratio compares the company’s total debt to its equity. The ratio remained relatively stable, at 0.36 in 2024 compared to 0.35 in 2023. This indicates the company has maintained a similar level of leverage, meaning it is still moderately reliant on debt financing but not to a concerning degree.

Debt Service Coverage Ratio (DSCR)

DSCR measures the company’s ability to cover its debt obligations with its operating income. The ratio dropped dramatically from 1.66 in 2023 to 0.32 in 2024, indicating that the company’s ability to service its debt has significantly weakened. A ratio below 1 suggests that the company may struggle to meet its debt payments from operational cash flows, which could be a concern.

Return on Equity (ROE)

ROE measures the profitability of the company relative to shareholders ' equity. The ROE doubled from 4% in 2023 to 8% in 2024, indicating that the company generated more profit from the equity invested by its shareholders. This improvement signals better efficiency in utilizing equity capital to drive profits.

Trade Receivables Turnover Ratio

This ratio indicates how efficiently the company collects payments from customers. The ratio improved slightly from 2.9 in 2023 to 3.11 in 2024, suggesting the company has become more efficient in collecting receivables, leading to better cash flow management.

Trade Payables Turnover Ratio

This ratio measures how quickly the company pays its suppliers. The trade payables turnover ratio skyrocketed from 22.58 in 2023 to 481 in 2024. This dramatic increase suggests the company is now paying its suppliers much faster than in the previous year. While this could indicate improved cash flow, it may also suggest that the company is under pressure to settle its obligations quickly.

Net Capital Turnover Ratio

The net capital turnover ratio assesses how effectively the company uses its working capital to generate revenue. In 2024, the ratio increased to 0.46 from a negative -0.38 in 2023. This improvement indicates the company is now able to generate revenue from its working capital, a positive turnaround from the inefficiency observed in 2023.

Net Profit Ratio

The net profit ratio, which reflects the percentage of revenue that turns into profit, rose sharply from 42% in 2023 to 89% in 2024. This substantial increase in profitability indicates the company is retaining a much larger portion of its revenue as profit, signaling strong cost management or improved margins.

Return on Capital Employed (ROCE)

ROCE measures how efficiently the company generates profits from its capital employed. The ratio improved from 7% in 2023 to 9% in 2024, indicating the company is generating higher returns from its capital investments, reflecting better operational efficiency and profitability.