Champion Commercial Company Ltd Annual Report and Financials

Champion Commercial Company Limited Balance Sheet (Rs In Lakhs)

 Champion Commercial Company Limited Profit & Loss Statement (Rs In Lakhs)

Champion Commercial Company Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Certainly, here is a summary of the Cash Flow Statement for the years 2023 and 2022:

A) CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax & Extraordinary Items: In 2023, the company generated a net profit of 714.65, which was significantly lower than the previous year 's 2,248.78. This figure represents the profit before accounting for taxes and extraordinary items.

Dividend Received: The company received dividends of -54.84 in 2023 and -42.24 in 2022, indicating that it received less in dividends in 2023 compared to the previous year.

Depreciation and Amortization: The depreciation and amortization expenses were 237.93 in 2023, up from 165.28 in 2022, suggesting an increase in non-cash expenses.

Profit on sale of Fixed Assets: There was no profit recorded from the sale of fixed assets in 2023, whereas in 2022, there was a small loss of -2.21.

Interest income: The company received interest income of -2.67 in 2023 and -2.05 in 2022.

Unwinding of interest Income: The unwinding of interest income was -0.52 in 2023 and -0.44 in 2022, reflecting the adjustment of interest income over time.

Unwinding of rent income: In 2023, there was an unwinding of rent income of -0.35, while there was no such income recorded in 2022.

Interest expense: The company incurred interest expenses of 235.04 in 2023, higher than the 135.01 recorded in 2022.

Net gain on sale of investments: There was no net gain on the sale of investments in 2023, while there was a small loss of -0.09 in 2022.

Loss on financial assets measured at FVTPL: In 2023, there was a loss of -1.01, which was significantly lower than the loss of -16.02 in 2022.

Fixed Assets Written off: There were no fixed assets written off in 2023, but in 2022, there was a small amount of 0.61 written off.

Unwinding of interest Expenses: The unwinding of interest expenses was 0.08 in 2023 and 0.47 in 2022, indicating the adjustment of interest expenses over time.

Sundry balance written off/(written back): In 2023, there was a balance written off of 0.33, while no such transaction was recorded in 2022.

Bad debts written off: The company did not write off any bad debts in 2023, while 1.37 was written off in 2022.

Allowance for obsolete Inventories: In 2023, the company increased the allowance for obsolete inventories by 3.68, while it was 0.88 in 2022.

Investment Written off: No investments were written off in 2023, but 0.29 was written off in 2022.

Mark to Market Gain on derivatives: The company recorded a gain of 4.72 in 2023, compared to a loss of -1.6 in 2022.

Excess provision for expected credit losses on trade receivables (Net): In 2023, there was an excess provision of 3.31, higher than the 1.3 recorded in 2022.

Exchange Rate Fluctuation (Net): The company experienced a net loss of -9.09 due to exchange rate fluctuations in 2023, while it gained 3.38 in 2022.

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES:

The operating profit before working capital changes was 1,131.25 in 2023, a significant decrease from 2,492.71 in 2022.

ADJUSTMENTS FOR WORKING CAPITAL CHANGES IN:

Other non-current assets: The company reduced its other non-current assets by -1.39 in 2023, compared to an increase of 0.06 in 2022.

Inventories: In 2023, the company increased its inventory by 630.7, whereas in 2022, it reduced its inventory by -1,009.91.

Trade Receivables: The company reduced its trade receivables by -1,681.51 in 2023, which was more than the reduction of -532.67 in 2022.

Other Bank Balances: The company reduced other bank balances by -23.58 in 2023, compared to a reduction of -0.92 in 2022.

Other Non-Current financial assets: The company reduced other non-current financial assets by -2.26 in 2023, while it increased by 1.41 in 2022.

Other financial assets: In 2023, the company increased other financial assets by 2.56, while in 2022, it increased by 11.77.

Other current assets: The company increased other current assets by 62.7 in 2023, while it reduced them by -161.33 in 2022.

Trade payables: In 2023, the company increased its trade payables by 1,499.08, while in 2022, they increased by 606.14.

Other Non-Current financial liabilities: In 2023, the company increased other non-current financial liabilities by 12.3, while there were no such liabilities in 2022.

Other current liabilities: The company reduced other current liabilities by -1.73 in 2023, compared to a reduction of -1.67 in 2022.

Provisions: The company increased provisions by 8.84 in 2023, while they increased by 10.05 in 2022.

Provisions: In 2023, provisions increased by 505.71, while they decreased by -1,077.07 in 2022.

Cash Generated from Operations:

The cash generated from operations was 1,636.96 in 2023, higher than the 1,415.64 generated in 2022.

Direct Taxes paid:

The company paid direct taxes of 301.43 in 2023 and 578.55 in 2022.

NET CASH FROM OPERATING ACTIVITIES:

The net cash from operating activities was 1,335.53 in 2023, a substantial increase from 837.08 in 2022.

Bellow are the Financial Ratios

Here is a summary of the financial and operational metrics for Champion Commercial Company Limited for the years 2023 and 2022:

1. Current Ratio:

The current ratio in 2023 is 1.23, which indicates that for every unit of current liabilities, the company has 1.23 units of current assets available to cover those obligations. In 2022, the ratio was slightly higher at 1.31, suggesting a small decrease in short-term liquidity in 2023. While a current ratio above 1 is generally considered healthy, a decrease might warrant monitoring to ensure the company can meet its short-term obligations.

2. Debt Equity Ratio:

In 2023, the company 's debt equity ratio is 0.37, indicating that it has reduced its reliance on debt financing relative to equity compared to the previous year 's ratio of 0.4. A lower debt equity ratio generally suggests improved financial leverage and reduced financial risk.

3. Debt Service Coverage Ratio:

The debt service coverage ratio in 2023 is 3.6, significantly lower than the 9.57 recorded in 2022. This reduction may indicate that the company 's ability to service its debt has decreased in 2023. It 's important to assess whether this is a temporary or long-term situation.

4. Return on Equity Ratio:

The return on equity (ROE) ratio in 2023 is 0.06, while it was 0.25 in 2022. A lower ROE suggests a decrease in profitability relative to shareholders ' equity, indicating that the company might not be generating as much profit for its equity investors.

5. Net Profit Ratio:

The net profit ratio in 2023 is 0.02, down from 0.08 in 2022. This indicates that the company 's net profit as a percentage of total revenue has decreased, reflecting reduced profitability.

6. Return on Capital Employed:

The return on capital employed (ROCE) ratio in 2023 is 0.08, compared to 0.22 in 2022. This drop in ROCE implies lower profitability concerning the capital invested in the business, which could be a cause for concern.

7. Return on Investment:

The return on investment (ROI) ratio in 2023 is 0.02, down from 0.17 in 2022. This means that the company 's returns on its total investment have decreased, indicating a potentially less efficient use of invested capital.

Operational Efficiency Ratios:

8. Inventory Turnover Ratio:

The inventory turnover ratio in 2023 is 8.34, which is slightly higher than the 8.24 recorded in 2022. This suggests that the company is selling and replacing inventory at a slightly faster rate in 2023.

9. Trade Receivables Turnover Ratio:

In 2023, the trade receivables turnover ratio is 5.81, compared to 7.22 in 2022. A lower ratio indicates a longer time it takes to collect receivables, which may be an area of concern in terms of cash flow management.

10. Trade Payables Turnover Ratio:

The trade payables turnover ratio in 2023 is 5.77, down from 7.15 in 2022. A lower ratio suggests that the company is taking slightly more time to pay its suppliers, which could impact relationships with creditors.

11. Net Capital Turnover Ratio:

The net capital turnover ratio in 2023 is 15.83, showing an increase from 14.75 in 2022. This suggests that the company is utilizing its net capital more efficiently to generate revenue, which is a positive sign for operational efficiency.

These detailed analyses of financial and operational metrics provide a comprehensive view of Champion Commercial Company Limited 's performance. The changes between 2023 and 2022 highlight areas of improvement or concern, offering insights for further assessment and decision-making regarding the company 's financial and operational strategies.