City Gold Credit Capital Ltd Annual Report and Financials

City Gold Credit Capital Limited Balance Sheet (Rs in Lakhs)

 City Gold Credit Capital Limited Profit & Loss Statement (Rs in Lakhs)

 City Gold Credit Capital 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 net profit before tax is Rs. 4.5 lakhs in 2024, a turnaround from a loss of Rs. -2.66 lakhs in 2023, indicating improved profitability.

Adjustments for non-cash items like depreciation (Rs. 0.03 lakhs) and finance costs (Rs. 0.09 lakhs) helped bring the operating profit before working capital changes to Rs. 4.61 lakhs.

Working capital changes show significant impacts on cash flow. A decrease in short-term loans and advances (Rs. -12.85 lakhs) reduced cash, while other changes, such as adjustments in current liabilities (+Rs. 6.34 lakhs), provided some cash inflow.

After accounting for taxes paid (Rs. -0.73 lakhs), the net cash outflow from operating activities stood at Rs. -2.62 lakhs, indicating a slight cash shortfall in core business activities.

Cash Flow from Investing Activities

Long-term investments were adjusted by Rs. 4.33 lakhs, providing a net cash inflow. This inflow could signify the liquidation of investments to strengthen cash reserves or fund other requirements.

The total net cash inflow from investing activities was Rs. 4.33 lakhs, suggesting a positive contribution from investment activities in the year.

Cash Flow from Financing Activities

The finance cost (Rs. 0.09 lakhs) represents interest expenses. Despite this cost, there was minimal cash movement in financing activities, resulting in a net inflow of Rs. 0.09 lakhs.

Net Increase/(Decrease) in Cash and Cash Equivalents

After summing the cash flows from operating, investing, and financing activities, there was a net increase in cash by Rs. 1.62 lakhs for 2024. This increase in cash indicates an improvement in liquidity, despite some challenges in operating activities.

The closing balance of cash and cash equivalents for 2024 was Rs. 3.75 lakhs, up from Rs. 2.13 lakhs at the beginning of the year.

Financial Ratios of City Gold Credit Capital Limited

Here is a summary of the financial and operational metrics for City Gold Credit Capital Limited for the year 2024 and 2023:

Inventory Turnover Ratio

In 2024, there is no recorded Inventory Turnover Ratio, while in 2023, it was 2.56. This ratio measures how often inventory is sold and replaced within a year. An absence of this ratio in 2024 could suggest either no inventory usage or turnover during the period, indicating either a change in operations or inventory management.

Interest Coverage Ratio

The Interest Coverage Ratio improved significantly, rising to 54.1 in 2024 from a negative -36.68 in 2023. This ratio evaluates the company’s ability to cover interest expenses with its operating income.

Current Ratio

The Current Ratio decreased from 147.78 in 2023 to 39.63 in 2024. Although it has decreased, a ratio of 39.63 remains exceptionally high, suggesting that the company maintains more than sufficient current assets relative to its current liabilities.

Debt-Equity Ratio

The Debt-Equity Ratio is low, rising slightly to 0.03 in 2024 from 0.01 in 2023. This low ratio indicates a low level of leverage, meaning the company relies very little on debt financing, which could protect it from interest rate fluctuations but may limit growth opportunities if too little leverage is used.

Operating Profit Ratio

This ratio increased to 19.39 in 2024 from -3.77 in 2023, reflecting an improvement in operational efficiency and profitability. A positive operating profit ratio suggests that the core business activities are generating enough revenue to cover operating costs, a strong indicator of financial health and efficient cost management.

Net Profit Margin

The Net Profit Margin rose to 15.83% in 2024 from a negative -3.14% in 2023, showing substantial improvement in profitability. A positive net profit margin indicates that the company has effectively reduced costs or increased revenue, leading to profitability after accounting for all expenses, taxes, and interest.

Return on Net Worth (RoNW)

The Return on Net Worth improved to 1.2 in 2024 from -0.7 in 2023. This ratio measures the return generated on shareholders ' equity and indicates the company 's efficiency in generating profits from its equity base.