Commercial Properties Annual Reports, Balance Sheet and Financials

Commercial Properties & Merchandise Limited Standalone Balance Sheet (Rs in hundreds)

Commercial Properties & Merchandise Limited Standalone Profit & Loss Statement (Rs in hundreds)

Commercial Properties & Merchandise Limited Standalone Cash Flow Statement (Rs in hundreds)

Summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

During FY 2023–24, the company generated a strong positive cash flow from operating activities amounting to ₹8,882.03 (in hundreds), compared to a significant negative cash flow of ₹27,957.53 (in hundreds) in FY 2022–23.

Net profit before tax stood at ₹4,613.60 in FY24, lower than ₹11,111.37 in FY23. However, after adjusting for non-cash and non-operating items such as depreciation (₹4,176.41) and provision for doubtful debts (₹630.66), the operating profit before working capital changes improved to ₹9,325.34, compared to a loss of ₹7,141.91 in the previous year.

Working capital adjustments played a key role in improving cash flow. There was a reduction in trade and other receivables (₹5,293.82 outflow, significantly lower than ₹18,535.35 outflow in FY23), while other current liabilities increased by ₹4,408.69, supporting liquidity. Unlike the previous year, there were no major adverse movements in long-term loans and advances or other long-term liabilities.

Overall, operational performance and improved working capital management resulted in positive cash generation in FY24.

Cash Flow from Investing Activities

Investing activities generated a modest inflow of ₹95.33 (in hundreds) during FY24, compared to a substantial inflow of ₹16,624.34 in FY23.

In FY23, the company had significant interest income of ₹24,323.10 and capital expenditure of ₹7,698.76, resulting in a large net inflow. In contrast, FY24 recorded only ₹95.33 as interest received and no major purchase or sale of fixed assets. This indicates that FY23 had one-time or large investment-related transactions, whereas FY24 saw minimal investing activity.

Cash Flow from Financing Activities

There was no financing cash flow in FY24. In comparison, FY23 recorded an outflow of ₹3,120.00 due to interest paid. The absence of financing cash flow in FY24 suggests no additional borrowings or repayments during the year and lower finance cost burden compared to the previous year.

Net Increase/Decrease in Cash and Cash Equivalents

The company reported a net increase in cash and cash equivalents of ₹8,977.36 (in hundreds) in FY24, reversing the previous year’s decline of ₹14,453.19.

As a result, the closing cash balance increased significantly to ₹10,536.94, compared to ₹1,559.58 at the end of FY23. This substantial improvement reflects stronger operational cash generation and reduced financial pressure during the year. 

Financial ratios of Commercial Properties & Merchandise Limited

Summary of the financial ratios for the years 2024 and 2023:

Current Ratio:
The current ratio stood at 316.28% in FY 2023-24 compared to 320.54% in FY 2022-23. Although there is a marginal decline, the ratio remains extremely high, indicating that the company has a very strong liquidity position. It suggests that current assets are significantly higher than current liabilities, which ensures short-term solvency. However, such a high ratio may also indicate inefficient utilization of current assets or idle funds that could otherwise be deployed more productively.

Return on Equity:
The return on equity declined sharply to 1.00% in FY 2023-24 from 24.64% in the previous year. This significant drop indicates a substantial reduction in profitability relative to shareholders’ funds. The decline suggests that the company was unable to generate adequate returns for its equity shareholders during the year, possibly due to lower net profits or increased equity base.

Trade Receivables Turnover Ratio:
The trade receivables turnover ratio improved to 26.35 times in FY 2023-24 from 23.61 times in FY 2022-23. This improvement reflects better efficiency in collecting receivables and faster conversion of credit sales into cash. A higher ratio indicates effective credit management and strong liquidity support from operating activities.

Net Capital Turnover Ratio:
The net capital turnover ratio decreased from 4.94 times in FY 2022-23 to 3.02 times in FY 2023-24. This decline indicates lower efficiency in utilizing capital to generate revenue. It may suggest either a reduction in sales or an increase in capital employed without a proportionate increase in revenue.

Net Profit Ratio:
The net profit ratio dropped drastically to 0.72% in FY 2023-24 from 16.19% in FY 2022-23. This sharp fall highlights a significant decline in overall profitability. It indicates that the company earned very minimal profit per rupee of revenue during the year, which could be due to increased expenses, reduced margins, or lower revenue growth.

Return on Capital Employed :
ROCE declined substantially to 9.48% in FY 2023-24 compared to 32.32% in FY 2022-23. This indicates reduced efficiency in utilizing overall capital (both debt and equity) to generate profits. The drop suggests that operating profits have fallen considerably relative to capital employed.

Return on Investments :
Return on investments decreased to 7,836.00% in FY 2023-24 from 13,021.00% in FY 2022-23. Although the percentage remains extraordinarily high, the significant reduction suggests lower income generated from investments compared to the previous year. Such unusually high ROI figures may be due to a very small investment base or exceptional income items.