Cremica Agro Annual Report & Financials

Cremica Agro Foods Limited Standalone Balance Sheet (Rs in Lakhs)

Cremica Agro Foods Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Cremica Agro Foods Limited Standalone Cash Flow Statement (Rs in Lakhs)

Summary of cash flow statement for the year 2025 and 2024:

Cash Flow from Operating Activities

The company reported a profit before tax of ₹28.55 lakhs in FY25, improving from ₹21.47 lakhs in FY24, indicating better accounting profitability. However, after adjusting for non-cash and non-operating items such as interest income (₹45.27 lakhs) and minor tax refund interest, the operating profit before working capital changes turned negative (-₹16.85 lakhs). This suggests that core operations are not generating sufficient earnings and that profits are largely influenced by non-operating income.

Further, working capital movements significantly worsened cash flows. There was a substantial increase in current assets (-₹19.15 lakhs), indicating higher funds tied up in receivables or inventory. Additionally, trade payables decreased (-₹1.71 lakhs), meaning the company paid off liabilities rather than stretching them. Overall, these factors led to cash used in operations of ₹40.79 lakhs, much higher than the previous year’s outflow.

After accounting for taxes, the company reported a net cash outflow from operating activities of ₹37.14 lakhs, which is significantly worse than ₹18.47 lakhs in FY24. This reflects weak operating cash generation despite reported profits, a key concern for sustainability.

Cash Flow from Investing Activities

Investing activities show a positive net cash inflow of ₹44.46 lakhs in FY25, compared to ₹4.71 lakhs in FY24. The company invested ₹600 lakhs in fixed/term deposits but also redeemed ₹587.01 lakhs, indicating active treasury management rather than long-term capital expenditure.

Additionally, interest received increased sharply to ₹57.46 lakhs, suggesting higher deployment of surplus funds into interest-bearing instruments. Overall, investing cash flow is positive mainly due to liquidation and returns on financial investments, not from sale of productive assets.

This indicates that the company is earning from financial investments rather than core operations, which may not be sustainable long-term if operational cash flows remain weak.

Cash Flow from Financing Activities

There were no financing activities reported in both FY25 and FY24. This means the company neither raised funds (through loans or equity) nor repaid borrowings. It suggests a debt-free or stable capital structure, but also indicates that the company is not relying on external funding to support operations or expansion.

Net Change in Cash Position

Despite negative operating cash flows, the company reported a net increase in cash and cash equivalents of ₹7.32 lakhs in FY25, compared to a decrease of ₹13.76 lakhs in FY24. This improvement is entirely driven by strong investing inflows.

The closing cash balance increased to ₹31.71 lakhs from ₹24.39 lakhs, reflecting improved liquidity position. However, this increase is not due to operational strength but rather investment-related inflows, which may fluctuate in future.

Financial Ratios of Cremica Agro Foods Limited

Summary of financial ratios for the year 2024 and 2025:

Current Ratio

The current ratio increased significantly to 85.39 in FY25 from 71.82 in FY24, which is extraordinarily high compared to normal benchmarks (usually 1.5–3). This indicates that the company has very large current assets relative to current liabilities, suggesting strong short-term solvency. However, such an unusually high ratio may also point to inefficient use of resources, where funds are excessively parked in liquid assets or deposits rather than being deployed productively in the business.

Return on Equity

ROE improved slightly to 0.05% in FY25 from 0.02% in FY24, but it remains extremely low. This shows that the company is generating negligible returns for shareholders despite having equity capital. The marginal improvement indicates slight profitability growth, but overall, the company is not effectively utilizing shareholders’ funds to generate meaningful returns.

Net Profit Ratio

The net profit ratio increased to 0.47% in FY25 from 0.42% in FY24, reflecting a minor improvement in profitability. However, the margin remains very thin, indicating that the company earns less than ₹1 profit for every ₹100 of revenue. This suggests low operational efficiency and/or high costs, making the business vulnerable to cost fluctuations or revenue declines.

Return on Capital Employed

ROCE improved to 0.06% in FY25 from 0.03% in FY24, but like ROE, it remains extremely low. This indicates that the company is generating minimal returns on its overall capital (equity + liabilities). Even though there is improvement, the level is far below acceptable benchmarks, highlighting poor capital efficiency and underutilization of resources.