Dhaval Exports Limited Annual Report and Financials

Dhaval Exports Limited Balance Sheet (Rs in Lakhs)

Dhaval Exports Limited Profit & Loss Statement (Rs in Lakhs)

 Dhaval Exports 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

2024: -28.125 Lakhs

2023: -7.163 Lakhs

The cash flow from operations primarily reflects the cash generated or used in the core operations of the business.

Profit/Loss for the Year: The net loss of -6.572 Lakhs in 2024, compared to a small profit of 1.22 Lakhs in 2023, suggests that the business incurred a more substantial loss, putting strain on cash from operations.

Adjustments for Depreciation and Tax: Depreciation, a non-cash expense, added back only a small amount of 0.026 Lakhs in 2024. The deferred tax asset (-0.003 Lakhs) in 2024 slightly reduced the cash outflow, but there was no tax expense in this year. In contrast, 2023 included a tax expense of 0.435 Lakhs, indicating some profitability that required tax provisioning.

Changes in Working Capital:

Trade Receivables: The decrease of 8.797 Lakhs in trade receivables in 2024 provided a cash inflow, as the company was able to collect some receivables, whereas in 2023, trade receivables had increased, which used cash.

Other Current Assets: There was a small cash outflow of 0.17 Lakhs due to an increase in other current assets in 2024, as opposed to an inflow in 2023 from a decrease.

Loans and Advances: The significant increase of 30.179 Lakhs in loans and advances in 2024 was a major factor in the net cash outflow, as it suggests funds were allocated to loans or advances that could not be utilized elsewhere.

Other Current Liabilities: A small decrease in other current liabilities in 2024 (-0.025 Lakhs) contributed to cash outflows, compared to an inflow of 0.025 Lakhs in 2023.

Overall, the operating activities resulted in a larger net cash outflow in 2024 due to higher operating losses and an increase in loans and advances, demonstrating a potential strain on cash from core operations.

Cash Flow from Investing Activities

2024: 0

2023: -0.108 Lakhs

In 2023, there was a small cash outflow for the purchase of fixed assets (-0.108 Lakhs), while there were no cash flows from investing activities in 2024. This lack of investment in 2024 could reflect either limited available cash for investment or a strategic choice to conserve cash.

Net Increase/Decrease in Cash and Cash Equivalents

2024: -28.125 Lakhs

2023: -7.271 Lakhs

The net decrease in cash and cash equivalents was 28.125 Lakhs in 2024, significantly higher than the decrease of 7.271 Lakhs in 2023. This was primarily due to the larger cash outflow from operating activities.

Cash and Cash Equivalents at the Beginning and End of the Year

Beginning of the Year: 233.601 Lakhs (2024) vs. 240.872 Lakhs (2023)

End of the Year: 205.476 Lakhs (2024) vs. 233.601 Lakhs (2023)

The year-end cash balance decreased from 233.601 Lakhs in 2023 to 205.476 Lakhs in 2024, reflecting the overall cash outflow due to increased operational losses and outflows.

 Financial Ratios of Dhaval Exports Limited

Here is a summary of the financial and operational metrics for Dhaval Exports Limited for the year 2024 and 2023:

Current Ratio

2024: 802.95

2023: 760.77

The current ratio is unusually high for both years, indicating that the company has a large proportion of current assets relative to its current liabilities. This could mean that the company has more than enough liquidity to cover its short-term obligations, but such a high ratio might also suggest underutilization of assets or an inefficient working capital structure.

Return on Equity (ROE)

2024: -0.024 (or -2.4%)

2023: 0.004 (or 0.4%)

ROE has declined significantly from 0.4% in 2023 to -2.4% in 2024, which implies that the company’s shareholders did not see a positive return on their equity investment this year. Negative ROE often reflects losses, as seen in the company's net profit ratio, indicating the need for the company to address profitability challenges.

Trade Receivables Turnover Ratio

2024: N/A

2023: 1.05

Trade receivables turnover ratio measures how effectively the company collects its receivables. A ratio of 1.05 in 2023 suggests low collection efficiency, as this ratio should ideally be higher, indicating more frequent collections within the year.

Net Capital Turnover Ratio

2024: 0.04

2023: 0.07

This ratio indicates how efficiently the company uses its working capital to generate revenue. A declining ratio from 0.07 in 2023 to 0.04 in 2024 shows a reduction in revenue generation relative to working capital. This decline suggests that the company might be facing challenges in using its working capital productively.

Net Profit Ratio

2024: -0.68 (or -68%)

2023: 7.23%

The significant drop in net profit ratio from 7.23% in 2023 to -68% in 2024 reflects a serious decline in profitability, as the company recorded a large net loss relative to its revenue. A negative net profit ratio means the company is losing money for each unit of revenue generated, which is unsustainable over the long term.

Return on Capital Employed (ROCE)

2024: -0.02 (or -2%)

2023: 0.01 (or 1%)

ROCE shows the company’s efficiency in generating profit from its total capital (equity + debt). A negative ROCE in 2024, compared to a slightly positive value in 2023, indicates that the company is not effectively using its capital to generate profits, likely due to higher operating losses.