Dhaval Exports Limited Annual Report and Financials

Dhaval Exports Limited Standalone Balance Sheet (Rs in Lakhs)

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

Dhaval Exports Limited Standalone Cash Flow Statement (Rs in Lakhs) 

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

Cash Flows from Operating Activities:

The company reported a small profit of ₹0.407 lakhs in 2025 compared to a loss of ₹6.572 lakhs in 2024, showing an improvement in accounting profitability. However, despite this improvement, net cash used in operating activities remained negative at ₹7.048 lakhs, though significantly better than the outflow of ₹28.125 lakhs in 2024. The gap between profit and cash flow is explained by various adjustments and working capital changes. Non-cash expenses such as depreciation (₹0.019 lakhs) and tax expense (₹0.134 lakhs) are minimal, indicating limited impact from fixed assets. A major adjustment is the interest income on loans (₹3.600 lakhs), which is deducted from operating cash flows as it is classified under investing activities. Working capital movements further contributed to cash outflows, particularly the significant increase in loans and advances (₹3.436 lakhs) and other current assets, while changes in trade receivables also affected cash flow. Overall, the negative operating cash flow is primarily driven by inefficient working capital management, especially the rise in advances, although the situation has improved compared to the previous year.

Cash Flows from Investing Activities:
The company generated ₹3.600 lakhs from investing activities in 2025, primarily due to interest received on loans. There were no such inflows in 2024. This indicates that the company is earning returns from its financial investments or loans given, which is a positive sign. However, reliance on such income rather than core operations may not be sustainable in the long run.

Cash Flows from Financing Activities:
There were no cash flows reported under financing activities in both 2025 and 2024. This suggests that the company did not raise any new capital, repay borrowings, or distribute dividends during the period. While this indicates financial stability in terms of no additional debt burden, it may also reflect limited external funding or expansion activities.

Net Increase/(Decrease) in Cash:
The net decrease in cash during 2025 was ₹3.448 lakhs, significantly lower than the sharp decline of ₹28.125 lakhs in 2024. This improvement is mainly due to reduced operating cash outflows and the addition of investing inflows. Although cash is still declining, the rate of depletion has slowed considerably.

Financial ratios of Dhaval Exports Limited

Summary of ratios for the year 2025 and 2024 :

Current Ratio:
The current ratio of the company is extremely high at 678.15 in 2025, though slightly reduced from 802.95 in 2024. This indicates that the company has a very large amount of current assets compared to its current liabilities, suggesting strong liquidity. However, such an unusually high ratio may also imply inefficient use of resources, where excess funds are not being effectively utilized for business growth.

Return on Equity:
The return on equity is not reported for 2025 and was slightly negative at -0.02 in 2024. A negative ROE indicates that the company was not generating profits from shareholders ' funds in the previous year. The absence of data in 2025 suggests either negligible returns or incomplete reporting, which raises concerns about profitability from an equity perspective.

Trade Receivables Turnover Ratio:
The trade receivables turnover ratio is 54.87 in 2025, with no data available for 2024. This very high ratio indicates that the company is highly efficient in collecting its receivables, meaning customers are paying quickly. It reflects strong credit management and efficient cash flow from sales.

Net Profit Ratio:
The net profit ratio has improved significantly from -0.68 in 2024 to 0.02 in 2025. This shows that the company has moved from a loss-making position to a marginally profitable one. Although the profit margin is still very low, the positive shift indicates early signs of financial recovery.

Net Capital Turnover Ratio:
The net capital turnover ratio has slightly improved from 0.04 in 2024 to 0.04519 in 2025. This suggests a marginal increase in the efficiency with which the company is using its capital to generate revenue. However, the ratio remains low, indicating that capital utilization is still not very effective.

Return on Capital Employed:
The return on capital employed is not available for 2025 and was -0.02 in 2024. A negative ROCE indicates that the company was not able to generate sufficient returns from its total capital employed. The absence of data in 2025 again suggests limited improvement or lack of reported performance in this area.