EL Forge Ltd Annual Report and Financials

E L Forge Limited Standalone Balance Sheet (Rs in Lakhs)

E L Forge Limited Standalone Profit & Loss Statement (Rs in Lakhs)

 E L Forge Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash flow from operating activities
Net Profit/(loss) before tax	7112.2	-230.66
Adjustments for:
Depreciation	184.2	488.71
Profit/loss on sale of property, plant & Equipment	-10.74	-1.47
Interest expenses	47.84	39.77
Interest received	-13.3	-
Dividend received	-0.05	-
Operating profit before working capital changes	7320.15	296.35
Adjustments for:
Current liabilities & provisions	22.49	251.64
Trade receivables	-165.92	-179.09
Inventories	38.04	12.11
Other non current and current assets	19.96	-46.98
Other non current liabilities	-7056.03	-
Net cash from operating activities	178.69	334.04
Cash flow used in investing activities
Payment for purchase of property, plant & Equipment	-35.64	-184.21
Proceeds for sales property, plant & equipment	13.92	5.78
Deposits (given)/Receipts	-	-25.5
Interest received	13.3	-
Dividend received	0.05	-
Net cash used in investing activities	-8.37	-203.93
Cash flow from financing activities
Interest paid	-47.84	-39.77
Net cash from financing activities	-47.84	-39.77
Net increase/decrease in cash and cash equivalents	122.48	90.33
Opening balance of cash and cash equivalents	232.54	142.21
Closing balance of cash and cash equivalents	355.02	232.54
Cash and cash equivalents-as per financial statement	355.02	142.21

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 for 2024 shows a positive shift to Rs. 7,112.2 lakhs compared to a loss of Rs. -230.66 lakhs in 2023, indicating improved profitability.

Adjustments such as depreciation (Rs. 184.2 lakhs in 2024) and interest expenses (Rs. 47.84 lakhs) add back non-cash charges, raising the operating cash flow. Conversely, items like interest received (Rs. -13.3 lakhs) and dividend received are subtracted as they are investing cash flows.

After adjusting for working capital changes, including trade receivables, current liabilities, and inventories, the net cash from operating activities for 2024 amounts to Rs. 178.69 lakhs, lower than the Rs. 334.04 lakhs in 2023, primarily due to a substantial decrease in other non-current liabilities.

Cash Flow from Investing Activities

The company reports outflows for property, plant, and equipment acquisition (Rs. 35.64 lakhs in 2024), partially offset by proceeds from asset sales (Rs. 13.92 lakhs).

Interest and dividends received contribute a small inflow, leading to a net cash outflow of Rs. -8.37 lakhs from investing activities for 2024, an improvement over the higher outflow of Rs. -203.93 lakhs in 2023.

Cash Flow from Financing Activities

Financing activities are limited, primarily reflecting interest paid (Rs. -47.84 lakhs), with no new borrowing or repayments. This leads to a small net cash outflow of Rs. -47.84 lakhs in 2024, close to the outflow of Rs. -39.77 lakhs in 2023.

Net Increase/Decrease in Cash and Cash Equivalents

The net increase in cash and cash equivalents for 2024 stands at Rs. 122.48 lakhs, with a closing balance of Rs. 355.02 lakhs, indicating a healthier liquidity position. This compares favorably to the Rs. 90.33 lakhs increase in 2023, resulting in a previous closing balance of Rs. 232.54 lakhs.

 Financial Ratios of E L Forge Limited

Here is a summary of the financial and operational metrics for E L Forge Limited for the year 2024 and 2023:

Inventory Turnover Ratio

FY 2023-24: 17.13

FY 2022-23: 28.53

This ratio shows the number of times inventory is sold and replaced over a period, indicating inventory management efficiency. The decrease from 28.53 to 17.13 suggests a lower frequency of inventory turnover, which may indicate slower sales or excess inventory held. While high turnover is generally favorable, this change could imply either a slowdown in demand or a strategic inventory buildup.

Trade Receivables Turnover Ratio

FY 2023-24: 14.81

FY 2022-23: 20.25

The trade receivables turnover ratio measures how quickly a company collects payments from its customers. A decrease from 20.25 to 14.81 suggests that receivables collection has slowed, potentially affecting liquidity. This could be due to extended credit terms or delayed payments from customers, and maintaining effective collection processes becomes essential to prevent cash flow strain.

Trade Payables Turnover Ratio

FY 2023-24: 8.5

FY 2022-23: 10.11

This ratio indicates how quickly a company settles its accounts with suppliers. A decline from 10.11 to 8.5 reflects slower payment to suppliers, possibly suggesting improved cash retention or longer credit terms. However, lower turnover might also imply delayed payments, which could affect supplier relations if not managed effectively.