Eastern Dooars Tea Co Ltd Annual Report and Financials

Eastern Dooars Tea Company Limited Balance Sheet (Rs In Hundreds)

 Eastern Dooars Tea Company Limited Profit & Loss Statement (Rs In Hundreds)

 Eastern Dooars Tea Company Limited Consolidated Cash Flow Statement (Rs In Hundreds)

Certainly, here is a summary of the Cash Flow Statement for the years 2023 and 2022:

1.CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit (Loss) before tax:

In 2023, the company incurred a loss of Rs. 194,982.11, while in 2022, it made a profit of Rs. 201,990.91 before tax.

Adjustment for Depreciation:

Depreciation is a non-cash expense that represents the wear and tear on the company 's assets over time. In 2023, the depreciation expense was Rs. 41,867.46, compared to Rs. 46,561.52 in 2022.

Provision for Bad & Doubtful Debts:

In 2023, the company set aside Rs. 12,000.00 for potential losses from bad and doubtful debts, while there was no such provision in 2022.

Net Gain on sale of current investments:

In 2023, there was a net loss of Rs. 6,837.41 from the sale of current investments, compared to a larger loss of Rs. 16,862.56 in 2022.

Surplus on sale of Property, Plant and Equipments:

In 2023, there was a surplus of Rs. 913.86 from the sale of Property, Plant, and Equipment, while there was no such activity in 2022.

Finance cost:

Finance cost represents the interest paid on borrowings. In 2023, the company incurred Rs. 3,670.17 in finance costs, whereas in 2022, the cost was higher at Rs. 18,679.07.

Interest received:

Interest received represents income earned from investments or deposits. In 2023, the company received Rs. 6,658.20 in interest, compared to Rs. 5,022.50 in 2022.

Short Term Provision:

The company made provisions for short-term expenses, amounting to Rs. 200,008.53 in 2023 and Rs. 199,311.78 in 2022.

Operating Profit Before Working Capital Changes:

This represents the profit generated from core business operations before considering changes in working capital. In 2023, it was Rs. 48,154.58, significantly lower than the Rs. 444,658.22 in 2022.

Adjustments for Working Capital Changes:

These adjustments account for changes in trade receivables, short-term loans & advances, other current assets, inventories, trade payables, biological assets, other current liabilities, and payment of provisions.

Cash generated from operations:

In 2023, the company generated Rs. -260,629.81 in cash from its operating activities, indicating a net outflow. In contrast, in 2022, there was a net inflow of Rs. 318,462.44.

Direct taxes paid:

The company paid direct taxes amounting to Rs. -20,403.23 in 2023 and Rs. -32,137.79 in 2022.

Cash Flow before Extraordinary items:

This is the net cash flow from operating activities before considering any extraordinary items. In 2023, it was Rs. -281,033.04, and in 2022, it was Rs. 286,324.65.

Extraordinary items:

There were no extraordinary items recorded in either 2023 or 2022.

Net Cash from Operating Activities :

In 2023, the net cash flow from operating activities was Rs. -281,033.04, indicating a net outflow. In 2022, it was Rs. 286,324.65, indicating a net inflow.

2. CASH FLOW FROM INVESTING ACTIVITIES:

Purchase and Sale of Property, Plant & Equipments:

In 2023, the company invested Rs. -32,788.31 in purchasing property, plant, and equipment, and earned Rs. 5,355.45 from the sale of such assets. In 2022, there was a purchase of property, plant, and equipment worth Rs. -123.

Purchase and Sale of Investments:

The company invested Rs. -300,000.00 in 2023 and Rs. -805,000.00 in 2022 in various investments. It also earned Rs. 614,014.71 from the sale of investments in 2023 and Rs. 909,651.94 in 2022.

Term Deposit with bank:

In 2022, the company invested Rs. -100,000.00 in a term deposit with a bank.

Interest received:

The company received Rs. 6,658.20 in interest in 2023 and Rs. 5,022.50 in 2022.

Net Cash from Investing Activities :

In 2023, the net cash flow from investing activities was Rs. 293,240.05, indicating a net inflow. In 2022, it was Rs. 9,551.44, also indicating a net inflow.

3. CASH FLOW FROM FINANCING ACTIVITIES:

Receipt (Repayment) of borrowings:

The company received Rs. -11,659.32 in repayments of borrowings in 2023 and Rs. -274,596.94 in 2022.

Finance cost:

Finance costs related to interest paid on borrowings. The company incurred Rs. -3,670.17 in 2023 and Rs. -18,679.07 in 2022.

Net Cash from Financing Activities :

In 2023, the net cash flow from financing activities was Rs. -15,329.49, indicating a net outflow. In 2022, it was Rs. -293,276.01, also indicating a net outflow.

4. Net increase in Cash & Cash Equivalents:

In 2023, there was a net decrease of Rs. -3,122.48 in cash and cash equivalents, while in 2022, there was a net increase of Rs. 2,600.08.

5. Cash & Cash Equivalents (Opening and Closing Balance):

In 2023, the cash and cash equivalents had an opening balance of Rs. 8,795.58 and a closing balance of Rs. 5,673.10. In 2022, the opening balance was Rs. 6,195.50 and the closing balance was Rs. 8,795.58.

This detailed explanation provides a comprehensive understanding of the cash flow activities for the years 2023 and 2022.

Below are the Financial Ratios

Here is a summary of the financial and operational metrics for Eastern Dooars Tea Company Limited for the years 2023 and 2022:

1. Current Ratio:

In 2023, the current ratio is 1.86, which indicates that the company has Rs. 1.86 in current assets for every Rs. 1 of current liabilities.

In 2022, the current ratio was higher at 2.2, suggesting a stronger liquidity position.

2. Debt-Equity Ratio:

In both 2023 and 2022, the company has a very low debt-equity ratio, with virtually no debt in its capital structure.

3. Debt Service Coverage Ratio:

In 2023, the debt service coverage ratio is -54.13, which indicates a negative coverage, suggesting that the company 's operating income is insufficient to cover its debt service obligations.

In 2022, the ratio was 9.81, indicating a positive debt service coverage.

4. Return on Equity Ratio:

In 2023, the return on equity is 0.1714, meaning that the company generated a return of 17.14% on its equity.

In 2022, the return on equity was slightly lower at 0.1594.

5. Inventory Turnover Ratio:

In 2023, the inventory turnover ratio is 4.69, suggesting that the company 's inventory is turned over 4.69 times during the year.

In 2022, the turnover ratio was higher at 8.75, indicating a faster rate of inventory turnover.

6. Trade Receivable Turnover Ratio:

In 2023, the trade receivable turnover ratio is 9.38, meaning that the company collects its receivables 9.38 times during the year.

In 2022, the turnover ratio was slightly higher at 11.94.

7. Trade Payable Turnover Ratio:

In 2023, the trade payable turnover ratio is 9.83, indicating that the company pays its trade payables 9.83 times during the year.

In 2022, the turnover ratio was 13.19, showing a higher rate of trade payable turnover.

8. Net Capital Turnover Ratio:

In 2023, the net capital turnover ratio is 4.64, which indicates that the company generates Rs. 4.64 in revenue for every Rs. 1 of net capital employed.

In 2022, the ratio was 4.13, suggesting a similar efficiency in capital utilization.

9. Net Profit Ratio:

In 2023, the net profit ratio is 0.0797, meaning that the company has a net profit margin of 7.97%.

In 2022, the net profit ratio was 0.0729, indicating a slightly lower net profit margin.

10. Return on Capital Employed:

In 2023, the return on capital employed is -0.1896, indicating a negative return on the capital employed, which may be a cause for concern.

In 2022, the return on capital employed was positive at 0.1495.

11. Return on Investment:

In 2023, the return on investment is 0.0658, which signifies a return of 6.58% on the company 's investments.

In 2022, the return on investment was 0.0408.