Eastern Dooars Tea Co Ltd Annual Report and Financials

Eastern Dooars Tea Co ltd Balance Sheet (Rs in Hundreds)

 Eastern Dooars Tea Co ltd Profit & Loss Statement (Rs in Hundreds)

 Eastern Dooars Tea Co ltd Consolidated Cash Flow Statement (Rs in Hundreds)

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 FY 2023-24 stands at a loss of ₹5,43,268.81, a significant increase in losses compared to ₹1,94,982.11 in the previous year. Adjustments included non-cash and non-operating items such as depreciation of ₹44,117.54, up slightly from ₹41,867.46 the prior year, and finance costs which increased significantly to ₹28,468.94 from ₹3,670.17. These adjustments led to an operating loss before working capital changes of ₹2,62,958.68, highlighting the strain on the company's cash flow from core operations.

Working capital changes show fluctuations across categories:

Inventories decreased, contributing ₹1,33,179.14 to cash flow, a reversal from the outflow of ₹1,72,567.82 last year.

Trade receivables saw an inflow of ₹6,545.96, while trade payables contributed an outflow of ₹57,211.74.

Overall working capital adjustments helped mitigate the operating losses, but cash generated from operations was negative at ₹4,05,563.61.

After adjustments for direct taxes, the net cash used in operating activities was ₹3,91,422.33, compared to ₹2,81,033.04 last year, indicating a worsening cash outflow from operations.

Cash Flow from Investing Activities

Investing activities in FY 2023-24 resulted in a net cash inflow of ₹76,211.77 as opposed to ₹2,93,240.05 in the previous year:

Capital expenditures increased to ₹45,784.50 from ₹32,788.31, demonstrating continued investment in property, plant, and equipment.

Proceeds from the sale of investments contributed ₹1,04,433.19, a substantial source of cash, although lower than ₹6,14,014.71 in FY 2022-23.

The total net inflow from investing activities has decreased compared to the prior year due to lower sale proceeds from investments and increased capital expenditure.

Cash Flow from Financing Activities

The financing activities section reflects a significant inflow, primarily due to receipts from borrowings amounting to ₹3,44,421.02, which contrasts sharply with the previous year’s repayment-driven outflow of ₹11,659.32. Finance costs also increased to ₹28,468.94 from ₹3,670.17, illustrating a higher cost of capital, likely due to additional debt. Overall, the net cash from financing activities came to ₹3,15,952.08, a positive swing from last year’s outflow of ₹15,329.49.

Net Increase in Cash and Cash Equivalents

The net increase in cash and cash equivalents was ₹741.52 for FY 2023-24, compared to a decrease of ₹3,122.48 the previous year. This modest positive increase is reflected in the closing cash balance of ₹6,414.62, up from ₹5,673.10 at the start of the year, indicating a slight improvement in liquidity, though largely reliant on financing activities

Financial Ratios of Eastern Dooars Tea Co ltd

Here is a summary of the financial and operational metrics for Eastern Dooars Tea Co ltd for the year 2024 and 2023:

Current Ratio

2024: 0.93

2023: 1.86

The current ratio measures a company’s ability to cover short-term liabilities with short-term assets. A ratio below 1 (0.93 in 2024) implies that current liabilities exceed current assets, which may indicate liquidity concerns and a potential struggle to meet immediate financial obligations.

Debt-Equity Ratio

2024: 0.61

2023: N/A (not available or no debt reported)

This ratio suggests that the company took on some level of debt in 2024. A debt-to-equity ratio of 0.61 indicates moderate leverage, showing a reliance on debt financing but still with a higher equity cushion than companies with a ratio over 1.

Debt Service Coverage Ratio (DSCR)

2024: -18.08

2023: -54.13

A negative DSCR indicates that operating income does not cover debt obligations, a critical concern for solvency. While there was a slight improvement in 2024, the DSCR remains negative, signaling that the company’s earnings before interest and taxes (EBIT) are insufficient to service its debt.

Return on Equity (ROE)

2024: -82.56%

2023: -17.14%

ROE represents the return generated on shareholders' equity. The highly negative ROE in both years, especially in 2024, suggests significant losses relative to shareholders’ equity, reducing shareholder value and potentially impacting investor confidence.

Inventory Turnover Ratio

2024: 6.09

2023: 4.69

This ratio measures the efficiency of inventory management. An increase from 4.69 to 6.09 suggests improved efficiency, with inventory being sold and replaced more frequently in 2024, which is a positive indicator for operational efficiency.

Trade Receivables Turnover Ratio

2024: 9.04

2023: 9.38

This slight decrease implies a marginal reduction in the efficiency of collecting receivables. A high ratio is generally favorable as it indicates faster collections, but the small decline in 2024 might suggest slower collections or extended credit terms to customers.

Trade Payables Turnover Ratio

2024: 14.63

2023: 9.83

The increase in this ratio implies quicker payment cycles to suppliers in 2024 compared to 2023. While a high turnover rate can indicate good credit terms with suppliers, it may also pressure cash flow, particularly when combined with a low current ratio.

Net Capital Turnover Ratio

2024: -39.13

2023: 4.64

The drastic shift to a negative ratio in 2024 indicates that the company is generating significantly less revenue per unit of net capital employed, likely due to decreased revenues or increased capital requirements, which points to inefficiency in utilizing capital resources.

Net Profit Margin

2024: -22.44%

2023: -7.97%

The net profit margin shows that the company incurred greater losses relative to sales in 2024. A worsening negative margin suggests increased operational inefficiencies, higher costs, or pricing pressures, all of which erode profitability.

Return on Capital Employed (ROCE)

2024: -90%

2023: -18.96%

ROCE indicates a company’s efficiency at generating profits from its capital. The significant negative ROCE in 2024, worsening from 2023, reflects the substantial losses relative to capital employed, suggesting inefficient capital usage and potentially weak investment returns.

Return on Investment (ROI)

2024: 3.82%

2023: 6.58%

The ROI decline from 6.58% to 3.82% indicates a reduction in the return generated from investments, which may point to underperforming assets or investments yielding lower returns.