Eastern Investments Annual Reports, Balance Sheet and Financials

Eastern Investments Limited Balance Sheet (Rs in Lakhs)

Eastern Investments Limited Profit & Loss Statement (Rs in Lakhs)

Eastern Investments Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Cash Flows from Operating Activities

Profit before tax:

31-03-2023: −2,047.28-2,047.28−2,047.28

31-03-2022: −485.93-485.93−485.93

Adjustments and working capital changes:

Depreciation and amortization: Decreased from 1,565.961,565.961,565.96 to 260.96260.96260.96, indicating possibly lower investment in non-current assets in 2023.

Fair value gain/(loss): Slight decrease in losses.

Liabilities no longer required written back: Improvement from a loss to a gain.

Interest income and expenses: Income decreased slightly, expenses decreased significantly.

Movements in working capital:

Significant changes in financial assets, liabilities, and other items, contributing to cash flow changes.

Cash generated from operations:

Increased from 10,577.8510,577.8510,577.85 in 2022 to 14,696.1714,696.1714,696.17 in 2023, indicating improved operational cash flow.

Cash Flows from Investing Activities

Payments for property, plant and equipment: Minimal compared to large outflow in 2022.

Interest received: Increased substantially.

Proceeds/(payments) on sale/(purchase) of financial assets and investments: No activity in 2023 compared to significant outflow in 2022.

Net cash generated from investing activities: Improved from −4,657.88-4,657.88−4,657.88 to 530.92530.92530.92, mainly due to reduced outflows.

Cash Flows from Financing Activities

Interest on borrowings: Decreased.

Repayment of borrowings: Significant repayment in 2023 compared to none in 2022.

Net cash used in financing activities: Increased outflow primarily due to repayments.

Summary

Net increase or (decrease) in cash or cash equivalents: Decreased by −3,665.33-3,665.33−3,665.33 in 2023 compared to an increase of 2,757.282,757.282,757.28 in 2022.

Cash and cash equivalents at the end of the year: Decreased from 4,409.184,409.184,409.18 to 743.85743.85743.85.

Financial Ratios of Eastern Investments Limited

Current Ratio

31-03-2023: 1.88

31-03-2022: 14.13

Current Ratio measures the company 's ability to pay its short-term obligations with its short-term assets:

31-03-2022: The current ratio was exceptionally high at 14.13, indicating a very strong ability to cover short-term liabilities with current assets. This could be due to a large amount of cash or highly liquid assets relative to short-term liabilities.

31-03-2023: The current ratio decreased significantly to 1.88, which is still above 1 (indicating a healthy current liquidity position), but much lower compared to the previous year. This decrease suggests a change in the composition of current assets or liabilities, possibly a decrease in cash or increase in short-term liabilities.

Return on Equity (ROE) Ratio

31-03-2023: -0.013 or -1.3%

31-03-2022: -0.002 or -0.2%

Return on Equity measures the profitability relative to shareholders ' equity:

Both years show negative ROE, indicating that the company 's net income was not sufficient to generate a positive return on shareholders ' equity. The deeper negative in 2023 suggests a larger loss relative to equity compared to 2022.

Net Capital Turnover Ratio

31-03-2023: 0.29

31-03-2022: 0.14

Net Capital Turnover Ratio measures the efficiency of capital utilization:

The ratio improved significantly in 2023, indicating that the company generated more revenue per unit of capital invested compared to 2022. This improvement suggests better efficiency in utilizing invested capital to generate sales.

Net Profit Ratio

31-03-2023: -9.67% or -9.67

31-03-2022: -0.68% or -0.68

Net Profit Ratio (also known as Net Profit Margin) measures the percentage of net profit relative to sales:

The ratio worsened significantly in 2023, indicating a much higher loss relative to sales compared to 2022. This suggests that despite potentially higher revenue, the company incurred significantly higher expenses or losses in 2023.

Return on Capital Employed (ROCE)

31-03-2023: 0 or 0%

31-03-2022: 0.001% or 0.001

Return on Capital Employed measures profitability relative to the total capital employed (both equity and debt):

ROCE was essentially 0% in both years, indicating that the company did not generate any meaningful return on the capital employed in the business. This implies that the business operations did not generate sufficient profit relative to the invested capital.

Return on Investment (ROI)

31-03-2023: -0.013 or -1.3%

31-03-2022: -0.002 or -0.2%

Return on Investment is similar to ROE but includes all forms of investments (not just equity):

Like ROE, ROI was negative in both years, indicating that the investments made did not yield positive returns. The deeper negative in 2023 suggests a larger loss relative to total investments compared to 2022.

Dividend History

The Board did not recommend dividend for the financial year 2022-23, due to losses incurred by the company during the financial year.