Eastern Sugar And Industries Limited Annual Report and Financials

Eastern Sugar And Industries Limited Balance Sheet (Rs in Lakhs)

Eastern Sugar And Industries Limited Profit & Loss Statement (Rs in Lakhs)

 Eastern Sugar And Industries Limited Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

The company recorded a net loss before tax of ₹5273.87 lakhs, highlighting a difficult year with negative profitability. After accounting for working capital changes, however, the net cash flow from operating activities stands at a positive ₹1005.1 lakhs, mainly due to the adjustments for working capital items:

Trade receivables increased by ₹386.6 lakhs, and other current assets by ₹448.01 lakhs, both of which reduced cash inflows.

Short-term loans and advances contributed significantly by an inflow of ₹1876.4 lakhs, while trade payables decreased by ₹1350.42 lakhs, reflecting higher payments to suppliers or reduced credit from vendors.

Short-term borrowings and current financial liabilities also showed outflows, resulting in reduced cash availability.

Cash Flow from Investing Activities

The net cash inflow from investing activities was ₹1993.34 lakhs, attributed entirely to the sale of investments. There are no new acquisitions or other significant capital expenditures recorded, indicating a conservative approach towards new investments, likely due to the cash constraints from operational losses.

Cash Flow from Financing Activities

Cash flows from financing activities showed a substantial outflow of ₹3011.54 lakhs, driven by:

A decrease in long-term borrowings of ₹7447.3 lakhs, indicating repayment or reduction in debt levels.

A one-time impairment of fixed assets amounting to ₹9477.43 lakhs was noted, potentially impacting future asset productivity and resulting in additional non-cash losses.

This cash outflow was slightly offset by proceeds from the sale of investments amounting to ₹1993.34 lakhs.

Net Changes in Cash and Cash Equivalents

The net decrease in cash and cash equivalents for the year was ₹13.1 lakhs, reflecting a slightly negative cash position by year-end. The opening balance was ₹14.21 lakhs, while the closing balance stood at ₹1.11 lakhs, suggesting tight liquidity at year-end.

Financial Ratios of Eastern Sugar And Industries Limited

Sugar And Industries Limited for the year 2024 and 2023:

Current Ratio: A current ratio of 13.32 in 2023-24, down from 29.75 in the previous year, indicates a substantial decrease in the company’s liquidity position, though it remains above industry norms. This ratio suggests that while the company has ample current assets to cover its current liabilities, the sharp decline may indicate the company is using cash or liquid assets to cover other financial needs.

Debt-Equity Ratio: The absence of a debt-equity ratio in 2023-24, compared to a high ratio of 139.64 in 2022-23, indicates a drastic reduction in debt levels or reclassification of equity and debt components. This change could stem from significant repayments or restructured financing strategies, which reduces reliance on external debt.

Return on Equity (ROE): An ROE of -1809.57% in 2023-24 reveals a significant net loss relative to shareholder equity, indicating that the company experienced substantial losses that outweighed its equity base. The extreme ROE may reflect operational inefficiencies or extraordinary expenses, and it highlights the need for profitability improvements to generate positive returns for shareholders.

Trade Payables Turnover Ratio: The 100x turnover ratio in 2023-24 suggests an exceptionally fast payment cycle to creditors, which may indicate favorable credit terms, improved supplier relationships, or reduced purchase volumes. It also suggests efficient payment practices, allowing the company to maintain its obligations and avoid excessive short-term liabilities.

Return on Capital Employed (ROCE): The ROCE of 73244.41% for 2023-24 points to exceptionally high returns on the capital used in the business, driven by either significant earnings relative to employed capital or revaluations affecting capital structure. Such an extreme value may arise from non-recurring events, indicating that this level of return may not be sustainable long-term.