Emrald Commercial Ltd Annual Report and Financials

Emrald Commercial Limited Standalone Balance Sheet (Rs in Hundreds)

Particulars	31-03-2025	31-03-2024
Financial assets
Cash and cash equivalents	10,889.83	9,690.75
Bank balance other than cash and cash equivalents	1,07,922.68	61,088.23
Trade receivables	3,70,835.00	8,04,141.56
Loans	43,22,881.48	28,02,367.16
Investments	18,79,187.01	28,39,966.00
Other non-financial assets	32,837.25	27,777.19
Non-financial assets
Inventories	9,26,843.34	10,12,238.57
Property, plant and equipment	24,525.20	27,261.01
Total assets	76,75,921.79	75,84,530.47
Financial liabilities
Trade payables
Total outstanding dues of creditors other than micro enterprises and small enterprises	1,50,000.00	74,070.00
Other payables
Total outstanding dues of creditors other than micro enterprisesand small enterprises	21,254.22	21,534.00
Other financial liabilities	20,598.21	23,244.02
Non-financial liabilities
Current tax liabilities	6,115.28	5,133.38
Provisions	6,490.49	5,616.15
Deferred tax liabilities (net)	210.35	210.35
Equity
Equity share capital	43,59,883.70	43,59,883.70
Other equity	31,11,369.54	30,94,838.87
Total Liabilities & Equities	76,75,921.79	75,84,530.47

Emrald Commercial Limited Standalone Profit & Loss Statement (Rs in Hundreds)

Particulars	31-03-2025	31-03-2024
Revenue from operations
Interest income	1,34,492.80	1,05,935.85
Dividend income	3,305.05	1,343.79
Sale of product/service	34,54,527.66	17,02,433.57
Total Income	35,92,325.51	18,09,713.21
Expenses
Finance costs	2,094.57	4,319.86
Purchase of stock in trade	33,99,595.67	11,46,641.66
Changes in inventory of finished goods	85,395.23	5,66,394.13
Employee benefit expenses	27,974.41	30,105.84
Payment to auditors	350.00	350.00
Depreciation	6,884.28	6,884.28
Other expenses	46,511.06	36,841.25
Total Expenses	35,68,805.22	17,91,537.02
Profit Before Tax	23,520.29	18,176.19
Current Tax	6,115.28	5,133.38
Profit/(Loss) for the period	17,405.01	13,042.81
Other comprehensive income	17,405.01	13,042.81
Earnings per share
Basic	0.04	0.04
Diluted	0.04	0.04

Emrald Commercial Limited Standalone Cash Flow Statement (Rs in Hundreds)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net profit before tax	23,520.29	18,176.19
Adjustments for Depreciation	6,884.28	6,884.28
Adjustment for balance of asset written off	-	-34,472.15
Operating profit before working capital changes	30,404.57	-9,411.68
Movements in working capital :
(Increase)/ decrease in operating (current) Asset	-46,093.60	-3,76,191.26
Increase/ (decrease) in operating (current) liabilities	73,004.41	-1,01,605.62
Cash generated from operations	57,315.38	-4,87,208.56
Income tax paid	5,133.38	25,836.30
Net cash inflow/(outflow) from operating activities	52,182.00	-5,13,044.86
Cash flow from investing activities
Purchase of Fixed Assets / Investment	-4,148.47	-224.20
(Increase)/ decrease in operating (Non-current) Asset	-	5,66,394.13
Net cash inflow / (outflow) from investing activities	-4,148.47	5,66,169.93
Net cash inflow/(outflow) from financing activities	-	-
Net changes in cash and cash equivalents	48,033.53	53,125.07
Opening Cash and cash equivalents	70,778.98	17,653.91
Closing cash and cash equivalents	1,18,812.51	70,778.98

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

In FY25, the company reported a net profit before tax of ₹23,520.29 (in hundreds), compared to ₹18,176.19 in FY24, reflecting an improvement in profitability. After adding depreciation of ₹6,884.28, the operating profit before working capital changes increased to ₹30,404.57, a sharp turnaround from the negative ₹9,411.68 recorded in FY24. The previous year’s loss at the operating level was mainly due to the asset write-off adjustment of ₹34,472.15, which had significantly reduced profitability. Working capital movements had a mixed impact. Operating current assets increased by ₹46,093.60, indicating higher funds locked in receivables or other short-term assets. However, operating current liabilities increased by ₹73,004.41, which provided liquidity support. Consequently, cash generated from operations improved significantly to ₹57,315.38 in FY25, compared to a substantial negative ₹4,87,208.56 in FY24.

After payment of income tax amounting to ₹5,133.38, the company reported a net cash inflow from operating activities of ₹52,182.00, marking a major recovery from the net cash outflow of ₹5,13,044.86 in the previous year. This indicates stronger operational cash generation and better working capital management in FY25.

 

Cash Flow from Investing Activities

During FY25, the company incurred ₹4,148.47 (in hundreds) towards purchase of fixed assets or investments, resulting in a net investing cash outflow of ₹4,148.47. In contrast, FY24 recorded a significant inflow of ₹5,66,394.13 from reduction in non-current operating assets, which led to a net investing inflow of ₹5,66,169.93 after minor capital expenditure of ₹224.20.

The large inflow in FY24 appears to be non-recurring in nature, possibly from disposal or realization of long-term assets. FY25 reflects relatively normal and limited investment activity.

 

Cash Flow from Financing Activities

There were no cash inflows or outflows from financing activities in both FY25 and FY24. This suggests that the company neither raised additional funds nor repaid borrowings during the period, indicating a stable capital structure without reliance on external financing.

 

Net Change in Cash and Cash Equivalents

The overall net increase in cash and cash equivalents during FY25 stood at ₹48,033.53, compared to ₹53,125.07 in FY24. Although the increase is slightly lower than the previous year, the quality of cash flow has improved, as FY25 growth is primarily driven by operating activities rather than asset sales.

The closing cash balance rose to ₹1,18,812.51 from ₹70,778.98, strengthening the company’s liquidity position. Overall, FY25 reflects improved operational performance, healthier cash generation, and enhanced financial stability.

Financial ratios of Emrald Commercial Limited

Particulars	31-03-2025	31-03-2024
Current ratio	2.72	7.60
Inventory turnover ratio	3.59	1.32
Net capital turnover ratio	0.45	0.22
Net profit ratio	0.50	0.77

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio
The current ratio declined significantly from 7.60 in FY24 to 2.72 in FY25. Although the ratio has reduced, it still remains above the generally accepted benchmark of 2:1, indicating that the company continues to maintain adequate short-term liquidity. The sharp fall suggests that either current liabilities have increased or current assets have decreased compared to the previous year. While FY24 reflected excess liquidity (possibly idle current assets), FY25 shows a more efficient but tighter working capital position.

 

Inventory Turnover Ratio
The inventory turnover ratio improved substantially from 1.32 times in FY24 to 3.59 times in FY25. This indicates that inventory is being converted into sales more quickly than in the previous year. The improvement reflects better inventory management, improved demand, or more efficient sales operations. Higher turnover reduces holding costs and the risk of obsolescence, which is a positive sign for operational efficiency.

 

Net Capital Turnover Ratio
The net capital turnover ratio increased from 0.22 in FY24 to 0.45 in FY25. This shows that the company is generating more sales per unit of net capital employed. The improvement suggests better utilization of long-term funds and improved operational efficiency. However, the ratio is still relatively moderate, indicating there may be scope for further improvement in capital productivity.

 

Net Profit Ratio
The net profit ratio declined from 0.77 in FY24 to 0.50 in FY25. This indicates a reduction in net profitability relative to sales. The fall may be due to increased operating expenses, higher finance costs, or lower margins despite improved sales efficiency. Although the company remains profitable, the decline suggests pressure on profit margins and the need for cost control and margin improvement strategies.