ESDS Software Annual Reports, Balance Sheet and Financials

Esds Software Solution Limited Balance Sheet (In Rs. Millions)

Esds Software Solution Limited Profit & Loss Statement (In Rs. Millions)

Esds Software Solution Limited Consolidated Cash Flow Statement (In Rs. Millions)

Let 's break down the Cash Flow Statement for the years 2023 and 2022, activity-wise:

 A) Cash flows from operating activities:

1. Operating Profit Before Working Capital Changes: In 2023, the company reported an operating profit before working capital changes of 505.71 million rupees, which decreased from 641.41 million rupees in 2022.

2. Changes in Working Capital: The company experienced various changes in its working capital components. Trade receivables increased by 50.05 million rupees in 2023, whereas they decreased significantly by 257.27 million rupees in 2022. Other current and non-current financial assets increased by 15.45 million rupees in 2023, contrasting with a decrease of 17.59 million rupees in 2022. Similarly, other current and non-current assets increased by 57.05 million rupees in 2023, in contrast to a decrease of 104.28 million rupees in 2022. Trade payables increased by 14.65 million rupees in 2023 but decreased by 4.82 million rupees in 2022. Employee benefit obligations increased by 6.82 million rupees in 2023 and 10.41 million rupees in 2022. There was a significant decrease in other current and non-current financial liabilities by 55.81 million rupees in 2023 compared to a decrease of 8.91 million rupees in 2022. Other current and non-current liabilities increased by 28.74 million rupees in 2023 and 2.01 million rupees in 2022.

3. Cash Generated from Operations: The cash generated from operations was 622.67 million rupees in 2023, significantly higher than the 260.95 million rupees generated in 2022.

4. Income Taxes Paid (Net of Refunds Received): The company paid net income taxes of -71.23 million rupees in 2023, compared to -96.57 million rupees in 2022.

5. Net Cash Inflow/(Outflow) from Operating Activities: The net cash inflow from operating activities was 551.44 million rupees in 2023, representing a substantial increase from the 164.39 million rupees reported in 2022.

 B) Cash flows from investing activities:

1. Payments for Property, Plant, and Equipment and Intangible Assets: The company made payments of -361.75 million rupees for property, plant, and equipment, and intangible assets in 2023, compared to -605.58 million rupees in 2022.

2. Bank Balances Not Considered as Cash and Cash Equivalents: The company had outflows of -194.02 million rupees in 2023 and -106.41 million rupees in 2022, which were not considered as cash and cash equivalents.

3. Interest/Income on Investment Received: Interest or income on investments received was 15.63 million rupees in both 2023 and 2022.

4. Net Cash Flows from Investing Activities: The net cash outflow from investing activities was -540.14 million rupees in 2023, compared to -695.48 million rupees in 2022.

 C) Cash flows from financing activities:

1. Proceeds from Issue of Preference Shares and Rights Issue: There were no proceeds from the issue of preference shares or rights issue in both 2023 and 2022.

2. Proceeds from Issue of Non-Convertible Debentures: The company raised 450 million rupees from the issue of non-convertible debentures in 2023, compared to 300 million rupees in 2022.

3. Increase/(Decrease) of Borrowings: Non-current borrowings decreased by -176.08 million rupees in 2023 and -83.67 million rupees in 2022. Current borrowings increased by 16.33 million rupees in 2023 and 412.54 million rupees in 2022.

4. Principal Elements of Lease Payments: The company made lease payments of -281.48 million rupees in 2023 and -277.5 million rupees in 2022.

5. Proceeds from Issue of Equity Share Capital: The company raised -9.05 million rupees from the issue of equity share capital in 2023, compared to 300 million rupees in 2022.

6. Interest Paid on Borrowings: Interest paid on borrowings amounted to -194.44 million rupees in 2023 and -121.67 million rupees in 2022.

7. Net Cash Inflows/(Outflow) from Financing Activities: The net cash outflow from financing activities was -194.72 million rupees in 2023, compared to 736.68 million rupees in 2022.

Financial Ratios of Esds Software Solution Limited:

Insights into the financial health and performance of the company in 2023:

1. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): EBITDA stands at -21.01%. This indicates that the company 's earnings before interest, taxes, depreciation, and amortization represent a negative percentage of its revenue. This might suggest that the company 's operating expenses are high relative to its revenue.

2. Net Worth: The net worth of the company is 6.62%. This represents the percentage of total assets that the company owns outright after deducting its total liabilities. A positive net worth percentage indicates that the company 's assets exceed its liabilities.

3. Debt/Equity Ratio: The debt/equity ratio is 0.58. This ratio indicates the proportion of debt and equity used to finance the company 's assets. A ratio of less than 1 indicates that the company relies more on equity financing than debt financing.

4. Return on Equity (ROE): The return on equity is -0.0639, indicating a negative return on shareholders ' equity. This suggests that the company 's net income is negative relative to its shareholder equity, which could be a concerning sign for investors.

5. Total Assets: Total assets have decreased by -4.03% compared to the previous period. This indicates a decrease in the company 's overall asset base, which could be due to various reasons such as asset write-offs, divestitures, or decreases in asset value.

6. Fixed Assets: Fixed assets have decreased by -4.78%. This suggests a decrease in the value of long-term assets like property, plant, and equipment. It could indicate asset impairment or a reduction in capital expenditure.

7. Current Assets: Current assets have decreased by -1.32%. This includes assets like cash, accounts receivable, and inventory. A decrease in current assets could indicate a reduction in liquidity or efficient management of working capital.

8. Current Liabilities: Current liabilities have decreased significantly by -33.99%. This indicates a decrease in the company 's short-term obligations such as accounts payable and accrued expenses. It could suggest improved liquidity or efficient management of liabilities.

9. Trade Receivables: Trade receivables have increased by 37.99%. This indicates an increase in the amount of credit extended to customers, which could potentially lead to liquidity issues if not managed properly.

10. Trade Payables: Trade payables have increased by 6.60%. This indicates an increase in the amount owed to suppliers, which could suggest favorable payment terms or increased purchasing activity.

11. Current Ratio: The current ratio is 1.89, which suggests that the company has more than enough current assets to cover its current liabilities. This indicates good short-term liquidity and the ability to meet short-term obligations.

Dividend History of Esds Software Solution Limited: N/A