Ganodaya Finlease Annual Reports, Balance Sheet and Financials

Ganodaya Finlease Limited Balance Sheet (Rs in Thousands)

Ganodaya Finlease Limited Profit & Loss Statement (Rs in Thousands)

 Ganodaya Finlease Limited Consolidated Cash Flow Statement (Rs in Thousands)

 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 in 2024 was Rs. 66,866.04, a significant increase compared to Rs. 2,323.08 in 2023. This large improvement indicates a substantial growth in the company’s operational performance. However, there were various adjustments made to this figure to calculate the actual cash flow from operating activities.

Depreciation: In 2024, depreciation was Rs. 654.74, an increase from Rs. 598.14 in 2023, reflecting a higher depreciation charge, likely due to more fixed assets being added or the existing assets being written down.

Dividend Received: In both years, the company received dividends, with Rs. -61.08 in 2024 and Rs. -36.30 in 2023. This is a relatively minor cash inflow compared to other figures.

Re-measurement gains/losses on employee defined benefit plans: There was a loss of Rs. -113.08 in 2024, which contrasts with a gain of Rs. 92.58 in 2023. This adjustment reflects changes in pension or retirement benefit obligations.

Profit/Loss on sale of investments: The loss on sale of investments was Rs. -1,381.05 in 2024, slightly lower than Rs. -1,504.56 in 2023, indicating the company’s trading or disposal of investments resulted in a smaller loss this year.

Investments in Mutual Funds measured at FVTPL (Fair Value Through Profit or Loss): A significant inflow of Rs. 75,256.45 was reported in 2024, compared to an outflow of Rs. -11,547.23 in 2023, showing that the company had a large movement in its mutual fund investments during the year, likely due to market conditions.

After adjusting for these items, the cash flow from operating activities before working capital changes was negative at Rs. -9,491.97 in 2024, but slightly improved compared to Rs. -10,074.30 in 2023.

Changes in working capital further affected the cash flow:

Decrease in Inventories: In 2024, inventories decreased by Rs. -8,051.4, a significant reduction from an increase in 2023 (Rs. 459.78). This reduction in inventories reflects either higher sales or a strategy to reduce stock levels.

Decrease in Loans: A minor decrease of Rs. 2.5 was recorded for loans in 2024.

Increase in other financial liabilities: The increase in other financial liabilities was Rs. -1,941.35, reflecting changes in financial obligations, possibly due to higher borrowings or liabilities.

Increase in provisions: Provisions increased by Rs. 316.95, indicating that the company set aside more money for potential future liabilities, such as bad debts or legal claims.

Increase in other non-financial liabilities: A minor increase of Rs. 68.09 was noted in 2024.

Decrease in other current tax assets: A decrease of Rs. -426.03 was recorded, which likely reflects the use of tax assets.

Taxes Paid: Taxes paid were Rs. -3,679.68 in 2024, compared to Rs. -4,190.36 in 2023. The decrease in taxes paid suggests a lower tax burden in 2024, possibly due to the reduced taxable income or tax adjustments.

After these working capital adjustments, the net cash flow from operating activities was negative at Rs. -17,689.04 in 2024, but slightly worse than the negative cash flow of Rs. -10,807.30 in 2023. The company continued to face negative cash flow from its core operations, largely due to changes in working capital and non-operating adjustments.

Cash Flow from Investing Activities:

In 2024, the company had a mix of inflows and outflows in its investing activities.

Purchase of Fixed Assets: A significant outflow of Rs. -2,215.04 was recorded in 2024, up from Rs. -158.68 in 2023, suggesting increased investments in property, plant, and equipment, possibly reflecting expansion or upgrades.

Sale of Fixed Assets: In 2024, the company realized Rs. 820 from the sale of fixed assets.

Dividend Received: The company received Rs. 61.08 in dividends, consistent with the Rs. 36.30 received in 2023.

Purchase of Investments: A large outflow of Rs. -5,429.92 was reported for investment purchases in 2024, compared to Rs. -1,39,550.46 in 2023. This significant decrease in investment purchases in 2024 may suggest that the company reduced its exposure to long-term financial assets.

Sale of Investments: A strong inflow of Rs. 23,502.31 was recorded in 2024 from the sale of investments, indicating that the company liquidated a portion of its portfolio.

The net cash flow from investing activities in 2024 was Rs. 16,738.42, a notable improvement from the previous year’s inflow of Rs. 8,348.96, largely due to higher proceeds from the sale of investments.

Cash Flow from Financing Activities:

The company had a modest financing activity in 2024.

Increase/Decrease in Borrowings: Borrowings increased by Rs. 872.52 in 2024, compared to no borrowings in 2023. This suggests that the company took on new debt, possibly to fund its operations or investments.

Thus, the net cash flow from financing activities was Rs. 872.52 in 2024, indicating that financing activities provided a small inflow of cash to the company.

Net Change in Cash and Cash Equivalents:

The net change in cash and cash equivalents was a decrease of Rs. -78.10 in 2024, compared to a larger decrease of Rs. -2,458.34 in 2023. This small decrease in 2024 is primarily due to the negative cash flow from operating activities, even though there was a strong inflow from investing activities.

Opening Balance of Cash & Cash Equivalents: The opening cash balance at the beginning of 2024 was Rs. 443.55, down from Rs. 2,901.89 at the beginning of 2023.

Closing Balance of Cash & Cash Equivalents: The company’s closing cash balance at the end of 2024 was Rs. 365.45, indicating a slight decline in available cash despite the positive cash flow from investing activities.

Financial Ratios of Ganodaya Finlease Limited

Here is a summary of the financial and operational metrics for Ganodaya Finlease Limited for the year 2024 and 2023:

Capital to Risk Weighted Assets Ratio (CRAR)

The Capital to Risk Weighted Assets Ratio (CRAR) is a key measure of a company’s financial health, particularly for banks and financial institutions. It shows the percentage of a bank's capital in relation to its risk-weighted assets (assets adjusted for risk). A CRAR of 0.81 in 2023-24, compared to 0.88 in 2022-23, suggests a slight decline in the capital adequacy ratio.

Tier I CRAR

Tier I capital refers to a bank's core capital, which includes equity capital and disclosed reserves. It is the highest quality of capital available to absorb losses. The Tier I CRAR ratio of 0.26 in 2023-24 is lower than the 0.35 ratio in 2022-23, indicating a decrease in the proportion of core capital available to cover risks. A ratio of 0.26 is quite low, which could be a signal that the institution is more reliant on Tier II capital (subordinated debt and hybrid instruments) to meet regulatory capital requirements. Tier II CRAR

Tier II capital includes less secure forms of capital, such as subordinated debt and hybrid instruments, which can absorb losses but are not as reliable as Tier I capital. The Tier II CRAR of 0.54 in 2023-24 is slightly higher than 0.53 in 2022-23, reflecting a marginal increase in the reliance on Tier II capital. While this may not necessarily be a negative sign, the increase suggests that the institution may be leaning more on Tier II capital to meet capital adequacy requirements.

Liquidity Coverage Ratio (LCR)

The Liquidity Coverage Ratio (LCR) is a measure of a bank’s ability to withstand short-term liquidity disruptions. It represents the proportion of liquid assets a bank holds relative to its short-term obligations. A higher ratio indicates better liquidity and an ability to cover potential outflows in a crisis situation.