Garg Acrylics Annual Reports, Balance Sheet and Financials

Garg Acrylics Limited Balance Sheet (Amt. In Lakhs)

Garg Acrylics Limited Profit & Loss Statement (Amt. In Lakhs)

Garg Acrylics Limited Consolidated Cash Flow Statement (Amt. In Lakhs)

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

 Cash Flow from Operating Activities:

1. Net Cash Flow from Operating Activities:

   - In 2023, the net cash flow from operating activities amounted to ₹14,273.48 lakhs, indicating positive cash flow from the company 's core business operations.

   - In 2022, the net cash flow from operating activities was ₹18,153.31 lakhs.

2. Operating Profit Before Working Capital Changes:

   - In 2023, the operating profit before changes in working capital was ₹9,717.76 lakhs.

   - In 2022, the operating profit before changes in working capital was ₹34,595.14 lakhs.

3. Adjustments for Changes in Working Capital:

   - In 2023, there were significant changes in working capital, with increases in trade receivables and inventories, and a decrease in trade payables and other liabilities.

   - In 2022, there were also notable changes in working capital, with decreases in trade and other receivables and inventories, and an increase in trade payables and other liabilities.

 Cash Flow from Investing Activities:

1. Net Cash Flow from Investing Activities:

   - In 2023, the net cash used in investing activities was -₹3,692.68 lakhs.

   - In 2022, the net cash used in investing activities was -₹3,080.33 lakhs.

2. Investing Activities Include:

   - Purchase and sale of fixed assets and investments.

   - Interest income earned from investments.

 Cash Flow from Financing Activities:

1. Net Cash Flow from Financing Activities:

   - In 2023, the net cash flow from financing activities was -₹10,572.56 lakhs.

   - In 2022, the net cash flow from financing activities was -₹14,840.5 lakhs.

2. Financing Activities Involve:

   - Proceeds or repayment from long-term and short-term borrowings.

   - Redemption of preference shares.

   - Payment of interest on borrowings.

 Cash & Cash Equivalents Analysis:

1. Net Increase in Cash and Cash Equivalents:

   - In 2023, there was a slight increase of ₹8.24 lakhs in cash and cash equivalents.

   - In 2022, there was a more significant increase of ₹232.49 lakhs.

2. Cash and Cash Equivalents at the Beginning and End of the Year:

   - The company had ₹483.27 lakhs of cash and cash equivalents at the beginning of 2023, which increased to ₹491.51 lakhs by the end of the year.

   - Similarly, in 2022, the company had ₹250.78 lakhs of cash and cash equivalents at the beginning of the year, which increased to ₹483.27 lakhs by the end of the year.

Financial Ratios of Garg Acrylics Limited:

Insights into the financial health and performance of the company in 2023 and 2022:

1. Current Ratio:

   - Explanation: Both years show a current ratio above 1, indicating that the company 's current assets are sufficient to cover its current liabilities. The slight increase from 2022 to 2023 suggests a slight improvement in the company 's liquidity position.

2. Debt – Equity Ratio:

   - Explanation: The decrease in the debt-equity ratio from 2022 to 2023 indicates a decrease in the proportion of debt relative to equity in financing the company 's assets. This may suggest improved financial stability or a shift towards more equity financing.

3. Debt Service Coverage Ratio:

   - Explanation: The significant decrease in the debt service coverage ratio from 2022 to 2023 suggests a deterioration in the company 's ability to cover its debt obligations from its operating income. This could indicate increased financial risk or a decrease in profitability.

4. Return on Equity (ROE):

   - Explanation: The decrease in ROE from 2022 to 2023 indicates a decrease in the company 's profitability relative to its equity. This could be due to various factors such as lower net income or increased equity.

5. Inventory Turnover:

   - Explanation: The decrease in inventory turnover from 2022 to 2023 indicates that the company 's inventory is taking longer to sell or turn over. This may suggest issues with inventory management or changes in sales patterns.

6. Trade Receivables Turnover Ratio:

   - Explanation: The decrease in the trade receivables turnover ratio from 2022 to 2023 suggests that the company is taking longer to collect payments from its customers. This may indicate issues with credit policies or changes in customer payment behavior.

7. Trade Payables Turnover Ratio:

   - Explanation: The slight decrease in the trade payables turnover ratio from 2022 to 2023 indicates that the company is taking slightly longer to pay its suppliers. This could be due to changes in payment terms or supplier relationships.

8. Net Capital Turnover Ratio:

   - Explanation: The decrease in the net capital turnover ratio from 2022 to 2023 suggests that the company is generating slightly less revenue per unit of capital employed. This could indicate a decrease in efficiency or changes in the company 's business operations.

9. Net Profit Ratio:

   - Explanation: The decrease in the net profit ratio from 2022 to 2023 indicates a decrease in the company 's net profit margin. This could be due to various factors such as increased expenses or decreased revenue.

10. Return on Capital Employed (ROCE):

    - Explanation: The decrease in ROCE from 2022 to 2023 indicates a decrease in the company 's profitability relative to its capital employed. This could be due to lower profits or an increase in capital employed.

11. Return on Investment (ROI):

    - Explanation: These ratios measure the return on investment for both unquoted and quoted investments. Negative values indicate losses or negative returns, while positive values indicate profits or positive returns. The significant fluctuations between years may indicate changes in the performance of the investments or shifts in investment strategies..

Dividend History of Garg Acrylics Limited: