Genesis Finance Annual Reports, Balance Sheet and Financials

Genesis Finance Company Limited Balance Sheet (Amt. In Lakhs)

Genesis Finance Company Limited Profit & Loss Statement (Amt. In Lakhs)

Genesis Finance Company 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. Profit Before Tax (PBT):

   - In 2023, the company reported a Profit Before Tax (PBT) of ₹1,352.60 lakhs, representing its earnings before tax obligations. This is higher than the PBT of ₹1,191.97 lakhs reported in 2022.

2. Cash Generated from Operations (Before Working Capital Changes):

   - The cash generated from operations before considering changes in working capital was -₹331.44 lakhs in 2023 and -₹590.61 lakhs in 2022. This indicates the cash flow generated from the company 's core business activities before adjustments for changes in working capital.

3. Net Cash Generated from Operating Activities:

   - After considering adjustments for changes in working capital, the net cash generated from operating activities was -₹356.37 lakhs in 2023 and -₹5,869.82 lakhs in 2022. This reflects the final cash flow result from the company 's operating activities after accounting for all operating expenses, income, and changes in working capital.

Cash Flow from Investing Activities:

4. Net Cash from Investing Activities:

   - In 2023, the company had a net cash inflow of ₹1,794.16 lakhs from investing activities, primarily due to proceeds from the sale of property, plant & equipment. Conversely, in 2022, there was a net cash outflow of -₹429.1 lakhs, mainly attributed to investments in property, plant & equipment.

Cash Flow from Financing Activities:

5. Net Cash Used in Financing Activities:

   - The net cash used in financing activities amounted to -₹1,428.31 lakhs in 2023, primarily from borrowing activities. In contrast, in 2022, there was a net cash inflow of ₹3,638.27 lakhs, mainly from borrowing activities.

Net Increase / (Decrease) in Cash and Cash Equivalents:

6. Net Increase / (Decrease) in Cash:

   - The net increase in cash and cash equivalents was ₹9.49 lakhs in 2023 and ₹4.07 lakhs in 2022. This represents the change in the company 's cash position over the respective years.

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

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

   - The company began 2023 with cash and cash equivalents of ₹9 lakhs, which increased to ₹18.49 lakhs by the end of the year. Similarly, in 2022, it began with ₹4.93 lakhs and ended with ₹9 lakhs.

Financial Ratios of Genesis Finance Company Limited:

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

1. Current Ratio:

   - The current ratio measures a company 's ability to pay its short-term liabilities with its short-term assets. In 2023, the current ratio was 3.97, indicating an improvement from 3.66 in 2022. This suggests that the company 's liquidity position strengthened as it had more current assets relative to its current liabilities.

2. Debt-Equity Ratio:

   - The debt-equity ratio indicates the proportion of debt and equity financing used by the company. In 2023, the ratio decreased to 1.56 from 1.86 in 2022. This reduction suggests a decrease in financial leverage and reliance on debt to finance operations, which may signify improved financial stability.

3. Debt Service Coverage Ratio:

   - The debt service coverage ratio assesses a company 's ability to cover its debt obligations with its operating income. In 2023, the ratio decreased slightly to 2.68 from 2.75 in 2022. Although slightly lower, it still indicates that the company 's operating income is sufficient to cover its debt payments.

4. Return on Equity (ROE) Ratio:

   - ROE measures a company 's profitability relative to its shareholders ' equity. In 2023, the ROE increased to 19.26% from 17.38% in 2022, indicating that the company generated higher profits per unit of shareholders ' equity, reflecting improved profitability.

5. Net Capital Turnover Ratio:

   - The net capital turnover ratio assesses a company 's efficiency in generating revenue relative to its capital employed. In both 2023 and 2022, the ratio remained constant at 0.54 times, suggesting that the company 's revenue generation efficiency remained stable over the years.

6. Net Profit Ratio:

   - The net profit ratio measures the portion of revenue that translates into net profit. In 2023, the ratio slightly increased to 30.14% from 29.84% in 2022, indicating that the company retained a slightly higher proportion of revenue as profit in 2023.

7. Return on Capital Employed (ROCE) Ratio:

   - ROCE evaluates the efficiency of a company in generating profits from its capital employed. In 2023, the ROCE increased to 7.60% from 7.42% in 2022, suggesting improved profitability relative to the capital invested in the business.

8. Capital to Risk Weighted Assets Ratio:

   - The capital to risk-weighted assets ratio (CRAR) assesses a bank 's capital adequacy relative to its risk-weighted assets. In 2023, the CRAR slightly decreased to 61.88% from 62.18% in 2022, indicating a slight decrease in the capital adequacy ratio.

Dividend History of Genesis Finance Company Limited: