GH2 Solar Annual Reports, Balance Sheet and Financials

GH2 Solar Limited Standalone Balance Sheet (Rs. In Lakhs)

Particular	31-03-2024	31-03-2023
Equity
Equity Share Capital	345.80	3.80
Other Equity	359.13	355.03
Share Application money pending allotment	222.60	-
Non-current liabilities
Long Term Borrowings	287.37	69.50
Long Term Provisions	16.69	6.50
Current liabilities
Short term borrowings	297.78	301.08
Trade Payables:
Total Outstanding due to other than Micro and Small Enterprises	3,403.96	1,183.45
Other current liabilities	158.57	53.31
Short term Provision	160.17	37.25
Total equity and liabilities	5,252.07	2,009.93
Non- Current assets
Property, Plant and Equipment	23.12	26.26
Intangible assets	1.37	-
Deferred tax assets (net)	6.32	0.07
Other non-current assets	253.21	7.88
Current assets
Inventories	305.08	-
Trade receivables	4,049.55	1,164.85
Cash and cash equivalents	279.60	3.66
Other current assets	333.82	807.21
Total Assets	5,252.07	2,009.93

GH2 Solar Limited Standalone Profit & Loss (Rs. In Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from operations	6476.80	6171.83
Other Income	3.47	0.31
Total income	6480.27	6172.14
Expenses
Cost of Material Consumed	4967.79	5743.36
Employee benefits expense	233.08	186.89
Finance costs	43.33	26.38
Depreciation and amortisation expense	8.00	11.78
Other expenses	729.23	74.34
Total expenses	5981.43	6042.76
Profit Before Tax	498.84	129.38
Current tax	159.00	37.10
Deferred lax charge/ (credit)	-6.25	-1.11
Profit for the year	346.09	93.38
Earnings per equity share (in Rs.)
Basic	10.01	2.70
Diluted	10.01	2.70

GH2 Solar Limited Standalone Cash Flow Statement (Rs. In Lakhs)

Particular	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit before taxation	498.84	129.38
Adjustments for:
Depreciation and amortisation expense	8.00	11.78
Interest on fixed deposits and others	-3.47	-0.31
Finance costs	43.33	26.38
Provision for gratuity and leave encashment	15.18	-
Operating Profit before Working Capital Changes	561.88	167.23
Adjustments for:
Decrease/(increase) in inventories	-305.08	-
Decrease/(increase) in Receivables	-2884.71	-408.58
Decrease/(increase) in other current assets	473.39	-570.27
Decrease/(increase) in other non-current as5ets	-	0.46
Increase/(Decrease) in trade payables	2220.51	669.19
Increase /(Decrease) in other current liabilities	105.26	-16.06
Increase /(Decrease) in other current liabilities	-3.96	-0.51
Cash generation from operations	167.29	-158.54
Income Tax Paid, net	-37.10	-19.03
Net Cash from Operating Activity	130.19	-177.57
Cash Flow from Investing Activities
Purchase of Fixed Assets	-6.23	-5.84
Interest received	3.47	0.31
Decrease/(increase) in Deposits having original maturity more than 3 months and other bank Balances	-245.33	-5.31
Net cash from/ (used in) investing activities	-248.09	-10.84
Cash Flow from Financing Activities
Long term Borrowings	217.87	-3.85
Short term Borrowings	-3.30	214.35
Amount received as share application money	222.60	-
Interest paid/ Finance cost	-43.33	-26.38
Net Cash from Financing Activities	393.84	184.11
Net Decrease in Cash and Cash Equivalents	275.94	-4.30
Opening balance of cash and cash equivalents	3.66	7.96
Closing balance of cash and cash equivalents	279.60	3.66

Here is a summary of the Cash Flow Statement for the years 2024 and 2023

Cash Flow from Operating Activities

In FY 2024, GH2 Solar reported a profit before tax of ₹498.84 lakhs, which is a substantial increase compared to ₹129.38 lakhs in FY 2023. After adjustments for depreciation, finance costs, and provisions, the operating profit before working capital changes rose to ₹561.88 lakhs, up from ₹167.23 lakhs last year. However, working capital movements had a major impact: trade receivables increased significantly (₹2,884.71 lakhs) indicating slower collections from customers, while inventories also rose slightly. On the positive side, trade payables increased by ₹2,220.51 lakhs, providing some relief in cash flow, and other current assets reduced by ₹473.39 lakhs, freeing up funds. Overall, after tax payments of ₹37.10 lakhs, the company managed a positive net operating cash flow of ₹130.19 lakhs compared to a negative ₹177.57 lakhs in FY 2023. This shows improvement, though receivable buildup remains a concern.

Cash Flow from Investing Activities

The company’s investing activities show a net outflow of ₹248.09 lakhs in FY 2024, much higher than the ₹10.84 lakhs outflow in FY 2023. This was mainly due to a significant increase in deposits and other bank balances (₹245.33 lakhs), indicating that funds were parked in longer-term instruments. Capital expenditure remained modest at ₹6.23 lakhs for asset purchases, while interest income of ₹3.47 lakhs provided a small inflow. Essentially, the company has tied up more cash in deposits this year, reducing available liquidity for immediate operations.

Cash Flow from Financing Activities

Financing activities were strong in FY 2024, providing a net inflow of ₹393.84 lakhs, compared to ₹184.11 lakhs in FY 2023. The company raised ₹217.87 lakhs in long-term borrowings, unlike last year when it repaid debt. Short-term borrowings reduced slightly by ₹3.30 lakhs, while the company also received ₹222.60 lakhs as share application money, which boosted cash reserves. On the outflow side, interest payments of ₹43.33 lakhs were higher than the prior year but well covered. This strong financing inflow reflects both equity support and debt infusion to strengthen the balance sheet.

Net Change in Cash and Cash Equivalents

Bringing all streams together, the company ended FY 2024 with a net increase of ₹275.94 lakhs in cash, compared to a small reduction of ₹4.30 lakhs in FY 2023. The closing cash balance rose sharply from ₹3.66 lakhs to ₹279.60 lakhs, which marks a major improvement in liquidity. This was primarily driven by financing inflows, while operations contributed positively but modestly, and investing activities consumed cash.

GH2 Solar Limited Financial Ratios

Particular	31-03-2024	31-03-2023
Current Ratio (in times)	1.24	1.25
Debt Equity Ratio (in times)	0.83	1.03
Debt Service Coverage Ratio (in times)	0.88	0.42
Return on Equity Ratio (in times)	0.65	0.30
Inventory Turnover Ratio (in times)	42.46	NA
Debtors Turnover Ratio (in times)	2.48	5.22
Creditors Turnover Ratio (in times)	2.29	6.77
Net Working Capital Turnover Ratio (in times)	6.84	15.41
Net Profit Ratio (in times)	0.05	0.02
Return on Capital Employed Ratio (in times)	0.44	0.36

Summary of the financial ratio for the years 2024 and 2023

Current Ratio

The current ratio is 1.24 in FY 2024 versus 1.25 in FY 2023, which means the company has almost the same level of current assets compared to its current liabilities. While it is slightly above 1, indicating that short-term obligations can be met, it is still on the lower side, suggesting tight liquidity. The company doesn’t have a large safety cushion for working capital.

Debt-Equity Ratio

The debt-equity ratio has improved to 0.83 in FY 2024 from 1.03 in FY 2023. This indicates that the company is slowly reducing reliance on external debt and strengthening its capital structure. A ratio below 1 is generally healthier, showing that equity funding is gradually taking precedence over borrowings.

Debt Service Coverage Ratio (DSCR)

DSCR increased significantly to 0.88 in FY 2024 from 0.42 in FY 2023. Although still below 1, which means the company does not generate enough operating cash to fully cover its debt servicing, the sharp improvement suggests that debt repayment capacity is strengthening.

Return on Equity (ROE)

ROE improved to 0.65 in FY 2024 compared to 0.30 in FY 2023. This shows that shareholders’ funds are being utilized more efficiently to generate returns. The improvement reflects better profitability, though the level remains modest and indicates potential for further growth.

Inventory Turnover Ratio

The inventory turnover ratio in FY 2024 is 42.46 times, which is very high. This means the company is able to sell and replace its inventory quickly, suggesting efficient stock management and possibly faster sales cycles. Since no data is available for FY 2023, it cannot be compared, but the current level is a very strong sign of operational efficiency.

Debtors Turnover Ratio

Debtors turnover fell to 2.48 times in FY 2024 from 5.22 times in FY 2023. This decline indicates that receivables are being collected more slowly, tying up cash in outstanding invoices. It reflects weaker credit control compared to last year, and may be an area of concern for liquidity.

Creditors Turnover Ratio

The creditors turnover ratio dropped sharply to 2.29 in FY 2024 from 6.77 in FY 2023. This suggests that the company is taking longer to pay its suppliers than before. While it helps conserve cash in the short term, it could affect supplier relationships if stretched too far.

Net Working Capital Turnover Ratio

This ratio declined to 6.84 in FY 2024 from 15.41 in FY 2023. The sharp fall means the efficiency of using working capital to generate revenue has reduced. This is consistent with slower receivable collections and higher working capital being tied up in the business.

Net Profit Ratio

Net profit ratio increased to 0.05 in FY 2024 from 0.02 in FY 2023. Though still low, it shows that profitability margins are improving. The company is moving towards better cost control and higher earnings, but absolute profitability remains weak.

Return on Capital Employed (ROCE)

ROCE rose to 0.44 in FY 2024 from 0.36 in FY 2023, indicating that overall capital (equity + debt) is being used more effectively to generate profits. The improvement reflects better operational efficiency and improved returns, though the ratio is still moderate.