Goalpost Industries Annual Report & Financials

Goalpost Industries Limited Balance Sheet (Amount in Rs.)

Goalpost Industries Limited Profit & Loss Statement (Amount in Rs.)

 Goalpost Industries Limited Consolidated Cash Flow Statement (Amount in Rs.)

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

Cash Flow from Operating Activities:

In this section, we observe a significant shift in the company’s cash position. The company’s net profit before tax and after exceptional items for the year ending March 31, 2024, was Rs. 428.28 ., a sharp decline from Rs. 3,534.34 . in the previous year. However, despite the positive net profit, adjustments for items such as allowances for credit impaired or expected credit losses (Rs. 26.11 .), depreciation (Rs. 102.38 .), and interest payments on borrowings (Rs. 159.19 .) were made to reconcile to the actual cash flow from operations.

The large negative cash flow from working capital changes is a key factor contributing to the overall reduction in cash from operating activities. Notably, the company experienced a significant increase in inventories (Rs. -34,354.03 .) and trade receivables (Rs. -67,609.50 .). These represent a cash outflow as the company’s funds are tied up in goods that are yet to be sold and receivables that have not been collected. Additionally, there was a decrease in other financial assets and current assets, which also contributed to the cash outflow. The only working capital item showing a slight inflow was the increase in other current liabilities (Rs. 5.11 .).

As a result of these changes, the cash generated from operations turned negative at Rs. -1,09,101.78 .. After accounting for direct taxes paid (Rs. -339.93 .), the net cash flow from operating activities for the year was a significant outflow of Rs. -1,09,441.72 .. This marked a stark contrast from the previous year, where the company had a positive cash flow from operations of Rs. 3,765.27 ..

 Cash Flow from Investing Activities:

The investing activities section shows a positive cash flow of Rs. 4,565.19 . for the year ending March 31, 2024, as compared to a negative cash flow of Rs. -2,643.77 . in the previous year. The major inflow in this category came from an increase in loans and advances (Rs. 4,330.82 .), indicating that the company may have recovered some loans or disbursed new loans that resulted in cash inflows. The company also received interest income (Rs. 234.37 .) during the year. Despite the overall negative cash flow from operating activities, the positive flow from investing activities partially helped offset the losses from operations.

 The financing activities section recorded a significant inflow of Rs. 103,747.07 ., primarily due to the proceeds from the issue of share warrants (Rs. 103,906.26 .). This suggests that the company raised substantial capital through the issuance of new shares or warrants. This financing activity helped to boost the company’s cash position significantly. However, the company also paid interest on borrowings (Rs. -159.18 .) and dividends (Rs. -73.50 .), but these were relatively minor outflows compared to the inflows from share issuance.

 Net Cash Flow During the Year:

The net result of all these activities was a cash outflow of Rs. -1,129.46 . for the year. This is a reversal from the positive cash flow of Rs. 1,032.29 . in the previous year. The net outflow during the year was primarily driven by the large negative cash flow from operating activities, despite the inflows from financing and investing activities.

 Cash and Cash Equivalents:

At the end of the year, the company’s cash and cash equivalents stood at Rs. 676.12 ., down from Rs. 1,805.59 . at the beginning of the year. The significant decrease in cash and cash equivalents reflects the overall negative cash flow during the year. The closing balance includes Rs. 466.18 . in cash on hand and Rs. 209.94 . in balances with banks.

Financial Ratios of Goalpost Industries Limited

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

Current Ratio (in times):

The current ratio measures the company’s ability to meet its short-term liabilities with its short-term assets. A ratio of 414.92 for 2024 is extraordinarily high compared to the typical benchmark of 2:1, which suggests that the company has an ample buffer of current assets to cover its liabilities.

Debt Service Coverage Ratio (in times):

The debt service coverage ratio (DSCR) assesses the company 's ability to service its debt obligations (interest and principal payments) from its operating income. A ratio of 0.11 in 2024 means that the company generated only 11% of the income required to cover its debt servicing costs, which is a concerning sign. A DSCR below 1.0 suggests that the company is not generating enough operating income to cover its debt payments and may face challenges in meeting its financial obligations.

Return on Equity (ROE) Ratio (in %):

Return on equity (ROE) measures the profitability of the company relative to shareholders ' equity, indicating how effectively the company is using its equity capital to generate profit. A drop from 30.93% in 2023 to just 0.80% in 2024 suggests a severe decline in profitability.

Inventory Turnover Ratio (no. of days):

The inventory turnover ratio indicates how quickly a company sells its inventory and is calculated as the number of days it takes to sell all the inventory. For 2024, the company’s inventory turnover ratio is 3.9 days, which is quite efficient.

Trade Receivables Turnover Ratio (in times):

The trade receivables turnover ratio measures how often the company collects its receivables during the period. A ratio of 2.08 times means that the company collects its trade receivables about twice a year, or roughly every 180 days. This suggests that the company is taking a long time to collect payments from its customers. Net Capital Turnover Ratio (in times):

The net capital turnover ratio measures how efficiently the company is using its capital to generate revenue. A decline from 4.58 times in 2023 to 0.64 times in 2024 suggests a sharp decrease in the efficiency with which the company is utilizing its capital.

Net Profit Ratio (in times):

The net profit ratio indicates the percentage of revenue that translates into profit. A drop from 0.36 times in 2023 to just 0.01 times in 2024 signifies a dramatic fall in profitability. In 2024, the company is earning only 1% of every unit of sales as profit, which indicates either very low profit margins.

Return on Capital Employed (ROCE) Ratio (in %):

Return on capital employed (ROCE) measures the company’s ability to generate profits from its capital employed. A fall from 38.07% in 2023 to 0.52% in 2024 highlights a severe decline in the company’s ability to generate returns on the capital it has invested.