Grand Foundry Limited Standalone Balance Sheet (Amt. in Lakhs)

Grand Foundry Limited Standalone Profit & Loss Statement (Amt. in Lakhs)

PARTICULARS	31st March, 2025	31st March, 2024
Revenue from operations	-	-
Other income	2.05	2.77
TOTAL INCOME	2.05	2.77
Purchase of stock in Trade	-	0.60
Employee benefits expense	2.04	1.36
Finance costs	38.75	34.12
Depreciation and amortisation expenses	-	-
Other expenses	29.32	18.06
TOTAL EXPENSES	70.11	54.14
PROFIT/(LOSS) BEFORE EXCPETIONAL ITEM AND TAX EXPENSE	(68.06)	(51.38)
Exceptional items	-	5.12
PROFIT/(LOSS) BEFORE TAX	(68.06)	(56.50)
Total Comprehensive Income for the period	(68.06)	(56.50)
Earnings per equity share
Basic (Rs. per share)	(0.22)	(0.19)
Diluted (Rs. per share)	(0.22)	(0.19)

Grand Foundry Limited Standalone Cash Flow Statement (Amt. in Lakhs)

PARTICULARS	31st March, 2025	31st March, 2024
CASH FLOW FROM OPERATING ACTIVITIES	-	-
Net Profit/(Loss) before tax	(68.06)	(56.50)
Adjustments related to Non cash and Non operating items
Operating profit before working capital changes	(68.06)	(56.50)
Adjustments for Changes in working capital:
Decrease/(Increase) in other current assets	(0.01)	0.43
Decrease/(Increase) in Short term Loans & Advances	2.09	-
Decrease/(Increase) in Trade Payables	(0.39)	(3.12)
Decrease/(Increase) in Current financial Liabilities	(1.56)	1.22
Other Current Liabilities	(1.68)	4.10
Cash generated from operations	(69.61)	(53.88)
Taxes paid / (received)	-	-
Net Cash from Operating Activities	(69.61)	(53.88)
CASH FLOW FROM INVESTING ACTIVITIES
Investment Activity	-	-
Net Cash used in Investing Activities	-	-
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds/(Repayment) of short term borrowings	69.38	53.27
Interest Income	-	-
Increase in Long Term Loans and advances	-	0.80
Net Cash from Financing Activities	69.38	54.07
Net Increase/(Decrease) in Cash and Cash Equivalents	(0.23)	0.19
Cash and Cash Equivalents at the beginning of the period	0.59	0.40
Cash and Cash Equivalents at the end of the period	0.36	0.59
Cash and Cash Equivalents at the end of the period comprise of:
Cash in Hand	0.01	-
Cheques in hand	-	-
Fixed Deposit	-	-
Balances with Banks in Current Accounts	0.35	0.59
	0.35	0.59

Cash Flow Analysis of Grand Foundry Limited

The cash flow statement of Grand Foundry Limited for the year ended 31 March 2025, with figures reported in lakhs, reflects continued pressure on the company’s operational performance and liquidity, with dependence on external financing to sustain its activities.

Operating activities resulted in a net cash outflow of ₹(69.61 lakhs) in FY2025 as compared to ₹(53.88 lakhs) in FY2024. This negative cash flow is primarily driven by the net loss before tax of ₹(68.06 lakhs), which increased from ₹(56.50 lakhs) in the previous year. Working capital changes had only a marginal impact, with slight movements in current assets, trade payables and current liabilities. The continued negative operating cash flow indicates that the company’s core business operations are not generating sufficient cash and are under financial strain.

Investing activities recorded no cash movement during the year, indicating that the company did not undertake any capital expenditure or new investment initiatives. This reflects a conservative financial approach, possibly due to limited internal resources and the need to preserve liquidity.

Financing activities remained the primary source of funds for the company. The business generated ₹69.38 lakhs from financing activities in FY2025, largely through short-term borrowings, compared with ₹54.07 lakhs in FY2024. This clearly shows reliance on external funding to support operations and meet liquidity requirements in the absence of operating cash inflows.

Consequently, cash and cash equivalents declined slightly to ₹0.36 lakhs at the end of FY2025 from ₹0.59 lakhs in FY2024. The closing balance mainly consists of bank balances, with negligible cash in hand.

Overall, the cash flow position suggests that Grand Foundry Limited is experiencing persistent operational cash losses and is dependent on borrowings to sustain its working capital needs. The absence of investing activity and continued operating deficits highlight the need for improved operational efficiency, cost control, and stronger revenue generation to achieve long-term financial stability and reduce dependence on external financing.

Grand Foundry Limited Financial Ratios

Insight of the financial ratios of Grand Foundry Limited For March 31, 2023

The financial ratios of Grand Foundry Limited indicate a weak liquidity position, stressed capital structure, and limited operational efficiency, despite some improvement in returns. The interpretation of each key ratio is as follows:

Current Ratio:
The current ratio declined sharply to 0.10 in FY2025 from 0.57 in FY2024, indicating a severe deterioration in short-term liquidity. A ratio well below 1 suggests that the company does not have sufficient current assets to meet its current liabilities, reflecting working capital stress and potential difficulty in meeting short-term obligations.

Debt–Equity Ratio:
The debt–equity ratio stands at (-99.08) in FY2025 compared to (-98.69) in FY2024. The negative ratio indicates that the company’s net worth is negative, likely due to accumulated losses. This reflects a highly leveraged and financially unstable capital structure, where liabilities exceed shareholders’ funds and long-term solvency risk remains high.

Return on Equity (ROE):
ROE improved slightly to 12.08% in FY2025 from 11.40% in FY2024. While this suggests marginally better returns generated on shareholders’ funds, the reliability of this ratio is limited due to the negative net worth position. Hence, the improvement should be interpreted cautiously.

Trade Payables Turnover Ratio:
The trade payables turnover ratio declined drastically to 0.00 in FY2025 from 33.04 in FY2024, indicating almost no movement in payables during the year. This may reflect reduced purchases, operational slowdown, or delays in creditor payments, and signals weakened business activity and strained supplier relationships.

Return on Capital Employed (ROCE):
ROCE improved marginally to 12.08% in FY2025 from 11.40% in FY2024, showing a slight enhancement in the efficiency of capital utilization. However, considering the company’s weak liquidity and negative net worth, this improvement does not necessarily indicate strong financial health and must be viewed in the broader context of financial stress.

Overall, the ratio analysis highlights that Grand Foundry Limited is facing liquidity constraints, negative net worth, and operational slowdown, although there is a marginal improvement in return metrics. The company needs to strengthen its capital base, improve working capital management, and enhance operational performance to achieve financial stability and restore stakeholder confidence.