I Secure Credit and Capital Services Limited Latest Annual Report, Balance Sheet and Financials

I Secure Credit and Capital Balance Sheet (Rs in Lakhs)

I Secure Credit and Capital Profit & Loss Statement (Rs in Lakhs)

 I Secure Credit and Capital Consolidated Cash Flow Statement (Rs in Lakhs)

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

Operating Activities

Profit Before Tax (PBT):
The company reported a negative profit before tax of Rs. -9.05 Lakhs for FY 2024, a slight improvement from the previous year’s loss of Rs. -26.76 Lakhs. This suggests that while the company still made a loss, the losses have been reduced compared to the previous year.

Adjustments for Non-Cash Items:
Several adjustments have been made to the profit to reflect non-cash transactions or transactions that do not impact cash directly:

·         Interest Expenses: The Company incurred Rs. 111.05 Lakhs in interest expenses in FY 2024, a significant increase compared to Rs. 18.97 Lakhs in FY 2023. This suggests that the company’s financing cost has increased, which is reflected in the cash flow.

·         Provision for Doubtful Debt: A small provision of Rs. 0.10 Lakhs was made for doubtful debts in FY 2024, indicating that the company anticipates some receivables may not be collectible.

·         Depreciation, Amortization, and Impairment: The depreciation and amortization charges increased slightly to Rs. 2.15 Lakhs in FY 2024 compared to Rs. 1.52 Lakhs in FY 2023. Depreciation is a non-cash charge that reduces taxable income but does not affect cash flow.

·         Impairment on Financial Instruments: There was an impairment of Rs. -49.44 Lakhs in FY 2024, which was a reversal of Rs. 51.15 Lakhs in FY 2023. This fluctuation could be due to changes in the value of financial assets, such as investments or loans.

·         Net Unrealised Fair Value (Gain)/Loss: This is a non-cash item showing a loss of Rs. -0.79 Lakhs in FY 2024, compared to a small gain of Rs. 0.04 Lakhs in FY 2023. This likely refers to changes in the fair value of investments that the company holds, which are not yet realized through a sale or transaction.

Operating Profit Before Working Capital Changes:
After adjustments for non-cash items, the operating profit before working capital changes stands at Rs. 54.02 Lakhs in FY 2024, which is an increase from Rs. 44.93 Lakhs in FY 2023.

Changes in Working Capital:
Working capital refers to the difference between current assets and current liabilities. The company’s cash flows were impacted by the following working capital changes:

·         Increase in Trade Receivables: Trade receivables increased by Rs. 42.58 Lakhs in FY 2024, compared to an increase of Rs. 79.55 Lakhs in FY 2023. A higher increase in trade receivables means the company has made more sales on credit, which ties up cash.

·         Increase/Decrease in Other Non-Financial Assets: A slight decrease of Rs. -0.57 Lakhs in FY 2024 was noted, compared to an increase of Rs. 0.03 Lakhs in FY 2023, which has a minimal impact on cash flow.

·         Increase/Decrease in Loans & Advances: A significant outflow of Rs. -1,275.69 Lakhs in FY 2024, compared to an outflow of Rs. -111.01 Lakhs in FY 2023, indicates that the company made large advances or loans, tying up cash.

·         Increase in Payables: The Company experienced a small increase in payables of Rs. 3.01 Lakhs in FY 2024, compared to a decrease of Rs. -39.67 Lakhs in FY 2023. This indicates that the company is delaying payments to suppliers, which helps conserve cash.

·         Other Financial and Non-Financial Liabilities: There was an increase of Rs. 6.35 Lakhs in FY 2024. This may reflect changes in provisions or accruals.

·         Deferred Tax: The Company saw a small increase of Rs. 0.05 Lakhs in FY 2024, compared to a reduction of Rs. -25.45 Lakhs in FY 2023, which could be due to the change in deferred tax assets or liabilities.

Cash Generated from Operations:
After accounting for the changes in working capital, the company generated cash of Rs. -1,162.22 Lakhs in FY 2024, compared to Rs. -51.62 Lakhs in FY 2023. The negative cash generation indicates that operational activities are consuming cash, primarily due to increased loans/advances and receivables.

Direct Tax Paid:
The company paid Rs. 5.50 Lakhs in direct taxes in FY 2024, a decrease compared to Rs. 31.00 Lakhs in FY 2023, which reflects a reduction in taxable income due to losses.

Net Cash from Operating Activities:
The company used Rs. -1,167.72 Lakhs in operating activities in FY 2024, compared to Rs. -82.62 Lakhs in FY 2023, indicating that the operational cash flow worsened significantly.

Financing Activities

Increase/Decrease in Borrowings:
The company raised Rs. 1,138.51 Lakhs in FY 2024 from borrowings, compared to a reduction of Rs. -421.17 Lakhs in FY 2023. This significant increase indicates that the company took on more debt to fund its operations, likely to offset the negative cash flows from operations.

Lease Liabilities:
There was a minor adjustment of Rs. -1.56 Lakhs in lease liabilities in FY 2024, compared to an increase of Rs. 1.56 Lakhs in FY 2023, which reflects the company 's lease obligations.

Interest Paid:
The company paid Rs. 111.05 Lakhs in interest in FY 2024, a sharp increase from Rs. 18.97 Lakhs in FY 2023, in line with the higher borrowings.

Net Cash from Financing Activities:
The company generated Rs. 1,025.90 Lakhs from financing activities in FY 2024, compared to a net outflow of Rs. -438.58 Lakhs in FY 2023. This shows that while the company faced negative cash flow from operations, it was able to raise funds through borrowing to support its liquidity needs.

Investment Activities

Purchase of Fixed Assets:
The company spent Rs. 0.64 Lakhs on the purchase of fixed assets in FY 2024, compared to Rs. 3.31 Lakhs in FY 2023, reflecting a relatively small investment in capital assets.

Net Cash from Investing Activities:
The net cash used in investing activities was Rs. -0.64 Lakhs in FY 2024, compared to Rs. -3.31 Lakhs in FY 2023, showing minor investments made during the period.

Net Increase/Decrease in Cash and Cash Equivalents

The company saw a decrease in cash and cash equivalents of Rs. -142.46 Lakhs in FY 2024, compared to a larger decrease of Rs. -524.52 Lakhs in FY 2023. This indicates that, although the company had substantial cash outflows from operations, it managed to offset part of this with borrowings.

Cash and cash Equivalents at the beginning of the year

·         Beginning of Year: The Company started with Rs. 190.09 Lakhs in cash and cash equivalents at the beginning of FY 2024, down from Rs. 714.61 Lakhs at the beginning of FY 2023, reflecting the reduction in cash reserves over time.

·         End of Year: The Company ended FY 2024 with Rs. 47.63 Lakhs in cash and cash equivalents, down from Rs. 190.09 Lakhs in FY 2023, indicating a significant depletion of its cash reserves over the year.

Financial Ratios of I Secure Credit and Capital

Here is a summary of the financial and operational metrics for I Secure Credit and Capital for the year 2024 and 2023:

Current Ratio (11.27:1 in 2024 vs. 52.75:1 in 2023)

The current ratio measures the company’s ability to meet its short-term liabilities with its short-term assets. In 2024, the ratio is 11.27:1, indicating that the company has ample liquidity to cover its current liabilities. However, the significant drop from 52.75:1 in 2023 suggests a shift towards more efficient management of current assets.

Operating Profit Ratio (-7.75% in 2024 vs. -30.32% in 2023)

The operating profit ratio indicates the company’s operational efficiency by showing how much operating profit is generated per unit of sales. In 2024, the ratio is -7.75%, meaning the company is still incurring operating losses, but the loss is less severe than the -30.32% in 2023.

Net Profit Margin (-7.87% in 2024 vs. -38.64% in 2023)

The net profit margin measures the percentage of revenue that translates into net profit. In 2024, the company’s margin is -7.87%, indicating a smaller net loss relative to sales compared to the -38.64% in 2023.

Return on Net Worth (-0.01 in 2024 vs. -0.03 in 2023)

Return on net worth indicates how effectively the company generates profit from shareholders ' equity. In 2024, the return is -0.01, showing a slight improvement in returns compared to -0.03 in 2023.

Debt/Equity Ratio (1.06 in 2024 vs. - in 2023)

The debt/equity ratio measures the company’s financial leverage by comparing debt to equity. In 2024, the ratio is 1.06, meaning the company has Rs. 1.06 of debt for every Rs. 1 of equity. There is no comparison available for 2023, so the trend or changes in financial leverage cannot be analyzed for the prior year.

Capital to Risk-Weighted Assets Ratio (CRAR) (48.87% in 2024 vs. 114.99% in 2023)

The Capital to Risk-Weighted Assets Ratio (CRAR) measures the company 's capital adequacy in relation to the risks associated with its assets. In 2024, the CRAR is 48.87%, indicating a relatively high level of capital to cover potential risks. However, this is a significant drop from 114.99% in 2023, which suggests the company’s capital base has decreased or its risk-weighted assets have increased, potentially reflecting a reduced buffer to absorb losses.

Dividend history

Due to loss, the Board of Directors of Company has not recommended any dividend during the year under review.