Jaro Institute Annual Report, Balance Sheet & Revenue

Jaro Institute of Technology Management and Research Limited Balance Sheet (Rs in lakhs)

Particulars	31-03-2024	31-03-2023
ASSETS
Non-Current Assets
Property, Plant and Equipment	196.93	301.55
Right Of Use Assets	1,529.30	1,666.19
Non-Current Investments	-	1,637.81
Other Financial Assets	628.17	424.68
Non-current Tax Assets (net)	1,512.70	1,017.00
Total Non-current Assets	3,867.10	5,047.23
Current Assets
Trade Receivables	1,023.10	691.7
Cash and Cash Equivalents	1,843.48	719.15
Other Bank Balances	7.74	601.29
Loans	5.29	2,172.90
Other Financial Assets	452.71	525.53
Other Current Assets	12,830.62	6,505.44
Total Current Assets	16,162.95	11,216.01
TOTAL ASSETS	20,030.05	16,263.24
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital	1,504.13	1,504.10
Other Equity	10,130.15	6,026.28
Total Equity	11,634.28	7,530.38
LIABILITIES
Non-Current Liabilities
Borrowings	55.5	341.78
Lease Liabilities	991.98	1,191.59
Provisions	142.65	89.91
Deferred Tax Liability (net)	934.17	186.2
Total Non-current Liabilities	2,124.30	1,809.48
Current Liabilities
Borrowings	2,429.22	3,036.81
Lease Liabilities	576.61	447.55
Trade Payables
Total Outstanding Dues of Micro and Small Enterprises	36.04	33.85
Total Outstanding Dues Other Than Micro and Small Enterprises	1,876.89	2,030.72
Other Financial Liabilities	105.8	396
Other Current Liabilities	1,082.76	1,048.48
Provisions	47.32	46.79
Total Current Liabilities	6,271.47	6,923.37
Total Liabilities	8,395.77	8,732.86
TOTAL EQUITY AND LIABILITIES	20,030.05	16,263.24

Jaro Institute of Technology Management and Research Limited Profit & Loss Statement (Rs in lakhs)

Particulars	31-03-2024	31-03-2023
INCOME
Revenue from Operations	19,906.57	12,214.51
Other Income	353.17	245.66
Total Income	20,259.75	12,460.17
EXPENSES
Employee Benefits Expenses	6,203.79	4,480.24
Finance Costs	480.01	452.79
Depreciation and Amortization Expenses	684.89	542.66
Other Expenses	7,586.15	5,411.21
Total Expenses	14,954.84	10,886.90
Profit Before Exceptional Items and Tax	5,304.91	1,573.27
Less: Diminution in Value of Investments	-	-
Profit Before Tax	5,304.91	1,573.27
Income Tax Expense
Current Tax	333.49	687.72
Adjustment of Tax Relating to Earlier Periods	-	-81.09
Deferred Tax	754.66	88.06
Total Income Tax Expense	1,361.29	421.55
Profit for the Year	3,943.63	1,151.72
Remeasurement Gain/(Loss) of Net Defined Benefit Plan	-26.55	-15.88
Income Tax Effect on Above	6.68	4
Other Comprehensive Income/(Loss) for the Year, Net of Tax	-19.87	-11.88
Total Comprehensive Income for the Year	3,923.76	1,139.84
Equity Shares of Par Value INR 10 Each
Basic EPS (in INR)	19.62	5.73
Diluted EPS in (INR)	19.43	5.69

Jaro Institute of Technology Management And Research Limited Cash Flow Statement (Rs in lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit Before Tax	5,304.91	1,573.27
Depreciation and Amortization Expenses	684.89	542.66
Allowances for Expected Credit Losses ("ECL")	32.39	104.62
Share-Based Compensation Expense	180.11	378.01
Finance Costs	486.48	466.92
Gain on Termination of Lease	-17.84	-
Interest Income	-332.81	-244.49
Bad Debts Written Off	0.59	248.12
Dividend Income on Mutual Fund	-	0
(Gain)/Loss on Sale of Property, Plant and Equipment	0.41	-
Unrealized Exchange Loss/(Gain), Net	-	-
Operating Profit Before Working Capital Changes	6,339.13	3,069.10
Changes in Operating Assets and Liabilities
Trade Receivables	-375.39	-529.47
Other Non-Current Financial Assets	-203.5	-110.55
Other Current Financial Assets	95.75	376.05
Other Non-Current and Current Assets	-6,325.17	-3,098.54
Adjustments for Increase / (Decrease) in Operating Liabilities
Trade Payables	151.64	855.29
Other Current Liabilities	-34.28	432.88
Other Financial Liabilities	-290.2	69.29
Provisions	25.66	-9.38
Cash Generated from Operations	-616.35	1,054.66
Income Tax Paid (Net)	-1,102.51	-776.45
Net Cash Flows Generated from Operating Activities	-1,718.86	278.22
Cash Flows from Investing Activities
Purchase of Property, Plant and Equipment	-25.35	-274.2
Proceeds from Sale of Property, Plant and Equipment	7.71	-
Proceeds from Sale of Investments in Subsidiary	1,648.81	-
Proceeds from Sale of Investments in Mutual Funds	-	0.05
Loans Given	-19.48	-
Loans Given to Related Party	-1,944.30	-2,310.27
Proceeds from Repayment of Loans	8.52	5.95
Proceeds from Repayment of Loans from Related Party	4,103.39	2,106.80
Proceeds from/(Investment in) Fixed Deposits	593.55	-504.9
Interest Income on Fixed Deposits	0.73	5.46
Interest Income on Loans Given to Related Parties	288.2	194.49
Dividend Income Received	-	0
Net Cash Flows Used in Investing Activities	4,681.26	-796.09
Cash Flow from Financing Activities
Finance Cost Paid	-335.96	-304.69
Proceeds from Short-Term Borrowings	5.42	1,256.04
Proceeds from Long Term Debt	-	0.04
Repayment of Short-Term Borrowings	-556.78	-694.5
Repayment of Long Term Debt	-286.63	-194.5
Principal Payment of Lease Liabilities	-463.88	-378.36
Interest Payment of Lease Liabilities	-144.04	-148.1
Net Cash Flows Used in Financing Activities	-1,781.83	-464.11
Net Increase in Cash and Cash Equivalents	1,180.56	-981.99
Cash and Cash Equivalents at the Beginning of the Year	-1,750.89	-768.91
Cash and Cash Equivalents at the End of the Year	-570.33	-1,750.89

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

Cash Flow from Operating Activities

Profit before Tax:

2024: 5,304.91

2023: 1,573.27

Analysis: The profit before tax increased significantly by 3,731.64 (237.78%). This substantial rise reflects a notable improvement in operational performance, driven by increased revenue and improved cost management.

Depreciation and Amortization Expenses:

2024: 684.89

2023: 542.66

Analysis: Depreciation and amortization expenses increased by 142.23 (26.18%). This rise is likely due to higher investments in property, plant, and equipment, or an increase in the depreciable asset base.

Allowances for Expected Credit Losses ("ECL"):

2024: 32.39

2023: 104.62

Analysis: ECL decreased by 72.23 (69.02%). This decrease indicates improved credit management or recovery of previously provided allowances.

Share-Based Compensation Expense:

2024: 180.11

2023: 378.01

Analysis: Share-based compensation expenses decreased by 197.90 (52.35%). This reduction might be due to changes in the share-based compensation plan or fewer options granted.

Finance Costs:

2024: 486.48

2023: 466.92

Analysis: Finance costs increased by 19.56 (4.18%), reflecting slightly higher borrowing costs or increased interest expenses.

Gain on Termination of Lease:

2024: -17.84

2023: 0

Analysis: A gain of 17.84 from lease termination was recorded, contributing positively to cash flow.

Interest Income:

2024: -332.81

2023: -244.49

Analysis: Interest income increased by 88.32 (36.12%). This increase is due to higher interest from fixed deposits or loans.

Bad Debts Written Off:

2024: 0.59

2023: 248.12

Analysis: A significant reduction in bad debts written off by 247.53 (99.76%) indicates better credit control or recovery of previously written-off debts.

Dividend Income on Mutual Fund:

2024: 0

2023: 0

Analysis: No dividend income was received this year, similar to the previous year.

(Gain)/Loss on Sale of Property, Plant and Equipment:

2024: 0.41

2023: 0

Analysis: A small gain was recorded this year from asset sales.

Unrealized Exchange Loss/(Gain), Net:

2024: 0

2023: 0

Analysis: No unrealized exchange gains or losses were recognized.

Operating Profit before Working Capital Changes:

2024: 6,339.13

2023: 3,069.10

Analysis: Operating profit increased by 3,270.03 (106.56%), reflecting significant improvements in operational efficiency and revenue generation.

Changes in Operating Assets and Liabilities:

Trade Receivables: Decrease of 154.08 due to better receivables management.

Other Non-Current Financial Assets: Increase of 92.95 due to new investments or asset adjustments.

Other Current Financial Assets: Decrease of 280.30 due to reductions in current assets.

Other Non-Current and Current Assets: Increase of 3,226.63, indicating higher investment or asset acquisition.

Adjustments for Increase / (Decrease) in Operating Liabilities:

Trade Payables: Decrease of 703.65 due to better payment management.

Other Current Liabilities: Decrease of 467.16 due to lower short-term liabilities.

Other Financial Liabilities: Increase of 359.49, likely due to changes in financial obligations.

Provisions: Increase of 35.04 for potential future expenses or liabilities.

Cash Generated from Operations:

2024: -616.35

2023: 1,054.66

Analysis: The negative cash flow from operations reflects increased working capital requirements and tax payments despite the higher operating profit.

Income Tax Paid (Net):

2024: -1,102.51

2023: -776.45

Analysis: Increased tax payments by 326.06 (41.98%) due to higher taxable income.

Net Cash Flows Generated from Operating Activities:

2024: -1,718.86

2023: 278.22

Analysis: A substantial decrease in net cash flow from operating activities by 1,997.08 (718.13%) due to higher working capital needs and tax payments.

Cash Flows from Investing Activities

Purchase of Property, Plant, and Equipment:

2024: -25.35

2023: -274.20

Analysis: Reduced capital expenditure by 248.85 (90.75%), indicating fewer investments in new assets.

Proceeds from Sale of Property, Plant, and Equipment:

2024: 7.71

2023: 0

Analysis: Proceeds from asset sales, which were absent in the previous year.

Proceeds from Sale of Investments in Subsidiary:

2024: 1,648.81

2023: 0

Analysis: Major inflow from the sale of a subsidiary, which was not present last year.

Proceeds from Sale of Investments in Mutual Funds:

2024: 0

2023: 0.05

Analysis: No new mutual fund investments or sales.

Loans Given:

2024: -19.48

2023: 0

Analysis: New loans given this year.

Loans Given to Related Party:

2024: -1,944.30

2023: -2,310.27

Analysis: Decrease in loans by 365.97 (15.85%), showing reduced lending to related parties.

Proceeds from Repayment of Loans:

2024: 8.52

2023: 5.95

Analysis: Increased loan repayments.

Proceeds from Repayment of Loans from Related Party:

2024: 4,103.39

2023: 2,106.80

Analysis: Significant increase in repayments from related parties.

Proceeds from/(Investment in) Fixed Deposits:

2024: 593.55

2023: -504.90

Analysis: Net inflow of 1,098.45 from fixed deposits due to new investments or realizations.

Interest Income on Fixed Deposits:

2024: 0.73

2023: 5.46

Analysis: Decrease in interest income from fixed deposits.

Interest Income on Loans Given to Related Parties:

2024: 288.20

2023: 194.49

Analysis: Increase due to more interest received on loans to related parties.

Dividend Income Received:

2024: 0

2023: 0

Analysis: No dividend income received.

Net Cash Flows Used in Investing Activities:

2024: 4,681.26

2023: -796.09

Analysis: Positive cash flow of 5,477.35 due to significant asset sales and loan repayments.

Cash Flow from Financing Activities

Finance Cost Paid:

2024: -335.96

2023: -304.69

Analysis: Increased finance costs by 31.27 (10.26%) due to slightly higher borrowing costs.

Proceeds from Short-Term Borrowings:

2024: 5.42

2023: 1,256.04

Analysis: Significant decrease in short-term borrowings by 1,250.62 (99.57%).

Proceeds from Long Term Debt:

2024: 0

2023: 0.04

Analysis: No new long-term debt issued.

Repayment of Short-Term Borrowings:

2024: -556.78

2023: -694.50

Analysis: Reduction in short-term borrowings repayments.

Repayment of Long Term Debt:

2024: -286.63

2023: -194.50

Analysis: Increase in long-term debt repayments by 92.13 (47.36%).

Principal Payment of Lease Liabilities:

2024: -463.88

2023: -378.36

Analysis: Increase in lease liability payments by 85.52 (22.61%)

Financial Ratios of Jaro Institute of Technology Management and Research Limited

Ratios	31-03-2024	31-03-2023
Current Ratio	2.58	1.62
Debt-Equity Ratio	0.21	0.45
Debt Service Coverage Ratio	3.61	1.46
Return on Equity Ratio	0.41	0.17
Trade Receivables Turnover Ratio	23.22	20.25
Net Capital Turnover Ratio	2.81	3.18
Net Profit Ratio	0.2	0.08
Return on Capital Employed	0.42	0.18

1. Current Ratio

31-03-2024: 2.58

31-03-2023: 1.62

Analysis:

Change: Increased by 0.96 (59.26%).

Implication: The Current Ratio measures the company’s ability to cover its short-term liabilities with short-term assets. An increase from 1.62 to 2.58 suggests a stronger liquidity position and improved ability to meet short-term obligations. This rise indicates better management of current assets and liabilities or a significant increase in liquid assets.

2. Debt-Equity Ratio

31-03-2024: 0.21

31-03-2023: 0.45

Analysis:

Change: Decreased by 0.24 (53.33%).

Implication: The Debt-Equity Ratio reflects the proportion of debt used to finance the company’s assets relative to shareholders’ equity. A decrease from 0.45 to 0.21 indicates a reduction in leverage and a stronger equity base relative to debt. This improvement suggests lower financial risk and a more conservative approach to financing.

3. Debt Service Coverage Ratio

31-03-2024: 3.61

31-03-2023: 1.46

Analysis:

Change: Increased by 2.15 (147.95%).

Implication: The Debt Service Coverage Ratio measures the company’s ability to service its debt obligations from its operating income. A substantial increase from 1.46 to 3.61 indicates improved ability to meet debt repayments, reflecting stronger cash flows from operations and effective debt management.

4. Return on Equity Ratio

31-03-2024: 0.41

31-03-2023: 0.17

Analysis:

Change: Increased by 0.24 (141.18%).

Implication: The Return on Equity Ratio measures the profitability relative to shareholders ' equity. An increase from 0.17 to 0.41 shows that the company is generating more profit for every unit of equity invested. This significant improvement suggests enhanced profitability and effective use of equity capital.

5. Trade Receivables Turnover Ratio

31-03-2024: 23.22

31-03-2023: 20.25

Analysis:

Change: Increased by 2.97 (14.68%).

Implication: This ratio measures how efficiently the company collects receivables. An increase from 20.25 to 23.22 indicates improved efficiency in collecting outstanding invoices and better management of credit sales.

6. Net Capital Turnover Ratio

31-03-2024: 2.81

31-03-2023: 3.18

Analysis:

Change: Decreased by 0.37 (11.62%).

Implication: The Net Capital Turnover Ratio assesses how effectively the company uses its capital to generate sales. A decrease from 3.18 to 2.81 suggests a slight decline in efficiency in converting capital into sales. This may indicate either increased capital without a proportional increase in sales or reduced sales relative to capital employed.

7. Net Profit Ratio

31-03-2024: 0.20

31-03-2023: 0.08

Analysis:

Change: Increased by 0.12 (150.00%).

Implication: The Net Profit Ratio measures the percentage of revenue that turns into profit. An increase from 0.08 to 0.20 indicates that the company is more effective at converting revenue into profit, reflecting improved cost control or increased revenue.

8. Return on Capital Employed

31-03-2024: 0.42

31-03-2023: 0.18

Analysis:

 

Change: Increased by 0.24 (133.33%).

Dividend history

Particulars	31-03-2024	31-03-2023
Dividend paid	-	-
Retained earnings	9,586.17	5,642.55
Total (in INR lakhs)	9,586.17	5,642.55