K2 System Limited Annual Reports, Balance Sheet and Financials

K2 System Limited Balance Sheet (In Rupees)

K2 System Limited Profit & Loss Statement (In Rupees)

K2 System Limited Consolidated Cash Flow Statement (In Rupees)

Let 's break down the Cash Flow Statement for the years 2018 and 2017 in rupees, focusing on each activity:

Cash Flow from Operating Activities:

1. Net cash inflow from operating activities in 2018 was Rs.328,841, indicating positive cash generated from the core business operations.

2. In contrast, in 2017, there was a net cash outflow of Rs.-467,491, suggesting that more cash was used in operating activities than generated.

Cash Flow from Investing Activities:

3. Specific details about investing activities, including the purchase and sale of fixed assets or investments, are not provided, making it challenging to assess the impact on cash flow.

Cash Flow from Financing Activities:

4. Financing activities in 2018 resulted in a net cash outflow of Rs.-329,858, primarily due to unspecified activities. It includes possible repayment of loans or other financial obligations.

5. In 2017, there was a net cash inflow of Rs.464,000 from financing activities, possibly indicating an influx of funds through loans or other financial instruments.

Net Increase/Decrease in Cash and Cash Equivalents:

6. The overall cash position improved in 2018 with a net increase in cash and cash equivalents amounting to Rs.18,778. This positive trend suggests improved liquidity.

7. Conversely, in 2017, there was a net decrease of Rs.-3,491, indicating a reduction in cash and cash equivalents over the year.

Cash and Cash Equivalents:

8. Cash and cash equivalents at the beginning of 2018 were Rs.30,181, and by the end of the year, they increased to Rs.48,959, reflecting positive cash management.

9. In 2017, cash and cash equivalents started at Rs.34,763 and decreased to Rs.31,082 by the end of the year, signifying a decline in available cash.

Below are the Financial Ratios:

Let 's break down each parameter for a detailed understanding:

1. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):

   EBITDA margin is 0.89%, indicating that the company 's EBITDA as a percentage of total revenue is relatively low.

2. Networth:

 Net worth as a percentage of total equity is 11.05%. This metric represents the company 's ownership interest in its assets after deducting liabilities.

3. Debt/Equity Ratio:

 The Debt/Equity Ratio is -4.25, which seems unusual. Typically, this ratio should be positive or zero. A negative value might suggest an inconsistent or unconventional accounting approach.

4. Return on Equity (ROE):

 Return on Equity is marked as N/A, indicating that there might be missing or insufficient data to calculate this metric. ROE measures the profitability of a company in relation to its equity.

5. Total Assets:

Total assets are 447.81% of some reference value (possibly equity or revenue). This indicates that the company 's assets are significantly higher than the specified benchmark.

6. Fixed Assets:

 The Fixed Assets percentage is -16.18%, which seems unusual. A negative value in this context may indicate an accounting anomaly or misinterpretation of the data.

7. Current Assets:

Current assets are 492.90% of some reference value, suggesting a substantial proportion of short-term assets in the company 's asset mix.

8. Current Liabilities:

Current liabilities are 1,640.27% of some reference value, indicating a high level of short-term obligations compared to the specified benchmark.

9. Trade Receivables:

Trade receivables are 1,222.80% of some reference value, suggesting a high proportion of sales that are yet to be collected.

10. Trade Payables:

Trade payables are 1,948.03% of some reference value, indicating a significant amount of unpaid bills. This might be due to extended payment terms with suppliers.

11. Current Ratio:

The current ratio is 1.16, calculated as current assets divided by current liabilities. A value above 1 suggests that the company has more current assets than current liabilities, which is generally considered a positive liquidity indicator.