Kesoram Textile Ltd Annual Report and Financials

KESORAM TEXTILE MILLS LIMITED Balance Sheet (In Lakhs)

 KESORAM TEXTILE MILLS LIMITED Profit & Loss Statement (In Lakhs)

 KESORAM TEXTILE MILLS LIMITED Consolidated Cash Flow Statement (In Lakhs)

Here is how, the company experienced a significant change in its cash flow activities compared to the previous year.

Cash Flow From Operating Activities:

Net Profit/(Loss) before tax:

Company incurred losses in 2022 and 2024, with a significant loss in 2023.

Depreciation and amortization:

Relatively stable across the years, representing the allocation of asset costs.

Finance costs:

Substantial, indicating significant interest expenses.

Liabilities/Provision no longer required written back:

Shows release of provisions/liabilities, potentially improving financial position.

Interest income:

Negative, indicating higher interest expenses than income.

Operating profit/(loss) before working capital changes:

Mixed, with 2024 showing a small profit.

Working Capital Adjustments:

Fluctuations impacting cash flow, with significant changes in 2022 and 2023.

Cash Flow from Investing Activities

Purchase of fixed assets:

Investments made each year, indicating expansion or maintenance of operations.

Other bank balances (net) and Interest received:

Fluctuations due to investment activities or market conditions.

Cash Flow from Financing Activities:

Borrowings and Finance cost paid:

Borrowings occurred each year, with varying amounts and significant finance costs.

Net cash generated from financing activities:

Varied, reflecting changes in borrowing and repayment activities.

Net increase in cash and cash equivalents in 2022 and 2024, but decrease in 2023.

Cash and cash equivalents at the end of each year reflect the company 's liquidity position.

Company experienced losses but showed some improvement in operating profit in 2024.

Significant finance costs and negative interest income impacted cash flow.

Investments in fixed assets indicate ongoing operational development.

Borrowings were utilized, but repayment varied.

Liquidity position improved in 2024 compared to 2023

Bellow, are the Financial Ratios

The financial indicators for the company present a mixed picture of its performance and financial health.

Return on Capital Employed (ROCE): -2.56

ROCE measures how efficiently a company is using its capital to generate profits.

A negative ROCE indicates that the company is not generating sufficient profits from its capital employed. It suggests that the company

may be experiencing operating losses or inefficiently utilizing its resources.

Return on Investment (ROI): 0.17

ROI measures the return on an investment relative to its cost.

A ROI of 0.17 indicates that the company is generating a positive return on its investments, with the return being 17% of the initial investment.

This suggests that the company is making profits on its investments, which is a positive sign.

 Debt/Equity Ratio: -0.67

The debt-to-equity ratio compares a company 's total debt to its shareholders ' equity.

 A debt-to-equity ratio of -0.67 seems unusual as it 's negative. It could indicate that the company has more equity than debt, or possibly errors in the calculation. Generally, a lower debt-to-equity ratio indicates lower risk because it suggests that the company is using less debt to finance its operations, which can be favorable during economic downturns.

However, negative values need to be scrutinized further to ensure accurate calculation and interpretation.

 Debt Service Coverage Ratio: -0.06

 The debt service coverage ratio (DSCR) measures a company 's ability to cover its debt obligations with its operating income.

A DSCR of -0.06 indicates that the company 's operating income is not sufficient to cover its debt obligations.

This suggests that the company may be at risk of defaulting on its debt payments unless its operating income improves significantly.

 Current Assets: 5.64%

 Current assets are assets that can be converted into cash within one year.

Current assets at 5.64% likely means that current assets represent 5.64% of total assets.

This ratio helps assess the liquidity of a company and its ability to meet short-term obligation.

 Current Ratio: 0.16

The current ratio compares a company 's current assets to its current liabilities.

A current ratio of 0.16 indicates that the company has significantly fewer current assets than current liabilities.

This suggests potential liquidity issues, as the company may struggle to meet its short-term obligations with its current asset base.