Kothari Safe Deposits Annual Reports, Balance Sheet and Financials

Kothari Safe Deposits Limited Standalone Balance Sheet (Rs in Lakhs)

Kothari Safe Deposits Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Kothari Safe Deposits Limited Standalone Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Operating Activities

The net cash flow from operating activities improved in 2025, increasing to ₹179.45 lakhs from ₹109.43 lakhs in 2024, despite a decline in net profit before tax (₹415.69 lakhs in 2025 vs. ₹533.05 lakhs in 2024). This improvement was primarily driven by non-cash adjustments and working capital changes.

Key adjustments included depreciation and amortisation of ₹29.97 lakhs (similar to the previous year), and a non-cash provision for diminution in investments of ₹51.73 lakhs in 2025 (none in 2024), which boosted operating profit. There were also deductions such as profits on investment redemption (₹234.55 lakhs) and interest income, which are removed from operating cash flows as they relate to investing activities.

Changes in working capital further contributed to higher cash flows. Notably, there was a substantial increase in provisions (₹76.37 lakhs) and other current liabilities (₹38.86 lakhs), both positive for cash flow. Though short-term advances and current assets increased (reducing cash), the net working capital change remained supportive. After adjusting for income taxes paid (₹101.30 lakhs), the company reported positive net cash from operations at ₹179.45 lakhs in 2025, up from ₹109.43 lakhs in 2024.

Investing Activities

Cash flow from investing activities showed a stark contrast between the two years. In 2025, the company reported a significant outflow of ₹496.86 lakhs, compared to a net inflow of ₹270.93 lakhs in 2024.

This negative cash flow was primarily due to a large outlay on purchase/sale of investments amounting to ₹723.09 lakhs, a sharp rise compared to only ₹31.86 lakhs in 2024. While some of this was offset by inflows from redemption of investments (₹234.55 lakhs) and interest/dividends received (₹17.42 lakhs), the net impact remained substantially negative. Purchases of fixed assets also contributed with an outflow of ₹25.74 lakhs, which was similar to the previous year.

Overall Cash Position

As a result of the above, the net decrease in cash and cash equivalents during 2025 was ₹317.41 lakhs, reversing the previous year’s net increase of ₹380.36 lakhs. Consequently, the company’s closing cash balance dropped sharply from ₹431.96 lakhs in 2024 to ₹114.55 lakhs in 2025.

The composition of the closing balance also shifted notably. In 2025, a much higher portion of cash was held on hand (₹65.51 lakhs) compared to just ₹1.05 lakhs in 2024, while bank balances decreased sharply from ₹430.91 lakhs to ₹49.04 lakhs, indicating a possible move away from bank-held liquidity or timing of disbursements.

Financial Ratios of Kothari Safe Deposits Limited

Here is a summary of the financial Ratios for Kothari Safe Deposits Limited for the year 2025 and 2024:

Current Ratio (2025: 1.47 | 2024: 1.27)

The current ratio measures a company’s ability to pay its short-term liabilities with its short-term assets. A ratio above 1 indicates good short-term financial health. In 2025, the current ratio increased to 1.47, up from 1.27 in 2024, suggesting improved liquidity and a stronger position to meet short-term obligations.

Return on Equity (ROE) (2025: 7.58% | 2024: 10.82%)

ROE evaluates how effectively the company generates profit from shareholders’ equity. The decline from 10.82% in 2024 to 7.58% in 2025 indicates that the company’s ability to generate returns for shareholders has weakened, possibly due to reduced profitability or increased equity without a proportional rise in net income.

Net Capital Turnover Ratio (2025: 0.88 | 2024: 1.57)

This ratio measures how efficiently the company uses its working capital to generate revenue. The fall from 1.57 to 0.88 reflects a significant decline in working capital efficiency. It suggests the company generated fewer sales per rupee of net working capital in 2025 compared to the previous year, which could point to either excessive current assets or reduced revenue.

Net Profit Ratio (2025: 41.13% | 2024: 50.41%)

The net profit ratio indicates how much of the revenue is retained as profit after all expenses. A decline from 50.41% to 41.13% implies a drop in profitability, meaning that although the company still retains a high portion of revenue as profit, margins have compressed—possibly due to rising costs or reduced revenue.

Return on Capital Employed (ROCE) (2025: 9.07% | 2024: 12.53%)

ROCE assesses how well the company is using all its available capital to generate profits. The decrease from 12.53% to 9.07% suggests a decline in overall capital efficiency. This could be due to either lower operating profit or increased capital base without corresponding profit growth.

Return on Investments (ROI) (2025: 4.85% | 2024: 7.15%)

ROI measures the profitability of the company’s investment portfolio. A drop from 7.15% in 2024 to 4.85% in 2025 shows a decline in the earnings from investments. This may reflect lower market returns, changes in the investment mix, or diminished performance of investment assets during the year.