Kurlon Limited Annual Reports, Balance Sheet and Financials

Kanara Consumer Products Limited Balance Sheet (Rs in lakhs)

Kanara Consumer Products Limited Profit & Loss Statement (Rs in lakhs)

Kanara Consumer Products Limited Consolidated Cash Flow Statement (Rs in lakhs)

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Cash Flow from Operating Activities

31-03-2023: ₹445.74 (net cash generated)

31-03-2022: ₹3,776.79 (net cash generated)

Analysis:

Substantial Decrease in Cash Flow: The net cash generated from operating activities dropped significantly from ₹3,776.79 in 2022 to ₹445.74 in 2023. This decline reflects a considerable decrease in the efficiency of converting operating profits into cash.

Key Factors:

Loss before Tax: Increased loss from ₹-2,143.30 in 2022 to ₹-6,584.82 in 2023, indicating worsening operational performance.

Higher Provisions: Significant increase in provisions for doubtful advances and bad debts, leading to a cash outflow of ₹3,627.29 in 2023 compared to just ₹65.71 in 2022.

Interest Expenses: Increased substantially from ₹578.58 in 2022 to ₹2,966.68 in 2023, which negatively impacted cash flow.

Changes in Working Capital: Large fluctuations in working capital items, such as a decrease in trade payables and significant decreases in other assets, contributed to the lower cash flow.

Cash Flow from Investing Activities

31-03-2023: ₹-15,613.48 (net cash used)

31-03-2022: ₹-4,240.16 (net cash used)

Analysis:

Increased Cash Outflow: There was a significant increase in cash outflow for investing activities from ₹-4,240.16 in 2022 to ₹-15,613.48 in 2023.

Key Factors:

Acquisition of Non-Controlling Interest: Large outflow of ₹32,500.00 in 2023 for acquiring non-controlling interest, a major factor for the increased cash outflow.

Reduced Capital Expenditure: Decrease in cash used for purchasing property, plant, and equipment from ₹-5,117.51 in 2022 to ₹-1,648.48 in 2023.

Increased Deposits Matured: A large inflow of ₹4,599.03 from matured deposits in 2023, compared to an outflow of ₹-412.37 in 2022.

Net Proceeds from Mutual Funds: Significant increase in proceeds from the sale of mutual funds, which partially offset the investing cash outflow.

Cash Flow from Financing Activities

31-03-2023: ₹15,273.25 (net cash generated)

31-03-2022: ₹265.45 (net cash generated)

Analysis:

Significant Increase in Cash Flow: There was a dramatic increase in cash flow from financing activities from ₹265.45 in 2022 to ₹15,273.25 in 2023.

Key Factors:

Net Proceeds from Borrowings: Significant increase in net proceeds from short-term borrowings, from ₹1,965.92 in 2022 to ₹19,207.52 in 2023.

Higher Interest Payments: Increased interest payments from ₹249.69 in 2022 to ₹2,563.42 in 2023.

Dividend Payments: Reduction in dividend payments from ₹-579 in 2022 to ₹-342.11 in 2023.

Net Increase/(Decrease) in Cash and Cash Equivalents

31-03-2023: ₹105.51 (net increase)

31-03-2022: ₹-197.91 (net decrease)

Analysis:

Recovery in Cash Balance: There was a net increase in cash and cash equivalents in 2023 compared to a decrease in 2022.

End of Year Cash Balance: The cash and cash equivalents at the end of the year increased from ₹585.91 in 2022 to ₹691.42 in 2023.

Components of Cash and Cash Equivalents as at End of the Year

31-03-2023:

Cash in Hand: ₹7.48

Balances with Banks: In Current Accounts: ₹683.94

Total Cash and Cash Equivalents: ₹691.42

31-03-2022:

Cash in Hand: ₹8.5

Balances with Banks: In Current Accounts: ₹577.41

Total Cash and Cash Equivalents: ₹585.91

Financial Ratios of Kanara Consumer Products Limited

Current Ratio

31-03-2023: 0.9

31-03-2022: 1.89

Analysis:

Decline in Liquidity: The current ratio fell from 1.89 in 2022 to 0.9 in 2023, indicating a significant decline in short-term liquidity. A ratio below 1 suggests that current liabilities exceed current assets, which might indicate potential liquidity issues.

Debt to Equity Ratio

31-03-2023: 1.08

31-03-2022: 0.04

Analysis:

Increased Leverage: The debt to equity ratio surged from 0.04 in 2022 to 1.08 in 2023. This dramatic increase reflects a significant rise in debt relative to equity, indicating a higher financial risk and leverage.

Debt Service Coverage Ratio

31-03-2023: -0.55

31-03-2022: -5.6

Analysis:

Improvement in Debt Service Ability: While still negative, the debt service coverage ratio improved from -5.6 in 2022 to -0.55 in 2023. This improvement indicates a reduced but still negative ability to cover debt service obligations from operating cash flows.

Return on Equity (ROE)

31-03-2023: -0.16

31-03-2022: -0.04

Analysis:

Worsened Profitability: ROE worsened from -0.04 in 2022 to -0.16 in 2023. This negative ROE shows that the company is still not generating profits for shareholders, and the situation deteriorated compared to the previous year.

Inventory Turnover Ratio

31-03-2023: 3.85

31-03-2022: 3.18

Analysis:

Improved Efficiency: The inventory turnover ratio improved from 3.18 in 2022 to 3.85 in 2023, indicating that the company is more efficiently managing and selling its inventory.

Trade Receivable Ratio

31-03-2023: 14.63

31-03-2022: 12.97

Analysis:

Increased Collection Period: The trade receivable ratio increased from 12.97 in 2022 to 14.63 in 2023, indicating that the average collection period for receivables has lengthened, which could imply slower payments from customers.

Trade Payable Turnover Ratio

31-03-2023: 5.23

31-03-2022: 5.48

Analysis:

Slight Decrease in Payable Efficiency: The trade payable turnover ratio decreased from 5.48 in 2022 to 5.23 in 2023. This slight decrease indicates that the company is taking a bit longer to pay its suppliers.

Net Capital Turnover Ratio

31-03-2023: -32.05

31-03-2022: 4.45

Analysis:

Significant Decline: The net capital turnover ratio dropped from 4.45 in 2022 to -32.05 in 2023. A negative ratio indicates that the company is not generating positive revenue from its capital base, reflecting severe inefficiency or operational issues.

Net Profit Ratio

31-03-2023: -0.08

31-03-2022: -0.02

Analysis:

Deterioration in Profitability: The net profit ratio worsened from -0.02 in 2022 to -0.08 in 2023. This decline indicates that the company’s ability to convert revenue into net profit has decreased.

Return on Capital Employed (ROCE)

31-03-2023: -0.05

31-03-2022: -0.02

Analysis:

Decline in Capital Efficiency: ROCE worsened from -0.02 in 2022 to -0.05 in 2023. A negative ROCE shows that the company is not generating returns on its capital employed, and the situation has worsened compared to the previous year.

Return on Investment (ROI)

31-03-2023: 0.07

31-03-2022: 0.05

Analysis:

Improved Investment Returns: ROI increased from 0.05 in 2022 to 0.07 in 2023. This improvement suggests that the returns on investments have increased, though it remains a relatively modest return.

Dividend history

During the year the under the review, Directors are not recommending any Dividend for the year owing to the loss incurred as per the Audited Financial Statement for the year 2022-23.