Kurlon Limited Annual Reports, Balance Sheet and Financials

Kanara Consumer Products Ltd Balance Sheet (Rs in Lakhs)

Kanara Consumer Products Ltd Profit & Loss Statement (Rs in Lakhs)

 Kanara Consumer Products Ltd Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

The company recorded a profit before tax of ₹1,51,954.72 lakhs in 2024, compared to a loss of ₹-6,584.82 lakhs in 2023. Various non-cash adjustments were made, including depreciation (₹2,032.52 lakhs), provisions for bad debts and advances (₹1,612.76 lakhs), and interest expenses (₹1,942.71 lakhs). A significant adjustment was the gain on the sale of investments (₹1,54,060.28 lakhs), which provided a large cash inflow. Additionally, there were gains from liabilities written back (₹7,240.86 lakhs).

After these adjustments, the operating profit before working capital changes was ₹978.56 lakhs, but changes in working capital had a significant negative impact. Key movements included:

A decrease in trade payables (₹-10,784.54 lakhs) and other financial liabilities (₹-7,252.40 lakhs).

A reduction in inventories (₹8,535.26 lakhs), contributing positively to cash flow.

An increase in trade receivables (₹4,644.78 lakhs), improving liquidity.

Despite these factors, the company experienced a cash outflow from operations of ₹-4,587.48 lakhs, compared to an inflow of ₹1,956.19 lakhs in 2023. After accounting for direct taxes paid (₹-35,440.41 lakhs), the net cash outflow from operating activities was ₹-40,027.89 lakhs, a significant outflow compared to the inflow of ₹445.74 lakhs in 2023. The higher taxes and negative working capital changes contributed to this outflow.

Cash Flow from Investing Activities

Investing activities resulted in a net cash inflow of ₹1,19,166.97 lakhs in 2024, compared to a net outflow of ₹-15,613.48 lakhs in 2023. Significant inflows came from:

Sale of investments in mutual funds (₹1,54,060.28 lakhs).

Proceeds from the sale of property, plant, and equipment (₹25,432.36 lakhs).

Interest received (₹2,593.41 lakhs).

On the other hand, major outflows included:

Deposits matured/made during the year (₹-38,966.05 lakhs).

Investments in securities (₹-13,493.32 lakhs).

The large cash inflow from the sale of investments and property helped the company generate a substantial net inflow from investing activities.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹-31,552.46 lakhs in 2024, compared to an inflow of ₹15,273.25 lakhs in 2023. Key transactions included:

Repayment of short-term borrowings (₹-29,581.03 lakhs).

Interest paid (₹-1,971.44 lakhs).

There were no dividend payments or significant lease liabilities repaid during the year. The net outflow reflects a focus on reducing debt and paying off interest obligations.

Net Increase/(Decrease) in Cash and Cash Equivalents

Despite the significant outflow from operating activities, the company saw a net increase in cash and cash equivalents of ₹47,586.62 lakhs in 2024, compared to a minor increase of ₹105.51 lakhs in 2023. The improvement was primarily driven by the large inflows from investing activities, offsetting the outflows from operations and financing activities.

The company started the year with ₹691.42 lakhs in cash and cash equivalents and ended with ₹48,278.04 lakhs. This reflects a significant improvement in the company’s liquidity position.

Financial Ratios of Kanara Consumer Products Ltd

Here is a summary of the financial and operational metrics for Kanara Consumer Products Ltd for the year 2024 and 2023:

Current Ratio

The current ratio measures the company's ability to meet its short-term liabilities with its short-term assets. The ratio increased significantly from 0.9 in 2023 to 43.2 in 2024, indicating a major improvement in the company's liquidity position. This suggests that the company now holds a large amount of current assets relative to its liabilities, potentially due to better working capital management or lower short-term liabilities.

Debt-Equity Ratio

The debt-equity ratio compares the company's total debt to its shareholders' equity. The ratio dropped from 0.32 in 2023 to 0 in 2024, indicating that the company has eliminated its debt or significantly reduced it, resulting in no leverage. This suggests a more conservative capital structure with no financial risk from debt.

Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio measures the company's ability to cover its debt obligations using operating income. In 2024, the DSCR was -0.73, worse than -0.37 in 2023, indicating that the company is not generating enough income to cover its debt repayments. This negative ratio suggests financial stress regarding debt obligations.

Return on Equity (ROE)

The return on equity (ROE) measures the company’s profitability relative to shareholders' equity. The ratio improved from -0.32 in 2023 to 1.54 in 2024, indicating a positive return to shareholders. This means the company has returned to profitability after incurring losses in the prior year, although the return is still modest.

Inventory Turnover Ratio

The inventory turnover ratio shows how efficiently the company converts inventory into sales. The ratio increased slightly from 3.89 in 2023 to 4.14 in 2024, indicating marginally improved efficiency in managing inventory. This suggests that the company is selling and replacing its inventory faster than the previous year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio measures how effectively the company collects payments from customers. It increased from 13.57 in 2023 to 14.13 in 2024, reflecting faster collection of receivables. This improvement is a positive sign of better cash flow and credit management.

Trade Payables Turnover Ratio

The trade payables turnover ratio shows how quickly the company pays its suppliers. The ratio increased from 5.4 in 2023 to 6.03 in 2024, indicating that the company is paying off its trade payables more quickly. While this could reflect stronger cash flow, it could also suggest the need to manage supplier relationships carefully to avoid liquidity issues.

Net Capital Turnover Ratio

The net capital turnover ratio measures how effectively the company generates revenue from its working capital. The ratio improved from -32.05 in 2023 to 0.44 in 2024, reflecting a significant recovery in capital efficiency. The negative ratio in 2023 indicated inefficiency or losses, but the positive ratio in 2024 suggests the company is now generating revenue from its working capital.

Net Profit Ratio

The net profit ratio shows the percentage of revenue that results in profit. The ratio improved from -0.08% in 2023 to 2.68% in 2024, indicating that the company has shifted from making losses to generating profit. This turnaround reflects better profitability and operational efficiency.

Return on Capital Employed (ROCE)

The ROCE measures how efficiently the company uses its capital to generate profits. The ratio improved from -0.05% in 2023 to 1.18% in 2024, indicating that the company has returned to generating a positive return on its capital. Although still low, the improvement shows that the company is recovering from a period of inefficiency.

Return on Investment (ROI)

The return on investment (ROI) increased from 0.08% in 2023 to 0.13% in 2024, reflecting a slight improvement in the returns generated from investments. Although the ROI remains modest, the upward trend suggests better investment decisions or higher returns from existing investments.