Kusum IGL Annual Reports, Balance Sheet and Financials

Kusum Industrial Gases Limited Balance Sheet (Rs in Hundred)

Kusum Industrial Gases Limited Profit & Loss Statement (Rs in Hundred)

Kusum Industrial Gases Limited Consolidated Cash Flow Statement (Rs in Hundred)

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

Cash Flow from Operating Activities

Profit Before Tax:

31-03-2024: ₹1,044,475.03

31-03-2023: ₹387,701.70

The profit before tax for the year ending 31-03-2024 is significantly higher compared to the previous year. This indicates a substantial improvement in the company 's profitability.

Adjustments to Reconcile Profit Before Tax:

Depreciation and Amortization Expenses:

31-03-2024: ₹228.85

31-03-2023: ₹330.42

Depreciation and amortization are non-cash charges added back to the profit before tax. The decrease in this expense from ₹330.42 to ₹228.85 suggests lower depreciation or amortization charges in 2024 compared to 2023.

Net Gain / (Loss) on Current Investments:

31-03-2024: -₹36,617.59

31-03-2023: -₹1,532.79

The loss on current investments has increased significantly in 2024. This indicates that the company incurred greater losses on its short-term investments this year compared to the last.

Net Unrealized Gain on Fair Valuation of Mutual Funds:

31-03-2024: -₹143,199.74

31-03-2023: -₹96,962.47

There was an increase in unrealized losses on mutual funds. This means that the market value of the mutual funds held by the company has decreased further in 2024 compared to 2023.

Operating Profit Before Working Capital Changes:

31-03-2024: ₹864,886.55

31-03-2023: ₹289,536.86

This figure shows a substantial increase, reflecting improved operating efficiency and profitability before considering changes in working capital.

Working Capital Adjustments:

Increase/ (Decrease) in Other Payables:

31-03-2024: ₹9.60

31-03-2023: ₹255.00

There is a minimal decrease in other payables in 2024 compared to an increase in 2023. This indicates stability or a reduction in short-term liabilities.

Decrease/ (Increase) in Other Non-Current Assets:

31-03-2024: -₹1,195.85

31-03-2023: N/A

There was a decrease in other non-current assets in 2024, reflecting either sales or write-downs of long-term assets.

Decrease/ (Increase) in Short-Term Loans and Advances:

31-03-2024: -₹1,915.00

31-03-2023: N/A

The decrease in short-term loans and advances suggests a reduction in the company 's short-term financial receivables.

Decrease/ (Increase) in Other Current Assets:

31-03-2024: -₹296,898.14

31-03-2023: -₹5,048.00

A significant increase in the decrease of other current assets in 2024 implies a substantial outflow related to current assets.

Cash Generated from Operations:

31-03-2024: ₹564,887.16

31-03-2023: ₹284,743.86

The cash generated from operations has more than doubled, reflecting improved operational cash flows.

Income Tax Paid (Net of Refunds):

31-03-2024: -₹216,654.42

31-03-2023: -₹80,403.95

The increase in income tax payments in 2024 corresponds with higher taxable income, reflecting a higher tax liability due to increased profits.

Net Cash Flow from Operating Activities:

31-03-2024: ₹348,232.74

31-03-2023: ₹204,339.91

The net cash flow from operating activities has improved, indicating stronger operational performance and better cash flow management.

Cash Flow from Investing Activities

Proceeds from Sale/ (Purchase) of Current Investments (Net):

31-03-2024: -₹425,449.89

31-03-2023: -₹207,660.00

The net cash used in investing activities related to current investments has increased significantly, suggesting higher expenditure or investments in this category.

Decrease/ (Increase) in Long-Term Loans and Capital Advances:

31-03-2024: ₹80,000.00

31-03-2023: N/A

There was an inflow of ₹80,000 from long-term loans and capital advances, indicating new financing or repayments received.

Net Cash Flow from Investing Activities:

31-03-2024: -₹345,449.89

31-03-2023: -₹207,660.00

The cash outflow from investing activities has increased, reflecting a higher net investment or expenditure on assets.

Net Increase/ (Decrease) in Cash and Cash Equivalents

31-03-2024: ₹2,782.85

31-03-2023: -₹3,320.09

The net increase in cash and cash equivalents in 2024 indicates a positive cash flow, whereas there was a decrease in 2023.

Cash and Cash Equivalents at the Beginning and End of the Year

31-03-2024:

Beginning of the Year: ₹8,204.54

End of the Year: ₹10,987.39

31-03-2023:

Beginning of the Year: ₹11,524.63

End of the Year: ₹8,204.54

The cash and cash equivalents at the end of 2024 have increased compared to the beginning of the year, reflecting a positive net cash flow. Conversely, there was a decrease in cash and cash equivalents from the beginning to the end of 2023.

5. Components of Cash and Cash Equivalents

Balances with Banks (In Current Accounts):

31-03-2024: ₹9,474.89

31-03-2023: ₹6,657.33

The balance in current accounts has increased, reflecting better liquidity.

Cash on Hand:

31-03-2024: ₹1,512.50

31-03-2023: ₹1,547.21

The cash on hand remains relatively stable between the two years.

Financial Ratios of Kusum Industrial Gases Limited

Here is a summary of the financial and operational metrics for Kusum Industrial Gases Limited for the years 2024 and 2023:

Current Ratio

2024: 94.40

2023: 73.67

Insight: The current ratio measures the company’s ability to pay short-term liabilities with its short-term assets. A current ratio of 94.40 in 2024 is exceptionally high compared to 73.67 in 2023. This indicates a strong liquidity position, suggesting that the company has a substantial amount of current assets relative to its current liabilities. While a high current ratio generally signals good short-term financial health, it could also indicate that the company is holding excessive cash or liquid assets, which might not be optimally utilized. This could potentially mean missed opportunities for investment or growth.

Return on Equity (ROE)

2024: 0.14%

2023: 0.06%

Insight: ROE measures the profitability of the company in relation to shareholders ' equity. The ROE has improved from 0.06% in 2023 to 0.14% in 2024. While the increase is positive, the absolute figures are very low. This indicates that the company is generating very modest returns on shareholders ' equity. The low ROE could be due to a variety of factors including high equity base or low net income relative to the equity. The company may need to focus on improving its profitability and efficiently using shareholders ' funds to enhance returns.

Return on Capital Employed (ROCE)

2024: 0.17%

2023: 0.07%

Insight: ROCE evaluates the efficiency of capital use in generating profits. The ROCE has increased from 0.07% in 2023 to 0.17% in 2024. Although the ratio has improved, it remains very low. This suggests that the capital employed in the business is not generating significant returns. The improvement indicates better utilization of capital compared to the previous year, but the overall return is still minimal. The company should look into optimizing its operations and investments to generate better returns from the capital employed.

Return on Investment (ROI)

2024: 0.01%

2023: 0.01%

Insight: ROI measures the profitability of investments made by the company. The ROI remains unchanged at 0.01% for both years. This indicates that the returns on the investments made by the company have been consistently low. Despite any changes in investment strategies or amounts, the company has not managed to achieve a higher return on its investments. This may point to inefficiencies in investment choices or operations that are not yielding significant financial benefits.