Laffan Software Ltd Annual Report and Financials

Laffan Software Limited Standalone Balance Sheet (Rs in Lakhs)

Laffan Software Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities:
During the financial year ended 31 March 2025, the company reported a net loss before tax of Rs. 4.95 Lakhs as compared to Rs. 2.07 Lakhs in the previous year. After considering working capital adjustments, including increase in inventory and marginal changes in current liabilities, net cash outflow from operating activities stood at Rs. 5.74 Lakhs against an outflow of Rs. 1.48 Lakhs in FY 2023-24. The higher cash outflow reflects increased operational losses and weaker cash generation from core business activities.

Cash Flow from Investing Activities:
There were no cash flows from investing activities during FY 2024-25 as well as FY 2023-24. This indicates that the company did not undertake any significant investment, acquisition, or disposal of assets during the year.

Cash Flow from Financing Activities:
The company did not report any cash flow from financing activities during the current year or the previous year. This indicates that no funds were raised or repaid through borrowings, equity infusion, or other financing arrangements during the period.

Cash and Cash Equivalents:
The net decrease in cash and cash equivalents during FY 2024-25 amounted to Rs. 5.74 Lakhs as against a decrease of Rs. 1.48 Lakhs in the previous year. Consequently, the closing cash and cash equivalents balance declined to Rs. 5.07 Lakhs as on 31 March 2025 from Rs. 10.81 Lakhs as on 31 March 2024, primarily due to negative operating cash flows during the year.

Financial ratios of Laffan Software Limited:

Summary of the Ratios for the years 2025 and 2024:

Current Ratio:
The current ratio of the company stood at 4,345.52 as on 31 March 2025 compared to 4,622.51 as on 31 March 2024. The ratio remained exceptionally high during the year, indicating a very strong liquidity position and the company’s ability to meet its short-term obligations comfortably. However, the marginal decline during the year reflects a slight reduction in current assets relative to current liabilities.

Net Capital Turnover Ratio:
The net capital turnover ratio was 0.01 during the financial year ended 31 March 2025 as against nil in the previous year. The ratio indicates very low utilization of working capital for generating revenue during the year, reflecting limited operational activity or turnover.

Net Profit Ratio:
The net profit ratio stood at (-0.45) in FY 2024-25 as compared to (-0.30) in FY 2023-24. The negative ratio indicates that the company incurred losses during both years. The increase in negative margin during the current year signifies higher losses in proportion to revenue compared to the previous year.