Marvel Vinyls Annual Reports, Balance Sheet and Financials

Marvel Vinyls Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Equity
Share Capital	474.27	497.16
Other equity	2571.82	2228.11
Non-Current Liabilities
Borrowings	624.34	1014.62
Lease liabilities	1.74	1.74
Provisions	139.83	145.33
Deferred tax liabilities (net)	56.49	52.31
Current Liabilities
Borrowings	4257.28	2164.39
Trade Payables
Total outstanding dues of Micro & Small enterprises	90.06	421.61
Total Outstanding dues of creditors other than above	4291.95	2155.60
Other financial liabilities	534.86	575.11
Provisions	29.12	28.17
Other current liabilities	145.99	270.95
Current tax liabilities (net)	3.42
Total Equity & Liabilities	13221.17	9553.09
Non-Current Assets
Property, plant and equipment	2131.21	1917.88
Other Intangible assets	69.60	82.29
Right of use assets	43.99	44.60
Investments	5.02	5.62
Other financial assets	-	134.88
Other non-current assets	-	195.95
Current Assets
Inventories	3722.81	3003.65
Trade receivables	5358.51	3676.51
Cash & cash equivalents	87.41	57.53
Bank balances other than above	178.85	163.66
Other financial assets	206.15	63.89
Other current assets	1417.42	169.27
Current tax assets	-	28.06
Total Assets	13221.17	9553.09

Marvel Vinyls Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	23399.98	19726.89
Other Income	178.30	246.88
Total Income	23578.28	19973.75
Expenses
Cost of material consumed	18051.67	14632.65
Purchase of trading goods	-	10.32
Changes in inventories of finished goods	-27.60	153.51
Employee Benefit Expenses	1681.32	1541.69
Finance Costs	254.95	304.80
Depreciation & amortization expense	227.66	240.85
Other Expenses	2655.76	2642.81
Total Expenses	22843.75	19219.62
Profit Before Tax	734.53	754.13
Current Tax	166.25	207.16
Deferred Tax	3.07	-0.47
Adjust of earlier income tax	21.91	-
Profit/(Loss) for the period	523.31	917.20
Other Comprehensive Income
Item that will not be reclassified to profit of loss
Change in revaluation surplus	-	4.01
Remeasurment of the defined benefit plans	4.42	50.56
Income tax relating to items that will not be reclassified to P&L	-1.11	-12.72
Total Comprehensive Income for the Year	526.61	959.04
Basic/Diluted earnings per equity share
For continuing operations	12.30	12.87
For discontinued operations	-	8.69
For continuing and discontinued operations	12.30	21.56

Marvel Vinyls Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities :
Net profit before tax from continuing operations	734.53	754.13
Net profit before tax from discontinued operations	-	484.23
Depreciation	227.66	240.85
Interest paid	243.95	291.74
Adjustment due to finance lease	-	-11.30
Provision for gratuity	-0.79	-8.27
Provision for leave encashment	0.66	1.81
Interest received	-13.03	-24.50
Dividend income	-	-0.05
Loss on sale of property ,plant & equipment	-	1.00
Operating profit before working capital changes	1192.98	1729.64
Adjustments for:
(Increase)/Decrease in trade and other advances/financial assets	-2736.57	4575.56
(Increase)/Decrease in inventories	-719.16	1374.98
Increase/(Decrease) in trade payable	1804.80	-1245.13
Increase/(Decrease) in other long and current liabilities	-165.20	-25.25
Cash generated from operations	-623.16	6409.80
Direct taxes	-176.67	-347.58
Net cash generated from operating activities	-799.83	6062.22
Cash Flow from Investing Activities :
Purchase/sale of property, plant and equipment(net)	-427.88	1187.22
Fixed deposits with banks	-10.29	0.05
Net cash generated from/(used in) investing activities	-438.17	1738.21
Cash flow from Financing Activities
Increase/(Decrease) in borrowings (short term and long term)	1702.61	-4340.05
Cancellation of equity share capital pursuant to demerger	-203.79	-
Interest paid	-243.95	24.50
Interest received	13.03	-
Net cash generated from/(used in) financing activities	1267.90	-4607.29
Cash flow related to discontinued operations	-	3167.84
Net increase in cash and cash equivalents (A+B+C)	29.87	25.31
Cash and cash equivalents (opening balance)	57.53	32.21
Cash and cash equivalents (closing balance)	87.41	57.50

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

Cash Flow from Operating Activities
During 2024–25, the company reported a net profit before tax from continuing operations of ₹734.53, which slightly declined from ₹754.13 in 2023–24. However, the previous year included additional profit from discontinued operations (₹484.23), which was absent in the current year, indicating reduced overall profit contribution. Non-cash expenses such as depreciation and interest remained significant, though both declined slightly, reflecting reduced asset wear or borrowings. After adjustments, operating profit before working capital changes fell considerably from ₹1729.64 to ₹1192.98, indicating weaker operating performance.

Working capital changes had a major negative impact in 2024–25. There was a substantial increase in trade advances and financial assets and higher inventory levels, which resulted in heavy cash outflows. Although trade payables increased, providing some liquidity support, it was insufficient to offset the rise in working capital requirements. Consequently, cash generated from operations turned negative at ₹-623.16 compared to a strong positive ₹6409.80 in the previous year. After paying taxes, net cash from operating activities declined sharply to ₹-799.83, highlighting significant pressure on core business cash generation.

 

Cash Flow from Investing Activities
The Company reported a net cash outflow of ₹-438.17 from investing activities in 2024–25, mainly due to purchase of property, plant, and equipment. In contrast, the previous year showed a positive inflow of ₹1738.21, largely due to net sale or lower investment in fixed assets. The shift from inflow to outflow indicates that the company invested in asset expansion or modernization during 2024–25, which may support future growth but reduced short-term liquidity.

 

Cash Flow from Financing Activities
Financing activities showed a net cash inflow of ₹1267.90 in 2024–25, mainly due to a significant increase in borrowings. This indicates that the company relied on external financing to support its cash requirements, especially due to negative operating cash flow. However, there was also cancellation of equity share capital due to demerger and continued interest payments, which partially reduced the inflow. In contrast, the previous year recorded a large outflow of ₹-4607.29, primarily due to repayment of borrowings. The reversal suggests a shift in financial strategy from debt reduction to debt expansion.

 

Cash Flow from Discontinued Operations
In 2023–24, the company generated ₹3167.84 from discontinued operations, which significantly supported overall cash flows. However, there was no such inflow in 2024–25, indicating that the company no longer benefits from cash generation from discontinued business segments. This absence contributed to the decline in total cash inflows during the current year.

 

Overall Change in Cash and Cash Equivalents
Despite negative operating cash flow and investment outflows, the company managed to maintain a slight increase in cash and cash equivalents due to higher financing inflows. Net cash increased marginally from ₹25.31 in 2023–24 to ₹29.87 in 2024–25. As a result, closing cash balance rose to ₹87.41 from ₹57.50. While this indicates improved liquidity at year-end, the increase was mainly supported by borrowings rather than operational performance, which may pose financial sustainability concerns in the long term.

Financial Ratios of Marvel Vinyl’s Limited

Particulars	2025	2024
Current ratio	1.17	1.28
Debt to equity ratio	1.60	1.17
Debt service coverage ratio	1.31	1.61
Return on equity	0.17	0.16
Inventory turnover ratio	5.36	4.95
Trade receivables turnover ratio	5.18	4.56
Trade payables turnover ratio	4.94	5.47
Net capital turnover ratio	14.46	12.70
Net profit ratio	0.02	0.03
Return on capital employed	0.26	0.22
Return on investment	0.14	0.12

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio
The current ratio declined from 1.28 in 2023–24 to 1.17 in 2024–25, indicating a slight weakening in the company’s short-term liquidity position. Although the ratio remains above 1, suggesting the firm can still meet its current obligations, the downward movement reflects increased pressure on working capital or higher current liabilities during the year.

 

Debt–Equity Ratio
The debt–equity ratio increased significantly from 1.17 to 1.60, showing that the company has become more leveraged. This indicates a greater dependence on borrowed funds as compared to shareholders’ equity. While higher leverage can enhance returns in a profitable scenario, it also increases financial risk and interest burden.

 

Debt Service Coverage Ratio
The DSCR declined from 1.61 to 1.31, reflecting a reduced capacity to service debt obligations from operating income. Although the ratio is still above 1, the decrease suggests tighter cash flows and a lower margin of safety for meeting interest and principal repayments.

 

Return on Equity
ROE improved marginally from 0.16 to 0.17, indicating a slight increase in returns generated for equity shareholders. This suggests better utilization of shareholders’ funds, although the improvement is modest and could be influenced by increased leverage rather than higher profitability.

 

Inventory Turnover Ratio
The inventory turnover ratio increased from 4.95 to 5.36, showing improved efficiency in inventory management. The company is able to sell and replace its inventory more frequently, indicating better demand conditions or improved operational control.

 

Trade Receivables Turnover Ratio
The receivables turnover ratio rose from 4.56 to 5.18, suggesting faster collection of dues from customers. This improvement reflects more effective credit management and better cash inflows during the year.

 

Trade Payables Turnover Ratio
The payables turnover ratio declined from 5.47 to 4.94, indicating that the company is taking a longer time to pay its suppliers. This may help in managing working capital in the short term, but prolonged delays could affect supplier relationships.

 

Net Capital Turnover Ratio
The net capital turnover ratio increased from 12.70 to 14.46, showing improved efficiency in utilizing net working capital to generate revenue. This suggests that the company is generating higher sales relative to its invested working capital.

 

Net Profit Ratio
The net profit ratio declined from 0.03 to 0.02, indicating a reduction in overall profitability. This may be due to increased costs, higher interest expenses, or pricing pressures, despite improvements in operational efficiency.

 

Return on Capital Employed
ROCE improved from 0.22 to 0.26, reflecting better utilization of total capital employed in the business. This indicates improved operational performance and effective use of long-term funds.

 

Return on Investment
The ROI increased from 0.12 to 0.14, showing an improvement in returns generated from investments. This reflects better investment decisions or improved profitability from invested funds during the year.