Maxvalue Credits Annual Reports, Balance Sheet and Financials

Max Value Credits and Investments Ltd. Balance Sheet (Rs in Lakhs)

 Max Value Credits and Investments Ltd. Profit & Loss Statement (Rs in Lakhs)

 Max Value Credits and Investments Ltd. Consolidated Cash Flow Statement (Rs in Lakhs)

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

Operating Activities: The Company reported a net profit before taxation and extraordinary items of ₹1,018.51 lakhs. Adjustments for non-cash items included depreciation and amortization of ₹337.89 lakhs, various provisions totaling ₹458.04 lakhs (for non-performing assets, standard assets, and leave encashment), and loans write-offs amounting to ₹379.81 lakhs. Despite additional provisions and write-offs, the operating profit before working capital changes stood at ₹2,058.38 lakhs. The increase in current liabilities by ₹1,264.66 lakhs and a substantial rise in current assets by ₹5,015.01 lakhs contributed to a significant net cash flow from operating activities of ₹8,338.05 lakhs.

Investing Activities: Cash flows from investing activities showed a net outflow of ₹53.63 lakhs. This was due to the purchase of fixed assets amounting to ₹61.32 lakhs, partially offset by the sale or disposal of fixed assets, which generated ₹7.69 lakhs.

Financing Activities: The cash flow from financing activities experienced a notable net outflow of ₹9,548.53 lakhs. This outflow was primarily driven by substantial repayments of long-term borrowings and other long-term liabilities, totaling ₹13,818.48 lakhs and ₹4,759.71 lakhs, respectively. However, this was partially countered by receipts from long-term loans and advances of ₹7,629.66 lakhs and the issuance of equity shares amounting to ₹1,400.00 lakhs.

Overall Cash Flow: The net result of these activities was a decrease in cash and cash equivalents by ₹1,264.11 lakhs. The cash and cash equivalents at the beginning of the year were ₹4,448.46 lakhs, and at the end of the year, they stood at ₹3,184.34 lakhs, reflecting the net decrease disclosed.

 Financial Ratios of Max Value Credits and Investments Ltd.

Here is a summary of the financial and operational metrics for Power Exchange Limited for the year 2023 and 2024:

Current Ratio: The current ratio increased significantly from 1.06 in 2023 to 1.65 in 2024. This ratio, calculated as current assets divided by current liabilities, measures the company 's ability to cover its short-term obligations with its short-term assets. The rise indicates an improved liquidity position, suggesting the company is in a better position to meet its short-term liabilities compared to the previous year.

Quick Ratio: The quick ratio, which also improved from 1.05 in 2023 to 1.65 in 2024, provides a more stringent measure of liquidity by excluding inventories from current assets. The increase in this ratio suggests that the company 's liquid assets, excluding inventory, are now more capable of covering its short-term liabilities, further indicating enhanced financial stability.

Cash Ratio: The cash ratio increased from 0.13 in 2023 to 0.18 in 2024. This ratio, calculated as cash and cash equivalents divided by current liabilities, measures the company’s ability to pay off its short-term liabilities using only its most liquid assets. The increase, though modest, reflects an improved ability to cover short-term obligations directly with cash.

Short-term Liability to Total Assets: This ratio decreased from 51.79% in 2023 to 35.14% in 2024. It measures the proportion of the company’s total assets financed by short-term liabilities. The decrease indicates a reduction in reliance on short-term debt for asset financing, which can imply improved financial stability and reduced liquidity risk.

Short-term Liability to Long-term Assets: The ratio decreased from 114.15% in 2023 to 83.39% in 2024. This measures how much of the long-term assets are financed by short-term liabilities. The reduction indicates that a smaller portion of long-term assets is being financed through short-term liabilities, improving the company’s financial structure.

NCD (Short-term) to Total Assets: The ratio increased slightly from 2.08% in 2023 to 2.47% in 2024. This ratio measures the proportion of non-convertible debentures (short-term) relative to total assets. The increase suggests a slight rise in short-term non-convertible debentures as a percentage of total assets.

Short-term Liability to Total Liabilities: This ratio decreased from 51.79% in 2023 to 35.14% in 2024, showing a reduced proportion of short-term liabilities relative to total liabilities. This reflects a decrease in the proportion of short-term debt within the company’s overall liability structure, improving financial stability.

Short-term Liability to Total Liabilities (Excluding Shareholders ' Funds): The ratio decreased from 58.49% in 2023 to 43.6% in 2024. This percentage measures short-term liabilities as a fraction of total liabilities, excluding shareholders ' equity. The decrease indicates a reduced reliance on short-term liabilities in the total capital structure, enhancing financial stability.

Long-term Assets to Total Assets: This ratio decreased from 45.37% in 2023 to 42.14% in 2024. It measures the proportion of long-term assets within total assets. The decrease suggests that a smaller proportion of total assets are tied up in long-term assets, which could reflect changes in asset management or investment strategy.

Debt-Equity Ratio: The debt-equity ratio improved significantly from 6.18 in 2023 to 3.3 in 2024. This ratio, calculated as total debt divided by shareholders ' equity, indicates a reduction in financial leverage and risk. The decrease suggests a reduction in the company’s dependence on debt financing relative to equity, improving the balance between debt and equity.

Debt Service Coverage Ratio: The debt service coverage ratio declined from 0.29 in 2023 to 0.2 in 2024. This ratio measures the company’s ability to cover its debt service obligations (interest and principal repayments) from operating income. The decrease indicates a reduced capacity to meet debt obligations, which may signal increased financial pressure.

Return on Equity (ROE): The ROE improved dramatically from -26.20% in 2023 to 12.03% in 2024. This ratio measures the return generated on shareholders ' equity. The positive shift indicates a turnaround in profitability, with the company now generating a solid return on equity compared to the previous year’s negative return.

Net Capital Turnover Ratio: The net capital turnover ratio decreased from 7.97 in 2023 to 1.06 in 2024. This ratio measures how effectively the company generates revenue from its capital. The significant decline suggests a sharp drop in revenue generation efficiency relative to capital employed, which could indicate decreased operational efficiency or a change in capital structure.

Net Profit Ratio: The net profit ratio improved from -14.40% in 2023 to 8.33% in 2024. This ratio measures the percentage of revenue that translates into net profit. The positive shift indicates that the company has moved from a loss-making position to a profitable one, reflecting improved cost management or increased revenue.

Return on Capital Employed (ROCE): The ROCE decreased from 71.75% in 2023 to 65.71% in 2024. This ratio measures the profitability of capital employed in the business. Despite the decrease, a ROCE of 65.71% still indicates strong profitability and effective use of capital, although slightly lower than the previous year.