Modi Industries Annual Reports | Balance Sheet | Financials

Modi Industries Limited (Modi Industries) Return Comparision with Primex 40 Index

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Modi Industries Limited

Modi Industries Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
EQUITY AND LIABILITIES :
Share Capital	371.66	371.66
Reserves & Surplus	-23,402.63	-23,655.85
Non-current liabilities :
Long term borrowings	142.61	26.76
Other long term liabilities	5,207.33	5,206.11
Long term provisions	684.95	660.37
Current liabilities :
Short term borrowings	37,373.30	21,338.24
Trade payables:
Micro and Small Enterprises	517.45	629.23
Other than Micro and Small Enterprises	30,776.15	35,483.16
Other current liabilities	20,462.85	18,018.09
Short term provisions	668.04	1,212.46
TOTAL	72,801.71	59,290.23
ASSETS
Non-current assets
Tangible assets	14,444.54	9,545.02
Intangible assets	0.91	2.23
Capital work-in-progress	112.96	973.17
Non-current investments	743.72	713.52
Long term loans and advances	139.28	157.34
Other non current Assets (Fixed Tangible)	211.68	194.25
Current assets
Inventories	17,001.64	17,193.65
Trade receivables	31,131.76	24,109.44
Cash and cash equivalents	3,335.16	946.66
Other bank balances	440.39	470.78
Short term loans and advances	4,408.67	4,459.71
Other current assets	831.00	524.46
Total	72,801.71	59,290.23

Modi Industries Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from operations	176990.81	139180.34
Less: Excise duty	62111.15	43379.16
Revenue from operations (Net)	114879.66	95801.18
Other income	774.41	1383.63
Total Income	115654.07	97184.81
Expenses
Cost of materials consumed	49,517.53	44,829.26
Purchases of stock-in-trade	546.42	53.74
Inventory held for sale	0.99	20.74
Changes in inventories of finished goods, work-in-progress, and stock-in-trade	736.54	-2,119.24
Employee benefits expense	5,373.02	4,955.54
Finance costs	3,212.49	1,944.44
Depreciation and amortization expense	652.79	508.08
Other expenses	54,003.47	44,717.53
Total expenses	1,14,043.25	94910.09
Profit before exceptional and extra-ordinary items and tax	1610.82	2280.72
Exceptional items (Net)	-1357.6	-1170.92
Profit before extra-ordinary items and tax	253.22	1109.8
Profit before tax	253.22	854.81
Tax expenses
Profit from discontinuing operations		254.99
Net Profit for the year	253.22	1109.8
Basic / Diluted Earnings per equity share of Rs. 10/- each	7.65	33.54

Modi Industries Limited Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
CASH FLOW FROM OPERATING ACTIVITES :
Profit before Tax	253.22	1,109.80
Less: Adjustment
Interest Income	34.67	60.47
Profit on Sale of Fixed Assets	15.33	179.75
Excess Provision written back	61.18	68.02
Unclaimed credit balances W/back	29.85	465.08
Reversal of diminution in value of Investment	30.2	-
Depreciation writte back	0.05	0.27
Dividend Income	105	42
Amount Written back	28.42	11.54
Add: Adjustments
Depreciation	652.79	508.08
Assets written off/Loss on sale of Assets/Stores	29.1	-
Interest Expenses on borrowings	4,069.97	2,900.89
Provision for Doubtful Debts & Advances	21.33	378.42
Amounts/Claims/Bad Debts written off	2.99	139.19
Provision for obsolete Raw Material, spare-parts & stores	-	36.75
Provision for diminution in value of Investment	-	0.2
Operating Profit before Working Capital Changes	4,724.70	4,246.20
Adjustments:
Trade Receivables	-6,850.75	-9,330.72
Inventories	190.71	-758.35
Trade Payable & Other Liabilities	-2,376.23	7,684.47
Loans/Advances and other assets	-263.50	-2,051.73
Other bank balances	30.39	479.18
Cash Generated from Operations	-4,544.68	269.05
Income tax paid	-	-
Net Cash from Operating Activities	-4,544.68	269.05
CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Fixed Assets	-4,331.45	-3,331.70
Sale of Fixed Assets	58.63	244.95
Interest Received	23.87	136.23
Dividend Received	105	42
Net Cash Flow from Investing Activities	-4,143.95	-2,908.52
CASH FLOW FROM FINANCING ACTIVITIES :
Long Term borrowings from others	115.85	26.76
Short term borrowings (net)	16,035.06	5,946.03
Interest paid on borrowings	-3,779.64	-3,078.03
Secured Debentures Paid	-	-329.6
Net Cash from Financing Activities	12,371.27	2,565.16
Inter Unit Balances (Net)	-1,294.14	476.29
Net Increase/(decrease) in cash and Cash Equivalents	2,388.50	401.98
Opening Cash and Cash Equivalents	946.66	544.68
Closing Cash and Cash Equivalents	3,335.16	946.66

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

Cash Flow from Operating Activities:

Profit before Tax: The company started with a profit before tax of ₹253.22 for the year ending 31st March 2024, which is significantly lower than the ₹1,109.80 recorded in the previous year.

Less: Adjustments: Certain non-operating income and non-cash entries were deducted to adjust the profit before tax. These include:

Interest Income: ₹34.67 in 2024, lower than ₹60.47 in 2023.

Profit on Sale of Fixed Assets: ₹15.33 in 2024, compared to a larger amount of ₹179.75 in 2023.

Excess Provision Written Back: ₹61.18 in 2024, similar to ₹68.02 in 2023.

Unclaimed Credit Balances Written Back: A reduction of ₹29.85 in 2024, compared to ₹465.08 in 2023.

Reversal of Diminution in Value of Investment: This adjustment was ₹30.2 in 2024 but did not occur in 2023.

Depreciation Written Back: Minor adjustments of ₹0.05 in 2024 and ₹0.27 in 2023.

Dividend Income: ₹105 in 2024, higher than ₹42 in 2023.

Other Amounts Written Back: ₹28.42 in 2024 and ₹11.54 in 2023.

Add: Adjustments: Other adjustments are added back to account for non-cash items:

Depreciation: Significantly increased to ₹652.79 in 2024 from ₹508.08 in 2023.

Assets Written Off or Loss on Sale of Assets/Stores: ₹29.1 in 2024, with no such adjustment in 2023.

Interest Expenses on Borrowings: Increased to ₹4,069.97 in 2024 from ₹2,900.89 in 2023, indicating higher borrowing costs.

Provision for Doubtful Debts and Advances: Much lower in 2024 at ₹21.33 compared to ₹378.42 in 2023.

Amounts/Claims/Bad Debts Written Off: Decreased to ₹2.99 in 2024 from ₹139.19 in 2023.

Provision for Obsolete Raw Material, Spare-parts, and Stores: Nil in 2024 but ₹36.75 was accounted for in 2023.

Provision for Diminution in Value of Investment: No provision in 2024, compared to ₹0.20 in 2023.

Operating Profit Before Working Capital Changes: After these adjustments, the operating profit before changes in working capital stood at ₹4,724.70 in 2024, slightly higher than ₹4,246.20 in 2023.

Adjustments for Working Capital:

Trade Receivables: A substantial outflow of ₹6,850.75 in 2024, compared to an outflow of ₹9,330.72 in 2023, indicating rising receivables.

Inventories: A small inflow of ₹190.71 in 2024, compared to an outflow of ₹758.35 in 2023.

Trade Payables & Other Liabilities: A large outflow of ₹2,376.23 in 2024, compared to an inflow of ₹7,684.47 in 2023.

Loans/Advances and Other Assets: An outflow of ₹263.50 in 2024, compared to ₹2,051.73 in 2023.

Other Bank Balances: An inflow of ₹30.39 in 2024, compared to ₹479.18 in 2023.

Cash Generated from Operations: After working capital adjustments, the company had a net cash outflow of ₹4,544.68 in 2024, compared to a small inflow of ₹269.05 in 2023.

Income Tax Paid: No income tax was paid in either year.

Net Cash from Operating Activities: The company reported a net cash outflow of ₹4,544.68 in 2024, while in 2023 there was a small net inflow of ₹269.05.

Cash Flow from Investing Activities:

Purchase of Fixed Assets: Cash outflows for asset purchases amounted to ₹4,331.45 in 2024, compared to ₹3,331.70 in 2023.

Sale of Fixed Assets: Cash inflows from the sale of fixed assets were ₹58.63 in 2024, lower than ₹244.95 in 2023.

Interest Received: Cash inflows from interest were ₹23.87 in 2024, down from ₹136.23 in 2023.

Dividend Received: Dividends received increased to ₹105 in 2024, compared to ₹42 in 2023.

Net Cash Flow from Investing Activities: Overall, there was a net cash outflow of ₹4,143.95 in 2024, which was larger than the outflow of ₹2,908.52 in 2023, indicating higher investment-related spending.

Cash Flow from Financing Activities:

Long-term Borrowings from Others: The company received ₹115.85 from long-term borrowings in 2024, compared to ₹26.76 in 2023.

Short-term Borrowings (Net): Cash inflows from short-term borrowings were significantly higher at ₹16,035.06 in 2024, compared to ₹5,946.03 in 2023.

Interest Paid on Borrowings: The company paid ₹3,779.64 in interest in 2024, slightly down from ₹3,078.03 in 2023.

Secured Debentures Paid: No payment of secured debentures in 2024, whereas ₹329.60 was paid in 2023.

Net Cash from Financing Activities: The company generated a net cash inflow of ₹12,371.27 in 2024, up from ₹2,565.16 in 2023, indicating an increase in financing activities.

Inter Unit Balances (Net): There was an outflow of ₹1,294.14 in 2024, compared to an inflow of ₹476.29 in 2023.

Net Increase (Decrease) in Cash and Cash Equivalents:

Net Increase: The net increase in cash and cash equivalents was ₹2,388.50 in 2024, significantly higher than ₹401.98 in 2023.

Opening Cash and Cash Equivalents: The opening cash balance for 2024 was ₹946.66, compared to ₹544.68 in 2023.

Closing Cash and Cash Equivalents: The closing cash balance for 2024 was ₹3,335.16, a significant increase from ₹946.66 in 2023.

Financial Ratios of Modi Industries Limited

Particulars	2024	2023
Current Ratio	0.66	0.65
Inventory Turnover ratio	36	45
Trade receivables turnover ratio	55	49
Trade payables turnover ratio	112	132
Net Profit Ratio	0.22	1.16
Return on capital employed	14.41	5.89

Here is a summary of the financial and operational metrics for Modi Industries Limited for the years 2024 and 2023:

Current Ratio: (0.66 in 2024, compared to 0.65 in 2023):

The current ratio, which measures a company 's ability to meet its short-term liabilities with short-term assets, has marginally increased from 0.65 to 0.66. However, a ratio below 1 indicates that the company might still struggle to cover its short-term obligations with its current assets. The slight increase shows minimal improvement, but liquidity risk remains.

Inventory Turnover Ratio: (36 in 2024, compared to 45 in 2023):

The inventory turnover ratio, which shows how efficiently the company is managing its stock by converting it into sales, has decreased from 45 to 36. A lower ratio suggests that inventory is turning over at a slower rate, meaning the company might be holding onto stock for longer, possibly indicating declining sales or overstocking.

Trade Receivables Turnover Ratio: (55 in 2024, compared to 49 in 2023):

This ratio has improved from 49 to 55, which is a positive indicator. A higher trade receivables turnover ratio means that the company is more efficiently collecting payments from its customers. This suggests improved cash flow management and quicker collection of receivables in 2024.

Trade Payables Turnover Ratio: (112 in 2024, compared to 132 in 2023):

The trade payables turnover ratio has decreased from 132 to 112. A lower ratio could indicate that the company is taking longer to pay its suppliers, which might be a strategy to conserve cash. However, it can also signal potential cash flow issues or a strained relationship with suppliers if payments are delayed too much.

Net Profit Ratio: (0.22% in 2024, compared to 1.16% in 2023):

The net profit ratio has sharply declined from 1.16% to 0.22%. This indicates a significant drop in profitability for the year. Despite revenues, the company is generating much lower profit from its operations, possibly due to rising costs, reduced margins, or lower sales.

Return on Capital Employed (ROCE): (14.41% in 2024, compared to 5.89% in 2023):

The ROCE has more than doubled, rising from 5.89% to 14.41%. This is a very positive indicator, suggesting that the company is using its capital more effectively in 2024 to generate profits. It shows improved operational efficiency and better returns on investments made with the company’s capital base, despite the drop in the net profit margin.