Modi Industries Annual Reports, Balance Sheet and Financials

Modi Industries Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
EQUITY AND LIABILITIES :
Share Capital	371.66	371.66
Reserves & Surplus	(22,691.30)	(23,402.63)
Non-current liabilities :
Long term borrowings	271.19	142.61
Other long term liabilities	8,714.65	5,207.33
Long term provisions	688.13	684.95
Current liabilities :
Short term borrowings	43,323.82	37,373.30
Trade payables:
Micro and Small Enterprises	5,976.04	5,069.68
Other than Micro and Small Enterprises	26,452.10	25,063.44
Other current liabilities	25,861.31	21,623.33
Short term provisions	480.32	668.04
TOTAL	89,447.92	72,801.71
ASSETS
Non-current assets
Tangible assets	15,149.70	14,444.54
Intangible assets	0.25	0.91
Capital work-in-progress	175.38	112.96
Non-current investments	743.72	743.72
Long term loans and advances	-	139.28
Other non current Assets (Fixed Tangible)	185.63	211.68
Current assets
Inventories	21,147.13	17,001.64
Trade receivables	40,755.34	31,131.76
Cash and cash equivalents	1,322.79	3,335.16
Other bank balances	385.12	440.39
Short term loans and advances	6,490.62	4,408.67
Other current assets	3,092.24	831.00
Total	89,447.92	72,801.71

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

Particulars	31-03-2025	31-03-2024
Revenue from operations	1,84,418.69	176990.81
Less: Excise duty	65,527.37	60,526.09
Revenue from operations (Net)	1,18,891.32	1,16,464.72
Other income	783.66	774.41
Total Income	1,19,674.98	1,17,239.13
Expenses
Cost of materials consumed	48,260.22	49,517.53
Purchases of stock-in-trade	662.36	546.42
Inventory held for sale	-	0.99
Changes in inventories of finished goods, work-in-progress, and stock-in-trade	(3,155.61)	736.54
Employee benefits expense	4,169.60	3,786.91
Finance costs	4,973.92	3,212.49
Depreciation and amortization expense	1,006.46	652.79
Other expenses	62,000.77	57,174.64
Total expenses	1,18,963.65	1,15,628.31
Profit before exceptional and extra-ordinary items and tax	711.33	1610.82
Exceptional items (Net)	-	(1357.60)
Profit before extra-ordinary items and tax	711.33	253.22
Profit before tax	711.33	253.22
Tax expenses	-	-
Profit from continuing operations	589.22	253.22
Profit from discontinuing operations	122.11	-
Net Profit for the year	711.33	253.22
Basic / Diluted Earnings per equity share of Rs. 10/- each	21.50	7.65

 Modi Industries Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
CASH FLOW FROM OPERATING ACTIVITES :
Profit before Tax	711.33	253.22
Less: Adjustment
Interest Income	13.90	27.80
Profit on Sale of Fixed Assets	125.95	15.33
Excess Provision written back	10.48	61.18
Unclaimed credit balances W/back	121.50	29.85
Reversal of diminution in value of Investment	-	30.2
Depreciation writte back	-	0.05
Dividend Income	126.00	105
Amount Written back	20.26	28.42
Add: Adjustments
Depreciation	1,006.46	652.79
Assets written off/Loss on sale of Assets/Stores	1.96	29.1
Interest Expenses on borrowings	4,428.36	4,069.97
Provision for Doubtful Debts & Advances	54.63	21.33
Amounts/Claims/Bad Debts written off	0.91	2.99
Provision for obsolete Raw Material, spare-parts & stores	41.00	-
Bad debts written-off	109.93	-
Operating Profit before Working Capital Changes	5,936.49	4,731.57
Adjustments:
Trade Receivables	(9,799.09)	(6,850.75)
Inventories	(4,186.52)	190.71
Trade Payable & Other Liabilities	4,275.63	(2,376.23)
Loans/Advances and other assets	(1,926.86)	(263.50)
Other bank balances	55.27	30.39
Cash Generated from Operations	(5,645.08)	(4,537.81)
Income tax paid	-	-
Net Cash from Operating Activities	(5,645.08)	(4,544.68)
CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Fixed Assets	(2,302.59)	(4,331.45)
Sale of Fixed Assets	572.75	58.63
Interest Received	13.33	17.00
Dividend Received	126.00	105
Deposit received against sale of assets	3,500.00
Net Cash Flow from Investing Activities	1,909.49	(4,150.82)
CASH FLOW FROM FINANCING ACTIVITIES :
Long Term borrowings from others	164.19	115.85
Short term borrowings (net)	5,950.02	16,035.06
Interest paid on borrowings	(3,634.42)	(3,779.64)
Advance Deposit given against borrowings from lenders	(2,500.00)	-
Net Cash from Financing Activities	(20.21)	12,371.27
Inter Unit Balances (Net)	1,743.43	(1,294.14)
Net Increase/(decrease) in cash and Cash Equivalents	(2,012.37)	2,388.50
Opening Cash and Cash Equivalents	3,335.16	946.66
Closing Cash and Cash Equivalents	1,322.79	3,335.16

Cash Flow Analysis of MODI INDUSTRIES LIMITED (FY 2024–25 vs FY 2023–24)

1) Cash Flow from Operating Activities

* The company reported profit before tax of ₹711.33 lakh, significantly higher than ₹253.22 lakh in the previous year, indicating improvement at the accounting level.

* After adjustments for non-cash and non-operating items such as depreciation, interest cost, and provisions, operating profit before working capital changes increased to ₹5,936.49 lakh from ₹4,731.57 lakh.

* However, heavy increases in trade receivables (₹9,799.09 lakh) and inventories (₹4,186.52 lakh) led to substantial blockage of funds in working capital. 

* Though trade payables and liabilities increased by ₹4,275.63 lakh, it was insufficient to offset the working capital outflow.

* As a result, cash generated from operations remained negative at ₹(5,645.08) lakh, similar to the previous year’s negative operating cash flow.

* This indicates that despite accounting profits, the core business is not generating cash due to higher receivables and inventory accumulation.

2) Cash Flow from Investing Activities

* The company invested ₹2,302.59 lakh in purchase of fixed assets, reflecting ongoing capital expenditure.

* Cash inflow came from sale of fixed assets (₹572.75 lakh) and deposit received against sale of assets (₹3,500.00 lakh).

* Dividend and interest income also contributed marginally to inflows.

* Overall, net cash flow from investing activities turned positive at ₹1,909.49 lakh, compared to a negative outflow in the previous year.

* This indicates asset monetization and recovery of investments helped support liquidity during the year.

3) Cash Flow from Financing Activities

* The company raised short-term borrowings of ₹5,950.02 lakh and long-term borrowings of ₹164.19 lakh.

* Significant interest payments of ₹3,634.42 lakh and advance deposits against borrowings reduced the net inflow.

* Consequently, net cash flow from financing activities remained almost neutral at ₹(20.21) lakh, compared to strong inflow in the previous year.

* This reflects reliance on borrowings to manage operations but limited net addition to cash due to high finance costs.

4) Overall Cash Position

* Inter-unit balances provided an inflow of ₹1,743.43 lakh during the year.

* Despite investing inflows, continued negative operating cash resulted in net decrease in cash and cash equivalents of ₹2,012.37 lakh.

* Closing cash balance declined to ₹1,322.79 lakh from ₹3,335.16 lakh in the previous year.

5) Interpretation

* The company shows improved accounting profitability but weak operating cash generation, mainly due to high receivables and inventory.

* Positive investing cash flow indicates asset restructuring or recovery of investments.

* Dependence on borrowings and high interest burden continues to pressure liquidity.

* The decline in closing cash suggests the need for better working capital management and stronger operational cash inflows to sustain financial stability.

Financial Ratios of Modi Industries Limited

Particulars	2025	2024
Current Ratio	0.72	0.66
Inventory Turnover ratio	38	36
Trade receivables turnover ratio	69	55
Trade payables turnover ratio	102	112
Net Profit Ratio	0.60	0.22
Return on capital employed	16.94	14.41

Ratio Analysis & Interpretation – MODI INDUSTRIES LIMITED

1. Current Ratio
The current ratio improved from 0.66 in 2024 to 0.72 in 2025, indicating a slight strengthening of short-term liquidity. However, the ratio remains below the ideal benchmark of 1:1, suggesting that the company may still face some pressure in meeting its short-term obligations through current assets.

2. Inventory Turnover Ratio
The inventory turnover ratio increased from 36 times in 2024 to 38 times in 2025. This reflects improved efficiency in inventory management and faster conversion of stock into sales, indicating effective operational control and reduced holding costs.

3. Trade Receivables Turnover Ratio
The receivables turnover ratio rose significantly from 55 times to 69 times. This suggests better credit management and quicker collection from customers, improving cash inflows and reducing the risk of bad debts.

4. Trade Payables Turnover Ratio

The trade payables turnover ratio declined from 112 times in 2024 to 102 times in 2025. This indicates that the company is taking slightly longer to pay its suppliers, which may support working capital management but should be monitored to maintain good supplier relationships.

5. Net Profit Ratio
The net profit ratio improved sharply from 0.22 to 0.60, reflecting a substantial increase in profitability. This indicates better cost control, improved operational performance, and higher earnings generated from sales.

6. Return on Capital Employed (ROCE)
ROCE increased from 14.41% in 2024 to 16.94% in 2025, showing improved efficiency in the utilization of capital. The company is generating better returns from its long-term funds, indicating strengthened financial performance and value creation for stakeholders.