NCDEX Annual Reports, Balance Sheet and Financials

Sri Kannapiran Mills Limited Balance Sheet (Rs in Lakhs)

Sri Kannapiran Mills Limited Profit & Loss Statement (Rs in Lakhs)

Sri Kannapiran Mills Limited Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities: The cash flow from operating activities shows a significant outflow, with net cash used increasing from Rs. 9,689 lakhs in FY 2022-23 to Rs. 5,541 lakhs in FY 2023-24. This negative cash flow is primarily due to a substantial loss before tax, which worsened from Rs. 5,801 lakhs to Rs. 3,320 lakhs. Despite adjustments such as depreciation and amortization, provisions for doubtful debts, and interest on lease liabilities, the overall operating cash flow remains negative. Movements in working capital had a mixed impact: a decrease in trade receivables provided some relief, while increases in trade payables and other financial liabilities were offset by significant outflows related to other financial assets and deposits. The overall result is a substantial net outflow from operating activities, reflecting ongoing operational challenges.

Cash Flow from Investing Activities: In investing activities, there was a net inflow of Rs. 9,597 lakhs in FY 2023-24, compared to a smaller inflow of Rs. 9,714 lakhs in FY 2022-23. This positive cash flow was largely driven by substantial changes in investments. Notably, there was a major inflow from the redemption and maturity of fixed deposits (Rs. 3,62,586 lakhs) and proceeds from the sale of current investments (Rs. 2,13,692 lakhs), which outweighed the cash outflows for purchasing current investments (Rs. 2,14,645 lakhs). Additionally, the company realized some cash inflows from the sale of a stake in an associate and interest received, contributing positively to the net cash generated from investing activities.

Cash Flow from Financing Activities: The cash flow from financing activities shows a small net outflow of Rs. 641 lakhs in FY 2023-24, slightly improved from Rs. 841 lakhs in FY 2022-23. This outflow primarily resulted from the repayment of lease liabilities and minimal financing activities, including no significant proceeds from the issuance of shares or payment of finance costs. The absence of dividend payments in FY 2023-24 contrasts with the previous year 's payments, highlighting a strategic shift in financial management.

Net Increase in Cash and Cash Equivalents: The overall cash position improved with a net increase of Rs. 3,415 lakhs in cash and cash equivalents for FY 2023-24, compared to a decrease of Rs. 816 lakhs in FY 2022-23. This increase was largely due to the positive cash flows from investing activities, which offset the negative cash flows from operating and financing activities. As a result, the ending cash and cash equivalents rose to Rs. 9,781 lakhs from Rs. 6,366 lakhs at the beginning of the year. This improvement in liquidity is supported by higher balances in cash and cheques, current accounts, and fixed deposits with short maturities.

Financial Ratios of Sri Kannapiran Mills Limited

Here is a summary of the financial and operational metrics for Sri Kannapiran Mills Limited for the year 2024 and 2023:

Current Ratio:

The current ratio has improved slightly from 1.5 in 2023 to 1.6 in 2024. This ratio measures the company 's ability to meet its short-term liabilities with its short-term assets. An increase in the current ratio suggests a marginal improvement in liquidity, indicating that the company has a slightly better cushion to cover its current obligations.

Debt Service Coverage Ratio (DSCR):

The Debt Service Coverage Ratio has significantly improved from -8.4 in 2023 to 2.7 in 2024. This ratio assesses the company’s ability to service its debt from its operating income. The negative DSCR in 2023 indicates severe difficulties in meeting debt obligations, while the positive ratio of 2.7 in 2024 suggests that the company is now comfortably covering its debt service requirements

Return on Equity (ROE):

The Return on Equity ratio has improved from -11.60% in 2023 to -1% in 2024. This ratio measures the profitability relative to shareholders ' equity. Although still negative, the improvement indicates that the company 's financial performance has become less adverse.

Trade Receivables Turnover Ratio:

The Trade Receivables Turnover Ratio increased from 6.4 in 2023 to 8.8 in 2024. This ratio indicates how efficiently the company collects its receivables. An increase suggests improved efficiency in managing and collecting accounts receivable.

Trade Payables Turnover Ratio:

The Trade Payables Turnover Ratio decreased from 8.1 in 2023 to 7.8 in 2024. This ratio measures how quickly the company pays its trade payables. A decrease in the ratio implies that the company is taking slightly longer to pay its suppliers.

Net Capital Turnover Ratio:

The Net Capital Turnover Ratio decreased from 1 in 2023 to 0.8 in 2024. This ratio measures how efficiently the company uses its capital to generate sales. A decrease suggests a decline in capital efficiency, meaning the company is generating less revenue per unit of capital employed.

Net Profit Ratio:

The Net Profit Ratio improved from -148.10% in 2023 to -11.60% in 2024. This ratio measures the percentage of revenue that translates into profit. Although still negative, the improvement indicates that the company has significantly reduced its losses relative to revenue.

Return on Capital Employed (ROCE):

The Return on Capital Employed decreased from -15.80% in 2023 to -2.50% in 2024. This ratio evaluates the efficiency of capital use in generating profits. The decrease in the negative ROCE suggests an improvement in the company’s ability to generate returns from its capital investments, though it remains below positive levels.

Return on Fixed Deposit (FD) Investment:

The Return on Fixed Deposit Investments improved from 5.60% in 2023 to 7% in 2024. This ratio reflects the return earned on fixed deposits. The increase indicates that the company has achieved higher returns on its FD investments.

1Return on Liquid Mutual Fund:

The Return on Liquid Mutual Funds improved from 5.30% in 2023 to 7% in 2024. This ratio measures the return earned from liquid mutual fund investments. The improvement reflects better performance or higher returns from these investments, suggesting effective investment strategies in liquid assets.

Return on Bond Investments:

The Return on Bond Investments remained stable at 7% in both 2023 and 2024. This ratio shows the return earned from bond investments. The stability indicates consistent performance from bond investments, reflecting a stable return environment or effective bond portfolio management.

Dividend History