Chumta Tea Annual Reports, Balance Sheet and Financials

New Chumta Tea Company limited Balance Sheet (Rs in Lakhs)

 New Chumta Tea Company limited Profit & Loss Statement (Rs in Lakhs)

 New Chumta Tea Company limited Consolidated 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 company reported a loss before tax of ₹97.39 lakhs in 2024, compared to a profit of ₹157.96 lakhs in 2023. After adjusting for non-cash items like depreciation and finance costs, the operating profit before working capital changes was ₹-73.43 lakhs, down from ₹289.02 lakhs the previous year. Significant improvements in trade receivables and loans/advances generated substantial positive cash flow, amounting to ₹2,452.58 lakhs in 2024, up from ₹416.52 lakhs in 2023. This improvement was driven by better working capital management, notably the collection of receivables.

Cash Flow from Investing Activities

Investing activities showed a net outflow of ₹2,436.01 lakhs in 2024, slightly less negative than the ₹529.22 lakhs outflow in 2023. The main cash outflow was due to purchase of investments (₹2,557.07 lakhs) in 2024, compared to ₹455.7 lakhs the previous year. There was a positive inflow of ₹128.59 lakhs from the sale of property, plant, and equipment, but overall, the heavy investment outflows overshadowed this.

Cash Flow from Financing Activities

Financing activities were minimal in 2024. The company made a small loan repayment of ₹4.65 lakhs and paid ₹6.49 lakhs in interest. No new working capital loans were raised, compared to ₹142.19 lakhs in 2023. The result was a marginal outflow, but the net cash change from financing activities was negligible.

Net Change in Cash and Cash Equivalents

Overall, despite significant cash inflows from operating activities, the high outflows from investing activities led to a small net increase in cash of ₹14.73 lakhs. The company started the year with ₹12.24 lakhs in cash and ended with ₹26.97 lakhs, reflecting improved liquidity but with significant investments made during the year.

Financial Ratios of New Chumta Tea Company limited

Here is a summary of the financial and operational metrics for New Chumta Tea Company limited for the year 2024 and 2023:

Current Ratio

The current ratio measures the company’s ability to meet its short-term obligations using its current assets. In 2024, the ratio improved significantly to 1.26 from 0.54 in 2023, indicating that the company now has more liquidity to cover its short-term liabilities. A ratio above 1 suggests that the company is more capable of meeting its short-term obligations, marking a considerable improvement in its liquidity position compared to the previous year, when it was less solvent.

Debt-Equity Ratio

This ratio shows the proportion of debt to equity in the company’s capital structure. In 2024, the debt-equity ratio declined to 0.19 from 0.49 in 2023, signaling a reduction in the company’s reliance on debt for financing. This lower ratio indicates that the company has reduced its financial risk by using more equity relative to debt, which suggests a healthier balance sheet compared to the prior year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio reflects how efficiently the company collects payments from its customers. In 2024, the ratio plummeted to 0.88 from a very high 34.51 in 2023, indicating a sharp decline in the company’s ability to collect its receivables. This suggests that customers are taking much longer to pay in 2024 compared to 2023, which could negatively affect cash flow and overall working capital management.

Trade Payables Turnover Ratio

This ratio measures how quickly the company pays its suppliers. In 2024, the ratio dropped to 1.09 from 18.72 in 2023, meaning the company is taking much longer to pay its suppliers. This could indicate an effort to improve cash flow by extending payment terms, but it may also suggest liquidity challenges or strained relationships with suppliers if payments are delayed excessively.

Net Capital Turnover Ratio

The net capital turnover ratio indicates how efficiently the company uses its working capital to generate revenue. In 2024, the ratio improved to 0.53 from -6.41 in 2023, which is a significant turnaround. A positive ratio in 2024 means the company is now able to generate revenue from its working capital, whereas in 2023, the negative ratio indicated that the company was highly inefficient or even unable to generate revenue from its capital, reflecting major improvements in operational efficiency.

Net Profit Ratio

The net profit ratio shows the percentage of revenue that turns into profit. In 2024, the ratio surged dramatically to 65.61% from just 0.03% in 2023. This enormous increase suggests the company experienced a major boost in profitability, likely due to higher margins or exceptional income. The sharp contrast indicates a significant improvement in the company’s financial health, as it is now retaining a much larger portion of its revenues as profit.