Oswal Minerals Ltd Annual Reports, Balance Sheet & Financials

Oswal Minerals Limited Balance Sheet (Rs in Lakhs)

Oswal Minerals Limited Profit & Loss Statement (Rs in Lakhs)

Oswal Minerals 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

Net Profit Before Tax:

2024: -5,480.89

2023: 3,541.20

Explanation: In 2024, the company reported a significant loss before tax compared to a profit in 2023. This indicates a decline in profitability or possibly increased operational costs.

Adjustments:

Depreciation / Amortization:

2024: 91.1

2023: 62.76

Explanation: Depreciation and amortization have increased in 2024, suggesting higher capital expenditures or changes in asset usage.

Interest Cost:

2024: 1,899.12

2023: 1,155.92

Explanation: The interest cost has risen, likely due to increased borrowings or higher interest rates.

Recovery of Bad Debts:

2024: -70.59

2023: -15.82

Explanation: Recovery of bad debts has increased, implying that more previously written-off amounts have been recovered in 2024.

Prepaid Rent Amortization:

2024: 9.51

2023: 5.05

Explanation: The amortization of prepaid rent has increased, indicating changes in lease agreements or higher prepaid amounts.

Unwinding Security Deposit:

2024: -8.16

2023: -11.07

Explanation: The unwinding of security deposits has decreased, which might indicate fewer deposits being recognized as income.

Interest Received:

2024: -0.25

2023: -1.47

Explanation: Interest income has decreased, possibly due to lower cash balances or lower interest rates.

Profit on Sale of Fixed Asset:

2024: -0.14

2023: -0.09

Explanation: The profit from asset sales is relatively insignificant and has increased slightly.

Operational Profit Before Working Capital Changes:

2024: -3,560.30

2023: 4,736.47

Explanation: This measure shows a substantial decline in operational performance in 2024 compared to 2023, indicating a significant operational loss.

Adjustments for Working Capital Changes:

Other Non-Current Assets:

2024: -15.3

2023: -3.88

Explanation: An increase in non-current assets suggests additional investments or capital expenditures.

Inventories:

2024: 23,019.53

2023: -11,255.14

Explanation: A significant increase in inventories in 2024 could indicate stockpiling or slower sales.

Trade Receivables:

2024: 5,103.23

2023: -25,464.62

Explanation: An increase in trade receivables suggests higher outstanding invoices or slower collection periods.

Other Current Assets:

2024: -757.1

2023: 1,033.21

Explanation: A decrease indicates a reduction in other current assets or higher asset realizations.

Other Balances with Bank:

2024: -12.6

2023: 243.8

Explanation: A decrease in other bank balances might indicate usage or withdrawal of funds.

Other Non-Current Liabilities:

2024: 78.83

2023: -

Explanation: New non-current liabilities were recorded in 2024, potentially indicating new long-term obligations.

Trade Payables:

2024: -30,058.09

2023: 28,895.49

Explanation: A decrease in trade payables suggests that the company is paying off its suppliers or creditors more quickly.

Other Current Liabilities:

2024: -616.47

2023: -1,675.94

Explanation: A decrease in current liabilities indicates either payment of obligations or reduction in short-term liabilities.

Cash Generated from Operations:

2024: -6,818.27

2023: -3,490.60

Explanation: The negative cash flow from operations has worsened in 2024, indicating a higher operational cash deficit.

Income Tax Paid:

2024: -361.69

2023: -874.54

Explanation: A decrease in income tax paid suggests lower taxable income or tax benefits.

Net Cash Flows from Operating Activities:

2024: -7,179.97

2023: -4,365.14

Explanation: The net cash flow from operating activities has become more negative, reflecting worsening operational cash flows.

Cash Flow from Investing Activities

Additions to Fixed Assets:

2024: -71.33

2023: -247.69

Explanation: Lower capital expenditure in 2024 compared to 2023 indicates reduced investment in fixed assets.

Interest Received:

2024: 0.25

2023: 1.47

Explanation: Reduced interest income from investments or lower cash balances.

Sale/Adjustments of Fixed Assets:

2024: 0.47

2023: 0.32

Explanation: Slightly higher proceeds from asset sales, though still minimal.

Net Cash from/(used in) Investing Activities:

2024: -70.60

2023: -245.90

Explanation: Reduced cash outflow from investing activities, possibly due to fewer asset purchases.

Cash Flow from Financing Activities

Interest Paid:

2024: -1,899.12

2023: -1,155.92

Explanation: Increased interest payments, likely due to higher borrowings or interest rates.

Net Proceeds from Long & Short-Term Borrowings:

2024: 9,104.54

2023: 5,779.44

Explanation: Increased borrowings in 2024 suggest a reliance on debt financing to support operations or investments.

Net Cash from Financing Activities:

2024: 7,205.42

2023: 4,623.52

Explanation: The increase in net cash from financing activities reflects higher borrowings.

Net Cash Flow During the Year

Net Cash Flow during the Year:

2024: -45.15

2023: 12.48

Explanation: The net cash flow for 2024 is negative, indicating a net decrease in cash over the year compared to a small increase in 2023.

Opening Balance of Cash and Cash Equivalents:

2024: 74.96

2023: 62.48

Explanation: Higher opening cash balance in 2024.

Closing Balance of Cash and Cash Equivalents:

2024: 29.81

2023: 74.96

Explanation: The closing cash balance has decreased, reflecting the net cash outflow during the year.

Components of Cash and Cash Equivalents:

Cash on Hand:

2024: 21.17

2023: 18.61

Balances with Banks in Current Account:

2024: 8.64

2023: 56.35

Explanation: Cash on hand has increased, while bank balances have decreased significantly, contributing to the overall decrease in cash and cash equivalents.

Financial Ratios of Oswal Minerals Limited

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

Debtors Turnover Ratio

2023-24: 2.2294

2022-23: 4.9887

Insight: The Debtors Turnover Ratio has significantly decreased from 4.9887 in 2022-23 to 2.2294 in 2023-24. This indicates that the company is taking longer to collect payments from its customers. The drop could be due to slower collections, an increase in receivables, or worsening credit conditions.

Inventory Turnover Ratio

2023-24: 5.843

2022-23: 9.4077

Insight: The Inventory Turnover Ratio has decreased from 9.4077 to 5.843, suggesting that inventory is turning over more slowly. This could indicate overstocking, reduced sales, or inefficiencies in inventory management. The slower turnover could tie up capital in inventory and increase holding costs.

Interest Coverage Ratio

2023-24: -0.0833

2022-23: 0.1308

Insight: The Interest Coverage Ratio has declined sharply from 0.1308 to -0.0833, moving into negative territory. This indicates that the company 's earnings before interest and taxes (EBIT) are insufficient to cover its interest expenses. A negative ratio is a serious red flag, showing that the company is struggling to meet its interest obligations, which could signal financial distress.

Current Ratio

2023-24: 1.426

2022-23: 1.2622

Insight: The Current Ratio has improved from 1.2622 to 1.426. This suggests that the company’s liquidity position has strengthened, with current assets more comfortably covering current liabilities. While this is a positive sign of short-term financial health, it must be viewed alongside other metrics to ensure it reflects overall business health.

Debt Equity Ratio

2023-24: 7.4059

2022-23: 2.9415

Insight: The Debt Equity Ratio has risen dramatically from 2.9415 to 7.4059. This substantial increase indicates a significant rise in the company’s leverage, with much higher debt relative to equity. Such a high ratio suggests that the company is heavily reliant on debt financing, which increases financial risk and could lead to issues with solvency, especially if earnings do not improve.

Operating Profit Margin (%)

2023-24: -1.88%

2022-23: 1.7%

Insight: The Operating Profit Margin has shifted from a positive 1.7% to a negative -1.88%. This decline reflects a move from an operational profit to an operational loss, indicating that the company’s core business operations are no longer profitable. This could be due to increased costs, declining sales, or inefficiencies.

Net Profit Margin (%)

2023-24: -2.88%

2022-23: 0.89%

Insight: The Net Profit Margin has worsened from a positive 0.89% to a negative -2.88%. This decline signifies that the company is not only unprofitable at the operating level but also at the net income level, after accounting for all expenses, taxes, and interest. The negative margin indicates that the company is experiencing significant losses, which could be due to poor operational performance or high financial costs.

Dividend History

 Oswal Minerals Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 4,461.56 Lakhs, while in 2023, they were Rs. 9,938.01 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance