Pharmax Corporation Annual Reports, Balance Sheet and Financials

Pharmax Corporation Limited Standalone Balance Sheet (Rs. In Lakhs)

Particular	31-03-2024	31-03-2023
Non- Current assets
Property, Plant and Equipment	0.70	1.13
Investment property	14,358.33	8,152.28
Deferred tax assets (net)	-	13.82
Other non-current assets	204.56	768.21
Current assets
Trade receivables	7.71	23.70
Other financial assets	295.43	134.44
Cash and cash equivalents	145.02	301.21
Bank balances other than above	459.57	797.17
Other current assets	451.41	718.70
Current tax assets	96.46	101.82
Total Assets	16,018.65	11,012.47
Equity
Equity Share Capital	473.89	473.89
Other Equity	1,255.67	1,138.51
Non-current liabilities
Borrowings	6,806.50	4,336.39
Other non-current financial liabilities	1,034.06	372.97
Long term provision	20.30	13.86
Deferred tax liabilities	220.17	-
Current liabilities
Borrowings	4,455.18	3,900.87
Trade payables
Total outstanding dues of micro enterprises and small enterprises	-	-
Total outstanding dues other than above	16.48	9.26
Other financial liabilities	1,658.17	734.10
Short term provision	22.46	14.74
Other current liabilities	55.77	17.88
Total equity and liabilities	16,018.65	11,012.47

Pharmax Corporation Limited Standalone Profit & Loss (Rs. In Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from operations	1,041.21	710.52
Other Income	87.25	43.82
Total income	1,128.46	754.34
Expenses
Employee benefits expense	0.63	-
Finance cost	364.90	365.66
Depreciation and amortization expense	189.37	73.53
Other expenses	191.37	96.24
Total expenses	746.27	535.43
Profit/(loss) Before Tax	382.19	218.91
Current tax	-	38.25
Less: MAT credit entitlement	-	(38.25)
Deferred tax	239.61	(78.71)
Income tax paid for earlier years	18.65	-
Profit/(loss) after tax	123.93	297.62
Earnings per equity share (in Rs.)
Basic	0.16	0.58
Diluted	0.19	0.39

Pharmax Corporation Limited Standalone Cash Flow Statement (Rs. In Lakhs)

Particular	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit/(loss) before tax	382.19	218.91
Adjustments for:
Depreciation of property, plant and equipment	189.37	73.53
Deferred guarantee fee	(4.13)	(4.12)
Profit on sale of current investments	-	(11.16)
Amortisation of deferred income	(40.77)	(28.54)
Revenue from rentals	161.01	(70.66)
Finance cost	364.90	365.66
Operating Profit before Working Capital Changes	1,052.57	543.63
Adjustments for:
Movement in provision, gratuity and leave encashment	14.16	28.60
Increase/(Decrease) in other current financial liabilities	964.84	582.67
(Increase)/decrease in Trade receivables	16.53	(11.93)
Increase/(decrease) in other non-current financial liabilities	289.04	48.44
(Increase)/decrease in other current assets	267.29	(478.97)
(Increase)/decrease in other current financial assets	(322.00)	114.51
Increase/(decrease) in trade and other payables	45.10	12.33
Cash generated from operations	2,327.52	838.89
Income tax paid	-	22.21
Net Cash generating from Operating Activities	2,327.52	861.10
Cash Flow from Investing Activities
Proceed/(Purchase) of PPE	-	(73.37)
Investments in FDR’s	337.60	(734.73)
Investments in mutual funds	-	1,285.44
Purchase of investment property	(5,831.78)	(3,945.27)
Net Cash from Investing Activities	(5,494.18)	(3,467.93)
Cash Flow from Financing Activities
Reduction in share capital & share premium	-	(1,238.65)
Proceed from long-term borrowings	2,450.00	4,072.85
Proceed from short-term borrowing	560.47	-
Net Cash from Financing Activities	3,010.47	2,834.20
Net Increase/(Decrease) in Cash and Cash Equivalents	(156.19)	227.37
Opening balance of cash and cash equivalents	301.21	73.84
Closing balance of cash and cash equivalents	145.02	301.21

Summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

The company’s cash flow from operations improved significantly, rising to ₹2,327.52 lakh in 2024 from ₹861.10 lakh in 2023. This jump was mainly driven by better working capital management—higher liabilities, provisions, and receivables adjustments. Stronger operating cash shows that the business generated much higher internal funds compared to the previous year, strengthening its core financial health.

Cash Flow from Investing Activities

Investing activities showed a heavy outflow of ₹5,494.18 lakh in 2024 compared to ₹3,467.93 lakh in 2023. The major reason was the purchase of investment property worth ₹5,831.78 lakh, which indicates expansion or long-term asset building. On the positive side, investment in fixed deposits added inflows of ₹337.60 lakh, but overall, high property investments led to large negative cash flow.

Cash Flow from Financing Activities

From financing, the company generated ₹3,010.47 lakh in 2024, slightly higher than ₹2,834.20 lakh in 2023. The inflow was mainly from long-term borrowings (₹2,450 lakh) and short-term borrowings (₹560.47 lakh). Unlike 2023, there was no reduction in share capital or premium, which kept financing stronger. This shows the company relied on borrowings to fund investments and operations.

Net Cash Movement

Despite strong operating inflows and higher financing support, the huge investment outflows led to a net decrease in cash by ₹156.19 lakh in 2024, compared to a net increase of ₹227.37 lakh in 2023. The closing cash balance fell to ₹145.02 lakh from ₹301.21 lakh last year.

Pharmax Corporation Limited Financial Ratios

Particular	31-03-2024	31-03-2023
Current Ratio (in times)	0.23	0.44
Debt Equity Ratio (in times)	6.51	7.53
Debt Service Coverage Ratio (in times)	0.08	0.05
Return on Equity Ratio (in times)	0.07	0.18
Net capital Turnover Ratio (in times)	(0.22)	(0.27)
Net Profit Ratio (in times)	0.12	0.42
Return on Capital Employed Ratio (in %)	8.75%	9.83%
Trade Receivable Turnover Ratio (in times)	67.46	40.08

Summary of the financial ratio for the years 2024 and 2023:

Current Ratio

The current ratio declined to 0.23 in 2024 from 0.44 in 2023, showing very weak short-term liquidity. The company has insufficient current assets to cover its current liabilities, which may lead to difficulty in meeting short-term obligations.

Debt-Equity Ratio

The ratio stood at 6.51 in 2024, slightly better than 7.53 in 2023, but still very high. This indicates the company is heavily dependent on debt financing compared to its equity, which raises financial risk and pressure on repayment.

Debt Service Coverage Ratio

The DSCR improved marginally to 0.08 in 2024 from 0.05 in 2023, but it is still extremely low. This means the company’s earnings are not enough to comfortably cover debt repayment obligations, signalling weak debt-servicing capacity.

 Return on Equity

ROE fell to 0.07 times in 2024 from 0.18 times in 2023, reflecting poor returns to shareholders. The low profitability combined with high leverage indicates that equity holders are getting minimal benefit.

Net Capital Turnover Ratio

The ratio remains negative (-0.22 in 2024 vs. -0.27 in 2023), meaning the company is not using its working capital efficiently to generate sales. This suggests weak utilization of resources.

Net Profit Ratio

The net profit margin declined sharply to 0.12 times in 2024 from 0.42 times in 2023. This indicates profitability is very low, with only a small fraction of revenue being converted into profit.

Return on Capital Employed

ROCE reduced slightly to 8.75% in 2024 from 9.83% in 2023, showing weaker efficiency in using capital to generate profits. While still positive, the return is modest compared to the high debt levels.

Trade Receivables Turnover Ratio

The ratio improved significantly to 67.46 times in 2024 from 40.08 times in 2023. This means receivables are being collected much faster, which is a strong positive for liquidity and cash flow.