Pincon Spirit Limited Annual Report and Financials

PINCON SPIRIT LIMITED Balance Sheet (In Rs)

 PINCON SPIRIT LIMITED Profit & Loss Statement (In Rs)

PINCON SPIRIT LIMITED Consolidated Cash Flow Statement (In Rs)

A. Cash Flow from Operating Activities:

- Net profit before tax increased significantly from 391,361,835 in 2016 to 667,091,050 in 2017.

- Operating profit before working capital changes showed a notable rise, reaching 956,598,160 in 2017.

- Cash generated from operations improved significantly from -564,533,774 in 2016 to 269,500,809 in 2017.

- Adjustments for factors such as depreciation, interest paid, and miscellaneous expenses contributed to the positive operating cash flow.

- Despite positive cash generated from operations, the net cash from operating activities in 2017 was 44,868,654, indicating an overall recovery from the negative cash flow of -696,299,305 in 2016.

B. Cash Flow from Investing Activities:

- Net cash from investing activities was -317,745,672 in 2017, reflecting increased outflows compared to -256,710,042 in 2016.

- Investments in tangible assets, intangible assets, capital working in progress, long-term loans and advances, and miscellaneous expenses contributed to the negative cash flow from investing activities.

C. Cash Flow from Financing Activities:

- Net cash from financing activities decreased from 946,710,263 in 2016 to 273,094,026 in 2017.

- The company received proceeds from equity share warrants and secured loans, contributing to positive cash flow.

- Dividends paid, including corporate dividend tax, and interest payments resulted in cash outflows in financing activities.

Overall Summary:

- The company experienced positive trends in operating activities, reflected in increased net profit and operating profit.

- Cash flow from operations showed a significant improvement in 2017 compared to the previous year, contributing to a positive net cash flow.

- Investing activities resulted in increased outflows, mainly due to investments in various assets.

- Financing activities saw a decrease in net cash inflow, influenced by changes in equity, loans, and dividend payments.

- The overall change in cash and cash equivalents in 2017 was positive, with an increase of 217,008 compared to a decrease of -6,299,084 in 2016.

- The closing balance of cash and cash equivalents at the end of 2017 was 5,121,921, compared to the opening balance of 4,904,913 at the beginning of the year.

Bellow, are the Financial Ratios

 Financial Ratios Summary:

1. EBITDA Margin:

   - EBITDA margin in 2016 was 72.09%, indicating that the company generated a substantial operating profit relative to its revenue.

2. Net Worth:

   - The net worth of the company stood at 65.61%, reflecting the proportion of equity in the capital structure. This indicates a healthy level of ownership by shareholders.

3. Debt/Equity Ratio:

   - The debt/equity ratio was 2.95, suggesting a higher reliance on debt to finance operations compared to equity. A higher ratio may pose higher financial risk.

4. Return on Equity (ROE):

   - The return on equity was 27.46%, indicating that the company generated a solid return for its shareholders in 2016.

5. Asset Utilization:

   - Total assets utilization was 70.83%, suggesting efficient use of assets to generate revenue.

6. Fixed Assets Percentage:

   - Fixed assets represented 22.20% of total assets, providing insight into the composition of the asset base.

7. Current Assets and Liabilities:

   - Current assets accounted for 70.90% of the total assets, indicating a significant portion of assets available for short-term needs.

   - Current liabilities were relatively high at 108.65%, possibly indicating a higher short-term obligation compared to assets.

8. Trade Receivables and Payables:

   - Trade receivables were at 1.74%, suggesting effective management of accounts receivable.

   - Trade payables were high at 106.05%, indicating a significant reliance on trade credit.

9. Current Ratio:

   - The current ratio was 1.39, reflecting the company 's ability to cover short-term liabilities with its short-term assets.