Purbasha Resources Annual Reports | Balance Sheet | Financials | Cashflow

Purbasha Resources Limited Balance Sheet (Rs. In '00)

Purbasha Resources Limited Profit & Loss Statement (Rs. In '00)

Purbasha Resources Limited Consolidated Cash Flow Statement (Rs. In '00)

Let 's break down the Cash Flow Statement of Purbasha Resources Limited for the years 2023, 2022, and 2021, activity-wise:

1. Cash Flows from Operating Activities:

   - The company reported a substantial profit for the years 2021, 2022, and 2023.

   - Adjustments to the profit included provisions, depreciation, interest income, and dividends, impacting the final operating profit.

   - Operating cash flow, calculated before working capital changes, saw a significant decrease in 2023 compared to the previous years.

   - The decrease was influenced by a substantial negative impact from changes in operating assets and liabilities, particularly a drastic increase in inventories.

2. Cash Flows from Investing Activities:

   - The net cash from investing activities turned positive in 2023, indicating a shift towards increased investments.

   - The company made net purchases of equity instruments, while consistently earning dividends and interest income from its investments.

   - Despite a negative trend in 2022, the overall positive net cash in 2023 suggests a strategic focus on investment activities.

3. Cash Flows from Financing Activities:

   - The financing activities depict a decrease in cash for all three years, mainly due to loan repayments and interest payments.

   - Unsecured loans were procured in 2021, contributing to a positive cash flow, but subsequent repayments led to a negative impact on cash in the following years.

   - The overall financing activities resulted in a net decrease in cash, emphasizing the impact of loan transactions on the company 's liquidity.

4. Net Increase/(Decrease) in Cash and Cash Equivalents:

   - The net cash position at the end of each year reflects the overall change in cash and cash equivalents.

   - While 2021 and 2022 witnessed positive increases, 2023 saw a significant decrease primarily due to operational and financing activities.

Purbasha Resources Limited Financial Ratios for the year 2023 and 2022:

Let’s break down and analyze each of these financial indicators of Purbasha Resources Limited for the year 2023 and 2022:

1. Current Ratio:

   - 2022-23: 43.23:1

   - 2021-22: 6.84:1

   - The current ratio indicates the company 's ability to cover its short-term liabilities with its short-term assets. A higher current ratio is generally considered favorable, as it suggests a better ability to meet short-term obligations. In this case, the current ratio has significantly improved from 2021-22 to 2022-23, indicating a stronger financial position in terms of liquidity.

2. Debtors Turnover:

   - 2022-23: 2.41:1

   - 2021-22: 85.70:1

   - The debtors turnover ratio measures how quickly a company collects its receivables. A higher ratio is generally better, as it implies a shorter time to collect outstanding payments. In this case, there has been a substantial decrease in the ratio from 2021-22 to 2022-23, indicating an improvement in the efficiency of receivables collection.

3. Inventory Turnover:

   - 2022-23: 0.25:1

   - 2021-22: 0.58:1

   - The inventory turnover ratio reflects how efficiently a company manages its inventory. A higher ratio suggests better inventory management. In this case, the ratio has decreased, indicating a longer time to sell or higher levels of inventory relative to sales. It 's important to understand the industry norms when assessing this ratio.

4. Return on Net Worth (%):

   - 2022-23: 1.9%

   - 2021-22: 6.88%

   - Return on Net-Worth (RONW) measures the profitability of the company in relation to its net worth. A higher percentage is generally preferred, as it indicates better profitability. The decrease in RONW from 2021-22 to 2022-23 may suggest a decline in the company 's profitability relative to its net worth.

5. Operating Profit Margin (%):

   - 2022-23: 0.2%

   - 2021-22: 0.46%

   - Operating profit margin is the percentage of sales that turn into operating profit. A higher margin is generally better. The decrease in the operating profit margin suggests a lower percentage of sales translating into operating profit in 2022-23 compared to 2021-22.

6. Net Profit Margin (%):

   - 2022-23: 0.12%

   - 2021-22: 0.35%

   - Net profit margin measures the percentage of sales that turn into net profit. Similar to operating profit margin, a higher net profit margin is preferred. The decrease in net profit margin from 2021-22 to 2022-23 indicates a lower percentage of sales translating into net profit.

Dividend History of Purbasha Resources Limited: