Quality Synthetic Industries Limited Latest Annual Report, Balance Sheet and Financials

Quality Synthetics Industries Limited Balance Sheet (Rs in Thousands)

Quality Synthetics Industries Limited Profit & Loss Statement (Rs in Thousands)

Quality Synthetics Industries Limited Consolidated Cash Flow Statement (Rs in Thousands)

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Cash Flow from Operating Activities:

The net profit before tax and extraordinary items was ₹7054.46 in 2023 and ₹13724.25 in 2022.

Other comprehensive income, adjustments for depreciation, interest received on trade deposits, and dividends received were accounted for. Additionally, there were adjustments for the impact of measuring investments at fair value and profit on the sale of investments.

Operating profit before working capital charges was -₹5142.48 in 2023 and ₹3192.46 in 2022.

Further adjustments were made for changes in trade and other receivables, inventories, provisions, current tax liabilities, and trade payables.

The cash generated from operations amounted to ₹46021.61 in 2023 and ₹8545.09 in 2022. Interest paid and net direct tax paid were also considered, resulting in a net cash flow from operating activities of ₹46021.61 in 2023 and ₹8169.08 in 2022.

Cash Flow from Investing Activities:

Activities in this category included purchases of fixed assets, purchase/sale of investments, and giving loans. Interest and dividends received were also accounted for.

In 2023, the net cash flow from investing activities was -₹51875.79, while it was ₹14274.99 in 2022.

Cash Flow from Financing Activities:

This section involved borrowings, with a net cash flow of ₹7150.00 in 2023 and -₹23993.75 in 2022.

Net Increase in Cash and Cash Equivalents:

There was a net increase in cash and cash equivalents of ₹1295.82 in 2023 and -₹1549.68 in 2022.

Opening and Closing Balances of Cash and Cash Equivalents:

The opening balance of cash and cash equivalents was ₹1478.84 in 2023 and ₹3028.52 in 2022. By the end of the fiscal year, the balance increased to ₹2774.66 in 2023 and decreased to ₹1478.84 in 2022.

Financial Ratios of Quality Synthetics Industries Limited

Here is a summary of the financial and operational metrics for Quality Synthetics Industries Limited for the year 2023 &2022:

Current Ratio: The current ratio decreased significantly from 6.934 in 2022 to 2.311 in 2023. This suggests a reduction in the company 's ability to cover its short-term liabilities with its current assets. While a current ratio above 1.0 is generally desirable, such a drastic decrease may raise concerns about liquidity management.

Debt to Equity Ratio: The debt-to-equity ratio increased from 0.094 in 2022 to 0.211 in 2023. This indicates that the company has taken on more debt relative to its equity. An increase in this ratio may suggest higher financial leverage and increased financial risk.

Debt Service Coverage Ratio: The debt service coverage ratio decreased from 9.198 in 2022 to 0.00 in 2023. A debt service coverage ratio of 0.00 indicates that the company 's operating income is insufficient to cover its debt obligations. This is a concerning sign and suggests potential financial distress or inability to service debt.

Return on Equity (ROE): The return on equity ratio increased from 1.84% in 2022 to 2.63% in 2023. This indicates a slight improvement in the company 's profitability relative to shareholders ' equity. However, the increase is relatively modest, and further improvement may be desirable.

Inventory Turnover Ratio: The inventory turnover ratio increased significantly from 0.510 in 2022 to 3.319 in 2023. This indicates that the company is selling its inventory at a much faster rate in 2023 compared to the previous year. This may suggest improved inventory management or increased sales activity.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio increased substantially from 0.325 in 2022 to 9.454 in 2023. This indicates that the company is collecting its receivables much more efficiently in 2023. A higher turnover ratio suggests better credit management or a reduction in outstanding receivables.

Trade Payables Turnover Ratio: The trade payables turnover ratio increased from 0.00 in 2022 to 3.449 in 2023. This indicates that the company is paying its suppliers more frequently in 2023 compared to the previous year, which may improve supplier relationships but could also impact cash flow.

Net Capital Turnover Ratio: The net capital turnover ratio increased from 0.052 in 2022 to 0.300 in 2023. This indicates an improvement in the company 's efficiency in generating revenue relative to its net capital employed.

Net Profit Ratio: The net profit ratio decreased significantly from 35.05% in 2022 to 8.77% in 2023. This suggests a substantial decline in the company 's profitability as a percentage of its total revenue.

Return on Capital Employed (ROCE): The return on capital employed remained relatively stable at 2.63% in 2023 compared to 1.84% in 2022.

Return on Investment: The return on investment increased slightly from 71.61% in 2022 to 70.76% in 2023.