Rajlaxmi Industries Annual Reports, Balance Sheet and Financials

Rajlaxmi Industries Limited Balance Sheet (In Rs.)

Rajlaxmi Industries Limited Profit & Loss Statement (In Rs.)

Rajlaxmi Industries Limited Consolidated Cash Flow Statement (In Rs.)

Here is a summary of the Cash Flow Statement for the years 2017 and 2016:

Cash Flow from Operating Activities:

Net Profit/(Loss) after Tax: The company reported a net profit of 56,508 in 2017 compared to a significantly higher profit of 5,04,485 in 2016.

Interest Received: Interest received decreased from 62,37,940 in 2016 to 46,52,444 in 2017.

Operating Profit Before Working Capital Changes: The operating profit before working capital changes decreased from -57,33,455 in 2016 to -45,95,936 in 2017.

Adjustments for Working Capital Changes: The company experienced significant changes in trade and other payables, trade and other receivables, inventories, and other current liabilities, affecting cash flows from operating activities.

Net Cash Flow from Operating Activities: The net cash flow from operating activities improved from -86,38,232 in 2016 to -18,88,278 in 2017, indicating a reduction in cash outflows from core business operations.

Cash Flow from Investing Activities:

Purchase/Sale of Investments: The company made significant investments, with purchases totalling -79,00,000 in 2016 and -80,69,425 in 2017.

Net Cash Flow in Investing Activities: The net cash flow in investing activities remained negative, with outflows of -79,00,000 in 2016 and -80,69,425 in 2017, indicating investment activities surpassing investment proceeds.

Cash Flow from Financing Activities:

Increase/Decrease in Loans and Advances: There was a decrease in loans and advances, with an increase of 1,01,44,384 in 2016 and 54,22,317 in 2017.

Interest Paid/Received: Interest paid and received remained consistent with the interest received being 62,37,940 in both 2016 and 2017.

Net Cash Flow in Financial Activities: The net cash flow in financial activities decreased from 1,63,82,324 in 2016 to 1,00,74,761 in 2017, indicating reduced financial transactions.

Net Increase (Decrease) in Cash:

The net increase in cash was positive in 2017, amounting to 1,17,058, compared to a decrease of -1,55,908 in 2016, indicating improved cash flow management and liquidity.

Opening and Closing Balance of Cash & Cash Equivalents:

The opening balance of cash and cash equivalents was 4,08,787 in 2017 and 5,64,695 in 2016. The closing balance increased to 5,25,845 in 2017 from 4,08,787 in 2016, indicating improved cash position by the end of the year.

Financial Ratios of Rajlaxmi Industries Limited

Here is a summary of the financial and operational metrics for Rajlaxmi Industries Limited for the years 2017 and 2016:

Current Ratio:

Both years have high current ratios, with a slight decrease from 7.94 in 2016 to 7.47 in 2017. These high ratios indicate that the company has a substantial amount of current assets relative to its current liabilities, suggesting a strong liquidity position. The slight decrease may warrant further investigation, but overall, the company seems to be able to meet its short-term obligations comfortably.

Assets Turnover Ratio:

The assets turnover ratio decreased significantly from 17.92% in 2016 to 2.80% in 2017. This indicates that the company generated less revenue per unit of assets in 2017 compared to 2016. Such a decrease may suggest a decrease in efficiency in utilizing its assets to generate sales. This could be due to various factors such as changes in business operations or market conditions.

Return on Capital Employed (ROCE):

The return on capital employed (ROCE) remained at 0.00% in 2017, while it was 0.13% in 2016. A ROCE of 0.00% indicates that the company did not generate any profit relative to its capital employed during the period. This suggests that the company may have failed to generate sufficient returns from its capital investments in 2017, which is a concerning trend.

Net Profit Margin:

The net profit margin decreased significantly from 0.63% in 2016 to 0.01% in 2017. A lower net profit margin indicates that the company is generating less profit relative to its total revenue. This decrease suggests a decline in profitability, which may be attributed to various factors such as increased expenses or decreased revenue.

Inventory Turnover Ratio:

The inventory turnover ratio was 9.10 in 2016 but decreased to 0.00 in 2017. A zero-inventory turnover ratio suggests that the company did not sell any inventory during the period, which could indicate issues with inventory management or sales performance. This requires further investigation to understand the reasons behind the significant decrease.