Ray Global Consumer Trading Latest Annual Report, Balance Sheet and Financials

Ray Global Consumer Trading Limited Balance Sheet (Amt. in lakhs)

Ray Global Consumer Trading Limited Profit & Loss Statement (Amt. in lakhs)

Ray Global Consumer Trading Limited Consolidated Cash Flow Statement (Amt. in lakhs)

Let 's break down the Cash Flow Statement for the year 2023 in a point-wise manner:

1. Cash Flows from Operating Activities:

   The year began with a Profit before exceptional items and tax of 275,894.64. Adjustments were made for various factors, including depreciation and amortization expenses of 168.06, finance cost of 22.05, and interest income of -8,220.17. Significant adjustments include a gain on the sale of a business amounting to -266,683.75 and a net gain on sale/fair valuation of investments totalling -568.59. These adjustments resulted in an Operating Profit before Working Capital Changes of -275,406.03.

2. Changes in Working Capital:

   Working capital changes included a reduction in trade and other receivables by -10,932.76, a decrease in inventories by -374.53, and an increase in trade and other payables by 1,353.65. Additionally, there was a decrease in provisions by -175.18 and direct taxes paid amounting to -7,213.10. These changes contributed to a net cash flow generated from operating activities of 16,853.31.

3. Cash Flows from Investing Activities:

   Investing activities saw inflows from the proceeds of the sale of a business (250,899.85), redemption of trade deposits (6,836.16), and the sale of property, plant, and equipment (3,348.23). Outflows included the purchase of property, plant, and equipment (-20.12), non-current investments (-182,988.76), current investments (-59,882.88), and loans given to corporates (-2,500.00). The net result was a positive cash flow of 15,692.49 from investing activities.

4. Cash Flow from Financing Activities:

   Financing activities primarily involved outflows, including the principal portion of lease payments (-129.19) and interest paid on lease liability (-15.16). The net cash flow used in financing activities amounted to -144.35.

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

   The overall net decrease in cash and cash equivalents for the year was -1,305.17.

6. Cash and Cash Equivalents:

   The financial year concluded with cash and cash equivalents amounting to 818.93, compared to 2,124.10 at the beginning of the year. This provides a snapshot of the company 's liquidity position at the end of the reporting period.

Below are the Financial Ratios:

Let 's break down and analyze the key metrics:

1. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): 63.60%

This percentage indicates the company 's operating profitability before accounting for non-operating expenses and taxes. A higher EBITDA margin is generally positive, but the context of the industry and company specifics should be considered.

2. Net-worth: -0.63%

A negative net worth suggests that the company 's liabilities exceed its assets. This can be a cause for concern, and it 's crucial to understand the reasons behind it. Negative net worth can indicate financial instability.

3. Debt/Equity Ratio: 0.01

This ratio compares a company 's debt to its equity. A low ratio (like 0.01) generally implies low financial risk, as it suggests the company relies less on debt for financing.

4. Return on Equity (ROE): -0.0064

ROE measures the profitability of a company in relation to its equity. A negative ROE indicates that the company did not generate a profit from its equity during the period. Investigating the reasons behind the negative ROE is important.

5. Total Assets: 0.98%

This percentage might represent the growth or decline in total assets. A positive value indicates growth, while a negative value suggests a decrease. A comprehensive analysis would require industry benchmarks and historical data.

6. Fixed Assets: 0.00%

This could imply minimal or no growth in fixed assets during the period. It 's important to consider the nature of the business and its capital expenditure requirements.

7. Current Assets: 3,761.54%

A very high percentage increase in current assets could be unusual. This might be due to factors like acquisitions, changes in accounting methods, or a significant increase in short-term assets like cash and receivables.

8. Current Liabilities: 87.02%

A substantial increase in current liabilities may indicate increased short-term obligations. It 's crucial to understand the nature of these liabilities and their impact on the company 's liquidity.

9. Trade Receivables: 0.00%

This suggests no change or negligible change in trade receivables during the period. Monitoring receivables is important for cash flow management.

10. Trade Payables: 10.78%

An increase in trade payables may indicate that the company is taking longer to pay its suppliers. This could positively impact short-term cash flow.

11. Current Ratio: 0.14

The current ratio is a liquidity ratio that measures the company 's ability to cover its short-term liabilities with its short-term assets. A ratio below 1 indicates potential liquidity issues. In this case, the company may struggle to meet its short-term obligations.