Remi Sales and Engineering Annual Reports, Balance Sheet and Financials

Remi Sales and Engineering Limited Standalone Balance Sheet (Rs in Crores)

Remi Sales and Engineering Limited Standalone Profit & Loss Statement (Rs in Crores)

Remi Sales and Engineering Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

Cash flow from operating activities represents the cash generated from the company 's principal business operations. Remi Sales and Engineering Limited 's net cash from operating activities declined significantly from Rs. 6.30 crore in FY 2024–25 to Rs. 0.31 crore in FY 2025–26. Although net profit before tax increased from Rs. 11.97 crore to Rs. 18.47 crore, operating profit before working capital changes decreased from Rs. 7.52 crore to Rs. 4.83 crore. Depreciation remained constant at Rs. 0.50 crore, while finance cost increased from Rs. 0.05 crore to Rs. 0.13 crore. Interest received and other income increased substantially, resulting in larger deductions while reconciling profit before tax to operating cash flow. Working capital movements were mixed: receivables and inventories generated positive adjustments of Rs. 2.25 crore and Rs. 0.41 crore, respectively, whereas trade payables and provisions resulted in a cash outflow of Rs. 4.28 crore. Direct tax paid also increased from Rs. 2.80 crore to Rs. 4.60 crore. Consequently, cash generated from operations declined from Rs. 9.01 crore to Rs. 3.21 crore. Overall, the sharp reduction in operating cash flow despite higher reported profits indicates weaker cash conversion and highlights the need for improved working capital management.

Cash Flow from Investing Activities

Cash flow from investing activities reflects the company 's expenditure on and proceeds from investments and fixed assets, together with investment-related income. Net cash used in investing activities improved from Rs. 5.10 crore in FY 2024–25 to Rs. 0.37 crore in FY 2025–26. The company spent Rs. 51.34 crore on purchasing investments during FY 2025–26, compared with Rs. 30.75 crore in the previous year. At the same time, proceeds from the sale of investments increased from Rs. 22.53 crore to Rs. 38.09 crore. Interest received rose from Rs. 2.55 crore to Rs. 5.98 crore, while other income increased from Rs. 0.25 crore to Rs. 6.56 crore. Dividend income remained unchanged at Rs. 0.40 crore, and purchases of fixed assets decreased slightly from Rs. 0.08 crore to Rs. 0.07 crore. These movements indicate substantial investment activity, with increased sale proceeds and investment-related receipts largely offsetting the higher expenditure on investments. The relatively small net investing cash outflow is favourable for the overall cash position, although the sustainability of these inflows depends on future investment decisions and returns.

Cash Flow from Financing Activities

Cash flow from financing activities represents cash flows associated with financing arrangements and related payments. The company reported net cash used in financing activities of Rs. 0.13 crore in FY 2025–26, compared with Rs. 0.05 crore in FY 2024–25. The entire outflow shown in the statement relates to interest paid, which increased from Rs. 0.05 crore to Rs. 0.13 crore. Although the interest payment increased during the year, the absolute amount remains relatively small compared with the company 's reported profit before tax. No other financing cash flows, such as borrowings or repayment of principal, are presented in the supplied figures. Therefore, financing activities had a limited impact on the company 's overall cash position. Nevertheless, the company should continue to monitor financing costs and maintain an appropriate balance between its cash requirements and financial obligations.

Net Change in Cash and Cash Equivalents

The company 's net cash position recorded a decrease of Rs. 0.19 crore in FY 2025–26, compared with an increase of Rs. 1.15 crore in FY 2024–25. Cash and cash equivalents at the beginning of FY 2025–26 stood at Rs. 3.33 crore, while the closing balance declined to Rs. 3.14 crore. The reduction in cash reflects the low operating cash inflow and the net cash outflows from investing and financing activities. Although the company maintained a positive closing cash balance, the substantial decline in operating cash generation despite higher profitability is a concern. The company should focus on improving operating cash conversion, controlling working capital outflows and assessing the sustainability of investment-related income. Overall, the cash flow statement indicates that the company 's reported profitability improved, but its ability to generate cash from operating activities weakened during FY 2025–26.

Financial ratios of Remi Sales and Engineering Limited

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio

The current ratio of Remi Sales and Engineering Limited improved from 1.83 in FY 2024–25 to 2.19 in FY 2025–26. This indicates an improvement in the company 's short-term liquidity position and its ability to meet current liabilities through current assets. A ratio of 2.19 suggests that the company had Rs. 2.19 in current assets for every Rs. 1 of current liabilities. The improvement reflects a stronger short-term financial position, although the efficiency with which current assets are converted into cash should also be considered.

Return on Equity Ratio

The return on equity (ROE) ratio increased from 11.34% in FY 2024–25 to 14.68% in FY 2025–26. This indicates that the company generated higher returns for its shareholders in the current year. The improvement suggests better utilisation of shareholders ' funds and enhanced profitability. Overall, the rising ROE reflects a positive trend in shareholder returns and the company 's ability to generate profits from its equity capital.

Inventory Turnover Ratio

The inventory turnover ratio increased from 7.89 times in FY 2024–25 to 8.40 times in FY 2025–26. This indicates that the company managed its inventory more efficiently and converted its stock into sales more frequently during the year. Higher inventory turnover may reflect improved inventory management, stronger sales or reduced inventory holding periods. Overall, the increase is a favourable sign of operational efficiency, provided that sufficient inventory is maintained to meet customer demand.

Trade Receivable Turnover Ratio

The trade receivable turnover ratio improved slightly from 6.18 times in FY 2024–25 to 6.23 times in FY 2025–26. This indicates a marginal improvement in the company 's ability to collect payments from customers. A higher ratio generally suggests more efficient credit management and faster collection of outstanding receivables. Although the improvement is modest, it reflects a positive trend in receivables management and may help support the company 's liquidity position.

Trade Payable Turnover Ratio

The trade payable turnover ratio increased from 4.83 times in FY 2024–25 to 5.39 times in FY 2025–26. This indicates that the company settled its trade payables more frequently during the current year. The increase may reflect faster payments to suppliers or changes in the volume of credit purchases. While timely payments can strengthen supplier relationships, the company should ensure that payments are managed efficiently without placing unnecessary pressure on working capital and cash balances.

Net Capital Turnover Ratio

The net capital turnover ratio declined from 5.24 times in FY 2024–25 to 4.54 times in FY 2025–26. This indicates that the company generated less revenue per unit of net capital employed in the business. The decline may reflect an increase in working capital relative to sales or a change in revenue generation efficiency. Although other financial ratios improved during the year, this reduction suggests that the company could improve its utilisation of net capital to generate revenue.

Net Profit Ratio

The net profit ratio increased from 5.35% in FY 2024–25 to 7.32% in FY 2025–26. This indicates that the company earned approximately Rs. 7.32 in net profit for every Rs. 100 of revenue, compared with Rs. 5.35 in the previous year. The improvement reflects stronger profitability and may result from better cost management, improved margins or higher non-operating income. Overall, the increase is favourable, although the sustainability of the improved margin should be assessed by examining the composition of income and expenses.

Return on Capital Employed

The return on capital employed (ROCE) increased from 14.31% in FY 2024–25 to 19.23% in FY 2025–26. This indicates that the company generated higher returns from the capital invested in its operations. The improvement suggests more effective utilisation of long-term funds and stronger overall financial performance. A rising ROCE is generally favourable because it indicates improved returns on the capital used to conduct business. However, it should be evaluated alongside operating cash flow and the sustainability of reported earnings.

Return on Investment

The return on investment (ROI) increased from 11.34% in FY 2024–25 to 12.04% in FY 2025–26. This indicates a moderate improvement in the returns generated from investments. The increase suggests that the company 's investments delivered better returns during the current year. However, the extent of the improvement and its significance depend on the nature of the investments and the method used to calculate the ratio. Overall, the rising ROI reflects a positive trend in investment performance.