Resins and Plastics Annual Reports, Balance Sheet and Financials

 Resins and Plastics Limited Standalone Balance Sheet (Rs in Crores)

 Resins and Plastics Limited Standalone Profit & Loss Statement (Rs in Crores)

 Resins and Plastics Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of cash flow statement for the year 2025-2026:

Cash Flow from Operating Activities

The company reported a net cash inflow of ₹9.60 crore from operating activities in FY2025-26, compared to a cash outflow of ₹8.64 crore in the previous year, mainly due to higher profitability, with profit before tax increasing to ₹28.74 crore from ₹15.61 crore. Although higher trade receivables, inventories, and short-term advances increased working capital requirements and reduced cash generation, higher trade payables and other liabilities partially offset these outflows. After accounting for taxes, the company generated positive operating cash flow, indicating improved operational performance and stronger cash-generating ability.

Cash Flow from Investing Activities

The company reported a net cash outflow of ₹7.16 crore from investing activities during FY2025-26, compared to a net inflow of ₹10.17 crore in FY2024-25. This reversal was primarily due to increased capital investment and lower net proceeds from current investments. Capital expenditure on property, plant and equipment increased to ₹4.13 crore, while capital work-in-progress rose significantly to ₹3.14 crore, indicating expansion or modernization initiatives.

The company purchased current investments worth ₹21.60 crore and sold investments amounting to ₹21.50 crore, resulting in only a marginal net recovery from investment activities compared with the previous year, when sales significantly exceeded purchases. Additionally, the company received ₹0.14 crore as interest income and ₹0.06 crore from the sale of property, plant and equipment. Overall, the investing cash flow reflects the company 's strategy of investing in productive assets and managing its investment portfolio, although these activities resulted in a net cash outflow during the year.

Cash Flow from Financing Activities

Cash flow from financing activities recorded a net outflow of ₹2.95 crore, which remained almost unchanged from the ₹2.94 crore outflow in FY2024-25. The outflow mainly comprised final dividend payments of ₹2.92 crore, indicating that the company maintained a consistent dividend distribution policy. Finance costs amounted to only ₹0.03 crore, suggesting a very low debt burden and limited dependence on external borrowings. The absence of significant borrowing or repayment activities indicates that the company 's financing requirements were largely met through internally generated funds rather than external sources.

Net Change in Cash and Cash Equivalents

Overall, the company recorded a net decrease in cash and cash equivalents of ₹0.52 crore during FY2025-26, compared with a decline of ₹1.40 crore in the previous year. The positive cash generated from operating activities was more than offset by cash used for capital expenditure, investment activities, and dividend payments. As a result, the cash balance declined from ₹0.95 crore at the beginning of the year to ₹0.43 crore at the end of the year. Although the cash balance has reduced, the relatively smaller decline compared with the previous year indicates an improvement in overall cash flow management.

Financial ratios of Resins and Plastics Limited

Summary of Financial Ratios for the year 2025-2026:

Current Ratio

The current ratio decreased from 5.82 times in FY2024-25 to 4.96 times in FY2025-26, indicating a slight reduction in short-term liquidity. However, the ratio remains well above the standard benchmark of 2:1, reflecting that the company continues to maintain a strong ability to meet its short-term obligations.

Return on Equity

The return on equity increased significantly from 10.33% to 16.97%, indicating improved profitability and more efficient utilization of shareholders ' funds. This suggests that the company generated higher returns for its equity investors during the year.

Inventory Turnover Ratio

The inventory turnover ratio declined slightly from 12.47 times to 11.67 times, indicating that inventory was sold at a marginally slower pace than in the previous year. Nevertheless, the ratio remains healthy, reflecting efficient inventory management.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio decreased from 4.50 times to 4.09 times, suggesting relatively slower collection of receivables or higher credit sales during the year. This indicates a slight decline in receivables management efficiency.

Trade Payables Turnover Ratio

The trade payables turnover ratio fell from 17.08 times to 14.45 times, indicating that the company took slightly longer to pay its suppliers. This may reflect improved working capital management by utilizing available credit periods.

Net Capital Turnover Ratio

The net capital turnover ratio improved marginally from 3.04 times to 3.08 times, showing that the company generated slightly higher revenue from its working capital. This reflects stable and efficient utilization of net working capital.

Net Profit Ratio

The net profit ratio increased significantly from 3.95% to 6.47%, indicating improved cost control and higher profitability. The company earned a larger proportion of profit from its sales compared to the previous year.

Return on Capital Employed

The return on capital employed increased from 13.80% to 22.69%, reflecting better utilization of total capital employed in the business. The improvement indicates enhanced operational efficiency and stronger earnings generation.

Return on Investment

The return on investment improved from 7.57% to 8.18%, indicating that the company 's investments generated slightly better returns during FY2025-26, reflecting improved investment performance.