Resurgere Mines and Minerals Limited Annual Report and Financials

RESURGERE MINES AND MINERALS INDIA LIMITED Balance Sheet (Rs in Lakhs)

RESURGERE MINES AND MINERALS INDIA LIMITED Profit& Loss Statement (Rs In lakhs)

RESURGERE MINES AND MINERALS INDIA LIMITED Consolidated Cash Flow Statement (Rs In lakhs)

Certainly, let 's break down the Cash Flow Statement for the years 2015 and 2016 into detailed explanations, point by point:

A) Cash Flow from Operating Activities:

1. Net Profit before Tax and Extraordinary Items:

    In 2016, the net profit before tax and extraordinary items was ₹7,857.60 million, reflecting an increase from ₹6,485.18 million in 2015.

2. Adjustments:

    Depreciation & Amortization: The company reported depreciation and amortization of ₹3,973.38 million in 2016, slightly lower than the ₹4,120.22 million in 2015.

    Dividends: Dividends paid were ₹1.32 million in 2016 and ₹1.47 million in 2015.

    Interest Income: The interest income increased slightly from ₹183.00 million in 2015 to ₹182.84 million in 2016.

   Interest Expenses: The company paid ₹2,657.95 million in interest expenses in 2016, compared to ₹2,353.24 million in 2015.

    Other Adjustments: Various other adjustments include preliminary and pre-operative expenses, loss on the sale of fixed assets, and profit/loss due to changes in the value of investments.

3. Operating Profit before Working Capital Change:

    The operating profit before working capital change was ₹1,383.78 million in 2016, compared to ₹204.78 million in 2015, indicating a significant improvement.

4. Adjustment for Working Capital Changes:

  The adjustments for changes in trade and other receivables, inventories, trade and other payables, and other current assets resulted in a net cash used in operating activities of ₹2,381.23 million in 2016, slightly higher than ₹2,228.63 million in 2015.

B) Cash Flow from Investing Activities:

1. Purchases and Sales of Assets:

   The company did not make any purchases or sales of fixed assets in 2016. However, in 2015, there were purchases of ₹23.29 million and sales of ₹0.40 million in fixed assets.

2. Investments:

   The company sold investments worth ₹85.00 million in 2016, and in 2015, it purchased investments amounting to ₹5.41 million.

3. Net Cash used in Investing Activities:

   The net cash used in investing activities increased from ₹155.77 million in 2015 to ₹267.99 million in 2016, mainly due to changes in investment activities.

C) Cash Flow from Financing Activities:

1. Borrowings:

   There were no proceeds from long-term borrowings in both years. Short-term borrowings resulted in a net cash inflow of ₹9.71 million in 2016, compared to ₹18.59 million in 2015.

2. Interest Paid:

  The interest paid increased from ₹2,353.24 million in 2015 to ₹2,657.95 million in 2016.

3. Net Cash from Financing Activities:

   The net cash from financing activities increased from ₹2,373.46 million in 2015 to ₹2,667.66 million in 2016.

Net Increase in Cash & Cash Equivalents:

 The net increase in cash and cash equivalents was ₹18.44 million in 2016, compared to ₹10.94 million in 2015.

Below are the Financial Ratios

Certainly, let 's delve into the financial particulars for the year 2015 and provide a detailed explanation point by point:

1. EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization):

   The EBITDA margin for 2015 is 31.46%, indicating that the company generated a profit of 31.46% on its operating earnings before accounting for interest, taxes, and other non-operating expenses. This percentage serves as a measure of operational profitability.

2. Net worth:

 The Net worth percentage is -10.99%, suggesting that the company 's net assets are in a negative position. This could imply that the liabilities exceed the assets, and the company has accumulated losses, impacting its overall financial health.

3. Debt/Equity Ratio:

   The Debt/Equity Ratio of 0.46 indicates that the company relies more on equity financing than debt. A ratio below 1 typically signifies a lower financial risk, as the company has a lower reliance on borrowed funds.

4. Return on Equity (ROE):

   The Return on Equity is -13.40%, reflecting a negative return for shareholders. This implies that the company 's net income is insufficient to cover the equity investment, resulting in a loss on shareholders ' equity.

5. Total Assets:

   The Total Assets percentage change is -3.76%, indicating a decrease in the company 's total assets during 2015. This reduction may be attributed to factors such as asset sales, depreciation, or write-offs.

6. Fixed Assets:

    The Fixed Assets percentage change is -10.48%, suggesting a decrease in the value of the company 's fixed assets during the period. This decline might result from asset depreciation, sales, or impairment.

7. Current Assets:

    The Current Assets percentage change is 1.17%, indicating a marginal increase in the company 's short-term assets. This could include cash, accounts receivable, and inventory, among others.

8. Current Liabilities:

  The Current Liabilities percentage change is 6.70%, signifying a notable increase in the company 's short-term obligations. This could include items such as accounts payable and short-term debt.

9. Trade Receivables:

    The Trade Receivables percentage change is -0.03%, suggesting a slight decrease in the value of trade receivables. This might indicate improvements in the company 's credit management or collection processes.

10. Trade Payables:

    The Trade Payables percentage change is -0.23%, indicating a slight reduction in trade payables. This could result from changes in payment terms with suppliers or a more efficient payment process.

11. Current Ratio:

    The Current Ratio of 1.53 suggests that the company has more current assets than current liabilities, indicating a healthy liquidity position. A ratio above 1 signifies the company 's ability to meet its short-term obligations.