Sandhya Spinning Mill Limited Latest Annual Report, Balance Sheet and Financials

Sandhya Spinning Mill Limited Balance Sheet (Rs in Lakhs)

Sandhya Spinning Mill Limited Profit & Loss Statement (Rs in Lakhs)

Sandhya Spinning Mill Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Cash Flow from Operating Activities:

Net (Loss)/Profit before Tax and Extraordinary Items: In 2023, the company reported a net loss before tax and extraordinary items of -₹696.19, while in 2022, it reported a profit of ₹2,459.07.

Adjustments: Adjustments include depreciation and amortization, finance costs, interest income, dividend income, and loss on the sale of assets. These adjustments totaled to ₹2,439.20 in 2023 and ₹4,786.89 in 2022.

Operating Profit before Working Capital Changes: After adjustments, the operating profit before changes in working capital was ₹2,439.20 in 2023 and ₹4,786.89 in 2022.

Changes in Working Capital: There were fluctuations in trade receivables, loans and advances, inventories, and trade payables & current liabilities. These changes resulted in cash generated from operations of -₹481.79 in 2023 and -₹4,234.23 in 2022.

Income Tax Paid: The company paid income tax of -₹9.10 in 2023 and -₹18.12 in 2022.

Net Cash from Operating Activities: Consequently, the net cash from operating activities was -₹490.89 in 2023 and -₹4,252.35 in 2022.

Cash Flow from Investing Activities:

The company engaged in various investing activities, including the purchase of fixed assets, subscription for equity shares, purchase of investments, sale of assets, and receipt of interest and dividend income. These activities resulted in a net cash outflow of -₹2,561.30 in 2023 and -₹6,474.44 in 2022.

Cash Flow from Financing Activities:

Financing activities involved proceeds from right issue, net proceeds from long-term borrowings, repayment of long-term loans, proceeds from short-term borrowings, repayment of inter-corporate deposits and loans from directors, payment of dividends including TDS, and interest paid. These activities resulted in a net cash outflow of ₹3,129.66 in 2023 and ₹10,718.81 in 2022.

Net Increase in Cash and Cash Equivalents:

The company experienced a net increase in cash and cash equivalents of ₹77.47 in 2023 and a decrease of -₹7.98 in 2022.

Opening and Closing Balances of Cash and Cash Equivalents:

The opening balance of cash and cash equivalents was ₹11.79 in 2023 and ₹19.77 in 2022. By the end of the year, the closing balance increased to ₹89.26 in 2023 and decreased to ₹11.79 in 2022, reflecting changes in the company 's liquidity position.

Financial Ratios of Sandhya Spinning Mill Limited

Here is a summary of the financial and operational metrics for Sandhya Spinning Mill Limited for the year2023 & 2022:

Current Ratio: The current ratio decreased from 1.13 in 2022 to 0.94 in 2023. This suggests a decline in the company 's ability to cover its short-term liabilities with its current assets. A current ratio below 1.0 may indicate potential liquidity issues and difficulty in meeting short-term obligations.

Debt-Equity Ratio: The debt-equity ratio increased from 5.82 in 2022 to 8.03 in 2023. This indicates a significant increase in the proportion of debt in the company 's capital structure relative to equity. A higher debt-equity ratio suggests higher financial risk and leverage.

Debt Service Coverage Ratio: The debt service coverage ratio decreased from 1.09 in 2022 to 0.55 in 2023. This indicates a decline in the company 's ability to cover its debt obligations with its operating income. A decrease in this ratio may suggest increased financial risk and challenges in meeting debt obligations.

Return on Equity Ratio: The return on equity ratio decreased from 0.46 in 2022 to -0.14 in 2023. This indicates a negative return on shareholders ' equity during the year. A negative ROE suggests that the company incurred a net loss relative to its shareholders ' equity.

Inventory Turnover Ratio: The inventory turnover ratio increased significantly from 85 in 2022 to 141 in 2023. This indicates that the company 's inventory turnover improved, and it is selling its inventory more frequently in 2023 compared to the previous year, which may suggest better inventory management or increased sales.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio decreased from 52 in 2022 to 43 in 2023. This indicates a decrease in the speed at which the company collects its receivables. A lower turnover ratio may suggest delays in receiving payments from customers, which can affect cash flow and liquidity.

Trade Payables Turnover Ratio: The trade payables turnover ratio decreased significantly from 16 in 2022 to 6 in 2023. This suggests that the company is taking longer to pay its trade payables in 2023 compared to the previous year, which may impact relationships with suppliers or indicate potential cash flow issues.

Net Capital Turnover Ratio: The net capital turnover ratio increased from 122 in 2022 to 178 in 2023. This indicates an improvement in the company 's efficiency in generating revenue relative to its net capital employed.

Net Profit Ratio: The net profit ratio decreased significantly from 8% in 2022 to -2% in 2023. This indicates that the company incurred a net loss relative to its total revenue in 2023.

Return on Capital Employed: The return on capital employed decreased from 11% in 2022 to 5% in 2023. This indicates a decrease in the company 's ability to generate returns from its capital investments during the year.

Return on Investment (Assets): The return on investment decreased from 6% in 2022 to -1% in 2023. This indicates a negative return on the company 's total assets during the year.