Shakumbhari Pulp Annual Reports, Balance Sheet and Financials

Shakumbhari Pulp And Paper Mills Limited Balance Sheet (Rs In Lakhs)

Shakumbhari Pulp And Paper Mills Limited Profit & Loss Statement (Rs In Lakhs)

Shakumbhari Pulp And Paper Mills Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Certainly, here is a summary of the Cash Flow Statement for the years 2023 and 2022:

2023:

1. Cash Flow from Operating Activities:

The net cash inflow from operating activities in 2023 was 23.01 Rs. This represents the cash generated from the company 's core operations, such as sales, services, and other business activities.

The operating activities generated 22.09 Rs, which indicates that the company 's core operations were profitable. However, this was a significant drop from the previous year when the company generated 404.99 Rs from its operating activities.

Various adjustments were made to calculate the operating cash flow, including depreciation and amortization of 106.59 Rs, gains/losses on fair valuation of investments, profit on the sale of property, plant & equipment, interest income, dividend income, and interest expenses.

Notably, there was a significant increase in interest expenses, which can impact the company 's profitability.

The movement in working capital reflects changes in assets and liabilities. An increase in trade receivables (704.88 Rs) and a decrease in inventories (-123.92 Rs) contributed to cash inflow, while changes in other current assets and liabilities had mixed effects on cash flow.

Increases in trade payables (-587.37 Rs) and other current financial liabilities (-37.21 Rs) resulted in cash inflow. However, there was an increase in long-term provisions (2 Rs) and short-term provisions (4.59 Rs).

The company paid 0.92 Rs in direct taxes, indicating a net outflow due to tax payments.

2. Cash Flow from Investing Activities:

The net cash outflow from investing activities was 533.35 Rs in 2023, which means the company invested more in this year compared to the previous year.

Major investing activities included the purchase of property, plant & equipment (including CWIP and capital advances), resulting in a substantial cash outflow of -546.02 Rs. There were also proceeds from the sale of property, plant & equipment, though this figure was relatively small (9 Rs).

The company received a small amount of dividend (0.11 Rs) and interest (3.56 Rs).

3. Cash Flow from Financing Activities:

The net cash inflow from financing activities was 512.38 Rs, indicating a significant inflow of funds through financing in 2023.

The company received 266.78 Rs from long-term borrowings and also received 372.95 Rs from short-term borrowings.

However, interest paid increased significantly to -127.35 Rs, which is a notable expense.

4. Overall Cash Position:

The net increase in cash and cash equivalents for the year 2023 was 2.04 Rs. This suggests that, despite significant investments in property, plant, and equipment and increased borrowings, the company improved its financial position and ended the year with more cash on hand compared to the beginning of the year.

2022:

1. Cash Flow from Operating Activities:

The net cash inflow from operating activities in 2022 was 336.4 Rs, significantly higher than in 2023. This indicates that the company 's core operations were more profitable in 2022.

Operating activities generated 404.99 Rs, with various adjustments for depreciation, gains/losses, interest income, and dividend income.

Significant changes in working capital included a substantial increase in trade receivables (704.88 Rs) and a decrease in inventories (-123.92 Rs). There were also changes in other current assets and liabilities, as well as an increase in trade payables (610.6 Rs).

The company received a net refund of direct taxes paid (-68.59 Rs), contributing to cash inflow.

2. Cash Flow from Investing Activities:

The net cash outflow from investing activities was 292.87 Rs in 2022.

Major investing activities included the purchase of property, plant & equipment, while there were no proceeds from the sale of property, plant & equipment.

The company received a small amount of dividend (0.08 Rs) and interest (2.07 Rs).

3. Cash Flow from Financing Activities:

The net cash outflow from financing activities was 60.2 Rs.

The company received funds from long-term borrowings (120.28 Rs) but also made repayments on short-term borrowings (-94.7 Rs).

Interest paid was -85.78 Rs, indicating a significant expense.

4. Overall Cash Position:

The net decrease in cash and cash equivalents for the year 2022 was -16.67 Rs, meaning the company ended the year with less cash on hand compared to the beginning of the year. This suggests that, despite profitable operations, the company had higher capital expenditure and financial expenses in 2022.

In summary, the detailed explanation of the Cash Flow Statement for both years highlights the fluctuations in cash flow from operating, investing, and financing activities, and how they influenced the company 's overall cash position. It provides insights into the company 's financial performance and resource management in each year.

Bellow are the Financial Ratios

Here is a summary of the financial and operational metrics for Shakumbhari Pulp And Paper Mills Limited for the years 2023 and 2022:

2023:

1. Current Ratio:

0.86 - Indicates that the company 's current assets are lower than its current liabilities, which may suggest potential liquidity issues.

2. Debt Equity Ratio:

1.3 - Shows that the company has more debt in its capital structure compared to equity, indicating higher financial leverage.

3. Debt Service Coverage Ratio:

0.9 - Suggests that the company 's ability to cover its debt servicing obligations is somewhat strained.

4. Return On Equity Ratio:

-0.0571 - Indicates a negative return on equity, suggesting a loss or unprofitable performance.

5. Inventory Turnover Ratio:

10.12 - Shows that the company 's inventory turnover rate is relatively high, which is generally positive, but it 's important to analyze in context with industry norms.

6. Trade Receivable Turnover Ratio:

6.53 - Indicates that the company collects its trade receivables approximately 6.53 times a year, which may be considered reasonable.

7. Trade Payable Turnover Ratio:

4.7 - Suggests that the company pays its trade payables approximately 4.7 times a year, which is a measure of efficiency in managing its payables.

8. Net Capital Turnover Ratio:

-25.28 - A negative net capital turnover ratio might indicate inefficiency in utilizing capital resources.

9. Net Profit Ratio:

-0.0074 - Reflects a negative net profit ratio, signifying a loss in the year.

10. Return on Capital Employed:

0.0056 - Indicates a relatively low return on capital employed, which suggests limited profitability in relation to the capital invested.

11. Return on Investment:

0.1442 - Shows a positive return on investment, but it 's essential to compare this with industry benchmarks.

2022:

1. Current Ratio:

0.95 - In 2022, the current ratio was slightly better, indicating a relatively healthier short-term liquidity position compared to 2023.

2. Debt Equity Ratio:

0.72 - In 2022, the company had a lower debt equity ratio, suggesting less financial leverage in its capital structure.

3. Debt Service Coverage Ratio:

2.13 - The higher ratio in 2022 indicates better coverage of debt servicing obligations.

4. Return On Equity Ratio:

0.1334 - Indicates a positive return on equity, suggesting profitability in 2022.

5. Inventory Turnover Ratio:

15.62 - In 2022, the company had a higher inventory turnover, which may indicate more efficient management of inventory.

6. Trade Receivable Turnover Ratio:

6.85 - The company 's ability to collect trade receivables improved slightly in 2022.

7. Trade Payable Turnover Ratio:

5.82 - The company managed trade payables effectively in 2022, with a slightly lower turnover ratio.

8. Net Capital Turnover Ratio:

-80.71 - In 2022, the company had a similar negative net capital turnover ratio, indicating potential inefficiencies in capital utilization.

9. Net Profit Ratio:

0.0143 - In 2022, the company had a positive net profit ratio, indicating profitability.

10. Return on Capital Employed:

0.1453 - In 2022, the return on capital employed was relatively higher, indicating improved profitability.

11. Return on Investment:

0.1068 - Shows a positive return on investment, which is important for investors and stakeholders.