Shanti Inorganics Annual Reports, Balance Sheet and Financials

Shanti Inorganics Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Equity
Share Capital	63.60	63.60
Reserves & Surplus	2,527.18	1,732.81
Non-Current Liabilities
Long Term Borrowings	1,150.79	1,299.25
Deferred Tax Liabilities	66.59	31.80
Other Long Term Liabilities	32.78	32.78
Long Term Provisions	25.73	-
Current Liabilities
Short Term borrowings	1,387.25	1,34.79
Trade Payables
Total outstanding dues of Micro & Small enterprises	428.86	229.73
Total Outstanding dues of creditors other than above	612.33	477.11
Other current liabilities	62.79	89.58
Short term Provisions	246.47	177.10
Total Equity & Liabilities	6,604.38	5,268.56
Non-Current Assets
Property, plant and equipment	3,712.34	706.26
Intangible assets	20.14	0.37
Capital work in progress	524.01	1,845.17
Non Current Investments	61.17	63.96
Long term loans and advances	136.18	274.37
Other Non-Current Assets	22.45	25.66
Current Assets
Inventories	233.99	62.29
Trade Receivables	1,567.93	1,188.70
Cash & cash equivalents	11.26	149.25
Short Term Loans & Advances	314.92	952.53
Total Assets	6,604.38	5,268.56

Shanti Inorganics Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	5,710.55	4,487.88
Other Income	137.36	15.55
Total Income	5,847.91	4,503.43
Expenses
Cost of material consumed	2,382.91	2,040.81
Purchase of trading goods	-	34.70
Change in inventories of finished goods & work-in-process	-91.72	4.63
Employee Benefit Expenses	248.38	161.78
Finance Costs	163.44	124.02
Depreciation & amortization expense	79.46	63.47
Other Expenses	1,959.56	1,381.13
Total Expenses	4,742.03	3,810.53
Profit Before Tax	1,105.88	692.90
Current Tax	-237.90	-177.10
Deferred Tax	-39.83	6.31
Profit/(Loss) for the period	828.15	522.11
Earning per share
Basic	130.21	82.09
Diluted	130.21	82.09

Shanti Inorganics Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit Before Taxation	1,105.88	692.90
Adjustment for:
Add:-
Depreciation	79.46	63.47
Interest Expenses	151.72	79.67
Provision for gratuity	14.34	-
Less:-
Interest income	-0.46	-0.82
Prior period expenses	-38.83	-19.94
Dividend income	-0.06	-0.06
Profit on sale of shares/mutual funds	-31.68	-
Operating Profit Before Working Capital Changes	1,280.38	815.23
(Increase)/Decrease in inventories	-171.69	-5.37
(Increase)/Decrease in trade receivables	-379.23	-96.33
(Increase)/Decrease in other current assets	-	-294.26
(Increase)/Decrease in short term loans and advances	659.34	-127.78
(Increase)/Decrease other non-current assets	3.21	-14.06
Increase/(Decrease) in long term provision	11.39	-
Increase/(Decrease) in short term provision	8.57	-
Increase/(Decrease) trade payables	334.36	151.36
Increase/(Decrease) current liabilities	-26.79	6.46
Cash Generated from Operations	1,791.53	435.25
Direct Tax Paid	-198.83	-150.60
Net Cash from Operating Activities	1,520.71	284.66
Cash Flow from Investing Activities
Purchase of property, plant and equipment	-1,784.14	-1,910.58
Proceeds from sale of investments	34.48	-
Change in long term loans and advances	138.18	-17.43
Change in long term liabilities	-	-6.00
Interest income	0.46	0.82
Dividend income	0.06	0.06
Net Cash from Investing Activities	-1,610.96	-1,933.14
Cash Flow from Financing Activities
Proceeds bank borrowings (term loans)	194.67	1170.00
Repayments bank borrowings (term loans)	-122.09	-67.29
Repayments bank & NBFC borrowings (business loans)	-78.48	-42.01
Proceeds from bank & NBFC borrowings (business loans)	39.92	224.84
Repayment bank borrowings (vehicle loans)	-19.24	-24.82
Proceeds from bank borrowings (vehicle loans)	-	9.00
Proceeds from NBFC (working capital)	84.85	40.36
Proceeds from unsecured loans (director & relatives)	-78.89	116.66
Proceeds from bank borrowings (working capital)	83.25	444.79
Interest paid	-151.72	79.67
Net Cash from Financing Activities	-47.73	1,791.86
Net Increase/decrease in Cash & cash equivalents	-137.99	143.38
Cash and cash equivalents at the beginning of the year	149.25	5.86
Cash and cash equivalents at the end of the year	11.26	149.25

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company reported a strong improvement in operating cash flows during FY 2024–25. Net profit before tax increased significantly to ₹1,105.88 lakhs from ₹692.90 lakhs, reflecting improved profitability. Operating profit before working capital changes rose to ₹1,280.38 lakhs, supported by higher depreciation and interest expenses, indicating expansion in asset base and borrowings.

Working capital movements had a mixed impact. There was a substantial increase in inventories (₹171.69 lakhs) and trade receivables (₹379.23 lakhs), indicating higher funds tied up in operations, possibly due to increased sales volume or relaxed credit terms. However, this was partly offset by a reduction in short-term loans and advances of ₹659.34 lakhs and a healthy increase in trade payables of ₹334.36 lakhs, suggesting improved cash management through supplier credit.

As a result, cash generated from operations increased sharply to ₹1,791.53 lakhs compared to ₹435.25 lakhs in the previous year. After payment of direct taxes amounting to ₹198.83 lakhs, the net cash from operating activities stood at ₹1,520.71 lakhs, demonstrating strong operational cash generation and improved internal funding capacity.

Cash Flow from Investing Activities

The company continued to make significant capital investments during the year. Purchase of property, plant and equipment amounted to ₹1,784.14 lakhs, indicating ongoing capacity expansion or modernization, though marginally lower than the previous year. There were proceeds from sale of investments of ₹34.48 lakhs and a recovery of long-term loans and advances of ₹138.18 lakhs, which provided some inflow.

Investment income in the form of interest and dividend remained marginal, indicating that the primary focus was on core business operations rather than financial investments. Overall, net cash outflow from investing activities was ₹1,610.96 lakhs, reflecting the company’s capital-intensive growth strategy.

Cash Flow from Financing Activities

Financing activities showed a net cash outflow of ₹47.73 lakhs during FY 2024–25, as against a significant inflow in the previous year. The company raised ₹194.67 lakhs through term loans and additional working capital borrowings, while simultaneously making repayments of term loans, business loans, and vehicle loans, reflecting a balanced debt management approach.

Notably, unsecured loans from directors and relatives decreased by ₹78.89 lakhs, indicating repayment of internal borrowings and reduced reliance on promoter funding. Interest paid during the year amounted to ₹151.72 lakhs, reflecting higher borrowing levels compared to the previous year.

Overall, the financing cash flows indicate a shift from aggressive borrowing in FY 2023–24 to a more conservative and repayment-focused approach in FY 2024–25.

Net Increase / (Decrease) in Cash and Cash Equivalents

Despite strong operating cash flows, the heavy capital expenditure resulted in a net decrease in cash and cash equivalents of ₹137.99 lakhs during the year. Cash and cash equivalents declined from ₹149.25 lakhs at the beginning of the year to ₹11.26 lakhs at the end of the year.

Financial ratios of Shanti Inorganics Limited (As on 31-03-2025)

Particulars	31-03-2025	31-03-2024
Current ratio	0.78	1.12
Debt equity ratio	0.96	1.33
Debt service coverage ratio	2.70	3.87
Return on equity ratio	37.75%	33.65%
Inventory turnover ratio	20.31	41.35
Trade receivables ratio	4.09	3.91
Trade payables turnover ratio	4.55	4.87
Net capital turnover ratio	-30.87	23.15
Net profit ratio	14.69%	11.72%
Return on capital employed	19.28%	15.51%
Return on Investments	37.75%	33.65%

Summary of the financial and operational metrics for the year 2024 and 2025:

Current Ratio
The current ratio declined from 1.12 in 2024 to 0.78 in 2025, indicating a weakening short-term liquidity position. A ratio below 1 suggests that current liabilities exceed current assets, which may create pressure in meeting short-term obligations. This decline points to tighter working capital management or increased reliance on short-term borrowings during the year.

 

Debt-Equity Ratio
The debt-equity ratio reduced from 1.33 to 0.96, reflecting an improvement in the capital structure. The company has reduced its dependence on external borrowings and increased equity funding or retained earnings. This indicates lower financial risk and improved long-term solvency.

 

Debt Service Coverage Ratio
The DSCR decreased from 3.87 in 2024 to 2.70 in 2025, though it remains at a comfortable level above 1. This suggests that while the company continues to generate sufficient cash flows to service its debt obligations, the margin of safety has reduced, possibly due to higher finance costs or lower operating cash flows.

 

Return on Equity
ROE improved from 33.65% to 37.75%, indicating enhanced profitability for shareholders. The increase reflects efficient utilization of shareholders’ funds and higher net profits during the year. This improvement is a positive indicator of management effectiveness and value creation for equity investors.

 

Inventory Turnover Ratio
The inventory turnover ratio significantly declined from 41.35 to 20.31, suggesting slower movement of inventory in 2025. This may indicate higher inventory holding, reduced sales velocity, or changes in procurement or production strategy. Lower turnover can increase holding costs and may impact working capital efficiency.

 

Trade Receivables Turnover Ratio
The trade receivables turnover ratio improved marginally from 3.91 to 4.09, indicating better collection efficiency. This shows that the company has been able to convert receivables into cash more quickly, reflecting improved credit control and debtor management.

 

Trade Payables Turnover Ratio
The trade payables turnover ratio declined from 4.87 to 4.55, suggesting that the company is taking slightly longer to pay its suppliers. This could be a deliberate strategy to manage cash flows more effectively, though prolonged delays may affect supplier relationships if not managed carefully.

 

Net Capital Turnover Ratio
The net capital turnover ratio deteriorated sharply from 23.15 to (-30.87), indicating negative net working capital during 2025. This reflects a situation where current liabilities exceed current assets, possibly due to increased short-term borrowings or reduced working capital investment. While it may improve return efficiency in the short term, sustained negative working capital can pose liquidity risks.

 

Net Profit Ratio
The net profit ratio increased from 11.72% to 14.69%, demonstrating improved operational efficiency and cost control. Higher margins indicate that the company is generating more profit from each unit of revenue, which strengthens overall financial performance.

 

Return on Capital Employed
ROCE improved from 15.51% to 19.28%, indicating better utilization of total capital employed in the business. This enhancement suggests improved operational performance and effective deployment of both equity and debt funds.

 

Return on Investments
Return on investments increased from 33.65% to 37.75%, reflecting stronger income generation from investments made by the company. This improvement indicates better investment decisions and higher returns from deployed funds.