Sharp Commercial Enterprises Ltd Annual Report and Financials

Sharp Commercial Enterprises Limited Balance Sheet (Rs In Lakhs)

Particulars	2025	2024
ASSETS
Non-current assets
Property, Plant & Equipment	-	0.54
Total non-current assets	-	0.54
Current assets
Financial Assets
Trade Receivable	49.42	49.42
Cash and Bank Balances	6.80	3.59
Loans	128.81	128.81
Other Current Assets	0.55	-
Total Current Assets	185.58	181.82
Total Assets	185.58	182.36
EQUITY AND LIABILITIES
EQUITY
Equity share capital	159.02	159.02
Other equity	16.12	15.16
Total Equity	175.14	174.18
LIABILITIES
Non-current liabilities Financial Liabilities
Borrowings	6.61	6.86
Total Non Current Liabilities	6.61	6.86
Current liabilities
Trade payables	0.49	-
Other current liabilities	2.93	1.26
Short Term Provision	0.41	0.07
Total Current Liabilities	3.83	1.33
Total Equity and Liabilities	185.58	182.36

 Sharp Commercial Enterprises Limited Profit & Loss Statement (Rs In Lakhs)

Particulars	2025	2024
Revenue from operations	5.50
Other Income	0.25	0.68
Total Income	5.75	0.68
Expenses
Employee benefits expense	1.45	-
Depreciation and amortization expense	0.54	0.19
Other expenses	2.46	0.42
Total expenses	4.45	0.61
Profit / (loss) before tax	1.30	0.07
Tax expense
Current tax	0.34	0.02
Profit/(Loss) for the period	0.96	0.05
Earnings per equity share Basic & Diluted	0.06	0.00

Sharp Commercial Enterprises Limited Cash Flow Statement (Rs In Lakhs)

Particulars	2025	2024
Cash flow from operating activities
Net Profit / (Loss) before extraordinary items and tax	1.30	0.07
Adjustment for:
Depreciation	0.54	0.19
Operating profit before working capital changes	1.84	0.26
Movements in working capital :
(increase) / decrease in Trade receivables	-	2.52
(increase) / decrease in Other Current Assets	0.55	-
Increase / (decrease) in Trade Payables	0.49	-
Increase / (decrease) in  Other Current Liabilities	1.67	0.12
Net cash flow from / (used in) operating activities	3.46	2.90
Cash flow from investing activities
Interest Income	-	-
Net cash flow from / (used in) investing activities	-	-
Cash flow from financing activities
Repayment of long-term borrowings	0.25	-
Net cash flow from / (used in) financing activities	0.25	-
Net increase / (decrease) in Cash and cash equivalents	3.21	2.90
Cash and cash equivalents at the beginning of the year	3.59	0.64
Cash and cash equivalents at the end of the year*	6.80	3.54
*Represented by : (a) Cash in hand (b) Cheques, drafts in hand (c) Balances with banks (d) Others-Fixed Deposits against margin	0.00 - 6.80 -	0.90 - 2.69 -
	6.80	3.59

Cash Flow Analysis – Sharp Commercial Enterprises Limited (FY2024 vs FY2025)

The cash flow position of Sharp Commercial Enterprises Limited reflects a significant strengthening in operating performance and liquidity during FY2025 compared with FY2024, driven primarily by improved profitability and favourable working-capital movements.

Operating Activities:
The company generated net cash inflow of ₹3.46 crore in FY2025, higher than ₹2.90 crore in FY2024, indicating improved core business cash generation. This growth was supported by a sharp rise in profit before tax from ₹0.07 crore to ₹1.30 crore and higher non-cash adjustments such as depreciation. Additionally, working-capital management contributed positively, with increases in trade payables and other current liabilities supporting operating cash flows, while moderate changes in current assets did not materially strain liquidity. Overall, the operating segment demonstrates stronger cash efficiency and improved earnings quality in FY2025.

Investing Activities:
No investing cash flows were reported in either FY2024 or FY2025, indicating limited capital expenditure or investment deployment during the period. This suggests the company remained focused on stabilising operations rather than expanding through new asset creation or financial investments.

Financing Activities:
During FY2025, the company recorded an outflow related to repayment of long-term borrowings, reflecting a conservative capital approach and a gradual reduction in leverage. No financing cash movement was recorded in FY2024. This indicates an improving financial structure and lower dependency on external funding.

Overall Liquidity Position:
Net cash and cash equivalents increased substantially from ₹3.59 crore at the beginning of FY2025 to ₹6.80 crore at year-end, compared with a rise from ₹0.64 crore to ₹3.59 crore in FY2024. The consistent increase in cash reserves across both years highlights strengthening liquidity, better internal accruals, and enhanced financial flexibility for future operations.

Analytical Conclusion:

The cash flow profile of Sharp Commercial Enterprises Limited indicates a transition toward stronger operational stability and improved cash generation. FY2025 demonstrates higher profitability conversion into cash, disciplined liability management, and accumulation of cash reserves. The absence of investing outflows suggests a conservative stance, while debt repayment reflects improving financial health. Overall, the company’s cash flow trend portrays enhanced liquidity, operational resilience, and a solid foundation to support future growth initiatives.