Shradha Industries Limited Annual Report and Financials

Shradha Industries Limited Consolidated Balance Sheet (Rs In Lakhs)

Particulars	2025	2024
ASSETS
(1) Non Current Assets
(a) Property, Plant and Equipment and Intangible Assets	26.52	40.53
(b) Capital Work in Progress	-	1.65
(c) Other Intangible Assets	6.20	-
(d) Financial assets
(i) Investments	4,868.49	2,620.19
(ii) Other financial Assets	3.64	3.31
(e) Other non- current assets	7.50	12.62
Total Non Current Assets	4,912.34	2,678.31
(2) Current assets
(a) Financial Assets
(i) Trade receivables	119.24	269.31
(ii) Cash and cash equivalents	698.12	590.89
(iii) Bank balances other than (ii) above	445.61	423.72
(iv) Loans	3,246.25	1,890.92
(v) Other Current Assets	1.55	-
(b) Current tax assets	5.71	0.25
(c) Other current assets	6.70	2.81
Total Current Assets	4,523.18	3,177.90
Total Assets	9,435.53	5,856.20
EQUITY AND LIABILITIES
EQUITY
(a) Equity Share capital	1,219.05	1,219.05
(b) Other Equity	7,488.49	4,366.57
(c) Non Controlling Interest	(3.73)	-
Total Equity	8703.81	5585.62
LIABILITIES
(1) Non Current liabilities
(a)Financial Liabilities
(i)                  Lease Liabilities	11.61	19.20
(b) Provision	7.09	3.54
(c) Deferred tax liabilities (Net)	538.90	124.21
Total Non Current Liabilities	557.60	146.96
(2) Current liabilities
(a) Financial Liabilities
(i) Trade payables
(A) Total outstanding dues of creditors other than micro enterprise and small enterprises	1.56	13.90
(ii) Other current financial liabilities	34.73	33.19
(iii) Lease Liabilities	7.59	9.83
(b) Other current liabilities	18.44	29.54
(c) Provisions	0.76	0.43
(d) Current tax liabilities (Net)	111.04	36.73
Total Current Liabilities	174.12	123.62
Total Liabilities	731.72	270.58
Total Equity and Liabilities	9,435.53	5,856.20

 Shradha Industries Limited Consolidated Profit & Loss Statement (Rs In Lakhs)

Particulars	2025	2024
I Revenue from Operations	1,479.47	1,727.41
II Other Income	288.18	149.97
III Total Income	1,767.66	1,877.38
IV Expenses:
Direct Expenses	109.19	122.37
Purchase of stock in trade	-	553.46
Changes in inventories of stock in trade	-	2.73
Employee Benefits Expense	312.35	266.36
Finance Cost	7.05	3.44
Depreciation and Amortization Expense	14.34	5.86
Other Expenses	72.80	60.22
Total Expenses	515.73	1,014.45
V Profit (loss)  before tax	1,251.93	862.93
VI Tax expense
(1) Current Tax	312.47	219.51
(2) Earlier year tax	(2.72)	(4.82)
(3) Deferred Tax	(10.57)	9.09
Total tax Expenses	299.18	223.78
VII Profit/Loss for the year	952.74	639.15
VIII Other Comprehensive income
A. (i) Items that will not be reclassified to profit or loss
(a) Revaluation of Listed Equity Instruments	2,768.30	902.10
(b) Actual gain on sale of equity instruments	-	133.42
Less: Gain already booked in earlier period	-	(98.31)
(c) Actuarial gain/(loss) remeasurement of defined benefit obligations	0.35	(0.92)
(ii) Income tax relating to items that will not be reclassified to profit or loss	-	(4.51)
(iii) Deferred tax relating to items that will not be reclassified to profit or loss	(425.25)	25.02
Total Other Comprehensive income for the year	2343.40	956.81
Total Comprehensive income for the year	3,296.14	1,595.96
IX Earnings per equity share
Basic	1.58	1.05
Diluted	1.58	1.05

 

 Shradha Industries Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Particulars	2025	2024
Cash Flow From Operating Activities
Net Profit before tax	1,251.93	862.93
Adjustments for non Cash/Non trade items:
Depreciation	14.34	5.86
Interest Income	(214.20)	(126.22)
Interest expenses & Other borrowing cost	7.05	3.44
Dividend Income	(49.00)	(23.75)
Derecognition of Asset	-	-
Operating profits before working capital changes	1,010.12	722.27
Adjusted for working capital changes
Changes in trade receivables	150.06	(220.11)
Changes in inventories	-	2.73
Changes in trade payables	(12.35)	13.90
Changes in other current liabilities	(11.10)	26.53
Changes in other current Financial liabilities	(4.21)	18.63
Changes in other current assets	(3.89)	(0.86)
Changes in Non Current Provisions	3.90	2.38
Changes in Current Provisions	0.34	0.43
Changes in Non Current assets	4.80	(8.21)
Total working capital changes	127.54	(164.58)
Direct Taxes Paid (Net)	(243.62)	(198.43)
Taxes of earlier years	2.72	4.82
Net Cash from Operating Activities	896.77	364.07
Cash Flow From Investing Activities
Net Proceeds from Inter corporate Loans	(1,355.33)	(765.83)
Purchase in Investments	(50.00)	(570.00)
Changes in Other Financial Assets	(1.55)	578.21
Interest Income	214.20	126.22
Dividend Income	49.00	23.75
Proceeds from Sale of Investments	570.00	139.67
Sale of Property, Plant and Equipment	-	-
Purchase of fixed asset	(0.32)	(43.24)
Purchase of intangible asset	(4.55)	-
Expenses on CWIP	-	(1.65)
Net Cash used in Investing Activities	(578.56)	(512.87)
Cash Flow From Financing Activities
Dividend Paid	(177.11)	(149.02)
Changes in Other Bank Balances	(21.09)	(413.06)
Changes in lease libility	(9.83)	29.03
Interest expenses & other borrowing cost	(7.05)	(3.44)
Net Cash used in Financing Activities	(210.99)	(536.50)
Net Increase/(Decrease) in Cash & Cash Equivalents	107.22	(685.29)
Opening Balances Cash & Cash Equivalents	590.89	1,276.18
Closing Balances Cash & Cash Equivalents	698.12	590.89

SHRADHA AI TECHNOLOGIES LIMITED – Cash Flow Statement Analysis

(All figures are in Lakhs)

1. Cash Flow from Operating Activities

Net Profit before Tax increased to ₹1,251.93 lakhs in 2025 from ₹862.93 lakhs in 2024, reflecting strong improvement in operational performance.

➤ Adjustments (Non-Cash & Non-Operating Items)

• Depreciation increased to ₹14.34 lakhs (₹5.86 lakhs in 2024).

• Interest income (₹214.20 lakhs) and dividend income (₹49.00 lakhs) were deducted as they relate to investing activities.

• Finance cost remained minimal at ₹7.05 lakhs.

After adjustments, Operating Profit before Working Capital Changes stood at ₹1,010.12 lakhs (2025) compared to ₹722.27 lakhs (2024).

➤ Working Capital Changes

• Trade receivables generated inflow of ₹150.06 lakhs (improvement over previous year outflow).

• Trade payables and other current liabilities showed marginal outflows.

• Overall working capital resulted in a positive adjustment of ₹127.54 lakhs, against a negative ₹164.58 lakhs in 2024.

➤ Tax Impact

• Direct taxes paid were ₹243.62 lakhs.

  Net Cash from Operating Activities:

  • ₹896.77 lakhs (2025)

  • ₹364.07 lakhs (2024)

  Interpretation:
  Operating cash flow has significantly improved, indicating strong core business cash generation and better working capital management. The company is generating sufficient internal cash from operations.

  2. Cash Flow from Investing Activities

  Major movements include:

  • Inter-corporate loans given: ₹1,355.33 lakhs (substantial deployment of funds).

  • Purchase of investments: ₹50.00 lakhs.

  • Sale of investments: ₹570.00 lakhs.

  • Interest & dividend income together contributed ₹263.20 lakhs.

  • Minor capital expenditure on fixed and intangible assets.

    Net Cash used in Investing Activities:

    • ₹(578.56) lakhs (2025)

    • ₹(512.87) lakhs (2024)

    Interpretation:
    The company continues to deploy funds into financial instruments and inter-corporate loans. Investing outflows indicate strategic fund allocation rather than heavy capital expansion. The company appears more investment-oriented than asset-expansion focused.

    3. Cash Flow from Financing Activities

    Key components:

    • Dividend paid: ₹177.11 lakhs.

    • Reduction in other bank balances: ₹21.09 lakhs.

    • Lease liability repayment: ₹9.83 lakhs.

    • Finance cost paid: ₹7.05 lakhs.

      Net Cash used in Financing Activities:

      • ₹(210.99) lakhs (2025)

      • ₹(536.50) lakhs (2024)

      Interpretation:
      Outflow is mainly due to dividend payments and repayment obligations. Financing outflow reduced significantly compared to 2024, indicating lower repayment pressure.

      The company reported a net cash increase in 2025, reversing the previous year’s decline.

      Strong operating cash flows comfortably covered investing and financing outflows.

      Closing cash balance improved to ₹698.12 lakhs, indicating stable liquidity.

      Overall Conclusion

      • Core operations are generating strong and sustainable cash flows.

      • Significant funds are deployed in inter-corporate loans and investments, suggesting a financial investment-driven model.

      • Dividend distribution reflects shareholder-friendly policy.

      • Liquidity position has strengthened in 2025.

      Overall, SHRADHA AI TECHNOLOGIES LIMITED shows improved operational efficiency, disciplined financial management, and stable cash reserves.

Below are the Financial Ratios

Particulars	2025	2024
Current Ratio	25.98	25.71
Return on Equity Ratio	0.133	0.131
Inventory Turnover Ratio	-	1,267.30
Trade Receivables Turnover Ratio	7.62	10.85
Trade payables turnover ratio	9.15	88.27
Net capital Turnover Ratio	0.16	0.57
Net Profit Ratio	0.64	0.37
Return on Capital employed	0.14	0.15

1.Current Ratio

• 2025: 25.98

• 2024: 25.71

Explanation:
The current ratio remains extremely high and stable, indicating a very strong liquidity position. The company holds substantial current assets compared to current liabilities, suggesting excellent short-term solvency. However, such a high ratio may also imply underutilisation of working capital funds.

2.Return on Equity (ROE)

• 2025: 0.133

• 2024: 0.131

Explanation:
ROE improved marginally, reflecting slightly better profitability for shareholders. The company is generating consistent returns on its equity base, indicating stable earnings performance.

3.Inventory Turnover Ratio

• 2025: Nil

• 2024: 1,267.30

Explanation:
Inventory turnover is negligible in 2025, suggesting the company either operates with minimal inventory or shifted away from inventory-based operations. The extremely high ratio in 2024 indicates very fast inventory movement or very low inventory holding.

4.Trade Receivables Turnover Ratio

• 2025: 7.62

• 2024: 10.85

Explanation:
The ratio declined, indicating slower collection from customers compared to the previous year. This may point to relaxed credit terms or an increase in receivable balances, requiring monitoring for working capital efficiency.

5.Trade Payables Turnover Ratio

• 2025: 9.15

• 2024: 88.27

Explanation:
A sharp fall in payables turnover suggests the company is taking longer to pay its suppliers compared to the previous year. This could indicate improved credit terms from vendors or cautious cash management.

6.Net Capital Turnover Ratio

• 2025: 0.16

• 2024: 0.57

Explanation:
The ratio declined significantly, indicating lower efficiency in utilising working capital to generate revenue. This aligns with the very high current ratio, showing excess current assets relative to business activity.

7.Net Profit Ratio

• 2025: 0.64

• 2024: 0.37

Explanation:
Net profit margin improved considerably, indicating stronger cost control and higher profitability. The company is retaining a higher portion of revenue as profit.

8.Return on Capital Employed (ROCE)

• 2025: 0.14

• 2024: 0.15

Explanation:
ROCE declined slightly, suggesting marginally lower efficiency in generating profits from total capital employed. Despite higher net profit margin, capital utilisation efficiency softened.

Overall Interpretation

• Liquidity position is extremely strong but indicates idle working capital.

• Profitability has improved, especially net margins and shareholder returns.

• Efficiency ratios (receivables, payables, capital turnover) show moderation, indicating reduced operational intensity or higher working capital deployment.

• Capital productivity remains stable but requires improvement for stronger long-term returns.

Overall, SHRADHA AI TECHNOLOGIES LIMITED shows strong liquidity and improving profitability, but operational efficiency and capital utilisation need closer monitoring for sustainable growth.