Shri Gurudev En Trade Limited Annual Report and Financials

Shri Gurudev En-Trade Limited Standalone Balance Sheet (Rs in Hundreds)

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

Cash Flow from Operating Activities

In FY 2024–25, the company reported a net loss before tax of ₹3,856.09 (in hundreds); however, operating activities generated a strong net cash inflow of ₹15,951.70 (in hundreds). This was largely driven by working capital movements, particularly a substantial increase in inventories amounting to ₹24,483.79 (in hundreds) and adjustments in other current assets and liabilities. Income tax paid remained minimal at ₹1.53 (in hundreds). Compared to the previous year’s operating cash inflow of ₹5,295.71 (in hundreds), operational cash generation improved significantly, indicating effective working capital management despite reported losses.

Cash Flow from Investing Activities

Cash flow from investing activities showed a positive inflow of ₹22,543.02 (in hundreds) during FY 2024–25, arising entirely from the sale of investments. There were no investing cash flows in the previous year. This suggests that the company monetized its investments to support liquidity requirements and strengthen cash availability during the year.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹38,900.00 (in hundreds). This outflow was mainly due to loan-related movements and repayments, reflecting a conscious effort toward debt reduction. In comparison, the previous year recorded a financing outflow of ₹5,800.00 (in hundreds). The higher outflow in the current year significantly impacted overall cash balances.

Net Cash and Cash Equivalents

The company recorded a net decrease in cash and cash equivalents of ₹405.28 (in hundreds) during FY 2024–25. Opening cash balance stood at ₹769.25 (in hundreds) and closed at ₹363.98 (in hundreds). Although operating and investing activities generated healthy inflows, substantial financing outflows led to a reduction in closing cash. Nevertheless, the decline was lower than the previous year’s decrease of ₹504.29 (in hundreds), indicating relatively better cash flow stability.

Financial Ratios of Shri Gurudev En-Trade

Summary of the financial and operational metrics for Shri Gurudev En-Trade Limited for the year 2025 and 2024:
Current Ratio

The Current Ratio increased significantly from 1.64 in 2024 to 5.29 in 2025, indicating a substantial improvement in the company’s short-term liquidity position. The company now holds a much higher level of current assets compared to its current liabilities, reflecting strong ability to meet short-term obligations. However, such a high ratio may also indicate inefficient working capital management, as excess funds could be tied up in cash, receivables, or inventory instead of being productively deployed.

Return on Equity Ratio

The Return on Equity declined from a marginally positive 0.03% in 2024 to a negative 0.01% in 2025. This negative return indicates that the company incurred losses during the year and was unable to generate value for its shareholders. The decline reflects weakened profitability and reduced efficiency in utilizing shareholders’ funds, which is a matter of concern from an investor’s perspective.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio increased from 27.30 times in 2024 to 51.52 times in 2025, indicating that the company is settling its trade payables at a much faster pace. While timely payments strengthen supplier relationships and enhance creditworthiness, excessively quick payments may limit the company’s ability to utilize supplier credit effectively, potentially impacting cash flow management.

Return on Capital Employed

The Return on Capital Employed declined from a positive 0.02% in 2024 to a negative 0.02% in 2025. This indicates that the company failed to generate sufficient operating profits from the capital employed during 2025. The negative ROCE reflects inefficiencies in capital utilization and operational performance, highlighting the need for improved profitability to ensure long-term financial sustainability.