Sistema Smart Annual Reports, Balance Sheet and Financials

Sistema Smart Technologies Limited Balance Sheet (Rs in millions)

 Sistema Smart Technologies Limited Profit & Loss Statement (Rs in millions)

 Sistema Smart Technologies Limited Consolidated Cash Flow Statement (Rs in millions)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flows from Operating Activities:
The company’s cash flow from operating activities was negative, amounting to ₹-174.23 million for the year, a sharp decline compared to the previous year 's negative cash flow of ₹-64.66 million. This negative cash flow indicates that the company’s operations consumed more cash than they generated. Key factors contributing to this include:

Net Loss before Tax: The increased net loss contributed to the negative cash flow.

Depreciation and Amortisation: The depreciation and amortization charges rose to ₹6.43 million from ₹2.80 million, providing some positive adjustment.

Interest Income: There was an increase in interest income to ₹128.82 million from ₹96.70 million, but this was not enough to offset the negative cash flow.

Finance Costs: Finance costs were higher at ₹18,667.74 million compared to ₹17,907.09 million.

Allowances for Credit Losses: These were minimal at ₹0.90 million, down from ₹7.99 million, which had a minor positive effect.

Provisions and Liabilities: Adjustments such as the write-back of provisions and unrealized foreign exchange losses had a minor impact.

Working Capital Movements: Significant negative impacts included a decrease in trade receivables and other receivables, combined with minor changes in inventories, payables, and provisions.

Cash Flows from Investing Activities:
The company reported a positive net cash flow from investing activities of ₹162.83 million for the year, a substantial improvement from the previous year 's negative flow of ₹-402.91 million. This positive movement was driven by several factors:

Disposals: There were proceeds from the disposal of property, plant, and equipment (₹1 million), assets held for sale (₹17.2 million), and right-of-use assets (₹3.70 million).

Investment in Bank Balances: A minor increase of ₹3.10 million in bank balances also contributed positively.

Interest Received: Increased interest receipts of ₹102.54 million compared to ₹66.81 million also added to the positive cash flow.

Margin Money Deposits: There was a significant positive cash flow from margin money deposits amounting to ₹37.87 million, reversing the previous year’s large outflow.

Cash Flows from Financing Activities:
The cash flow from financing activities showed a net outflow of ₹-5.72 million, a slight increase from the previous year 's outflow of ₹-4.02 million. This was primarily due to:

Repayments: The repayment of lease liabilities and interest and finance charges contributed to the negative cash flow.

Borrowings: There were no proceeds or repayments of current borrowings this year, unlike the previous year where such transactions were observed.

 Financial Ratios of Sistema Smart Technologies Limited

Here is a summary of the financial and operational metrics for Sistema Smart Technologies Limited for the year 2024 and 2023:

Current Ratio: The current ratio increased slightly to 1.71 in 2024 from 1.70 in 2023. This indicates that the company 's short-term assets marginally exceed its short-term liabilities, reflecting a stable liquidity position. A ratio above 1 suggests the company is capable of covering its short-term obligations, though the change is modest.

Debt-Equity Ratio: The debt-equity ratio remained unchanged at -1.01 in both 2024 and 2023. A negative ratio typically suggests that the company has more liabilities than equity or is heavily reliant on debt financing, which could indicate high financial risk. The stability in this ratio over the year reflects consistent capital structure and financial risk profile.

Debt Service Coverage Ratio (DSCR): The DSCR dropped to 0 in 2024 from 0.03 in 2023. This sharp decline suggests that the company has insufficient cash flow to cover its debt obligations, indicating potential liquidity issues or severe financial stress.

Return on Equity (ROE): The ROE worsened to -0.15% in 2024 from -0.10% in 2023. The negative values indicate that the company is experiencing losses relative to its equity, reflecting poor profitability and inefficiencies in generating returns for shareholders.

Inventory Turnover Ratio: There is no available data for inventory turnover in 2024, but the ratio was notably high at 93.72 in 2023. This suggests that in 2023, the company efficiently managed its inventory, turning it over almost 94 times during the year, which indicates strong sales performance or efficient inventory management.

Trade Receivables Turnover Ratio: The ratio improved to 1.72 times in 2024 from 1.15 times in 2023. This increase indicates that the company has become more efficient in collecting receivables, suggesting better credit management or improved cash flow from customer payments.

Trade Payable Turnover Ratio: The ratio increased dramatically to 7.72 times in 2024 from 0.22 times in 2023. This significant rise implies that the company has substantially improved its payment frequency to suppliers, which may be a result of renegotiated payment terms or improved cash flow.

Net Capital Turnover Ratio: The net capital turnover ratio remained stable at 0.12 times for both years. This consistent ratio indicates that the company’s capital base has been used at a constant rate to generate revenues, reflecting steady operational efficiency in utilizing its capital.

Net Profit Ratio: The net profit ratio worsened to -183.15% in 2024 from -273.22% in 2023. The negative ratio indicates that the company 's expenses far exceed its revenues, resulting in significant losses relative to its sales, though the improvement suggests a slight reduction in loss proportion.

Return on Capital Employed (ROCE): The ROCE improved to 0.06% in 2024 from -0.03% in 2023. Although still minimal, this improvement indicates a slight increase in the efficiency of the company 's capital usage, with marginally better returns on the capital employed.