Skyline India Annual Report, Balance Sheet & Revenue

Skyline India Limited Balance Sheet (Rs in hundred)

Skyline India Limited Profit & Loss Statement (Rs in hundred)

Particulars	31-03-2025	31-03-2024
Revenue From Operations	28,244	52,318
Other Income	6,868	4,549
Total Income	35,112	56,867
EXPENSES
Operational Expenses	6,559	40,016
Purchases of Stock-in-Trade	4,485	4,485
Changes in inventories of finished goods, Stock-in -Trade and work-in-progress	- (4,485)	- (4,485)
Employee benefits expense	11,786	19,368
Finance costs	5.33	14.34
Depreciation and amortization expense	2,770	4,668
Other expenses	13,769	24,623
Total expenses	34,889	88,690
Profit/(loss) before exceptional items and tax	223	(31,822)
Deferred tax	111	(298)
Profit (Loss) for the period from continuing operations	334	(31,525)
Earnings per equity share
Basic	(0.01)	(0.74)
Diluted	(0.01)	(0.74)

Skyline India Limited Cash Flow Statement (Rs in hundred)

Cash Flow Analysis of Skyline India Limited

1️⃣ Operating Activities

During the year 2024-25, the company reported a Net Profit before Tax of ₹233 lakhs, showing a significant turnaround compared to a heavy loss of ₹31,822 lakhs in 2023-24.

After adjusting for non-cash expenses like depreciation of ₹2,770 lakhs, the operating profit before working capital changes stood at ₹2,993 lakhs, as against a negative ₹27,175 lakhs in the previous year.

However, working capital movements impacted liquidity:

• Short-term loans & advances increased by ₹6,091 lakhs (cash outflow).

• Other current liabilities increased by ₹2,716 lakhs (cash inflow).

As a result, cash generated from operations remained negative at ₹383 lakhs, though this is a substantial improvement over last year’s negative ₹3,528 lakhs.

Interpretation:

The company has shown operational recovery in terms of profitability, but working capital requirements continue to put pressure on cash flows. Despite improvement, operating activities are yet to generate positive cash surplus.

2️⃣ Investing Activities

During 2024-25, the company generated ₹637 lakhs from the sale of fixed assets.

In the previous year, there were no investing cash flows reported.

Interpretation:

The positive investing cash flow indicates asset monetization. This may suggest restructuring, disposal of non-core assets, or liquidity management efforts. However, absence of new investments may also reflect limited expansion activity.

3️⃣ Financing Activities

There were no cash flows from financing activities in both years.

Interpretation:

The company neither raised new funds nor repaid borrowings during the year. This suggests a neutral capital structure movement and reliance mainly on internal adjustments.

4️⃣ Net Change in Cash Position

• Net increase in cash & cash equivalents during 2024-25: ₹255 lakhs

• Previous year showed a decrease of ₹3,508 lakhs.

Opening cash balance: ₹1,804 lakhs
Closing cash balance: ₹2,059 lakhs

The improvement is primarily due to investing inflows exceeding operating outflows.

Break-up of closing cash (2025):

• Cash in hand: ₹1,794 lakhs

• Cheque in hand: ₹3,376 lakhs

• Current account balance: ₹310 lakhs

Overall Conclusion

Skyline India Limited has demonstrated a significant operational turnaround compared to the previous year’s heavy losses. Although operating cash flows are still marginally negative, the deficit has reduced considerably.

The increase in cash balance was supported mainly by proceeds from sale of fixed assets rather than core business operations. The company now appears to be stabilizing, but sustained positive operating cash flows will be crucial for long-term financial strength and growth.

Financial Ratios of Skyline India Limited

Key Ratio Analysis – Skyline India Limited

1. Current Ratio
The current ratio declined to 10.73 in FY 2024–25 from 15.64 in FY 2023–24. Although the ratio remains significantly above the ideal benchmark, indicating strong short-term liquidity, the decrease suggests comparatively lower current asset coverage over current liabilities during the year. The company still maintains a comfortable position to meet its short-term obligations.

ROE improved sharply to 0.42 from a negative (-39.44) in the previous year. This indicates a turnaround in profitability and better utilization of shareholders’ funds. The shift from losses to positive returns reflects improved financial performance and earnings generation during the year.

3. Net Capital Turnover Ratio
The net capital turnover ratio declined to 0.35 from 0.65. This indicates relatively lower efficiency in utilizing capital to generate revenue compared to the previous year. The decrease may suggest reduced operational activity or higher capital employed without proportionate growth in sales.

4. Net Profit Ratio
The net profit ratio improved to 0.01 from -0.60 in FY 2023–24. This reflects a shift from losses to marginal profitability, indicating better cost management and improved operational performance. However, the margin remains very low, suggesting scope for further improvement in profitability.

5. Return on Capital Employed (ROCE)
ROCE moved from a negative (-0.39) in the previous year to 0.00 in FY 2024–25. This shows stabilization in returns generated from overall capital employed, though the ratio indicates minimal efficiency. The company needs to improve operating profits to enhance returns on its capital base.