SNS Properties Annual Reports, Balance Sheet & Financials

SNS Properties and Leasing Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-current assets
Property, plant and equipment	0.42	0.03
Current assets
Trade Receivables	28.08	-
Cash and cash equivalents	12.23	9.26
Other financial assets	-	4.86
Current tax assets	1.71	-
Other current assets	-	10.00
Total assets	42.44	24.15
Equity
Equity share capital	99.42	99.42
Other equity	-76.32	-80.33
Non-current liabilities
Deferred tax liabilities (net)	-0.01	-
Current liabilities
Borrowings	13.23	2.02
Other financial liabilities	1.44	2.05
Other current liabilities	4.68	-
Current tax liabilities (net)	-	0.99
Total equity and liabilities	42.44	24.15

SNS Properties and Leasing Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from operations	26.00	13.00
Other income	0.68	0.10
Total Income	26.68	13.10
Expenses
Employee benefits expenses	2.66	2.76
Finance costs	0.97	0.03
Depreciation	0.15	-
Other expenses	19.98	2.44
Total Expenses	23.77	5.23
Profit before tax	2.91	7.87
Current tax	0.95	2.05
Deferred tax	-0.01	-
Profit after tax	1.97	5.82
Total comprehensive income	1.97	5.82
Earnings per share
Basic & Diluted	0.20	0.59

SNS Properties and Leasing Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash flow from operating activities
Profit before tax	2.91	7.87
Adjustments for:
Depreciation	0.15	-
Loss on sale of fixed assets	0.02	-
Interest income	-0.60	-
Operating profit before working capital changes	2.48	7.87
Changes in working capital:
Increase in trade receivables	-28.08	-
Decrease/(increase) in other current financial assets	4.86	-4.86
(Decrease)/increase in other current financial liabilities	-0.60	1.70
Increase in other current liabilities	4.68	-
Decrease in other current assets	7.34	0.15
Changes in working capital	-11.80	-3.01
Cash generated/(used) in operations	-9.32	4.86
Direct taxes (paid)/refund received	1.06	-1.06
Net Cash from operating activities	-8.26	3.80
Cash flow from investing activities
Purchase of fixed assets	-0.58	-
Sale of fixed assets	0.01	-
Interest received	0.60	-
Net Cash used in investing activities	0.03	-
Cash flow from financing activities
Proceeds from short term borrowings	11.20	2.03
Net cash from financing activities	11.20	2.03
Net increase in cash and cash equivalents	2.97	5.83
Cash at beginning of the year	9.26	3.43
Cash at end of the year	12.23	9.26

Summary of cash flow statement for the year 2025 and 2024:

Cash Flow from Operating Activities

The company generated a profit before tax of ₹2.91 lakhs in FY25, which is significantly lower than ₹7.87 lakhs in FY24, indicating a decline in core profitability. After adjusting for non-cash and non-operating items like depreciation (₹0.15 lakhs), loss on sale of assets (₹0.02 lakhs), and deducting interest income (₹0.60 lakhs), the operating profit before working capital changes stood at ₹2.48 lakhs, again much lower than the previous year.

However, the major impact comes from working capital changes, which show a net outflow of ₹11.80 lakhs. This is primarily driven by a sharp increase in trade receivables (₹28.08 lakhs), indicating that cash is tied up in collections. Although there were some positive movements like a decrease in other current assets and an increase in liabilities, they were not enough to offset the receivables spike. As a result, the company reported cash used in operations of ₹9.32 lakhs, compared to positive ₹4.86 lakhs last year.

After accounting for tax refunds of ₹1.06 lakhs, the net cash flow from operating activities is negative at ₹8.26 lakhs, a significant deterioration from the positive ₹3.80 lakhs in FY24. This suggests weak cash conversion despite reported profits.

 

Cash Flow from Investing Activities

The investing section shows minimal activity. The company purchased fixed assets worth ₹0.58 lakhs and received a small amount from asset sales (₹0.01 lakhs) along with interest income of ₹0.60 lakhs. Overall, this results in a net positive cash flow of ₹0.03 lakhs.

This indicates that the company is not heavily investing in long-term assets, and its investing activity remains relatively stable and low-risk. The positive inflow is mainly due to interest income rather than asset disposals or strategic investments.

 

Cash Flow from Financing Activities

The financing section reflects a strong inflow. The company raised ₹11.20 lakhs through short-term borrowings, which is significantly higher than ₹2.03 lakhs in FY24. This results in a net cash inflow of ₹11.20 lakhs from financing activities.

This suggests that the company is relying heavily on external borrowing to fund its operations, especially to compensate for negative operating cash flows. While this improves liquidity in the short term, it may increase financial risk if such dependence continues.

 

Net Change in Cash Position

Despite negative operating cash flow, the strong financing inflow led to a net increase in cash and cash equivalents of ₹2.97 lakhs, though lower than ₹5.83 lakhs in FY24. The cash balance increased from ₹9.26 lakhs at the beginning of the year to ₹12.23 lakhs at the end.

This indicates that the company has maintained liquidity, but the improvement is not driven by operational strength, rather by borrowings.

Financial Ratios of SNS Properties and Leasing Limited

Particulars	31-03-2025	31-03-2024
Current Ratio	2.17	4.77
Debt-Equity Ratio	0.57	0.11
Debt Service Coverage Ratio	0.33	3.84
Return on Equity	9.34%	36.01%
Trade Receivables Turnover Ratio	0.93	-
Net Capital Turnover Ratio	1.15	0.68
Net Profit Ratio (%)	7.58%	44.80%
Return on Capital Employed (%)	18.39%	45.96%

Summary of ratios for the year2025 and 2024:

Current Ratio

The current ratio declined sharply from 4.77x in FY24 to 2.17x in FY25. Although a ratio above 1 still indicates that the company can meet its short-term obligations, the significant drop suggests reduced liquidity cushion. This aligns with the cash flow statement, where higher receivables have tied up funds, weakening short-term financial flexibility.

 

Debt-Equity Ratio

The debt-equity ratio increased from 0.11x to 0.57x, indicating a substantial rise in leverage. The company has taken on more debt relative to equity, likely to support operations amid weak operating cash flows. While the ratio is still moderate, the sharp increase signals a growing dependence on borrowed funds, which could raise financial risk if not managed carefully.

 

Debt Service Coverage Ratio

The DSCR dropped drastically from 3.84x in FY24 to 0.33x in FY25, which is a major concern. A ratio below 1 indicates that the company is not generating sufficient earnings to cover its debt obligations. This reflects stress on repayment capacity and aligns with increased borrowings and weaker operational performance.

 

Return on Equity

ROE declined significantly from 36.01% to 9.34%, showing a sharp fall in returns to shareholders. This indicates that the company is less efficient in generating profits from its equity base, possibly due to reduced profitability and increased capital employed.

 

Trade Receivables Turnover Ratio

The receivables turnover ratio stands at 0.93x in FY25, with no comparable figure for FY24. A ratio below 1 suggests slow collection of receivables, meaning the company takes longer to convert credit sales into cash. This supports the observation of increased receivables in the cash flow statement and indicates inefficient credit management.

 

Net Capital Turnover Ratio

The ratio improved from 0.68x to 1.15x, indicating better utilization of working capital to generate revenue. This is a positive sign, suggesting that despite liquidity challenges, the company has improved its efficiency in using net working capital to drive sales.

 

Net Profit Ratio

The net profit margin dropped sharply from 44.80% to 7.58%, reflecting a significant decline in profitability. This suggests increased costs, lower revenue quality, or operational inefficiencies, and indicates that the company is earning much less profit per unit of revenue compared to the previous year.

 

Return on Capital Employed

ROCE decreased from 45.96% to 18.39%, showing reduced efficiency in utilizing total capital (both debt and equity). While still positive, the decline indicates that overall capital productivity has weakened, likely due to lower earnings and higher capital base.