Sree Akkamamba Textiles Ltd Annual Report and Financials

Sree Akkamamba Textiles Limited Standalone Balance Sheet (Rs in Crores)

Sree Akkamamba Textiles Limited Standalone Profit & Loss Statement (Rs in Crores)

Sree Akkamamba Textiles Limited Standalone Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities:
The company continues to report operating losses, with net profit before tax remaining negative at ₹-14.49 crores in 2025 (slightly improved from ₹-16.33 crores in 2024). After adjusting for non-cash and financial items like depreciation and interest, the operating loss reduces but still remains negative. However, a significant improvement is seen in working capital management—particularly increases in trade payables and current liabilities—which has helped generate positive cash flow from operations of ₹5.19 crores in 2025 compared to a negative ₹-1.93 crores in 2024. This indicates that despite accounting losses, the company managed to generate cash through efficient short-term liability management.

Cash Flow from Investing Activities:
Investing activities show a positive cash inflow of ₹0.38 crores in 2025 compared to an outflow of ₹-0.45 crores in 2024. The absence of capital expenditure in 2025, along with steady income from interest and dividends, contributed to this improvement. In contrast, the previous year included investment in fixed assets, which led to cash outflow. Overall, the company has reduced its investment spending, possibly conserving cash due to its weak profitability position.

Cash Flow from Financing Activities:
Financing activities reflect a net cash outflow of ₹-5.57 crores in 2025, compared to an inflow of ₹1.54 crores in 2024. This shift is mainly due to repayment of loans and consistent interest payments. In 2024, the company had raised funds through borrowings, which supported cash inflows. The 2025 outflow indicates a reduction in reliance on external debt, but it also puts pressure on liquidity given the company 's ongoing losses.

Net Change in Cash Position:
Overall, the company’s cash position remained stable during 2025, with no net increase or decrease in cash balances, maintaining ₹0.31 crores at year-end. This is an improvement compared to 2024, where cash declined by ₹0.85 crores. The positive operating cash flow in 2025 has helped offset financing outflows, resulting in a stable cash balance despite continued financial challenges.

Financial ratios of Sree Akkamamba Textiles Limited

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

Current Ratio:
The current ratio declined from 0.67 in FY24 to 0.48 in FY25, indicating a weakening liquidity position. The company is facing increased difficulty in meeting its short-term obligations, reflecting poor working capital management.

Debt Equity Ratio:
The debt-equity ratio rose sharply from 2.05 to 4.92, highlighting a significant increase in financial leverage. This indicates greater reliance on borrowed funds and an elevated level of financial risk.

Debt Service Coverage Ratio:
The debt service coverage ratio remained negative and deteriorated from -0.50 to -0.82, showing that the company is unable to generate sufficient earnings to service its debt, which is a serious concern.

Return on Equity Ratio:
Return on equity worsened substantially from -42.37% to -84.86%, reflecting increased losses and significant erosion of shareholders’ value during the year.

Inventory Turnover Ratio:
The inventory turnover ratio improved from 6.21 to 7.05, indicating better inventory management and faster movement of goods compared to the previous year.

Trade Receivables Ratio:
The trade receivables turnover ratio slightly improved from 13.02 to 13.64, suggesting more efficient collection of receivables.

Trade Payables Turnover Ratio:
The trade payables turnover ratio declined significantly from 13.38 to 6.70, indicating slower payments to suppliers and potential liquidity stress.

Net Capital Turnover Ratio:
The net capital turnover ratio improved from -8.60 to -4.30, though it remains negative, indicating that capital utilization is still inefficient despite some improvement.

Net Profit Ratio:
The net profit ratio declined from -10.17% to -11.38%, showing continued losses and deterioration in profitability.

Return on Capital Employed:
Return on capital employed decreased from -17.61% to -18.44%, indicating reduced efficiency in utilizing capital to generate returns.

Return on Investments:
Return on investments declined sharply from -12.36% to -26.82%, reflecting poor performance of investments and overall financial inefficiency.