Sree Satyanarayana Annual Reports, Balance Sheet and Financials

Sree Satyanarayana Spinning Mills Limited Standalone Balance Sheet (Rs. in Lakhs)

Sree Satyanarayana Spinning Mills Limited Standalone Profit and Loss Accounts (Rs. in Lakhs)

Sree Satyanarayana Spinning Mills Limited Standalone Cash Flow Statement (Rs. in Lakhs)

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

During FY 2024–25, the company generated a strong operating cash inflow of ₹899.58 lakhs, despite reporting a pre-tax loss of ₹210.78 lakhs. This indicates that cash generation was driven primarily by non-cash adjustments and working capital movements rather than accounting profits. Significant positive adjustments included depreciation of ₹349.57 lakhs, which is a non-cash expense, and reversals of investment-related profits such as profit on sale of current investments (₹46.28 lakhs) and revaluation gains (₹25.48 lakhs). Working capital changes further strengthened cash flows, mainly due to a substantial reduction in trade receivables of ₹672.13 lakhs and a decline in inventories of ₹351.09 lakhs, reflecting improved collection efficiency and inventory management. Although there was a decrease in trade payables (₹142.73 lakhs) and other financial liabilities (₹107.39 lakhs), the overall operating cash flow remained robust. In comparison, FY 2023–24 recorded a higher operating cash inflow of ₹1,014.29 lakhs, supported by strong operating profits and favourable working capital movements. Overall, the operating performance in FY 2024–25 demonstrates healthy cash generation capability despite lower profitability.

Cash Flow from Investing Activities

In FY 2024–25, the company reported a net cash outflow of ₹786.88 lakhs from investing activities. This was largely driven by large-scale movement in current investments, where purchases amounting to ₹5,413.91 lakhs were partially offset by sale or maturity proceeds of ₹4,633.91 lakhs, indicating active treasury and investment management. Capital expenditure remained relatively low, with ₹23.67 lakhs spent on fixed assets, suggesting limited expansion or asset replacement during the year. Interest income of ₹16.79 lakhs provided marginal support to investing cash flows. In contrast, FY 2023–24 saw a much lower investing cash outflow of ₹130.29 lakhs, primarily due to higher capital expenditure and minimal investment transactions. The higher outflow in FY 2024–25 reflects strategic reallocation of surplus funds into short-term investments rather than long-term asset creation.

Cash Flow from Financing Activities

Financing activities in FY 2024–25 resulted in a net cash outflow of ₹42.63 lakhs, which was significantly lower than the outflow of ₹894.73 lakhs in FY 2023–24. The current year outflow mainly comprised dividend payments of ₹39.56 lakhs and interest payments of ₹3.07 lakhs, indicating limited reliance on external funding. Notably, there was no buyback of shares in FY 2024–25, whereas the previous year witnessed a substantial buyback of ₹682.68 lakhs along with buyback tax of ₹159.04 lakhs, which heavily impacted financing cash flows. The sharp reduction in financing outflows reflects a more conservative capital distribution approach during the year.

Net Cash Flow and Cash Position

As a result of strong operating inflows and controlled financing outflows, the company achieved a net increase in cash and cash equivalents of ₹70.08 lakhs during FY 2024–25, compared to an increase of ₹10.72 lakhs in FY 2023–24. The cash and cash equivalents balance improved significantly from ₹19.35 lakhs at the beginning of the year to ₹89.43 lakhs at the end of the year, strengthening the company’s liquidity position. This improvement highlights effective cash management and the company’s ability to generate and retain cash despite accounting losses, thereby enhancing short-term financial stability.

Sree Satyanarayana Spinning Mills Limited Financial Ratios

Summary of the Financial Ratios for the years 2025 and 2024:

Current Ratio

The current ratio increased from 3.06 in 2024 to 3.70 in 2025, showing an improvement in the company’s liquidity position. The firm is in a strong position to meet its short-term obligations. However, the high ratio may also indicate excess idle current assets.

Return on Equity

ROE declined from 1% in 2024 to -3% in 2025, indicating that the company incurred losses during 2025. This reflects poor profitability and reduced returns to shareholders.

Inventory Turnover Ratio

The inventory turnover ratio improved from 2.89 to 3.70, showing better inventory management and faster movement of stock, which helps in reducing holding costs.

Trade Receivables Turnover Ratio

The receivables turnover ratio increased sharply from 6.42 to 18.32, indicating efficient credit collection and improved cash inflows.

Trade Payables Turnover Ratio

The payables turnover ratio rose from 2.48 to 3.08, showing that the company is paying suppliers faster, which strengthens supplier relationships but may reduce short-term credit benefits.

Net Capital Turnover Ratio

The net capital turnover ratio declined from 2.46 to 2.08, suggesting less efficient utilization of working capital in generating sales.

Net Profit Ratio

The net profit ratio fell from 1% to -3%, showing that the company moved from profit to loss, indicating declining operational performance.

Return on Capital Employed

ROCE declined from 2% to -4%, indicating poor utilization of capital and operating losses during 2025.

Return on Investment

ROI remained at 0% for both years, showing that investments did not generate any return.