Kannapiran Mills Annual Reports, Balance Sheet and Financials

 Sri Kannapiran Mills Limited Balance Sheet (Rs in Lakhs)

 Sri Kannapiran Mills Limited Profit & Loss Statement (Rs in Lakhs)

 Sri Kannapiran Mills Limited Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities: The Company reported a loss before tax of Rs. -590.01 lakhs for 2024, a notable decline from the profit of Rs. 754.74 lakhs in 2023. This negative result reflects a challenging year in terms of profitability. Despite this, adjustments for non-cash items such as depreciation (Rs. 810.57 lakhs) were made, along with accounting for a profit on the sale of assets and interest income. The operating profit before working capital changes was Rs. 1,909.46 lakhs, down from Rs. 2,967.66 lakhs in the previous year. Changes in working capital, including increases in trade and other receivables and inventories, and a decrease in trade and other payables, impacted cash flow. The net cash from operating activities was Rs. 1,695.08 lakhs, which, while lower than the Rs. 2,097.99 lakhs in 2023, still reflects positive cash generation from core operations.

Cash Flow from Investing Activities: The investing activities involved a net outflow of Rs. -2,428.54 lakhs. This included significant expenditures on the purchase of fixed assets (Rs. -2,401.75 lakhs), partially offset by proceeds from the sale of fixed assets (Rs. 167.68 lakhs) and a minor sale of investments. There were also small receipts from interest and dividend income. The higher net cash used in investing activities compared to Rs. -1,038.59 lakhs in 2023 indicates increased investment in assets and a reduction in investment income.

Cash Flow from Financing Activities: The financing activities showed a net inflow of Rs. 853.27 lakhs, contrasting with a net outflow of Rs. -1,059.80 lakhs in the previous year. The company raised long-term borrowings amounting to Rs. 2,602.48 lakhs, compared to Rs. 498.18 lakhs in 2023. It also repaid long-term borrowings (Rs. -1,840.11 lakhs) and increased short-term borrowings (Rs. 1,859.95 lakhs). Interest payments were higher at Rs. -1,769.04 lakhs. The positive net cash from financing activities highlights the company 's increased reliance on debt to finance its operations and investments.

Net Increase in Cash and Cash Equivalents: The net increase in cash and cash equivalents for the year was Rs. 119.81 lakhs, reversing a slight decrease of Rs. -0.40 lakhs in 2023. At the end of the year, cash and cash equivalents amounted to Rs. 612.66 lakhs, up from Rs. 492.85 lakhs at the beginning of the year. This increase reflects the overall positive cash flow despite challenges in operating and investing activities.

Components of Cash and Cash Equivalents: The cash and cash equivalents comprised cash on hand (Rs. 72.65 lakhs), current account balances (Rs. 114.10 lakhs), and deposit account balances (Rs. 425.91 lakhs). The increase in cash and cash equivalents highlights improved liquidity and financial stability, enabling the company to meet short-term obligations and fund operations.

Financial Ratios of Sri Kannapiran Mills Limited

Here is a summary of the financial and operational metrics for Sri Kannapiran Mills Limited for the year 2024 and 2023:

Current Ratio: The current ratio measures a company 's ability to meet its short-term liabilities with its short-term assets. For 2024, the current ratio is 1.05, down from 1.13 in 2023. This decrease indicates a decline in the company’s liquidity, meaning it has a smaller margin of safety to cover short-term obligations. While still above 1, suggesting the company can cover its current liabilities, the reduction points to potential liquidity concerns.

Debt-Equity Ratio: This ratio compares the company 's total debt to its shareholders ' equity, indicating the level of financial leverage. In 2024, the debt-equity ratio is 0.35, up from 0.27 in 2023. This increase suggests a higher reliance on debt relative to equity for financing, which could indicate increased financial risk or expansion activities financed through debt.

Debt Service Coverage Ratio (DSCR): The DSCR measures a company 's ability to service its debt with its operating income. For 2024, the DSCR is 0.26, a significant decline from 1.05 in 2023. This sharp drop suggests that the company’s operating income is insufficient to cover its debt service obligations, raising concerns about its ability to meet interest and principal payments.

Return on Equity (ROE): ROE reflects the return generated on shareholders ' equity. In 2024, the ROE is -5%, down from 6% in 2023. The negative ROE indicates a loss for the shareholders, highlighting poor profitability and potentially significant financial issues or operational inefficiencies.

Inventory Turnover Ratio: This ratio measures how efficiently inventory is managed and sold. For 2024, the inventory turnover ratio is 4.74, slightly up from 4.64 in 2023. The increase indicates improved efficiency in managing and selling inventory, suggesting better inventory control or increased sales activity.

Trade Receivable Turnover Ratio: This ratio assesses how efficiently the company collects its receivables. It decreased to 7.23 times in 2024 from 8.38 times in 2023, indicating a slower collection period for receivables. This decline might suggest issues with credit management or slower payments from customers.

Trade Payable Turnover Ratio: This ratio measures how quickly the company pays its suppliers. In 2024, it increased to 5.56 times from 5.35 times in 2023. The slight increase indicates improved efficiency in managing payables, showing the company is paying its suppliers a bit more quickly.

Net Capital Turnover Ratio: This ratio assesses how effectively the company uses its capital to generate sales. For 2024, the net capital turnover ratio is 29.63, significantly higher than 19.82 in 2023. The substantial increase reflects much better utilization of capital to generate sales, suggesting improved operational efficiency or higher revenue generation.

Net Profit Ratio: This ratio measures the percentage of revenue that remains as profit after all expenses. In 2024, the net profit ratio is -1%, compared to 1% in 2023. The negative ratio indicates that the company is operating at a loss, which is a significant deterioration from the previous year’s profitability.

Return on Capital Employed (ROCE): ROCE indicates the return generated on the capital employed in the business. For 2024, the ROCE is 4%, down from 8% in 2023. The decrease suggests a lower return on the capital used, which could imply inefficiencies or lower profitability despite the use of capital.

Return on Investment (ROI): ROI measures the return generated from investments. The ratio dropped to -4% in 2024 from 5% in 2023. This negative ROI indicates that the returns on investments are below the cost, reflecting poor performance or potential losses on invested capital.