Sri Narayan Rajkumar Merchant Ltd Annual Report and Financials

Sri Narayan Rajkumar Merchant Limited Balance Sheet (Rs In Thousands)

Sri Narayan Rajkumar Merchant Limited Profit & Loss Statement (Rs In Thousand)

Sri Narayan Rajkumar Merchant Limited Consolidated Cash Flow Statement (Rs In Thousand)

Certainly, here is a summary of the Cash Flow Statement for the years 2023 and 2022:

A. Cash Flow from Operating Activities:

The Cash Flow from Operating Activities represents the cash flows generated or consumed by the company 's primary revenue-generating operations. In 2023, the company had a net cash outflow of -12,351.08 Rs, indicating that its core business operations consumed more cash than they generated. This is also observed in the previous year, 2022, where the net cash outflow from operating activities was -69,017.58 Rs.

To arrive at these figures, adjustments are made to the initial "Net Profit before tax & Extraordinary Items," such as accounting for Other Comprehensive Income, profits from the sale of assets and mutual funds, depreciation, bad debts written off, dividend receivables, and changes in the fair value of investments. These adjustments are made to determine "Cash Generated from Operations." Further adjustments are then made for changes in working capital items, like trade receivables, inventories, provisions, and trade payables, to calculate "Net Cash from Operating Activities."

B. Cash Flow from Investing Activities:

The Cash Flow from Investing Activities accounts for the cash flows related to the purchase and sale of assets and investments. In 2023, the company generated 60,755.66 Rs from its investing activities, indicating that it received more cash from investments than it spent. This positive trend is also seen in 2022, where the company generated 23,325.93 Rs from its investing activities. Key components include purchases and sales of fixed assets, purchases and sales of investments, and loans given or received back. Interest income from investments is also included in this section.

C. Cash Flow from Financing Activities:

The Cash Flow from Financing Activities reflects the cash flows related to raising and repaying funds. In 2023, the company had a net cash outflow of -54,363.71 Rs from its financing activities, indicating that it repaid more funds than it raised. In contrast, in 2022, there was a net cash inflow of 72,476.89 Rs from financing activities, showing that the company raised more funds than it repaid. This section mainly includes changes in secured or unsecured borrowings.

Net Change in Cash and Cash Equivalents:

The Net Change in Cash and Cash Equivalents represents the overall change in cash and cash equivalents during the year. In 2023, there was an increase of 5,959.12 Rs in cash and cash equivalents, while in 2022, there was a decrease of -214.78 Rs. This figure reflects the impact of the company 's operating, investing, and financing activities on its cash position.

Cash and Cash Equivalents as at 1st April and 31st March:

These figures denote the cash and cash equivalents at the beginning and end of the year, respectively. In 2023, the company had 7,407.99 Rs as cash and cash equivalents on April 1st and 1,448.87 Rs on March 31st. In 2022, these values were 7,622.75 Rs and 7,407.99 Rs, respectively.

In summary, the Cash Flow Statement provides a detailed breakdown of how the company 's cash position changed over the year, taking into account its operating, investing, and financing activities. It reveals whether the company generated more cash than it used or vice versa and shows the impact on its cash and cash equivalents at the beginning and end of the year.

Below are the Financial Ratios

Here is a summary of the financial and operational metrics for Sri Narayan Rajkumar Merchant Limited for the years 2023 and 2022:

1. Debt Equity Ratio:

2023: 5.626

2022: 6.4

The Debt Equity Ratio indicates the proportion of a company 's financing that comes from debt relative to equity. In 2023, the company reduced its debt relative to equity compared to 2022, which could be seen as a positive sign.

2. Current Ratio:

2023: 1.55

2022: 0.47

The Current Ratio measures a company 's ability to cover its short-term liabilities with its short-term assets. In 2023, the company improved its current ratio significantly, suggesting a better ability to meet its short-term obligations.

3. Debt Service Coverage Ratio:

2023: 2.729

2022: 0.1906

The Debt Service Coverage Ratio evaluates a company 's ability to service its debt by comparing its operating income to its debt obligations. In 2023, the company improved this ratio substantially, indicating better debt-servicing capability.

4. Return on Equity Ratio:

2023: 0.0103

2022: -0.0027

The Return on Equity (ROE) Ratio reflects a company 's profitability relative to shareholders ' equity. In 2023, the company achieved a positive ROE, whereas it had a negative ROE in 2022, indicating an improvement in profitability.

5. Inventory Turnover Ratio:

2023: 0.001

2022: 0.24

The Inventory Turnover Ratio shows how efficiently a company manages its inventory. In 2023, the company 's inventory turnover decreased significantly, which may suggest less efficient inventory management.

6. Trade Receivables Turnover Ratio:

2023: 0.006

2022: NA

The Trade Receivables Turnover Ratio indicates how quickly a company collects payments from customers. In 2023, the company had a turnover ratio, while no data is available for 2022.

7. Trade Payables Turnover Ratio:

2023: 3.58

2022: NA

The Trade Payables Turnover Ratio shows how quickly a company pays its suppliers. In 2023, the company had a turnover ratio, while no data is available for 2022.

8. Net Capital Turnover Ratio:

2023: 0.019

2022: 0.03

The Net Capital Turnover Ratio measures how efficiently a company utilizes its capital to generate revenue. In 2023, the company improved its capital turnover.

9. Net Profit Ratio:

2023: 0.5493

2022: -0.079

The Net Profit Ratio is a measure of profitability, indicating how much of the company 's revenue translates into profit. In 2023, the company achieved a positive net profit ratio, a significant improvement from the negative ratio in 2022.

10. Return on Capital Employed:

2023: 0.0103

2022: -0.0027

The Return on Capital Employed (ROCE) Ratio evaluates the return generated from the capital employed in the business. In 2023, the company achieved a positive ROCE, improving from the negative ROCE in 2022.

11. Return On Investment:

2023: 1.2984

2022: 1.2733

Return on Investment (ROI) is a measure of the return generated on investments. The company 's ROI remained relatively stable between 2023 and 2022.