Sri Vishnu Shankar Annual Reports, Balance Sheet and Financials

 Sri Vishnu Shankar Mill Limited Consolidated Balance Sheet (Rs in Crores)

 Sri Vishnu Shankar Mill Limited Consolidated Profit & Loss Statement (Rs in Crores)

Sri Vishnu Shankar Mill Limited Consolidated Cash Flow Statement (Rs in Crores)

Summary of Cash Flow Statement for the year 2026 and 2025:

Cash Flow from Operating Activities

Sri Vishnu Shankar Mill Limited reported a significant improvement in its operating cash flows during FY 2025-26, with net cash generated from operating activities increasing to ₹28.51 crore from ₹17.36 crore in the previous year. Although the company continued to incur a pre-tax loss of ₹13.67 crore, the loss narrowed compared to ₹24.94 crore in FY 2024-25. Non-cash expenses such as depreciation (₹14.22 crore) and finance costs (₹20.88 crore) supported the reconciliation of losses to operating cash flow. The major driver of improved operating cash generation was favorable working capital management, particularly a substantial reduction in trade receivables (₹19.30 crore) and recovery of loans and advances (₹6.05 crore). However, the increase in inventories (₹14.20 crore) partially offset these gains. Overall, the positive operating cash flow indicates that the company 's core operations generated adequate cash despite continued accounting losses.

Cash Flow from Investing Activities

The company recorded a net cash outflow of ₹2.91 crore from investing activities during FY 2025-26 compared to a net inflow of ₹2.19 crore in the previous year. The primary reason for the outflow was capital expenditure on fixed assets amounting to ₹5.40 crore, indicating continued investment in maintaining or expanding productive capacity. Additionally, the company invested ₹0.42 crore in equity shares. These outflows were partially offset by proceeds from the sale of assets (₹0.56 crore), interest income (₹1.50 crore), dividend income (₹0.62 crore), and rental income (₹0.17 crore). The shift from a positive to a negative investing cash flow reflects increased capital investment during the year, which may support future operational performance.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹25.99 crore, higher than the ₹19.03 crore outflow reported in FY 2024-25. The company did not raise any new long-term borrowings during the year, unlike the previous year when it received ₹54.17 crore. Instead, it repaid ₹53.50 crore of long-term debt, demonstrating a significant reduction in leverage. To support liquidity, the company obtained ₹34.58 crore from related parties and increased short-term borrowings by ₹13.81 crore, while continuing to incur interest payments of ₹20.88 crore. Overall, the financing cash flows indicate a strategy focused on debt repayment, supported by related-party funding and additional short-term borrowings to meet financial obligations.

Net Cash Flow Position

Overall, the company 's cash and cash equivalents decreased marginally by ₹0.39 crore during FY 2025-26, compared to an increase of ₹0.53 crore in the previous year. The strong cash generation from operating activities was largely utilized to finance capital investments and substantial debt repayments. Consequently, the closing cash balance declined from ₹0.78 crore to ₹0.39 crore. While the reduction in cash reserves reflects pressure from financing commitments, the healthy operating cash flow demonstrates an improvement in the company 's ability to generate cash internally. Sustaining this operating performance while reducing dependence on external financing will be essential for strengthening liquidity and overall financial stability in the future.

Financial ratios of Sri Vishnu Shankar Mill Limited

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio

The Current Ratio decreased from 0.73 in FY 2024–25 to 0.67 in FY 2025–26. This ratio measures the company 's ability to meet its short-term obligations using its current assets. A ratio below 1 indicates that current liabilities exceed current assets, reflecting a weak liquidity position. The decline suggests that the company 's short-term financial flexibility deteriorated during the year, possibly due to increased current liabilities or lower current asset levels. The company should improve working capital management by increasing liquid assets or reducing short-term liabilities to strengthen its liquidity position.

Debt-Equity Ratio

The Debt-Equity Ratio increased significantly from 22.69 to 85.67 during FY 2025–26. This sharp increase indicates that the company is highly leveraged and relies heavily on borrowed funds relative to shareholders ' equity. The rise is likely attributable to accumulated losses reducing the equity base rather than a substantial increase in debt. Such a high debt-equity ratio increases financial risk, exposes the company to higher interest obligations, and may affect its ability to obtain additional financing. The company needs to improve profitability and strengthen its equity base to achieve a more balanced capital structure.

Debt Service Coverage Ratio

The Debt Service Coverage Ratio (DSCR) improved from 0.56 in FY 2024–25 to 1.06 in FY 2025–26. This ratio measures the company 's ability to meet its debt repayment and interest obligations from its operating earnings. A ratio above 1 indicates sufficient earnings to service debt. The improvement reflects stronger operational cash generation and better debt servicing capacity during the year. Although the ratio has crossed the minimum acceptable level, maintaining and improving this trend is essential to ensure long-term financial stability.

Return on Equity

The Return on Equity (ROE) improved substantially from -90% to -17%. ROE measures the return generated on shareholders ' funds. Although the ratio remains negative due to continued net losses, the significant improvement indicates that losses relative to equity have reduced considerably. This reflects better financial performance compared to the previous year. However, the company must achieve consistent profitability to generate positive returns for shareholders and enhance investor confidence.

Inventory Turnover Ratio

The Inventory Turnover Ratio increased from 45 to 59, indicating improved efficiency in inventory management. A higher turnover ratio suggests that inventory is being sold and replenished more quickly, reducing storage costs and minimizing the risk of inventory obsolescence. The improvement reflects stronger operational efficiency and better inventory control, which contributes positively to cash flow and working capital management.

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio was reported as 7 in FY 2024–25 but was not available for FY 2025–26. The absence of the ratio may be due to negligible credit sales, accounting adjustments, or reporting limitations. In the previous year, the ratio of 7 indicated that receivables were collected approximately seven times during the year, reflecting a satisfactory collection period. Since the ratio is unavailable for FY 2025–26, a year-on-year comparison cannot be made.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio changed from 36 in FY 2024–25 to -3 in FY 2025–26. A negative ratio is unusual and generally results from negative purchases, purchase returns exceeding purchases, or accounting adjustments rather than normal business operations. Therefore, the ratio cannot be interpreted in the conventional manner. It suggests that the company 's purchase or payable figures were affected by exceptional accounting treatments during the year, making this ratio less meaningful for performance evaluation.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio declined marginally from 188 to 186. This ratio measures how efficiently the company utilizes its working capital to generate revenue. The slight decline indicates that working capital efficiency remained largely stable during the year. The consistently high ratio suggests effective utilization of net working capital in supporting business operations, although the company should continue improving liquidity alongside operational efficiency.

Net Profit Ratio

The Net Profit Ratio improved from -6% in FY 2024–25 to -2% in FY 2025–26. This ratio measures the percentage of net profit earned from total revenue. Although the company continued to incur losses, the reduction in the negative margin indicates improved cost management and a significant decline in losses. The improvement suggests that the company is moving toward profitability, but sustained efforts are required to generate positive net earnings.

Return on Capital Employed

The Return on Capital Employed (ROCE) increased from 3% to 5% during FY 2025–26. This ratio measures the efficiency with which the company generates operating profits from its long-term capital. The improvement indicates better utilization of capital employed and enhanced operational performance. However, the return remains relatively modest, suggesting that further improvements in operating profitability are necessary to maximize returns from invested capital.

Return on Investment  

The Return on Investment (ROI) improved from -3% in FY 2024–25 to -1% in FY 2025–26. ROI measures the returns generated from investments made by the company. Although the ratio remains negative due to continued losses, the improvement indicates that investment performance has strengthened compared to the previous year. The narrowing of investment losses reflects better utilization of investment resources and suggests gradual progress toward achieving positive investment returns in the future.