SSF Limited Annual Reports, Balance Sheet and Financials

 SSF Limited Standalone Balance Sheet (Rs in Crores)

SSF Limited Standalone Profit & Loss Statement (Rs in Crores)

SSF Limited Standalone Cash Flow Statement (Rs in Crores) 

Summary of cash flow statement for the year 2025 and 2024:

Cash Flow from Operating Activities

SSF Limited reported a negative operating cash flow of ₹1.72 crore in FY 2024–25, though it improved from a larger outflow of ₹4.12 crore in the previous year. The company generated a modest profit before tax of ₹0.43 crore, supported by non-cash expenses like depreciation and finance costs. However, the major drag came from working capital changes, particularly a significant increase in inventories and trade receivables, which locked up cash. Although trade payables increased and provided some relief, overall operations failed to generate positive cash, indicating weak cash conversion and inefficiencies in managing short-term assets and liabilities.

Cash Flow from Investing Activities

The company recorded a slight positive cash flow of ₹0.03 crore from investing activities, compared to a negative outflow of ₹1.56 crore in FY 2023–24. This improvement was mainly due to sale proceeds from property, plant, and equipment nearly matching new purchases. Unlike the previous year, which involved higher capital expenditure, FY25 reflects a reduced investment phase. While this helped conserve cash in the short term, it may also suggest limited expansion or growth initiatives, which could impact future performance.

Cash Flow from Financing Activities

Financing activities generated an inflow of ₹1.91 crore, lower than ₹3.74 crore in the previous year. The company primarily relied on short-term borrowings (₹2.50 crore) to support its liquidity needs. At the same time, it incurred finance costs of ₹0.58 crore, reflecting the burden of debt. This indicates that the company is dependent on external financing to compensate for weak operational cash flows, which may not be sustainable in the long run if operating performance does not improve.

Net Increase/Decrease in Cash

Overall, SSF Limited recorded a net increase in cash of ₹0.23 crore, compared to a significant decrease of ₹1.94 crore in FY 2023–24. This improvement is mainly due to financing inflows rather than operational strength. The closing cash balance rose to ₹0.57 crore, indicating a slight improvement in liquidity, but still reflecting a relatively tight cash position.

Financial ratios of SSF Limited

Summary of financial ratios for the year 2025 and 2024 :

Current Ratio

The current ratio declined from 1.83 in FY 2023–24 to 1.58 in FY 2024–25, indicating a slight weakening in short-term liquidity. Although the ratio is still above the ideal benchmark of 1, showing that current assets exceed current liabilities, the decrease suggests that the company’s ability to meet short-term obligations has reduced, possibly due to higher working capital requirements.

Debt-Equity Ratio

The debt-equity ratio increased from 0.24 to 0.38, reflecting a rise in financial leverage. This means the company is using more borrowed funds relative to shareholders’ equity. While the ratio is still moderate, the upward trend indicates increasing dependence on debt, which could raise financial risk if not managed carefully.

Debt Service Coverage Ratio

The DSCR declined from 0.34 to 0.26, indicating a weaker capacity to service debt obligations. A ratio below 1 is a concern, as it shows that operating earnings are insufficient to cover debt repayments and interest, highlighting potential solvency issues.

Return on Equity

ROE decreased from 2.60% to 1.36%, showing that the company is generating lower returns for its shareholders. This decline reflects reduced profitability and efficiency in utilizing shareholders’ funds.

Inventory Turnover Ratio

The inventory turnover ratio improved from 5.77 to 7.06, indicating better inventory management and faster stock movement. This suggests that the company is more efficient in converting inventory into sales, which is a positive sign for operational performance.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio increased from 6.69 to 7.20, reflecting improved efficiency in collecting receivables. This indicates faster cash inflow from customers and better credit management.

Trade Payables Turnover Ratio

The trade payables turnover ratio rose from 12.07 to 14.22, meaning the company is paying its suppliers more quickly. While this may improve supplier relationships, it could also put pressure on cash flows if payments are made too rapidly without sufficient inflows.

Net Capital Turnover Ratio

The net capital turnover ratio improved significantly from 5.07 to 7.92, indicating more efficient utilization of capital to generate revenue. This reflects better operational efficiency and higher sales relative to capital employed.

Net Profit Ratio

The net profit ratio declined sharply from 1.62% to 0.50%, showing a significant drop in overall profitability. This indicates that the company is earning less profit per unit of sales, which is a key concern.

Return on Capital Employed

ROCE decreased slightly from 6.07% to 5.65%, indicating a marginal decline in overall efficiency of capital usage. Although the drop is not very large, it still reflects reduced effectiveness in generating returns from total capital employed.