Supreme Paper Mill Annual Reports, Balance Sheet and Financials

Supreme Paper Mills Limited Balance Sheet (Rs in Thousand)

Particulars	31-03-2024	31-03-2023
Shareholders ' Funds
Share Capital	1,15,284.00	1,15,284.00
Reserves & Surplus	1,62,974.23	1,33,824.86
Non-Current Liabilities
Long-term Borrowings	2,50,706.49	2,48,320.23
Other Long-term Liabilities	20,981.42	22,000.00
Long-term Provisions	709.85	2,522.40
Current Liabilities
Short-term Borrowings	2,14,917.80	1,68,541.07
Trade Payables	1,33,100.31	93,816.48
Other Current Liabilities	45,785.40	58,088.54
Short-term Provision	1,500.00	1,200.00
Total	9,45,959.50	8,43,597.58
Non-Current Assets
Property, Plant & Equipment	3,67,189.96	3,18,930.42
Capital Work-in-Progress	63,582.00	59,847.63
Non-Current Investments	38.50	38.50
Other Non-Current Assets	1,552.63	1,552.63
Current Assets
Inventories	2,95,357.06	2,64,436.54
Trade Receivables	1,37,186.71	1,25,258.65
Cash & Cash Equivalents	9,097.45	8,629.54
Short-term Loans & Advances	71,955.15	64,905.16
Total	9,45,959.50	8,43,597.58

Supreme Paper Mills Limited Profit & Loss Statement (Rs in Thousand)

Particulars	31-03-2024	31-03-2023
REVENUE FROM OPERATIONS	10,27,120.88	10,14,265.93
Other Income	6,738.77	593.12
TOTAL INCOME	10,33,859.66	10,14,859.05
EXPENSES
Cost of Materials Consumed	6,58,133.82	5,52,501.63
Changes in Inventories	-20,528.37	-1,002.33
Employees ' Benefit Expenses	65,760.89	59,361.32
Finance Cost	37,953.74	36,199.79
Depreciation & Amortisation	17,407.70	16,588.52
Other Expenses	2,40,508.55	2,69,863.93
TOTAL EXPENSES	9,99,236.33	9,33,512.86
PROFIT/(LOSS)	34,623.33	81,346.99
Prior Period Items - (Credit)/Debit	-5,473.96	-940.49
PROFIT/(LOSS) FOR THE YEAR	29,149.37	80,406.70
EARNINGS PER SHARE (Basic)	2.53	6.97

Supreme Paper Mills Limited Consolidated Cash Flow Statement (Rs in Thousand)

Particulars	31-03-2024	31-03-2023
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit / (Loss) before Tax & Extraordinary Items	29,149.37	80,406.47
Adjustments:
Depreciation	17,407.70	16,588.52
Prior Period Adjustments	5,473.96	940.49
Operating Profit before Working Capital Changes	52,031.03	97,935.48
Adjustments For:
Interest Paid	37,953.74	36,199.79
Interest Received	-	-42.97
(Increase) / Decrease in Inventories	-30,920.52	-19,265.94
(Increase) / Decrease in Trade & Others Assets	-18,978.04	-35,362.27
Increase / (Decrease) in Current Liabilities	73,656.11	35,151.99
Increase / (Decrease) in Non-Current Assets	61,711.29	16,680.60
Increase / (Decrease) in Working Capital
Cash Generated From Operations	1,13,742.31	1,14,616.08
Less:
Interest Paid	-37,953.74	-36,199.79
Prior Period Adjustments	-5,473.96	-940.49
Net Cash Flow from Operating Activities	70,314.62	77,475.80
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets	-66,406.69	-19,557.03
Interest Received	1,924.05	42.97
Sale of Fixed Assets
Adjustment of Capital WIP	-3,734.37	-33,555.84
Net Cash Flow from Investing Activities	-68,217.01	-53,069.90
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Long Term Borrowings	1,629.27	-22,629.77
Net Cash Flow from Financing Activities	-1,629.27	-22,629.77
Net Cash Flow	468.34	1,776.12
Add: Cash & Cash Equivalent at 01/04/2023	8,629.11	6,852.99
Cash & Cash Equivalent at 31/03/2024	9,097.45	8,629.11

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

Net Profit / (Loss) before Tax & Extraordinary Items

31-03-2024: Rs. 29,149.37

31-03-2023: Rs. 80,406.47

The company’s net profit before tax decreased significantly from Rs. 80,406.47 to Rs. 29,149.37, indicating lower profitability in 2023-2024. This could be due to reduced revenue or increased expenses.

Adjustments:

Depreciation:

31-03-2024: Rs. 17,407.70

31-03-2023: Rs. 16,588.52

Depreciation increased slightly over the year, signifying a higher allocation of costs to asset wear and tear, possibly due to additions to the company 's fixed assets.

Prior Period Adjustments:

31-03-2024: Rs. 5,473.96

31-03-2023: Rs. 940.49

Prior period adjustments represent corrections for previously misstated expenses or revenues. There was a notable increase in these adjustments for the year 2023-2024.

Operating Profit before Working Capital Changes

31-03-2024: Rs. 52,031.03

31-03-2023: Rs. 97,935.48

The operating profit before accounting for working capital changes dropped sharply by about 47%, showing a weaker operational performance.

Adjustments for Working Capital Changes:

Interest Paid:

31-03-2024: Rs. 37,953.74

31-03-2023: Rs. 36,199.79

The interest paid increased slightly, indicating that the company paid more in interest, possibly due to higher borrowings or increased interest rates.

Interest Received:

31-03-2024: Rs. -

31-03-2023: Rs. -42.97

In 2023-2024, there was no recorded interest income, whereas in the previous year, a small amount of interest was received.

(Increase) / Decrease in Inventories:

31-03-2024: Rs. -30,920.52

31-03-2023: Rs. -19,265.94

The company increased its inventory by a larger amount in 2023-2024, suggesting it might be preparing for future demand or experiencing slower inventory turnover.

(Increase) / Decrease in Trade & Other Assets:

31-03-2024: Rs. -18,978.04

31-03-2023: Rs. -35,362.27

The decrease in trade and other assets slowed down in 2023-2024 compared to the previous year, indicating less capital tied up in receivables or other current assets.

Increase / (Decrease) in Current Liabilities:

31-03-2024: Rs. 73,656.11

31-03-2023: Rs. 35,151.99

The significant rise in current liabilities means the company incurred more short-term obligations, which may have supported its working capital needs.

Increase / (Decrease) in Non-Current Assets:

31-03-2024: Rs. 61,711.29

31-03-2023: Rs. 16,680.60

There was a notable increase in non-current assets in 2023-2024, indicating significant investments in long-term assets, perhaps to support future business growth.

Cash Generated from Operations

31-03-2024: Rs. 1,13,742.31

31-03-2023: Rs. 1,14,616.08

Despite fluctuations in profits and working capital, cash generated from operations remained relatively stable between the two years, showing that the company 's core business still generates adequate cash flow.

Less: Interest Paid and Prior Period Adjustments

Interest Paid:

31-03-2024: Rs. -37,953.74

31-03-2023: Rs. -36,199.79

The company paid more interest in 2023-2024, which could be due to higher debt or increased borrowing costs.

Prior Period Adjustments:

31-03-2024: Rs. -5,473.96

31-03-2023: Rs. -940.49

As mentioned earlier, the increase in prior period adjustments in 2023-2024 indicates more corrections for past transactions.

Net Cash Flow from Operating Activities

31-03-2024: Rs. 70,314.62

31-03-2023: Rs. 77,475.80

The net cash flow from operating activities decreased slightly in 2023-2024, reflecting the drop in profitability.

Cash Flow from Investing Activities:

Purchase of Fixed Assets:

31-03-2024: Rs. -66,406.69

31-03-2023: Rs. -19,557.03

The company invested much more in fixed assets in 2023-2024, indicating significant capital expenditure, perhaps on expansion or modernization.

Interest Received:

31-03-2024: Rs. 1,924.05

31-03-2023: Rs. 42.97

Interest income rebounded slightly in 2023-2024, likely from interest-earning investments or deposits.

Adjustment of Capital WIP (Work in Progress):

31-03-2024: Rs. -3,734.37

31-03-2023: Rs. -33,555.84

There was a smaller adjustment in capital work in progress, implying that fewer investments were incomplete compared to the previous year.

Net Cash Flow from Investing Activities:

31-03-2024: Rs. -68,217.01

31-03-2023: Rs. -53,069.90

Cash outflow from investing activities increased, suggesting a greater focus on capital investment in 2023-2024.

Cash Flow from Financing Activities:

Proceeds from Long Term Borrowings:

31-03-2024: Rs. 1,629.27

31-03-2023: Rs. -22,629.77

In 2023-2024, the company raised some long-term borrowings, whereas the previous year saw repayment or reduction in borrowings.

Net Cash Flow from Financing Activities:

31-03-2024: Rs. -1,629.27

31-03-2023: Rs. -22,629.77

The cash outflow from financing activities decreased in 2023-2024, mainly due to lower repayments or new borrowings.

Net Cash Flow

31-03-2024: Rs. 468.34

31-03-2023: Rs. 1,776.12

The overall net cash flow for 2023-2024 was positive but much lower than the previous year, showing reduced cash generation from combined operating, investing, and financing activities.

Cash & Cash Equivalent at 01/04/2023

31-03-2024: Rs. 8,629.11

31-03-2023: Rs. 6,852.99

The company started the year with a higher cash balance compared to the previous year.

Cash & Cash Equivalent at 31/03/2024

31-03-2024: Rs. 9,097.45

31-03-2023: Rs. 8,629.11

By the end of 2023-2024, the company 's cash reserves increased marginally, indicating that despite increased capital investment, it maintained a healthy cash position.

Financial Ratios of Supreme Paper Mills Limited

Particulars	2024	2023
Current Ratio	1.3	1.44
Debt – Equity Ratio	1.67	1.67
Debt Service Coverage Ratio	-3.2	-7.9
Return on Equity Ratio	25.28	69.75
Inventory Turnover ratio	0.27	0.25
Trade receivables turnover ratio	0.13	0.12
Trade payables turnover ratio	0.17	0.27
Net capital turnover ratio	4.18	5.02
Net Profit Ratio	2.84	7.93
Return on capital employed	9.74	17.62

Here is a summary of the financial and operational metrics for Supreme Paper Mills Limited for the years 2024 and 2023:

Current Ratio

2024: 1.3

2023: 1.44

Interpretation: The current ratio measures the company 's ability to pay its short-term obligations with its current assets. A decrease from 1.44 to 1.3 indicates a slight decline in liquidity, suggesting that the company has fewer liquid assets available to cover its short-term liabilities. However, a ratio above 1 is still considered safe, meaning the company can cover its immediate obligations.

Debt-Equity Ratio

2024: 1.67

2023: 1.67

Interpretation: This ratio remained constant, indicating that the company 's financial leverage is stable. A debt-equity ratio of 1.67 means the company relies heavily on debt to finance its operations, but there has been no change in its capital structure year-on-year.

Debt Service Coverage Ratio (DSCR)

2024: -3.2

2023: -7.9

Interpretation: The DSCR reflects the company 's ability to service its debt with its net operating income. A negative DSCR indicates that the company is unable to cover its debt obligations from its earnings. Although the ratio improved from -7.9 to -3.2, the negative figure is a red flag, showing that the company is still struggling to generate enough earnings to cover its debt repayments.

Return on Equity (ROE)

2024: 25.28%

2023: 69.75%

Interpretation: ROE measures the profitability relative to shareholders ' equity. The significant decline from 69.75% to 25.28% suggests a sharp decrease in profitability. The lower return in 2024 may be due to declining net profits or increased equity. While 25.28% is still a healthy figure, the company’s ability to generate returns for shareholders has weakened.

Inventory Turnover Ratio

2024: 0.27

2023: 0.25

Interpretation: The inventory turnover ratio measures how efficiently the company is managing its stock. An increase from 0.25 to 0.27 indicates a slight improvement in inventory management, suggesting the company is selling and replacing its inventory more efficiently in 2024.

Trade Receivables Turnover Ratio

2024: 0.13

2023: 0.12

Interpretation: This ratio measures how quickly the company is able to collect payments from its customers. The increase from 0.12 to 0.13 is a positive sign, suggesting that the company is collecting its receivables a bit faster in 2024 compared to 2023, improving cash flow management.

Trade Payables Turnover Ratio

2024: 0.17

2023: 0.27

Interpretation: This ratio reflects how quickly the company pays its suppliers. The sharp decrease from 0.27 to 0.17 indicates that the company is taking longer to pay its trade payables in 2024, which could be a strategy to manage cash flow or a sign of financial stress.

Net Capital Turnover Ratio

2024: 4.18

2023: 5.02

Interpretation: The net capital turnover ratio measures the efficiency with which the company uses its working capital to generate sales. The decrease from 5.02 to 4.18 indicates a decline in how efficiently the company is using its capital to generate revenue, suggesting it is taking more capital to produce the same level of sales in 2024 compared to 2023.

Net Profit Ratio

2024: 2.84%

2023: 7.93%

Interpretation: The net profit ratio measures the company’s profitability as a percentage of total revenue. A sharp decline from 7.93% to 2.84% highlights a significant reduction in profitability, indicating that the company is earning less from each rupee of sales. This could be due to higher costs or lower revenues in 2024.

Return on Capital Employed (ROCE)

2024: 9.74%

2023: 17.62%

Interpretation: ROCE measures the company’s ability to generate profit from the capital employed in the business. The decrease from 17.62% to 9.74% shows a reduction in the company’s efficiency in generating returns from its capital base, which could be due to lower profitability or higher capital employed in 2024.