Tarangini Investment Ltd Annual Report, Financials, Balance Sheet

Tarangini Investment Limited Standalone Balance Sheet (Rs In Hundred)

 Tarangini Investment Limited Standalone Profit & Loss Statement (Rs In Hundred)

 Tarangini Investment Limited Standalone Cash Flow Statement (Rs In Hundred)

Cash Flow Analysis of Tarangini Investments Limited

The cash flow performance of Tarangini Investments Limited reflects a year of operational stress and cash erosion during FY 2024–25, following a comparatively stable position in the previous year. The analysis of operating activities indicates that the company incurred a net loss before tax of ₹1,25,936.17 (hundreds) in FY 2025, as against a profit of ₹3,564.19 (hundreds) in FY 2024. This sharp reversal highlights a significant deterioration in core business performance.

After accounting for non-cash expenses, primarily depreciation of ₹4.28 (hundreds), the operating loss before working capital changes stood at ₹1,25,931.89 (hundreds) in FY 2025, compared to a positive ₹3,715.92 (hundreds) in the previous year. This indicates that operational inefficiencies, rather than accounting adjustments, were the primary contributors to the decline.

Working capital movements provided partial relief during FY 2025. A reduction in current assets amounting to ₹1,22,452.87 (hundreds) suggests liquidation or recovery of short-term assets, which helped generate cash. However, this benefit was offset by a decrease in current liabilities of ₹801.29 (hundreds), indicating repayment of obligations. As a result, the company reported negative cash generated from operations of ₹4,280.31 (hundreds), although this represents a substantial improvement over the cash outflow of ₹20,757.21 (hundreds) recorded in FY 2024.

There was no income tax paid during either year, consistent with the loss position and limited taxable income. Consequently, the net cash flow from operating activities remained negative at ₹4,280.31 (hundreds) for FY 2025.

Due to the absence of investing and financing activities, the operational cash deficit directly impacted overall liquidity. The net decrease in cash and cash equivalents during FY 2025 amounted to ₹4,280.31 (hundreds). Cash and cash equivalents declined from ₹6,400.55 (hundreds) at the beginning of the year to ₹2,120.25 (hundreds) at year-end, indicating continued pressure on short-term liquidity.

An examination of the composition of cash balances shows that cash in hand increased to ₹3,167.07 (hundreds), while balances with scheduled banks in current accounts turned negative at ₹1,134.79 (hundreds), reflecting overdraft usage or timing mismatches. Fixed deposits declined sharply to ₹87.97 (hundreds) from ₹4,040.99 (hundreds) in the previous year, suggesting withdrawal of term deposits to support liquidity needs.

Overall, the cash flow statement of Tarangini Investments Limited indicates weak operating cash generation, reliance on working capital adjustments, and declining liquidity reserves during FY 2025. While the reduction in operational cash outflow compared to the previous year offers limited comfort, the company’s cash position remains vulnerable and underscores the need for operational turnaround and sustainable cash inflows to strengthen financial stability.

Below are the Financial Ratios

2.Debt–Equity Ratio: Declined from 0.005 to 0.004, showing negligible dependence on debt and a highly conservative capital structure.

3.Return on Equity (ROE): Fell from 0.81 to –0.67, indicating losses in 2025 and poor returns to shareholders.

4.Trade Receivable Turnover Ratio: Dropped from 628.77 to 176.68, suggesting slower collection from debtors and weaker receivables management.

5.Net Capital Turnover Ratio: Improved from 11.53 to 21.33, reflecting better utilization of working capital in generating revenue.

6.Net Profit Ratio: Declined sharply from 7.04% to –313.84%, showing heavy losses and major deterioration in profitability.

7.Return on Capital Employed (ROCE): Decreased from 0.81 to –0.67, indicating inefficient use of capital and operational losses.

8.Return on Investment (ROI): Reduced from 0.81 to –0.67, reflecting negative returns on investments during 2025.