Thalappakatti Hotels Annual Reports, Balance Sheet and Financials

Thalappakatti Hotels Private Limited Standalone Balance Sheet (Rs. In Millions)

Particular	31-03-2025	31-03-2024
Shareholder’s funds
Share capital	99.34	99.34
Reserves and surplus	525.74	1,023.64
Non- Current liabilities
Long-term liabilities	42.01	86.01
Other long-term liabilities	70.97	74.30
Long-term provisions	25.28	18.46
Current liabilities
Short-term provision	264.06	337.36
Total outstanding dues of micro enterprises and small enterprises	66.79	32.58
Total outstanding dues of creditor other than micro enterprises and small enterprises	273.47	253.80
Other current liabilities	186.92	135.65
Short-term-provisions	17.08	19.15
Total Equity & Liabilities	1,571.66	2,080.65
Non-current assets
Property, plants and equipment	589.94	574.35
Intangible assets	9.81	10.99
Capital work-in-progress	14.63	7.65
Non-current investments	83.13	664.02
Deferred tax assets (net)	160.64	222.76
Long-term loans and advances	48.62	23.10
Other non-current assets	258.97	232.95
Current liabilities
Inventories	54.54	42.77
Trade receivables	23.37	0.40
Cash and bank balances	198.48	203.13
Short-term loans and advances	35.37	23.83
Other current assets	94.16	74.70
Total Assets	1,571.66	2,080.65

Thalappakatti Hotels Private Limited Standalone Profit & Loss (Rs. In Millions)

Particulars	31-03-2025	31-03-2024
Revenue from operations	4,061.67	3,403.38
Other Income	54.15	77.66
Total income	4,115.82	3,481.04
Expenses
Cost of materials consumed	1,721.32	1,529.98
Change in inventories of finished goods and work-in-progress	(4.48)	(2.57)
Employee benefit expense	850.34	674.85
Finance cost	43.32	49.13
Depreciation and amortization expense	146.65	152.47
Other expenses	1,223.10	1,082.59
Total expenses	3,980.25	3,486.45
Profit/(Loss) Before Tax	135.57	(5.41)
Current tax	-	-
Deferred tax	62.12	(49.43)
Net Profit/(Loss) After Tax	73.45	44.02
Earnings per equity share (in Rs.)
Basic	0.74	0.44
Diluted	0.73	0.44

Thalappakatti Hotels Private Limited Standalone Cash Flow Statement (Rs. In Millions)

Particular	31-03-2025	31-03-2024
Cash Flow From Operating Activities
Profit/(Loss) before tax	135.57	(5.41)
Adjustments for:
Depreciation and amortisation expense	146.65	152.47
Loss/(Profit) on sale of property, plants, and equipment’s	(1.09)	(0.52)
Provision for deposit written off	1.77	0.63
Employee stock option compensation cost	-	1.80
Interest income	(16.09)	(11.72)
Finance costs	43.32	49.13
Share of profit from LLP	(6.73)	(27.29)
Dividend income	-	(34.05)
Liabilities no longer required written back	(24.92)	-
Operating Profit/(Loss) before Working Capital Changes	278.48	125.04
Adjustments for:
Change in inventories	(11.77)	26.71
Change in trade receivables	(43.23)	2.24
Change in short term loans and advances	(8.45)	0.59
Change in other current assets	(21.60)	(32.51)
Change in long term loans and advances	(0.30)	(0.21)
Change in other non-current assets	(30.00)	(36.54)
Change in long term liabilities	(3.33)	6.88
Change in trade payables	52.91	9.70
Change in provisions	31.07	2.85
Change in other current liabilities	73.21	(3.06)
Cash generated from/(used in) operations	316.99	101.69
Income tax (paid)/refund received, net	(1.33)	(6.46)
Net Cash generating from/(used in) Operating Activities	315.66	95.23
Cash Flow From Investing Activities
Payment made for acquisition of Property, plant and equipment’s and intangibles assets	(181.04)	(90.74)
Proceeds from sale of property, plant and equipment	1.45	(0.86)
Investment in subsidiaries	-	-
Recognition of cash and cash equivalents on account of merger	11.80	-
Investment in subsidiaries on account of merger	(6.73)	-
Receipt of share of profit from LLP	-	27.29
Loans recovered / (given) to subsidiaries	-	2.67
Decrease in fixed deposit accounts	1.38	2.45
Interest received	15.22	11.53
Dividend income	-	34.05
Net Cash Flow used in Investing Activities	(157.92)	(13.61)
Cash Flow From Financing Activities
Repayment of long term borrowings	(62.90)	(35.98)
Proceeds from long term borrowings	-	75.00
Repayment of short term borrowings	(30.00)	-
Interest paid	(43.71)	(48.68)
Net Cash flow (used in) / generated from financing activities	(136.61)	(9.66)
Net Increase/(Decrease) in Cash and Cash Equivalents	21.13	71.96
Opening balance of cash and cash equivalents	(226.00)	(297.96)
Closing balance of cash and cash equivalents	(204.87)	(226.00)

Summary of the Cash Flow Statement for the years 2025 and 2024

Cash Flow from Operating Activities

In FY 2025, the company’s cash flow from operations improved significantly. Profit before tax was 135.57 million rupees, compared to a small loss of 5.41 million rupees in FY 2024. After adding back non-cash expenses such as depreciation of 146.65 million rupees and finance costs of 43.32 million rupees, and adjusting for income items like interest income of 16.09 million rupees and share of profit from LLP of 6.73 million rupees, the operating profit before working capital changes stood at 278.48 million rupees, more than double the 125.04 million rupees reported in FY 2024. Working capital changes also had a positive impact, with increases in trade payables (52.91 million rupees) and other current liabilities (73.21 million rupees) supporting cash inflow, though higher trade receivables (43.23 million rupees) and other assets (21.60 million rupees) consumed cash. Overall, cash generated from operations rose sharply to 316.99 million rupees from 101.69 million rupees a year earlier. After income tax payments of 1.33 million rupees, the company reported a net operating cash inflow of 315.66 million rupees in FY 2025, compared to 95.23 million rupees in FY 2024. This shows a strong turnaround in operational performance and better cash efficiency.

Cash Flow from Investing Activities

During FY 2025, the company made higher capital investments compared to the previous year. Payments for acquisition of property, plant, and equipment amounted to 181.04 million rupees, nearly double the 90.74 million rupees spent in FY 2024. Proceeds from sale of assets were small at 1.45 million rupees, while cash recognized from a merger added 11.80 million rupees. On the other hand, an investment of 6.73 million rupees was made in subsidiaries due to the merger. Interest received increased to 15.22 million rupees, but unlike FY 2024, no dividend income was earned this year. As a result, the company recorded a net cash outflow of 157.92 million rupees from investing activities in FY 2025, much higher than the outflow of 13.61 million rupees in FY 2024. This indicates that the company directed a larger portion of its resources towards capital expenditure and expansion.

Cash Flow from Financing Activities

In FY 2025, financing activities led to a larger cash outflow compared to the previous year. The company repaid long-term borrowings worth 62.90 million rupees and short-term borrowings of 30 million rupees, while no new borrowings were raised, unlike FY 2024 where fresh borrowings of 75 million rupees were taken. Interest payments during the year were 43.71 million rupees, slightly lower than 48.68 million rupees in FY 2024. Overall, financing activities resulted in a net outflow of 136.61 million rupees in FY 2025, compared to just 9.66 million rupees in FY 2024. This reflects a shift in focus towards reducing debt obligations rather than raising new funds.

Net Movement in Cash and Closing Balance

Combining all activities, the company recorded a small net increase in cash of 21.13 million rupees in FY 2025, lower than the increase of 71.96 million rupees in FY 2024. The opening balance of cash and cash equivalents was negative at 226.00 million rupees and closed at 204.87 million rupees negative, showing some improvement but still indicating a deficit position. This means while the company’s operating cash generation is strong, heavy investments and loan repayments are keeping overall cash balances in negative territory.

Thalappakatti Hotels Private Limited Financial Ratios

Particular	31-03-2025	31-03-2024
Current Ratio	0.50	0.44
Debt Equity Ratio	0.49	0.38
Debt Service Coverage Ratio	1.93	2.90
Return on Equity Ratio	0.08	0.04
Inventory Turnover Ratio	35.29	27.21
Trade receivable Turnover Ratio	341.75	2,239.07
Trade Payable Turnover Ratio	9.42	9.17
Net Capital Turnover Ratio	(9.71)	(7.00)
Net Profit Ratio	0.02	0.01
Return on Capital Employed Ratio	0.27	0.04
Return on Investments	0.06	0.05

Summary of the financial ratio for the years 2025 and 2024

Current Ratio

The current ratio improved slightly to 0.50 in FY 2025 from 0.44 in FY 2024. This means the company still does not have enough short-term assets to fully cover its short-term liabilities, but the position is getting better. Ideally, a ratio above 1 is considered comfortable, so the company still needs to strengthen its liquidity.

Debt-Equity Ratio

The debt-equity ratio increased to 0.49 in FY 2025 from 0.38 in FY 2024. This shows that the company is relying a bit more on borrowed funds compared to shareholders’ equity. The ratio is still moderate and not very high, but the increase indicates rising dependence on debt financing.

Debt Service Coverage Ratio

The DSCR declined to 1.93 in FY 2025 from 2.90 in FY 2024. This ratio shows how easily the company can pay its interest and principal obligations from earnings. A ratio above 1 means obligations can be met, but the fall suggests that repayment ability has weakened compared to last year, though it is still at a safe level.

Return on Equity

ROE improved to 0.08 in FY 2025 from 0.04 in FY 2024. This indicates that the company generated 8% return on shareholders’ equity this year compared to only 4% last year. The rise is positive and shows that shareholders’ funds are being used more efficiently to generate profits.

Inventory Turnover Ratio

The inventory turnover ratio rose to 35.29 times in FY 2025 from 27.21 times in FY 2024. This means the company is selling and replacing its inventory more quickly, which is a good sign of efficiency and better demand management.

Trade Receivable Turnover Ratio

The trade receivable turnover ratio dropped sharply to 341.75 times in FY 2025 from a very high 2,239.07 times in FY 2024. While both numbers show receivables are collected very quickly, the big drop suggests some slowdown in collections compared to last year. However, the ratio is still quite high, meaning credit recovery remains strong.

Trade Payable Turnover Ratio

The trade payable turnover ratio slightly increased to 9.42 in FY 2025 from 9.17 in FY 2024. This indicates that the company is paying its suppliers at almost the same pace as last year, with only a small improvement in efficiency.

Net Capital Turnover Ratio

The net capital turnover ratio was negative at (9.71) in FY 2025, compared to (7.00) in FY 2024. A negative ratio indicates that working capital is negative, meaning current liabilities are higher than current assets. The worsening figure shows that the company’s working capital position has become weaker.

Net Profit Ratio

The net profit ratio improved to 0.02 in FY 2025 from 0.01 in FY 2024. This means the company earned a net profit margin of 2% this year compared to 1% last year. Although the percentage is still small, the improvement shows better profitability.

Return on Capital Employed

ROCE rose sharply to 0.27 in FY 2025 from 0.04 in FY 2024. This means the company earned a 27% return on the total capital employed in the business compared to just 4% last year. This is a very strong improvement, showing capital is being used much more effectively.

Return on Investments

The return on investments increased slightly to 0.06 in FY 2025 from 0.05 in FY 2024. This indicates that investments made by the company generated a 6% return, better than the 5% return in the previous year.