Birla Cotton Spinning Annual Reports, Balance Sheet and Financials

The Birla Cotton Spinning and Weaving Mills Limited Balance Sheet (Rs in Lakhs)

The Birla Cotton Spinning and Weaving Mills Limited Profit & Loss Statement (Rs in Lakhs)

 The Birla Cotton Spinning and Weaving Mills Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

In the Operating Activities section, the company 's Net Profit before Exceptional Items and Tax was Rs. 446.20 Lakhs in 2023-24, which was slightly lower than Rs. 450.60 Lakhs in 2022-23. The cash flow from operations is adjusted for non-cash items like Depreciation, which remained unchanged at Rs. 0.72 Lakhs across both years.

However, there were significant adjustments for items related to investments:

Dividend Income was Rs. 111.89 Lakhs in 2023-24, higher than Rs. 69.79 Lakhs in the previous year.

The Net Gain on Fair Value Changes was a loss of Rs. 213.29 Lakhs in 2023-24, up from a loss of Rs. 75.85 Lakhs in 2022-23, indicating changes in the fair value of investments.

A Loss on Sale of Investments of Rs. 2.76 Lakhs in 2023-24, compared to Rs. 34.40 Lakhs in 2022-23, also affected cash flow.

Other non-cash adjustments include Interest Income (which was Rs. 147.76 Lakhs in 2023-24 and Rs. 141.05 Lakhs in 2022-23). These adjustments lead to an Operating Profit Before Working Capital Changes, which was a negative Rs. 28.78 Lakhs in 2023-24, a significant decline from a positive Rs. 130.23 Lakhs in 2022-23.

In terms of working capital:

Financial Assets decreased by Rs. 3.28 Lakhs in 2023-24 compared to an increase of Rs. 566.72 Lakhs in 2022-23.

Other Financial Assets showed a decrease of Rs. 5.88 Lakhs in 2023-24.

Other Non-Financial Assets had a small change of Rs. 1.39 Lakhs in 2023-24, which was an increase compared to a negative change of Rs. 0.31 Lakhs in 2022-23.

There was an increase of Rs. 61.83 Lakhs in Other Financial Liabilities in 2023-24, a significant rise compared to just Rs. 2.40 Lakhs in 2022-23.

Provisions increased slightly by Rs. 0.35 Lakhs in 2023-24, compared to Rs. 0.97 Lakhs in 2022-23.

After accounting for these changes in working capital, the Cash Generated from Operations was Rs. 31.71 Lakhs in 2023-24, a sharp decline from Rs. 702.21 Lakhs in the previous year. When Income Tax paid (Net of refund) is accounted for, the Net Cash from Operating Activities turned negative at Rs. -45.52 Lakhs in 2023-24, compared to a positive cash inflow of Rs. 624.51 Lakhs in 2022-23.

Cash Flow from Investing Activities

In the Investing Activities section, the company received significant cash inflows:

Dividend Income of Rs. 111.89 Lakhs in 2023-24, a notable increase from Rs. 69.79 Lakhs in 2022-23.

Interest Income also contributed Rs. 147.76 Lakhs in 2023-24, compared to Rs. 141.05 Lakhs in the previous year.

The company made changes to its investment portfolio:

Fixed Deposits (placed) / redeemed led to an outflow of Rs. 20.00 Lakhs in 2023-24, compared to a small inflow of Rs. 2.99 Lakhs in 2022-23.

The company purchased/sold Investments, with an outflow of Rs. 213.29 Lakhs in 2023-24, compared to Rs. 75.85 Lakhs in 2022-23.

Despite these cash outflows, the overall Net Cash from Investing Activities in 2023-24 was a positive Rs. 455.70 Lakhs, an increase from Rs. 324.08 Lakhs in 2022-23.

Net Increase in Cash and Cash Equivalents

The combined effect of the operating and investing activities resulted in a Net Increase in Cash and Cash Equivalents of Rs. 410.18 Lakhs in 2023-24, compared to Rs. 948.59 Lakhs in 2022-23. This indicates that, despite the negative cash flow from operating activities, the company had a net inflow due to strong investing activity and cash reserves.

Cash and Cash Equivalents (Opening and Closing Balance)

The Opening Cash and Cash Equivalents for 2023-24 stood at Rs. 2,833.05 Lakhs, up from Rs. 1,884.46 Lakhs in 2022-23.

The Closing Cash and Cash Equivalents were Rs. 3,243.23 Lakhs in 2023-24, compared to Rs. 2,833.05 Lakhs in 2022-23, reflecting the net increase during the year.

Financial Ratios of The Birla Cotton Spinning and Weaving Mills Limited

Here is a summary of the financial and operational metrics for The Birla Cotton Spinning and Weaving Mills Limited for the year 2024 and 2023:

Current Ratio (in times)

2023-24: 38.17

2022-23: 106.43

The Current Ratio is a measure of a company 's ability to meet its short-term liabilities with its short-term assets. A higher ratio indicates better liquidity, meaning the company can easily cover its current obligations. In this case, the dramatic drop from 106.43 in 2022-23 to 38.17 in 2023-24 is concerning, suggesting that while the company may have had an unusually large volume of current assets in 2022-23.

Return on Equity (ROE) Ratio (in %)

2023-24: 4.09%

2022-23: 4.65%

The Return on Equity (ROE) ratio measures a company’s ability to generate profits from its shareholders ' equity. A higher ROE indicates more efficient use of equity capital. In 2023-24, the ROE declined to 4.09% from 4.65% in the previous year. Although still positive, the decrease suggests that the company’s profitability has slightly reduced relative to the equity capital invested by shareholders.

Trade Receivables Turnover Ratio (in times)

2023-24: 1.18

2022-23: 1.14

The Trade Receivables Turnover Ratio measures how efficiently a company collects its receivables or how quickly it converts credit sales into cash. The ratio indicates the number of times the company collects its average receivables in a year. A higher ratio is favorable, showing better efficiency in collecting outstanding payments. In this case, the ratio has improved slightly from 1.14 to 1.18, indicating marginally better collection efficiency in 2023-24.

Net Capital Turnover Ratio (in times)

2023-24: 0.21

2022-23: 0.20

The Net Capital Turnover Ratio measures how efficiently a company uses its capital (i.e., equity and long-term debt) to generate revenue. A higher ratio means the company is generating more revenue per unit of capital. In 2023-24, the ratio has slightly improved to 0.21 times, from 0.20 in 2022-23.

Net Profit Ratio (in %)

2023-24: 50.00%

2022-23: 64.00%

The Net Profit Ratio is a measure of profitability, calculated as net profit divided by revenue. It shows what percentage of revenue remains as profit after all expenses. A higher ratio indicates greater profitability. In 2023-24, the net profit margin has dropped significantly to 50% from 64% in 2022-23.

Return on Capital Employed (ROCE) Ratio (in %)

2023-24: 4.90%

2022-23: 6.22%

The Return on Capital Employed (ROCE) measures the company’s ability to generate profits from its capital (equity + long-term debt). A higher ROCE indicates more efficient use of capital in generating earnings before interest and taxes (EBIT). In 2023-24, the ROCE has decreased to 4.90%, down from 6.22% in 2022-23.

Return on Investment (ROI) Ratio (in %)

2023-24: 5.42%

2022-23: 5.81%

The Return on Investment (ROI) ratio indicates the profitability generated from the company 's investments (including assets and capital). A higher ROI means that the company is generating better returns relative to its investments. The ROI has slightly declined from 5.81% in 2022-23 to 5.42% in 2023-24.