Bormah Jan Annual Reports, Balance Sheet and Financials

The Bormah Jan Tea Company Limited Standalone Balance Sheet (Rs in Thousands)

The Bormah Jan Tea Company Limited Standalone Profit & Loss Statement (Rs in Thousands)

The Bormah Jan Tea Company Limited Standalone Cash Flow Statement (Rs in Thousands) 

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

Cash Flow from Operating Activities:
The company reported a strong improvement in operating performance during 2025. Net profit before tax turned positive at ₹2,604.74 thousand compared to a significant loss of ₹27,958.32 thousand in 2024. After adjusting for non-cash and financial items such as depreciation, finance costs, and interest income, operating profit before working capital changes rose to ₹29,983.18 thousand from a negative ₹4,131.45 thousand. Working capital changes showed mixed trends—inventory and loans increased (indicating higher investment), while trade payables rose substantially, supporting cash inflows. Overall, cash generated from operations increased significantly to ₹45,463.17 thousand. After accounting for taxes, net cash flow from operating activities stood at ₹49,329.60 thousand, reflecting strong operational recovery and improved cash-generating ability.

Cash Flow from Investing Activities:
The company continued to invest heavily in fixed assets, with purchases of property, plant, and equipment increasing to ₹32,095.77 thousand in 2025 from ₹18,770.58 thousand in 2024. However, inflows from interest income and sale of assets provided partial support. Despite these inflows, the company recorded a net cash outflow from investing activities (₹22,834.16 thousand), indicating ongoing capital expenditure aimed at expansion or modernization. This suggests a long-term growth strategy, although it places pressure on short-term cash resources.

Cash Flow from Financing Activities:
Financing activities showed a net cash outflow of ₹21,811.16 thousand in 2025, compared to an inflow of ₹7,264.24 thousand in 2024. The company reduced its reliance on short-term borrowings and had only a modest increase in long-term borrowings. At the same time, finance costs remained high, leading to significant cash outflows. Unlike the previous year, no dividend was paid. Overall, the company appears to be deleveraging and servicing its debt obligations, which is a positive sign for financial stability but reduces available cash.

Net Change in Cash and Cash Equivalents:
The combined effect of strong operating inflows and significant investing and financing outflows resulted in a net increase in cash of ₹1,023.01 thousand in 2025, compared to a decrease of ₹239.77 thousand in 2024. This indicates an overall improvement in liquidity position.

Financial ratios of The Bormah Jan Tea Company Limited

Summary of financial ratios for the year 2025 and 2024:

Current Ratio:
The current ratio declined slightly from 0.37 in 2024 to 0.36 in 2025, remaining well below the ideal benchmark of 1. This indicates that the company continues to face liquidity constraints and may struggle to meet its short-term obligations using current assets. The marginal decline suggests no significant improvement in working capital management.

Debt-Equity Ratio:
The debt-equity ratio decreased slightly from 1.61 to 1.59, indicating a marginal reduction in financial leverage. However, the ratio still reflects a relatively high dependence on debt financing compared to equity, which could pose long-term financial risk if not managed carefully.

Debt Service Coverage Ratio:
The DSCR improved significantly from 0.24 in 2024 to 1.75 in 2025. This indicates a strong turnaround in the company’s ability to service its debt obligations from operating income. A DSCR above 1 suggests that the company is now generating sufficient earnings to cover its debt repayments.

Return on Equity:
ROE improved drastically from -16.24% in 2024 to 0.01% in 2025. While the company has moved from heavy losses to near break-even returns for shareholders, the profitability remains extremely low, indicating that equity capital is not yet being effectively utilized to generate returns.

Inventory Turnover Ratio:
The inventory turnover ratio increased significantly from 1.78 to 6.74, indicating a major improvement in inventory management. The company is now able to sell and replace its inventory much faster, which reflects better operational efficiency and possibly improved demand or sales performance.

Trade Receivables Turnover Ratio:
This ratio dropped sharply from 4,674.91 to 1,074.36. Although still very high, the decline suggests that the company is taking relatively longer to collect receivables compared to the previous year. This could indicate a relaxation in credit policy or slower collections.

Net Capital Turnover Ratio:
The ratio worsened slightly from -1.31 to -1.41, remaining negative in both years. This indicates inefficient use of working capital, where sales are not being effectively generated relative to net capital employed. The negative value reflects underlying operational or structural inefficiencies.

Net Profit Ratio:
The net profit ratio improved significantly from -8.73% to 0.001%, indicating a shift from losses to marginal profitability. However, the profit margin remains negligible, suggesting that the company still faces challenges in controlling costs or improving revenue generation.

Return on Capital Employed:
ROCE improved from -2.12% to 0.16%, showing a transition from negative to slightly positive returns on total capital employed. While this reflects an improvement in overall efficiency, the returns are still very low and indicate limited effectiveness in utilizing capital resources.