Canara Workshops Annual Reports, Balance Sheet and Financials

The Canara Workshops Limited Balance Sheet (Rs in Hundreds)

The Canara Workshops Limited Profit & Loss Statement (Rs in Hundreds)

 The Canara Workshops Limited Cash Flow Statement (Rs in Hundreds)

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

Cash Flow from Operating Activities

2024: The year started with a loss before tax of Rs. -30,216.75 (in hundreds) but had non-cash additions such as depreciation (Rs. 21,897.78) and interest expenses (Rs. 164,428.23). Rent and other income of Rs. -166,355.26 were deducted, reducing operating loss. Key changes in working capital included a rise in trade payables (Rs. 125,047.40), long-term provisions (Rs. 9,340.22), and other current liabilities (Rs. 90,867.39). After these adjustments and interest payments of Rs. -86,710.13, the company generated a net cash inflow from operations of Rs. 34,178.16.

2023: In contrast, the prior year reported a larger operating loss before working capital changes of Rs. -201,571.95. Working capital adjustments and a substantial increase in trade receivables (Rs. 100,180.95) led to a net cash outflow from operating activities of Rs. -90,363.95.

Cash Flow from Investing Activities

2024: Cash inflows from investing activities primarily came from rent received (Rs. 166,355.26). After accounting for tangible/intangible asset purchases of Rs. -11,868.49, the net cash from investing activities stood at Rs. 154,538.10.

2023: Similarly, in 2023, the company received significant rent income (Rs. 145,013.73) and interest/dividend income (Rs. 22,230.00), leading to a net cash inflow of Rs. 107,010.27 from investing activities.

Cash Flow from Financing Activities

2024: Financing activities showed a net cash outflow of Rs. -189,045.16. The primary cash outflows were due to repayments on short-term borrowings (Rs. -95,508.39) and long-term borrowings (Rs. -15,818.67), along with interest payments (Rs. -77,718.10).

2023: Financing cash flows for the previous year included positive cash flows from short-term borrowings (Rs. 94,563.24) but overall ended with a net outflow of Rs. -35,002.67.

Net Change in Cash and Cash Equivalents

2024: With an increase in cash from operations and investments, despite financing outflows, the company saw a slight decrease of Rs. -328.90 in cash equivalents. The ending balance of cash and cash equivalents was Rs. 35,565.99.

2023: The prior year had a decrease of Rs. -18,356.35 in cash equivalents, ending with a balance of Rs. 35,894.89

Financial Ratios of The Canara Workshops Limited

Here is a summary of the financial and operational metrics for The Canara Workshops Limited for the year 2024:

Current Ratio (1)

This ratio, calculated as current assets divided by current liabilities, stands at 1, meaning the company’s current assets are equal to its current liabilities. A ratio of 1 indicates that the company is just able to meet its short-term obligations, suggesting adequate liquidity but no buffer for unexpected short-term expenses.

Debt-Equity Ratio (-5.44)

A negative debt-equity ratio here implies that the company's total liabilities exceed its equity, possibly due to accumulated losses impacting shareholder equity. This negative figure suggests high leverage relative to its equity, which could be concerning for lenders and investors as it signals potential instability in funding future operations without additional equity or profit growth.

Debt Service Coverage Ratio (0.32)

This low ratio, calculated as operating income divided by debt obligations, indicates that the company has limited earnings to cover its debt service obligations. A DSCR of less than 1 suggests the company may struggle to meet its debt payments without relying on additional financing, which could impact its creditworthiness.

Return on Equity (ROE) Ratio (0.05 or 5%)

ROE measures profitability relative to shareholder equity. At 5%, the company is generating minimal returns for shareholders, potentially due to low profit margins or high debt levels. This low figure could imply underperformance or inefficiency in generating returns on invested equity.

Inventory Turnover Ratio (0.94)

This ratio, which measures how often inventory is sold and replaced, is below 1, indicating slow movement of inventory or potential overstocking. Low inventory turnover could tie up capital and increase storage costs, negatively impacting profitability and cash flow.

Trade Receivables Turnover Ratio (3.41)

This ratio shows how efficiently the company collects receivables. With a turnover of 3.41, it collects its receivables approximately three times a year, which might suggest extended credit terms to customers or slow collections, affecting liquidity.

Trade Payable Turnover Ratio (2.57)

A payables turnover ratio of 2.57 suggests that the company is settling its payables over roughly five-month cycles. While longer payment cycles can aid cash flow, they may strain supplier relationships if the cycle is unusually long for the industry.

Net Capital Turnover Ratio (221.97)

An extremely high net capital turnover ratio indicates highly efficient use of working capital to generate revenue. This high turnover might reflect minimal working capital due to low inventory or accounts receivables, which could, however, also indicate potential liquidity issues.

Net Profit Ratio (-1.42%)

A negative net profit ratio reflects a net loss relative to total revenue, suggesting operational inefficiency or high expenses relative to revenue. This loss may deter investors, indicating challenges in profitability and the need for cost management or revenue improvement strategies.

Return on Capital Employed (ROCE) (0.45%)

ROCE measures overall efficiency in generating profit from total capital. At just 0.45%, this low return implies that the company’s capital isn’t being used efficiently to generate returns, which could be due to high operating costs or low revenue growth relative to total capital employed.