Canara Workshops Annual Reports, Balance Sheet and Financials

The Canara Workshops Limited Standalone Balance Sheet (Rs in Hundreds)

Particulars	31-03-2025	31-03-2024
Equity
Share capital	146990.90	146990.90
Surplus	-925307.77	-666422.34
Non-current Liabilities
Long term borrowing	467564.59	502038.52
Long term Provisions	307662.47	314319.71
Current Liabilities
Total outstanding dues of micro & Small enterprises	495328.53	268909.30
Total outstanding dues of ceditors other than micro & Small enterprises	75851.20	379482.87
Other current liabilities	318128.76	250110.43
Short term provisions	128379.44	112961.76
Short term Borrowings	994227.21	999537.12
Total Equity and Liabilities	2008825.33	2307928.27
Non-current Assets
Property, plant and equipment	189959.50	204109.09
Non current investments	4243.27	4243.27
Deferred tax assets (net)	76406.79	79759.34
Current Assets
Inventories	1104213.94	1113253.16
Trade receivables	486213.01	536968.35
Cash and cash Equivalents	39248.87	35565.98
Short term loans and advances	108539.95	334029.09
Total Assets	2008825.33	2307928.27

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

Particulars	31-03-2025	31-03-2024
Revenue  From  Operations	1829702.60	1956686.67
Other  Income	12982.16	342406.40
Total  Income	1842684.76	2299093.07
Expenses:
Cost  of  Materials  Consumed	861480.63	1014087.77
Changes  in  Inventories  of  Finished  Goods,Work-In-Progress  and  Stock-In-Trade	30066.84	39762.11
Employee  Benefit  Expense	569719.99	559798.71
Financial  Costs	152653.88	164428.23
Depreciation  and  Amortisation  Cost	18350.05	21897.78
Other  Expenses	465946.26	529335.23
Total  Expenses	2098217.64	2329309.82
Profit  Before  Tax	-255532.88	-30216.75
Deferred  Tax	3352.55	-2510.63
Profit/(Loss)  For  The  Period	-258885.43	-27706.12
Earning  Per  Equity  Share:
Basic	(17.61)	(1.88)
Diluted	(17.61)	(1.88)

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

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Profit before tax	-255532.88	-30216.75
Depreciation and amortisation expenses	18350.05	21897.78
(Profit)/Loss on sale of Fixed Assets	0.00	81278.00
Interest and other income on investments	-79.26	-162.48
Interest Expenses	152653.88	164428.23
Rent and other income	-234509.40	-166355.26
Operating profit/(Loss) before working capital changes	-319117.62	-9595.70
Changes in Working Capital:
Increase/(Decrease) in Trade payable	-77212.44	125047.40
Increase/(Decrease) in short term provisions	15417.68	33630.47
Increase/(Decrease) in long term provisions	-6657.24	9340.22
Increase/(Decrease) in other current liabilities	68018.32	90867.39
(Increase) /Decrease in short term loans and advances	225489.14	-233242.89
(Increase) /Decrease in trade receivables	50755.34	-20912.55
(Increase) /Decrease in inventories	9039.22	125753.95
Cash Flow from/(used in) Operating Activities	-34267.60	120888.29
Interest paid	-79259.32	-86710.13
Net Cash from Operating Activities	-113526.92	34178.16
Cash Flow from Investing Activities
Purchase of tangible/intangible assets	-4200.47	-11868.49
Sale of tangible/intangible assets	0.00	701.63
Decrease in Investments	-	-
Rent received	234509.40	166355.26
(Profit) / Loss on Sale of Fixed Assets	0.00	-812.78
Dividend/ Bank Interest Received	79.26	162.48
Net Cash from Investing Activities	230388.19	154538.10
Cash Flow from Financing Activities
Long term borrowings	-34473.93	-15818.67
Short term borrowings	-5309.91	-95508.39
Interest and hire purchase charges	-73394.56	-77718.10
Net Cash from Financing Activities	-113178.40	-189045.16
Net Increase/Decrease in cash & cash equivalents	3682.87	-328.90
Cash and cash equivalents at the beginning of the period	35566.00	35894.89
Cash and cash equivalents at the end of the period	39248.87	35565.99
Cash and cash equivalents comprise of:
Cash on hand	684.48	635.21
Balance with banks	38564.39	34930.77
Total	39248.88	35565.98

 activity-wise analysis of the Cash Flow Statement of The Canara Workshops Limited, considering all figures in ₹ hundreds:

A. Cash Flow from Operating Activities

The company reported a loss before tax of ₹2,55,532.88 (in hundreds) during FY 2024-25, significantly higher than the previous year loss, reflecting weak operating performance.

After adjustments for depreciation, interest expenses and rental income, the operating loss before working capital changes stood at ₹3,19,117.62 (in hundreds).

Working capital movements showed mixed trends:

• * Decrease in trade payables resulted in cash outflow.

• * Increase in provisions and other current liabilities supported liquidity.

• * Decrease in short-term loans & advances, trade receivables and inventories generated cash inflows.

However, these adjustments were insufficient to offset the operating losses. After interest payment, the company recorded a net cash outflow from operating activities of ₹1,13,526.92 (in hundreds), indicating that core operations are not generating adequate cash.

B. Cash Flow from Investing Activities

Investing activities generated strong positive cash flow during the year:

• * Minor capital expenditure on fixed assets.

• * Significant inflow from rent received.

• * Small income from interest/dividends.

Net cash inflow from investing activities amounted to ₹2,30,388.19 (in hundreds), showing that rental and investment income are the primary sources of cash generation.

C. Cash Flow from Financing Activities

Financing activities resulted in cash outflows:

• * Repayment of long-term and short-term borrowings.

• * Payment of interest and finance charges.

Net cash used in financing activities was ₹1,13,178.40 (in hundreds), indicating reduction in debt obligations and servicing of finance costs.

 

Net Change in Cash & Cash Equivalents

Despite negative operating cash flows, the strong inflow from investing activities helped maintain liquidity:

• * Net increase in cash & cash equivalents: ₹3,682.87 (in hundreds)

• * Closing balance improved to ₹39,248.87 (in hundreds).

  Overall Interpretation

  • * The company continues to incur operating losses and negative operating cash flows.

  • * Liquidity is largely supported by rental income and investment-related inflows.

  • * Debt repayments and finance costs are reducing financing cash availability.

  • * Overall cash position improved slightly, but long-term sustainability depends on strengthening core business operations and profitability.

Financial Ratios of The Canara Workshops Limited

Particulars	2025	2024
Current Ratio	0.93	1
Debt-Equity Ratio	-3.58	-5.44
Debt service coverage ratio	-0.19	0.32
Return on Equity Ratio	0.40	0.05
Inventory turnover ratio	0.80	0.94
Trade Receivables Turnover Ratio	3.12	3.41
Trade Payable Turnover Ratio	3.87	2.57
Net Capital Turnover Ratio	-13.50	221.97
Net Profit ratio	-14.15	-1.42
Return on Capital Employed Ratio	-0.76	0.45

 

Analysis of The Canara Workshops Limited based on the key financial ratios

1. Current Ratio

The current ratio declined to 0.93 in 2025 from 1.00 in 2024, indicating that current liabilities slightly exceed current assets. This reflects weakening short-term liquidity and a tighter working capital position.

2. Debt–Equity Ratio

The ratio remained negative at -3.58 in 2025 (-5.44 in 2024), suggesting negative net worth due to accumulated losses. Although the magnitude improved, the capital structure continues to be stressed and highly risky.

3. Debt Service Coverage Ratio (DSCR)

DSCR declined to -0.19 in 2025 from 0.32 in 2024, indicating inadequate earnings to service debt obligations. This signals pressure on repayment capacity.

4. Return on Equity (ROE)

ROE improved to 0.40 in 2025 from 0.05 in 2024. Despite accounting losses, the increase may be due to changes in equity base or non-operating income; however, sustainability remains uncertain.

5. Inventory Turnover Ratio

Inventory turnover declined to 0.80 from 0.94, indicating slower movement of inventory and comparatively weaker inventory management.

6. Trade Receivables Turnover Ratio

The ratio slightly decreased to 3.12 from 3.41, showing a marginal slowdown in collection efficiency and longer credit recovery cycle.

7. Trade Payables Turnover Ratio

The ratio increased to 3.87 from 2.57, suggesting faster payment to suppliers and improved creditor turnover, though it may impact short-term liquidity.

8. Net Capital Turnover Ratio

The ratio turned negative at -13.50 in 2025 compared to a very high 221.97 in 2024, indicating inefficient utilization of working capital and declining operational performance.

9. Net Profit Ratio

Net profit ratio deteriorated significantly to -14.15 from -1.42, reflecting higher losses and weak profitability during the year.

10. Return on Capital Employed (ROCE)

ROCE declined to -0.76 from 0.45, indicating that capital employed is not generating adequate returns and operational efficiency has weakened.

Overall Interpretation

• * Liquidity position has weakened and working capital management needs improvement.

• * Negative net worth and poor DSCR highlight financial stress and repayment risk.

• * Profitability indicators (Net Profit Ratio, ROCE) show deterioration.

• * Operational efficiency ratios such as inventory and receivable turnover have slightly weakened.

* Overall, the company faces financial and operational challenges, and improvement in profitability, capital structure and working capital management is essential for long-term sustainability.