The Ganges Manufacturing Annual Reports, Balance Sheet and Financials

The Ganges Manufacturing Company Limited Standalone Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant & Equipment	30.29	27.30
Capital Work-in-Progress	0.58	3.72
Intangible Assets	0.07	0.10
Investments	-	-
Other Financial Assets	1.93	0.26
Non-Current Tax Assets (Net)	0.07	0.07
Other Non-Current Assets	0.94	0.66
Current Assets
Inventories	95.19	100.81
Trade Receivables	20.79	14.83
Cash and Cash Equivalents	0.29	0.61
Other Bank Balances	9.03	9.70
Loans	14.34	42.39
Other Financial Assets (Current)	0.15	0.75
Other Current Assets	2.29	3.21
Total Assets	176.01	204.50
Equity
Equity Share Capital	3.65	3.65
Other Equity	31.54	26.09
Total Equity	35.20	29.74
Non-Current Liabilities
Borrowings	1.13	1.40
Other Financial Liabilities	0.01	0.01
Provisions	49.60	44.86
Deferred Tax Liabilities (Net)	0.74	0.90
Other Non-Current Liabilities	0.01	0.09
Current Liabilities
Borrowings	6.93	1.94
Trade Payables - MSME	1.02	87.28
Trade Payables - Others	35.85	34.41
Other Financial Liabilities	13.38	12.97
Other Current Liabilities	27.89	71.74
Provisions	4.20	5.52
Total Equity and Liabilities	176.01	204.50

The Ganges Manufacturing Company Limited Standalone Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Revenue from Operations	321.18	339.81
Other Income	4.08	9.17
Total Income	325.27	348.98
Expenses
Cost of Materials Consumed	197.35	203.79
Changes in Inventories	-6.83	11.73
Employee Benefit Expenses	76.58	68.56
Finance Costs	1.85	1.64
Depreciation and Amortisation	5.63	4.56
Other Expenses	42.04	41.70
Total Expenses	316.63	332.01
Profit Before Tax	8.63	16.97
Current Tax Expenses	3.32	4.00
Deferred Tax Expense/(Credit)	-0.15	-0.03
Tax for Earlier Years	-	0.09
Profit for the Year	5.45	12.91
Total Comprehensive Income	5.45	12.91
Earnings per share
Basic and Diluted	14.92	35.28

The Ganges Manufacturing Company Limited Standalone Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activities
Net Profit Before Tax	8.63	16.97
Adjustments for:
Depreciation and Amortization expenses	5.63	4.56
Income from Deferred Government Grant	-0.08	-0.08
(Profit)/loss on Sale of PPE (net)	-0.28	-0.63
Interest Income on Loans	-2.06	-6.40
Finance Cost	1.81	1.62
Provisions for Employee Benefits	3.37	-1.96
Operating Profit before Working Capital Changes	17.03	14.07
(Increase)/Decrease in Inventories	5.62	-11.71
(Increase)/Decrease in Trade Receivables	-5.95	-3.82
(Increase)/Decrease in Other Financial Assets	-0.38	-2.42
(Increase)/Decrease in Other Assets	0.66	-0.47
Increase/(Decrease) in Trade Payables	1.59	-10.40
Increase/(Decrease) in Other Financial Liabilities	0.41	-1.26
Increase/(Decrease) in Other Liabilities	-43.79	7.17
Cash Generated from Operations	-24.82	-8.86
Direct Taxes Paid	-3.33	-4.09
Net Cash from Operating Activities	-28.15	-12.96
Cash Flow From Investing Activities
Purchase of Property, Plant & Equipment	-5.49	-12.47
Sale of Property, Plant & Equipment	0.32	1.11
Loans Receivable	28.04	21.11
Interest Received on Loans	2.06	6.40
Net Cash used in Investing Activities	24.93	16.15
Cash Flow From Financing Activities
Proceeds from Non-Current Borrowings (net)	-0.27	-0.15
(Repayment of)/Proceeds from Current Borrowings (net)	4.94	-1.55
(Repayment of) Current Maturities of LT Liabilities	0.04	0.26
Interest and Finance Charges Paid	-1.81	-1.62
Net Cash (used in)/ from Financing Activities	2.90	-3.08
Net Increase/(Decrease) in Cash & Cash Equivalents	-0.31	0.10
Opening Cash and Cash Equivalents	0.61	0.50
Closing Cash and Cash Equivalents	0.29	0.61

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

Cash Flow from Operating Activities:
The company reported a net cash outflow of ₹28.15 crores in 2025, compared to an outflow of ₹12.96 crores in 2024, indicating a significant deterioration in operating cash flows. Although operating profit before working capital changes improved to ₹17.03 crores (from ₹14.07 crores), adverse working capital movements heavily impacted cash flow. A major decline in other liabilities (₹-43.79 crores) and an increase in trade receivables reduced cash generation. Despite a positive reduction in inventories, overall operations consumed cash, suggesting inefficiencies in managing working capital and liquidity pressures in core business activities.

 

Cash Flow from Investing Activities:
The company generated a strong positive cash inflow of ₹24.93 crores in 2025, higher than ₹16.15 crores in 2024. This was mainly driven by loans receivable (₹28.04 crores) and interest income, despite capital expenditure on property, plant, and equipment. The lower investment in fixed assets compared to the previous year indicates reduced capital spending. Overall, investing activities contributed significantly to cash inflows, possibly reflecting recovery of loans or reduced expansion activities.

 

Cash Flow from Financing Activities:
Cash flow from financing activities turned positive at ₹2.90 crores in 2025, compared to a negative ₹3.08 crores in 2024. This improvement was mainly due to an increase in current borrowings (₹4.94 crores), partially offset by interest payments and slight repayment of non-current borrowings. The positive financing cash flow indicates reliance on short-term borrowings to support liquidity.

 

Net Change in Cash and Cash Equivalents:
Despite positive cash flows from investing and financing activities, the heavy operating cash outflow resulted in a net decrease in cash of ₹0.31 crores in 2025, compared to a slight increase in 2024. This reflects the company’s dependence on non-operating sources to sustain cash levels.

Financial ratios of The Ganges Manufacturing Company Limited

Particulars	31-03-2025	31-03-2024
Current Ratio	1.59	1.35
Debt-Equity Ratio (in times)	0.23	0.11
Debt Service Coverage Ratio (in times)	16.03	25.86
Inventory Turnover Ratio (no. of days)	107.03	98.11
Trade Receivables Turnover Ratio (no. of days)	19.46	13.36
Trade Payables Turnover Ratio (no. of days)	57.07	54.39
Net Capital Turnover Ratio (in times)	6.07	7.55
Net Profit Ratio (%)	1.70%	3.81%
Return on Capital Employed (%)	20.80%	51.04%
Return on Equity Ratio (%)	16.81%	55.43%

Summary of financial ratios for the year 2025 and 2024:

Current Ratio:
The current ratio improved from 1.35 in 2024 to 1.59 in 2025, indicating better short-term liquidity. The company is now in a stronger position to meet its current liabilities using current assets, reflecting improved working capital management.

 

Debt-Equity Ratio:
The debt-equity ratio increased from 0.11 to 0.23, showing a rise in the proportion of debt financing. Although still low and conservative, this indicates that the company has slightly increased its reliance on borrowed funds during 2025.

 

Debt Service Coverage Ratio:
The DSCR declined significantly from 25.86 to 16.03. While still comfortably high, this decrease suggests reduced ability to cover debt obligations from operating income compared to the previous year.

 

Inventory Turnover Ratio:
Inventory holding period increased from 98.11 days to 107.03 days, indicating slower movement of inventory. This may point to inefficiencies in inventory management or reduced demand.

 

Trade Receivables Turnover Ratio:
The receivables collection period rose from 13.36 days to 19.46 days, suggesting slower recovery of dues from customers. This could impact cash flow and indicates less efficient credit management.

 

Trade Payables Turnover Ratio:
The payable period increased slightly from 54.39 days to 57.07 days. This shows the company is taking marginally more time to pay its suppliers, which may help short-term liquidity but could affect supplier relationships.

 

Net Capital Turnover Ratio:
This ratio decreased from 7.55 to 6.07, indicating reduced efficiency in using working capital to generate revenue. The company is generating less sales per unit of capital employed compared to the previous year.

 

Net Profit Ratio:
The net profit margin declined sharply from 3.81% to 1.70%, reflecting a significant drop in profitability. This could be due to increased costs, reduced pricing power, or operational inefficiencies.

 

Return on Capital Employed:
ROCE fell from 51.04% to 20.80%, indicating a substantial decline in the efficiency of capital utilization. The company is generating lower returns from its capital base compared to the previous year.

 

Return on Equity:
ROE decreased from 55.43% to 16.81%, showing a major reduction in returns to shareholders. This aligns with the drop in profitability and suggests weaker overall financial performance.