The Nelliampathy Tea and Produce Annual Reports, Balance Sheet and Financials

The Nelliampathy Tea Limited Consolidated Balance Sheet (Rs in Lakhs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

During the year ended 31 March 2025, the company generated a net cash inflow of ₹675.46 lakhs from operating activities, compared to ₹46.12 lakhs in the previous year, indicating a substantial improvement in operational performance. Operating profit before working capital changes rose sharply to ₹763.47 lakhs from ₹227.15 lakhs, mainly due to better profitability and reduced non-cash expenses. Depreciation amounted to ₹34.50 lakhs, while provisions for leave encashment and gratuity showed a net reversal, reflecting lower employee benefit obligations. Non-operating incomes such as profit on sale of investments (₹94.47 lakhs), dividend income (₹93.73 lakhs), and interest income (₹4.72 lakhs) were adjusted. Working capital changes were largely favourable, supported by an increase in trade payables of ₹36.52 lakhs and stable inventory levels, though trade receivables increased by ₹47.23 lakhs. After payment of direct taxes amounting to ₹61.37 lakhs, the company achieved strong net cash inflows from operations.

Cash Flow from Investing Activities

The company reported a net cash outflow of ₹286.36 lakhs from investing activities during the year, as against a net inflow of ₹65.68 lakhs in the previous year. Major outflows included capital expenditure of ₹334.25 lakhs towards the purchase of property, plant and equipment, reflecting investment in long-term assets. Investments amounting to ₹582 lakhs were purchased during the year, while ₹519.18 lakhs were realized from the sale of investments. Additionally, proceeds of ₹17.29 lakhs were received from the sale of fixed assets. The company also earned dividend income of ₹88.71 lakhs and interest income of ₹4.72 lakhs. The overall net outflow indicates a strategic focus on capital expansion and investment deployment.

Cash Flow from Financing Activities

Net cash used in financing activities during the year amounted to ₹343.58 lakhs, compared to ₹98.70 lakhs in the previous year. This was primarily due to a dividend payout of ₹342.48 lakhs, reflecting the company’s policy of distributing profits to shareholders. Interest paid during the year was minimal at ₹1.10 lakhs, indicating low dependence on external borrowings. There were no significant inflows from financing activities, suggesting that the company relied mainly on internal accruals to meet its funding requirements.

 Net Change in Cash and Cash Equivalents

As a combined result of operating, investing, and financing activities, the company recorded a net increase in cash and cash equivalents of ₹45.52 lakhs during the year, as compared to an increase of ₹13.10 lakhs in the previous year. Cash and cash equivalents increased from ₹24.56 lakhs at the beginning of the year to ₹70.09 lakhs at the end of the year. The increase was primarily driven by strong operating cash inflows, which were sufficient to offset cash outflows from investing and financing activities, thereby reflecting a healthy liquidity position and efficient cash flow management.