The Rajagiri Rubber and Produce Company Annual Reports, Balance Sheet & Financials

The Rajagiri Rubber & Produce Company Limited Consolidated Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
EQUITY AND LIABILITES
Share Capital	48.85	48.85
Reserve and Surplus	5,288.81	1,157.98
Non-Current Liabilities
Long term Borrowings	65.29	124.60
Other long-term liabilities	0.03	0.03
Long-term provisions	20.08	18.47
Current Liabilities
Short term Borrowings	1,276.94	1,903.22
Trade Payable:
Total outstanding dues of Micro Enterprises and Small Enterprises	-	0.20
Total outstanding dues of creditors other than micro enterprises and small enterprises	405.87	315.11
Other Current Liabilities	65.57	92.15
Short term Provisions	35.70	118.59
TOTAL EQUITY AND LIABILITES	7,207.14	3,779.19
ASSETS
Non-Current Assets
Property, Plant and Equipment	481.41	1,066.06
Capital Work-in-progress:
Bearer plants	261.61	232.17
Others	-	-
Non-Current Investment	660.91	671.53
Other non-current assets	13.15	12.38
Current Assets
Current investments	112.49	146.26
Inventories	75.23	180.17
Trade Receivable	293.56	339.52
Cash and Bank Balances	4,962.25	871.10
Short term Loans and Advances	282.75	252.30
Others-accrued income	63.78	7.71
TOTAL ASSETS	7,207.14	3,779.19

 The Rajagiri Rubber & Produce Company Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from Operation	1,619.04	1,722.38
Other Income	321.79	238.72
Total Revenue	1,940.83	1,961.10
Cost of Materials Consumed	152.39	198.41
Other manufacturing expenses	307.71	381.17
Changes in inventories of finished goods, WIP and Stock in trade	36.91	7.84
Employee Benefits Expenses	1,218.28	1,230.75
Finance Costs	139.20	198.53
Livestock expenditure	531.11	334.38
Depreciation and Amortization Expenses	63.78	26.43
Other Expenses	190.04	134.03
Total Expenses	2,639.42	2,511.54
Profit/(Loss) before exceptional and extraordinary items	(698.59)	(550.44)
Exceptional/Extraordinary items	5,057.88	720.35
Profit before Tax	4,359.29	169.91
Reversal of MAT Credit Entitlement	2.00	-
Profit/(Loss) for the period from continuing operations	4,357.29	4,357.29
Profit/(Loss) for the period from discontinuing operations	(278.85)	(456.07)
Current tax	-	-
Profit/(Loss) for the period from discontinuing operations (after tax)	(278.85)	(456.07)
Add: Share of Profit / (Loss) of Associates	2.53	0.87
Profit / (Loss) for the period	4,080.97	(285.29)
Earnings per Equity Share:
Basic	835.41	(58.40)
Diluted	835.41	(58.40)

 The Rajagiri Rubber & Produce Company Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow From Operating Activities
Net Profit before Tax and after Extraordinary Items:
Net Profit/ (Loss) before tax (Continuing Operations)	(700.59)	(550.45)
Net Profit/ (Loss) before tax (Discontinuing Operations)	(278.85)	(456.07)
Adjustments For :
Depreciation	63.78	49.66
Rubber Rehabilitation Allowance	6.31	6.88
Profit on Sale of Investments/Assets	(0.01)	(1.35)
Provision for Gratuity/Leave Encashment	(81.25)	50.32
Livestock written off, Profit/Loss on sale of livestock	420.16	226.41
Interest/Dividend Received	(198.34)	(24.06)
MAT Credit Written off	2.00	-
Interest Paid	139.20	198.53
Operating Profit before Working Capital Charges	(348.74)	(44.05)
Adjustments For:
Trade and other Receivables	37.06	(99.42)
Inventories	41.57	(1.78)
Trade Payables	129.18	37.26
Other Current Assets	(2,763.37)	135.15
Cash Generated From Operations	(2,904.31)	27.16
Taxes Paid	19.79	(25.10)
Cash Flow Before Extraordinary Items	(2,884.52)	2.06
Extraordinary Items	5,057.88	720.35
Extraordinary Items considered under Investing Activities	(5,057.88)	-
Net Cash From Operating Activities (Continuing Operations)	(2,884.52)	722.40
Net Cash From Operating Activities (Discontinuing Operations)	(262.30)	(496.06)
Cash Flow From Investing Activities
Purchase of Fixed Assets	(62.03)	(292.17)
Sales of Fixed Assets	0.29	3.45
Sale/redemption of Investments	33.77	932.56
Sale of Trees	111.59	62.70
Expenditure on Replanting	(68.04)	(66.14)
Interest Received	190.79	16.61
Dividend Received	7.55	7.44
Net Cash From Investing Activities (Continuing Operations)	213.92	664.45
Net Cash From Investing Activities (Discontinuing Operations)	5,143.47	-
CASH FLOW FROM FINANCING ACTIVITIES
Public Deposits/Loan from Directors	200.00
Term Loan	(43.44)	(50.41)
Cash Credit	(444.81)	(200.02)
Inter Corporate Deposit	(300.00)	300.00
Interest Paid	(139.50)	(198.93)
Net Cash Used In Financing Activities (Continuing Operations)	(727.75)	(149.36)
Net Cash Used in Financing Activities (Discontinuing Operations)	(99.63)	(10.99)
Net Increase in Cash and Cash Equivalents	1,383.19	730.44
Cash And Cash Equivalents as at 01.4.2023	745.73
Cash And Cash Equivalents as at 31.3.2024	2,128.93
Net Increase in Cash and Cash Equivalents	1,383.19	730.44

Summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

The company reported a net loss before tax from continuing operations of ₹700.59 lakhs in FY 2024 compared to ₹550.45 lakhs in FY 2023, while losses from discontinuing operations also remained high at ₹278.85 lakhs. Despite some positive adjustments such as depreciation (₹63.78 lakhs) and livestock-related write-offs (₹420.16 lakhs), there were significant negative impacts from provisions reversal (₹81.25 lakhs) and a sharp decline in other current assets (₹2,763.37 lakhs outflow). As a result, operating profit before working capital changes turned negative at ₹(348.74) lakhs, and after factoring in working capital adjustments, cash from operations stood at a large outflow of ₹2,904.31 lakhs, compared to a small inflow in FY 2023. Taxes paid were marginal, but extraordinary items were adjusted under investing activities, leaving the net cash flow from operating activities at ₹(2,884.52) lakhs (continuing) and ₹(262.30) lakhs (discontinuing), reflecting severe operational stress.

Cash Flow from Investing Activities

On the investing side, the company showed improvement compared to the previous year. Capital expenditure was lower at ₹62.03 lakhs against ₹292.17 lakhs, and sales/redemption of investments contributed ₹33.77 lakhs (though lower than FY 2023’s high of ₹932.56 lakhs). Income from sale of trees (₹111.59 lakhs) and higher interest/dividend receipts (₹198.34 lakhs) also boosted inflows. The company generated a net inflow of ₹213.92 lakhs from continuing operations, against ₹664.45 lakhs in FY 2023. Most notably, discontinuing operations added a one-time gain of ₹5,143.47 lakhs, which dramatically strengthened the company’s investing cash flow position in FY 2024.

Cash Flow from Financing Activities

Financing activities reflected a net outflow. While the company raised some deposits and loans from directors (₹200 lakhs), this was offset by repayments and reduced borrowings: term loan repayment (₹43.44 lakhs), cash credit reduction (₹444.81 lakhs), and repayment of inter-corporate deposits (₹300 lakhs). Interest outgo also remained high at about ₹139.50 lakhs. Consequently, the company used ₹727.75 lakhs in financing activities under continuing operations, compared to ₹149.36 lakhs in FY 2023. Discontinuing operations added another outflow of ₹99.63 lakhs. Overall, financing activities showed reliance on debt reduction and repayment, rather than raising fresh funds, putting pressure on liquidity.

Net Cash Flow and Closing Balance

Despite weak operating performance and financing outflows, the company ended FY 2024 with a significant increase in cash and cash equivalents of ₹1,383.19 lakhs, compared to ₹730.44 lakhs in FY 2023. This improvement came primarily from the one-off inflows under investing activities (discontinuing operations), which cushioned the losses from core operations. As a result, the closing cash balance stood at ₹2,128.93 lakhs as of March 31, 2024, up from ₹745.73 lakhs at the start of the year.

 Financial Ratios of The Rajagiri Rubber & Produce Company Limited

Particulars	2024	2023
Current Ratio	3.25	0.74
Debt Equity Ratio	0.35	2.16
Debt Service Coverage Ratio	33.46	2.01
Return on Equity Ratio (in %)	0.82	0.15
Inventory Turnover Ratio	12.68	9.77
Trade Receivable Turnover Ratio	5.11	5.91
Trade Payable Turnover Ratio (in times)	0.97	1.49
Net Capital Turnover Ratio (in times)	0.96	(1.91)
Net profit ratio	2.69	0.10
Return on capital employed	0.83	0.27
Return on Investment (in %)	0.01	0.01

Summary of the financial ratios of The Rajagiri Rubber & Produce Company Limited for the year 2024 and 2023:

Current Ratio

The current ratio improved sharply to 3.25 in 2024 from 0.74 in 2023, indicating that the company’s liquidity position has become much stronger. In 2023, current assets were insufficient to cover current liabilities, but in 2024, the company has more than three times the current assets compared to current liabilities, suggesting much better short-term solvency and reduced liquidity risk.

Debt-Equity Ratio

The debt-equity ratio dropped significantly to 0.35 in 2024 from 2.16 in 2023. This shows the company has greatly reduced its dependence on external borrowings and is now much less leveraged. Lower financial risk and healthier capital structure make the balance sheet more stable.

Debt Service Coverage Ratio (DSCR)

The DSCR rose dramatically to 33.46 in 2024 from just 2.01 in 2023. This indicates that the company now generates far more cash than needed to meet its debt obligations. The sharp improvement highlights stronger repayment capacity, either due to higher operating cash inflows or lower debt servicing requirements.

Return on Equity (ROE)

ROE improved to 0.82% in 2024 compared to 0.15% in 2023. Although the ratio is still very low, the positive movement reflects that the company is generating slightly better returns for shareholders. However, it also indicates that overall profitability is weak relative to shareholders’ funds.

Inventory Turnover Ratio

Inventory turnover increased to 12.68 in 2024 from 9.77 in 2023, showing that the company is managing its stock more efficiently. Higher turnover means inventory is being sold and replaced faster, reducing the risk of obsolescence and freeing up working capital.

Trade Receivable Turnover Ratio

This ratio declined to 5.11 in 2024 from 5.91 in 2023, suggesting that the company is taking slightly longer to collect receivables from customers. Slower collections could strain cash flow if not managed carefully, though the ratio is still within a reasonable range.

Trade Payable Turnover Ratio

The trade payable turnover ratio fell to 0.97 in 2024 from 1.49 in 2023, meaning the company is taking longer to pay its suppliers. While this may improve short-term liquidity, it could affect supplier relationships if payment delays continue.

Net Capital Turnover Ratio

This ratio turned around strongly to 0.96 in 2024 from a negative (1.91) in 2023. A positive value indicates that the company is now generating sales relative to its working capital base, whereas in 2023 it was inefficient. This improvement shows better utilization of working capital in driving revenue.

Net Profit Ratio

The net profit ratio jumped significantly to 2.69% in 2024 from just 0.10% in 2023. This indicates a major improvement in profitability, as the company retained more profit from sales compared to the previous year, though still at a modest level.

Return on Capital Employed (ROCE)

ROCE improved to 0.83% in 2024 from 0.27% in 2023, reflecting a slightly better return on overall capital employed in the business. However, the ratio is still very low, highlighting that the company is not yet generating strong returns on its capital base.

Return on Investment (ROI)

ROI remained unchanged at 0.01% in both 2024 and 2023. This shows that the company’s investments are not generating meaningful returns and are underutilized.