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

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

Particulars	31-03-2025	31-03-2024
EQUITY AND LIABILITES
Share Capital	48.85	48.85
Reserve and Surplus	5,271.32	5,288.81
Non-Current Liabilities
Long term Borrowings	26.93	65.29
Other long-term liabilities	0.03	0.03
Long-term provisions	18.89	20.08
Current Liabilities
Short term Borrowings	1,513.51	1,276.94
Trade Payable:
Total outstanding dues of Micro Enterprises and Small Enterprises	15.43	-
Total outstanding dues of creditors other than micro enterprises and small enterprises	329.81	372.15
Other Current Liabilities	122.37	65.57
Short term Provisions	70.67	35.70
TOTAL EQUITY AND LIABILITES	7,417.81	7,224.19
ASSETS
Non-Current Assets
Property, Plant and Equipment	515.10	481.41
Capital Work-in-progress:
Bearer plants	268.79	261.61
Others	2.26	-
Non-Current Investment	301.64	660.91
Other non-current assets	8.04	13.15
Current Assets
Current investments	84.35	112.49
Inventories	146.02	75.23
Trade Receivable	301.70	293.56
Cash and Bank Balances	5,534.70	4,962.25
Short term Loans and Advances	241.59	299.80
Others-accrued income	13.62	63.78
TOTAL ASSETS	7,417.81	7,224.19

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

Particulars	31-03-2025	31-03-2024
Revenue from Operation	2,316.71	1,619.04
Other Income	453.94	343.85
Total Revenue	2,770.65	1,962.89
Cost of Materials Consumed	607.34	152.39
Other manufacturing expenses	357.13	307.71
Changes in inventories of finished goods, WIP and Stock in trade	(72.43)	36.91
Employee Benefits Expenses	1,301.77	1,218.28
Finance Costs	142.56	139.20
Livestock expenditure	97.85	531.11
Depreciation and Amortization Expenses	65.77	63.78
Other Expenses	162.34	190.04
Total Expenses	2,662.33	2,639.42
Profit/(Loss) before exceptional and extraordinary items	108.32	(676.53)
Exceptional/Extraordinary items	(344.92)	5,057.88
Profit before Tax	(236.60)	4,381.35
Reversal of MAT Credit Entitlement	-	2.00
Profit/(Loss) for the period from continuing operations	(236.60)	4,379.35
Profit/(Loss) for the period from discontinuing operations	-	(300.90)
Current tax	-	-
Profit/(Loss) for the period from discontinuing operations (after tax)	-	(300.90)
Add: Share of Profit / (Loss) of Associates	(1.86)	2.53
Profit / (Loss) for the period	(238.46)	4,080.97
Earnings per Equity Share:
Basic	(48.81)	835.41
Diluted	(48.81)	835.41

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

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activities
Net Profit before Tax and after Extraordinary Items:
Net Profit/ (Loss) before tax (Continuing Operations)	108.32	(700.59)
Net Profit/ (Loss) before tax (Discontinuing Operations)	-	(278.85)
Adjustments For :
Depreciation	65.77	63.78
Rubber Rehabilitation Allowance	6.56	6.31
Profit on Sale of Investments/Assets	(5.12)	(0.01)
Provision for Gratuity/Leave Encashment	33.78	(81.25)
Livestock written off, Profit/Loss on sale of livestock	-	420.16
Interest/Dividend Received	(288.15)	(198.34)
MAT Credit Written off	-	2.00
Interest Paid	142.56	139.20
Operating Profit before Working Capital Charges	63.72	(348.74)
Adjustments For:
Trade and other Receivables	(8.13)	37.06
Inventories	(70.79)	41.57
Trade Payables	(20.38)	129.18
Other Current Assets	60.59	(2,763.37)
Cash Generated From Operations	25.01	(2,904.31)
Taxes Paid	48.11	19.79
Cash Flow Before Extraordinary Items	73.12	(2,884.52)
Extraordinary Items	(344.92)	5,057.88
Extraordinary Items considered under Investing Activities	-	(5,057.88)
Net Cash From Operating Activities (Continuing Operations)	(271.80)	(2,884.52)
Net Cash From Operating Activities (Discontinuing Operations)	-	(262.30)
Cash Flow From Investing Activities
Purchase of Fixed Assets	(96.98)	(62.02)
Sales of Fixed Assets	5.69	0.29
Sale/redemption of Investments	373.06	33.77
Sale of Trees	214.41	111.59
Expenditure on Replanting	-	(68.04)
Interest Received	279.39	190.79
Dividend Received	8.76	7.55
Net Cash From Investing Activities (Continuing Operations)	784.33	213.92
Net Cash From Investing Activities (Discontinuing Operations)	-	5,143.47
CASH FLOW FROM FINANCING ACTIVITIES
Public Deposits/Loan from Directors	275.00	200.00
Term Loan	(76.79)	(43.44)
Cash Credit	-	(444.81)
Inter Corporate Deposit	-	(300.00)
Interest Paid	(143.05)	(139.50)
Net Cash Used In Financing Activities (Continuing Operations)	55.15	(727.75)
Net Cash Used in Financing Activities (Discontinuing Operations)	-	(99.63)
Net Increase in Cash and Cash Equivalents	567.69	1,383.20
Cash And Cash Equivalents as at 01.4.2023	2,129.79	745.73
Cash And Cash Equivalents as at 31.3.2024	2,697.48	2,128.93
Net Increase in Cash and Cash Equivalents	567.69	1,383.19

Cash Flow Statement Analysis – The Rajagiri Rubber & Produce Company Limited
(All amounts in ₹ Lakhs)

Operating Activities

During FY 2024–25, the Company reported a net profit before tax from continuing operations of ₹108.32 lakhs as against a loss in the previous year. After incorporating non-cash and non-operating adjustments—primarily depreciation (₹65.77 lakhs), provisions for employee benefits (₹33.78 lakhs), and finance costs (₹142.56 lakhs), offset by interest/dividend income (₹288.15 lakhs)—the operating profit before working capital changes stood at ₹63.72 lakhs.

Working capital movements remained mixed. Inventory build-up (₹70.79 lakhs) and reduction in trade payables (₹20.38 lakhs) exerted pressure on cash flows, partly offset by improvement in other current assets (₹60.59 lakhs). Consequently, cash generated from operations was modest at ₹25.01 lakhs. After accounting for taxes and extraordinary items, the Company reported a net cash outflow from operating activities of ₹271.80 lakhs.

The negative operating cash flow primarily reflects working capital absorption and exceptional adjustments rather than a deterioration in core profitability.

Investing Activities

Investing activities generated strong positive cash inflows of ₹784.33 lakhs during the year. The major contributors were:

• Sale/redemption of investments: ₹373.06 lakhs

• Sale of trees: ₹214.41 lakhs

• Interest and dividend receipts: ₹288.15 lakhs (combined)

• Limited capital expenditure on fixed assets: ₹96.98 lakhs

The Company continued to monetize investments and plantation-related assets while maintaining moderate capital expenditure, resulting in a robust net inflow from investing operations.

Financing Activities

Financing activities recorded a net inflow of ₹55.15 lakhs. The Company mobilized funds through public deposits/loans from directors (₹275.00 lakhs) while simultaneously reducing term loan exposure (₹76.79 lakhs) and servicing finance costs (₹143.05 lakhs).

The financing pattern indicates a cautious leverage strategy—raising selective funding while continuing repayment and interest servicing—reflecting prudent capital management.

Net Movement in Cash & Cash Equivalents

Overall, the Company reported a net increase in cash and cash equivalents of ₹567.69 lakhs during FY 2024–25. The closing balance rose to ₹2,697.48 lakhs, supported mainly by strong inflows from investing activities and moderate support from financing activities, despite the operating cash outflow.

Overall Interpretation for Stakeholders

• Operationally, profitability improved; however, working capital absorption and exceptional items led to a temporary cash outflow.

• Investment strategy remained a key strength, with significant inflows from asset monetization and investment income supporting liquidity.

• Financing discipline is evident through selective borrowing and continued debt servicing.

• Liquidity position strengthened materially, reflected in higher closing cash balances.

In summary, while operating cash flows were negative in the current year due to internal adjustments and working capital movements, the Company maintained a healthy liquidity position through strong investing inflows and prudent financial management, indicating stable financial stewardship and capacity to support future operational and plantation activities. 

 Financial Ratios of The Rajagiri Rubber & Produce Company Limited

Particulars	2025	2024
Current Ratio	3.08	3.22
Debt Equity Ratio	0.29	0.25
Debt Service Coverage Ratio	2.24	33.41
Return on Equity Ratio (in %)	-4.46%	125.36%
Inventory Turnover Ratio	20.94	9.79
Trade Receivable Turnover Ratio	7.78	5.11
Trade Payable Turnover Ratio (in times)	2.49	1.01
Net Capital Turnover Ratio (in times)	0.56	0.96
Net profit ratio	-10.21%	251.90%
Return on capital employed	-1.80%	78.04%
Return on Investment (in %)	1.56%	0.97%

Key Financial Ratios Analysis – The Rajagiri Rubber & Produce Company Limited
(For the year ended 31 March 2025 – Comparative with FY 2023–24)

1. Current Ratio

FY 2025: 3.08 | FY 2024: 3.22

The Current Ratio remained strong at 3.08, indicating that the Company continues to maintain more than adequate short-term liquidity to meet its current obligations. Though marginally lower than the previous year, the ratio reflects a comfortable working capital position and prudent liquidity management.

2. Debt–Equity Ratio

FY 2025: 0.29 | FY 2024: 0.25

The Debt–Equity Ratio shows a slight increase, reflecting moderate additional reliance on borrowed funds. However, the ratio remains low, indicating a conservative capital structure and limited financial leverage. The Company continues to operate with a balanced and stable funding mix.

3. Debt Service Coverage Ratio (DSCR)

FY 2025: 2.24 | FY 2024: 33.41

The DSCR moderated significantly compared to the previous year. The exceptionally high ratio in FY 2024 was influenced by extraordinary income. The FY 2025 level of 2.24 remains healthy, indicating sufficient earnings to cover debt servicing obligations more than twice over, which is reassuring for lenders.

4. Return on Equity (ROE)

FY 2025: (4.46%) | FY 2024: 125.36%

ROE turned negative in FY 2025 due to lower net profitability compared to the previous year, which had substantial extraordinary gains. The prior year’s unusually high return was not operationally recurring. The current year performance reflects normalization of earnings and underscores the need for sustained operational profitability.

5. Inventory Turnover Ratio

FY 2025: 20.94 times | FY 2024: 9.79 times

The significant improvement in inventory turnover indicates enhanced efficiency in inventory management and faster movement of produce. This reflects improved operational execution and better demand alignment.

6. Trade Receivable Turnover Ratio

FY 2025: 7.78 times | FY 2024: 5.11 times

The improvement demonstrates stronger receivables management and quicker realization of dues. This positively impacts liquidity and reduces credit risk exposure.

7. Trade Payable Turnover Ratio

FY 2025: 2.49 times | FY 2024: 1.01 times

The increase suggests more timely settlement of payables compared to the previous year. This reflects improved vendor payment discipline and stronger liquidity support.

8. Net Capital Turnover Ratio

FY 2025: 0.56 times | FY 2024: 0.96 times

The decline indicates lower revenue generation relative to working capital deployed. This moderation is attributable to normalized operations following extraordinary transactions in the previous year. Management focus remains on optimizing capital productivity.

9. Net Profit Ratio

FY 2025: (10.21%) | FY 2024: 251.90%

The negative margin in FY 2025 reflects lower profitability compared to the prior year, which included significant exceptional income. The FY 2024 margin was not indicative of core operating performance. The current year reflects a transition phase and normalization of earnings.

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10. Return on Capital Employed (ROCE)

FY 2025: (1.80%) | FY 2024: 78.04%

ROCE turned negative in FY 2025 due to reduced operating returns. The previous year’s elevated return was influenced by extraordinary gains. Going forward, improvement in operational efficiency and margin enhancement will be key drivers of capital productivity.

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11. Return on Investment (ROI)

FY 2025: 1.56% | FY 2024: 0.97%

ROI improved modestly, reflecting better yield on investments. This demonstrates stable treasury management and effective deployment of surplus funds.

Overall Financial Perspective

• Liquidity Position: Strong and stable.

• Leverage: Conservative capital structure with manageable debt levels.

• Operational Efficiency: Marked improvement in inventory and receivables turnover.

• Profitability: Normalized in FY 2025 following exceptional gains in FY 2024.

• Debt Servicing Ability: Comfortable and sustainable.

In summary, while profitability ratios reflect normalization after an extraordinary prior year, the Company maintains strong liquidity, disciplined leverage, and improving operational efficiency—positioning it on a stable financial foundation for sustainable long-term growth.