Rajendra Coffees Annual Report, Balance Sheet & Financials

The Rajendra Coffees Limited Balance Sheet (Rs in Thousands)

 The Rajendra Coffees Limited Profit & Loss Statement (Rs in Thousands)

 The Rajendra Coffees Limited Cash Flow Statement (Rs in Thousands) 

Here is a summary of the Cash Flow Statement for the years 2022-23 and 2022-21:

Cash Flow from Operating Activities

In the year 2022-2023, the net cash flow from operating activities amounted to Rs. 9,276.32 thousand, a significant improvement compared to the negative Rs. 337.91 thousand in 2021-2022. This shift from negative to positive operating cash flow is largely attributed to:

Profit before extraordinary items and tax: The company recorded a profit of Rs. 2,923.81 thousand in 2022-2023, down from Rs. 12,891.17 thousand in the previous year. While the profit has declined, the cash flow from operations improved due to changes in non-cash adjustments and working capital management.

Adjustments to profit:

Depreciation and amortization remained consistent, with Rs. 1,771.91 thousand in 2022-2023 compared to Rs. 1,693.57 thousand in 2021-2022, reflecting similar capital asset usage.

The company earned Rs. 474.91 thousand in dividend income in 2022-2023, a higher amount than Rs. 312.16 thousand in 2021-2022.

The category "Other adjustments to reconcile profit (loss)" shows Rs. 521.53 thousand in 2022-2023, reversing a negative adjustment of Rs. -528.58 thousand in 2021-2022.

Non-cash adjustments of Rs. -1,683.64 thousand in 2022-2023 compared to Rs. -2,214.5 thousand in 2021-2022 helped reduce the overall cash outflow.

Working capital adjustments:

A key driver of positive cash flow was a significant decrease in inventories of Rs. 7,570.18 thousand in 2022-2023. In contrast, the company had an inventory increase of Rs. 15,279.73 thousand in 2021-2022, which had previously consumed cash.

The company 's trade receivables increased by Rs. 2,143.71 thousand in 2022-2023, compared to a reduction of Rs. 491.17 thousand in 2021-2022, indicating slower collections from customers, which slightly strained cash flow.

There was a minor increase in trade payables of Rs. 241.33 thousand in 2022-2023, compared to a larger increase of Rs. 2,459.79 thousand in 2021-2022. A rise in trade payables reflects extended credit from suppliers, which provided some relief to cash outflow.

After considering these adjustments, the total cash flow from operations before dividends and taxes was Rs. 9,676.32 thousand in 2022-2023, compared to a negative Rs. 174.95 thousand in 2021-2022. The company received dividends of Rs. 400 thousand in 2022-2023 and made no significant tax payments. Consequently, the net cash flow from operating activities was Rs. 9,276.32 thousand, showing a significant recovery.

Cash Flow from Investing Activities

The cash flow from investing activities in 2022-2023 saw a net outflow of Rs. 3,245.22 thousand, a marked improvement compared to a larger outflow of Rs. 5,281.34 thousand in 2021-2022. Here 's how the company’s investment activities unfolded:

Proceeds from tangible and intangible asset sales: Unlike the previous year, where the company had inflows from the sale of tangible assets (Rs. 528.58 thousand) and intangible assets (Rs. 126.27 thousand), no such proceeds were recorded in 2022-2023.

Purchase of tangible assets: The company invested Rs. 5,676.82 thousand in tangible assets in 2022-2023, slightly higher than Rs. 5,538.94 thousand in the previous year. This reflects ongoing investments in the company’s asset base, potentially to support future growth.

Dividends and interest income: The company earned Rs. 474.91 thousand in dividend income and Rs. 1,435.16 thousand in interest income in 2022-2023, an improvement from Rs. 312.16 thousand and Rs. 908.02 thousand, respectively, in 2021-2022. These inflows partially offset the outflows from asset purchases.

Taxes paid: The company paid Rs. 521.53 thousand in taxes related to investing activities in 2022-2023, compared to no such payments in 2021-2022.

Other inflows/outflows: In 2021-2022, there was a significant outflow of Rs. 1,617.43 thousand, which was not repeated in 2022-2023, contributing to a smaller overall cash outflow in the latter year.

Overall, while the company continued to invest in tangible assets, the higher interest and dividend income helped reduce the net outflow from investing activities in 2022-2023.

Net Increase (Decrease) in Cash and Cash Equivalents

As a result of the strong performance in operating activities and the reduced cash outflow from investing activities, the company recorded a net increase in cash and cash equivalents of Rs. 6,031.1 thousand in 2022-2023, reversing the decline of Rs. 5,619.25 thousand in 2021-2022. This improvement reflects better overall cash management and stronger liquidity in 2022-2023.