Ramaraju Surgical Annual Reports, Balance Sheet and Financials

The Ramaraju Surgical Cotton Mills Balance Sheet (Rs in Lakhs)

 The Ramaraju Surgical Cotton Mills Profit & Loss Statement (Rs in Lakhs)

 The Ramaraju Surgical Cotton Mills Consolidated Cash Flow Statement (Rs in Lakhs)

 Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Operating Activities:

The company faced a significant loss before tax of ₹5,026.51 lakhs, a deterioration from the previous year 's loss of ₹3,886.87 lakhs. Despite this, the operating profit before working capital changes was positive at ₹1,967.06 lakhs, though it fell sharply from ₹3,270.16 lakhs in 2023. The decrease in operating profit before working capital changes reflects ongoing operational challenges.

Depreciation & Amortization decreased to ₹3,543.14 lakhs from ₹4,205.75 lakhs, suggesting a reduction in depreciation charges, possibly due to lower capital expenditure. Finance costs rose to ₹3,756.54 lakhs from ₹3,158.65 lakhs, indicating increased borrowing costs. Interest received was slightly higher at ₹238.62 lakhs compared to ₹223.32 lakhs, while the profit/loss on the sale of assets worsened to a loss of ₹66.04 lakhs from ₹36.72 lakhs.

Working capital adjustments showed significant fluctuations: Trade Receivables increased by ₹826.79 lakhs, a sharp contrast to a decrease of ₹88.80 lakhs in 2023, indicating issues in collecting receivables. Inventories rose by ₹1,413.11 lakhs, reversing the previous year 's decrease of ₹2,639.33 lakhs, likely reflecting inventory buildup. Loans and Advances saw a minor increase of ₹2.07 lakhs, whereas Trade Payables & Current Liabilities remained largely unchanged, showing a modest decrease of ₹0.37 lakhs. The company paid net income taxes of ₹125.38 lakhs, compared to a refund of ₹67.07 lakhs in the previous year.

Investing Activities:

The company 's investment activities involved substantial expenditures and receipts. The purchase of Property, Plant, and Equipment, including intangible assets and capital advances, amounted to ₹1,743.52 lakhs, a reduction from ₹6,845.14 lakhs, suggesting lower capital spending. Investment in Shares increased to ₹422.43 lakhs from ₹212.15 lakhs. The company received ₹495.85 lakhs from the sale of Property, Plant, and Equipment, a significant increase from ₹195.64 lakhs in the previous year. Interest received from investments increased to ₹238.62 lakhs, while dividend received was nil compared to ₹102.44 lakhs in 2023.

Overall, the net cash used in investing activities was ₹1,431.48 lakhs, a notable improvement from ₹6,736.52 lakhs in 2023, reflecting a reduced outflow in capital expenditures.

Financing Activities:

Financing activities saw substantial changes, including proceeds from a right issue of ₹3,655.17 lakhs, which was not present in 2023. The company secured ₹6,367.11 lakhs from long-term borrowings, a decrease from ₹14,315.39 lakhs in the prior year. Repayments of long-term loans amounted to ₹5,121.34 lakhs, compared to ₹6,122.11 lakhs in 2023. There were no proceeds from or repayments of deposits from related parties, unlike the previous year’s repayment of ₹878.03 lakhs. The company had a net inflow of ₹1,524.83 lakhs from short-term borrowings, a decrease from ₹2,385.61 lakhs. There was a slight outflow of ₹137.43 lakhs related to non-controlling interests, contrasting with an inflow of ₹3.52 lakhs in 2023. Dividend payments were reduced to ₹19.99 lakhs from ₹39.47 lakhs, and finance costs increased to ₹3,756.54 lakhs from ₹3,008.66 lakhs.

The net cash flow from financing activities was ₹2,511.81 lakhs, down from ₹6,656.25 lakhs, reflecting a lower inflow primarily due to reduced borrowings and financing activities.

Overall Cash Position:

The company experienced a significant increase in cash and cash equivalents, with a net increase of ₹3,760.79 lakhs, compared to a decrease of ₹631.02 lakhs in 2023. The opening balance of cash and cash equivalents was ₹310.59 lakhs, which grew to ₹4,071.38 lakhs by year-end, showing a strong improvement in liquidity.

 Financial Ratios of The Ramaraju Surgical Cotton Mills

Here is a summary of the financial and operational metrics for The Ramaraju Surgical Cotton Mills Limited for the year 2024 & 2023:

Debtors Turnover Ratio (Days):

The Debtors Turnover Ratio measures how efficiently a company collects receivables. It is expressed in days, indicating the average number of days it takes to collect payment from customers. For 2024, the ratio is 52 days, up from 36 days in 2023. This increase suggests a slower collection period, indicating potential issues with receivables management or credit policies, which may be affecting liquidity and operational efficiency.

Inventory Turnover Ratio (Days):

The Inventory Turnover Ratio, expressed in days, shows the average time inventory remains unsold. In 2024, it stands at 120 days, compared to 101 days in 2023. This increase in days signifies slower inventory turnover, possibly due to higher stock levels or decreased sales efficiency. It may suggest potential overstocking or declining demand for the company 's products, impacting overall working capital.

Interest Coverage Ratio:

The Interest Coverage Ratio assesses a company 's ability to meet its interest obligations from operating income. For 2024, the ratio is -0.17, compared to -0.12 in 2023. Both figures are negative, indicating that the company’s operating income is insufficient to cover its interest expenses. This worsening ratio highlights severe financial distress and a higher risk of default on interest payments.

Current Ratio:

The Current Ratio measures a company 's ability to cover short-term liabilities with short-term assets. In 2024, the ratio is 1.19, up from 1.02 in 2023. Although the increase suggests improved liquidity and a stronger ability to meet short-term obligations, a ratio above 1.0 indicates that the company has more current assets than current liabilities, which is generally favorable.

Debt-Equity Ratio:

The Debt-Equity Ratio indicates the proportion of debt used relative to equity in financing the company’s assets. For 2024, the ratio is 4.65, compared to 4.38 in 2023. The increase reflects a higher reliance on debt relative to equity, suggesting elevated financial leverage. This higher ratio increases the company 's financial risk, as it indicates a greater burden of debt compared to shareholder equity.

Operating Profit Margin:

The Operating Profit Margin measures the percentage of revenue that remains after covering operating expenses. In 2024, the margin is 8.34%, down from 9.64% in 2023. The decrease indicates a decline in operating profitability, possibly due to rising operating costs or lower revenue, which could negatively impact overall financial performance.

Net Profit Margin:

The Net Profit Margin shows the percentage of revenue remaining after all expenses, including taxes and interest. For 2024, it is -10.41%, worsening from -7.36% in 2023. The negative margin signifies that the company is not profitable, with losses growing compared to the previous year. This decline in profitability could be due to high operating costs, financial expenses, or other factors impacting the bottom line.

Return on Net Worth:

The Return on Net Worth ratio measures how effectively the company uses shareholders ' equity to generate profit. In 2024, it stands at -41.60%, compared to -28.70% in 2023. The larger negative return indicates that the company is generating substantial losses relative to its net worth, reflecting poor financial performance and inefficient use of equity.

Total Debt/EBITDA:

This ratio evaluates the company 's total debt relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). For 2024, it is 14.12, significantly higher than 10.02 in 2023. The increased ratio indicates a higher level of debt relative to earnings, suggesting that the company may struggle to service its debt and is facing increased financial pressure.

Return on Capital:

The Return on Capital measures the return generated on capital employed in the business. In 2024, it is -0.02%, down from 0.33% in 2023. The negative return indicates that the company is not generating a positive return on its capital investments, reflecting inefficiencies and poor capital utilization that contribute to financial underperformance.