Travancore Rubber Annual Reports, Balance Sheet and Financials

The Travancore Rubber and Tea Company Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Shareholder 's Fund
Share Capital	41	41
Reserves and Surplus	48870.04	49381.68
Non-Current liabilities
Long-term Borrowings	0	15.65
Long-term Provisions	1198.81	1121.75
Deferred Tax Liabilities (Net)	0.74	0
Current Liabilities
Short-term Borrowings	853.01	875.08
Trade Payables	57.03	29.35
Other Current Liabilities	387.82	424.09
Short-term Provisions	1881.74	1495.64
Total Equity and Liabilities	53290.19	53384.24
Non-Current Assets
Property, Plant and Equipment	52104.96	52159.92
Intangible Assets	0	0.68
Capital Work-in Progress	533.65	604.88
Non-current Investments	72.44	189.32
Deferred Tax Assets (Net)	0	2.88
Long-term Loans and Advances	47.46	47.46
Current Assets
Inventories	343.29	203.49
Trade Receivables	5.85	16.28
Cash and Cash Equivalents	17.92	5.33
Other Bank Balances	24.24	24.24
Short-term Loans and Advances	125.33	117.51
Other Current Assets	15.05	12.25
Total Assets	53290.19	53384.24

 The Travancore Rubber and Tea Company Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Income
Revenue from Operations	2230.43	1912.91
Other Income	88.94	23.7
Total Income	2319.37	1936.61
Expenses
Changes in Inventories	-140.79	13.08
Employee Benefits Expense	2307.51	1925.86
Finance Cost	63.34	51.59
Depreciation and Amortization Expense	175.5	192.64
Other Expenses	421.82	468.33
Total Expenses	2827.38	2651.5
Profit Before Tax	-508.01	-714.89
Deferred Tax	3.63	0.43
Profit/(Loss) for the Year	-511.64	-715.32
Earnings Per Equity Share
Basic	-124.79	-174.47
Diluted	-124.79	-174.47

 The Travancore Rubber and Tea Company Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit / (Loss) Before Tax	-508.01	-714.89
Adjustments:
Depreciation and Amortization	175.5	192.64
Net Gain on Sale of Investments	-48.01	-0.32
Net Gain on Sale of Property, Plant and Equipment	-14.7	0
Interest Income	-3.82	-3.7
Dividend Income	-0.24	-0.69
Finance Costs	63.34	51.59
Operating Profit before Changes in Working Capital	-335.94	-475.37
(Increase) / Decrease in Trade Receivables	10.43	23.18
(Increase) / Decrease in Inventories	-139.8	25.46
(Increase) / Decrease in Other Receivables	-8.59	-13.21
Increase / (Decrease) in Trade Payables	27.68	7.77
Increase / (Decrease) in Other Payables	426.89	390.09
Cash Generated from Operations	-19.33	-42.08
Taxes Paid (Net)	-2.04	0.68
Net Cash Flows from Operating Activities	-21.37	-41.4
Cash Flows from Investing Activities
Purchase of Property, Plant and Equipment (Incl. Capital WIP)	-55.11	-6.42
Proceeds from Sale of Property, Plant & Equipment	21.18	-
(Purchase)/Sale of Investments	164.89	8.7
Interest Received	3.82	3.7
Dividend Received	0.24	0.69
Net Cash Flows from Investing Activities	135.02	6.67
Cash Flows from Financing Activities
Proceeds/(Repayment) of Borrowings	-97.72	31.69
Loans from Related Parties	60	127.5
Repayment of Loans from Related Parties	-	-81.5
Interest Paid	-63.34	-51.59
Dividend Paid	-	-1.19
Net Cash Flows from Financing Activities	-101.06	24.91
Net Increase / (Decrease) in Cash & Cash Equivalents	12.59	-9.82
Cash & Cash Equivalents at the Beginning of the Year	29.57	39.39
Cash & Cash Equivalents at the End of the Year	42.16	29.57
Reconciliation of Cash & Cash Equivalents
Cash & Cash Equivalents	17.92	5.33
Other Bank Balances	24.24	24.24
Total	42.16	29.57

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

Cash Flow from Operating Activities

Operating cash flow represents the cash inflows and outflows from the company’s primary business operations. The company reported a net loss before tax of ₹-508.01 lakh in 2023-24, an improvement from ₹-714.89 lakh in 2022-23. To adjust for non-cash items, depreciation and amortization of ₹175.5 lakh (₹192.64 lakh in 2022-23) were added back, while finance costs of ₹63.34 lakh (₹51.59 lakh in 2022-23) contributed to operational expenses. Gains from investments and asset sales reduced cash inflows, with a net gain of ₹48.01 lakh on investments and ₹14.7 lakh on asset sales in 2023-24.

Working capital changes significantly influenced cash flow, particularly in trade receivables, inventories, and payables. The increase in inventories (₹-139.8 lakh) in 2023-24 led to cash outflows, contrasting with the ₹25.46 lakh reduction in 2022-23. However, a substantial increase in other payables (₹426.89 lakh) helped offset this. Despite these adjustments, the company recorded a negative cash flow from operations of ₹-21.37 lakh in 2023-24, a slight improvement from the ₹-41.4 lakh outflow in 2022-23.

 

Cash Flow from Investing Activities

Investing activities reflect cash used for and generated from the acquisition and disposal of long-term assets and investments. In 2023-24, the company invested ₹-55.11 lakh in property, plant, and equipment (PPE), a notable increase compared to the ₹-6.42 lakh investment in 2022-23. However, proceeds from the sale of PPE stood at ₹21.18 lakh in 2023-24, whereas there were no sales recorded in 2022-23.

A significant factor driving positive cash flow from investing activities was the sale of investments worth ₹164.89 lakh in 2023-24, compared to just ₹8.7 lakh in 2022-23. Additionally, interest and dividend income remained stable at ₹3.82 lakh and ₹0.24 lakh, respectively. As a result, the company recorded a positive net cash flow from investing activities of ₹135.02 lakh in 2023-24, a substantial increase from just ₹6.67 lakh in 2022-23.

 

Cash Flow from Financing Activities

Financing activities represent cash movements related to borrowings, equity, and dividends. The company focused on debt reduction in 2023-24, repaying ₹97.72 lakh in borrowings, compared to an inflow of ₹31.69 lakh in 2022-23. Loans from related parties also declined, with ₹60 lakh received in 2023-24, compared to ₹127.5 lakh in 2022-23. No repayments to related parties were made in 2023-24, whereas ₹81.5 lakh was repaid in 2022-23.

Interest paid increased to ₹63.34 lakh in 2023-24, up from ₹51.59 lakh in 2022-23, reflecting higher debt servicing costs. Additionally, no dividends were paid in 2023-24, whereas ₹1.19 lakh was paid in 2022-23. Due to these factors, the company reported a net cash outflow from financing activities of ₹-101.06 lakh in 2023-24, in contrast to a positive inflow of ₹24.91 lakh in 2022-23.

 

Net Change in Cash & Cash Equivalents

Combining cash flows from all activities, the company achieved a net increase in cash and cash equivalents of ₹12.59 lakh in 2023-24, compared to a decline of ₹9.82 lakh in 2022-23. The closing cash balance stood at ₹42.16 lakh as of March 31, 2024, up from ₹29.57 lakh in March 2023. This consisted of ₹17.92 lakh in cash equivalents and ₹24.24 lakh in other bank balances.

Financial Ratios of The Travancore Rubber and Tea Company Ltd

Particulars	2023-24	2022-23
Current Ratio	0.17	0.13
Debt Equity Ratio	0.02	0.02
Debt Service Coverage Ratio	-4.13	-9.13
Return on Equity Ratio	-1.04%	-1.44%
Inventory Turnover Ratio	-0.09	0.8
Trade Receivables Turnover Ratio	201.58	68.64
Trade Payables Turnover Ratio	-0.57	6.81
Net Capital Turnover Ratio	-0.88	-0.85
Net Profit Ratio	-22.94%	-37.39%
Return on Capital Employed	-0.89%	-1.31%
Return on Investment	0.37	0.01

Here is a summary of the financial and operational metrics for The Travancore Rubber and Tea Company for the year 2024:

Current Ratio
The current ratio measures a company's ability to pay short-term obligations with its current assets. A ratio of 0.17 in 2023-24, compared to 0.13 in 2022-23, indicates that the company has slightly improved its liquidity position but still has very low current assets relative to current liabilities. A low current ratio suggests potential liquidity concerns.

Debt-Equity Ratio
This ratio assesses a company's financial leverage by comparing its total debt to shareholders' equity. The value remained constant at 0.02 for both years, suggesting that the company relies minimally on debt financing and is primarily funded by equity. A low debt-equity ratio is generally favorable as it implies lower financial risk.

Debt Service Coverage Ratio (DSCR)
The DSCR measures a firm's ability to cover debt obligations with its operating income. A negative DSCR of -4.13 in 2023-24 and -9.13 in 2022-23 indicates that the company is struggling to generate enough earnings to service its debt. The slight improvement suggests a better financial position compared to the previous year but still reflects financial distress.

Return on Equity (ROE) Ratio
ROE measures the profitability of a company in relation to shareholders' equity. The negative ROE of -1.04% in 2023-24 and -1.44% in 2022-23 implies that the company is generating losses instead of returns for shareholders. Although there is a slight improvement, the negative values indicate poor profitability and efficiency in utilizing shareholder funds.

Inventory Turnover Ratio
This ratio indicates how efficiently a company manages its inventory by showing how many times inventory is sold and replaced over a period. The significant drop from 0.8 in 2022-23 to -0.09 in 2023-24 suggests issues in inventory management, possibly due to declining sales or overstocking issues.

Trade Receivables Turnover Ratio
This ratio measures how efficiently a company collects payments from customers. The sharp increase from 68.64 in 2022-23 to 201.58 in 2023-24 suggests that the company has improved its credit collection efficiency, possibly due to stricter credit policies or increased cash-based transactions.

Trade Payables Turnover Ratio
This ratio measures how frequently a company pays off its suppliers. The drop from 6.81 in 2022-23 to -0.57 in 2023-24 is concerning, indicating delays in supplier payments or potential financial struggles in meeting obligations.

Net Capital Turnover Ratio
This ratio assesses how efficiently a company utilizes its working capital to generate revenue. The values remained almost the same, at -0.85 in 2022-23 and -0.88 in 2023-24, indicating inefficiencies in working capital management and potential financial challenges.

Net Profit Ratio
The net profit ratio indicates the percentage of revenue that remains as profit after deducting all expenses. The improvement from -37.39% in 2022-23 to -22.94% in 2023-24 is positive, but the continued negative value shows that the company is still operating at a loss.

Return on Capital Employed (ROCE)
ROCE measures how effectively a company utilizes its capital to generate profits. The negative values of -1.31% in 2022-23 and -0.89% in 2023-24 indicate that the company is not generating sufficient returns on its capital investments.

Return on Investment (ROI)
ROI evaluates the profitability of investments. The increase from 0.01 in 2022-23 to 0.37 in 2023-24 indicates improved returns, suggesting that the company’s investments are becoming more profitable.