The Tropical Plantations Annual Reports, Balance Sheet and Financials

The Tropical Plantation Limited Standalone Balance Sheet (Rs in Hundreds)

Particulars	31-03-2025	31-03-2024
Equity
Share Capital	20,000.00	20,000.00
Reserves & Surplus	14,29,025.63	13,65,454.99
Non-Current Liabilities	-	-
Current Liabilities
Short Term borrowings	4,25,000.00	4,25,000.00
Trade Payables
Total outstanding dues of Micro & Small enterprises	53,451.00	79,898.10
Other current liabilities	2,26,644.10	2,45,577.77
Total Equity & Liabilities	21,54,120.73	21,35,930.86
Non-Current Assets
Tangible assets	8,51,293.05	8,11,192.34
Capital work in progress	3,04,114.34	2,91,780.80
Deferred tax assets	1,813.00	1,813.00
Other Non-Current Assets	1,24,298.42	1,22,863.27
Current Assets
Current Investments	2,22,227.07	2,62,308.42
Inventories	4,16,990.67	4,39,123.82
Trade Receivables	11,208.48	12,543.10
Cash & cash equivalents	1,44,282.52	1,05,571.98
Short Term Loans & Advances	77,893.18	88,734.13
Total Assets	21,54,120.73	21,35,930.86

The Tropical Plantation Limited Standalone Profit & Loss Statement (Rs in Hundreds)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	22,98,387.43	21,17,708.85
Other Income	3,85,470.58	4,13,703.50
Total Income	26,83,858.01	25,31,412.35
Expenses
Purchases	4,729.62	-
Consumption	93,230.84	1,33,725.62
Changes in inventory	19,402.05	-1,29,993.58
Employee Benefit Expenses	18,76,837.86	19,52,791.58
Finance Costs	51,000.00	50,632.60
Depreciation & amortization expense	31,594,81	29,733,09
Other Expenses	5,43,492.19	5,44,762.34
Total Expenses	26,20,287.37	25,81,651.65
Profit before extraordinary items and tax	63,570.64	-50,239.30
Extraordinary items	-	4,55,986.71
Profit Before Tax	63,570.64	4,05,747.41
Profit/(Loss) for the period	63,570.64	4,05,747.41
Earning per share
Basic & Diluted	31.79	202.87

The Tropical Plantation Limited Standalone Cash Flow Statement (Rs in Hundreds)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit Before Tax	63,570.63	4,05,747.41
Adjustments:
Depreciation	31,594.81	29,733.09
Profit on sale Of Investments	-11,775.40	-1,32,993.94
Provision for Gratuity	-	-4,55,986.71
Profit on sale of trees	-57,362.42	-37,479.98
Profit on sale of Assets	-	-3,683.64
Operating profit before working capital changes:	26,027.62	-1,94,663.77
Adjustment§ for:
(Increase)/ Decrease in Other Non-Current Assets	-10,532.63	-1,584.20
(Increase)/ Decrease in Inventory	22,133,15	-1,44,970.75
(increase)/Decrease in Trade receivables	1,334.61	23,932.54
Increase/( Decrease) in Trade Payables	-26,447.10	26,151.08
Increase/ (Decrease) in Other Current Liabilities	-18,933.67	-3,749.18
(Increase)/ Decrease in Short Term Advances	10,840.95	-22,087.55
Taxes paid	9,284.50	19,082.55
Net cash from Operating Activities	13,707.43	-2,97,889.28
Cash flow from Investing Activities
Purchase Of Fixed Assets	-1,01,576.64	-1,33,117.56
Sale Of Fixed Assets	-	5,084.74
Sale of Trees	74,910.00	50,820.00
Purchase of  Investments	-	-94,302.15
Sale Of Investments	51,669.75	4,38,975.63
Net cash from investing activities	25,003.11	2,67,460.66
Cash flow from Financing Activities:
Loans Taken	-	25,000.00
Net cash from financing activities	-	25,000.00
Net increase in cash a cash equivalents	38,710.54	-5,428.62
Cash & Cash equivalents at beginning of the year	1,05,571.98	1,11,000.60
Cash & Cash equivalents at end of the year	1,44,282.52	1,05,571.98

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company generated a positive operating cash flow of ₹13,707.43 (hundreds) in FY 2025, a significant turnaround from a large negative cash flow of ₹2,97,889.28 in FY 2024.

This improvement is mainly due to better working capital management. Although net profit before tax dropped sharply (₹63,570.63 vs ₹4,05,747.41), the impact of large non-cash and non-operating adjustments reduced. Notably, there was no gratuity provision charge in 2025, whereas FY 2024 had a heavy negative adjustment.

Working capital changes supported cash flow: inventory decreased (cash inflow), short-term advances reduced, and receivables slightly improved. However, increases in trade payables and other liabilities resulted in cash outflows. Overall, despite weaker profitability, cash generation from core operations improved due to normalization of adjustments and better asset-liability management.

 

Cash Flow from Investing Activities

Net cash from investing activities stood at ₹25,003.11 in FY 2025, compared to a much higher ₹2,67,460.66 in FY 2024.

The company continued investing in fixed assets (₹1,01,576.64 outflow), though slightly lower than last year. The key inflows came from sale of trees (₹74,910.00) and sale of investments (₹51,669.75).

In FY 2024, the unusually high inflow was driven by a large sale of investments (₹4,38,975.63), which did not recur at the same scale in FY 2025. Therefore, while investing activities remain cash-positive, the decline indicates reduced one-time gains and a more moderate level of asset monetization.

 

Cash Flow from Financing Activities

There was no cash flow from financing activities in FY 2025, compared to an inflow of ₹25,000 in FY 2024 due to loans taken.

This suggests that the company did not rely on external borrowing in FY 2025 and possibly focused on internal cash generation. The absence of financing inflows indicates greater financial independence but also no fresh capital infusion for expansion or liquidity support.

 

Net Change in Cash & Cash Equivalents

The company reported a net increase in cash of ₹38,710.54 in FY 2025, reversing the decline of ₹5,428.62 in FY 2024.

This improvement is primarily driven by positive operating and investing cash flows. As a result, closing cash balance increased to ₹1,44,282.52, up from ₹1,05,571.98. This reflects stronger liquidity and improved cash position at year-end.

Financial ratios of The tropical Plantation Limited:

Particulars	31-03-2025	31-03-2024
Current ratio	1.24	1.21
Debt equity ratio	0.29	0.31
Debt service coverage ratio	2.87	9.60
Return on equity ratio	0.04	0.34
Inventory turnover ratio	5.52	6.45
Trade receivables ratio	193.54	86.40
Net capital turnover ratio	13.72	13.42
Net profit ratio	0.03	0.19
Return on capital employed	0.08	0.33
Return on Investments	0.05	0.51

Summary of the Ratios for the years 2025 and 2024:

Current ratio
The current ratio has slightly improved from 1.21 in 2024 to 1.24 in 2025. This indicates a marginal strengthening in the company’s short-term liquidity position, suggesting that it is slightly better equipped to meet its current liabilities with current assets. However, the increase is minimal, and the ratio remains just above 1, which is generally considered a tight liquidity position rather than a comfortable one.

 

Debt equity ratio
The debt-equity ratio has decreased from 0.31 to 0.29, reflecting a modest reduction in financial leverage. This suggests that the company is relying slightly less on borrowed funds and more on equity financing. A lower ratio generally indicates improved financial stability and lower risk, which is a positive sign for creditors and investors.

 

Debt service coverage ratio
The debt service coverage ratio has dropped sharply from 9.60 in 2024 to 2.87 in 2025. This significant decline indicates a reduced ability to service debt obligations from operating income. While a ratio above 1 still implies that the company can cover its debt payments, the steep fall signals deteriorating cash flow strength and increased financial pressure.

 

Return on equity ratio
The return on equity has fallen drastically from 0.34 to 0.04. This suggests a major decline in profitability relative to shareholders’ funds. It indicates that the company is generating significantly lower returns for its equity investors, which could negatively impact investor confidence and valuation.

 

Inventory turnover ratio
The inventory turnover ratio has decreased from 6.45 to 5.52. This implies that inventory is being sold and replaced less frequently than before, indicating slower movement of goods. It may suggest weaker demand, overstocking, or inefficiencies in inventory management.

 

Trade receivables ratio
The trade receivables ratio has increased substantially from 86.40 to 193.54. This indicates that the company is collecting receivables much faster or has significantly reduced outstanding receivables. While higher turnover is generally positive, such a sharp increase may also reflect tighter credit policies or changes in sales structure.

 

Net capital turnover ratio
The net capital turnover ratio has slightly improved from 13.42 to 13.72. This suggests marginally better utilization of working capital to generate revenue. The company appears to be maintaining efficiency in using its capital base to support sales.

 

Net profit ratio
The net profit ratio has declined sharply from 0.19 to 0.03. This indicates a substantial drop in profitability, meaning the company is earning significantly less profit per unit of revenue. Rising costs, reduced margins, or operational inefficiencies could be contributing factors.

 

Return on capital employed
Return on capital employed (ROCE) has decreased from 0.33 to 0.08. This reflects a significant decline in the company’s ability to generate returns from its total capital. It indicates reduced operational efficiency and weaker overall performance.

 

Return on Investments
Return on investments has fallen sharply from 0.51 to 0.05. This suggests that the company’s investment portfolio is yielding much lower returns compared to the previous year. It may indicate poor investment decisions or unfavourable market conditions.