Transline Technologies Annual Reports, Balance Sheet and Financials

Transline Technologies Limited Ltd Balance Sheet (Rs in Lakhs) 

Transline Technologies Limited Ltd Profit & Loss Statement (Rs in Lakhs) 

Transline Technologies Limited Cash Flow Statement (Rs in Lakhs) 

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

Cash Flows from Operating Activities 

The profit before extraordinary items and tax for the period 2023-2024 stands at ₹4,876.14, compared to ₹1,229.94 in the previous period. Adjustments to reconcile profit include depreciation and amortization expenses of ₹148.91 and unrealized foreign exchange gains of ₹1.13 in 2023-2024. Non-cash adjustments total ₹279.42 for the current period and ₹166.61 for the previous one, leading to total adjustments to profit of ₹429.46 and ₹287.88, respectively. 

Adjustments for working capital show significant movements. There was a decrease in inventories of ₹403.64 in 2023-2024, while trade receivables saw a considerable increase of ₹9,939.59. Similarly, other current assets increased by ₹2,191.32, and trade payables rose by ₹3,856.97. These adjustments result in a total working capital adjustment of ₹-8,810.91 for 2023-2024 and ₹-1,791.81 for 2022-2023. After considering these adjustments, net cash flows from operations are negative at ₹-3,505.31 for 2023-2024 and ₹-298.99 for the previous year. 

Income taxes paid amounted to ₹466.44 in 2023-2024, leading to net cash outflows from operating activities of ₹-3,805.19 in the current period and ₹-606.09 in 2022-2023. 

Cash Flows from Investing Activities 

Investing activities reflect cash inflows and outflows associated with the purchase and sale of assets. In 2023-2024, proceeds from the sale of tangible assets amounted to ₹6.25, while purchases of tangible and intangible assets totaled ₹985.97 and ₹7.69, respectively. This resulted in a net cash outflow of ₹-987.17 for investing activities, compared to a positive inflow of ₹168.48 in 2022-2023. 

Cash Flows from Financing Activities 

Financing activities saw proceeds from issuing shares totaling ₹1,822.12 and borrowings of ₹3,452.34 in 2023-2024. Interest paid was ₹266.91. Net cash inflows from financing activities for the current year amounted to ₹5,007.55, compared to an outflow of ₹-83.27 in the previous year. 

Net Increase (Decrease) in Cash and Cash Equivalents 

The net cash inflow before the effect of exchange rate changes was ₹215.19 in 2023-2024, contrasting with a net outflow of ₹-521.88 in 2022-2023. As a result, the cash and cash equivalents at the end of the period increased to ₹229.75 in 2023-2024 from ₹14.56 in 2022-2023. 

Financial Ratios of Transline Technologies Limited 

Here is a summary of the financial and operational metrics for the year 2024 & 2023: 

Current Ratio (1.61 times) 

The current ratio indicates the company’s ability to meet its short-term liabilities using its short-term assets. A ratio of 1.61 suggests the company has a strong liquidity position and is well-equipped to cover its current liabilities. 

Debt-Equity Ratio (2.66 times) 

A debt-equity ratio of 2.66 indicates the company relies heavily on debt financing compared to equity. While this might increase financial risk, it could also signal a strategy to leverage debt for growth. 

Debt Service Coverage Ratio (1.28 times) 

The debt service coverage ratio reflects the company’s ability to meet debt obligations from its earnings. A ratio of 1.28 suggests the company can adequately cover its debt service requirements, but there is limited room for financial stress. 

Return on Equity (85.44%) 

The return on equity is exceptionally high at 85.44%, indicating that shareholders are receiving substantial returns relative to their equity investment. This is a strong indicator of profitability and efficiency in using equity capital. 

Inventory Turnover Ratio (20.68 times) 

An inventory turnover of 20.68 shows the company is efficiently managing inventory and converting it into sales at a rapid rate. This is a positive sign for operational efficiency. 

Trade Receivables Turnover Ratio (2.26 times) 

The trade receivables turnover ratio suggests that the company collects its receivables approximately 2.26 times a year. While this is acceptable, there may be room to improve the credit policies for faster collections. 

Trade Payables Turnover Ratio (3.08 times) 

The trade payables turnover ratio of 3.08 indicates the company is paying its suppliers relatively quickly. While timely payments are favorable, the company may be foregoing cash flow optimization by not utilizing the full payment terms. 

Net Capital Turnover Ratio (0.22 times) 

A net capital turnover of 0.22 suggests the company generates ₹0.22 in revenue for every ₹1 of working capital. This is a low ratio, which could indicate underutilization of working capital. 

Net Profit Ratio (15.60%) 

A net profit ratio of 15.60% reflects strong profitability. It indicates that the company is converting a significant portion of its revenue into profits, showcasing efficient cost management. 

Return on Capital Employed (54.17%) 

A return on capital employed of 54.17% demonstrates excellent utilization of both debt and equity to generate profits. This high ratio highlights effective management and robust profitability.