Twenty First Century Securities Annual Reports, Balance Sheet and Financials

Twenty First Century Securities Limited Balance Sheet (In Rs Thousands)

Twenty First Century Securities Limited Profit & Loss Statement (In Rs Thousands)

Twenty First Century Securities Limited Consolidated Cash Flow Statement (In Rs Thousands)

Here is a summary of the Cash Flow Statement for the years 2022 and 2021:

1. Profit Before Tax (PBT) Decline: The PBT as per the Statement of Profit and Loss Account plunged from 72.02 in 2021 to -215.53 in 2022. This steep decline indicates a significant deterioration in the company 's financial performance, possibly due to various factors such as decreased sales, increased expenses, or other operational challenges.

2. Loss on Sale of Assets: In 2021, there was a loss on the sale of assets amounting to 283.99, which was absent in 2022. This loss negatively impacted the operating profit before working capital changes in 2021, which stood at 476.47, while in 2022, the operating profit was significantly lower at -95.07.

3. Operating Profit Before Working Capital Changes: The operating profit before considering working capital changes dropped substantially from a positive figure of 476.47 in 2021 to a negative figure of -95.07 in 2022. This suggests a significant decrease in the company 's profitability from its core operations, indicating potential operational inefficiencies or challenges.

4. Adjustments for Working Capital Changes: Various adjustments were made for factors like loans and advances, trade receivables, tax paid (net of provision), and current liabilities. These adjustments reflect changes in the company 's working capital management and financial obligations, which can significantly impact its cash flow from operating activities.

5. Cash Flow from Operating Activities: The cash flow from operating activities experienced a notable decline, moving from -234.04 in 2021 to -267.10 in 2022. This indicates that the company generated less cash from its core business operations in 2022 compared to the previous year, which could pose liquidity challenges or reflect a need for improved operational efficiency.

6. Investing Activities: There were no reported activities in the investing segment in 2022, while in 2021, there were activities such as the purchase of fixed assets and sale/purchase of investments, resulting in a cash outflow of -276.53.

7. Financing Activities: In terms of financing activities, there was a net outflow of cash amounting to -233.82 in 2022, compared to a net inflow of 769.92 in 2021. This significant change suggests variations in the company 's financing strategies or requirements between the two years.

8. Net Increase in Cash and Cash Equivalents: The net increase in cash and cash equivalents turned negative in 2022, amounting to -500.92, in contrast to a positive increase of 259.35 in 2021. This implies that the company 's cash position deteriorated in 2022, indicating potential financial challenges or cash flow constraints.

9. Closing Balance of Cash and Cash Equivalents: Despite the negative net increase in cash and cash equivalents, the closing balance of cash and cash equivalents was still positive, albeit lower than the previous year, standing at 1,399.87 in 2022 compared to 1,900.79 in 2021. This suggests that the company maintained a certain level of liquidity but experienced a decrease in cash reserves over the year.

Financial Ratios

Here is a summary of Financial Ratios for the years 2022 and 2021:

1. Current Ratio: The current ratio measures a company 's ability to pay its short-term liabilities with its short-term assets. In 2022, the current ratio decreased to 128.02 from 150.43 in 2021. This decline suggests a potential weakening of the company 's liquidity position, indicating a reduction in its ability to cover short-term obligations with its current assets.

2. Debt Service Coverage Ratio (DSCR): DSCR indicates the company 's ability to cover its debt obligations with its operating income. A DSCR of -0.32 in 2022 indicates that the company 's operating income was insufficient to cover its debt obligations, suggesting potential financial distress. In contrast, a DSCR of 3.49 in 2021 signifies a healthy ability to cover debt obligations with operating income.

3. Return on Equity (ROE): ROE measures the profitability of a company relative to its shareholder equity. A negative ROE of -0.03% in 2022 indicates a loss on equity investment, while a neutral ROE of 0.00% in 2021 implies no profitability from shareholder equity.

4. Trade Receivable Turnover Ratio: This ratio indicates how efficiently a company collects its trade receivables. A decrease in the turnover ratio from 1.65 in 2021 to 1.3 in 2022 suggests a slowdown in the collection of receivables, potentially indicating issues with credit policies or customer payments.

5. Net Capital Turnover Ratio: The net capital turnover ratio measures the efficiency of capital investment in generating revenue. The ratio remained constant at 0.01 in both 2022 and 2021, indicating consistent efficiency in generating revenue relative to the capital invested.

6. Net Profit Ratio: The net profit ratio measures the company 's net profit as a percentage of its revenue. A significant decline in the net profit ratio from 1.69% in 2021 to -25.04% in 2022 suggests a substantial decrease in profitability, possibly due to increased expenses, decreased revenue, or other operational challenges.

7. Return on Capital Employed (ROCE): ROCE evaluates the efficiency of capital utilization in generating profits. A negative ROCE of -0.02% in 2022 indicates inefficiency in capital utilization resulting in a loss, while a minimal positive ROCE of 0.02% in 2021 suggests marginal profitability relative to the capital employed.

Dividend History (NA)