Vadilal Chemicals Annual Report, Balance Sheet & Revenue

Vadilal Chemicals Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
ASSETS
Non-Current Assets
Property, Plant & Equipment’s	1,166.88	859.48
Intangible Assets	3.53	6.64
Right of Use Assets	40.55	1.9
Investments	58.36	49.4
Other Financial Assets	36.9	48.73
Non-Current Tax Assets	14.26	19.96
Other Non-Current Assets	16.61	15.25
Current Assets
Inventories	264.93	147.3
Trade receivables	1,170.32	1,347.09
Cash and Cash Equivalents	33.52	43.3
Other Balances with Banks	122.94	116.35
Other Financial assets	0.2	0.32
Current Tax Assets	27.94	-
Other Current Assets	1,265.16	690.28
Total Assets	4,222.10	3,346.00
EQUITY AND LIABILITIES
Equity
Equity Share Capital	487.4	487.4
Other Equity	1,229.55	934.88
Non-Current Liabilities
Borrowings	919.85	697.32
Lease Liabilities	36.3	-
Provisions	14.67	13.37
Deferred Tax Liabilities (Net)	90.21	59.34
Current Liabilities
Borrowings	994.31	687.56
Lease Liabilities	7.9	2.47
Trade Payables
Total outstanding dues of micro enterprises and small enterprises	14.45	4.32
Total outstanding dues of creditors other than micro enterprises and small enterprises	48.88	56.93
Other Financial Liabilities	299.77	299.65
Provisions	22.74	25.44
Current Tax Liabilities (Net)	-	7.47
Other Current Liabilities	56.07	69.85
Total Equity & Liabilities	4,222.10	3,346.00

Vadilal Chemicals Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
Revenue from operations	8,834.41	7,097.17
Other Income	51.97	58.57
Total Income	8,886.38	7,155.74
EXPENSES
Cost of materials consumed	4,382.81	2,631.13
Purchase of Stock-in-Trade	2,454.06	2,684.00
Changes in inventories of Finished Goods & Stock in trade	-89.73	16.29
Employee Benefits Expense	348.84	282.5
Finance Cost	177.42	114.44
Depreciation and Amortization Expense	117.97	87.57
Other Expenses	1,070.27	928.01
Total Expenses	8,461.64	6,743.94
Profit Before Tax	424.74	411.8
Current tax	72.84	93.33
Deferred tax	30.88	11.58
Profit For the Year	321.02	306.89
Other Comprehensive Income
Remeasurements of the defined benefit plans	-2.65	-2.25
Income Tax relating to items that will not be reclassified to profit or loss	0.67	0.57
Total Other Comprehensive Income	-1.98	-1.68
Total Comprehensive Income For the year	319.04	305.21
Earning per equity share: (Face value ` 10/- each)
Basic and diluted	6.59	6.3

Vadilal Chemicals Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
CASH FLOW FROM OPERATING ACTIVITIES
Profit Before Tax	424.74	411.8
Adjustment for:
Depreciation and Amortization Expense	117.97	87.57
Interest Income	-10.56	-13.24
Dividend Income	-0.3	-0.18
Finance Cost	177.42	114.44
(Profit) / Loss on sales of property, plants & equipment’s	-28.82	-22.17
Provision for Doubtful Debts & Advances	2.15	2.42
Decrease / (Increase) in fair value of investments	-8.96	-7.52
(Profit) / Loss from Partnership Firm	0.07	0.07
Remeasurements of the defined benefit plans	-2.65	-2.25
Operating Profit before working capital changes	671.06	570.94
Changes in Working Capital
(Increase) / Decrease in Inventories, Trade receivables, financial assets and other assets	-507.37	-759.47
Increase / (Decrease) in Trade Payables, financial liabilities, other liabilities and provisions	-12.96	63.39
Cash generated from operation	150.73	-125.14
Direct taxes Paid	-101.9	-87.94
Net cash flow from Operating Activity	48.83	-213.08
CASH FLOW FROM INVESTING ACTIVITIES
Capital Expenditure on property, plant and equipment	-433.72	-216.53
Proceeds from Sale of property, plant and equipment	52.08	35.65
Fixed Deposit with Bank	-6.59	116.78
Dividend Received	0.3	0.18
Interest Received	10.56	13.24
Net Cash used in Investing Activities	-377.37	-50.68
CASH FLOW USED IN FINANCING ACTIVITIES
Finance Cost	-172.65	-113.76
Dividend Paid	-24.37	-
Payment of Lease Liabilities	-13.5	-5.56
Proceed/(Repayment) of Current borrowings	306.75	461.71
Proceed/(Repayment) of Non-Current borrowings	222.53	-91.6
Net Cash used in Financing Activities	318.76	250.79
Net Increase/Decrease in Cash & Cash Equivalents	-9.78	-12.97
Cash & Cash Equivalents at The Beginning of The Year	43.3	56.27
Cash & Cash Equivalents at The End of The Year
Cash on Hand	3.28	4.49
Bank Balance	30.24	38.81
Fixed Deposits (Maturity Less Than 3 Months)	-	-
Total	33.52	43.3

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Cash Flow from Operating Activities

Profit Before Tax:

2023: ₹424.74 thousand

2022: ₹411.80 thousand

The net profit before tax shows a slight increase, indicating a stable profitability over the two years.

Adjustments for Non-Cash Items and Other Adjustments:

Depreciation and Amortization Expense:

2023: ₹117.97 thousand

2022: ₹87.57 thousand

This represents the allocation of the cost of tangible and intangible assets over their useful lives. The increase indicates more capitalized assets.

Interest Income:

2023: ₹-10.56 thousand

2022: ₹-13.24 thousand

Interest income is deducted as it does not involve cash outflow.

Dividend Income:

2023: ₹-0.30 thousand

2022: ₹-0.18 thousand

Dividends received are deducted from the operating cash flow as they are part of investing activities.

Finance Cost:

2023: ₹177.42 thousand

2022: ₹114.44 thousand

Represents interest paid on borrowings, added back to reconcile net profit to net cash flow from operating activities.

(Profit) / Loss on Sales of Property, Plants & Equipment:

2023: ₹-28.82 thousand

2022: ₹-22.17 thousand

Gains from the sale of assets are deducted as they are investing activities.

Provision for Doubtful Debts & Advances:

2023: ₹2.15 thousand

2022: ₹2.42 thousand

Provisions are added back as they do not involve actual cash outflow.

Decrease / (Increase) in Fair Value of Investments:

2023: ₹-8.96 thousand

2022: ₹-7.52 thousand

Changes in the fair value of investments are non-cash items.

(Profit) / Loss from Partnership Firm:

2023: ₹0.07 thousand

2022: ₹0.07 thousand

Represents the company’s share of profits or losses from its partnership firm.

Remeasurements of the Defined Benefit Plans:

2023: ₹-2.65 thousand

2022: ₹-2.25 thousand

Adjustments for actuarial gains or losses from defined benefit plans.

Operating Profit before Working Capital Changes:

2023: ₹671.06 thousand

2022: ₹570.94 thousand

Reflects the company 's ability to generate cash from its core business operations before changes in working capital.

Changes in Working Capital:

(Increase) / Decrease in Inventories, Trade Receivables, Financial Assets, and Other Assets:

2023: ₹-507.37 thousand

2022: ₹-759.47 thousand

Represents changes in current assets, indicating more cash tied up in inventory and receivables in 2023 compared to 2022.

Increase / (Decrease) in Trade Payables, Financial Liabilities, Other Liabilities, and Provisions:

2023: ₹-12.96 thousand

2022: ₹63.39 thousand

Represents changes in current liabilities, with a decrease in payables and provisions in 2023.

Cash Generated from Operations:

2023: ₹150.73 thousand

2022: ₹-125.14 thousand

Shows cash generated from operating activities before tax payments. Positive in 2023 compared to negative in 2022, indicating improved operational cash flow management.

Direct Taxes Paid:

2023: ₹-101.90 thousand

2022: ₹-87.94 thousand

Taxes paid, which are cash outflows, decreased slightly in 2023.

Net Cash Flow from Operating Activities:

2023: ₹48.83 thousand

2022: ₹-213.08 thousand

Positive cash flow in 2023 compared to negative in 2022, indicating better operational efficiency.

Cash Flow from Investing Activities

Capital Expenditure on Property, Plant, and Equipment:

2023: ₹-433.72 thousand

2022: ₹-216.53 thousand

Represents cash outflow for the purchase of fixed assets, which increased significantly in 2023.

Proceeds from Sale of Property, Plant, and Equipment:

2023: ₹52.08 thousand

2022: ₹35.65 thousand

Cash inflow from the sale of fixed assets increased, providing some liquidity.

Fixed Deposit with Bank:

2023: ₹-6.59 thousand

2022: ₹116.78 thousand

Represents net movement in fixed deposits, showing a slight cash outflow in 2023 compared to a substantial inflow in 2022.

Dividend Received:

2023: ₹0.30 thousand

2022: ₹0.18 thousand

Small dividend income contributing to cash inflow.

Interest Received:

2023: ₹10.56 thousand

2022: ₹13.24 thousand

Interest income received, showing a slight decrease in 2023.

Net Cash Used in Investing Activities:

2023: ₹-377.37 thousand

2022: ₹-50.68 thousand

Increased cash outflow in 2023 due to higher capital expenditures.

Cash Flow from Financing Activities

Finance Cost:

2023: ₹-172.65 thousand

2022: ₹-113.76 thousand

Represents interest paid on borrowings, showing an increase in 2023.

Dividend Paid:

2023: ₹-24.37 thousand

2022: ₹- thousand

Dividends paid in 2023, indicating a return to shareholders.

Payment of Lease Liabilities:

2023: ₹-13.50 thousand

2022: ₹-5.56 thousand

Lease liability payments increased in 2023.

Proceeds/(Repayment) of Current Borrowings:

2023: ₹306.75 thousand

2022: ₹461.71 thousand

Net proceeds from current borrowings, showing a decrease compared to 2022.

Proceeds/(Repayment) of Non-Current Borrowings:

2023: ₹222.53 thousand

2022: ₹-91.60 thousand

Represents net proceeds from non-current borrowings, positive in 2023 compared to a repayment in 2022.

Net Cash Used in Financing Activities:

2023: ₹318.76 thousand

2022: ₹250.79 thousand

Positive cash flow from financing activities, showing an increase in 2023.

Net Increase/Decrease in Cash & Cash Equivalents

Net Increase/Decrease:

2023: ₹-9.78 thousand

2022: ₹-12.97 thousand

Slightly lesser decrease in cash and cash equivalents in 2023 compared to 2022.

Cash & Cash Equivalents at the Beginning of the Year:

2023: ₹43.30 thousand

2022: ₹56.27 thousand

Higher opening balance in 2023.

Cash & Cash Equivalents at the End of the Year:

Cash on Hand:

2023: ₹3.28 thousand

2022: ₹4.49 thousand

Slight decrease in cash on hand.

Bank Balance:

2023: ₹30.24 thousand

2022: ₹38.81 thousand

Decreased bank balance at year-end.

Fixed Deposits (Maturity Less Than 3 Months):

2023: ₹- thousand

2022: ₹- thousand

No fixed deposits with short-term maturity in both years.

Financial Ratios of Vadilal Chemicals Limited

Particulars	2023	2022
Current Ratio	2.00	2.03
Debt-Equity Ratio	1.11	0.97
Debt Service Coverage Ratio	1.3	1.5
Return on Equity Ratio	20.45%	24.17%
Inventory turnover Ratio	42.86	49.04
Trade Receivables turnover Ratio	7.02	6.17
Trade payables turnover Ratio	127.05	117.63
Net capital turnover Ratio	6.13	5.96
Net profit Ratio	3.63%	4.32%
Return on Capital employed	16.01%	18.39%

Here is a summary of the financial and operational metrics for Vadilal Chemicals Limited for the year 2023 & 2022:

Current Ratio

2023: 2.00

2022: 2.03

Insight: The current ratio, which measures the company 's ability to cover its short-term liabilities with its short-term assets, has slightly decreased from 2.03 to 2.00. This small change indicates that Vadilal Chemicals Limited maintains a stable liquidity position, comfortably above the 1.00 threshold, ensuring it can meet its short-term obligations.

Debt-Equity Ratio

2023: 1.11

2022: 0.97

Insight: The debt-equity ratio, which indicates the relative proportion of shareholders ' equity and debt used to finance the company 's assets, has increased from 0.97 to 1.11. This increase suggests a higher reliance on debt financing compared to the previous year, indicating a moderate increase in financial leverage.

Debt Service Coverage Ratio

2023: 1.3

2022: 1.5

Insight: The debt service coverage ratio, which measures the company 's ability to service its debt with its operating income, has decreased from 1.5 to 1.3. While this still indicates the company can cover its debt obligations, the reduction suggests slightly tighter debt servicing capacity.

Return on Equity (ROE) Ratio

2023: 20.45%

2022: 24.17%

Insight: ROE, which measures profitability by revealing how much profit a company generates with the money shareholders have invested, has decreased from 24.17% to 20.45%. This decline indicates a reduction in the efficiency with which the company is generating profits from its equity base.

Inventory Turnover Ratio

2023: 42.86

2022: 49.04

Insight: The inventory turnover ratio, indicating how many times inventory is sold and replaced over a period, has decreased from 49.04 to 42.86. This suggests a slower rate of inventory turnover, indicating that the company is holding inventory longer than in the previous year.

Trade Receivables Turnover Ratio

2023: 7.02

2022: 6.17

Insight: The trade receivables turnover ratio, which measures how effectively a company collects its receivables, has improved from 6.17 to 7.02. This improvement indicates better efficiency in collecting receivables and managing credit.

Trade Payables Turnover Ratio

2023: 127.05

2022: 117.63

Insight: The trade payables turnover ratio, showing how quickly a company pays off its suppliers, has increased from 117.63 to 127.05. This indicates a faster rate of settling payables, which could be indicative of better cash management.

Net Capital Turnover Ratio

2023: 6.13

2022: 5.96

Insight: The net capital turnover ratio, measuring how efficiently a company uses its working capital to generate sales, has slightly improved from 5.96 to 6.13. This suggests the company is using its capital more efficiently to generate revenue.

Net Profit Ratio

2023: 3.63%

2022: 4.32%

Insight: The net profit ratio, indicating the percentage of revenue that translates into profit, has decreased from 4.32% to 3.63%. This decline suggests a reduction in profitability margins.

Return on Capital Employed (ROCE)

2023: 16.01%

2022: 18.39%

Insight: ROCE, which measures a company 's profitability and the efficiency with which its capital is employed, has decreased from 18.39% to 16.01%. This indicates a reduction in the efficiency of capital utilization to generate profits.

Dividend History

Particulars	2023	2022
Dividend Per Share (in Rs.)	0.80	0.50
Retained Earnings (Rs. In Lakhs)	992.11	697.44

Vadilal Chemicals Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2023 and 2022 is Rs. 0.80 & 0.50, Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2023 amounted to Rs. 992.11 Lakhs, while in 2022, they were Rs. 697.44 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.