Valecha Engineering Annual Reports, Balance Sheet and Financials

Valecha Engineering Limited Standalone Balance Sheet (Rs In Crores)

Particulars	2025	2024
Non Current Assets
(a)Property, Plant & Equipment	1.65	1.96
(b)Investment Property	1.53	1.58
(c)Financial Assets
(i)Investments	42.07	42.07
(ii)Other Financial Assets	50.75	85.66
(d)Other Non-Current Assets	25.31	37.75
Total Non Current Assets	121.31	169.02
Current Assets
(a)Inventories
(b)Financial Assets
(i)Trade Receivables	170.27	313.37
(ii)Cash & Cash Equivalents	28.93	6.90
(iii)Bank Balances other than (ii) above	-	0.35
(iv)Loans	256.91	286.51
(v)Other Financial Assets	6.39	7.48
(c)Other Current Assets	5.26	17.87
Total Current Assets	467.76	632.48
Total Assets	589.07	801.50
EQUITY AND LIABILITIES
Equity
(a)Equity Share Capital	22.53	22.53
(b)Instruments entirely equity in nature	35.65	-
(c)Other Equity	456.57	(2.25)
Total Equity	514.75	20.28
Liabilities
Non Current Liabilities
(a)Financial Liabilities
(i)Borrowings	-	30.78
(ii)Other Financial Liabilities	54.76	86.87
(b)Provisions	0.06	0.61
Total Non Current Liabilities	54.82	118.26
Current Liabilities
(a)Financial Liabilities
(i)Borrowings	0.01	467.53
(ii)Trade Payables
-  Total outstanding dues of micro enterprises and small enterprises; and	0.01	-
-  Total outstanding dues of creditors other than micro enterprises and small enterprises	12.31	75.16
(iii)Other Financial Liabilities	-	114.49
(b)Other Current Liabilities	5.95	5.12
(c)Provisions	1.22	0.66
Total Current Liabilities	19.50	662.96
Total Equity & Liabilities	589.07	801.50

 Valecha Engineering Limited Standalone Profit & Loss Statement (Rs In Crores)

Particulars	2025	2024
Income
Revenue from Operations	29.65	57.01
Other Income	1.90	1.61
Total Income	31.55	58.62
EXPENSES
Construction Expenses	21.13	53.05
Changes in Inventories	-	0.01
Employee Benefit Expenses	3.63	3.67
Finance Cost	-	0.19
Depreciation and Amortization Expenses	0.35	0.50
Other Expenses	2.69	2.70
Total Expenses	27.80	60.12
Profit/ (Loss) Before Exceptional Items and Tax	3.75	(1.50)
Exceptional Items (Net)	433.62	-
Profit/ (loss) Before Tax Tax Expenses	437.37	(1.50)
Current Tax (Including earlier year taxation)
Profit/ (Loss) for the year	437.37	(1.50)
Other Comprehensive Income / (Loss)
A.     (i) Items that will not be reclassified to profit or loss
(a)    Fair Value of Financial Instruments
(b)    Re-measurement of gain/(loss) of investment/advances in foreign subsidiary
(c)    Re-measurement of defined benefit plans	0.05	0.06
(ii)  Income tax relating to items that will not be classified to profit or loss
B.     (i) Items that will be reclassified to profit or loss
(a)    Re-measurement of gain/(loss) of investment/advances in foreign subsidiary
(ii)  Income tax relating to items that will be classified to profit or loss
Other Comprehensive Income / (Loss) for the year	0.05	0.06
Total Comprehensive Income for the year	437.42	(1.44)
Earnings per Equity Share of Face Value of Rs. 10 each
Basic and Diluted	194.13	(0.67)

 Valecha Engineering Limited Standalone Cash Flow Statement (Rs In Crores)

Particulars	2025	2024
A.  Cash flow from Operating activities
Profit Before Tax	437.37	(1.50)
Add / (Deduct) Adjustment for :
Depreciation and Amortization Expense	0.35	0.50
Finance Cost	-	0.19
Interest Income	(1.90)	(1.50)
Re-measurement of defined benefit plans	0.05	0.06
Operating Profit/ (Loss) before Working Capital changes	435.87	(2.25)
Changes in Working Capital:
Adjustment for (increase) / decrease in operating assets:
Decrease in Inventories	-	0.01
(Increase)/ Decrease in Trade Receivable	143.10	(4.12)
(Increase) / Decrease Loans	29.62	0.01
(Increase)/ Decrease in other current assets and non-current financial assets	48.96	(3.57)
Adjustment for (increase) / decrease in operating liabilities:
Increase/ (Decrease) in Trade Payables	(62.84)	(0.51)
Increase/(Decrease) in other current and financial liabilities (non-current)	(145.78)	7.42
Increase/ (Decrease) in Provisions	0.01	0.28
Cash Generated From / (used in) Operations	448.94	(2.73)
Direct Taxes (Paid)	12.44	(0.77)
Net Cash Flow from operating activities (A)	461.38	(3.50)
B.  Cash Flow from investing activities
Capital Expenditure for Property, Plant and Equipments, Right of use assets, Investments	-	0.01
Investments in subsidiaries
Interest received	1.90	1.50
Net Cash flow from investing activities (B)	1.90	1.51
C.  Cash flow from financing activities
Proceeds from issuing Shares (Amount received from SRA in terms of Resolution Plan approved vide NCLT order dated 25.06.2024)	21.40	-
Proceeds from issuing instruments entirely equity in nature	35.65	-
Proceeds from/ (Repayment) of long term borrowings	(30.78)	-
Net increase / (Decrease) in Working Capital borrowings	(467.52)	-
Finance Cost	-	(0.19)
Net Cash flow used in financing activities (C )	(441.25)	(0.19)
Net Increase / (Decrease) in Cash & Cash Equivalents (A+B+C)	22.03	(2.18)
Cash and Cash Equivalent at the beginning of the period	6.90	9.08
Cash and Cash Equivalent at the end of the period	28.93	6.90

 

 

 

 

 

 

The standalone cash flow statement of Valecha Engineering Limited reflects a sharp turnaround in FY2025, primarily driven by restructuring-led inflows, recovery in receivables, and significant financing adjustments.

The company reported a Profit Before Tax of ₹437.37 lakh in FY2025 compared to a marginal loss of ₹1.50 lakh in FY2024, indicating a substantial improvement in operational performance. After adjusting for non-cash and financial items such as depreciation, interest income, and re-measurement of defined benefit plans, the operating profit before working capital changes stood at ₹435.87 lakh, against a negative ₹2.25 lakh in the previous year.

Working capital movements played a crucial role in strengthening cash flows. There was a significant reduction in trade receivables (₹143.10 lakh) along with decreases in loans and other financial assets, which released cash into operations. However, this was partly offset by a decline in trade payables and other financial liabilities, indicating settlement of obligations. Overall, the company generated ₹448.94 lakh of cash from operations, and after tax payments, net cash flow from operating activities stood at ₹461.38 lakh, a major recovery from the negative ₹3.50 lakh in FY2024.

Investing activities remained minimal, reflecting a conservative capital allocation approach. There was negligible capital expenditure and the company primarily recorded interest income of ₹1.90 lakh, resulting in a modest positive net cash inflow of ₹1.90 lakh from investing activities. 

Financing activities show the most structural change during the year. The company received ₹21.40 lakh from issuance of shares under the SRA resolution plan approved by NCLT and ₹35.65 lakh from equity-nature instruments, indicating recapitalization and revival efforts. At the same time, there was repayment of long-term borrowings and a substantial reduction in working capital borrowings, leading to a net cash outflow of ₹441.25 lakh from financing activities. This suggests deleveraging and restructuring of the capital base.

Overall, the company recorded a net increase in cash and cash equivalents of ₹22.03 lakh in FY2025, compared with a decline of ₹2.18 lakh in FY2024. The closing cash balance improved significantly to ₹28.93 lakh from ₹6.90 lakh at the beginning of the year.

In summary, FY2025 marks a transition phase for Valecha Engineering Limited. Strong operating cash generation, recovery of receivables, and equity infusion under the resolution framework have strengthened liquidity, while repayment of borrowings reflects balance-sheet rationalization. The cash flow profile indicates early signs of financial stabilization, though sustainability will depend on consistent operating performance and controlled leverage going forward.

Below are the Financial Ratios

Particulars	2025	2024
Current Ratio	23.99	0.949
Debt – Equity Ratio	0.00	24.57
Debt Service Coverage Ratio	NA	NA
Return on Equity (ROE):	163.49%	-7.14%
Inventory Turnover Ratio	NA	NA
Trade receivables turnover ratio	0.12	0.19
Trade payables turnover ratio	0.48	0.70
Net profit ratio	1475.11%	-2.63%
Net capital turnover ratio (in times)	0.14	-1.68
Return on capital employed (%)	56.50%	-0.17%
Return on investment (ROI)	84.97%	-7.40%

Here is Reasons of variance [If change is more than 25%] 

1. Current Ratio-The increase is primarily due to the writing back of current liabilities during the year.

2. Debt – Equity Ratio-The decrease in the ratio is on account of writing back of borrowings pursuant to Hon'ble NCLT order dated 25th June, 2024

3. Debt Service Coverage Ratio-Debts written back pursuant to Hon'ble NCLT order dated 25th June, 2024

4. Return on Equity (ROE)-The improvement in the ratio is on account of profits upon writing back of liabilities pursuant to Hon'ble NCLT order dated 25th June, 2024

5. Inventory Turnover Ratio-NA

6. Trade receivables turnover ratio-The decrease is on account of reduction in turnover during the year

7. Trade payables turnover ratio-The decrease is on account of reduction in expenses due to reduction in turnover during the year

8. Net profit ratio-The increase is due to increase in profits due to exceptional items on account of writing back of current liabilities during the year pursuant to Hon'ble NCLT order dated 25th June, 2024

9. Net capital turnover ratio (in times)-The improvement in the ratio is on account of reduction in losses during the year

10. Return on capital employed (%)-The increase is on account of writing back of current liabilities during the year pursuant to Hon'ble NCLT order dated 25th June, 2024

11. Return on investment (ROI)- The increase is on account of writing back of current liabilities during the year pursuant to Hon'ble NCLT order dated 25th June, 2024