Virat Leasing Annual Reports, Balance Sheet and Financials

Virat Leasing Limited Balance Sheet (Rs in thousands)

Virat Leasing Limited Profit & Loss Statement (Rs in thousands)

Virat Leasing Limited Consolidated Cash Flow Statement (Rs in thousands)

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

Operating Activities:

The company had a negative net cash flow from operating activities in both years, indicating that its operating activities consumed more cash than they generated.

Factors contributing to the negative cash flow include a decrease in loans, which might indicate repayment of debt, and a decrease in investments, possibly indicating divestment or decreased capital expenditure.

Tax expenses were significant, especially in 31-03-2023; further impacting cash flow from operations.

 Investing Activities:

The company had a net cash inflow from investing activities in both years, indicating it received more cash from its investing activities than it spent.

The significant item in this section is the investment in property, plant, and equipment, which was absent in 31-03-2023 but was present in 31-03-2022.

Financing Activities:

The company had a net cash outflow from financing activities in 31-03-2023, indicating it spent more cash on financing activities than it received.

This outflow was primarily due to interest expenses and a decrease in borrowings.

In 31-03-2022, there was a significant net cash inflow from financing activities, primarily from an increase in borrowings.

Net Increase/Decrease in Cash and Cash Equivalents:

The company experienced a net decrease in cash and cash equivalents in 31-03-2023, indicating that its cash balance decreased during the period.

In contrast, there was a net increase in cash and cash equivalents in 31-03-2022, indicating an improvement in the company 's cash position during that period.

Overall Assessment:

The company faced challenges in generating positive cash flow from operating activities, which could be attributed to various factors such as high tax expenses and changes in working capital.

The positive net cash flow from investing activities suggests that the company might have been divesting or reducing its capital expenditure.

The net decrease in cash and cash equivalents in 31-03-2023 indicates a potential liquidity concern, which should be carefully monitored and managed by the company.

Financial Ratios of Virat leasing limited

Here is a summary of the financial and operational metrics for The Virat leasing limited

Current Ratio:

31-03-2023: 19.56 times

31-03-2022: 15.92 times

This ratio indicates the company 's ability to pay its short-term liabilities with its short-term assets. Both years ' ratios are significantly high, indicating a healthy liquidity position. However, an excessively high current ratio may suggest inefficient use of assets.

Debt-Equity Ratio:

31-03-2023: 0.049 times

31-03-2022: 0.046 times

This ratio measures the proportion of debt used to finance the company 's assets relative to shareholders ' equity. Both years ' ratios indicate a conservative capital structure, with a low reliance on debt financing.

Debt Service Coverage Ratio:

31-03-2023: 0.003 times

31-03-2022: 0.33 times

This ratio assesses the company 's ability to cover its debt obligations from its operating income. The sharp decrease from the previous year suggests a significant deterioration in the company 's ability to service its debt from its operating income, possibly indicating financial distress.

Net Capital Turnover Ratio:

31-03-2023: 0.07

31-03-2022: 0.06

This ratio measures the efficiency of capital utilization. Both years ' ratios indicate that the company is generating a moderate amount of sales revenue relative to its capital base.

Net Profit Ratio:

31-03-2023: -5.03%

31-03-2022: 3.43%

This ratio shows the proportion of net profit to total revenue. A negative net profit ratio for 31-03-2023 indicates a net loss, suggesting operational inefficiencies or significant expenses compared to revenue.

Return on Equity (ROE):

31-03-2023: -0.31%

31-03-2022: 0.19%

ROE measures how effectively the company is utilizing shareholders ' equity to generate profit. A negative ROE for 31-03-2023 suggests that the company incurred a net loss, resulting in a negative return on equity.

Return on Capital Employed (ROCE):

31-03-2023: 0.01%

31-03-2022: 1.48%

ROCE assesses the profitability of capital employed in the business. The sharp decrease in ROCE from 31-03-2022 to 31-03-2023 indicates a significant decline in profitability relative to capital employed.

Return on Investment (ROI):

31-03-2023: -0.80%

31-03-2022: 0.45%

ROI measures the return generated on the investment made in the business. A negative ROI for 31-03-2023 suggests a loss on investment during that period.

Dividend History

No dividend was declared or paid during the year by the Company.

Industry Overview

Virat leasing limited comes under the investment and holding industry. The investment and holding industry manages and invests capital. It includes companies like mutual funds, holding companies, and investment banks. This industry is crucial for funneling savings into businesses (driving growth), managing investment risk, and efficiently allocating capital. The rise of FinTech, focus on ESG investing, and globalization are shaping this industry. However, challenges include market volatility, competition, and economic uncertainty.

FAQ Related to Virat Leasing Limited

Q.1) Is Virat Leasing Limited is a private or public company?

Virat Leasing Limited is a Public incorporated on 27 July 1984. 

Q.2) Do Virat Leasing Limited listed or not?

Virat Leasing Limited is a delisted public company.

Q.3) In which field the work of Virat Leasing Limited is?

Virat Leasing Limited specializes in providing leasing services for various assets, facilitating businesses and individuals in acquiring needed equipment or property through flexible financing arrangements.

Q.4) How is Virat Leasing Limited is in liquid category?

Virat Leasing Limited appears to be in a highly liquid position based on its current ratio, which indicates the company 's ability to meet short-term obligations with its short-term assets. A current ratio of 19.56 in 31-03-2023 and 15.92 in 31-03-2022 suggests that the company has significantly more current assets than current liabilities, indicating a robust liquidity position. This implies that Virat Leasing Limited has ample resources to cover its immediate financial obligations, making it well-positioned to handle short-term financial needs and emergencies.