Zenith Securities & Investment Annual Reports, Balance Sheet and Financials

Zenith Securities and Investment Limited Standalone Balance Sheet 

(Rupees in Thousands, unless otherwise stated)

Zenith Securities and Investment Limited Standalone Income Statement 

(Rupees in Thousands, unless otherwise stated)

Zenith Securities and Investment Limited Standalone Cash Flow Statement 

(Rupees in Thousands, unless otherwise stated)

Summary of above cash flow for the year ending 2025 and 2024:

Cash Flow from Operating Activities

During FY 2024–25, the company reported a net profit before tax of ₹22.89 lakh, which was significantly lower than the previous year’s ₹136.15 lakh. After adjusting for non-cash and non-operating items like depreciation, finance costs, and interest income, the operating profit before working capital changes turned negative at ₹(8.13) lakh, compared to ₹117.51 lakh in FY 2023–24.

Changes in working capital had a mixed impact. There was a decrease in loans and advances and other current assets amounting to ₹11.91 lakh, which improved cash flow, but an increase in investments of ₹5.44 lakh reduced it. Additionally, short-term provisions rose by ₹8.03 lakh, while payables decreased slightly.

After considering all these movements, cash generated from operations stood at ₹6.38 lakh versus ₹232.23 lakh in the previous year. However, due to income tax payments of ₹7.19 lakh, the net cash flow from operating activities was negative at ₹0.81 lakh, indicating a sharp decline in operational cash generation compared to the strong ₹207.20 lakh inflow in FY 2023–24.
Cash Flow from Investing Activities

Under investing activities, the company earned ₹30.90 lakh as interest on fixed deposits, which provided liquidity. However, it also made substantial new investments in fixed deposits, leading to a cash outflow of ₹29.83 lakh. There were no major purchases of property or equipment during the year (compared to ₹9.86 thousand last year).

As a result, the net cash flow from investing activities turned slightly positive at ₹1.08 lakh, against a major outflow of ₹206.35 lakh in the previous year.
Cash Flow from Financing Activities

In financing activities, the company earned ₹0.13 lakh as interest on income tax refund, while paying only a minimal ₹0.003 lakh in finance costs. This led to a small net inflow of ₹0.13 lakh, compared to a net outflow of ₹0.61 lakh in FY 2023–24.
Net Change in Cash and Cash Equivalents

After combining all three sections, the company reported a net increase in cash and cash equivalents of ₹0.40 lakh during FY 2024–25. The closing cash balance stood at ₹1.14 lakh, slightly higher than ₹0.74 lakh at the beginning of the year.

 Zenith Securities and Investment Limited Standalone Ratio Analysis:                

Summary of above ratio analysis for the year ending 2025 and 2024:

Current Ratio

The current ratio for FY 2024–25 stands at 17.55, compared to 24.97 in the previous year. Although this represents a decline, the ratio still indicates extremely strong liquidity, showing that the company has more than enough current assets to meet its short-term liabilities. However, such a high ratio may also imply that the company’s resources are not being utilized efficiently, as excess liquidity could be deployed more effectively to generate higher returns.

Return on Equity (ROE)

The return on equity has fallen significantly from 0.28 (28%) in FY 2023–24 to 0.03 (3%) in FY 2024–25. This sharp decline reflects a major drop in profitability relative to shareholders’ funds, suggesting that the company’s capacity to generate profit from its equity base has weakened. The decrease may be attributed to lower overall profits and subdued operational performance during the year.

Net Profit Ratio

The net profit ratio shows a marked improvement, rising from 0.93% in FY 2023–24 to 5.43% in FY 2024–25. This indicates that the company earned a higher profit margin on its revenues compared to the previous year. Despite the overall reduction in total profit, the improvement in this ratio suggests better cost management, improved efficiency, or a rise in non-operating income such as interest earnings from bank deposits. In essence, the company retained more profit from each rupee of revenue this year.

Return on Capital Employed (ROCE)

The return on capital employed (ROCE) declined steeply from 0.32 (32%) to 0.05 (5%) over the same period. This points to a drop in the company’s efficiency in generating profits from its total capital, which includes both equity and debt. The fall in ROCE indicates that the capital invested in the business was not used as effectively as before to produce returns, largely due to lower operating profits.

Return on Investments

The return on investments also saw a substantial decline from 0.36 (36%) in FY 2023–24 to 0.027 (2.7%) in FY 2024–25. This suggests that the returns generated from the company’s investment portfolio were significantly lower during the year. The weaker figure indicates that either the yield on investments decreased, or the amount invested increased without a matching rise in income, pointing to a less favorable performance of investment assets.