Sambhv Steel Unlisted Shares

Financial Report Summary

Here is a comprehensive summary of the provided PDF document:

Overview

The document is a provisional balance sheet and statement of profit and loss for Sambhv Steel Tubes Private Limited (formerly known as Sambhv Sponge Power Private Limited) for the year ended March 31, 2024, with comparative figures for the year ended March 31, 2023. It includes detailed information on equity and liabilities, assets, income, expenses, cash flow, and significant accounting policies.

I. Equity and Liabilities

• Shareholder's Funds: Increased significantly, driven by an increase in share capital from ₹20,09,03,000.00 to ₹2,41,00,20,000.00 and reserves and surplus from ₹1,91,03,92,788.28 to ₹2,03,05,15,316.54.
• Non-Current Liabilities: Long-term borrowings increased from ₹1,69,63,20,280.47 to ₹1,82,91,55,714.54. Deferred tax liability increased from ₹14,31,58,970.00 to ₹18,47,32,496.00.
• Current Liabilities: Short-term borrowings decreased from ₹96,36,59,058.20 to ₹88,48,95,588.39. Trade payables increased substantially from ₹19,97,46,415.67 to ₹72,86,22,036.70. Other current liabilities increased from ₹21,45,21,119.09 to ₹48,22,48,240.55. Short term provisions decreased from ₹27,91,245.17 to ₹8,13,78,067.71.
• Total Equity and Liabilities: Increased from ₹5,33,14,92,876.88 to ₹8,63,15,67,460.43

II. Assets

• Non-Current Assets: Property, Plant & Equipment (Tangible Assets, Intangible Assets, and Capital-work-in-progress) increased from ₹2,91,79,81,821.35 to ₹2,93,37,04,784.74, with a significant increase in Capital-work-in-progress. Long-term loans and advances increased significantly from ₹8,75,58,428.90 to ₹45,93,83,767.00.
• Current Assets: Inventories increased from ₹1,41,44,69,942.52 to ₹1,48,03,06,597.39. Trade receivables and others increased substantially from ₹17,19,04,944.34 to ₹52,56,18,811.88. Cash and cash equivalents decreased from ₹3,38,05,469.09 to ₹3,18,15,016.70. Short-term loans and advances increased from ₹48,94,08,074.82 to ₹88,92,58,174.23.
• Total Assets: Increased from ₹5,33,14,92,876.89 to ₹8,63,15,67,460.43.

III. Statement of Profit & Loss

• Income: Revenue from operations increased significantly from ₹9,36,27,27,004.97 to ₹12,86,71,71,859.79. Other income also increased from ₹5,17,20,371.71 to ₹6,33,40,086.92. Total revenue increased from ₹9,41,44,47,376.68 to ₹12,93,05,11,946.71.
• Expenses: Cost of raw materials and stores consumed increased from ₹6,92,11,84,576.54 to ₹8,60,66,39,809.16. Purchase of trading goods increased from ₹56,91,88,934.10 to ₹1,06,26,24,257.11. Employee benefits expense increased from ₹36,76,36,071.72 to ₹50,45,03,519.15. Other expenses increased from ₹66,08,41,174.96 to ₹1,24,74,80,910.57. Financial costs increased from ₹21,73,79,013.84 to ₹30,25,33,224.21. Depreciation and amortization expense increased from ₹15,92,03,186.52 to ₹21,09,44,679.62.
• Profit Before Tax: Profit before tax increased from ₹81,97,62,279.77 to ₹1,11,87,00,141.89.
• Tax Expense: Tax expense increased, comprising deferred tax liabilities/assets, current tax, and tax related to earlier years.
• Profit for the Period: Profit for the period increased from ₹60,26,71,489.65 to ₹82,55,27,028.26.
• Earnings per Share: Increased from ₹30.00 to ₹41.09.

IV. Cash Flow Statement

• Cash Flow from Operating Activities: Net cash from operating activities increased significantly from ₹84,17,32,139.93 to ₹1,36,43,30,547.53.
• Cash Flow from Investing Activities: Net cash from investing activities reflects a significant outflow, increasing from -₹86,13,56,227.51 to -₹2,62,15,72,239.96, primarily due to increase in fixed assets.
• Cash Flow from Financing Activities: Net cash from financing activities shows a significant increase, going from ₹3,87,05,900.40 to ₹1,25,52,51,240.05, mainly from proceeds from issuance of share capital and long term loan.
• Net Increase in Cash and Cash Equivalents: Cash and cash equivalents decreased slightly.

V. Key Notes to Financial Statements

• Share Capital: The authorized share capital is ₹2,50,00,00,000.00, divided into 25,00,00,000 equity shares of ₹10 each. Issued, subscribed, and paid-up capital increased significantly due to fresh issues and bonus issues.
• Reserves and Surplus: Details of surplus in the statement of profit and loss and securities premium account are provided, with adjustments for depreciation, bonus issues, and retained earnings.
• Long Term Borrowings: Details of secured and unsecured loans, including term loans from various banks, GECL loans, and vehicle loans are specified. Secured borrowings constitute the majority.
• Deferred Tax Liability: Deferred tax liability relates to depreciation.
• Short Term Borrowings: Details of cash credit limits from various banks and current maturity of long-term debts are provided.
• Trade Payables: Breakdown of outstanding dues to MSME and other creditors is detailed.
• Other Current Liabilities: Details include advances from customers, expenses payable, statutory liabilities, and sundry creditors.
• Short Term Provisions: Primarily relates to income tax and surcharge payable.
• Long Term Loans & Advances: Security deposits and fixed deposits with maturity more than 12 months.
• Inventories: Breakdown of raw materials, consumable stores, finished goods, and trading goods is given, valued at the lower of cost and net realizable value.
• Trade Receivables and Other Assets: Trade receivables are categorized as outstanding for more than six months and other receivables.
• Cash and Cash Equivalents: Includes cash in hand and balances with scheduled banks in current accounts.
• Short Term Loans and Advances: Includes advances to suppliers, staff, and for income tax, as well as interest receivable and FDRs.
• Revenue from Operations: Sales of finished goods, by-products, raw materials, and trading goods are detailed.
• Other Income: Includes interest income, sales of transportation services, rent, freight, income from job work, incentives for exports, income from investments, and foreign exchange fluctuation loss.
• Cost of Raw Materials Consumed: Details the opening inventory, purchases, and closing inventory of raw materials.
• Employee Benefit Expenses: Includes salary and wages, contributions to EPF and ESIC, and gratuity expenses.
• Other Expenses: Details direct, administrative, and selling expenses are provided.
• Financial Cost: Breakdown of bank charges and interest on various loans.

VI. Overall Financial Position and Performance

The company experienced substantial growth in revenue and profit during the year ended March 31, 2024. The increase in share capital suggests significant investment and expansion activities. There was an increase in Trade Receivables. While Revenue has increased, so has Expenses.

VII. Key Observations & Potential Considerations

• The significant increase in trade payables warrants further investigation to understand the company's payment terms and supplier relationships.
• The rise in capital-work-in-progress indicates ongoing or planned expansion.
• Increase in Trade receivables may warrant further investigation to understand the payment terms.
• Increased expenses need to be looked at for optimization.