Financial Report Summary
Here is a comprehensive summary of the provided PDF document, meticulously capturing all crucial information, key arguments, supporting data, methodologies, findings, conclusions, and actionable insights, organized for clarity and completeness.
I. Financial Position and Performance
- Balance Sheet Highlights (as of March 31, 2023):
- Equity and Liabilities totaled ₹8481.02 Lacs (previous year: ₹5711.87 Lacs). This includes Shareholder's funds of ₹3017.05 Lacs (previous year: ₹2014.24 Lacs) comprising Share Capital (₹756.78 Lacs) and Reserves and Surplus (₹2260.27 Lacs). Non-current liabilities were ₹808.55 Lacs (previous year: ₹1022.25 Lacs), and Current Liabilities were ₹4655.42 Lacs (previous year: ₹2675.38 Lacs).
- Assets also totaled ₹8481.02 Lacs (previous year: ₹5711.87 Lacs), with Non-current assets at ₹862.62 Lacs (previous year: ₹978.50 Lacs) and Current assets at ₹7618.40 Lacs (previous year: ₹4733.37 Lacs). Key current assets include Inventories (₹1304.80 Lacs), Trade receivables (₹5152.30 Lacs), and Cash and cash equivalents (₹359.31 Lacs).
- Statement of Profit and Loss (for the year ended March 31, 2023):
- Total Income was ₹11478.19 Lacs (previous year: ₹4315.10 Lacs), with Revenue from operations comprising the majority (₹11396.82 Lacs).
- Total Expenses were ₹10248.25 Lacs (previous year: ₹4233.94 Lacs), including Cost of Materials Consumed (₹9551.72 Lacs) and Employee benefits expense (₹742.47 Lacs).
- Profit before tax was ₹1229.94 Lacs (previous year: ₹81.16 Lacs).
- Profit for the year after tax was ₹1002.81 Lacs (previous year: ₹58.41 Lacs).
- Earnings per equity share (of Rs.10/- each) were ₹13.25 (Basic and Diluted) compared to ₹0.77 in the previous year.
- Cash Flow Statement (for the year ended March 31, 2023):
- Cash Generated From Operating Activities: ₹(260.51) Lacs
- Cash Generated From Investing Activities: ₹168.48 Lacs
- Cash Generated From Financing Activities: ₹(84.50) Lacs
- Net Decrease in cash and cash equivalents during the year was ₹(176.53) Lacs.
- Cash and cash equivalents at the end of the year stood at ₹359.31 Lacs.
II. Significant Accounting Policies and Notes to Accounts
- Corporate Information: Transline Technologies Limited, incorporated on 02.02.2001, is engaged in IT Services, including system integration, IT infrastructure management, warranty management, and software application development and maintenance.
- Accounting Basis: Financial statements are prepared according to Indian GAAP under the historical cost convention and comply with the Companies Act 2013. The company uses estimates in preparing the financial statements, believing them to be prudent and reasonable.
- Functional Currency: The financial statements are presented in Indian Rupees (INR), with all amounts reported in Lacs.
- Revenue Recognition: Revenue from IT services is recognized when the terms are enforceable, services are delivered, and collectability is reasonably assured. Revenue recognition methods vary based on the type of contract (time and material, fixed price).
- Property, Plant, and Equipment: These are measured at cost less accumulated depreciation and impairment losses. Depreciation is provided on the written-down value method based on the useful life of the assets as prescribed in Schedule II of the Companies Act 2013.
- Intangible Assets: Recognized when future economic benefits are probable and the cost can be measured reliably.
- Impairment of Assets: An asset is treated as impaired when its carrying cost exceeds its recoverable value.
- Government Grants: Recognized when there is reasonable assurance of compliance and the benefits have been earned.
- Investments: Classified as long-term or current. Current investments are carried at the lower of cost and fair value.
- Employee Benefits: Short-term benefits are recognized as an expense. Gratuity is provided for based on actuarial valuation.
- Borrowing Costs: Costs are charged to the Statement of Profit and Loss unless directly related to the acquisition of qualifying assets.
- Taxation: Tax expense includes current and deferred tax, measured using enacted tax rates.
- Provisions and Contingencies: Provisions are recognized when there is a present obligation that can be estimated reliably and an outflow of economic benefits is probable.
- Inventories: Inventories are stated at lower cost and net realizable value on weighted average basis.
- Cash and cash equivalents: comprises of cash at banks and cash on hand and short-term deposits with an original maturity of three months or less.
III. Share Capital and Shareholding Pattern
- Authorized Share Capital: 1,00,00,000 Equity Shares of Rs. 10/- each (₹1000.00 Lacs).
- Issued, Subscribed, and Paid-Up Capital: 75,67,758 Equity Shares of Rs. 10/- each fully paid up (₹756.78 Lacs).
- Bonus Issue: A bonus issue was declared on December 12, 2022, in the proportion of 6 new equity shares for every 5 existing shares.
- Major Shareholders: Arun Gupta, Amita Gupta and RKG Enterprises Pvt Ltd hold more than 5% of the equity shares.
IV. Key Financial Ratios and Regulatory Compliance
- Key Ratios (as of March 31, 2023):
- Current Ratio: 1.62 times
- Debt-Equity Ratio: 0.64 times (increase from 0.32 in the previous year).
- Return on Equity Ratio: 48.89% (significant increase from 4.09% in the previous year).
- Trade receivables turnover ratio: 2.75
- Net profit ratio: 8.80%
- Auditor Remuneration: ₹2.50 Lacs
- Value of imports calculated on CIF basis: ₹425.29 Lacs
- Earning in foreign exchange: a) Export of goods calculated on F.O.B. basis: ₹0.00
- Expenditure in foreign currency: Tour and Travelling Expenses: ₹0.00
- Disclosure u/s 186 of Companies Act-2013 Amount of Loan Given for Transline IFMI Private Limited: ₹46.93, Business Purpose, Rate of Interest 7%
- Related Party Transactions: Disclosures provided for transactions with directors, relatives, and entities in which they are interested.
- MSMED Act Disclosure: Disclosure provided for transactions as per Micro, Small and Medium Enterprises Development (MSMED) Act,2006.
- Statutory Information: The company is compliant with various aspects of company law, including not having any transactions with companies struck off, not holding any Benami property, and no wilful defaulter status.
V. Contingencies and Commitments
- Contingent Liabilities: Performance Guarantee Bonds (₹1419 Lacs), Income Tax demand and TDS demand (₹2513 Lacs + intt).
- Derivative Transactions and Unhedged Foreign Currency Exposures: No derivatives outstanding at the reporting date and no unhedged foreign currency exposures.
VI. Other Disclosures
- The company operates in a single business segment (IT services) and a single geographical segment.
- Impact of COVID-19 has been considered in the financial statements and with improved customer sentiments the company expects robust improvements in near future.
- Previous years' figures have been recast/restated where necessary to ensure comparability.
This summary provides a comprehensive overview of the financial performance, position, and key disclosures of Transline Technologies Limited for the year ended March 31, 2023.
