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PARTICULARS	2023	2022	2021
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	216.26	28.25	17.47
Right-of-use assets	186.62	134.61	97.28
Goodwill	1,783.84	1,783.84	–
Other Intangible assets	1,339.26	1,120.44	48.92
Intangible assets under development	82.51	144.99	–
Investments accounted for using the equity method	295.29	293.01	–
Financial assets
Other Investments	8.14	26.98	24.48
Other financial assets	266.31	42.71	17.41
Non-current tax assets (net)	179.7	87.83	0.04
Deferred tax assets (net)	382.47	33.54	26.1
Other non-current assets	2.69	2.62	–
TOTAL NON-CURRENT ASSETS	4,743.09	3,698.82	231.70
CURRENT ASSETS
Inventories	4,701.75	5,538.55	3,088.23
Financial assets
Trade receivables	2,758.06	3,231.15	754.83
Cash and cash equivalents	1,474.03	603.77	1443.93
Bank balance other than cash and cash equivalents	1,930.40	1,575.84	45.00
Loans	0.45	7.21	0.59
Other financial assets	116.77	2,531.56	6.05
Other current assets	5,799.58	2,671.95	1,213.94
TOTAL CURRENT ASSETS	16,781.01	16,160.03	6,552.57
TOTAL ASSETS	21,524.10	19,858.85	6,784.27
EQUITY AND LIABILITIES
EQUITY
Equity share capital	96.1	96.04	0.45
Instruments entirely equity in nature	108.71	108.71	93.09
Other equity	4,486.83	5,814.64	4,548.14
TOTAL EQUITY	4,691.64	6,019.39	4,641.68
LIABILITIES
NON-CURRENT LIABILITIES
Financial Liabilities
Borrowings	5,031.23	–	–
Lease liabilities	118.17	94.94	77.05
Other financial liabilities	233.79	452.46	–
Provisions	21.03	14.7	2.02
Deferred tax liabilities (net)	166.89	166.89	–
TOTAL NON-CURRENT LIABILITIES	5,571.10	728.99	79.07
CURRENT LIABILITIES
Financial Liabilities
Borrowings	7,329.86	9,211.32	415.33
Lease liabilities	70.32	45.19	24.57
Trade payables
Total outstanding dues of micro enterprise and small enterprises	29.35	24.43	30.57
Total outstanding dues of creditors other than micro enterprises and small enterprises	2,566.18	2,163.01	1,175.27
Other financial liabilities	455.46	568.7	30.74
Other current liabilities	151.27	45.45	83.05
Provisions	658.92	1,052.36	208.54
Current tax liabilities (net)	–	–	95.45
TOTAL CURRENT LIABILITIES	11,261.36	13,110.47	2,063.52
TOTAL LIABILITIES	16,832.46	13,839.45	2,142.59
TOTAL EQUITY AND LIABILITIES	21,524.10	19,858.85	6,784.27

 

Imagine Marketing Limited Profit & Loss Statement (In Rs. Millions)

PARTICULARS	2023	2022	2021
INCOME
Revenue from operations	33,767.90	28,729.01	13,138.03
Other income	263.94	135.37	65.72
TOTAL INCOME	34,031.84	28,864.38	13,203.75
EXPENSES
Purchases of stock-in-trade	25,268.96	25,915.80	12,547.02
Changes in inventories of stock-in-trade	836.8	-2,450.32	-2,338.65
Employee benefits expense	994.17	561.22	149.2
Finance costs	783.58	345.95	118.78
Depreciation and amortisation expense	255.95	90.74	31.98
Other expenses	7,481.28	3,406.48	1,513.23
TOTAL EXPENSES	35,620.74	27,869.88	12,021.56
(Loss)/Profit before share of losses of equity accounted investee and tax	-1,588.90	994.5	1182.19
Share of loss of equity accounted investee (net of tax)	-48.22	-7	–
(Loss)/Profit before tax	-1,637.12	987.5	1182.19
Tax expense
Current tax	6.17	305.84	327.33
Tax related to Earlier Years	0.23	–	–
Deferred tax	-348.98	-5.37	-10.51
Total tax expense	-342.58	300.47	316.82
(LOSS)/PROFIT FOR THE YEAR (A)	-1,294.54	687.04	865.37
OTHER COMPREHENSIVE INCOME/(LOSS)
Items that will not be reclassified subsequently to profit or loss
Re-measurements of the net defined benefit plans	-4.15	–	-0.01
Income tax relating to these items	1.22	–	0
Items that will be reclassified subsequently to profit or loss
Exchange differences in translating financial statements of foreign operations	-20.39	–	–
OTHER COMPREHENSIVE LOSS/INCOME FOR THE YEAR, NET OF TAX (B)	72.95	-23.32	-0.01
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR (A+B)	-1,221.59	663.72	865.36
(Loss)/Profit for the year attributable to:
Owners of the Company	-1,294.54	687.04	865.37
Non-controlling interests	–	–	–
(Loss)/Profit for the year	-1,294.54	687.04	865.37
Other comprehensive income/loss for the year attributable to:
Owners of the Company	72.95	-23.32	-0.01
Non-controlling interests	–	–	–
Other comprehensive income/loss for the year, net of tax	72.95	-23.32	-0.01
Total comprehensive income/(loss) for the year attributable to:
Owners of the Company	-1,221.59	663.72	865.36
Non-controlling interests	–	–	–
Total comprehensive income/(loss) for the year	-1,221.59	663.72	865.36
Earnings/(Loss) per equity share (face value of Re. 1 each)
Basic (Rs.)	-13.4	5.1	8.53
Diluted (Rs.)	-13.4	5.09	7.97

 

Imagine Marketing Limited Consolidated Cash Flow Statement (In Rs. Millions)

PARTICULARS	2023	2022	2021
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss)/Profit before tax	-1,637.12	987.5	1182.19
Adjustments for:
Share of net loss of equity accounted investees	48.22	7	–
Depreciation and amortisation expense	255.95	90.74	31.98
Share based payment expense	36.22	155.72	11.82
Interest on fixed deposits	-172.96	-96.63	-21.38
Interest income others	-1.09	-0.79	–
Interest on income tax refund	–	–	-0.64
Fair valuation (gain) from investments designated at FVTPL	-0.82	-2.51	-1.17
Liabilities no longer required, written back	–	-0.45	-0.03
Provisions no longer required, written back	-0.24	-6.41	-14.33
Gain on de-recognition of liability component of CCPS	–		-20.43
Gain on waiver of lease liabilities	–	–	-3.35
Gain on de-recognition of leases	–	-4.83	–
Fair value loss on account of changes in financial liabilities	31.23	–	–
Finance cost	783.58	345.95	118.78
Provision for impairment of non-current investment	–		43.33
Provision for loss allowance for trade receivables	252.78	7.14	–
Provision for doubtful advances	–	38.16	28.63
Provision for doubtful interest receivable on trade advance			1.77
Provision for slow and non-moving inventory	330.8	86.61	168.3
Provision for warranty	–	484.88	181.94
Provision for expected return liability	–	550	20.95
Loss on Sale/Disposal of tangible and intangible assets	5.16	–	–
Unrealised foreign exchange loss	13.3	8	-11.78
Operating (Loss)/profit before working capital changes	-54.99	2,650.08	1,716.58
Adjustments for :
Decrease/(Increase) in inventories	506	-2,509.66	-2,506.95
Decrease/(Increase) in trade receivables	220.32	-2,423.31	-187.75
Decrease/(Increase) in loans	6.76	-6.62	0.34
Decrease/(Increase) in other financial assets	2,201.26	-26.58	-5.14
(Increase) in other current and non-current assets	-3,127.70	-1,337.22	-880.83
Increase in trade payables	394.79	683.31	873.06
(Decrease) in other financial liabilities	-409.1	-7.89	16.31
Increase/(Decrease) in other current liabilities	105.82	-40.46	56.17
(Decrease) in current and non-current provisions	-386.72	-179.6	-169.97
Cash (used in) operations	-543.56	-3,197.96	-1,088.18
Taxes paid (net of refunds)	-98.23	-489.08	-332.83
Net Cash flows (used in) operating activities (A)	-641.79	-3,687.04	-1,421.01
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiary pursuant to business combination	–	-1,924.69	–
Investment made in equity shares of an associate company and joint venture	-50.5	-300.01	–
Redemption of Mutual Funds	19.66	–	–
Purchase of property, plant and equipment	-233	-27.29	-16.4
Purchase of intangible assets	-359.49	-114.63	-35.5
Intangible assets under development	62.47	–	–
Movement in fixed deposit (net)	-354.56	-3,967.03	-32.50
Interest on fixed deposits	164.58	10.73	17.84
Net cash flow (used in) investing activities (B)	-750.84	-6,322.91	-66.56
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of preference shares, including securities premium	–	499.96	4400.09
Proceeds from issue of equity shares, including securities premium	3.28	29.6	–
Expenses incurred for issuance of preference share capital	–	-12.07	-91.52
Payment towards buy back of equity shares	–	–	-1135.5
Payment towards distribution tax on buy back of equity shares	–	–	-264.52
Proceeds from issue of debentures	–	–	–
Repayment towards debentures	–	–	-112.5
Proceeds from term loan	–	–	100
Proceeds from issue of preference shares classified as financial liability	5,000.00	–	–
Repayment towards term loan	–	-58.82	-60
(Repayment)/Proceeds from short-term borrowings	-1,881.46	8,854.81	145.72
Repayment of lease liabilities	-66.9	-50.9	-19.26
Interest and other borrowing costs paid	-719.21	-318.96	-92.96
Net cash flow generated from financing activities (C)	2,335.71	8,943.62	2,869.55
Effect of exchange differences on translation of foreign currency	-72.83	16.74	–
Net increase/(decrease) in cash and cash equivalents (A+B+C)	870.25	-1,049.59	1,381.98
Cash and cash equivalents at the beginning of the year	603.77	1,443.93	61.95
Add : Cash acquired on Business Combination	–	209.44	–
Cash and cash equivalents at the end of the year	1,474.03	603.77	1443.93
Components of cash and cash equivalents:
Cash on hand	0.8	0.72	0.07
Balance with banks
In current accounts	317.22	603.05	42
In deposits with original maturity of less than 3 months	1,156.01	–	1401.86
Total cash and cash equivalents	1,474.03	603.77	1443.93

 

Let ‘s break down the Cash Flow Statement of Imagine Marketing Limited for the years 2023, 2022, and 2021, activity-wise:

 

Cash Flows from Operating Activities:

 

Operating Profit (Loss) Before Tax:

In 2023, the company reported an operating loss of Rs.1,637.12 million, compared to profits in 2022 (Rs.987.5 million) and 2021 (Rs.1,182.19 million).

 

Adjustments for Various Items:

Significant adjustments include share of net loss, depreciation, share-based payment expenses, interest on fixed deposits, and various provisions, impacting the overall operating performance.

 

Operating (Loss)/Profit Before Working Capital Changes:

The operating result before changes in working capital was a loss of Rs.54.99 million in 2023, significantly lower than the profits in the previous years.

 

Adjustments for Changes in Working Capital:

Changes in inventories, trade receivables, loans, and other financial assets affected the working capital, leading to changes in cash flows.

 

Cash (Used In) Operations:

The net cash used in operating activities was Rs.543.56 million in 2023, reflecting operational challenges.

 

Cash Flows from Investing Activities:

 

Investing Activities:

The company engaged in various investment activities, including acquisitions, investments in equity shares, and purchases of property, plant, and equipment.

 

Net Cash Flow (Used In) Investing Activities (B):

The net cash used in investing activities was Rs.750.84 million in 2023, primarily due to significant outflows related to acquisitions and investments.

 

Cash Flows from Financing Activities:

 

Financing Activities:

Financing activities involved proceeds from the issuance of preference shares and equity shares, buyback of equity shares, and various repayments related to borrowings and lease liabilities.

 

Net Cash Flow Generated from Financing Activities (C):

The net cash generated from financing activities was Rs.2,335.71 million in 2023, indicating positive financing activities during the year.

 

Other Information:

 

Effect of Exchange Differences on Translation of Foreign Currency:

Exchange rate fluctuations had a negative impact, resulting in a loss of Rs.72.83 million in 2023.

 

Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C):

The overall net increase in cash and cash equivalents was Rs.870.25 million in 2023, compared to decreases in the previous years.

 

Cash and Cash Equivalents at the End of the Year:

The closing balance of cash and cash equivalents was Rs.1,474.03 million in 2023, representing a notable increase from the previous year.

 

Components of Cash and Cash Equivalents:

 

Cash on Hand:

The company held a small amount of cash on hand.

 

Balance with Banks:

Most of the cash and cash equivalents were held in current accounts and deposits with an original maturity of less than 3 months.

 

Imagine Marketing Limited Financial Ratios for the year 2023:

Particulars	2023
EBITDA	-156.55 %
Net-worth	-15.93 %
Debt/Equity Ratio	2.41
Return on Equity	-0.197
Total Assets	12.23 %
Fixed Assets	178.80 %
Current Assets	4.01 %
Current Liabilities	-14.30 %
Trade Receivables	-16.52 %
Trade Payables	16.87 %
Current Ratio	1.54

 

Let’s break down and analyze each of these financial indicators of Imagine Marketing Limited for the year 2023:

 

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):

EBITDA is reported at -156.55%, which is unusual. EBITDA is generally expressed as a percentage of revenue. A negative EBITDA may indicate that the company ‘s operating expenses and debt obligations are high compared to its earnings.

 

Net-worth:

Net worth is at -15.93%, suggesting that the company ‘s liabilities exceed its assets. This could indicate financial instability.

 

Debt/Equity Ratio:

The debt/equity ratio is 2.41, indicating that the company has higher debt relative to its equity. A ratio above 1 suggests that the company relies more on debt financing than equity, which could pose risks, especially if the business faces financial challenges.

 

Return on Equity (ROE):

The return on equity is -0.197 (or -19.7%). A negative ROE suggests that the company did not generate positive returns for its shareholders during the period.

 

Total Assets:

Total assets have increased by 12.23%, which could be a positive sign. However, the increase should be assessed in the context of the company ‘s overall financial health.

 

Fixed Assets:

Fixed assets have increased significantly by 178.80%, which might indicate increased investments in long-term assets. The reason behind this increase would need further investigation.

 

Current Assets:

Current assets have increased by 4.01%, which may improve the company ‘s short-term liquidity position.

 

Current Liabilities:

Current liabilities have decreased by -14.30%, potentially improving the company ‘s short-term obligations.

 

Trade Receivables:

Trade receivables have decreased by -16.52%, indicating a potential improvement in the management of accounts receivable.

 

Trade Payables:

Trade payables have increased by 16.87%, which might indicate that the company is taking longer to pay its suppliers.

 

Current Ratio:

The current ratio is 1.54, suggesting that the company has more current assets than current liabilities. This could indicate good short-term liquidity, but a ratio significantly above 1 may also suggest inefficient use of resources.

 

Dividend History of Imagine Marketing Limited:

Particulars	2023	2022	2021
Dividend (final + interim) (In Rs.)	–	–	–

Annual Reports-