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NCL Holdings Limited Balance Sheet (Rs in lakhs)

 

Particulars	31-03-2023	31-03-2022
EQUITY AND LIABILITIES
Shareholders ‘ funds:
Share capital	578.49	578.49
Reserves and surplus	6,341.54	6,032.04
Minority interest	86.13	94.71
Non-current liabilities
Long-term borrowings	11,709.77	9,450.90
Deferred tax liability (net)	73.34	–
Other long-term liabilities	–	13.92
Long-term provisions	95.43	100.01
Current liabilities
Short-term borrowings	78.24	217.36
Trade payables	422.68	347.87
Other current liabilities	2,596.67	6,020.02
Short-term provisions	320.25	122.09
TOTAL	22,311.12	22,968.85
ASSETS
Non-current assets
Tangible assets	9,451.77	1,161.47
Intangible assets	84.25	–
Capital work-in-progress	–	8,250.93
Goodwill on consolidation	–	560.1
Non-current investments	87.59	–
Deferred tax assets (net)	–	95.66
Long-term loans and advances	178.43	251.1
Other non-current assets	–	60.48
Current assets
Current Investments	250.51	215.15
Inventories	5,567.13	10,471.91
Trade receivables	389.67	91.98
Cash and cash equivalents	4,362.37	164.09
Short-term loans and advances	1,490.06	1,489.56
Other current assets	449.34	156.42
TOTAL	22,311.12	22,968.85

 NCL Holdings Limited Profit & Loss Statement (Rs in lakhs)

 

Particulars	31-03-2023	31-03-2022
Revenue
Revenue from operations	9,751.86	2,106.76
Other income	33.89	391.59
Total revenue	9,785.75	2,498.34
Expenses
Cost of material consumed	98.56	698.7
Purchases of traded goods	1,244.03	2,164.64
Changes in inventories of finished goods, work-in-progress and stock-in-trade	4,397.18	-2,249.87
Employee benefits expense	381.2	312.9
Finance costs	1,435.12	155.2
Depreciation expense	240.98	44.58
Other expenses	737.18	1,064.21
Total expenses	8,534.25	2,190.36
Profit before prior period adjustments, exceptional items and tax	1,251.50	307.98
Prior period adjustments (net)	–	–
Profit before exceptional items and tax	1,251.50	307.98
Exceptional items	-244.82	–
Profit before tax	1,496.32	307.98
Current tax	304.43	113.16
Tax Adjustment in respect of earlier years	9.66	-1.41
MAT credit entitlement	120	-61.82
Deferred tax	45.72	72.39
Profit for the year before minority interest	1,016.52	185.66
Minority interest	4.96	8.61
Profit for the year	1,007.90	180.7
Earnings per equity share
Basic & Diluted Earnings per share	17.42	3.12

 NCL Holdings Limited Consolidated Cash Flow Statement (Rs in lakhs)

 

Particulars	31-03-2023	31-03-2022
Cash flows from operating activities
Profit before tax	1,496.32	307.98
Adjustments:
Depreciation	240.98	44.58
Profit on sale of property, plant and equipment	-2.64	-1.72
Interest income	-0.47	-7.97
Gain on sale of investments	–	-342.97
Change in reserves pursuant to merger	-698.41	–
Dividend Income	-15.56	-22.95
CWIP Written off	–	42.09
Interest and finance expense	1,435.12	155.2
Operating cash flow before working capital and other changes	2,455.34	174.25
Decrease/(Increase) in trade receivables	-297.69	211.99
(Increase)/Decrease in loans and advances	-0.5	1,662.61
Decrease/(Increase) in other assets	-292.92	-142.94
Decrease/(Increase) in inventories	4,904.78	-2,258.38
Increase/(Decrease) in current liabilities and provisions	-3,294.10	3,013.03
Cash generated from operations	3,474.91	2,660.57
Income tax (paid)/refund (net)	-479.81	-85.69
Net cash provided by/(used in) operating activities	2,995.10	2,574.88
Cash flows from investing activities
Purchase of property, plant and equipment (including capital work-in-progress)	-361.96	-2,430.41
Proceed from sale of property, plant and equipment	228.81	7.35
Investments sold / (Acquisition)	437.12	433.87
Interest received	0.47	7.97
Dividend received	15.56	22.95
Net cash used in investing activities	-1,958.28	320.01
Cash flows from financing activities
Long-term loans borrowed during the year	2,258.87	1,559.77
Long-term loans repaid during the year	59.42	-18.69
Short-term loans borrowed during the year	–	33.62
Short-term loans repaid during the year	–	-1,843.71
Dividend Paid	–	-57.85
Interest and finance charges paid	-1,435.12	-155.2
Net cash provided by financing activities	-482.07	883.17
Net increase in cash and cash equivalents	4,198.28	134.53
Cash and cash equivalents at the beginning of the year	164.09	29.56
Cash and cash equivalents at the end of the year	4,362.37	164.09

 Operating Activities: The company generated a substantial operating cash flow before working capital and other changes, which increased significantly from 31-03-2022 to 31-03-2023. The increase in trade receivables and loans and advances, along with the decrease in other assets, inventories, and current liabilities and provisions, contributed to the cash generated from operations. The net cash provided by operating activities increased from 31-03-2022 to 31-03-2023, indicating improved operational performance and cash generation ability.

Investing Activities: The company invested in property, plant, and equipment, including capital work-in-progress, which decreased significantly from 31-03-2022 to 31-03-2023.Proceeds from the sale of property, plant, and equipment, as well as investments sold, contributed positively to cash flows from investing activities.Despite the positive contributions, the net cash used in investing activities decreased from 31-03-2022 to 31-03-2023, indicating a reduction in investment activities.

Financing Activities: The company borrowed long-term loans during the year, with an increase in borrowing amount from 31-03-2022 to 31-03-2023. Long-term loans repaid during the year also increased, although short-term loans borrowed during the year remained unchanged. The net cash provided by financing activities decreased from 31-03-2022 to 31-03-2023, primarily due to higher loan repayments and no dividend paid during the year.

Net Increase in Cash and Cash Equivalents: The company experienced a significant net increase in cash and cash equivalents from 31-03-2022 to 31-03-2023. The substantial increase indicates improved cash management and liquidity position of the company over the year.Cash and Cash Equivalents:Cash and cash equivalents at the end of the year increased significantly, reflecting the positive impact of the net increase in cash and cash equivalents during the year.

Dividend History

 

Category	31-03-2023	31-03-2022
Dividend paid	–	-57.85
Retained earnings	–	–
Total	–	-57.85

 Based on the financial results of the company for the fiscal year 2022-23, it is recommended to declare a final dividend at the rate of 12.5% of the face value of Rs. 10 per equity share. This translates to Rs. 1.25 per equity share.

Financial Ratios of NCL Holdings Limited

 

Ratios	31-03-2023	31-03-2022
Current Ratio	4.35	2.49
Debt – Equity Ratio	0.72	0.86
Debt Service Coverage Ratio	0.32	0.07
Return on Equity Ratio	1.47	0.05
Net Capital Turnover Ratio	0.85	0.02
Net Profit Ratio	11%	16%
Return on Capital Employed	0.1	0.01
Trade Payables Turnover Ratio	12.5	46.12
Return on Investments	6.68%	239.12%
Inventory Turnover Ratio	1.02	0.02
Trade Receivables Turnover Ratio	NA	93.82

 Current Ratio:

31-03-2023: 4.35

31-03-2022: 2.49

Analysis: The current ratio measures a company ‘s ability to cover its short-term liabilities with its short-term assets. A higher ratio indicates better liquidity. The increase from 2022 to 2023 suggests an improvement in liquidity and the company ‘s ability to meet its short-term obligations.

Debt – Equity Ratio:

31-03-2023: 0.72

31-03-2022: 0.86

Analysis: The debt-to-equity ratio measures the proportion of debt financing relative to equity financing. A lower ratio is generally favorable as it indicates less reliance on debt financing. The decrease from 2022 to 2023 suggests a reduction in debt relative to equity, which could indicate improved financial stability.

Debt Service Coverage Ratio:

31-03-2023: 0.32

31-03-2022: 0.07

Analysis: The debt service coverage ratio measures a company ‘s ability to cover its debt obligations with its operating income. A higher ratio indicates better ability to service debt. The significant increase from 2022 to 2023 suggests a substantial improvement in the company ‘s ability to cover its debt obligations with its operating income.

Return on Equity Ratio:

31-03-2023: 1.47

31-03-2022: 0.05

Analysis: The return on equity (ROE) ratio measures the profitability of a company in relation to its equity. A higher ratio indicates better profitability. The substantial increase from 2022 to 2023 suggests a significant improvement in the company ‘s profitability relative to its equity.

Net Capital Turnover Ratio:

31-03-2023: 0.85

31-03-2022: 0.02

Analysis: The net capital turnover ratio measures the efficiency of a company ‘s capital utilization in generating revenue. A higher ratio indicates better efficiency. The increase from 2022 to 2023 suggests a substantial improvement in capital utilization efficiency.

Net Profit Ratio:

31-03-2023: 11%

31-03-2022: 16%

Analysis: The net profit ratio measures the proportion of net profit to revenue. A higher ratio indicates better profitability. The decrease from 2022 to 2023 suggests a decline in profitability relative to revenue.

Return on Capital Employed:

31-03-2023: 0.10

31-03-2022: 0.01

Analysis: The return on capital employed (ROCE) ratio measures a company ‘s profitability relative to the total capital employed. A higher ratio indicates better profitability. The increase from 2022 to 2023 suggests an improvement in profitability relative to the total capital employed.

Trade Payables Turnover Ratio:

31-03-2023: 12.5

31-03-2022: 46.12

Analysis: The trade payables turnover ratio measures how efficiently a company manages its trade payables. A higher ratio indicates better efficiency. The decrease from 2022 to 2023 suggests a decline in efficiency in managing trade payables.

Return on Investments:

31-03-2023: 6.68%

31-03-2022: 239.12%

Analysis: The return on investments ratio measures the return generated from investments. The significant decrease from 2022 to 2023 suggests a decline in the return on investments.

Inventory Turnover Ratio:

31-03-2023: 1.02

31-03-2022: 0.02

Analysis: The inventory turnover ratio measures how efficiently a company manages its inventory. A higher ratio indicates better efficiency. The increase from 2022 to 2023 suggests an improvement in inventory management efficiency.

Trade Receivables Turnover Ratio:

31-03-2023: NA

31-03-2022: 93.82

Analysis: The trade receivables turnover ratio measures how efficiently a company collects its accounts receivable. The lack of data for 31-03-2023 prevents analysis for this ratio.

Industry Overview

NCL Holdings Limited comes under Investment and Holding sector.
The Investment and Holding industry is a multifaceted sector central to the global economy, encompassing a diverse range of activities related to the acquisition, management, and ownership of financial assets and equity stakes in various companies. These companies typically maintain portfolios consisting of stocks, bonds, real estate, and other financial instruments, utilizing different investment strategies to generate returns. Risk management is a critical aspect, with firms employing sophisticated techniques to mitigate market volatility and other risks. As financial intermediaries, they facilitate capital allocation by providing funding to businesses through equity investments, loans, and other financing mechanisms. Corporate governance and regulatory compliance are essential to ensure transparency, accountability, and investor protection. Technological advancements are reshaping the industry, enhancing investment decision-making and portfolio management. Overall, the Investment and Holding sector plays a vital role in capital markets, driving economic growth and fostering innovation across industries.

 Annual Report- 2021-22