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Particulars	31-03-2023	31-03-2022
ASSETS
Non-current assets
Property, plant and equipment	315.03	334.31
Capital work-in-progress	6.31	8.86
Right-of-use assets	33.59	45.25
Intangible assets (net)	1.6	2.07
Other financial assets	22.74	19.79
Income tax assets (net)	21.74	13.2
Deferred tax assets (net)	31.07	40.15
Other non-current assets	–	116.66
Total non-current assets	432.08	580.29
Current assets
Inventories	302.6	326.42
Trade receivables	657.84	1,090.53
Cash and cash equivalents	481.78	14.06
Other financial assets	7.92	4.54
Other current assets	64.91	55.07
Total current assets	1,515.05	1,490.62
Assets held for sale	20.28	20.28
Total assets	1,967.41	2,091.19
EQUITY AND LIABILITIES
Equity
Equity share capital	60.48	60.48
Other equity	1,170.19	1,014.55
Total equity	1,230.67	1,075.03
Liabilities
Non-current liabilities
Lease liabilities	27.73	38.38
Provisions	52.87	35.01
Total non-current liabilities	80.6	73.39
Current liabilities
Borrowings	–	152.32
Lease liabilities	10.4	10.54
Trade payables	64.72	71.62
Other financial liabilities	86.56	69.06
Provisions	30.19	28.16
Other current liabilities	7.57	17.86
Total current liabilities	656.14	942.77
Total equity and liabilities	1,967.41	2,091.19

Schneider Electric President Systems Limited Profit & Loss Statement (Rs in millions)

Particulars	31-03-2023	31-03-2022
Income
Revenue from operations	3,336.36	3,671.55
Other income	40.72	3.56
Total income	3,377.08	3,675.11
Expenses
Cost of raw material and components consumed	2,237.86	2,643.89
Purchase of traded goods	21.08	9.07
(Increase)/ Decrease in inventories of finished goods, work-in-progress and traded goods	25.77	-14.58
Employee benefits expenses	304.72	301.91
Depreciation and amortization expenses	70.75	66.88
Finance costs	14.88	18.11
Other expenses	471.64	436.44
Total expenses	3,146.70	3,461.72
Profit before tax	230.38	213.39
Tax expenses
Current tax	54.56	53.74
Adjustment of tax relating to earlier periods	-3.94	1.31
Deferred tax charge/(credit)	12.87	0.89
Total tax expenses	63.49	55.94
Profit for the year	166.89	157.45
Other comprehensive income
Re-measurement gain/(loss) on defined benefit plan	-15.04	0.77
Income tax effect	3.79	-0.19
Total other comprehensive income, net of tax	-11.25	0.58
Total comprehensive income for the year	155.64	158.03
Earnings per equity share
Basic and diluted	27.59	26.03

Schneider Electric President Systems Limited Consolidated Cash Flow Statement (Rs in millions)

Particulars	31-03-2023	31-03-2022
Operating activities
Profit before tax	230.38	213.39
Adjustment to reconcile profit before tax to net cash flows:
Depreciation and amortization expenses	70.75	66.88
Liabilities no longer required written back	-5.58	–
(Gain)/loss on sale of property, plant and equipment (net)	-0.06	-0.52
Impairment allowance on trade receivables	-12.78	21.52
Provision for doubtful advances	1.81	–
Net unrealized foreign exchange differences	-4.66	-0.8
Finance income	-5	-2.54
Finance costs	13.48	15.41
Provision for litigations	0.26	–
Operating profit before working capital changes	288.6	313.34
Decrease/(Increase) in trade receivables (including unbilled revenue)	445.68	-71.27
Decrease/(Increase) in other financial assets	-5.06	10.91
Decrease/(Increase) in other assets	106.82	-59.47
Decrease/(Increase) in inventories	23.82	-29.3
Increase/(Decrease) in trade payables	-135.51	-52.02
Increase/(Decrease) in other financial liabilities	17.5	4.73
Increase/(Decrease) in other liabilities	-5.23	6.68
Increase/(Decrease) in provisions	4.6	-17.17
Cash generated from/(used in) operations	741.22	106.43
Income tax paid (net of refunds)	-57.7	-41.47
Net cash flow from/(used in) operating activities	683.52	64.96
Investing activities
Purchase of property, plant and equipment, including capital work-in-progress, intangible assets and capital advances	-42.26	-109.88
Proceeds from sale of property, plant and equipment	1.82	4.96
Interest received	2.28	1.38
Net cash flow from/(used in) investing activities	-38.16	-103.54
Financing activities
Payment of principal portion of lease liabilities	-9.72	-9.95
Interest paid	-13.48	-15.41
Proceeds from short term borrowings from fellow subsidiaries	–	26.34
Repayments of short term borrowings from fellow subsidiaries	-152.32	–
Net cash flow from/(used in) financing activities	-175.52	0.98
Net increase in cash and cash equivalents	469.84	-37.6
Cash and cash equivalents at the beginning of the year	14.06	50.64
Effects of changes in exchange rates on cash and cash equivalents	-2.12	1.02
Cash and cash equivalents at the end of the year	481.78	14.06

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Operating Activities:

Profit before tax:

31-03-2023: 230.38

31-03-2022: 213.39

Analysis: There was an increase in profit before tax from 213.39 in 2022 to 230.38 in 2023, indicating improved operational performance.

Adjustments to reconcile profit before tax to net cash flows:

Depreciation and amortization expenses: Increased from 66.88 in 2022 to 70.75 in 2023, reflecting higher non-cash expenses.

Liabilities no longer required written back: A decrease from – to -5.58 in 2023, indicating adjustments made in provisions or liabilities.

(Gain)/loss on sale of property, plant and equipment (net): A decrease from -0.52 in 2022 to -0.06 in 2023, possibly indicating fewer asset disposals.

Impairment allowance on trade receivables: Decreased significantly from 21.52 in 2022 to -12.78 in 2023, indicating a reversal or recovery in impaired receivables.

Provision for doubtful advances: Introduced 1.81 in 2023, reflecting new provisions made.

Net unrealized foreign exchange differences: Decreased from -0.80 in 2022 to -4.66 in 2023, indicating adverse impacts from foreign exchange fluctuations.

Finance income: Decreased from -2.54 in 2022 to -5.00 in 2023, possibly indicating lower income from financial assets.

Finance costs: Decreased slightly from 15.41 in 2022 to 13.48 in 2023, indicating lower interest expenses.

Provision for litigations: Introduced 0.26 in 2023, reflecting legal provisions made.

Operating profit before working capital changes:

31-03-2023: 288.60

31-03-2022: 313.34

Analysis: A decrease from 313.34 in 2022 to 288.60 in 2023 indicates lower operational profit before considering working capital changes.

Working capital adjustments:

Significant changes in trade receivables, other financial assets, other assets, inventories, trade payables, other financial liabilities, other liabilities, and provisions contributed to the cash generated from operations.

Cash generated from/(used in) operations:

31-03-2023: 741.22

31-03-2022: 106.43

Analysis: A substantial increase from 106.43 in 2022 to 741.22 in 2023 indicates significantly higher cash generated from operations, primarily driven by improved profit and working capital management.

Investing Activities:

Purchase of property, plant and equipment: Decreased significantly from -109.88 in 2022 to -42.26 in 2023, indicating reduced capital expenditures.

Proceeds from sale of property, plant and equipment: Decreased from 4.96 in 2022 to 1.82 in 2023, indicating fewer asset disposals.

Interest received: Increased slightly from 1.38 in 2022 to 2.28 in 2023.

Financing Activities:

Payment of principal portion of lease liabilities: Decreased slightly from -9.95 in 2022 to -9.72 in 2023.

Interest paid: Decreased from -15.41 in 2022 to -13.48 in 2023, indicating lower interest expenses.

Proceeds from short term borrowings from fellow subsidiaries: Introduced 26.34 in 2022.

Repayments of short term borrowings from fellow subsidiaries: Decreased significantly from -152.32 in 2022.

Overall Cash Flow:

Net increase in cash and cash equivalents: Improved from -37.60 in 2022 to 469.84 in 2023, indicating a positive cash flow trend.

Cash and cash equivalents at the end of the year: Increased significantly from 14.06 in 2022 to 481.78 in 2023, reflecting improved liquidity position.

The company showed improved profitability and operational efficiency in 2023 compared to 2022, as evidenced by higher profit before tax and significantly increased cash generated from operations. Reductions in capital expenditures and interest payments contributed to better cash flow management and increased cash reserves.

The significant decrease in impairments and provisions in 2023 also positively impacted the financial performance and cash flow position of the company.

Financial Ratios of Schneider Electric President Systems Limited 

Ratios	31-03-2023	31-03-2022
Current Ratio	2.31	1.58
Debt – Equity Ratio	0.03	0.19
Debt Service Coverage Ratio	–	0.25
Return on Equity Ratio	14.48%	15.81%
Inventory Turnover Ratio	10.61	11.78
Trade Receivables Turnover Ratio	3.82	3.45
Trade Payables Turnover Ratio	3.85	3.82
Net Capital Turnover Ratio	4.74	7.21
Net Profit Ratio	5.00%	4.29%
Return on Capital Employed	19.33%	18.14%
Return on Investment	12.09%	11.42%

Current Ratio:

31-03-2023: 2.31

31-03-2022: 1.58

Analysis: The current ratio measures the company’s ability to pay its short-term obligations with its current assets. An increase from 1.58 to 2.31 indicates improved liquidity and better ability to cover short-term liabilities with current assets.

Debt – Equity Ratio:

31-03-2023: 0.03

31-03-2022: 0.19

Analysis: A decrease from 0.19 to 0.03 signifies a reduction in the company’s reliance on debt financing relative to equity. This indicates a stronger financial position with less leverage.

Debt Service Coverage Ratio:

31-03-2023: Not provided (-)

31-03-2022: 0.25

Analysis: The lack of data for 31-03-2023 makes it difficult to assess changes. A higher ratio in 2022 (0.25) suggests sufficient earnings to cover debt servicing obligations.

Return on Equity (ROE) Ratio:

31-03-2023: 14.48%

31-03-2022: 15.81%

Analysis: ROE measures how effectively the company generates profit from shareholders’ equity. A slight decrease from 15.81% to 14.48% indicates a slightly lower profitability on equity in 2023 compared to 2022.

Inventory Turnover Ratio:

31-03-2023: 10.61

31-03-2022: 11.78

Analysis: This ratio indicates how efficiently inventory is managed and converted into sales. A decrease from 11.78 to 10.61 suggests inventory turnover slowed down slightly in 2023 compared to 2022.

Trade Receivables Turnover Ratio:

31-03-2023: 3.82

31-03-2022: 3.45

Analysis: This ratio measures how quickly receivables are collected. An increase from 3.45 to 3.82 indicates improved efficiency in collecting receivables in 2023.

Trade Payables Turnover Ratio:

31-03-2023: 3.85

31-03-2022: 3.82

Analysis: This ratio measures how quickly the company pays its suppliers. A slight increase from 3.82 to 3.85 suggests a slight improvement in payment efficiency in 2023.

Net Capital Turnover Ratio:

31-03-2023: 4.74

31-03-2022: 7.21

Analysis: This ratio shows how efficiently capital is employed to generate revenue. A decrease from 7.21 to 4.74 indicates a decrease in revenue generated per unit of capital employed, possibly due to lower sales or higher capital base in 2023.

Net Profit Ratio:

31-03-2023: 5.00%

31-03-2022: 4.29%

Analysis: This ratio measures net profit as a percentage of revenue. An increase from 4.29% to 5.00% indicates improved profitability in 2023.

Return on Capital Employed (ROCE) Ratio:

31-03-2023: 19.33%

31-03-2022: 18.14%

Analysis: ROCE measures the efficiency of capital utilization. An increase from 18.14% to 19.33% indicates improved efficiency in generating profits from capital employed in 2023.

Return on Investment (ROI) Ratio:

31-03-2023: 12.09%

31-03-2022: 11.42%

Analysis: ROI measures the return on total assets. An increase from 11.42% to 12.09% indicates improved profitability relative to total assets in 2023.

Dividend history

Particulars	31-03-2023	31-03-2022
Dividend paid	–	–
Retained earnings	1,044.32	888.68
Total	1,044.32	888.68

The Company has not declared or paid any dividend during the year.

 

 Annual Report- 2022-23