How has been the historical performance of KMG Milk Food?

Answer:The historical performance of KMG Milk Food shows a consistent trend of negative shareholder's funds and total reserves over the years, indicating financial challenges. As of March 2025, the total reserves stood at -6.39 crore, while shareholder's funds were at -1.08 crore. Long-term borrowings have increased significantly from 0.00 crore in March 2020 to 7.01 crore in March 2025, reflecting a growing reliance on debt. The company's total liabilities reached 9.97 crore in March 2025, up from 3.29 crore in March 2020. Despite these liabilities, total assets also increased to 9.97 crore in March 2025 from 3.29 crore in March 2020, but the book value per share remains negative, recorded at -2.04 in March 2025. Cash flow from operating activities has been negative for the latest year at -1.00 crore, with no cash inflow from investing activities, indicating ongoing operational difficulties.

Breakdown:
KMG Milk Food's financial metrics reveal a troubling trend with negative shareholder's funds and total reserves, which have worsened over the years, culminating in -1.08 crore and -6.39 crore respectively by March 2025. The company has increasingly relied on long-term borrowings, which surged to 7.01 crore from zero in March 2020, contributing to a total liabilities figure of 9.97 crore. In contrast, total assets have also risen to 9.97 crore, but the persistent negative book value per share, at -2.04, underscores the company's financial instability. Cash flow from operating activities has remained negative, indicating challenges in generating sufficient cash from core operations, with a notable cash flow of -1.00 crore in the latest reporting period.