How has been the historical performance of Modern Engineer.?

Answer:The historical performance of Modern Engineer shows a challenging trajectory, particularly in the fiscal year ending March 2021, where the company reported net sales of 0.07 crore and total operating income of 0.07 crore. The total expenditure, excluding depreciation, was 0.13 crore, leading to an operating profit (PBDIT) of -0.05 crore. Consequently, the profit before tax and profit after tax were both recorded at -0.05 crore, resulting in a negative earnings per share (EPS) of -0.16. The operating profit margin was notably negative at -85.71%, and the profit after tax margin was also negative at -71.43%.

In terms of balance sheet performance, the share capital remained stable at 3.09 crore from March 2021 to March 2024, while total reserves showed a significant decline, reaching -3.83 crore by March 2024. Shareholder's funds turned negative at -0.74 crore in March 2024, indicating a deterioration in financial health. The total liabilities increased from 3.08 crore in March 2021 to 125.80 crore in March 2025, reflecting a substantial rise in trade payables and other current liabilities. Cash flow analysis reveals that the company faced negative cash flow from operating activities, amounting to -26.00 crore in March 2025, despite a positive cash flow from financing activities of 44.00 crore. Overall, Modern Engineer's financial history indicates significant struggles with profitability and liquidity, alongside increasing liabilities.

Breakdown:
Modern Engineer's financial performance has been marked by significant challenges, particularly evident in the fiscal year ending March 2021, where it reported minimal net sales of 0.07 crore and a total operating income of the same amount. The company faced total expenditures of 0.13 crore, leading to an operating loss of -0.05 crore, which translated into a profit before tax and profit after tax of -0.05 crore, resulting in a negative EPS of -0.16. The operating profit margin and profit after tax margin were both negative, indicating operational inefficiencies. Over the years, the balance sheet reflected a concerning trend, with total liabilities escalating from 3.08 crore in March 2021 to 125.80 crore by March 2025, while shareholder's funds turned negative by March 2024. Cash flow statements further illustrated difficulties, with negative cash flow from operating activities reported at -26.00 crore in March 2025, despite some recovery in financing activities. This overall trend highlights the company's struggle with profitability and increasing financial obligations.