Revenue and Profitability Trends
Over the period from March 2019 to March 2025, Shree Precoated has reported zero net sales and other operating income, resulting in total operating income remaining at nil throughout. This absence of revenue generation is a critical factor influencing the company's financial health. Despite the lack of sales, the company has incurred various expenses, primarily employee costs and other expenses, which have shown a gradual decline but remain significant relative to the company's scale.
Employee costs have decreased from ₹0.55 crore in March 2019 to ₹0.41 crore in March 2025, while other expenses have reduced from ₹0.72 crore to ₹0.19 crore in the same period. Total expenditure excluding depreciation has correspondingly fallen from ₹1.27 crore to ₹0.60 crore. These costs have led to operating losses (PBDIT excluding other income) consistently over the years, with losses narrowing from ₹1.27 crore in March 2019 to ₹0.60 crore in March 2025.
Other income, which was present in some years (notably ₹1.14 crore in March 2019 and ₹0.55 crore in March 2021), has been absent in recent years, further exacerbating the operating losses. Consequently, the company has reported negative operating profits (PBDIT) in most years except for a marginal positive in March 2021. Profit after tax has mirrored this trend, with losses widening to ₹0.60 crore in March 2025 from a smaller loss of ₹0.13 crore in March 2019, except for a brief profit in March 2021.
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Balance Sheet and Financial Position
Shree Precoated's balance sheet reflects a challenging financial position. Share capital has remained stable at ₹4.14 crore throughout the period, but reserves have deteriorated from -₹3.89 crore in March 2019 to -₹6.30 crore in March 2025, indicating accumulated losses. This has resulted in negative shareholder's funds, declining from a marginal positive ₹0.06 crore in March 2021 to -₹2.16 crore in March 2025.
The company has no long-term or short-term borrowings, which suggests an absence of debt financing. Non-current liabilities, primarily long-term trade payables and provisions, have remained relatively stable around ₹3.79 crore. Current liabilities have increased from ₹1.16 crore in March 2020 to ₹3.81 crore in March 2025, reflecting growing short-term obligations.
On the asset side, total assets have remained steady at approximately ₹5.45 crore. Non-current assets, including long-term loans and other non-current assets, constitute the majority of the asset base at around ₹4.91 crore. Current assets are minimal, around ₹0.53 crore, with negligible inventories, sundry debtors, and cash balances. The net current assets position is negative and has worsened over time, indicating liquidity pressures.
Book value per share has declined significantly from a positive ₹0.15 in March 2021 to a negative ₹5.21 in March 2025, underscoring the erosion of net worth.
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Cash Flow and Operational Insights
Cash flow data for Shree Precoated indicates no reported inflows or outflows from operating, investing, or financing activities over the years. The company has maintained a negligible cash and bank balance, fluctuating between ₹0.01 crore and ₹0.06 crore, which is insufficient to cover ongoing expenses. The absence of cash flow activity highlights a lack of operational business and investment movements, consistent with the zero revenue figures.
Overall, Shree Precoated's historical performance is characterised by a lack of revenue generation, persistent operating losses, negative reserves, and a deteriorating net worth. The company’s financial statements suggest it has not engaged in active business operations during the period analysed, which is reflected in its stagnant asset base and minimal cash flows.
Investors should consider these factors carefully when evaluating the company’s prospects, as the financial data points to ongoing challenges in achieving profitability and sustaining operations.
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