I am not an accounting/audit expert so can’t comment where exactly the problem is in operating cash flows (other than inventory and receivables) and hence posted my query.
We can justify that receivables / inventory as a ratio to sales are under control, etc. But the problem is still the fact is that the cash flows are negative since last some time. I am not saying there something wrong or right fundamentally with the company, just trying to evaluate the reasons.
Also note the increase in Trade Payables (Rs 220 crs, equal to its net profit before tax for 6 months ending sep 22). Sooner or later company will have shell out money to pay this.
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