45. Segment reporting In accordance with Ind AS 108 - ‘Operating segments,’ segment information has been given in the consolidated fi nancial statements of the Company and therefore no separate disclosure on segment information is given in these standalone fi nancial statements. 46. Key Ratios Note 31 March 2023 31 March 2022 Change % Current ratio = Current assets / current liabilities 1.44 1.60 -10.07% Debt equity ratio = (Long-term borrowings + short term borrowings + Lease liabilities) / Equity (i) 0.22 0.02 1159.85% Debt Service coverage ratio = (Net profi t + depreciation + fi nance cost + gain on sale of PPE) / (fi nance cost + lease payments + principal repayments) (ii) 14.26 2.77 414.06% Return on equity ratio / return on investment ratio = net profi t after tax / average equity (iii) 9.43 16.19 -41.75% Inventory turnover ratio = cost of goods sold / average inventory @ 9.28 10.76 -13.82% Trade receivables turnover ratio = revenue from operations / average trade receivables 139.86 162.60 -13.98% Trade payables turnover ratio = cost of goods sold / average trade payables 57.92 51.63 12.18% Net capital turnover ratio = Revenue from operations / (current assets - current liabilities) 24.04 25.40 -5.34% Net Profi t Margin (%) = (PAT / Revenue from operations) (iii) 2.05% 3.84% -46.55% Return on capital employed = (earnings before fi nance cost, other income, taxes and exceptional items) / average capital employed # (iii) 10.60 19.95 -46.88% Return on investment = (Income from investment / Cost of Investment) - - - @ cost of goods sold includes cost of materials consumed, purchase of stock-in-trade and changes in inventories of fi nished goods, semi fi nished goods, stock-in- trade and work-in-progress # capital employed = total assets - current liabilities Note: Reasons for change more than 25% is as under (i) Principal reason for change in the debt equity ratio is attributed to the increase in short term borrowings during the year ended 31 March 2023. (ii) Principal reason for change in debt service coverage ratio is attributed to the prepayments of long term borrowings during the year ended 31 March 2022. (iii) Principal reason for change in the return on equity ratio / net profi t margin / return on capital employed is attributed to the increase in raw material prices resulting in decrease in profi ts reported during the year ended 31 March 2023 compared to the year ended 31 March 2022. Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) Heritage Foods Limited | 31st Annual report 2022-23 240
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