230 32ND ANNUAL REPORT 2023-24 | HERITAGE FOODS LTD Standalone STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS 45. Key Ratios Note 31 March 2024 31 March 2023 Change % Current ratio = Current assets / current liabilities 1.70 1.44 18.25% Debt equity ratio = (Long-term borrowings + short-term borrowings + lease liabilities) / Equity (i) 0.16 0.22 -26.60% Debt Service coverage ratio = (Net profit + depreciation + finance cost + gain on sale of PPE) / (finance cost + lease payments + principal repayments) 11.04 14.26 -22.58% Return on equity ratio / return on investment ratio = net profit after tax / average equity (ii) 11.82 9.43 25.34% Inventory turnover ratio = cost of goods sold divided by average inventory @ 9.70 9.28 4.53% Trade receivables turnover ratio = revenue from operations / average trade receivables 131.98 139.86 -5.63% Trade payables turnover ratio = cost of goods sold / average trade payables 28.47 36.72 -22.46% Net capital turnover ratio = Revenue from operations / (current assets minus current liabilities) 18.10 24.04 -24.72% Net Profit Margin (%) = (PAT / Revenue from operations) 2.44% 2.05% 18.72% Return on capital employed = (earnings before finance cost, other income, taxes and exceptional items) / average capital employed # (ii) 15.79 10.60 48.94% @ cost of goods sold includes cost of materials consumed, purchase of stock-in-trade and changes in inventories of finished goods, semi finished 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 repayment of short term borrowings during the year ended 31 March 2024. (ii) Principal reason for change in the return on equity ratio / net profit margin / return on capital employed is primarily attributed to the increase in revenue from operations and decrease in raw material prices resulting in increase in profits reported during the year ended 31 March 2024 compared to the year ended 31 March 2023. 46. Research and development expenses For the year ended 31 March 2024 31 March 2023 Capital expenditure 0.82 0.07 Revenue expenditure 12.22 10.81 Total 13.04 10.88 Summary of the material accounting policies and other explanatory information (All amounts in ₹ millions, except share data and where otherwise stated)
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