First Custodian Fund cash drops Rs 16.50 lakh in first half

The First Custodian Fund (India) Ltd. reported a Rs 16.50 lakh fall in cash and cash equivalents to Rs 2.54 crore in the six months ended 30 September 2026, as Rs 16.93 lakh used in operations and Rs 21.00 lakh used in investing exceeded Rs 21.43 lakh raised through long-term loans.

Why did First Custodian Fund’s cash balance fall in the first half?

First Custodian Fund recorded a net cash outflow of Rs 16.50 lakh in the six months ended 30 September 2026, reducing closing cash and cash equivalents to Rs 2.54 crore from Rs 2.70 crore at the start of the period. Its cash-flow statement reports operating and investing outflows that were only partly offset by financing inflows.

The direction differed from the corresponding six months ended 30 September 2025, when cash and cash equivalents rose by Rs 3.64 lakh to Rs 2.70 crore. In the earlier period, a Rs 35.62 lakh net cash inflow from investing activities more than covered Rs 12.33 lakh used in operations and Rs 19.65 lakh used in financing activities.

The principal shift was in investing cash flow, which changed from a Rs 35.62 lakh inflow in the 2025 period to a Rs 21.00 lakh outflow in the 2026 period. Financing also reversed from a Rs 19.65 lakh outflow to a Rs 21.43 lakh inflow, but the new borrowing did not cover the combined Rs 37.93 lakh of operating and investing outflows.

What caused First Custodian Fund’s operating cash outflow?

First Custodian Fund used Rs 16.93 lakh in operating activities in the six months to 30 September 2026, compared with Rs 12.33 lakh used in the corresponding 2025 period. The half-year income statement reported a loss before tax of Rs 11.69 lakh, compared with a loss before tax of Rs 18.44 lakh a year earlier.

The cash-flow reconciliation disclosed Rs 5.99 lakh of depreciation, Rs 0.92 lakh of interest paid and Rs 2.16 lakh of dividend received for the 2026 period. It also listed a Rs 5.53 lakh adjustment for the increase in trade receivables and a Rs 3.55 lakh adjustment relating to trade payables before reporting cash generated from operations of negative Rs 16.01 lakh.

Interest paid of Rs 0.92 lakh was the only stated deduction between cash generated from operations and the final Rs 16.93 lakh operating outflow, as the statement showed no income-tax payment in the current six-month period. In the corresponding 2025 period, the company reported Rs 0.85 lakh of interest paid and Rs 6.95 lakh of income-tax paid.

The loss after tax narrowed to Rs 11.69 lakh from Rs 18.44 lakh, a year-on-year reduction of Rs 6.75 lakh. Operating cash use nevertheless increased by Rs 4.60 lakh, showing that the cash-flow outcome also reflected the working-capital movements and non-cash adjustments reported in the statement.

How did asset purchases and investments affect First Custodian Fund’s cash?

First Custodian Fund used Rs 21.00 lakh in investing activities during the six months ended 30 September 2026, after generating Rs 35.62 lakh from investing activities in the prior-year period. Purchases of fixed assets were Rs 35.93 lakh, compared with Rs 1.52 lakh in the corresponding six months of 2025.

The company purchased investments worth Rs 1.92 crore and sold investments worth Rs 2.11 crore in the 2026 period. The resulting Rs 18.59 lakh excess of investment sales over purchases, together with Rs 2.16 lakh of dividend received, did not cover the fixed-asset spending and Rs 5.82 lakh increase in loans and advances.

The cash-flow statement did not report income from mutual funds for the current period. It listed Rs 13.07 lakh of income from mutual funds in the corresponding 2025 period, alongside Rs 2.71 lakh of dividend received.

The balance sheet reflects the change in asset categories between 31 March 2026 and 30 September 2026. Property, plant and equipment rose by Rs 16.46 lakh to Rs 41.61 lakh, current investments fell by Rs 5.12 lakh to Rs 1.05 crore, and loans and advances increased by Rs 5.82 lakh to Rs 86.78 lakh.

How much did First Custodian Fund borrow during the period?

First Custodian Fund raised Rs 21.43 lakh through an increase in long-term loans in the six months ended 30 September 2026. The cash-flow statement shows no proceeds from issuing share capital, no dividend payment and no public or rights-issue expense for the period, leaving the increase in long-term loans as the stated financing cash inflow.

Long-term borrowings stood at Rs 23.88 lakh at 30 September 2026, compared with Rs 2.46 lakh at 31 March 2026. The Rs 21.43 lakh increase in the balance-sheet liability matches the financing cash inflow reported in the cash-flow statement.

This financing pattern differed from the corresponding 2025 period, when financing activities used Rs 19.65 lakh of cash. The prior-period statement included Rs 15.00 lakh of dividend paid including dividend tax and Rs 4.65 lakh of public or rights-issue expenses.

Total equity and liabilities increased to Rs 15.26 crore at 30 September 2026 from Rs 15.20 crore at 31 March 2026. Equity share capital remained Rs 1.50 crore, while reserves and surplus declined by Rs 11.69 lakh to Rs 13.46 crore, matching the reported half-year loss after tax.

Conclusion

First Custodian Fund finished the first half with Rs 2.54 crore of cash and bank balances, down Rs 16.50 lakh from 31 March 2026. The Rs 21.43 lakh increase in long-term loans funded part of the Rs 16.93 lakh operating outflow and Rs 21.00 lakh investing outflow, including Rs 35.93 lakh spent on fixed assets.

The next financial results will show whether cash movement changes after trade receivables rose by Rs 5.53 lakh and loans and advances rose by Rs 5.82 lakh in the first half. The filing does not disclose a borrowing repayment plan, cash-flow target or future capital-spending programme beyond the period ended 30 September 2026.