Financial Model and V

Niharika Consumer Produc

A Case Study for Financial Modeling & Valuation
About the Author

Shashi Bhushan did his schooling from Delhi Public School at Bokaro Steel City, a sma
special interest in Mathematics, Physics and Finance, he completed his B. Tech. Degre
Indian Institute of Technology (IIT), Hauz Khas, New Delhi and MBA (PGDM) from India
Ahmedabad where he specialized in Finance. He has over 14 years of experience spre
Management Consulting, Investment Banking, Mergers & Acquisitions, Corporate Fina
Raising.

About the Model

This model has been prepared solely to serve as a basis for demonstration of various techniques and steps i
to Valuation. It doesnt depict efficient or inefficient handling of a situation by an individual or corporate. All
taken from publicly available sources and forward looking projections are based on judgments of the author.
not intended to form a basis for any investment decisions.
Copyright EduPristine

All rights reserved. No part of this document may be produced, stored in a retrieval system or transmitted in
electronic, mechanical, photocopying, recording or otherwise without the prior permission of the author or P
Revision Control
Rev.
Description
0
Initial Issue
1
Revision post comments
2
Issued for usage in FM course
3
Minor updates / corrections and year update

By
Author
Author
Edupristine
Author

Model and Valuation

umer Products Limited

Modeling & Valuation

at Bokaro Steel City, a small town in the state of Jharkhand. With

ompleted his B. Tech. Degree in Mechanical Engineering from
and MBA (PGDM) from Indian Institute of Management (IIM),
14 years of experience spread across large Project Management,
Acquisitions, Corporate Finance, Strategy Formulation and Fund

ous techniques and steps involved in Financial Modeling leading

individual or corporate. All the historical information has been
n judgments of the author. This is not an investment thesis and

al system or transmitted in any form or by any means,

rmission of the author or Pristine.

Date
2012
2013
2013
14-04-2015

Assumption Sheet
Fiscal year ends 31st March
Year Tracker
Unit
Revenue Drivers
Prices
y-o-y growth rates
Soap
Hair Colour
Detergents
CAGR w.r.t first year
Soap
Hair Colour
Detergents
Volumes
y-o-y growth rates
Soap
Hair Colour
Detergents
CAGR w.r.t first year
Soap
Hair Colour
Detergents
Raw Material Cost Drivers
Prices
y-o-y growth rates
Acid
Speciality chemicals
Ordinary chemicals
Perfumes
CAGR w.r.t first year
Acid
Speciality chemicals

Page 3 of 24

1
FY11A

2
FY12A

3
FY13A

4
FY14A

12.5%
6.7%
12.0%

11.1%
10.0%
11.6%

5.0%
4.5%
8.0%

12.5%
6.7%
12.0%

11.8%
8.3%
11.8%

9.5%
7.0%
10.5%

15.0%
6.7%
14.3%

11.3%
5.3%
8.8%

18.8%
5.6%
6.3%

15.0%
6.7%
14.3%

13.1%
6.0%
11.5%

15.0%
5.9%
9.7%

0.0%
21.6%
47.1%
8.3%

2.9%
11.1%
12.0%
7.7%

7.1%
6.0%
7.1%
7.1%

0.0%
21.6%

1.5%
16.2%

3.3%
12.7%

Anthored byShashi Bhushan

Assumption Sheet
Fiscal year ends 31st March
Year Tracker

1
FY11A

2
FY12A
47.1%
8.3%

3
FY13A
28.3%
8.0%

4
FY14A
20.8%
7.7%

ml
ml
ml
ml

105
10
5
10

105
10
5
10

105
10
5
10

105
10
5
10

ml
ml
ml
ml

255
12
8
5

255
12
8
5

255
12
8
5

255
12
8
5

ml
ml
ml
ml

505
25
15
12

505
25
15
12

505
25
15
12

505
25
15
12

10.0%

12.0%

12.0%

12.0%

Unit
Ordinary chemicals
Perfumes
Volume Conversion Matrix
Soaps
Acid
Speciality chemicals
Ordinary chemicals
Perfumes
Hair Color
Acid
Speciality chemicals
Ordinary chemicals
Perfumes
Detergents
Acid
Speciality chemicals
Ordinary chemicals
Perfumes
Employee Cost Drivers
Head Count
y-o-y growth rates
Average Salary
y-o-y growth rates
Bonus as % of Salary
Power Cost Drivers
Tarif
y-o-y growth rates
Consumption in Production Process
y-o-y growth rates

Page 4 of 24

Anthored byShashi Bhushan

Assumption Sheet
Fiscal year ends 31st March
Year Tracker

1
FY11A

2
FY12A

3
FY13A

4
FY14A

7.3%
4.9%
0.2%
0.5%
8.5%

8.3%
4.9%
0.2%
0.4%
4.9%

7.0%
4.9%
0.2%
0.3%
4.9%

6.5%
4.9%
0.2%
0.3%
6.1%

% of Employee Cost
days of commission
days of raw material cost
days of raw material cost
days of sales

13.4%
57
40
112
31

9.5%
88
45
130
33

9.7%
88
42
119
31

Unit
Packaging Cost Drivers
Unit Cost
y-o-y growth rates
Other Cost Drivers
Advertisement Cost
Commission
Maintenace Cost
Insurance Premium
Admin & Misc Expenses
Working Capital & Balance Sheet Drivers
Items having linkage with P&L
Provisions for Employees fund
Commissions Payables
Accounts Payables
Inventory (Days of raw materials cost)
Accouts Receivables
Other Items
Advances from customers
Insurance premium payable
[+] Loans & Advances
Investments

%
%
%
%
%

of
of
of
of
of

INR
INR
INR
INR

Sales
Sales
Sales
Sales
Sales

Lakhs
Lakhs
Lakhs
Lakhs

Page 5 of 24

Anthored byShashi Bhushan

Assumption Sheet
Fiscal year ends 31st March
Year Tracker
Unit

Page 6 of 24

1
FY11A

2
FY12A

3
FY13A

4
FY14A

Anthored byShashi Bhushan

Assumption Sheet
Fiscal year ends 31st March
Year Tracker
Unit

Page 7 of 24

1
FY11A

2
FY12A

3
FY13A

4
FY14A

Anthored byShashi Bhushan

5
FY15A

6
FY16P

7
FY17P

8
FY18P

9
FY19P

10
FY20P

4.8%
3.3%
7.4%

5.0%
4.0%
5.0%

3.0%
6.0%
3.0%

2.0%
6.0%
2.0%

2.0%
6.0%
2.0%

2.0%
6.0%
2.0%

8.3%
6.1%
9.7%

7.6%
5.7%
8.8%

6.8%
5.7%
7.8%

6.1%
5.8%
6.9%

5.6%
5.8%
6.3%

5.2%
5.8%
5.8%

18.4%
4.3%
5.4%

15.0%
5.0%
15.0%

15.0%
5.0%
15.0%

15.0%
5.0%
15.0%

15.0%
5.0%
15.0%

15.0%
5.0%
15.0%

5.0%
5.0%
13.0%
7.5%

5.0%
5.0%
14.0%
7.5%

4.0%
5.0%
14.0%
7.5%

4.0%
5.0%
15.0%
7.5%

4.0%
5.0%
15.0%
7.5%

15.8%
5.5%
8.6%

9.3%
3.8%
16.7%
6.7%
4.8%
10.4%

Page 8 of 24

Anthored byShashi Bhushan

5
FY15A
19.8%
7.5%

6
FY16P

7
FY17P

8
FY18P

9
FY19P

10
FY20P

105
10
5
10

105
10
5
10

105
10
5
10

105
10
5
10

105
10
5
10

105
10
5
10

255
12
8
5

255
12
8
5

255
12
8
5

255
12
8
5

255
12
8
5

255
12
8
5

505
25
15
12

505
25
15
12

505
25
15
12

505
25
15
12

505
25
15
12

505
25
15
12

5.0%

5.0%

5.0%

5.0%

15.0%

Page 9 of 24

Anthored byShashi Bhushan

5
FY15A

6
FY16P

7
FY17P

8
FY18P

9
FY19P

10
FY20P

6.0%
4.9%
0.2%
0.3%
5.9%

10.0%
5.0%
0.2%
0.3%
4.9%

11.0%
6.0%
0.2%
0.3%
4.7%

12.0%
6.0%
0.2%
0.3%
4.7%

13.0%
7.0%
0.2%
0.3%
4.0%

14.0%
7.0%
0.2%
0.3%
3.9%

7
2
16
140

7
2
16
140

7
2
16
140

7
2
16
140

7
2
16
140

9.5%
59
35
105
27
7
2
16
140

Page 10 of 24

Anthored byShashi Bhushan

5
FY15A

6
FY16P

7
FY17P

8
FY18P

9
FY19P

Page 11 of 24

10
FY20P

Anthored byShashi Bhushan

5
FY15A

6
FY16P

7
FY17P

8
FY18P

9
FY19P

Page 12 of 24

10
FY20P

Anthored byShashi Bhushan

Revenue Build Up Sheet

Fiscal year ends 31st March
Year Tracker

Sales Price
Soap
Hair Colour
Detergents
Sales Volume
Soap
Hair Colour
Detergents
Segmental Revenue
Soap
Hair Colour
Detergents
Total Revenue

1
FY11A

2
FY12A

3
FY13A

4
FY14A

16
75
100

18
80
112

20
88
125

21
92
135

421,875
281,250
131,250
834,375
68
211
131
410

485,156
300,000
150,000
935,156
87
240
168
495

540,000
315,938
163,125
1,019,063
108
278
204
590

641,250
333,750
173,438
1,148,438
135
307
234
676

Unit
INR/ packet
INR/ bottle
INR/ packet
packets
bottles
packets
INR Lakhs
INR Lakhs
INR Lakhs
INR Lakhs

Page 13 of 24

Anthored byShashi Bhushan

5
FY15A
22
95
145
759,375
348,188
182,813
1,290,375
167
331
265
763

Page 14 of 24

Anthored byShashi Bhushan

Costs Build Up Sheet

Fiscal year ends 31st March
Year Tracker
Unit

1
FY11A

2
FY12A

3
FY13A

4
FY14A

6.8
3.7
1.7
12.0

6.8
4.5
2.5
13.0

7.0
5.0
2.8
14.0

7.5
5.3
3.0
15.0

182,297
10,875
6,328
7,200

203,191
12,202
7,076
8,152

219,642
13,269
7,674
8,937

240,023
14,753
8,478
10,163

124
4
1
9
138

138
5
2
11
156

154
7
2
13
175

180
8
3
15
206

28
5
2

30
5
2

35
7
2

40
8
3

10,000
15,000
16,000

10,500
16,000
16,500

11,000
17,000
17,200

11,100
17,500
17,800

46
5
51

51
6
58

65
8
72

76
9
86

Raw Material Prices

Speciality chemicals
Ordinary chemicals
Perfumes
Raw Material Volumes
Speciality chemicals
Ordinary chemicals
Perfumes
Raw Material Cost

Speciality chemicals
Ordinary chemicals
Perfumes
Total
Headcount
Manufacturing
Marketing professionals
Corporate employees
Average Monthly Salary
Manufacturing
Marketing professionals
Corporate employees
Total Employees Cost
Salaries
Bonus
Total
Power Cost

paise/
paise/
paise/
paise/

ml
ml
ml
ml

litres
litres
litres
litres
INR Lakh
INR Lakh
INR Lakh
INR Lakh
INR Lakh
Nos.
Nos.
Nos.
INR/month/pers
INR/month/pers
INR/month/pers
INR Lakh
INR Lakh
INR Lakh

Page 15 of 24

Anthored byShashi Bhushan

Costs Build Up Sheet

Fiscal year ends 31st March
Year Tracker

Tarif
Consumption in Production Process
Other Consumption
Total
Packaging Cost
Soap
Hair Colour
Detergents
Total
Advertisement Cost
Commission
Maintenace Cost
Insurance Premium
Admin & Misc Expenses

Unit
INR/ unit
Units
Units
INR Lakh

1
FY11A
3
127,310
19,749
5

2
FY12A
4
138,146
19,749
6

3
FY13A
4
160,251
19,749
7

4
FY14A
5
160,251
19,749
9

INR/ unit
INR/ unit
INR/ unit
INR Lakh
INR Lakh
INR Lakh
INR Lakh
INR Lakh
INR Lakh

1.0
1.5
2.0
11
30
20
1
2
35

1.1
1.6
2.2
13
41
24
1
2
24

1.2
1.8
2.3
16
42
29
1
2
29

1.3
1.9
2.5
19
44
33
1
2
41

Page 16 of 24

Anthored byShashi Bhushan

5
FY15A
8.2
5.5
3.5
16.0
240,023
16,342
9,325
10,163
197
9
3
16
225
40
9
3
11,700
18,000
18,200
82
12
94

Page 17 of 24

Anthored byShashi Bhushan

5
FY15A
5.3
177,737
19,749
10
1.3
1.9
2.5
21
46
37
1
2
45

Page 18 of 24

Anthored byShashi Bhushan

Profit & Loss Statement

Fiscal year ends 31st March
Year Tracker

FY11A

FY12A

FY13A

FY14A

410

495

590

676

138

156

175

206

51

58

72

86

[+] Packaging Cost

11

13

16

19

[+] Advertisement Cost

30

41

42

44

[+] Commission

20

24

29

33

[+] Maintenance Cost

[+] Insurance Premium

35

24

29

41

293

326

373

440

117

170

217

236

73

152

163

163

43

17

54

72

23

63

81

78

20

(46)

(25)

Current Tax

10

10

24

[+] Deferred Tax

(3)

(11)

(18)

(23)

(11)

(8)

14

(35)

(16)

(All figures in INR Lakhs unless stated otherwise)

Revenue

Operating Expenses
Raw Material Cost
[+] Employee Cost
[+] Power Cost

[+] Admin & Misc Expenses

[-] Total Operating Expenses
[-] Depreciation
[-] Interest
[+] Other Income

Taxes for the year

[-] Total Taxes for the year

Page 19 of 24

Anthored byShashi Bhushan

5
FY15A
763
245
94
10
21
46
37
1
2
45
502
261
163
98
75
15
37
40
(27)
13
25

Page 20 of 24

Anthored byShashi Bhushan

Balance Sheet
Fiscal year ends 31st March
Year Tracker

(All figures in INR Lakhs unless stated otherwise)

Liabilities & Equity
Current Liabilities & Provisions
Cash Credit / Overdraft Utilization
[+] Provisions for Employees fund
[+] Advances from customers
[+] Commission payable
[+] Insurance premium payable
[+] Accounts payable
Total Current Liab. & Prov.
Non Current Liabilities
Secured Loans
[+] Unsecured Loans
[+] Total Non Current Liabilities
Networth
Paid Up Capital
[+] Share Premium Account
[+] Retained Earnings
[+] Total Networth
Total Liabilities & Equity
Current Assets
Cash & Cash Equivalent
[+] Margin Money with Bank
[+] Inventory
[+] Account Receivables
[+] Loans & Advances
Total Current Assets
Net Fixed Assets
Gross Block
Page 21 of 24

FY11A

FY12A

FY13A

FY14A

25
10
5
4
2
16
61

53
6
8
4
2
18
91

47
8
12
10
2
25
104

72
9
4
6
2
22
114

300
300

300
285
585

285
270
555

270
255
525

200
14
214
574

300
(21)
279
955

300
(37)
263
921

300
(36)
264
903

21
36
33
10
99

10
60
52
14
136

62
65
55
15
197

87
13
69
60
20
249

505

990

1,044

1,059

Anthored byShashi Bhushan

Balance Sheet
Fiscal year ends 31st March
Year Tracker

(All figures in INR Lakhs unless stated otherwise)

[-] Accumulated Depreciation
[+] Net Fixed Assets
[+] WIP
[+] Deferred Tax Assets
[+] Investments
Total Assets
Check

Page 22 of 24

FY11A
73
432
40
3
574
1

FY12A
226
764
40
14
955
1

FY13A
389
655
1
33
35
921
1

FY14A
552
507
1
56
90
903
1

Anthored byShashi Bhushan

5
FY15A

55
9
7
6
2
25
104
255
240
495
300
(11)
289
888

101
14
72
51
16
254
1,124
Page 23 of 24

Anthored byShashi Bhushan

5
FY15A
715
409
1
84
140
888
1

Page 24 of 24

Anthored byShashi Bhushan