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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 By
0 Initial Issue Author
1 Revision post comments Author
2 Issued for usage in FM course Edupristine
3 Minor updates / corrections and year update 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
Revenue Build Up Sheet
Fiscal year ends 31st March
Year Tracker 1 2 3 4
Unit FY11A FY12A FY13A FY14A
Sales Price
Soap INR/ packet 16 18 20 21
Hair Colour INR/ bottle 75 80 88 92
Detergents INR/ packet 100 112 125 135
Sales Volume
Soap packets 421,875 485,156 540,000 641,250
Hair Colour bottles 281,250 300,000 315,938 333,750
Detergents packets 131,250 150,000 163,125 173,438
Segmental Revenue
Soap INR Lakhs 68 87 108 135
Hair Colour INR Lakhs 211 240 278 307
Detergents INR Lakhs 131 168 204 234
Total Revenue INR Lakhs 410 495 590 676

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5
FY15A

22
95
145

759,375
348,188
182,813

167
331
265
763

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Costs Build Up Sheet
Fiscal year ends 31st March
Year Tracker 1 2 3
Unit FY11A FY12A FY13A
Raw Material Prices
paise/ ml 6.8 6.8 7.0
Speciality chemicals paise/ ml 3.7 4.5 5.0
Ordinary chemicals paise/ ml 1.7 2.5 2.8
Perfumes paise/ ml 12.0 13.0 14.0
Raw Material Volumes
litres 182,297 203,191 219,642
Speciality chemicals litres 10,875 12,202 13,269
Ordinary chemicals litres 6,328 7,076 7,674
Perfumes litres 7,200 8,152 8,937
Raw Material Cost
INR Lakh 124 138 154
Speciality chemicals INR Lakh 4 5 7
Ordinary chemicals INR Lakh 1 2 2
Perfumes INR Lakh 9 11 13
Total INR Lakh 138 156 175
Headcount
Manufacturing Nos. 28 30 35
Marketing professionals Nos. 5 5 7
Corporate employees Nos. 2 2 2
Average Monthly Salary
Manufacturing INR/month/pers 10,000 10,500 11,000
Marketing professionals INR/month/pers 15,000 16,000 17,000
Corporate employees INR/month/pers 16,000 16,500 17,200
Total Employees Cost
Salaries INR Lakh 46 51 65
Bonus INR Lakh 5 6 8
Total INR Lakh 51 58 72
Power Cost

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Costs Build Up Sheet
Fiscal year ends 31st March
Year Tracker 1 2 3
Unit FY11A FY12A FY13A
Tarif INR/ unit
Consumption in Production Process Units
Other Consumption Units
Total INR Lakh 5 6 7
Packaging Cost
Soap INR/ unit 1.0 1.1 1.2
Hair Colour INR/ unit 1.5 1.6 1.8
Detergents INR/ unit 2.0 2.2 2.3
Total INR Lakh 11 13 16
Advertisement Cost INR Lakh 30 41 42
Commission INR Lakh 20 24 29
Maintenace Cost INR Lakh 1 1 1
Insurance Premium INR Lakh 2 2 2
Admin & Misc Expenses INR Lakh 35 24 29

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4 5
FY14A FY15A

7.5 8.2
5.3 5.5
3.0 3.5
15.0 16.0

240,023 260,843
14,753 16,342
8,478 9,325
10,163 11,528

180 214
8 9
3 3
15 18
206 245

40 40
8 9
3 3

11,100 11,700
17,500 18,000
17,800 18,200

76 82
9 12
86 94

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4 5
FY14A FY15A
5.3
177,737
19,749
9 10

1.3 1.3
1.9 1.9
2.5 2.5
19 21
44 46
33 37
1 1
2 2
41 45

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Profit & Loss Statement
Fiscal year ends 31st March
Year Tracker 1 2 3 4
(All figures in INR Lakhs unless stated otherwise) FY11A FY12A FY13A FY14A
Revenue 410 495 590 676
Operating Expenses
Raw Material Cost 138 156 175 206
[+] Employee Cost 51 58 72 86
[+] Power Cost 5 6 7 9
[+] Packaging Cost 11 13 16 19
[+] Advertisement Cost 30 41 42 44
[+] Commission 20 24 29 33
[+] Maintenance Cost 1 1 1 1
[+] Insurance Premium 2 2 2 2
[+] Admin & Misc Expenses 35 24 29 41
[-] Total Operating Expenses 293 326 373 440
117 170 217 236
[-] Depreciation 73 152 163 163
43 17 54 72
[-] Interest 23 63 81 78
[+] Other Income - - 2 8
20 (46) (25) 2
Taxes for the year
Current Tax 10 - 10 24
[+] Deferred Tax (3) (11) (18) (23)
[-] Total Taxes for the year

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5
FY15A
763

245
94
10
21
46
37
1
2
45
502
261
163
98
75
15
37

40
(27)

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Balance Sheet
Fiscal year ends 31st March
Year Tracker 1 2 3 4
(All figures in INR Lakhs unless stated otherwise) FY11A FY12A FY13A FY14A
Liabilities & Equity
Current Liabilities & Provisions
Cash Credit / Overdraft Utilization 25 53 47 72
[+] Provisions for Employees fund 10 6 8 9
[+] Advances from customers 5 8 12 4
[+] Commission payable 4 4 10 6
[+] Insurance premium payable 2 2 2 2
[+] Accounts payable 16 18 25 22
Total Current Liab. & Prov. 61 91 104 114
Non Current Liabilities
Secured Loans - 300 285 270
[+] Unsecured Loans 300 285 270 255
[+] Total Non Current Liabilities 300 585 555 525
Networth
Paid Up Capital 200 300 300 300
[+] Share Premium Account - - - -
[+] Retained Earnings 14 (21) (37) (36)
[+] Total Networth 214 279 263 264
Total Liabilities & Equity 574 955 921 903

Current Assets
Cash & Cash Equivalent 21 10 62 87
[+] Margin Money with Bank - - - 13
[+] Inventory 36 60 65 69
[+] Account Receivables 33 52 55 60
[+] Loans & Advances 10 14 15 20
Total Current Assets 99 136 197 249
Net Fixed Assets
Gross Block 505 990 1,044 1,059

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Balance Sheet
Fiscal year ends 31st March
Year Tracker 1 2 3 4
(All figures in INR Lakhs unless stated otherwise) FY11A FY12A FY13A FY14A
[-] Accumulated Depreciation 73 226 389 552
[+] Net Fixed Assets 432 764 655 507
[+] WIP 40 40 1 1
[+] Deferred Tax Assets 3 14 33 56
[+] Investments - - 35 90
Total Assets 574 955 921 903
Check 1 1 1 1

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5
FY15A

55
9
7
6
2
25
104

255
240
495

300
-
(11)
289
888

101
14
72
51
16
254

1,124

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5
FY15A
715
409
1
84
140
888
1

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