PROJECT REPORT

On

“FINANCIAL MODELING OF GODREJ CONSUMER PRODUCTS LTD”

FOR

THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF

“MASTER OF BUSINESS ADMINSTRATION”

FROM GGS IP UNIVERSITY

DELHI

BATCH: 2017-2019
SUBMITTED BY: SUBMITTED TO:

Miss. Khushboo Prof. Dharini Sisodia

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,

GREATER NOIDA (UP) – 201306

1
 Certificate of Training

Sample- Certificate of Training

(On the letter head of the company duly signed by the authorities)

This is to certify that Ms. Khushboo of MBA 2017-19 Batch from Army Institute of
Management & Technology, Greater Noida has undergone Summer Internship
Project in our organization. Her project title was “Financial Modeling and Extensive
Report on FMCG Industry”, supervised under Mr. Abhijit Das (Industry Mentor/
Guide) from 7th June 2018 to 3rd Aug 2018. Her conduct and effort during the
Internship is highly appreciable.

Authorized Person

Signature

Name

Designation

(With stamp)

2
 Certificate of Originality

I Ms. Khushboo, Roll No.______________ of MBA 2017-19 Batch of Army Institute of

Management & Technology has undergone a Summer Internship in DION GLOBAL SOLUTONS
LTD., NOIDA for duration of 8 weeks on a project title “Financial Modeling on Godrej Consumer
Products Ltd.”, hereby declare that this project is my original piece of work.

Signature of the student:

Student Name:

Date

3
 Acknowledgement

I want to show my sincere gratitude to all those who made this study possible. First of all I am
thankful to the helpful staff and the faculty of Army Institute of Management and Technology.
Second I would like to extend my sincere thanks to my Industry Guide, Mr Abhijit K. Das, for her
untiring cooperation. One of the most important tasks in every good study is its critical evaluation
and feedback which was performed by my faculty guide Mr Biswa Kr. Ranjan. I am very thankful to
my Faculty as well as Industry guide for investing his precious time to discuss and criticize this
study in depth, and explained the meaning of different concepts and how to think when it comes
to problem discussions and theoretical discussions. My sincere thanks go to my Institute and
family, who supported and encouraged me.

Khushboo

Course – MBA

4
 Executive Summary

Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. This is a
mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a
business, project, or any other investment. Financial modeling is a general term that means different things to different
users; the reference usually relates either to accounting and corporate finance applications, or to quantitative finance
applications

Typically, financial modeling is understood to mean an exercise in either asset pricing or corporate finance, of a
quantitative nature. In other words, financial modeling is about translating a set of hypotheses about the behavior of
markets or agents into numerical predictions; for example, a firm's decisions about investments (the firm will invest 20%
of assets), or investment returns

Financial models are used for many different reasons. The most common of which are business valuation, scenario
preparation for strategic planning, cost of capital calculations for corporate finance projects, capital budgeting decisions
and the allocation of corporate resources. Financial models are also used in the creation of projections and trends for
forecasts and many other uses related to industry comparisons, ratio analysis common size financial statements.

A financial modeling is very important to analyses the financial situation of the company and I have prepare a financial
model of Godrej Consumer Products ltd. and analyze the future performance of the company and also suggest to the
customer weather invest in Godrej Consumer Products ltd. is profitable or not.

5
 Table of Contents

TABLE OF CONTENT
Certificate…………………………………………………………………………………………….. 1

Supervisor Certificate……………………………………………………………………………. 2

Certificate of Originality………………………………………………………………………… 3

Acknowledgement………………………………………………………………………………... 4

Executive Summary………………………………………………………………………………..5

CHAPTER NO. CHAPTER NAME PAGE NO.

1 ITRODUCTION 7-11

2 OBJECTIVE 12

3 LITERATURE REVIEW 13-15

4 RESEARCH METHODOLOGY 16-18

5 DATA ANALYSIS AND INTERPRETATION 19-24

6 FINDING 25-30

7 CONCLUSION 31

8 BIBLIOBRAPHY 32

6
 Chapter 1: Introduction

1.1 COMPANY INDRODUCTION

Godrej Consumer Products Limited (GCPL)

Brighter Living; Enjoy a brighter Godrej

www.godrejcp.com

Godrej Consumer Products Limited (GCPL) is an Indian consumer goods company based in Mumbai, India. GCPL's
products include soap, hair colourants, toiletries and liquid detergents. Its brands include 'Cinthol', 'Godrej Fair Glow',
'Godrej No.1' and 'Godrej Shikakai' in soaps, 'Godrej Powder Hair Dye', 'Renew', 'ColourSoft' in hair colourants and 'Ezee'
liquid detergent. GCPL operates several manufacturing facilities in India spread over seven locations and grouped into
four operating clusters at Malanpur (Madhya Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi-
Katha (Himachal Pradesh), Pondicherry, Chennai and Sikkim.

The consumer products business was part of the erstwhile Godrej Soaps Limited (GSL) and was demerged into Godrej
Consumer Products Limited in April 2001, pursuant to a scheme of demerger approved by the Honorable High Court of
Judicature, Mumbai, dated 14 March 2001.

GCPL has a widespread distribution network across India. It makes sales in both urban and rural markets, enabling it to
benefit from the opportunities in both segments. It has a sales team of over 250 staff spread across the country. It has a
network of 33 C&F agents and as on 29 February 2008. It had 1,247 distributors, 142 super stockiest and 3,175 sub
stockiest to support the sales team in India. Its distributors and sub stockiest cover around 650,000 retailers in India.

GCPL has linked its major distributors in India through a system called 'Sampark', a collaborative planning, forecasting
and replenishment system with its ERP system leading to reduced inventory levels.

GCPL operates in the domestic and international markets in the 'personal and household care' segment. Some of the
categories are soaps, hair colorants, toiletries and liquid detergents. In 2012, it made an entry into fast-growing air

7
 TYPES OF PRODUCT OFFERED BY GODREJ CONSUMER PRODUCTS LTD.

HAIR CARE HOME CARE PERSONAL CARE

Godrej Expert Godrej Good Knight Godrej No. 1

Godrej Darling Godrej Hit Godrej Cinthol

Godrej Ilicit Color Godrej Aer Godrej Protekt

Godrej BBlunt color Godrej Ezee Godrej Mitu

Godrej Issue Godrej Hit Godrej Pamela grant Beauty

Godrej Inecto Godrej Stella Air Freshener Godrej Villeneuve

Godrej Renew

Godrej Roby

Godrej 919

Godrej Nupur

Godrej Frika

8
COMPANY’S PRESENCE ACROSS MULTIPLE GEOGRAPHIES WITH A
BALANCED MIX OF CATEGORIES

Domestic Business Division International Business Division




 Domestic

147 Soaps Indonesia/Mi

266 103 ddle East
463 Hair Colour Africa
1,085
453 1,157
Household Latin America
Insecticides
397
1,613
 1,934
International business division Others Europe

Unbranded Others
and exports

Competition: Godrej Consumer Products Ltd. Competition in the market

Dabur India

ITC

Emami

Colgate

Marico

9
1.2 TOPIC INTRODUCTION

Financial modeling is the process by which a firm constructs a financial representation of some, or all, aspects of the firm
or given security. The model is usually characterized by performing calculations and makes recommendations based on
that information. The model may also summarize particular events for the end user such as investment management
returns or the Sortino ratio, or it may help estimate market directions.

What is a financial model used for?

The output of a financial model is used for decision making and performing financial analysis, whether inside or outside
of the company. Inside a company, executives will use financial models to make decisions about:

 Raising capital (debt/or equity)

 Making acquisitions (business and/or assets)
 Growing the business (i.e. opening new stores, entering new markets, etc.)
 Selling or divesting assets and business units.
 Budgeting and forecasting (planning for the years ahead)
 Capital allocation (priority of which projects to invest in)
 Valuing a business

How do you build a financial model? (7 Step guide)

Financial modeling is an iterative process. You have to chip away at different sections until you are finally able to tie it all
together.

Below is a step-by-step breakdown of where you should start and how to eventually connect all the dots. For much more
detailed instructions, and to work through your own Excel model, check out our financial modeling courses.

1. Historical results and assumptions

Every financial model starts with a company’s historical results. You begin building the financial model by
pulling three years of financial statements and inputting them into Excel. Next, you reverse engineer the
assumptions for the historical period by calculating things like revenue growth rate, gross margins, variable costs,
fixed costs, AP days, inventory days, to name a few. From there you can fill in the assumptions for the forecast
period as hard-codes.

2. Start the income statement

With the forecast assumptions in place, you can calculate the top of the income statements with revenues, COGS,
gross profit, and operating expenses down to EBITDA. You will have to wait to calculate depreciation,
amortization, interest and taxes.

3. Start the balance sheet

10
With the top of the income statement in place, you can start to fill in the balance sheet. Begin by calculating
accounts receivables and inventory, which are both functions of revenue and COGS as well as the AR days and
inventory day’s assumptions. Next, fill in accounts payables which are a function of COGS and AP days.

4. Build the supporting schedules

Before completing the income statement and balance sheet you have to create a schedule for capital assets like
PP&E as well as for debt and interest. The PP&E schedule will pull from the historical period and add capital
expenditures and subtract depreciation. The debt schedule will also pull from the historical period and add
increases in debt and subtract repayments. Interest will be based on the average debt balances.

5. Complete the income statement and balance sheet

The information from the supporting schedules completes the income statement and balance sheet. On the income
statement, link depreciation to the PP&E schedule and interest to the debt schedule. From there you can calculate
earnings before tax, and net income. On the balance sheet link the closing PP&E balance and closing debt balance
from the schedules. Shareholders equity can be completed by pulling forward last year’s closing balance, adding
net income and capital raised and subtracting dividends or shares repurchased.

6. Build the cash flow statements

With the income statement and balance sheet complete, you can build the cash flow statements with the
reconciliation method. Start with net income, add back depreciation and adjust for the changes in non-cash
working capital, which results in cash from operations. Cash used in investing is a function of capital expenditures
in the PP&E schedule and cash from financing is a function of the assumptions that were laid out about raising
debt and equity.

7. Perform the DCF analysis

When the three statement model is completed its time to calculate free cash flow and perform the business
valuation. The free cash flow of the business is discounted back to today at the firms cost of capital (its
opportunity cost, or required rate of return). We offer a full suite of courses that teach all of the above steps with
examples, templates, and step-by-step instruction.

I prepare a financial model on Godrej Consumer Products Ltd.

11
 Chapter 2: Objectives of the Research

The study has been undertaken in order to achieve the following objective:

 To analyze the overall view of the company that how the company is been performing
 To analyze the future performance of the company

12
 Chapter 3: Literature Review

Research Paper 1

Rohit sinha (ICICI Direct on 2017)

• EBITDA margin contracted 270 bps Y/Y to 6.5% (v/s Emkay Est. 7.9%) due to high cost of raw material
inventory. During the quarter, EBITDA stood at Rs86mn (v/s Emkay Est. Rs101mn).
• As a result, net profit was below our estimate at Rs52mn (v/s Emkay Est. Rs58mn). Depreciation and interest
expenditure stood at Rs31.2mn and Rs5.1mn (v/s Rs29.6mn and Rs6.4mn in Q1FY17), respectively. Tax rate during
the quarter was 26.8% (v/s 21.8% in Q1FY17).
• Management guided for a revenue run-rate of Rs5.5 - 6.0bn with EBITDA margin in the range of 8-10% for
FY18. The planned capex of Rs300mn will partially come in effect by Mar’18 and remaining by Dec’18. We
recommend BUY with TP of Rs547 (20x FY19E)

Research Paper 2

Bhavik shah (ICICI Direct on 2017)

• Apcotex has plant in Taloja, Maharashtra with capacity of 55,000 MT for Synthetic Latex and 8,000 MT for High
Styrene Rubber (HSR). Another plant is in Valia, Gujarat which was acquired last year from Omnova with the
capacity of 12,000 MT for Nitrile Butadiene Rubber (NBR) and 8,000 MT for HSR.
• It is believed that more than 10% of Pidilite revenue comes from Dr Fixit brand and APCO is one of the key
suppliers for raw material of Dr Fixit.
• we expect with acquisition of Nina water proofing system by Pidilite, the construction revenue share will likely to
increase in the years to come

• Pidilite has been contributing ~5-6% to the overall consolidated revenue

• Increasing Carpet demand for Domestic & International markets to aid financial performance for APCO

Research Paper 3

Chirag shah (ICICI Direct on 08 Nov 2016)

• The OSIPL acquisition is likely to give the company entry into new industries like automotive, footwear, LPG
tubing and wire & cables.
• Revenue de-growth on account of weak demand, higher raw material prices.Price of raw material 'butadiene' up
by ~25% in Q2FY17
• In the past five years (FY10-16), AIL witnessed capex growth of 13.1% CAGR, though mostly driven by the latex
segment
• Capacity in the synthetic latex segment has grown at ~17.4% CAGR in FY10-16, driven by steady growth rates in
consuming industries like paper (~8.5-9%), construction (~15%) and carpet segment (8-12%).
• OSIPL, the company added capacity of 7000 MTPA in the high styrene rubber segment and 13000 MTPA
capacity in nitrile rubber.

Research Paper 4

Sagar Ghandhi (ICICI Direct on 12 Aug 2016)

13
• FY17E, overall utilization levels will be ~75% at the consolidated level.
• Owing to maintenance shut down standalone revenues got impacted
• The company’s current capacity in synthetic rubber is at ~10,000 MTPA. OSIPL will add another ~9000 MTPA
to this segment.
• In the past five years (FY10-16), AIL witnessed capex growth of 13.1% CAGR, though mostly driven by the latex
segment
• Capacity in the synthetic latex segment has grown at ~17.4% CAGR in FY10-16, driven by steady growth rates in
consuming industries like paper (~8.5-9%), construction (~15%) and carpet segment (8-12%)
• the acquisition of OSIPL, the company added capacity of 7000 MTPA in the high styrene rubber segment and
13000 MTPA capacity in nitrile rubber

Research Paper 5
Abhishek Murarka (ICICI Direct on 23 May 2016)

• the management suggests that for FY17E, overall utilisation levels will be ~75% on a consolidated level.
• The company’s current capacity in synthetic rubber is at ~10,000 MTPA. OSIPL will add another ~9000 MTPA
to this segment.
• Apcotex Industries acquired a 100% stake in ‘Omnova Solutions India Pvt Ltd (OSIPL)’ in an all-cash deal
(acquisition funded through internal accruals). The enterprise value of this transaction was | 36 crore
• Revenues declined YoY on account of lower volumes together with lower realisations. Volume degrowth due to
higher imports from Europe, which, in turn, was due to lower product prices

• the past five years (FY10-16), AIL witnessed capex growth of 13.1% CAGR, though mostly driven by the latex
segment

Research Paper 6

Amar Mourya (IndiaNevesh on 27 April,2016)

• APCOTEX 7500 MTPA

• OSIPL 9000 MTPA(Likely to shift the capacity to NBR plant

Research Paper 7

KR Choksey (ICICI Direct on November 10, 2015)

• AIL’s strategy has been to increase its latex capacity (capex CAGR of 21% in FY10-15)
management suggests that for FY16E, overall utilisation levels will be ~80% (~85% in latex segment and ~50% in
rubber segment). H2FY16E will see improved demand vs. H1FY16 mostly due to an up-tick in economic activity in
the domestic markets
• the management expects to take a call on expansion (brownfield expansion of 15000 tonnes or greenfield
expansion of 55000 tonnes) by Q3FY16E. In our base case, we have built in capacity expansion of 15000 tonnes,
which will get commissioned in FY17E.
• maintain the capacity utilisation estimates of 80% for FY17E. Hence, we expect AIL to clock revenues of | 292.9
core in FY17E.
• revise revenue estimates for FY17E downwards as we expect the synthetic latex capacity to stabalise at ~ 62000
tonnes coupled with utilisation rates at 85%
• In the past five years (FY10-15), AIL witnessed healthy capacity expansion growth of 16% CAGR, though
mostly driven by the latex segment.
• Capacity in the synthetic latex segment has grown at ~21% CAGR in FY10-15,driven by steady growth rates in
consuming industries like paper (~8.5-9%), construction (~15%) and carpet segment (8-12%).
14
Research Paper 8

Dhaval Shah (ICICI Direct on, 2017)

• Volumes were impacted due to strike (last qtr) which had some impact in April month. Further implementation of
GST has also resulted lower demand in domestic market. However robust growth from exports supported revenues
during the qtr.
• Although key raw material prices mainly Butadiene declined during this qtr, the company reported high raw
material costs. This was due to the earlier purchase of some raw materials at higher prices which led to depressed
margins. Going ahead, we expect improvement in gross margins to some extent.
• One of the largest paper customer, who was contributing ~5% to the overall revenues still remain uncertain.
• The management expects implementation of GST could be positive for the company.
• The company has initiated first phase of capex worth INR 30 crores for debottlenecking which will reduce
operating cost and will improve the quality of valia plant. The phase 1 capex plan will be completed by Mar’18. The
company is also setting up power plant atValia to reduce power & fuel cost, which is expected to commission at the
end of Dec’

15
 Chapter 4: Research Methodology

Type of Research design:

In order to fulfill the purpose of research objective this imperial research has been carried out
with the secondary data collected through different web site

Source of Data collection

• Company website

• Using historical financial data of the company as my secondary source

16
S.No Activity Remark
1. Putting data of P&L of last 16 quarters Instead of copy and paste data use excel of data
available at Bse website to save time
2. Putting data of Balance Sheet of last 4 years
3. Putting data of P&L of last 4 years.
4. Putting data of cash flow of last 4 years.
5. Writing P&L schedule of last 3 years. It could be of 4 years in some cases. These include
writing other income and other expense.
6. Writing schedule liability of last 3 years Only big figures should be written and smaller
figures can be clubbed together with heading
others.
7. Writing schedule assets of last 3 years Only big figures should be written and smaller
figures can be clubbed together with heading
others.
8. Subsidiaries financials of last 2 years Screen Shot can be taken if many subsidiaries are
there but data of the following should be in excel
only Turnover,PAT,Assets,Debt
9. Formatting of the sheet It will not include editing formula or interlinking
sheets. It will include just standard formatting like
font colour ,putting margins etc
10. Copy quantitative statement, tables and key is copying and not understanding
graphs from (a)Company website, (b)
Investor Presentation, (c) 4 AR- CS, DR & MD
(d) Mgmt Interview (e) Segment Revenue (f)
Investor Presentation (g) Concall, (h) 3HF
11. Paste 1.Segment revenue in revenue driver, Key is just paste, do not think
2. mgmt guidance and future statements in
Management Guidance, 3. rest all in Matrix
1
& Re arrange Matrix 1 in PL sequence
(capacity, volume, realization, margin etc.)
12. Co-relate quarterly PL, BS, CF and Matrix 1- This is where analytical thinking gets in the
picture
13. Seek more information to understand how
business was during last 3 years (check
historical too to see long term business
trend)
14. Meeting to explain business understanding Self Model Built in rough before meeting
15. Writing Revenue Driver and PL projections
16. Writing BS and CF projections
16. Ratios etc.
Valuation and Other studies- discussion only 2nd Meeting

17
 Chapter 5: Data Analysis and Interpretation

Analysis the historical data of Godrej consumer products ltd.

Profit & Loss A/C

Here I am showing last 5 year historical data of Profit and loss Accounts

In Profit and loss account other income is increases in FY14:

The other income is increases because of Intt. Income, surplus on sale of non current investment, Dividend from Non
current investment, income from rent is more increases in FY16 as compare to the previous year

Company increases employee benefit expenses and other expenses from FY16:
18
The Apcotex company increases the salary wages allowances, allowances of contract labour and other expenses also
increases Fixed Assets Written off, Impairment of fixed assets etc and company acquire the Omnova solution so
company increases the employee benefit expenses and there expenses

EBITDA starts falling after FY16:

In Q2FY17 on account of higher raw material costs and muted demand low volumes of sale from one of its largest clients
in the paper & paperboard industry, Negative operating leverage, this is because of the lower EBITDA margins of the
acquired company

Cost of raw material is increases:

In FY17 the price is increases because the company increases the price of Styrene and butadien product

Depreciation, Amortisation and Impairment Expenses and increases:

From FY14 the company increases the capacity utilization and additional plant, machinery Furniture & office equipment,
Vehicles, building etc is acquire by the company so company have charge more amount of depreciation

Change in inventories of finished goods, work in progress and stock in trade is decreases from FY16:
In year 2016, inventories increases and the closing inventories is more than opening inventories

PAT is decline after FY2016 till FY2017:

PAT came down 51.1% YoY, due to a weak operational performance.

19
 Balance Sheet

Here we are showing last 5 year historical data of Balance Sheet

Company increases the Share Capital and reserve & surplus in FY16:

The company increases the share capital by issuing bonus shares for every one equity shares during the year of Rs
518.45 lakh and reserve & surplus is increases by Consolidation of the company

Short term borrowings is increases as compare to long term borrowings:

Company want to increases the short term borrowings, as working capital requirements.

20
Non Current liabilities are decreases in FY16:
Non current Liabilities is decreases in FY16 because the company did not pay any kind of differed tax liabilities in FY16
which is directly impact on the Non current liabilities

Other Current liabilities are increases till FY16:

The main reason for increase in the other current liabilities is increase in Outstanding Expenses, Security Deposit, Bonus,
Salaries & Wages, Excise duty on Closing Stock etc.

Company cash and bank balance is decreases:

Company cash and bank balance is decreases because the company start purchasing the fixed asset, long term
investment, pay the long term borrowings that's why company cash balance start decreasing

Revenue Driver

21
Here we are showing historical data of revenue driver

Note:

2013:- Improvement in process technology.

Modification of existing products for up-gradation of performance

2015:- Upgrading of present technology is a continuous process, implemented and adapted by the Company through
innovation. Efforts are made to reduce batch cycle time and improve operational efficiency.

2017:- Capacity of HSR product increases

Realization per ton increases in FY17:

In FY17 the price is increases because the company increases the price.

Due to higher imports of low price Finished Good from Europe, the company has to decreases the price of product

22
 Cost Driver

We prepare cost driver of last 6 year in cost driver we show the sales per ton Expenditure, Depreciation on Fixed asset,
Int. Cost, total borrowings, tax rate and how they increases or decreases.

COGS /ton Sales are decreases:

After acquisition, raw material requirements such as Butadiene, Styrene has been increased, which provides comfort in
terms of overall raw material cost and thereby product pricing

Interest cost % to total Borrowings is increases till FY16:

As Total borrowing is decreases the company pay more amount of Interest because the company taken more amount of
short term borrowings.

23
 Chapter 6: Findings

Forecast Revenue Driver

Here we are showing the forecasted data of Revenue Driver.

DATA TAKEN FROM ENTERED INTO

Sales in Cr Annual Profit & Loss A/c Revenue Driver

24
Capacity Utilization is increases:

We are assuming that from last 5 year the capacity utilization is increases so in FY18E the capacity is increases.

Realization per Ton is decreases:

Because In FY18E Realization per ton is decreases due to the GST or CST

Forecast Cost Driver

25
Here we are showing the forecasted data of Forecasted Cost Driver

DATA TAKEN FROM ENTERED INTO

Revenue from operation Profit & loss Cost driver

Sales In Ton Revenue driver Cost driver

COGS Profit & loss a/c Cost driver

Employee benefits expenses Profit & loss a/c Cost driver

Other expenses taken Profit & loss a/c Cost driver

PBT Profit & loss a/c Cost driver

Tax Profit & loss a/c Cost driver

Depreciation Profit & loss a/c Cost driver

Interest cost Profit & loss a/c Cost driver

Fixed assets Balance sheet Cost driver

Long term borrowings Balance sheet Cost driver

Short term borrowings Balance sheet Cost driver

26
COGS % to sale is decreases:

Decrease in the COGS due to the decrease in the cost of raw material and another reason is GST and CST.

Expenditure % to sale is decreases in FY18:

Expenditure % to sale is decreases in FY18.

Forecast Profit & Loss A/C

Here we are showing the forecasted data of Profit & Loss A/C

FOR FY18E

DATA TAKEN FROM ENTERED INTO

27
 Revenue from Operations Revenue Driver Profit & Loss

Other operating Income Revenue Driver Profit & Loss

COGS Cost Driver Profit & Loss

Employee Benefits Expense Cost Driver Profit & Loss

Other Expenses Cost Driver Profit & Loss

Expenditure Cost Driver Profit & Loss

Depreciation Cost Driver Profit & Loss

Finance Costs Cost Driver Profit & Loss

Total Tax Cost Driver Profit & Loss

In Forecasted data Revenue from operation is increases in FY18E:

In Forecasted data Revenue from operation is increases because capacity utilization is increases as per as last 6 year
trend that’s why revenue from operation is increases

PAT is increases in FY18E:

PAT is increases in FY18E because increase the revenue from operation and company will decrease the expenditure
amount because company is start planning of Capex of Rs 30 Cr by this PAT is increases

28
 Forecast Balance sheet

Here we are showing the forecasted data of Balance sheet.

In the forecasted balance sheet share capital, Non Current liability, current liability Intangible assets, long term loans,
other Non Current assets and other current assets is same.

FOR FY18E

DATA TAKEN FROM ENTERED INTO

Cash and bank balances Cash Flow Statement Balance sheet

Cash and Bank balance is increases:

After the acquisition company maintain a strong cash balance because company increase the PBT and decreases the
expenditure

Apcotex Company increases the fixed asset from FY16

29
Increase in the short term borrowings:

Short term borrowings is increases Because the company want to paid the long term borrowing like loan from bank of
Rs 8.36 cr. And company want to increases the short term borrowings, as working capital requirements

Increase in the Reserve and surplus in FY18:

Reserve and surplus is increases because company increases the PAT and company pay less amount of dividend
distribution tax

Trade Payable is decreases:

Because company plan a capex of Rs 30cr by this capex plan a company reduces the credit period

30
 Chapter 7: Conclusion

The conclusion of Godrej Consumer Products ltd. is handle product quality along with decent customer and provide the
product at reasonable be price so that customer afford this product. The constant focus of management to diversify its
presence across different product applications in home, personal and hair care facilitated them to strengthen GCPL’s
dominance into the sector. The results will help in valuation of the business, getting credit rating and in merge
and acquisitions of business. Analysis of the balance sheet and income statement as has been carried out
successfully.

Hence if investor choose GCPL as there investment choice then it’s quite sure that the definitely makes good return in
future.

31
 Chapter 8: Bibliography

List of websites:
https://www.google.co.in

http://www.bseindia.com/

https://www.researchbytes.com/

https://www.researchbytes.com/LandingPage.aspx

http://www.godrejcp.com//

https://en.wikipedia.org/wiki/Godrej_Group

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