GROUP 8

Shilpi Kumari 120102

Shivadhatri 120103
Sapna Rani 120099
Shilpa Kumari 120101
Shikha Surbhi 120044
Shilpa Kumari 120045
Shantanu Raj 120043
Shankul Anand 120042
Sanskriti Goyal 120041
Assumptions for Forcasting Model

Details
Income Statement
Sales
Cost of Sales
Selling, General & Admn. Expenses
Depreciation
Other net (Income)/Expenses

Interest (Income)
Interest Expense

Income Taxes

Balance Sheet ($ Million)

Assets
Cash and Marketable Securities
Accounts Receivable
Inventories
Other Current Assets
Property, Plant and Equipment, Gross
Accumulated Depreciation
Property, Plant, and equipment, Net
Other Non-Current Assets

Liabilities and Shareholders' Equity

Accounts Payable
Short-Term Debt
Other Current Liabilities
Long-Term Debt
Deferred Income Taxes
Other Non-Current Liabilities
Paid-In Capital
Retained Earnings

Other Assumption
Dividend payout ratio
Interest on short term debt
Interest on long term debt
Assumptions

Will grow at 17%

76.5% Sales based on hiatorical average
Based on historical average
2.85 % of PPE Based on analysis of depreciation schedule
3.61% of sales based on historical average

Calculated based on average balance and interest rate specified

For STD 06.8% based on historical interest payment
For Long term debt (LTD) inetrest will remain at Rs. 15382.2 crores(At 2019 Level)

25% of pre tax income

1.89% of sales based on historical average

4.23% of sales based on historical average
20.04% of sales based on historical average
11.58% of sales based on historical average

Taken from Annual Report Notes

Taken from Annual Report
Will grow at 4% per year, based on historical average

9.89% of sales, same as historical average

Hold level constant at year-end 2019 level
5.82% of sales, same as 2019
Will remain unchanged at 2019 level
0.25% of sales, based on historical average
0.13% of sales, based on historical average
Will remain unchanged at 2019 level
Calculated from other items
At 2020 level
Based on histrical payment
Forcasting
Factor

17% YoY
76.7%
8.0%
2.85%
3.89%

0.0%
6.8%

25%

2.65%
4.83%
20.16%
11.64%
0%

4%

10.31%

5.58%

0.20%
0.14%
Historical Income Statement and Balance Sheets for MARICO.

Income Statement (in Rs. crores)

Year 2016 2017 2018 2019

Sales 468.2 494.37 485.75 517.41
Cost of Sales 401.11 307.32 308.65 400.63
Gross Operating Income 67.09 187.05 177.10 116.78

Selling, General & Admn. Expenses 0 69.72 45.99 43.44

Depreciation 54.75 74.25 64.10 66.90
Other net (Income)/Expenses 14.8 19.86 26.68 11.74
EBIT 27.14 62.94 93.69 18.18

Interest (Income) 0 0.00 0.00 0.00

Interest Expense 16.97 14.78 12.59 7.55
Pre-Tax Income 10.17 48.16 81.10 10.63

Income Taxes 15.0425 24.29 27.28 18.91

Net Income -4.87 23.87 53.83 -8.28

Balance Sheet (Rs. crores)

Assets
Cash and Marketable Securities 96.97 134.54 77.21 60.81
Accounts Receivable 130.55 192.10 227.61 288.15
Inventories 791.59 767.56 1082.96 1313.18
Other Current Assets 409.6 586.84 615.44 672.34
Total Current Assets 1428.71 1681.04 2003.22 2334.48

Property, Plant and Equipment, Gross 2287.91 2275.79 2320.16 2248.58

Accumulated Depreciation 554.75 574.25 564.10 566.90
Property, Plant, and equipment, Net 1733.16 1701.54 1756.06 1681.68

Other Non-Current Assets 69.19 110.06 3.73 3.73

Total Non-Current Assets 1802.35 1811.60 1759.79 1685.41

Total Assets 3231.06 3492.64 3763.01 4019.89

Liabilities and Shareholders' Equity

Accounts Payable 404.38 483.52 476.24 586.65
Short-Term Debt 8.64 25.83 108.35 122.38
Other Current Liabilities 292.46 374.30 231.35 242.12
 Total Current Liabilities 705.48 883.65 815.94 951.15

Long-Term Debt 168.74 0.00 0.00 0.00

Deferred Income Taxes 12.25 9.17 9.75 18.05
Other Non-Current Liabilities 1.7 2.14 13.08 9.50
Total Liabilities 888.17 894.96 838.77 978.70

Paid-In Capital 64.5 129.02 129.05 129.09

Retained Earnings 2278.39 2468.66 2795.19 2912.10
Total Shareholders' Equity 2342.89 2597.68 2924.24 3041.19

Total Liabilities and Shareholders' Equity 3231.06 3492.64 3763.01 4019.89

 2020
597.00
461.00
136.00

48.00
81.00 0.028484
30.00
37.00

0.00
12.00
25.00

27.25
-2.25

339.00
430.00
1234.00
711.00
2714.00

2326 -0.005297 0.019497 -0.030851 0.034431 0%

581.00 Average
1745.00 -0.018244 0.032042 -0.042356 0.037653 0%
Average
182.00 0.590692 -0.966109 0 47.79357 1185%
1927.00

4641.00

715.00
131.00
278.00
1124.00

0.00
0.00
9.00
1133.00

129.00
3379.00
3508.00

4641.00
Historical Income Statement and Balance Sheets

Income Statement (in Rs. crores) 6% -2% 7%

Year 2016 2017 2018 2019

Sales 468.2 494.37 485.75 517.41
Cost of Sales 401.11 307.32 308.65 400.63
Gross Operating Income 67.09 187.05 177.10 116.78

Selling, General & Admn. Expenses 0 69.72 45.99 43.44

Depreciation 54.75 74.25 64.10 66.90
Other net (Income)/Expenses 14.8 19.86 26.68 11.74
EBIT 27.14 62.94 93.69 18.18

Interest (Income) 0 0.00 0.00 0.00

Interest Expense 16.97 14.78 12.59 7.55
Pre-Tax Income 10.17 48.16 81.10 10.63

Income Taxes 15.0425 24.29 27.28 18.91

Net Income -4.87 23.87 53.83 -8.28

Balance Sheet (Rs. crores)

Assets
Cash and Marketable Securities 96.97 134.54 77.21 60.81
Accounts Receivable 130.55 192.10 227.61 288.15
Inventories 791.59 767.56 1082.96 1313.18
Other Current Assets 409.6 586.84 615.44 672.34
Total Current Assets 1428.71 1681.04 2003.22 2334.48

Property, Plant and Equipment, Gross 2287.91 2275.79 2320.16 2248.58

Accumulated Depreciation 554.75 574.25 564.10 566.90
Property, Plant, and equipment, Net 1733.16 1701.54 1756.06 1681.68

Other Non-Current Assets 69.19 110.06 3.73 3.73

Total Non-Current Assets 1802.35 1811.60 1759.79 1685.41

Total Assets 3231.06 3492.64 3763.01 4019.89

Liabilities and Shareholders' Equity

Accounts Payable 404.38 483.52 476.24 586.65
Short-Term Debt 8.64 25.83 108.35 122.38
Other Current Liabilities 292.46 374.30 231.35 242.12
 Total Current Liabilities 705.48 883.65 815.94 951.15

Long-Term Debt 168.74 0.00 0.00 0.00

Deferred Income Taxes 12.25 9.17 9.75 18.05
Other Non-Current Liabilities 1.7 2.14 13.08 9.50
Total Liabilities 888.17 894.96 838.77 978.70

Paid-In Capital 64.5 129.02 129.05 129.09

Retained Earnings 2278.39 2468.66 2795.19 2912.10
Total Shareholders' Equity 2342.89 2597.68 2924.24 3041.19

Total Liabilities and Shareholders' Equity 3231.06 3492.64 3763.01 4019.89

 15%
Forcast period
2020 2021 2022 2023 2024 2025 2026
597.00 698.49 817.23 956.16 1118.71 1308.89 1531.40
461.00 535.41 626.42 732.92 857.51 1003.29 1173.85
136.00 163.08 190.81 223.25 261.20 305.60 357.55

48.00 55.87 65.37 76.49 89.49 104.70 122.50

81.00 83.31 85.68 88.12 90.63 93.21 95.87
30.00 27.16 31.78 37.18 43.51 50.90 59.55
37.00 51.07 71.54 95.82 124.58 158.59 198.74

0.00 0.00 0.00 0.00 0.00 0.00 0.00

12.00 12.00 12.00 12.00 12.00 12.00 12.00
25.00 39.07 59.54 83.82 112.58 146.59 186.74

27.25 9.77 14.88 20.96 28.15 36.65 46.68

-2.25 29.30 44.65 62.87 84.44 109.94 140.05

339.00 18.49 21.63 25.31 29.61 34.65 40.54

430.00 33.72 39.45 46.16 54.01 63.19 73.93
1234.00 140.84 164.78 192.79 225.56 263.91 308.78
711.00 81.32 95.14 111.32 130.24 152.38 178.29
2714.00 274.37 321.01 375.58 439.43 514.13 601.53

2326 2258.57 2336.34 2268.61 2346.72 2278.70 2357.15

581.00 650.21 735.89 824.01 914.64 1007.85 1103.72
1745.00 1608.37 1600.45 1444.60 1432.08 1270.84 1253.43

182.00 3.88 4.03 4.20 4.36 4.54 4.72

1927.00 1612.25 1604.49 1448.80 1436.45 1275.38 1258.15

4641.00 1886.61 1925.49 1824.38 1875.88 1789.51 1859.69

715.00 72.01 84.26 98.58 115.34 134.95 157.89

131.00 -7767.95 -1248.34 -1372.00 -1346.89 -1464.11 -1430.06
278.00 39.01 45.64 53.39 62.47 73.09 85.52
1124.00 -7656.93 -1118.44 -1220.02 -1169.07 -1256.08 -1186.65

0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 1.39 1.63 1.91 2.23 2.61 3.05
9.00 0.96 1.12 1.31 1.53 1.79 2.09
1133.00 -7654.58 -1115.70 -1216.81 -1165.31 -1251.68 -1181.50

129.00 6629.09 129.09 129.09 129.09 129.09 129.09

3379.00 2912.10 2912.10 2912.10 2912.10 2912.10 2912.10
3508.00 9541.19 3041.19 3041.19 3041.19 3041.19 3041.19

4641.00 1886.61 1925.49 1824.38 1875.88 1789.51 1859.69

0.00 0.00 0.00 0.00 0.00 0.00

 Average
Assumed at 9.57% 57.22% 11.62% 6.17% 21.14%
Year 2016 2017 2018 2019 2020
ROI
ROA 0% 1% 1% 0% 0%

Facebook
200000 impression 120000 24000000 10 cr impression

Intsagram
Pay per click 0.5 37.5 3750000 1 lakh click
Cost per mile(Per thausand visitor) 7 525

Google adwords EXPECTED AD EXP.

Per day 4000 1460000
Total 29210000
Total (in Crores) 2.921

2016 2017 2018 2019 2020

Net Income ( Before Ad Exp. Increase) -4.8725 23.87 53.825 -8.2775 -2.25
Net Income -4.8725 23.87 53.825 -8.2775 -2.25
ROI
 2021 2022 2023 2024 2025 2026

2% 2% 3% 5% 6% 8%

2021 2022 2023 2024 2025 2026

122.7344 169.5743 198.6538 232.684 272.5067 319.1068

2021 2022 2023 2024 2025 2026

29.2992 44.65205 62.86673 84.43694 109.9405 140.0536 15 % as assumption
120.4844 290.0588 488.7126 721.3966 993.9033 1313.01 17%
91.18522 245.4067 425.8459 636.9596 883.9628 1172.956
Statement of Cash Flow
2018 2019 2020 2021
Cash Flow from Operations
Net Income 53.83 -8.28 -2.25 29.30
Depreciation Expence 64.10 66.90 81.00 83.31
Decrease/(Increase) in Account Receivable -61.55 -35.51 -60.54 -141.85
Decrease/(Increase) in Inventories 24.03 -315.40 -230.22 79.18
Decrease/(Increase) in Other current Asset -177.24 -28.60 -56.90 -38.66
Decrease/(Increase) in Account Payable 79.14 -7.28 110.41 128.35
Decrease/(Increase) in Other current Liabilities 81.84 -142.95 10.77 35.88
Decrease/(Increase) in Deffered Income Tax -3.08 0.58 8.30 -18.05
Decrease/(Increase) in Other Non Current Liabilities 0.44 10.94 -3.58 -0.50
Total Cash Flow from Operations 61.505 -459.5975 -143.01 156.9564

Cash Flow from Investing

(Additional to) Property, Plant & Equipment 12.12 -44.37 71.58 -77.42
(Investment) in Other Non-Current Assets -40.87 106.33 0.00 -178.27
Total Cash Flow from Investing -28.75 61.96 71.58 -255.69

Cash Flow from Financing

From Issuance/(Repayment) of Short Term Debt 17.19 82.52 14.03 8.62
From Issuance/(Repayment) of Long Term Debt -168.74 0.00 0.00 0.00
From Sale/(Purchase) of Equity 64.52 0.03 0.04 -0.09
Cash Dividend paid to Sharholders 0.00 0.00 0.00 0.00
Total Cash Flow from Financing -87.03 82.55 14.07 8.53

Net Change in Cash & Marketable Securities -54.275 -315.0875 -57.36 -90.2036

Beginning Cash & Marketable Securities 96.97 134.54 77.21 60.81

Ending Cash & Marketable Securities 134.54 77.21 60.81 339.00
Net Change in Cash & Marketable Securities 37.57 -57.33 -16.4 278.19

Difference -91.845 -257.758 -40.96 -368.394

 2022 2023 2024 2025 2026

44.65 62.87 84.44 109.94 140.05

85.68 88.12 90.63 93.21 95.87
396.28 -5.73 -6.71 -7.85 -9.18
1093.16 -23.94 -28.01 -32.77 -38.35
629.68 -13.82 -16.17 -18.92 -22.14
-642.99 12.24 14.32 16.76 19.61
-238.99 6.63 7.76 9.08 10.62
1.39 0.24 0.28 0.32 0.38
-8.04 0.16 0.19 0.22 0.26
1360.825 126.7611 146.72 169.99 197.12

67.43 -77.76 67.73 -78.11 68.03

178.12 -0.16 -0.16 -0.17 -0.17
245.5468 -77.91927 67.5642608 -78.2775615 67.852106246

-7898.95 6519.61 -123.66 25.11 -117.23

0.00 0.00 0.00 0.00 0.00
6500.09 -6500.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
-1398.856 19.60881 -123.66238 25.11324774 -117.2286606

207.5156 68.45065 90.62 116.83 147.74

339.00 18.49 21.63 25.31 29.61

18.49 21.63 25.31 29.61 34.65
-320.5093 3.143413 3.68 4.30 5.03

528.025 65.30724 86.95 112.52 142.71

Historical Income Statement and Balance Sheets
Common size analysis

2016 2017 2018 2019 2020

Sales 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 85.7% 62.2% 63.5% 78.1% 77.2%
Gross Operating Income 14.3% 37.8% 36.5% 21.9% 22.8%

Selling, General & Admin. Expenses 0.0% 14.1% 9.5% 8.5% 8.1%
Depreciation 11.7% 15.0% 13.2% 1.3% 1.4%
Other Net(Income)/Expenses 3.2% 4.0% 5.5% 2.2% 5.0%
EBIT 5.8% 12.7% 19.3% 14.3% 18.4%

Interest (Income) 0.0% 0.0% 0.0% 0.0% 0.0%

Interest Expense 3.6% 3.0% 2.6% 0.1% 0.2%
Pre-Tax Income 2.2% 9.7% 16.7% 14.2% 18.2%

Income Taxes 3.2% 4.9% 5.6% 3.5% 4.5%

Net Income -1.0% 4.8% 11.1% 10.6% 13.6%

Balance Sheet (in Rs. crores) 0.0% 0.0% 0.0% 0.0% 0.0%
Assets 0.0% 0.0% 0.0% 0.0% 0.0%
Cash and Marketable Securities 20.7% 27.2% 15.9% 1.2% 5.7%
Account Receivable 27.9% 38.9% 46.9% 5.6% 7.2%
Inventories 169.1% 155.3% 222.9% 25.4% 20.7%
Other Current Assets 87.5% 118.7% 126.7% 13.0% 11.9%
Total Current Assets 305.1% 340.0% 412.4% 45.2% 45.5%

Property, Plant and Equipment, Gross 488.7% 460.3% 477.6% 43.5% 39.0%
Accumulated Depreciation 118.5% 116.2% 116.1% 11.0% 9.7%
Property, Plant, and equipment, Net 370.2% 344.2% 361.5% 32.5% 29.2%

Other Non-Current Assets 14.8% 22.3% 0.8% 0.1% 3.0%

Total Non-Current Assets 385.0% 366.4% 362.3% 32.6% 32.3%

Total Assets 690.1% 706.5% 774.7% 77.7% 77.7%

Liabilities and Shareholders' Equity 0.0% 0.0% 0.0% 0.0% 0.0%

Accounts Payable 86.4% 97.8% 98.0% 11.3% 12.0%
Short-Term Debt 1.8% 5.2% 22.3% 2.4% 2.2%
Other Current Liabilities 62.5% 75.7% 47.6% 4.7% 4.7%
 Total Current Liabilities 150.7% 178.7% 168.0% 18.4% 18.8%

Long-Term Debt 36.0% 0.0% 0.0% 0.0% 0.0%

Deferred Income Taxes 2.6% 1.9% 2.0% 0.3% 0.0%
Other Non-Current Liabilities 0.4% 0.4% 2.7% 0.2% 0.2%
Total Liabilities 189.7% 181.0% 172.7% 18.9% 19.0%

Paid-In Capital 13.8% 26.1% 26.6% 2.5% 2.2%

Retained Earnings 486.6% 499.4% 575.4% 56.3% 56.6%
Total Shareholders' Equity 500.4% 525.5% 602.0% 58.8% 58.8%

Total Liabilities and Shareholders' Equity 690.1% 706.5% 774.7% 77.7% 77.7%
Average
100.0%
73.3%
26.7%

8.0%
8.5%
4.0%
14.1%

0.0%
1.9%
12.2%

4.4%
7.8%

0.0%
0.0%
14.1%
25.3%
118.7%
71.6%
229.6%

301.8%
74.3%
227.5%

8.2%
235.7%

465.3%

0.0%
61.1%
6.8%
39.0%
106.9%

7.2%
1.4%
0.8%
116.3%

14.2%
334.9%
349.1%

465.3%