How This FMCG SME Transformed Financial Risks into Opportunities for Growth!
Client Profile
A mid-sized manufacturing company in the FMCG sector with an annual turnover of ₹25 crore. The company specialized in fast-moving consumer goods but struggled with cash flow inconsistencies, compliance challenges, and financial risks that hindered profitability and growth.
Challenges
Weak Cash Flow Management
Absence of accurate forecasting led to delayed vendor payments and disrupted supply chain operations.
Compliance Risks
Irregular GST filings and TDS compliance resulted in penalties amounting to ₹2.5 lakh annually.
Excessive Credit Dependence
45% of the company’s revenue came from a single client, posing significant concentration risk
Our Approach
We implemented a comprehensive strategy to address the company’s financial challenges and create a path for sustainable growth.
Financial Risk Assessment
Conducted an in-depth analysis of cash flow patterns, credit policies, and compliance practices to identify vulnerabilities.
Tailored Solutions
Automated Cash Flow Monitoring: Deployed AI-based tools to forecast cash flows with 95% accuracy, enabling better planning.
Revenue Diversification: Advised the client on onboarding 3 new clients to reduce dependency on their primary client.
Compliance Calendar: Introduced a digital compliance tracker to ensure timely GST filings and TDS submissions, avoiding penalties.
Employee Awareness
Conducted a workshop for the finance team to improve understanding of financial risks, controls, and proactive management strategies.
Results Achieved (6-Month Snapshot)
Cash Flow Improvement
Payment cycles improved by 40%, reducing delays from 15 days to just 5 days.
Revenue Diversification
Revenue dependence on a single client decreased from 45% to 30%, significantly reducing concentration risk.
Penalty Savings
Zero compliance penalties in the last two quarters, saving ₹2.5 lakh annually.
Profit Margin Growth
Profit margins grew by 8% through improved financial discipline and streamlined cash flow management.