02 · CAPACITY, INVENTORY AND WORKING CAPITAL
Industrial & Manufacturing
Finance that understands production, margins and working capital.
Raw materials, production, inventory, labour, overheads, customers and credit. Profit is made on the shop floor and lost in stock and receivables. Finance needs to connect every piece.
Sales→Gross margin→Capacity→Inventory→Receivables→Working capital→Cash
Raw material volatility and batch yield
Chemicals
Batch or continuous processes where raw-material prices, yields and imports move margins every month.
Raw material price→Batch yield→Conversion cost→Product margin→Inventory→Cash
Where finance gets stuck
- Raw-material prices and forex moving faster than selling prices
- Batch yields and losses not reflected in costing
- High inventory of RM, WIP and finished goods
- Large capex with limited visibility of return
What your MIS must show
- Contribution per kg / tonne by product
- Yield and process loss by batch
- RM, WIP and FG days
- Forex exposure on imports and exports
- Capacity utilisation by plant
Compliance to watch
- GST on inputs, exports and refunds
- Import duties and foreign remittances
- Export incentive and authorisation tracking
- Inventory valuation and bank stock audits
How Vasudhaiva helps
- Product and batch costing
- Inventory controls and stock-audit readiness
- Working-capital limits and project finance
- Subsidy and capital incentive evaluation
When raw material moves, how fast does our margin move with it?
Brands, channels and shelf life
Cosmetics & Personal Care
Own-plant or third-party manufactured brands sold through distributors, retail, marketplaces and D2C.
Channel sales→Trade schemes→Returns / expiry→Marketing→Brand contribution→Cash
Where finance gets stuck
- Margins differ wildly across D2C, marketplace and distributors
- Expiry, damages and returns written off late
- Schemes and marketing spend not tied to sales
- Third-party manufacturing costs not reconciled
What your MIS must show
- Contribution by SKU and channel
- Marketing as % of sales and CAC (D2C)
- Expiry and return provisions
- Distributor receivables and claims
- Inventory days by SKU
Compliance to watch
- GST across channels and states
- E-commerce TCS / TDS reconciliation
- Job-work and loan-licence accounting
- Inventory provisioning for audit
How Vasudhaiva helps
- Channel and SKU profitability MIS
- Scheme and claim reconciliation
- Inventory and expiry controls
- Fractional CFO for brand growth and funding
Which channel is building the brand, and which is just buying sales?
Job work, credit and stock
Textiles
Spinning, weaving, processing and garmenting chains with job work, long credit and seasonal stock.
Sales by customer→Gross margin→Inventory→Receivable days→Working capital→Cash
Where finance gets stuck
- Long credit periods to traders and buyers
- Material at job workers that is hard to track
- Inverted duty structures blocking GST credit
- Stock valued at cost that is no longer saleable
What your MIS must show
- Margin by quality / product and customer
- Receivable days and overdues by customer
- Stock with job workers
- Inventory ageing and slow-moving stock
- Working-capital cycle
Compliance to watch
- GST inverted-duty refunds where eligible
- Job-work challans and ITC-04
- E-way bills
- Export incentives and realisation tracking
How Vasudhaiva helps
- Job-work and inventory accounting
- Customer credit and collections MIS
- GST refund support
- Textile subsidies and project finance
Is our money sitting in stock, at job workers, or with customers?
Distribution, schemes and secondary sales
Consumer Products
Products moving through distributors and retailers where trade schemes and credit drive volume.
Primary sales→Schemes→Distributor credit→Gross margin→Contribution→Cash
Where finance gets stuck
- Scheme liabilities discovered after the quarter
- Distributor credit stretching cash
- No view of secondary sales or channel stock
- Product-line profitability unknown
What your MIS must show
- Net realisation after schemes
- Contribution by product and region
- Distributor receivables and limits
- Channel inventory
- Sales per salesperson / territory
Compliance to watch
- GST on schemes, free goods and credit notes
- TDS on commissions and incentives
- Inventory valuation
- State-wise registrations and e-way bills
How Vasudhaiva helps
- Scheme accounting and claim controls
- Product and territory profitability
- Credit control and collections
- Working-capital finance
After schemes and credit, what do we really earn per unit?
Projects, warranties and service revenue
Equipment
Machines and systems sold on order, often with installation, warranties and after-sales service.
Order book→Milestone billing→Project cost→Warranty→Service revenue→Cash
Where finance gets stuck
- Advances and milestone payments not matched to project cost
- Warranty and service cost underestimated
- Spares and service revenue not reported separately
- Long sales cycles with uneven cash
What your MIS must show
- Order book and pipeline
- Margin by machine / order
- Warranty cost as % of sales
- Spares and service revenue and margin
- Customer advances and receivables
Compliance to watch
- GST on supply, installation and service
- Export documentation and realisation
- Warranty provisioning
- Revenue recognition on multi-element contracts
How Vasudhaiva helps
- Order-wise costing and billing
- After-sales profitability MIS
- Cash-flow forecasting
- Business and project loans
Are we earning on the machine, the service, or neither?
Tight tolerances, long cycles, export customers
Aerospace & Precision Engineering
High-precision, certified components for demanding global customers, with long approval cycles and heavy machinery.
Programme orders→Machine hours→Rejection rate→Part margin→Forex→Capex→Cash
Where finance gets stuck
- Machine-hour costing missing, so pricing is unclear
- Rejections and rework not costed
- Heavy capex and long customer approval cycles
- Export receivables and forex exposure
What your MIS must show
- Margin per part and per machine hour
- Machine utilisation (OEE)
- Rejection and rework cost
- Capex payback and debt service
- Export receivables and forex gain / loss
Compliance to watch
- Export of goods, LUT and refunds
- Import of machinery and duty benefits
- Export realisation under FEMA
- Capital subsidy and incentive documentation
How Vasudhaiva helps
- Machine-hour and part costing
- Capex appraisal and project finance
- Subsidy and incentive support
- Forex and export finance discipline
What does one hour on each machine really cost us, and earn us?