When we partnered with this mid-sized manufacturing business, operations were running at full capacity, but financial stress was quietly building:

  • Annual revenue of ₹30+ Crores
  • 12–14% operating margins under pressure
  • Workforce of 80+ shop-floor and supervisory staff
  • Multiple SKUs supplied to distributors and OEM clients
  • Heavy dependence on working capital to fund operations

Despite strong demand, growth was becoming increasingly difficult to manage.

The Challenge

Cash flow became the largest hurdle as manufacturing quantities rose. Liquidity strain persisted as raw material suppliers wanted quicker payments, and customer credit terms extended to 60–90 days. A significant amount of money was locked up in receivables and goods, necessitating short-term borrowing.

Management had little idea which stock-keeping units (SKUs) were profitable and which were reducing margins because the company lacked product-wise and batch-wise costs. Rising raw material prices, wastage, and overtime expenditures were not tracked accurately, resulting in silent margin leakage.

Financial reporting was mostly compliance-focused and delayed. The lack of a rolling cash-flow forecast, poor GST reconciliations that led to input credit mismatches, and the frequent exhaustion of working capital restrictions resulted in strained banker relations and denied enhancement requests.

The Solution

At Sharda Associates, virtual CFO services, we helped bring financial discipline and visibility.

  • Implemented product-wise and batch-wise costing systems
  • Introduced rolling cash-flow forecasting and working capital tracking
  • Automated invoicing, receivables follow-ups, and GST reconciliations
  • Built MIS dashboards for margins, inventory turnover, and debtor days

In parallel, we worked closely with management on pricing corrections, inventory rationalization, vendor payment planning, and bank-ready financial reporting.

The Impact

  • Cash flow improved by 28% through tighter receivables control
  • Gross margins increased by 15% with accurate costing
  • Inventory holding reduced by 25%, freeing working capital
  • Interest costs reduced by 18% due to better cash planning

Conclusion

We assisted the virtual CFO services manufacturing company in transitioning from cash-flow stress to regulated, profitable expansion by implementing structured financial processes and real-time insight.

Sharda Associates’ virtual CFO services might help you reclaim control and grow sustainably if your manufacturing company is profitable on paper but is having trouble with liquidity, margins, or bank pressure.