Lakshminarayanan Hariharan, PMP Vice President at MyCFO India
It is an assumption that implementation and use of technology – hardware, software and tools – will result in fueling growth to business. Growth must not be merely defined as top-line growth. It should be inclusive of efficient supply-chain management for inventory control, cash management, fast-tracking period closing and performance management.
The leverage of technology is very diverse from industry to industry. Aerospace, medical, digital, media, research & development etc. witness higher adoption of technology to provide an edge for companies. On the other hand, companies in retail, manufacturing and BFSI segments leverage technology for efficiencies in business process and delivering quality customer services.
There is a conscious effort across industries to eliminate or limit the amount of in-person services that the organization used to provide and instead the customer is being provided the platform to use / source the products or services, get data and analytic’s , and provide intelligence for decisions, all through the leverage of technology. The following graph gives an industry-wise representation of IT spending as a percentage to revenue, providing an insight on the extent of IT leverage across the board. Continue reading →
“The company benefits immensely if the finance and human resource functions are in accord”
The HR Head and the CFO are the respective leaders of the ‘soft’ and ‘hard’ domains in a company. The former deals with people,culture, and behaviour – the soft side;the latter with data, facts, and money – the hard side. While these may look like completely divergent functions, for a company’s success, they need to be in harmony.Most crucial decisions are usually taken collectively, often with unanimous feedback from both the soft and the hard sides of businesses. Continue reading →
Mr. Jagdish Agarwal is the CFO at Owens Corning India.
Today’s business world operates in VUCA (Volatility, Uncertainty, Complexity and ambiguity) scenario and that demands a CFOs role beyond the traditional boundaries. Now the expectation from CFOs is not limited to financial matters alone but they have to partner and support CEO to drive the business and maximize the shareholders value. CFOs are custodian of the shareholders wealth and considered next to CEO with lots of expectations. I think there are five critical areas that need CFOs focus and attention to drive planning, performance and maximize the shareholders value. Continue reading →
Our client Fulex is in the business of developing fuel efficiency solutions for the Genset manufacturers. This involves carrying out R&D on the technological and commercial feasibility of the products and, once the feasibility is demonstrated, developing and manufacturing these products. The Company is in a high growth phase with a need for maintaining high level of working capital to sustain the growth, in addition to capital requirement to fund expansion.
The objective of the budget exercise was
(a) to develop 5 / 10 year plans, Annual Operating Plan or Annual Budgets with monthly / quarterly break-ups at a departmental and segment level
(b) Determine sales targets to the sales team, broken by products, geographies, customer segments etc.
(c) Determine P&L position and cash/working capital requirements at various levels of sales
(d) Determine the amount of capital to be infused to support ongoing operations and expansion plans
(e) Planning for manpower needs
(f) Expense control, by allotting expense budgets to departments
(g) Determining profitability by product, geography, customer segments etc
(h) Exploring feasibility of expansion plans with metrics such ROI and IRR
(i) Scenario analysis, Sensitivity analysis and “what-if” analysis through modification of the assumptions.
Wealth Tree Partners, which runs the online CFO servicing business through MyCFO.in, is looking to raise capital from private equity funds next year, said a senior company official.
“We want to raise growth capital from a fund that has had experience of scaling services business and can help us expand. From next year, we want to start implementing our plans of offering specific products and industry vertical based services, for which we would require Continue reading →