The CEO and CFO jugalbandi is all about striking the right ‘notes’ together, similar to how two artistes who are proficient with their respective instruments but when played together create ‘magic’. Just like good artistes who may understand and in some cases play the other artiste’s instrument well, they recognize the impact of putting together a great performance by giving each other the space and freedom to express themselves so that each of them look good individually and also come out delivering an incredible performance together! Continue reading
E-commerce defies conventional laws
Basic principles of finance have not changed that much in the last century: Businesses exist to make profits and generating positive cash flows is important.
Given the recent developments in the e-commerce space, several ‘old school’ finance professionals are unsure whether the ‘universal’ and ‘time-tested’ principles will ever hold good in the future. Valuations of most e-commerce deals in the recent past have been at astronomical levels, most often expressed as several multiples of sales. It’s common knowledge that virtually every e-commerce company in India is losing money today. So, why are investors paying a sales linked multiple (and a premium at that!) for buying into a loss making company.
Hospital Care is amongst the top 10 hospital chains currently operating in India and operates 10 hospitals in Maharashtra with a bed capacity of approx 750. The chain is Private Equity backed and is in the middle of a significant expansion plan. Management expectations are for Finance and Accounts (F&A) department to provide visibility on Return on Investments from the new facilities, capacity utilization, hospital profitability and Return on Capital Employed (ROCE). The Hospital also runs ‘health care delivery’ centers and specialty labs within each of the hospitals that they operate. Continue reading
Organicfood is a Private Equity (PE) invested fast growing Indian company in the supply chain space. Organicfood’s business model is to procure, store, process and on – sell the produce from farmers to the end consumers. The company takes on the responsibility of guaranteeing marketability of the farmer’s produce and also ensuring that the produce meets the highest standards. Continue reading