As outsourcing non-core activities including IT has become common, companies have started to look out for partners, who will perform core functions including finance. MyCFO claims to be the only company in India that provides CFO services to help high-growth firms meet their business goals.
“We have heard of 8-10 firms in the Indian market offering similar services but they are more individual consultants working together than institutions,” said S Venkataraman, director of MyCFO. Continue reading →
Pharma group is a global leader in excipient solutions. The Group develops, produces, and markets excipeints for oral solid dose and dry powder inhalation formulations. The Group’s customers are leading pharmaceutical companies. The Group had taken over a closely held Indian company 2 years back and needed MyCFO to manage the Post merger acquisition as their India CFO.
MyCFO’s role was to ensure correct, accurate, complete and timely review of day to day accounting based on accounting conventions and principles in line with Indian GAAP and IFRS, addressing issues that came up as part of the due diligence process, Develop and report MIS to the India CEO, Complete timely monthly reporting to Group CFO, ensure local compliances, Implement internal controls in line with Group policy, Assist in the implementation of the Group ERP (Navision), Participation in fortnightly review India CEO and the Group CFOs office, authorizing and tracking of expenses, liaise with the auditors for accounts finalization, setting the India budgets, managing and forecasting future cash flows, getting involved in monthly review meetings with the India CEO and the Group CFO and measuring business performance by setting up profit center accounting and reporting. The role comes with accountability to deliver results that an in house Controller/CFO would take on had there been one.
How the Client Benefitted
MyCFO’s involvement resulted in clean up of accounting and compliance related legacy issues, reduced monthly reporting time from 8 weeks to 1 week, implementation of an ERP system within 6 months from the start date, discontinuation of non – profitable products by developing robust costing systems and in reduction of debtors collection cycle from 120 days to less than 45 days.
A CFO is amongst a rare breed of people who is not just responsible for his own function/ department but is also required to contribute to the other functions within an organization. The CFO now has to straddle and importantly contribute to the company’s business functions. The CFO is often labelled as someone who is conservative, takes a very ‘numerical’ view of the business and does not understand the business intricacies.
Companies think hard when it comes to investments or spends relating to diversification to new geographies, new product introduction, Capex, R&D, marketing spends, M&A activities etc. While there is always a sense of optimism associated with any new initiative, these need to be viewed from a stand point of whether the spends will generate reasonable returns over a finite time frame. This is where the role of the CFO becomes crucial. The CFO here not just need to look at situations like these from a numerical stand point but also need to understand the underlying business assumptions that make up the spreadsheets.
This article is useful to PE Funds and CXO’s of PE invested companies who are eyeing an exit in the next 12-18 months and looking to strengthen/ streamline decision support systems, squeeze cost reductions, enhance governance mechanisms, implement risk management systems which will help them build a case for better valuations closer to the date of an exit either through listing or through sale to another PE fund.
How does a company get itself exit ready? Unfavorable market conditions and not so good business environment are today stated as primary reasons for PE funds and companies not being able to get an exit. A recent article in the Economic Times states that there are close to 630 PE invested companies, which are waiting for an exit. There is pressure and Continue reading →
This article is useful to CXO’s of High Growth companies who want to lead their companies to the next level of growth and recognize that they need modern, experienced and professional finance skill sets to support their vision. This is particularly true for CXO’s of companies, which are PE/VC invested and where existing Finance and IT systems have not kept up pace with the rapid scaling of the business.
Can Robin’s energy and passion alone get him to scale up his business in a sustainable manner? Here’s how Robin managed to do this by investing the right time, energy and bringing people who could relate to his vision. Continue reading →