Case Studies & Testimonials 

Commodityco is a leading company in the trading of pulses and has recently ventured into processing. An overseas Joint Venture (JV) partner has invested in Commodityco 3 years back. The business has been doubling over the last 3-4 years and Commodityco is currently at sales aggregating to INR 2,500 Crores. The aggressive growth was not backed by implementation of robust Finance and IT systems, with Tally being used till about 12 months back. The company is Family owned and the second generation promoter felt the need to support the growth by instituting better quality controls, systems and a performance driven culture which had largely been ‘personal’ with the promoter and ‘informal’. 

Challenges for MyCFO 

Some of the key challenges faced by the MyCFO team was (a) getting a good grasp of the business (dynamic business with exposure to large volumes, forex and commodity price exposures, absence of written contracts), unavailability of data relating to the past (largely in key people’s ‘memories’), competency of the existing team and to be able to connect different silos where information was hitherto residing. 

MyCFO Approach 

MyCFO’s mandate here was to play the role of an ongoing CFO for Commodityco. Commodityco and MyCFO felt the need to implement an ERP system which would help address issues on data integrity and also integration of key functions across the organization including processing locations, branches etc. The implementation of the ERP was completed in 7 months, post which the budget exercise was activated. This took MyCFO and the company another 45 days to get a ‘first draft’ of the proposed budget. The budget tracked the following parameters (a) Sales and Purchases: By Business Unit, By Commodity and By Trader (b) Processing Plant: Capacity utilization, production units and by item/commodity (C) Gross Margins: By Commodity, By Business Unit and By trader (d) Overheads and (e) Cost per ton. The budget committee in this case largely comprised of the promoters and the MyCFO team with involvement of departments on a need basis. The budget draft underwent 2 revisions post which this was rolled out/finalized. 

How the client benefitted 

The company had undertaken a budget exercise for the first time in its lifetime. The budgeting exercise was combined with the KPI exercise for the company. The concept of tracking performance against set targets/budgets was communicated and a tracking mechanism (budgets vsactuals) has been instituted on a monthly basis, providing visibility not just to the promoters but also to the JV partner.  

Organic Food 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.

Our MyCFO role 

MyCFO played the role of an interim CFO for this company which has grown from INR nil to INR 120Cr in revenues in 4 years and is expected to be INR. 500Cr in the next two years. MyCFO assisted the company with the entire gamut of CFO roles, with a particular emphasis on MIS and in defining the reports to be delivered through a Business Intelligence (BI) tool, thinking through the scope document aiding the company in tightly defining the expectations from the ERP thereby also helping them with vendor selection and negotiations and inventory control.

How our client benefited 

Our MyCFO has allowed the Promoter to focus on his business while leaving the entire Strategic and Operational aspects of the Finance department to WealthTree. Being an organics food company which was subject to the vagaries of the environment, our recommendations on development of a costing model with emphasis on considering interest on working capital as part of the product cost was appreciated and this resulted in ascertaining an accurate profit margin. This was significant since the company was operating on wafer thin margins with working capital being stuck in debtors and inventory for over 4 months. Our appointment has helped Promoters to achieve Finance department objectives at a cost which is nearly 50% cheaper that recruiting a full time CFO 

IndFrag is an 80 year old, $ 100mn Indian group and the industry leader in industrial fragrances and flavours. The company is based in Mumbai having manufacturing capacities in Mumbai, Gujarat and Netherlands. 

Our MyCFO role 

MyCFO assisted the company in a comprehensive change management project from a Promoter managed to a Professionally managed company. MyCFO was involved preparation of MIS reports, preparation of financial statements under local GAAP, analysis of product and business profitability, project managing the implementation of an ERP, preparing the data room for potential PE partners. 

How our client benefited 

Under the Promoter management, MyCFO helped in providing better visibility into the operating parameters of the business and by playing the role of an Interim CFO. The company benefited from Business Process Improvement measures and streamlining of Finance procedures. MyCFO assistance helped the company client prepare well for investor due diligence. MyCFO helped in the Promoters to obtain a good valuation from PE investors, by building a credible investment case. MyCFO helped in the smooth transition in the management of the Company. Post transition, MyCFO continues to be involved in the areas of budgeting, performance measurement, Business Intelligence, helping the new professional management and investors to move the company to the next level of growth. 

SpecBio is a 12 year old company with $ 35mn in revenues. The company manufactures and trades in Speciality chemicals and has recently diversified into biotech. Production is carried out in Gujarat.

Our MyCFO role 

MyCFO has been mandated by SpecBio for the development of a 5 year Business Strategy, with clear roadmap to achieve desired turnover, profits, geography mix, product mix and customer mix. MyCFO was involved in development of a Budgeting system and in carrying out monthly performance reviews with individual business managers. MyCFO also assisted the company in accessing innovative debt funding to expand working capital availability.

How our client benefited 

MyCFO's involvement with the Business Strategy provided the Promoters and senior Business Managers with an unified view of where they should be taking their company in the next 5 years. The clearly defined goalposts and time linked milestones are helping the Promoters to track actual performance against set targets. MyCFO's assistance with monthly review meetings has resulted in more discipline in management review processes and more result-oriented and solution-oriented discussions within the company. Our help in expanding working capital facilities through the innovative Trade Channel financing route, helped the company to achieve additional 15% topline growth in a year.