Case Study 1
Improving Efficiency
JAL* is a manufacturer of gears and gear shafts for automotive, agricultural, earth moving equipment and industrial applications. JAL* was incorporated in the year 1980 and started manufacturing gears in the year 1996. From 1881 to 1996, the company was in the field of manufacturing automotive bulbs. Today JAL* manufactures 15 million gears with an annual turnover of around ₹ 100 crores.
Client Requirement
-
ERP Optimisation
-
MIS and Budgeting
-
Cost Optimisation
-
Working Capital Management
-
SOPs
Virtual CFO Role
-
Re-organization of entire Finance and Accounts team
-
Set-up MIS and review frameworks, which involved setting KPI’s, preparing MIS templates, setting review mechanism, etc.
-
Automation of finance process through optimum utilization of in-house ERP
-
GAP Analysis
Impact Delivered
-
Time savings of around 35% for F&A team month
-
Monthly close by 7th of the following month
-
Savings in working capital to the tune of around 2 Crs. In a period of 3 months by multiple measures including reduction in DSO
-
Plan for better profitable growth by introducing budgeting system
Case Study 2
Expansion Strategy
Image Building Manufacturing Private Limited (IBMPL)* is is into the supply of Construction and Interior Decoration materials manufacturing and sales which includes the responsibility to Market the Arts and Sculptures of rural areas of country to be made available
Client Requirement
-
Assistance in Day to day operations causing business challenges and risks.
-
Acquisition strategy assistance and profitability improvement,
-
Prioritization of growth opportunities from an operations perspective
-
Capital budgeting in order to be commensurate with the growth projected in the business plans to investors
-
Assistance in finalizing locations by way of branch modelling exercise
Virtual CFO Role
-
Carry out Due-diligence of proposed targets in order to identify top 2 lucrative acquisitions
-
Assist in investigating and analyzing investment opportunities
-
Develop a Capital budgeting plan
-
Assist in finalizing the new location for their site by taking into consideration various parameters as informed by the client
-
Create a financial model and do a ‘what-if’ analysis on the available location options
-
Regularly track upcoming working capital needs
Impact Delivered
-
Outsourced CFO assisted in analyzing acquisition opportunities, thereby saving 115 hours
-
Negotiating value of acquisitions and thereby saving 35% of expected outflows
-
Developed financial targets for the business and created financial models for the combined businesses to analyze the businesses value post acquisition
-
Developed Channel Strategy to assist in prioritizing growth opportunities
-
Expanded their existing credit line by liasoning with the Banks
Case Study 3
CFO Role
Arab Cuisine* founded in the year 2000, is a fast growing Arabic restaurant chain with over 14 outlets largely in Mumbai and Pune. The Chain is PE invested.
Client Requirement
-
Lead the F&A team under the CFO role
-
Take on multiple responsibilities under a 180-day operating plan
-
Review the internal processes and implement key internal controls
-
Manage Inventory management tool and ERP system
-
Improve cash flow management and weed out inefficiencies in the working capital cycle
Virtual CFO Role
-
Championed the process of finalizing the budgets and financial forecasts
-
Incorporated key metrics for CEO and Professional Investor in monthly MIS
-
1 – hour weekly review of all 180 day initiatives, a single window to the Promoter to check progress, take decisions and clear road blocks(if any)
-
Monitored internal audit, framed key accounting policies and SOPs for finance processes
Impact Delivered
-
30% time reduction in budgeting and tracking performance
-
40% improvement in the average debtor collection period
-
Better visibility on measurement and reporting of key performance metrics resulted in better business management