1. Operating Financial parameters changed over last 5 year period
Reasons & Impact
Gross Margin of
43.48% 52.79% 3.96% p.a. Improved productivity,
revamped Hurixnet to
Rs.16,954 Rs.11,037 -8.23 % p.a.
(Minus – sign is good
processes & innovation in
DSO (No. of
133 Days 57 Days -15.62% p.a.
(Minus – sign is good
Worked with BU & Sales
on contracts, milestones,
RR systems & follow-up
3.00 Cr. 18 Cr. 41.47% p.a. Negotiated hard with
Bankers to optimise WC
& Forex hedging.
IT Platforms –
& Operating IT
Significant impact on
financial controls with
timely closing &
alignment to 1 cycle.
Lead to better business
levers grip, better
business analytics &
decision making support.
Strategic CFO Initiatives PE/VC Funding, Corporate Restructuring – Next slides
2. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Q-I – New additional modules in Operational & Financial ERP platform
integrated for better serving the need of Product & Services Companies with
complete ramped up team & hurixnet in place.
Q-II – Obtained funding term sheet of US$3 Million for product business from
PE. Appointed Investment Banker and commenced road show for bringing
strategic investor or private equity to fund the product division next scale.
Q-III – Enhanced banking limit from Rs.10 cr. to Rs.18 cr. Leading to support
on working capital and product development front.
Q-IV – SEEPZ-SEZ Facility was up and running. Final round of due diligence
and valuation in place to induct strategic partner (Sony) in the Company to
meet product development and marketing plan.
Company is all set to reap the benefit of strong financial driven Company with
revamped in place from Services driven to Product driven Company.
2010 -11 – Migration from Services to Product business with PE funding
3. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Q-I – Product accounting was set-up to monitor the product
development cost. Streamlined BU’s in services side for better focus on
•Q-II - SEEPZ-SEZ application came up for hearing & secured LOP in
favour of Hurix. Significant capital cost saving & then recurring
overheads benefit of SEEPZ-SEZ property. ( Potential rental saving of
Rs.1 cr. per annum. Migration from STPI to SEZ commenced. Shares
•Q-III – Delivered first set of project level profitability reports to PA/Sales
& new stale norms unbilled inventory for refining pricing & estimation
process leading to positive financial controls & governance.
•Q-IV – Product business hived-off into new Subsidiay Company (for
Joint Venture on K-12 – India’s Leading Listed Technology Company
2009 – 10 Product & Services business – Transformation
4. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
•Q- I - Banking relationship was strengthen with confidence building
measure & credit limit was reset. Hedging & forex recovery in place.
•Q-II - More emphasis on DSO & Cash management with the support
from revenue recognistion norms & revamped Hurixnet (Operating ERP
in-house) system firmly in place.
•Q-III - US recession was taking toll on business. Finance took lead in
cost & expenses monitoring with firm objective of not buring cash with
management. One of the Chennai office shut-down. Launched CRISP (
Cost reduction & Improvement in staff productivity) programme to
address cost & productivity issue.
•Q-IV - More cost cutting/rationalisation – Renegotiation with
Vendors/Overheads reduced/Manpower trimmed/Outsourcing v direct
hiring was given importance to address cost & revenue mismatch.
2008 – 09 Finance ruled with “ Cash is King “ motto
5. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Q-I – Set relationship with NBFC’s. Entry of Helion (PE Fund) as
strategic shareholder on the board of the Company. Due to controls
issue payroll function was brought under Finance from HR.
•Q-II - On set of difficult phase of business with reduced customers
spending on IT outsourcing & huge $/Rs appreciation impacting results.
Operating ERP system was brought under finance umbrella to revamp
& address project accounting systems & control.
•Q-III - Steps taken in reorganising Mumbai under one centre. Admin
function was brought under finance umbrella. Budget, Outlook & Time
Sheet system was reinforced by finance across Organisation to set
proper governance across Organisation.
•Q-IV - Banking relationship & limits came under tremendous pressure
& credit limit was suspended. BU Organisation restructuring was
suggested to reduce overheads & result focus organisation.
FY-2007-08 – Difficult financial year – Put to address cost v revenue
6. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Q-II – Carried out systems/process/team study of finance &
revamped financial accounting system in Tally by adding IT tools.
• Q-III – Set the stage for putting month closing processes to address
• Timely reporting resulting in better flow of info & decision
• To ensure year end audit closing within time with +/- 2%
variance with month closing figures.
• SEEPZ-SEZ (Mumbai) application was filed to secure commercial
premises at concessional subsidised rate. (waitlisted)
• Q- IV - Introduced management reporting in newly defined format.
Road shows to bring second round of PE funding in Company.
• Introduced first time new set of accounting guideline on revenue
recognition to address Controls, Cash & Clarity (3 C’s).
FY 2006-07 – Redefining Hurix Finance structure – with C’s