Posted On 2024-02-06
Author Himanshu Sharda
Air Moving Products Co (AMPC) is
India's leading manufacturer of air-moving products, with operations since
1988. AMPC air moving products are used in various industries, including but
not limited to IT & telecom, HVAC, automotive and rail technology,
refrigeration, cold chain technology, defense, etc. AMPC has a state-of-the-art
manufacturing facility in Navi Mumbai and Bhiwandi with in-house processes like
injection molding, motor winding, blade balancing, and welding.
CFO Bridge aimed to revolutionize
financial operations through a multifaceted agenda. From optimizing working
capital by implementing bi-weekly receivables reconciliation to developing a
sophisticated MIS for insightful reporting, aligning margins with BOM,
providing conceptual clarity training, and introducing structured weekly
calendars for focused management discussions. The agenda focused on enhancing
transparency, accuracy, and proactive decision-making in financial management.
Challenges faced by the organization
before partnering with CFO Bridge
CFO Bridge's Robust Approach and
CFO Bridge identified critical challenges in working capital management,
addressing issues such as the lack of a structured accounts receivable process.
CFO Bridge implemented a robust system to reconcile receivables against
invoices bi-weekly, fostering transparency and enabling the management to
scrutinize receivables precisely.
Emphasized in-depth monitoring of collections for major customers,
ensuring a more comprehensive understanding and management of cash flows.
Recognizing the absence of a comprehensive Management Information System
(MIS), CFO Bridge initiated the development of a sophisticated MIS.
This new system streamlined the closing of books and provided detailed
monthly comparisons of vital financial aspects, facilitating a thorough
analysis of expenses, margins, and exceptions.
We implemented a monthly activity to align margins based on the Bill of
Materials (BOM) with those derived from the Profit and Loss (P&L)
This meticulous process unveiled discrepancies in BOM, ensuring accurate
margin calculations and enabling the correction of any misalignments.
Recognizing challenges within the accounting team related to conceptual
clarity on financial terms and their impact on book closure, CFO Bridge
initiated targeted training sessions.
These sessions aimed to enhance understanding of P&L, Balance Sheet,
Cash Flow, etc.,
Ensuring that entries in the books were made with a clear conceptual
Introduced a structured weekly calendar to maintain a focused approach
to management discussions and decision-making.
Topics for each week were carefully curated, including areas such as
debtors aging, expense analysis, inventory valuation, and addressing specific
operational issues, ensuring a proactive and timely response to exceptions.
CFO Bridge’s Business Deliverables to
Management Information System (MIS):
Implementing and maintaining a sophisticated MIS facilitates detailed
and insightful reporting for strategic decision-making.
B. Margin Analysis:
Rigorous comparison of Bill of Materials (BOM) against Selling Price,
aligning margins with the Profit and Loss (P&L) statement to ensure
accuracy and financial integrity.
C. Debtors Management Reports:
Generated comprehensive reports about debtors' management, offering
insights into receivables and enhancing overall financial control.
D. Stock Analysis Across Units:
In-depth analysis and comparison of Finished Goods (FG),
Work-in-Progress (WIP), Semi- Finished Goods (SFG), and Raw Materials (RM)
across various units, providing a clear understanding of stock dynamics.
E. Operational Expertise:
Expert handling of diverse operational facets, including but not limited
to expeditious audit closure, optimization of export benefits, and strategic
planning for machinery import duty savings. These measures contribute to
overall operational efficiency and fiscal prudence.
AMPC Achieved Financial Metrics After
Implementing CFO Bridge’s Solutions
CFO Bridge's initiatives yielded significant metrics in financial
These metrics reflect improved financial accuracy, transparency, and
proactive decision-making within the organization.
CFO Bridge successfully addressed critical issues in working capital
management, enhancing reporting accuracy. The introduction of a comprehensive
MIS allowed for timely insights into expenses and margins, replacing the
traditional P&L approach. Aligning BOM with selling prices improved margin
accuracy. Furthermore, strategic training sessions for the accounting team
enhanced their understanding of financial concepts. Implementing a structured
weekly calendar streamlined management discussions and fostered proactive
decision-making—these holistic solutions fortified financial processes,
promoting a more informed, efficient, and responsive organizational framework.
Contact CFO Bridge
Unlock financial excellence with CFO Bridge.
From optimizing working capital management to implementing MIS reporting
and aligning margins meticulously, our solutions drive precision and insight
into your financial landscape.
Elevate your team's knowledge with conceptual clarity training, and
foster a proactive management approach with our structured weekly
Experience transformative financial management.
Connect with CFO Bridge today and
embark on a journey to elevate your financial capabilities.