CMBC would be able to assist in assessing how well the business is performing, highlighting/reconfirming its strengths, identifying the areas of improvement and suggesting the implementation plan for the recommended improvements.
Listed below are CMBC’s service offerings to the growing organisations:
Financial Review
Information on Assets, Liabilities and operational performance of the business are generally available in the books of accounts and the financial statements and through monthly or quarterly MIS reports, but seldom reviewed in detail by senior Management due to their hectic schedule. As a result, many potentially critical developments building up within the business go unnoticed by the Leadership. By the time they get to know about the same it may be too late. What is required and what CMBC can offer In order to avoid such shocking surprises, in addition to the regular MIS reports periodically you should be updated with the critical information relating to Operational performance (Revenue & Cost), Performance of the Investments, Productivity of Assets- both fixed and human, cashflow, liquidity, Owner’s equity movements, maintenance of discipline in financial transactions (DOA) etc.
Liability Assessment
Liabilities including Loans, Legal Debts and other obligations need to be put under the radar all the time and kept closely monitored.
What is required and what CMBC can offer It is important that the Senior Management is kept aware of the existence as well as movement of major Liabilities- be it Current, or Long Term and ensure they are within manageable limits and that there is no abnormal development or symptom that could impact the Firm’s ability to service any specific liability. It is equally important to keep a watch over the movement of critical Liabilities such as external borrowals from time to time. It is also critical to keep a watch on Contingent Liabilities, Litigations and/or claims against the Company
Receivables Assessment
On the face value, it is impossible to know whether the ‘Accounts Receivables’ of a business are indicative of healthy or unhealthy business practices. Periodic assessment of Receivables will help identifying bad and doubtful receivables and restricting supplying goods and services on credit to unreliable customers. Receivables would also include amounts due from non-customers such as Government Departments, refund of deposits, Staff loans etc. Thus it clear that periodic assessment of the Receivables will help you maintain quality of this major Current Asset component. What is required and what CMBC can offer Periodic review of the Receivables
Business Performance Monitoring
A regular update on the current performance of the business is essential. This will help to reconfirm that the product, market, customer, sales target, cost of sales and profitability expectations (as targeted) are being achieved by the business.
What is required and what CMBC can offer
Periodic Business Performance review
Business Assets Productivity Assessment
Business Assets include Premises, Plant and Machinery, Facilities, IT Systems and of course Manpower. A periodic assessment will help identify the productivity and effectiveness of the Assets deployed in the business and to ensure the business is on right track in terms of ROI. In case special attention or corrections are needed in any specific area it can be actioned immediately.
What is required and what CMBC can offer
Review of the Business Assets’ performance
Governance
Corporate governance is a system of rules, policies, and practices that dictate how a company’s executive team manages and oversees its operations. Corporate governance includes principles of transparency, accountability, and security. Poor corporate governance, at best, leads to a company failing to achieve its stated goals, and, at worst, can lead to the collapse of the company and significant financial losses for shareholders. What is required and what CMBC can offer Developing a strong Corporate Governance Framework consisting of DOA, SOPs and Policies and Procedure if they do not exist or reviewing the existing Governance Framework for their effectiveness and fine-tuning them if needed
Procurement Process
Procurement is one of the most critical functions in any organization. As all financial commitments and expenses start with Procurement, it has a direct bearing on the organization’s liquidity as well as profitability. Wrong procurement decisions and practices adversely affect the profitability and liquidity. The Procurement process should be robust enough to ensure that best ’value for money’ is obtained when committing for expenditure, whether operational or capital in nature. What is required and what CMBC can offer Review and monitoring of the procurement activities to ensure adherence to the approved process & DOA. Besides, budgets, cashflow impact, inventory holding period assessment, timeliness of procurement etc. need to be assessed. Quality of suppliers and their products and services should also be subjected to scrutiny on a selective basis. Ageing analysis of inventories held should be carried out as part of the exercise.
Contracts
In a business there would be dozens of contracts already executed and more getting added month on month. Contractual terms can sometimes become critical even to the extent of shaking the very existence of the organization. It is therefore important to maintain vigil to ensure that contracts do not become traps unexpectedly. Besides, to ensure the organisation’s ability to honor commitments in the changing business environment is necessary. In case they are likely to be difficult to honor, it is important to identify them earlier on and take appropriate actions to avoid or minimize the adverse impact on the business and the organization.
What is required and what CMBC can offer Review of all-major contracts and identification of risk factors if any. The review must also cover the underlying approvals, adherence to the governance framework, business cases and justifications.
Cost Management & Control
Cost Management and Control refers to the practice of identifying and reducing business expenses in order to increase profits. Cost control is an important factor in maintaining and growing profitability. What is required and what CMBC can offer Review the critical cost components to see if any of them exceed the target Cost Revenue Ratios (CRR) and identify cost which are not justifiable. Also assess areas where Cost reduction can be achieved through process improvement, automation and waste reduction.
Revenue Optimisation
Revenue optimization refers to maximisation of revenue using the available resources. It also refers to the process of managing the business activities in such a way that high yielding activities take priority over the low yielding ones for resource allocation and management time. What is required and what CMBC can offer Carrying out Revenue and cost analysis for identifying products that optimize overall revenue. Analysis will be based on Revenue KPIs, Cost Revenue Ratio (CRR), Channel costing etc.
Ancillary Revenue Opportunity Exploration
Ancillary revenue is the income that a company generates from selling goods and services that are not from its primary revenue streams or core business activities. For example, revenue from sale of waste generated from bakery production as animal feed is an ancillary revenue.
What is required and what CMBC can offer
Exploring the avenues for generating Ancillary Revenue opportunities and pursuing those where cost of generation is low.