Balancing Act Between Various Stake Holders

Budgeting For Innovation

CFOs have to do a balancing act between various stake holders. The size and complexity of business is very different from what it used to be a decade ago. Management and boards have become more demanding; therefore, it is important to focus on all variables and risk factors
encompassing business. Market volatilityMacro economic factors, Global factors have to be considered while formulating a budget. Productivity, efficiencies, cost control and cost reduction is an integral part of our budget to withstand market volatilities.

Our measures include:

a) Localization: Plans are made for localization of import content to substantially reduce the risk of foreign exchange volatilities.
b) Commodity hedging and foreign exchange hedging
c) Employee suggestion program:  We have an internal program of suggestion by employees where each employee gives inputs on cost savings, process improvements.
d) Productivity improvements: We have set targets on Value Analysis, Value Engineering, Kaizen, for cost reduction and improvements.

Challenges Of The Indian Economy: StrategySetting, Financial Planning, And Risk Management

Difficult times pose challenges as well as opportunities for introspection and raising our standards in terms of financial prudence, risk management, business planning and innovative solutions. Finance being an important function in any organisation, a 360 degree approach
is adopted to consider financial aspects for all the stakeholders to ensure that targets are stretched, progress is monitored/ reviewed, mitigation plans are met and overall wealth is created/ enhanced.

"We have constantly refreshed our product portfolio to ensure product profitability"

• We have developed and defined the overall strategy for managing growth innovation as one of the performance measurement criteria. We have constantly refreshed our product portfolio to ensure product profitability. We continuously monitor the financial health of our suppliers and dealers and advise them with our best practices.

• We have a defined process of Risk identification and mitigation which is monitored at Board level. We have integrated IT in certifying internal controls whereby a comprehensive exercise of Internal controls certification gives confidence to CFO and CEO about ensuring adequacy and efficiency of Internal controls in the organization.

• Internal Control System: We have adopted a transparent 'controls self assessment mechanism' wherein people who are actually executing the tasks related to controls over financial reporting actively participate to identify and take ownership of the key controls performed by them.  Self assessment questionnaires are prepared which is certified by the control owners on a web based tool. The whole exercise is carried out in an objective manner  and has evolved over the years. The results of the self assessment process are disclosed to the auditors and the audit committee.