Financial & Operational Resiliency – Enterprise Programme (FOR-EP)
While the Government of India is taking all necessary steps to ensure that we are prepared well to face the challenge and threat posed by the growing pandemic, the impact of COVID-19 has not only hit China but is hitting major economies like the European Union and the US, the fallout of which will surely have an impact on the Indian economy.
The Reserve Bank of India acted proactively by announcing a series of measures to provide much awaited relief to Indian businesses. In case you missed reading our update regarding the same, you can read it here – COVID-19 – Business Compliance Relief Measures.
We believe that despite policy stimulus, the real economy will continue to face challenges; the SME sector is particularly vulnerable to cashflow shocks as normal economic activity ceases, despite government interventions to limit economic upset and mass layoffs.
As part of our efforts to stabilise and support companies, we have developed a programme – Financial & Operational Resiliency – Enterprise Programme (“FOR-EP”) to assist you in navigating the near-term challenges.
What Is FOR- EP?
The Financial & Operational Resiliency (FOR-EP) is a programme initiated to help all small to mid-sized companies who are grappling with:
- Declining profitability
- Poor/negative cash position and unable to satisfy cash obligations
- High-gearing ratio
This programme is a highly customised diagnostic tool to highlight current/potential risks of your business, from both profitability and cash flow perspectives. The FOR-EP approach is designed to understand your business and capture your revenue model and cost drivers in a snapshot. With a set of financial KPIs developed, we will provide you with a high-level analysis of your company’s financial performance, which includes:
Financial model: A simplified financial model is created to provide Company a forward view of its financial position based on the current operating conditions.
Understand Impact Tolerance: Identify and highlight the existing/potential weaknesses/gaps for business based on KPI results.
FOR Report: Get robust and coherent reporting with the findings and any immediate remedies that can be adopted.
How Can FOR – EP Enhance Your Business’s Financial & Operational Resiliency?
Depending on the findings in your “FOR-EP” report, our professional team of advisers will assist you in:
- Revenue Modelling: Identify core competencies and the most lucrative sections of your business and make recommendations to align capacity to revenue.
- Cost Analysis: Identify significant cost drivers and implementation of cost controls.
- Working Capital: Improvement in inventory management and credit management and controls.
- Cashflow management: Capital expenditure management, debt management (restructuring), need for fund raising / financing (loan application) requirements.
- What-if analysis: Depending on the “critical” success factors of your business, we provide what-if scenarios with a financial impact report.
- Mergers and Acquisitions: Discuss the suitability of potential deals, fund raising, etc
- General: Setting up controls and designing standard operating procedures, etc
How Can We Get Started With Your Financial & Operational Resiliency?
- Provide us with a brief description of your business
- Sending us your audited financial statements and management accounts of the past 2 years and management account and general ledger of the current year.