Evolving Role of CFOs and Finance Function in

. Evolving Role of CFOs and Finance Function in contemporary organization By Sunil Bansal 12 -12 -2021 Sunil Bansal FCA, FCS Private & Confidential

The Evolving Role Of CFO Financial Goal Keeper Stewardship & Governance *Book Keeping, Financial Statements *Compliance, Tax, Audit & Regulation *Promoter Management *Treasury, Transactions like AP/AR *Controllership 12 -12 -2021 * Finance processes that align to business needs *Financial Insights and Analysis, Improving quality & use of information *Continuous skilling of finance team. *ROI driven thought *Managing Financial Risks and ensuring assets are preserved Sunil Bansal Strategic business partner and Change Agent *Developing strategies and Guiding Key Business initiatives as Co-Pilot *Transforming the organization *Anticipate and quickly react to ride the wave of economic uncertainty *leadership in assigning priorities to investments & growth opportunities *Donning Mantle of CEO Private & Confidential

FINANCE AS FRONT LINE ROLE • Finance teams and CFOs today are expected to be as much business partners and helping their boards and CXO deliver on business goals and shaping strategies. • Driving Key Business initiatives • Revenue and profitability enhancement • Proactively aligning business to internal/external environmental changes. • Consumer and Customer Needs • Competitive Intensity and Regulatory Complexity. • Value chain characterized by brands, innovation, Disruptions, Technology, selling and delivery. 12 -12 -2021 Sunil Bansal Private & Confidential

FINANCE AS MIDFIELDS ROLE • Financial Modeling, planning and ensuring funding for growth • Building robust annual plans and enabling effective performance management against those plans via data and insights which facilitate optimal and timely decision making • Driving productivity and managing working capital • Reporting monthly, quarterly, annual results, Ensuring compliance with external stakeholder requirements • Building and strengthening the governance framework of an organization via effective internal controls and proportional ownership • Change Management / Cross Functional Support 12 -12 -2021 Sunil Bansal Private & Confidential

FINANCE AS SUPPORT ROLE • Timely & Accurate Accounting / Recording of Financial transactions • Leading specialized activities such as taxation and compliances. • Treasury Management • Banking operations and compliances • Audits • Managing finance team and automation of accounting process 12 -12 -2021 Sunil Bansal Private & Confidential

KPIS & BALANCED SCORECARD 12 -12 -2021 Sunil Bansal Private & Confidential

CHALLENGES IN DETERMINING &MEASURING FINANCE KPIS • What determines effectiveness of the finance function in contemporary organizations? • How can we create KPI dashboard to measure this effectiveness? • Aren’t we the function that only talks numbers and metrics to help business take optimal decisions? • Why can’t we measure our own function’s effectiveness? 12 -12 -2021 Sunil Bansal Private & Confidential

MEASURING FINANCE DELIVERABLES / KPIS • Service Delivery / Business Partnership These KPIs help measure the effectiveness of cross functional support provided by finance to line functions such as sales and operations. Examples of such KPIs are – Sales & Cost Analysis Trends, Logical Claim Settlements, Rational based Budget & Planning, Capital and Revenue spend proposals, performance management and decision making support, funding for growth and expansion, among others. • Productivity and Efficiency Ability to quantify input, output and payback for business initiatives, finance plays a key role in helping drive efficiency and optimization with the organization. 12 -12 -2021 Sunil Bansal Private & Confidential

MEASURING FINANCE DELIVERABLES / KPIS • Process Effectiveness / Capability Process KPIs help capture finance deliverables on strengthening Internal Control and Governance, Statutory Compliances, Standardization and Automation and Transaction Processing. • Quality Closing the books; it needs to be accurate, timely and comprehensive, or of high quality, in how effectively finance analyses date and trends to provide insights for decision making. The same goes for governance and strategic planning 12 -12 -2021 Sunil Bansal Private & Confidential

CREATING A DASHBOARD FOR KEY FINANCE / KPI / BALANCE SCORECARD Key Objective Number Key Objective Deliverable Service / Partnership Process Productivity / Efficiency Quality X X 1 Financial Reporting X 2 Governance and Internal Controls X 3 Transaction Processing X X X 4 Standardization and Automation X X 5 Strategy & Business Planning X X 6 Funding for Growth X 7 Productivity and Working Capital Management 8 Performance Management X 9 Analytics and insights for Decision making X 10 Cross Functional support and responsiveness X KPI Count 6 12 -12 -2021 Sunil Bansal X X X X X 7 X X 6 9 Private & Confidential

Cross Border Transportation Vrindaban B Khandelwal FCA, FCS, ICWA(I), MAIMA, B Com Certified in FOREX & Treasury Management – ICAI Certified in Indirect Taxes – ICAI Certified in International Business Taxation – ICSI

Cargo by Air At Shipping Airport Shipper Freight Forwarder issues House Airway Bill to Shipper Airlines issues Master Airway Bill to Freight Forwarder (Prepare EGM) Custom

Cargo by Air At Destination Airport CUSTOM IGM/ Duty Freight Forwarder (DO) Importer Airport Authority (THC/TSP/ Demurrage)

Sea Shipment Terms used: LCL Consignments FCL – 20 TEU (Normal Capacity 22 MT) 40 FEU (Normal Capacity 27 MT) B/L (Master/ House)/ SOB Port – Sea Port/ Dry Port CFS/ ICD Stuffing/ De-stuffing (at Port/ at Factory) Inland Haulage (By Rail/ Road) Detention/ Ground Rent/ Demurrage/ wharfage Detention free period

Sea Shipment LCL at CFS/ FCL at ICD in Delhi Port Dry Port Sea Port Transition Destination Port Dry Port or CFS if LCL If LCL : Destuffing at CFS If FCL : Port Destuffing and transport to Factory or; Transport Container to Factory for Factory destuffing & return empty Container

Key Points • Shipping information by Shipper instead of Freight Forwarder/ Bank • Freight on AWB/ B/L do not show correct figures always. • IHC/ Detention Free period – be clear with counter party in all shipments instead of relying on Agents/ Shipping Line. • Insurance – Prefer single marine policy from origin to last mile • Fright Negotiations – better if done by the party having maximum volume. • INCO terms interpretation

THANK YOU 12 -12 -2021 Sunil Bansal Private & Confidential