Presentation by Stanley – 1st Mar, 2021

About Frontier Knitters Pvt. Ltd.

FRONTIER KNITTERS, a GOVT. OF INDIA RECOGNISED EXPORT HOUSE targeting Rs.200 crores T.O for the current year.

-Into Manufacture & Export of knitted Ready made garments

- Consists of Sports Wear, Men's Wear, Outerwear, Nightwear Girls Wear and Infant Wear.

- Serving customer spread over USA, GERMANY, SWITZERLAND, NETHERLAND, UNITED KINGDOM, IRELAND AND OTHER EU COUNTRIES.

Company

Product Range

Customers

Exporting countries

Scope

Building Financial discipline into the system

1. Accounting -partly

2. Finance

3. Costing

4. Budgeting

5. Treasury

Activities of Finance department

1. Arrange Finance as required for operation

2. Working capital management

3. Manage receivables/payables

4. Deal with Bank - bills, stock, credit limits, submit reports, etc

5. Arrange loans and manage investments

6. Treasury management

Finance discipline

Financial discipline has to be

developed from

Marketing ->

-> order processing ->

-> purchase ->

-> factories ->

-> shipping ->

-> finance dept.

Business Process

ORDE R PROCESSING

& PURCHASE

FACTORIES & SHIPPING

FINANCE DEPT.

MARKETING

Key stress areas to be identified

1. Gross profitability margins

2. Overheads

-- Factory & Head Office

3. Working capital adequacy

4. Stock management

5. Funds management

MARGINS

WORKING CAPITAL

OVERHEADS

Areas Finance discipline is required

•Receivables

•Payables

•Capital investments

•Budget & allocation

•All Profit centers

•Stock maintenance

•Reporting

- to top management

- to bank

(assuming accounts dept. does statutory reporting)

What we try to achieve by doing this exercise

1. No strain in the cash flow of the company

2. Pay creditors in time

3. Plan for the betterment

4. Stop using working capital for building Capital assets

5. Avoid issuing PDC

6. Get good quality product at reasonable price

7. Bank credit usage discipline & avoid excess borrowing

8. Make all units as profit centers

9. Stock maintenance at optimum level

10. Engage bankers, when in need

11. Identify lossmaking orders, lossmaking profit centers, lossmaking buyers, loss making styles, etc

Areas - new systems will be implemented

1. Cash flow statement monthly (with weekly schedule) – to be used for funds planning for all profit centers

2. Budgeting projection vs actuals

3. Monthly Business Report

- of H.O

- all profit centers

4. Monthly sales report

5. Treasury

apart from regular monthly P&L

ageing report

and OCR

Exclusions

Areas which will not be

focused during this

exercise.

•Accounting

•Auditing

•Internal Auditing

Internal Auditing

Accounting

Auditing