Close your books faster, Error Free with Extensive Analytics - 1KEY Financial Consolidation Management (FCM) for CFO

MAIA
Intelligence
Agenda &
Corporate Overview
Thursday, February 25, 2010

Agenda
MAIA Corporate Overview
Current closing process & Financial Consolidation challenges
Overview on 1KEY Technology Framework
Financial Consolidation Management - Solution overview
Panel Discussion ‘Reducing Timelines For Reporting Cycle’
Tea and Snacks

Today’s theme
Consolidated financial statements & Reporting should factor the holding company's subsidiaries into its aggregated accounting figure
Representing how the holding company is doing as a group
The consolidated accounts should provide a true and fair view of the financial and operating conditions of the group
Eliminating and Consolidating entries to work back from individual financial statements to a group financial statement
Accurate representing the final outcome from a Statutory as well as Decision Making point of view

MAIA Intelligence Journey

MAIA Product Offerings
Reporting & Analysis Software
Financial Consolidation Management software
Audit cum data investigation tool
extensible Business Reporting Language Software

MAIA Customers

Customers Cases

MAIA Value Proposition

The 1KEY BI Philosophy…

MAIA
Intelligence
Thank you
vikram@maia-intelligence.com
Corporate Office:
2/319, Millennium Business Park, Sector 1, Mahape, New Mumbai, India – 400 701
Tel: 91-22-66888999 | Fax:91-22-66889000

CA Ashwin Dedhia, Director – Solutions MAIA Intelligence

Financial Reporting
Last Decade
12 to 18 months statements were made and closed in few quarters after the end of period
Consolidated Statements were not Mandatory
Current Decade
Yearly & Quarterly Statements were made and closed in few months after the end of period
Consolidated Statements became Mandatory (AS-21)
Expectations Today
Yearly, Quarterly & Monthly Statements are required to be closed in weeks & days
Consolidated Statements required by LAW and also Management

Why we need FCM
As an organization grows, so does the difficulty of its financial consolidation and reporting challenge.
Organizations have to deal with
multiple currencies, geographies
various accounting standards
Changing reporting requirements
Compliance Regulations.
Integration of new business units into the reporting chain.
Through all of this, the organization must balance the need for precise financial reporting and corporate governance with the need for timeliness in meeting reporting deadlines

Our Solution

Challenges & Solution
Challenge
Organizational Hierarchy: Consolidated Data required at Different levels and segments
User Change Management: Change of Person, increases the time required to do consolidation and is prone to risk of errors
Data Changes & Update: Data (TB) gets updated during the consolidation process and requires lot of verification and care for incorporation
1KEY FCM Offering
Hierarchy can be defined and structured with multiple dimensions, Roll up is easy once the data is captured at Lowest Granularity
Structures once created can be reused and reapplied without special efforts
Import routine, has the control to replace source data without impacting the Mapped information

Challenge
Multi Currency: Units in Different countries use different currencies for transacting and hence the TB are in LOCAL Currency
Technology Platform: Use of FILE Based platform is vulnerable in large group working
Presentation layer: Reports are essentially static. For analysis, users have to either export to Excel and are able to review only in some specific format
1KEY FCM Offering
Provides Multi Currency Management and controls conversion behavior at GROUP Level
Uses standard RDBMS retrieval as well as 1KEY technology & architecture to Extract, Transform & Load data
Uses analytical presentation layers like 1KEY View, 1KEY Cube, 1KEY Chart, 1KEY Dashboard, 1KEY KPI Viewer etc. inbuilt in the 1KEY application

Challenge
Reporting Hierarchy: Report hierarchies cannot be defined; hence data management at the reporting front is cumbersome
Report generation & information dissemination: Requires lot of manual intervention because users have to develop and consolidate individual files, run reports and then share them for use by other Business Users
Role-based report rights: Users need to segregate data and make it available as different reports for different business users
1KEY FCM Offering
Organization hierarchy is supported at the report level. i.e.: Report templates can be the same, but user will be able to view only data pertinent to his function / role in the organization
Query building is a one-time activity which requires IT intervention. Business Users can run / format / templatise their own reports
Once role-based logins are defined in the 1KEY application, data is automatically segregated as per the Business Users role / function

Challenge
Security levels: No separate data security levels at the report level
Data sanctity across the enterprise / teams: Since Excel is the presentation layer, data editions / deletions often happen knowingly / unknowingly which creates unfriendly scenes / time loss (for data conformance) during team meetings
Data availability: The report shows data as-of the report published time. For real-time data, IT users have to re-run the report and publish it again for Business Users
1KEY FCM Offering
Multiple data security levels like Domain level security, user level security, report level security and data level security
1KEY presentation layers don't allow editions / deletions
Refresh key available on the report level allows Business User to fetch real-time data anytime he wishes to, without going through the iterative process of asking the IT user again & again

Challenge
Analytical Reporting: Data is at Summary Level only and cannot be segregated for analysis in the same report
Single Report Multiple Data Sources: Requires manual working and prone to errors
User training: Business User needs advanced training on EXCEL, functional aspects and controls
1KEY FCM Offering
Cube creation happens at the Business User level. Analysis is possible on every parameter with one-time technical activity
One time query built-up activity and a single report can show data from multiple data-sources which can be different RDBMSs as well i.e.: SQL, Oracle, DB2, Excel etc.
Interface similar to Office Applications, reduces the user training needs, and users increase productivity from 1st day

Challenge
KPI: Highlighting Variances and providing visual references
Remote Viewing: One gets snapshots of data, and is under risk of latest file getting missed in review
Static Reports: The formats are vulnerable and gets changed by error
1KEY FCM Offering
High level snapshots are possible to be given with ROLE Based access control for Total Business Control
XML based publishing of data for remote analytics. The user can use the power of Analytics when not connected to Network / Internet
Static Report Designer, empower to print various formats Statutory or others based on the Role based Security

Challenge
Scenario Management: Management expects to have the numbers being compared with multiple scenarios to review performance
Audit Trail: Current EXCEL process lacks trace of the changes and hence reduces confidence on output
Cost of Compliance: Repetitive Energy is invested in regrouping the same data for different compliance and reviews, leading to increase in Cost and Time
1KEY FCM Offering
Empowers the users to analyze the data in Multiple Scenarios against Budgets, with or without specific entry types, testing the change impacts, without affecting the source data and process
Exhaustive Audit Trails for the Data Capture and Change Cycles provides greater visibility on the activity and enhances confidence in the process
It reduces TIME to CLOSE, provides Single Interface for Multiple Compliance Reporting Structures at One Source - Leading to Great Savings

Challenge
Multi Period Comparison: External Factors lead to having comparison with Non-Traditional flows for better understanding and reading of datasets
Use Interface: Users are expected to remember the cells and sheets that need to be changed, risk of incidental errors is very high
1KEY FCM Offering
Comparison & Variance Analysis with various data Period to provide better decision control system
Carefully selected Interface and process to help the Functional Users conveniently handle the process with confidence and clarity

3 Idiots
Business
Mainly Performance Driven with its FOCUS on TOP Line, Bottom line, Growth %age, etc.
Technology
Mainly Structure driven where Security takes over the Flexibility and mapping with Business Need.
Statutory Compliance
Mainly Procedure driven where Submission of Information in particular formats is focused, often requiring disruption of current processes

Business
Stake Holders / Report Users
Management
Government
Banking & Finance
Auditors
Investors
Industry

Technology
Multiple Data Input Sources
Application Spread across Geographies
Multiple Applications for Processes
Challenge to manage out of the process information
Heavy Dependency on most FLEXIBLE tool
EXCEL

Statutory & Compliance
Accounting Standards Applicable
Compliance / Statutory Reporting Formats
Schedule VI of Companies Act
US GAAP
SEBI Reporting
IFRS Reporting
Reporting for Other Authorities
Industry Norms & Regulations

Accounting Standards
AS 13 – Accounting for Investments
This Statement deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.
AS 14 – Accounting for Amalgamations
This statement deals with accounting for amalgamations and the treatment of any resultant goodwill or reserves. This statement is directed principally to companies although some of its requirements also apply to financial statements of other enterprises
AS 18 – Related Party Disclosures
The objective of this Statement is to establish requirements for disclosure of:
(a) related party relationships; and
(b) transactions between a reporting enterprise and its related parties.
AS 21 – Consolidated Financial Statements
The objective of this Statement is to lay down principles and procedures for preparation and presentation of consolidated financial statements.
AS 23 – Accounting for Investments in Associates in Consolidated Financial Statements
The objective of this Statement is to set out principles and procedures for recognizing, in the consolidated financial statements, the effects of the investments in associates on the financial position and operating results of a group.
AS 27 – Financial Reporting of Interests in Joint Ventures
The objective of this Statement is to set out principles and procedures for accounting for interests in joint ventures and reporting of joint venture assets, liabilities, income and expenses in the financial statements of ventures and investors.

Eliminate bottlenecks for faster close
A faster close through streamlined financial consolidation and reporting processes – without sacrificing data quality
Safe adaptation to changing needs without having to rebuild or destroy previous reporting scenarios, saving time and money
Confidence and corporate compliance with reliable data for legal reporting and management decisions

What do our teams do
USE EXCEL
Can we improve their performance?

Excel Chaos
Manual spreadsheet generation is a breeding ground for errors
Little centralized control on spreadsheet published data
Poor data integrity; chances of error very high
Inability to react and reflect change in case if any, at speed and with accuracy.
Unmanageable consolidation mechanics for mapping chart of accounts hence time consuming
A small error in formula may present whole picture in different way
Lack of integration with other systems and purely manual each time same laborious work
No support for multiple line items in an account
Inflexible reporting, so cannot do any analytics on data
Little facility to view data across different dimensions, periods, currencies, ratios etc.

Technology Framework

MAIA
Intelligence
1KEY Technical Framework Overview
Thursday, February 25, 2010

Architecture of 1KEY Agile

TRIAL BALANCELocation 1
TRIAL BALANCELocation ‘n’
1KEY FCM data flow
- Mapping of Ledger Codes with Predefined Schedule VI Structures - Additional Journal Entries- Currency Details etc.
Reporting of the Data 1KEY for AnalyticsExcel for Further processingStatic Reporter for Formatted Printing
PROCESS
Conversion of multiple TBs into 1KEYFCM Warehouse
Processing * Consolidated TB * P&L, B/S, Schedules* Ratio Analysis* Special Reports

1KEY FCM Flow

1KEY BI – Enterprise wide

Get the right direction instantly
VIEW has been engineered to fully address the reporting requirements of your organization helping you to compete and win in the marketplace without much effort or compromise.
It provides runtime analysis, grouping, column customizations with Parent-Child Relationships, Drill Down and Drill Back functionalities with a extremely intuitive report formatting for Business users.

Take Intelligent Decision
CUBE is a comprehensive data analysis, data mining, and multi-dimensional visual reporting solution.
With its powerful data architecture, CUBE is able to slice and dice information efficiently and provide users with an extremely intuitive experience. Regardless of the perspective, data can be rendered to answer business questions - and best of all - it allows business users to focus on business rules rather than creating dozens and dozens of reports.

Create Impact with business data
CHART is a graphical representation and visual reporting which represents business performance via stunning and meaningful diagrams. It helps to drive organizational achievements by giving information in a much consolidated and easy to understand manner.
Runtime user definable drill down & drill back functionality available direct from the charts. Customer segmentation, forecasting, trend analysis, etc. all made easy

Always on and always updating
SCHEDULER enables users to schedule the reports as per the recurrence pattern in the variety of formats like PDF, TXT, XLS, HTML, MHT and RTF to be stored on hard disk, to be emailed to respective business users, or to FTP. It automates the complete process of reporting and avoids the cumbersome work of manually creating and/or delivering reports to respective business users on a periodic basis.

Run your company from anywhere
DASHBOARDS, users can define their own Dashboards having combination of multiple reports like View, Gauge, Chart, KPI's, RSS Feeds etc, on one single screen.
Dashboard is a reporting tool that can be defined as a user interface for organizing and presenting data in a consolidated manner. Data from multiple sources are integrated and unified for display on a single platform. This makes the information easy to read and comprehend, all on the same screen.

Key Performance Indicators
KPI are high-level snapshots of a business or organization based on specific predefined measures. KPIs typically consist of any combination of multiple reports. They may include global or regional sales figures, personnel stats, real-time supply chain information, or anything else that is deemed critical to a corporation's success. KPI allows goals to be observed with different warning colors that will be switched on as defined giving the user a quick view of how well or how poorly each goal is met. It is the best way to track and represent variances on targets & budgets.

File Reader
1KEY FILE READER is a utility that imports data from Text Files, Excel Files, stores it into 1KEY CUBE or 1KEY VIEW for direct reporting and analytics.
1KEY users get the benefits of another key functionality which not many reporting tools software provide as of today.

Query Expert
1KEY has dynamic query engine with expression builder and model creator. It provides the facility to use simple graphical interface to build SQL statements and create views in a database. It has graphical panes that displays your SQL statements visually and a text pane that displays the text of your SQL statement. You can work in either the graphical or text panes.

Role Based Security
1KEY uses "parametric control" for controlling access over business information which is available to users for their reporting needs. Parameters are mapped to the user hierarchy of the organization and hence the access to the relevant data. Parameters definition can be one of the fields available from the system or can be user defined based on the requirement of the organizations.

MAIA
Intelligence
Thank you
vikram@maia-intelligence.com
Corporate Office:
2/319, Millennium Business Park, Sector 1, Mahape, New Mumbai, India – 400 701
Tel: 91-22-66888999 | Fax:91-22-66889000

User Level Security for Usage and Data Access

Define Chart of Accounts :- User can define multiple chart of Accounts for a Single TB to comply with different statutory and reporting requirements like Schedule VI, IFRS , XBRL etc.

Define Hierarchy :- Definition of organization level , from which TB is to be pulled in 1KEY FCM.

Import TB for various Entities of the group.

Define exchange rate [Opening, Closing Rate] for Conversion of Final Accounts in Reporting Currency. ( Average Rate would be calculated automatically).

Creation of Various Accounting Group for financial reporting & define type of exchange rate [Opening, Closing, Average] for conversion of PL and BS items.

Define various ledgers under different companies to pass JV & Adjustment entries.

User can change the order of accounting groups under schedules and
Define group name for the accounting group , of whose, balance comes in opposite than their natural characteristics like cr. Bal of Debtors : to be shown in Advance from debtors under current liabilities.

Define various JV types to categorize JV entries as per their nature.

Mapping of COA for various companies.
One time activity
Can be copied from previously mapped company(COA) or previous period.
Different COA for the same TB (Company).

Mapping GL to CoA
List of Unmapped Ledgers OR Groups.

Mapping GL to CoA
List of Mapped Ledgers OR Groups
Mapping can be changed as per requirement.

Define FA Master for Various Companies.
Can be Copied from previously mapped companies or periods.

Enter FA Transactions for various companies.
It will automatically capture op. & cl. Bal. from TB.

To upload or enter Notes to Accounts.

To enter or upload other reports like Director’s report etc.

Enter data and remarks for Budgeting & Planning for various accounting heads.

Enter definition of Ratio & remarks.
Can be copied from previously mapped company or period.

Financial Reports & Dashboards

Profit & Loss Columnar
Compliance Reporting

Profit & Loss Columnar Schedule

Balance Sheet with Comparison

Balance Sheet Columnar

Balance Sheet Schedule Comparison

Fixed Asset Schedule

Financial Dashboards
Management Reporting

Parameterized Reporting

KEY Performance Indicator& Hierarchical Reporting

Graphical Representation of Data
Sales & Operating Income

Slice & Dice Contents

Questions that get Addressed
How do the balance sheets of different subsidiaries compare?
What is the variance of assets, liabilities and equity between two selected time periods?
What is the Net Working Capital of the company?
Which business unit caused cash drain in a particular period?
What is the breakdown of shareholders equity in a certain period?
What is the leverage and liquidity of the company?
What is the profit margin of each business unit and/or geographic region?
How have margins changed month-to-month over the past year?
Which business units are hitting their margin targets?
Which are falling short?
Which business units are more than 10% above/below their contribution targets?
Which units or regions are over budget by more than 5%?
Which departments have the highest contribution per employee?
Are there trends underlying any revenue or expense categories that need immediate attention?

Risks / Pitfalls to Watch out for Successful Implementation
Kick off meeting involving the stake-holders of the project
Clarity of expectations at the early stage of Project Planning
Involvement of Internal Team in the process
Ownership to be shared with Implementation Partners, they shall be out after 1st Phase of working
Regular Review and monitoring of the Implementation Project jointly with Stakeholders

1KEY Financial Consolidation is a complete data warehouse model
with
standard statutory reporting requirements for publishing financial statements
extensive analytical reports.
provides ability to rapidly close and report financial results,
meet global regulatory requirements,
reduce compliance costs
provide confidence in the numbers.
Bearing in mind that each group of companies has different information needs, and therefore different data processing requirements, configure solutions based on actual needs to help your team save time and effort in a streamlined group reporting process: your team can now focus their effort on other high priority jobs that add more values to the organization.

Accelerate your close cycle and improve the quality of data
Remove the pain of consolidation of financial management & Reporting Cycle.
Organizations that are able to close their books quickly & deliver faster & more accurate information can gain a competitive advantage in a rapidly changing market.

Interaction with Experts
Panel Discussion
‘Reducing Timelines For Reporting Cycle’

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Close your books faster, Error Free with Extensive Analytics - 1KEY Financial Consolidation Management (FCM) for CFO

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Close your books faster, Error Free with Extensive Analytics - 1KEY Financial Consolidation Management (FCM) for CFO — Presentation Transcript