© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.s...
Upcoming SlideShare
Loading in …5
×

Shekarsan Apr 20 CII CFO meet

162 views

Published on

7 symptoms of a business that is thirsting for cash. When you cannot borrow more and your customers do not pay you fast enough, how do you keep the business running? Try this. If it worked for the others, why not you ? Check it out.

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
162
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Shekarsan Apr 20 CII CFO meet

  1. 1. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comBanish waste&Create wealthAccelerate cash flows. De-risk the business.1Thursday, 18 April 13
  2. 2. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comBusiness challengeMARGINPRESSUREDelayedreceiptsAdvancereleaseCostEscalationYieldreduction2Thursday, 18 April 13
  3. 3. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comBusiness challengeOur proposition: Refresh our perspectives!MARGINPRESSUREDelayedreceiptsAdvancereleaseCostEscalationYieldreduction2Thursday, 18 April 13
  4. 4. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com7 Symptoms of cash constraint1. Delayed payments to vendors and employees.2. Ad hoc borrowings from Non Banking sources.3. Mounting interest burden on borrowings.4. Penalties on late payments and disputes.5. Increase in ‘other income.’6. Delayed release of refunds, commissions & credit notes.7. Reserves used up to meet ‘nasty surprises.’Core issue : Expenses run ahead of cash flows!3Thursday, 18 April 13
  5. 5. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comSTRATEGIC GOALWho wants to fund aSustainable long term growthwithDaily cash inflow ?Olympic mindset : Faster. Higher . Farther4Thursday, 18 April 13
  6. 6. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comFREE: Estimate Waste!www.shekarsan.com5Thursday, 18 April 13
  7. 7. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comFREE: Estimate Waste!www.shekarsan.com5Thursday, 18 April 13
  8. 8. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comFREE: Estimate Waste!www.shekarsan.com5Thursday, 18 April 13
  9. 9. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comFREE: Estimate Waste!AnnualTurn over` 5 Crores• LostVolume• LostValue•LowVelocityQuarterlywasteestimate` 2 Croreswww.shekarsan.com5Thursday, 18 April 13
  10. 10. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comSignals:Time based metrics1. Lead time for new offerings2. Order maturity lead time3. Order acceptance rate4. Rate of schedule adherence5. Delivery lead time(TAKT)6. Touch time7. On Time Fulfillment RateKey: Match weekly cash flows to meet commitments6Thursday, 18 April 13
  11. 11. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comTangible results• Operating efficiency:Throughput• Rate of Value added per hour• Conversion efficiency:Turns• Sweat the working capital• Capital efficiency: Investment• Weed out non performing assetsDon’t focus on costs. Capitalize on timing7Thursday, 18 April 13
  12. 12. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.comAccelerate cash flows. De-risk the business.Testimonials*Gokaldas ImagesSamtelSheela FoamPaharpur 3 PNat steelGodrejFleetguardIndo asian* Reproduced with permission.www.goldrattindia.comTestimonials and authentic and audited results available at website.8Thursday, 18 April 13

×