The Complete Man becomes more Intelligent
Mumbai-based Raymond needed a solution which could satisfy the functionality and ability to consolidate and get all financial data on a single platform. MAIA Intelligence’s 1KEY FCM helped meet their expectations.
Incorporated in 1925, Raymond Limited has transformed itself from being an Indian textile major to a global conglomerate within a span of few years. Today, they are one of the largest players in fabrics, designer wear, denim, cosmetics and toiletries, engineering files and tools, prophylactics and air charter services in national and international markets. The Raymond Group also has an expansive retail presence established through the exclusive chain of The Raymond Shop and stand-alone brand stores.
Raymond was looking out for a solution which would provide a complete, accurate and integrated data for its organization. As we all are aware that today’s corporate financial officers are held to higher standards of accountability than ever before, even as their businesses grow more complex and stakeholders demand faster access to accurate financial results. They needed a Financial Consolidation solution, which would combine the power to unify all legal and management financial reporting needs with the agility to blend corporate control with local flexibility.
Since Raymond is a listed company it needs to publish their figures and thus wanted to bring in a system which would fulfill the statutory requirement for the company. Raymond has around 11 profit centers and 27 legal entities and thus required a common mapping of the masses across the organization.
Today organizations need to quickly collect data from operating units around the world, even when these locations have disparate general ledger systems, charts of accounts, and ERP systems. Data needs to be consolidated in line with local and international requirements, such as GAAP, Sarbanes-Oxley, and IFRS, and is stored in a single database, ensuring that everyone works with the same set of numbers, accessing data from software rather than a spreadsheet. Any changes made in this central location, results in greater control and confidence in the numbers. Thus Vivek kale, CIO at Raymond had to ensure that the data compared with budgets, plans, and forecasts within software, should help in improving business insight. It should have detailed journal and audit capabilities to provide consolidated financial reporting transparency to satisfy both internal and external auditors alike.
1KEY FCM was deployed at Raymond. 1KEY Financial Consolidation Management (FCM) is a complete data warehouse (DW) model with standard statutory reporting requirements for publishing financial statements and with extensive analytical reports. Accelerate the close cycle and improve the quality of data remove the pain of consolidation of financial management and reporting cycle. Organizations that are able to close their books quickly and deliver faster and more accurate information can gain a competitive advantage in a rapidly changing market. It helps to provide financial managers the ability to rapidly close and report financial results, meet global regulatory requirements, reduce compliance costs with trust in numbers.
1KEY FCM eliminates the potential errors and reduces time spent on repetitive manual processes with its multi-currency capabilities, automated calculations and adjustments, and other features that address accounting and regulatory issues.
1KEY FCM combines the power to unify all legal and management financial reporting needs with the agility to blend corporate control with local flexibility.
Vivek Kale, CIO, Raymond said, “We set up an appropriate co-ordination between the IT and the business processes; thereby improving the alignment between these two activities resulting in more value out of the technology. 1KEY FCM helped us in reducing the consolidation, close and reporting cycles by days or weeks and deliver timely results internally and externally. It has also improved the data quality to achieve confidence in the numbers of a full audit trail for statutory and regulatory compliance. The major challenge was to satisfy the functionality and cut compliance costs to deliver a single version of the truth through the Web to improve internal and external transparency.”
“We needed to do group level consolidation of 17 subsidiaries and deployed 1KEY for the same. We have to report results every quarter and consolidation was undertaken for this. Since late 2007, SAP has been the base operational system at Raymond. There are areas and small companies; however that are not on SAP platform. We needed a place where we could consolidate the SAP and non-SAP companies’ performance”, Kale further added.
A few of the group’s subsidiaries were using legacy systems. Although Raymond needed to consolidate the information, because of historical reasons, the accounts were different. At every stage it had to get the current consistent data and it was important to do mapping to ensure that this happened. “Once you do that, it is a matter of posting,” said Kale. The statutory reporting requirements including MIS had to be handled. Collecting, integrating and cleansing data was the first step followed by mapping it consistently. The requirement was to take care of reporting for both statutory reasons and for performance.
“We needed to do parallel runs for the data that was already done last year. Then we needed to replicate that data and get results that were the same as last year’s. Now, we are doing it in real-time. As we do a close that will be preceded by doing this consolidation and giving out the results,” said Kale.
Once the mapping etc. is done, you can produce whatever reports you want with the required flexibility. “Tomorrow, if there are any structural changes in the group, we have the flexibility on what we want to report to what level and in what format. We have had BI/analytics/reporting for decades. However, it is much easier to think about this with a data warehouse. It is easier for accounts people to understand. For people who are still comfortable with spreadsheets, the data can be taken out in the format that’s Excel compatible,” concluded Kale.
1KEY FCM is a highly effective yet user-friendly, intuitive solution to manage financial consolidation and group reporting process. It also helps to avoid common pitfalls in consolidation process, and move on to develop more structured, efficient and highly sustainable solutions. By working through the detailed steps in each process, CFOs can now have an effective suite of solution that simplifies and automates FCM process into just a few clicks on buttons.