| | DECEMBER 202319CA CHANCHAL SINGH SATYANDRA RAJORAAs the CFO and strategic advisor at Transformers and Rectifiers, my focus lies on optimizing working capital. Recognizing our capital-intensive nature, I concentrated on bottom-line profitability, emphasizing cost-effectiveness over top-line growth. By implementing measures like reducing unnecessary inventories and streamlining raw material requirements, we've significantly cut our working capital cycle by up to 20 days. We also revamped our product and customer mix, focusing on sectors with favorable payment cycles, thereby reducing debtor cycles. Additionally, we've instituted rigorous controls, such as withholding job invoicing until we have complete raw material details, enabling precise cost analysis and enhancing overall efficiency. How does your CFO experience enhance the company's profile?In my role as CFO, my extensive expertise in fundraising, investor relations, and relationship development has significantly bolstered the company's standing. Upon joining, I was successful in securing Rs.200 crores in investments through strategic share deals with reputable investors, as well as through NCD and OCD modes. This financial acumen, combined with my profound understanding of the power industry, has enabled me to pinpoint suitable investors and allocate funds effectively to resolve working capital challenges.Moreover, my experience as an intrapreneur, spanning both finance and operations management, has allowed me to institute robust systems and checks across various facets of the organization, including procurement, production, and new business ventures. I also play a pivotal role in identifying motivated senior-level talent, a crucial factor in any industry. By emphasizing self-motivation in leadership roles, I've contributed significantly to our organizational culture. How do you determine the profitability of an investment for the company?Determining the profitability of an investment involves analyzing multiple factors. While the sale price relative to the purchase price is crucial, the real impact on profitability lies in the efficiency of the raw material procurement system, internal operations, financial costs, and overheads. Companies often operate at similar levels regarding sale and purchase price differentials. The key is optimizing internal controls and reducing costs effectively. By efficiently managing factors like finance costs and overheads, organizations can significantly enhance profitability. Therefore, my focus is not just on raw material factors but also on minimizing overheads and non-operating costs to maximize overall profitability.Share your leadership approach and guiding principles.My leadership approach revolves around a simple yet powerful formula: taking responsibility and initiative. I emphasize to my team that their successes are their own, while any failures are mine to bear. This trust and empowerment encourage them to excel without fear of repercussions. I focus on developing my subordinates, instilling in them the confidence to tackle challenges independently. By fostering this sense of responsibility and trust, I not only cultivate a skilled workforce but also instill confidence in my leadership and the organization as a whole. What financial areas do you plan to focus on for Transformers and Rectifiers?In terms of financial focus for Transformers and Rectifiers, I advocate investing in human capital, given our human-centric industry. There's a need for skill development and expertise, especially since our business is not automated. Additionally, I propose investing in new business lines, such as IDT transformers & green energy transformers, which are emerging opportunities and pivotal for the future. Hydrogen power and renewable energy are crucial areas, aligning with the global shift towards renewable energy transformation by 2030. Another potential venture is investing in hydrogen carriers, a significant market as hydrogen gas transitions into liquid form. I'm also exploring backward integrations within the organization. While I don't recommend acquisitions presently, I emphasize the importance of above new integrations and backward integration over the next two years.What advice would you give to the upcoming financial leaders in the industry?To become a successful financial leader, dream big and live your dreams. Treat your work like a baby, nurturing it with love and passion. This drive will propel you to achieve more, set higher goals, and surpass them. Hard work and intelligent effort are essential, but genuine passion and love will lead to unparalleled achievements. The success of a business is lying in the success of its financial controls, I always believe in control & monitoring of four pillars; CPIR (Cash, Payables, Inventory & Receivables) if these pillars are monitored properly there is no stoppage for any organization. I strongly believe the role of a CFO is not limited to finance and today his role is beyond finance and broadly for future, how organizations wants to grow in time to come is the future approach and CFO plays most pivot role in this that's why nowadays CFO is also terms as Chief Future Officer. CFOs IN MANUFACTURING2023 TOP 10
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