CFOs

Let Us Define Ourselves and Introspect

Who am I ? What is my existence for? Let us assess realities within our ecosystem
Chief Dharam Officer

Chief Bright-sizing Officer

Chief InnoventionTM Officer

Chief Key Mangl. Personnel

Chief Reader of Ex. Summary

Integrated Reporting *– Is It The Future?

* ‘Don’t let others define you’ ! Communicate what you are trying to do
a. Strategies b. Performance c. Prospects d. Governance and e. Propositions for creating and preserving values in short, medium and long term – Paul Druckman, CEO of International Integrated Reporting Council IRC’s final draft for consultation has been published – Expectations from Analysts will increase manifold

3 Source: International Reporting Council PwC’s World Watch, Issue 1, 2013

What Metamorphoses are Just ahead of Me
 New Companies Bill  CFO and CS designated as KMPs – CFO to sign Annual FSs  Minority Shareholders may nominate Directors in listed companies  Class Action Suit permitted to be filed against a company  Periodical rotation of Auditors

 NFRA to also prescribe monitor Auditing Standards
 Many more measures for strict enforcement of governance  Tax Accounting Standard knocking the door  GST and GAAR are on their advent way  Ind AS may not be far behind  Ring fencing of talents will pose a problem  IT enablement of systems - An imperative and not an option any more  Free lance Analysts continue to remain out of regulatory clutch

News Item in The Economic Times, August 15, 2013

What Is My Risk Universe?
Create and Review the Risk Register

External Risks – Reforms, Market, Technology,

Competitor, Natural, Legal & Regulatory, Political
Action - Map every ‘Cash Generation Unit’ vs. Risks and Mitigation Steps Currency Exchange

Financial

Credit

Planning

Customer Success
Human Resource Secrecy

Operational and Environmental Strategic

Goal Congruence
Health & Safety R&D Fraud

Cost of Capital

Leadership, Product Profile, Product Image Life Cycle, Business Portfolio, Business Erosion Model, Communication, Org. Structure, Business Alliances Product / Service Pollution Failure GAAP Conversion

Info. Reliability

Liquidity

Image Erosion

Brand Compliance Erosion Direct and Indirect Taxes
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External Reporting

What Are Our Governance Related Issues Risk and Performance Management

Disclosure and Transparency

Align strategic oversight role with Risk Intelligence and Congruated Goals 7

Legal and Regulatory Boundaries

Corporate Governance

Independence and Value Orientation
Business Practices and Ethics

Have I Mapped Myself and Identified My Immediate Transformation Needs
Finance Profiles
High

Finance Efficiency

Low Low High

Business Insight
Source: IBM Institute for Business Value, The Global CFO Study 2010

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CFO Study India Point of View