Banking Operations Revamped

A diaomnd processing company with INR 100 cr turnover had their CA on board but management felt immense need on active participation with respect to Financial Strategy & Processes.

Management approached us through reference & we got convinced to work as their Consulting CFO considering the clear potential for value addition to the company.

We started project with focus on value addition in Bank Finance and observed overcharging of interest by bank on export credit facilities of Rs. 30 Lacs in just one financial year. Established process to keep a tab on it.

My Questions For You

Does company have adequately assured on clear terms in sanction letter w.r.t. rate of interest & bank charges?

Does somebody cross check every interest amount & bank charges with sanction letter on regular basis?

Does company believe that it has secured the best possible deal on cost of funds considering the current downward trends in rates? If not, do we have strategy to renegotiate?

Is capital structure balanced with respect to debt equity ratio within risk appetite?

Is company exploring innovative way of fund raising?