cfo india - august 2011

Download CFO India - August 2011

Post on 16-Mar-2016

225 views

Category:

Documents

3 download

Embed Size (px)

DESCRIPTION

Volume 2 Issue 8

TRANSCRIPT

  • CF

    O I

    ND

    IA

    ISSUE

    VO

    LUM

    E ST

    RA

    TEG

    Y W

    HA

    T W

    OU

    LD P

    ETER

    DR

    UC

    KER

    DO

    ? 26 | CFO

    PR

    OFILE: N

    ISHA

    NT

    FAD

    IA 22 | A

    UD

    I A6 U

    LTIM

    AT

    E IN LU

    XU

    RY

    50

    08

    02

    A 9.9 MEDIA PUBLICATION

    NISHANT FADIACFO PROFILE p. 22

    AUDI A6 ULTIMATE IN LUXURY p. 50

    STRATEGYWHAT WOULD PETER DRUCKER DO? p. 26

    VOLUME 02ISSUE 08Rs.50AUGUST 2011

    CFOs are increasingly facing an avalanche of added responsibilities thanks to strictcorporate governance, tougher compliancelaws and increased stakeholder demand. How are they tackling these challenges? Pg 12

    withCopingCompliance

  • CF

    O I

    ND

    IA

    ISSUE

    VO

    LUM

    E

    STR

    AT

    EGY

    WH

    AT

    WO

    ULD

    PET

    ER D

    RU

    CK

    ER D

    O? 26 | C

    FO P

    RO

    FILE: NISH

    AN

    T FA

    DIA

    22 | AU

    DI A

    6 ULT

    IMA

    TE IN

    LUX

    UR

    Y 50

    08

    02

    A 9.9 MEDIA PUBLICATION

    NISHANT FADIACFO PROFILE p. 22 AUDI A6 ULTIMATE IN LUXURY p. 50

    STRATEGYWHAT WOULD PETER DRUCKER DO? p. 26

    VOLUME 02ISSUE 08Rs.50AUGUST 2011

    CFOs are increasingly facing an avalanche ofadded responsibilities thanks to strict

    corporate governance, tougher compliancelaws and increased stakeholderdemand. How are they tacklingthese challenges? Pg 12

    WITH COPInG

    COMPLIAnCe

    governance

    18 LESSONS FROM EAST AND WESTA CIMA report argues in favour of a corporate governance model that takes into account the best practices from Asia and the West

    insight

    42 ORGANISATIONAL HEALTH: THE ULTIMATE COMPETITIVE ADVANTAGE To sustain high performance, organisations must build their capacity to learn and keep changing over timeTo sustain high performance, organisations must build their capacity to learn and keep changing over time

    ILLUSTRATION & COVER DESIGN SHIGIL N

    AD INDEX Financial Executive 02 | Airtel 35,36 | Sodexo Back Cover

    CFO InsIdeA U G U S T | 2 0 1 1

    COPING WITH COMPLIANCE! CFOs today face an avalanche of new responsibilities, thanks to stricter corporate governance and compliance laws. How are they tackling these challenges?

    cover story12

    cfo profileFocussed: 3D Vision in FinanceNishant Fadia, the CFO of Prime Focus, one of the worlds leading visual entertainment firms talks of the joys and pains of his job

    in practice26 WHAT WOULD DRUCKER DO?Two US-based chief financial officers discuss how they apply Peter Druckers techniques to their current business challenges

    i thinK10 S MAHALINGAM The CFO and ED of TCS says currency volatility, uncertainty in the global economy and issues like retaining talent, keep him awake at night

    10

    case stUDy

    32 COMMUNICATING FOR PROFITSushil Agarwal, CFO of Aditya Birla Nuvo, recalls how a debt burden was reduced and a business unit made profitable

    cfo loUnge

    50 ON WHEELS | AUDI A6

    52 TRAVEL | LEEDS CASTLE

    54 GIZMOS | DENON HOME THEATRE regUlars

    4 LETTERS TO THE EDITOR

    06 O-ZONE

    56 NOT JUST THE LAST

    WORD

    52

    22

  • More than 15,000 Members | 85 Chapters Worldwide | 79 Year History

    "Member relationships with !nancial thought leaders from large, highly-diversi!ed global corporations and conglomerates to smaller private companies and non-pro!ts.

    Mary Jo GreenSenior Vice President & TreasurerSONY CORPORATION OF AMERICA

    "Leading-edge content and objective research for the competitive advantage I need to meet the demands of a multinational computer technology corporation.

    Taylor HawesCFO Intellectual Property & LicensingMICROSOFT CORPORATION

    FINANCIALEXECUTIVES.ORG | MEMBER SERVICES 877.359.1070

    A newly-established category of FEI membership that empowers talented, motivated !nancial professionals with ongoing opportunities for personal and professional growth as their careers advance

    Choose FEI to support your advancing career as a !nancial professional.

    membership Interested in learning more about the Financial Executives International India Chapter?

    Contact Tom Thompson at tthompson@!nancialexecutives.org

    THE VALUE OF FEI MEMBERSHIP Financial Executives International (FEI) is the professional association of choice for senior-level finance executives.

  • 3AU G U S T 2 0 1 1 C F O I N D I A

    from the managing editor

    dhiman chattopadhyaydhiman.c@9dot9.in

    Complying withCompliance

    LATE LAST YEAR when I met S Durgashankar, the CFO of Mahin-dra-Satyam (he has since moved back to Mahindra & Mahindra as Head of M&A), for a cover feature on the remarkable turnaround story of the beleaguered software giant, he spent half-a-day explain-ing why every CFO in India must ensure that their companies fol-lowed all compliance norms. Or else, he said, sooner or later, many of them would meet the fate that befell Satyam.

    As we went about writing this issues cover package, my colleague Bennett Voyles, spoke to a number of C-suite executives as well as experts on governance, about the level of compliance in India Inc and the challenges CFOs faced. Some of what we learnt was indeed worrying. For instance, how do CFOs manage to cope with the over 200 filings companies are supposed to make every year? Apparently, many fail the test. One of the experts we spoke to, Nitin Deshmukh, Chief Executive Officer of Kotak Private Equity Group, said his team seldom completes a due diligence exercise on a company without finding compliance related problems. Without exception, there are almost always issues in all mid-sized companies, he said.

    The good news is that a majority of companies and their CFOs have understood the correlation between compliance and success in the market and are gearing up to meet this challenge. Read our cover story (Coping with Compliance, Pg12) to find out how CFOs across India are facing up to this challenge.

    Of course, there is a lot more in this issue. Read about the exciting journey of Nishant Fadia, the 34-year-old CFO of Prime Focus, the company that started in 1997 from a garage in Mumbai. Today it is the worlds largest special effects and post-production firm with its wings spread across three continents. The festive season is upon us and in the Lounge section, we have featured some of the best things you can bring home this month the new Audi A6, a new Denon home theatre or tickets to a holiday in UK. Enjoy the issue.

    SUBSCRIBER SERVICES:

    Call +91-120-4010999

    VISIT CFO INDIAS WEBSITE

    www.cfo-india.in

    MANAGING DIRECTOR: Dr. Pramath Raj Sinha

    EDITORIALEDITOR: Anuradha Das MathurMANAGING EDITOR: Dhiman ChattopadhyayCONTRIBUTING EDITOR: Bennett Voyles

    DESIGNSENIOR CREATIVE DIRECTOR: Jayan K NarayananART DIRECTORS: Binesh Sreedharan & Anil VKASSOCIATE ART DIRECTOR: PC Anoop VISUALISERS: Prasanth TR, Anil TSENIOR DESIGNERS: Joffy Jose, NV Baiju, Chander Dange & Sristi MauryaDESIGNER: Suneesh K, Shigil N & Charu DwivediCHIEF PHOTOGRAPHER: Subhojit Paul PHOTOGRAPHER: Jiten Gandhi

    THE CFO INSTITUTEEXECUTIVE DIRECTOR: Deepak GargNATIONAL HEAD: Bindu KrishnaASSISTANT BRAND MANAGER: Nisha AnandSENIOR MANAGER: Shreya PilaniASSOCIATE: Deepika Sharma

    SALES & MARKETINGASSISTANT REGIONAL MANAGER (SALES): Rajesh Kandari (+91-9811140424)NATIONAL MANAGER (EVENTS & SPECIAL PROJECTS): Mahan-tesh Godi (+91-9680436623) ASSISTANT BRAND MANAGER: Arpita GanguliCO-ORDINATOR (AD SALES, MIS, SCHEDULING): Aatish MohiteSOUTH: Vinodh Kaliappan (+91-9740714817)WEST: Sachin N Mhashilkar (+91-9920348755)For any customer queries and assistance please contact help@9dot9.in

    PRODUCTION & LOGISTICSSENIOR GENERAL MANAGER (OPERATIONS): Shivshankar M HiremathASSISTANT PRODUCTION MANAGER: Vilas MhatreLOGISTICS: MP Singh, Mohamed Ansari, Shashi Shekhar Singh

    OFFICE ADDRESSNine Dot Nine Interactive Pvt Ltd Kakson House, A & B Wing, 2nd Floor80 Sion Trombay Road, Chembur, Mumbai- 400071 INDIA.

    Published, Printed and Owned by Nine Dot Nine Interactive Pvt Ltd. Published and printed on their behalf by Kanak Ghosh. Published at Bungalow No. 725, Sector - 1, Shirvane, Nerul, Navi Mumbai - 400706 Printed at Nutech Photolithographers,B-240, Okhla Industrial Area Phase-1,New Delhi-110020

    All rights reserved: Reproduction in whole or in part without written

    permission from Nine Dot Nine Interactive Pvt Ltd is prohibited.

  • 44 C F O I N D I A AU G U S T 2 0 1 1

    Letters

    Most articles in CFO India are informative and cover a wide variety of subjects. I quite enjoyed reading the last issue. Vardhan Dharkar,CFO, KEC International, Mumbai

    Informative and enjoyable

    CFO INDIAAugust 2011

    AT PAR WITH THE BESTI am regular reader of CFO India magazine. The content of the magazine is amazing and can any day match that of cfo.com, the American magazine. My work as a consultant is around CFO services. The insights you provide are really helpful in increasing my understanding and knowledge about the CFO subject. Can you put up some webcasts of key interviews on your website? Rahul Palwe, Consultant, Deloitte, Mumbai IRREGULAR DELIVERYI have been receiving my copy of CFO India late for the past few months. Will you kindly look into the matter? Sunil Nayak, CFO ACC Ltd, Mumbai

    EXCITING COVER FEATUREI really liked the July issue (The Dream Mer-chants). It was interesting to find out about the nature of challenges faced by CFOs of football clubs or of companies that sell yachts, holi