Client Challenges
A client engaged in metal trading business approached PKC with the following challenges :
- Ineffective accounting structure
- High Statutory non-compliances
- Business net worth is not visible in the accounts
- No clue about the business profitability
- No bank support so obtained unsecured loans
- Huge interest cost on the unsecured loans
PKC Solutions
PKC helped the client with the following solution :
- Defined right accounting structure by merging 10 entities
- Restructured the balance sheet to gauge the actual business net worth
- Analysed income & cash flows & devised a financial strategy
- Created unsecured loan redemption program to reduce interest cost
- Ensured all statutory non-compliances are corrected
- Provided step by step advice to client to achieve their goals
Results
- 100% Statutory compliances
- Reduced secured loans & interest cost
- Improved ROI of the business
- Effective working capital optimisation
- Simple and real time accounting system
- Management time saved in Finance operation