Projecting the long term financial picture of a company based on multiple analysis is a complex and demanding role. Five times Award winning, CFO, Dinesh Sharma of RVS Financial Services Ltd .(Former CFO, Orion Security Services Pvt Ltd) gives us an insight into his challenging position in the world of corporate financial management
A Chief Financial Officer (CFO) carries an immense commercial and regulatory burden. Responsible for the company’s financial situation, whilst also being an integral part of its future, the CFO carries out multiple duties. From financial reporting, deciding where to invest funds, overseeing the capital structure, determining the best mix of debt, equity and internal financing, the role demands dynamic leadership, innovation and forward planning.
An extremely strong professional with nearly 30 years of experience in financial planning and management, working capital management, business analysis, budget analysis, fund raising, banking, treasury, audit and taxation, accounting and team management, multiple award winner, Dinesh Sharma, CFO brings his wealth of specialist expertise to RVS Financial Services Ltd – a financial and management consultant company operating out of Delhi India. Here he talks to Business Worldwide Magazine about his role as CFO of this prestigious company, the nature of the company’s business and his perspective on both the impact of the coronavirus crisis and strategies to help clients emerge from it.
First of all, could you give us an insight into the general day to day functions carried out by RVS Financial Services Ltd and its aims?
RVS Financial Services was founded in 1994, driven by an aspiration to create a hub of finance professionals in the corporate finance space. The main objective was to provide prompt, professional and committed corporate finance services via a vast array of financial products and services.
In a competitive world, all activities revolve around one thing – earning sufficient profit. To this end, all business concerns need money to meet their necessities. Thus, finance may be classified as capital, investments, funds, etc, but each term has its own defined meanings.
RVS Financial Services Ltd, whilst working with clients to provide a comprehensive package of financial services, also adopts an innovative approach, challenging companies to recognise an ever-changing world and to position themselves accordingly.
Our portfolio of products is varied, meeting the needs of start-ups, small enterprises and large corporates across manufacturing, healthcare, construction, IT and hospitality sectors but includes the following:-
- Working capital facilities both fund based and non- fund based limits
- Project financing be it a green field project or brown filed project
- Techno Economic Viability Study
- Detailed Project Report
- External Credit Rating
- Appraisal and renewal of credit facilities under sole, multiple or consortium financing
- Due Diligence
- Virtual CFO (Chief Financial Officer)
- Day to day banking compliances
- One Time settlement
- Corporate Debt Restructuring
As CFO of a thriving financial services organisation, your advanced knowledge of financial concepts is invaluable, yet to fully understand the needs of clients and help them to be profitable and competitive, the role demands far more. Can you tell us about the changing role of the CFO and how you’ve adapted to a new emerging marketplace?
Certainly in recent years the role of the CEO has undergone rapid transformation – not only in India, but globally. Traditionally, I think the position was merely viewed as being that of a financial boss, but now the role has expanded to include strategic planning and advising the CEO with operational decision making.
Today’s CFOs are expected to remain up to date with the latest technological advances, address issues surrounding capital structure, and to present shareholders, analysts, colleagues and clients with timely and accurate statistics and financial information.
No two days are ever the same, especially within a consultancy with such a diverse client base as ours. Personally, I’ve had to focus more on proactively studying the economy in order to provide the best and most appropriate advice for future investments, and there’s also more of an importance on understanding business risks and the impact of the changing atmosphere. However, the strategic planning, analysis and monitoring skills gained during my extensive career journey to date, are invaluable tools which allow me to ensure business growth whilst maintaining responsible investments.
Within the current economic climate, the role of the CFO has had to adapt to severe economic concerns. Can you tell us how you offer businesses help through the current coronavirus pandemic?
All organisations are trying to curtail costs. Amidst the chaos of uncertainty, CFOs have a central role to play as a leader who directly contributes to the financial health and wellbeing of an organisation.
Within a financial and management consultancy such as RVS Services, I believe our responsibility is to help clients set out a line of defence. Whether this encompasses, forecasting cash collections in the context of sales, collecting payments from customers or considering options to raise capital, my role as CFO is to help organisations navigate through the crisis, stabilising, creating conditions for growth and building the resilience needed to cope with unprecedented financial burdens.
As a result I see the role of the CFO shifting more from traditional cost control to growth optimisation, perhaps leading to positions which merge with that of the CEO. The urgency of the coronavirus pandemic and economic difficulties caused, have accelerated the increasing role of the CFO, forcing a re-examination of strategy, risks and business models, broadening the traditional perspective.
In summary, I believe that in partnership with RVS Financial Services, my role as CFO during this uncertain time includes providing resources for clients in supporting talent, bolstering liquidity by managing short term credit, cash and performance needs, communicating frequently with key stakeholders, managing risk and planning for recovery post this Covid-19 crisis.
Managing efficient recovery must be the overriding thought in everyone’s mind at the current moment. Do you have a clear focus for preparing to emerge from the pandemic?
While differing geographies and sectors of industry will inevitably recover at varying rates, it’s never too early to think about recovery. Robust and resilient companies will be better placed to survive but these are qualities which must be cultivated. To this end, it’s vital to think of recovery as putting in place positive actions rather than just merely reactions to the world around us.
We need to think about the ‘new normal,’ opening up ways of digital transformation, rethinking entire portfolios and the ways in which people work. We may also need to realign how companies relate to governments and how environmental issues are addressed, as well as identifying and maintaining a sense of purpose. Knowing what an organisation stands for and bringing values which provide a framework for sound and ethical decision making.
As CFO of RVS Financial Services Ltd I remain committed to helping organisations balance their capital demands and effectively deploy capital to drive long term value creation. The path ahead may well be a rocky one, but through a process of reviewing performance, optimising business portfolios and refocusing priorities, RVS Financial Services Ltd is best placed to assist clients of all sizes emerge from this financial crisis.
Delhi based RVS Financial Services Ltd are named as one of the most efficient financial consultancy companies in northern India. As a hub for financial management advice, the company has a wide range of products and services and is continuously striving for excellence in funding solutions.
Detailed information regarding services on offer, plus up to date industry news can be found on the company website at www.delhifinance.com/resource/home.aspx