The client, Fulex, is a company that develops fuel efficiency solutions for generators. They hired MyCFO to help develop 5-10 year plans, annual budgets, sales targets, expense budgets, and determine capital and working capital requirements to support ongoing operations and expansion. MyCFO worked with management to get inputs, perform iterations, and get sign-offs on budgets. This process helped Fulex formalize targets and benchmarks, allowing them to track metrics against industry standards and actual performance against budgets.

1. MyCFO India - Finance
Effectiveness To Fulex

2. Our Client
Our client Fulex is in the business of
developing fuel efficiency solutions for
the Genset manufacturers. This
involves carrying out R&D on the
technological and commercial
feasibility of the products and, once
the feasibility is demonstrated,
developing and manufacturing these
products. The Company is in a high
growth phase with a need for
maintaining high level of working
capital to sustain the growth, in
addition to capital requirement to fund
expansion.
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3. The Objective Of The Budget Exercise Was
 To develop 5 / 10 year plans, Annual Operating Plan or
Annual Budgets with monthly / quarterly break-ups at a
departmental and segment level
 Determine sales targets to the sales team, broken by
products, geographies, customer segments etc.
 Determine P&L position and cash/working capital
requirements at various levels of sales
 Determine the amount of capital to be infused to support
ongoing operations and expansion plans
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4. The Objective Of The Budget Exercise Was
Planning for manpower needs
Expense control, by allotting expense budgets to
departments
Determining profitability by product, geography, customer
segments etc
Exploring feasibility of expansion plans with metrics such
ROI and IRR
Scenario analysis, Sensitivity analysis and “what-if”
analysis through modification of the assumptions.
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5. Challenges For MyCFO:
 Arriving at a meeting point between the “top-down” and “bottom-
up” approaches
 Maintaining a balance between “trend-based” and “zero-base”
approach
 Managing iterations and version control
 Consolidation of inputs received from diverse sources
 Seeking consensus and “buy-in” across the organization on a
common set of goals
 Changes in assumptions after freezing the budgets (this was
handled through quarterly rolling forecasts)
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6. MyCFO Approach
 Designing and disseminating information to capture the
assumptions and base data from which the outputs could be
derived with the least manual intervention
 Discussions with the management and department heads for
obtaining the inputs and for seeking clarifications
 Performing iterations to ensure a balanced budget
 Obtaining approvals and sign-offs from individual departments
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7. Presentation of various scenarios to the management
Final sign-off and presentation
Dissemination of departmental and segmental budgets
Control and monitoring
MyCFO Approach
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8. How The Client Benefited
The exercise helped the company to formulate its 5 and
10 year plans along with the annual operating plan,
department and segment sales and expense targets were
formalized, key ratios and trends were fixed and tracked,
this allowed the company to benchmark key metrics
against industry parameters and allowed the Board and
the Management to track actuals on a periodic basis
against the budgets.
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9. Official Website
http://mycfo.in/
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