Английский (Свободно владею)
и еще 1
Английский (Свободно владею)
стаж 15 лет и 2 месяца
The biggest plant for production of metal rebar for the needs of capital construction in the MENA region (Middle East & North Africa). This is joint venture of Metalloinvest and sheikh Bin Khalifa. Direct submission to GM and functional subordination to CFO of managing company Metalloinvest. Production 1 million t. /year. Revenue more than 200 million USD/year. An international team of more than 100 people. Key markets: the Gulf countries. Name of product: metal rebar of different diameters.
Joined the company after the long-term freeze of production period and during preparation for launch.
Freezing production period lasted for three years due to price situation in key markets for metal billet and rebar. Due to the dumping of rebar producers from China, the metal square billet price (material) was higher or equal to the price of rebar (the final product). In the second half of 2015 price situation started to changed and owners thought about the restart of production in 2016.
The short work period of 4 months was due to the fact that local climate was not suitable for the health of my wife and little daughter, as this became clear only after my family moved in to the United Arab Emirates.
Project manager - helped GM to agree restart of production with managing company Metalloinvest and with owners
Crisis manager - made sure that the plant (people, processes, information system, availability of cash) is ready to restart production
Risk manager - minimized commercial and financial risks
TASK 1: To prepare the financial part of the business plan for the restart of production and agree with managing company Metalloinvest.
Before signing a labor contract with the company, being in Russia, I visited Oskol Electro Metallurgical Plant in Stary Oskol (subsidiary of Metalloinvest) where was studying the similar rolling plant and its methodology of management accounting. After the trip I was ready to start my new job and in January 2016 I went to the United Arab Emirates.
There, for the understanding of the restart parameters, short and mid-term goals for the plant I communicated closely with GM. I met with the functional leaders and specialist of the plant to understand the existing business processes. I looked through all the existing contracts. After that all was done I had a picture of the current plant situation and understanding how to achieve set goal.
For the financial calculations I took existing financial model of the plan in Excel format and significantly reworked it based on current realities and taking into account the wishes of GM. Then I fill the model with data. There was not solely source of needed data in the plant, so had to collect it from multiple sources (revenue - GM and commercial managers; costs - administrative manager, logistic manager and production director; balance sheet items - data from the SAP system, and forecasted numbers - administrative manager, logistic manager, production director; cash flow - GM, commercial manager, logistic manager). This financial model was refined often as numbers changed after almost daily meeting with potential customers, suppliers and due to high volatility of metal and rebar prices.
After every new version of the model was approved by GM I sent it for approval to Metalloinvest, from when I received request s to change some parameters: sales, working capital value, costs, etc. This process often reminded me the ping-pong game. Monthly not less than twice a month, I flew with GM Moscow to meet and discuss the model numbers with the GM and CFO of Metalloinvest. With owners of Metalloinvest plant’s GM met without my presence.
This task has given me an opportunity to meet personally all the key personnel of the plant and learn them with the best side. Also, during the meeting in Moscow I was pleasantly surprised by the professional and personal qualities of top managers of the managing company Metalloinvest.
RESULT: The business plan has been agreed by the Board of Directors, by managing company Metalloinvest and the owners in March 2016 with a solemn ceremony of the launch in April 2016.
TASK 2: Analyze business processes, internal controls and make adjustments (if necessary).
The factory has passed ISO 9001 certification. For this certification, a company has to have a description of the business processes. I requested and got acquainted with these procedures, and although it was immediately clear that they greatly differ from reality and has mostly formal function, I decided to take the as a basis. Then I hold a meeting of all functional leaders where every business process has been glued with stakeholders.
During the month were held separate meetings with stake holders for each process, where I clarified the details of the processes, the availability and adequacy of controls, and then significantly corrected the descriptions (including procedures, implementation of new controls, up to date names of positions, the names of documents and SAP forms).
When process descriptions were adjusted they were approved by the stakeholders and by the order of GM. After that, staff was examined the knowledge of the processes.
This task was a challenge for me, because for the first time in my life I worked with people from different cultures (Indians, Arabs, and Indonesians). Sometimes there were funny and curious moments.
RESULT: Business processes and controls were adjusted and optimized in order the plant successfully meets its goals and objectives. During restart of production we managed to avoid inconsistency in the actions of the staff and delays in the production and shipment of the product to customers.
TASK 3: Analysis and development of the SAP information system in order to maintain a correct and timely financial and management accounting.
I have had considerable difficulty with this task. SAP system was implemented by consultants several years ago, but has not been tested during production, as the plan was "frozen" just before the final testing stage. Also in order to reduce costs, contract for the system support has been broken two years ago and there was no opportunity to ask the consultants for help. The descriptive part of SAP system has been partially lost. A significant portion of the staff that taken part in the implementation of the system already left the company. IT manager was not educated as SAP specialist.
Last two years, during production freeze, financial accounting was carried out in Excel spreadsheets; financial reports were prepared also in Excel. Chief Accountant was a certified professional, but also was not experienced user in SAP.
The problems with the system became apparent in the first week of work in the company. After meeting with the IT manager, we understand urgent need to conclude a new support contract with the consultants who implemented the system. But the consultants informed us that to conclude new contract our company has to pay for the two years period since the previous contract was broken. It became clear to us that it is necessary to look for other options.
Then we reported problems with the system support to GM, described the consequences of doing nothing, and offered two options with different budgets: more expensive one – to find new SAP consultancy company with a comprehensive support of our system, and second option, possibly less expensive - to find several freelancers per each module and call their services when help needed. GM approved the second option but the budget was not allocated before the start of production.
Having no IT help it was not possible to dig into numbers, fully understand the settings of the system, to understand what each accounting entry triggers. Thus financial and management accounting in the first month of production was continued to be prepared in Excel spreadsheets.
RESULTS: Analysis of the system has not been completed. The system remained in the same shape sufficient for normal functioning of production, warehouse logistics unit. Finance accounting continued in Excel spreadsheets. We started to look for SAP support specialists, but it was not finished before I left the company.
TASK 4: Monthly preparation of accurate budgets and financial statements according to IFRS
IFRS financial accounting was carried out by accountant partly in the SAP (fixed assets, depreciation), mostly in Excel spreadsheets. Monthly financial reports (P & L, BS, and CF, other additional) were prepared by reporting specialist in Excel spreadsheets. The reports were sent to managing company Metalloinvest for consolidation and analysis.
The annual financial statements of the plant were audited by the local audit company. I checked and signed audited report for 2015 year.
I checked compliance of accounting and reports with IFRS and company’s accounting policies, signed audit report from the company site, advised our accountant on accounting matters. Also I checked accuracy of budgets and reporting packages and sent it to Metalloinvest, I was the point of contact for the Metalloinvest specialists to explain information in the monthly finance reports and budgets of the plant, to provide other information.
Thanks to my professional team (Accountant, Account assistant, Reporting Specialist) this task was carried out easily without any problems.
RESULT: Financial statements and budgets were provided to GM and Metalloinvest in due time with due accuracy. There were no critical comments from them.
TASK 5: Search for the extra funding to cover the working capital requirements.
Metalloinvest requested to go around all the major banks in the United Arab Emirates to try to find funding for working capital in the amount of several dozen million dollars without the involvement of Metalloinvest as a guarantor. Besides local banks, Metalloinvest arranged meetings with a couple of major Swiss banks with whom they have had long-term business relations.
I talked to CFO of Metalloinvest, that this request unlikely to be doable because of the 3 years plant downtime, in fact the plant was considered «start - up». The CFO understood that but we decided to try.
During February and March I met with representatives of five local banks and two Swiss banks. I suggested different options, including trade financing and collateral assets of the plant. All banks responded the same way: after a long downtime of the plant they may consider financing without guarantees by owners only after 1.5-2 years of continuous production and sales.
After my reports on the meetings with banks and their requirements Metalloinvest and owners have decided to finance plant with their own capital.
This task helped to establish contacts with representatives of the largest local banks expose plant for the future relations, highlight a several banks for potential future cooperation.
RESULT: Bank financing in the current phase of the plant life was not received. Banks provided plant with letters of intent on financing after 1.5-2 years of continuous production and sales.
TASK 6: Talent selection, motivation and development
My team was: accountant from Pakistan, accountant assistant from Indonesia and reporting specialist from Ukraine. In the first day of my job I held a meeting with the team and further individual meetings with each employee from my team. During these meetings I knew about their roles and tasks done, their competences and experience, and in turn talked the same topics about me. I tried to convey my vision of the role of financial department, the challenges ahead. What is very important, I tried to establish an informal contact, trust between us.
It turned out that the accountant is leaving the company in 3 months, moving his family to Canada. Therefore, one of the sub-tasks was to find a new accountant and transfer functional. The second sub-task was to delegate part of my responsibilities to reporting specialist, to allow me be more involved in commercial activities of the company.
To find a new accountant I has defined a list of standard search parameters necessary to carry out accounting job duties and handed them over to HR specialist. The list included: certified accountant (ACCA, CPA, CMA, and CIMA), experience working with SAP, relevant accounting experience, remuneration limit, etc. But there was one more important for me parameter, which I did not have on the list – a candidate must have a proactive position in life and have the desire to grow professionally. I am always looking for candidates with growth potential. Usually, standard resumes do not provide us with this essential information, so it only could be understood during phone conversations or meetings. Desired candidate was found one month prior to departure of active accountant to Canada and that allowed him to pass functionality to new employee without rush.
Delegating part of my responsibilities to reporting specialist was done in a fairly short period of time. First I talked to specialists of managing company Metalloinvest, who already worked some time with my subordinate and received positive feedback. Then I spoked with my reporting specialist offering her to accept new responsibilities and she was happy to take on new challenges and tasks.
With regret I informed my team about my departure from the company. They are good people and a great professional team.
RESULT: We found a new talented accountant and successfully transfer him accounting function. Part of the powers I delegated to subordinates motivating them to develop within their jobs.
TASK 7: Participation in negotiations with suppliers and customers. Checking and approving of contracts for the purpose of risks limitation.
Having in long-term experience dealing with commercial contracts, including import/export trade contracts, I have good understanding of Incoterms, kinds of trade financing, possible currency risks. Thus GM invited me as expert to all negotiations with customers and suppliers, when intent to reach any preliminary agreements under the terms of the contracts. Then I checked contracts, offered adjustments and approved final drafts of contracts, prepared by specialists of commercial department.
Participation in negotiations gave me great satisfaction, inspired me, because at that time I clearly understood that I am not just a book-keeper but a business partner to GM. In the end, I realized that I would like to pay attention to responsibilities related to the commercial side of the business for at least 30% of my working time.
RESULT: I checked contracts scrupulously but within the established time limits. Adjustments to contracts I worked through within the company and with business - partners. Risks were minimized, taking into account the constraints associated with decisions of GM and commercial department.
TASK 8: Working capital and liquidity management.
The current activity of the plant at the time of freezing funded by the owners under the internal loan, so my main duty as part of this task was to make the correct monthly spending budget, coordinate it with Metalloinvest and apply for transfer of the next tranche. The same way, to finance working capital, we applied for credit tranches from owners, and main task was to agree with them on the amount and date.
For a cash flow forecasts I used data of budgets and forecasts. Cash flow monitoring and control effected via the Excel forms and by approving every application for payment.
During a period of my employment there was no considerable stock, accounts payable and accounts receivable due to lack of production. So this fact eliminated any serious issues with working capital.
RESULT: There were no issues with working capital and liquidity.
Difficulties, lessons, mistakes, acquired qualities:
The first month of work was difficult by the fact that, along with an intense schedule at work, I was getting used living in new country and climate, I had to settle the visa formalities, search for housing, purchase furniture, household goods and home appliances for the rented apartment, to prepare an apartment for a family arrival (in UAE flats are rented empty). Finally I coped with all this.
Due to multi culture personnel of the plant and the lack of practice in such an environment, I had to intensively learn style of communication with employees of different cultures. Thanks to my country mates I managed to quickly acclimate in this environment and to successfully establish working relationships with colleagues.
In the course of close cooperation with commercial department and during negotiations with our partners from different countries I acquired commercial work skills.
Finance Controller, Finance Manager, Head of planning and budgeting department, Specialist of finance department, Finance manager of control and analysis, Economist of finance department скрыть