Lead - Capex Finance

DivisionFinanceDepartmentOperations FinanceSub Department 1Capex FinanceJob PurposeResponsible for appropriate evaluation, approval (upto INR 1 Cr) and recommendation of Capex proposals (above INR 1 Cr) to senior management and Global Capex Committee (comprising of management council member(s)) for approval of high value Capex proposals raised by all functions across the organization. The responsibility also includes budgeting, appropriate classification of capex proposals (sustenance, growth and compliance) and prioritization of proposals. In addition to this, also responsible for governance and control of capex function, partnering in audits and process improvements.Key Accountabilities (1/4)Capex Budgeting and MonitoringDecide on budget framework, roll out broad guidance on capex budgeting to all stakeholders with timeline in consultation with corporate FP&AReview capex budget received from Site Heads and categorize between sustenance, compliance and growthPropose final capex budget to senior leadership and then to the Board for approvalEnsure adherence to the Annual Capex budgets – identify gaps in budget vs actual (if any) and recommend further capex ask to management if necessaryNotifying management in cases of budget overspend vis a vis project status and taking alignment in IRMC with detailed justification.Review all MIS / reports related to the function – budget vs actual, CWIP, project on track, SLAs, etc.Key Accountabilities (2/4)Capex Evaluation – Review & Recommend for ApprovalReview all capex proposals >INR 50 Lacs , approve upto INR 1 Cr and recommend approval for proposals >INR 1 CrReview and recommend approval to capex committee high value capex proposals by looking at capex drivers like capacity gap (demand vs supply), compliance, sustenance, project linked, greenfield / brownfield and incorporating different aspects like NPV, Payback, future readiness, de-risking, etc.Drive robust financial models in conjunction with technical and Project team, run sensitivity analysis and other key ratios to aid decision making.Engage with BU Finance / BU Heads and Planning team to validate and confirm demand nos. for growth linked capexEvaluate capex proposals from taxation and accounting perspectiveRecommend deferral / cancellation of capex proposals if it does not fit the required criteria or justification for approvalKey Accountabilities (3/4)Controllership, Governance & Process ImprovementMonitor & review Budgetary CER vs. Expense CER and recommend approval with justification on deviationMonitor and report unbudgeted capex to management & seek justification for unbudgeted capex and report its impact on Cash Flow.Review budgeted cash flow based on capex proposals approved, PO raised and delivery timeline to aid in fund management (need basis)Timely review of CWIP and ensuring all the assets are appropriately utilized.Review project completion status & capitalize assets as per accounting policies & standardsEnsure continuous improvement around capex approval process through external benchmarking, stakeholders feedback, etc.Key Accountabilities (4/4)Audits, IFC & DOA AdherencePeriodic self-assessment of IFC framework – suggest changes with change in business needs.Provide appropriate support to internal/external auditor in timely and smooth conduct of audit.Partner in closing meetings with auditors and function leaders, ensure observations are understood and appropriate management comments with mitigating controls and timeline is provided.Ensure timely closure of all agreed actions post audit observations. Set-up mechanism for internal monthly review with all function leadersCustodian of DOA, ensure the same is implemented and changes are recommended as/when neededMajor ChallengesDealing with complexities, multiple stakeholders across Cipla, including function leaders, their respective team, and overseas colleagues to discuss on capex proposalsOvercome by:Conducting regular meeting by communicating the agenda well in advance and assigning responsibilities, regular monitoring of the action plan and follow ups providing timely reports/regular follow ups/in-person meetingPrioritization of tasks and smooth operations:Overcome by: Putting in extra hours and planningUnderstanding technical aspects on capex proposalsOvercome by:Regular interaction with technical team and understanding basic aspects, reading from online sources, etc.Key Interactions (1/2)InternalGCFO and CTO – on regular basis for driving capex more than 1 CrUnit Finance Team – As when needed while evaluating the proposal.Supply chain and Demand planning team – Regular basis for validatingBU Heads / BU Finance / Project Management– Need basis to discuss on future projectionsAll other functions – based on capex proposals received for approvalsKey Interactions (2/2)ExternalStatutory AuditorInternal AuditorConsultantDimensionsBudget: INR 2500 Crs+Reach across functions – all manufacturing sites (including subsidiaries), IPD, Quality, IT, Marketing, etc.Gross Block of Assets: INR 9500 CrsKey Decisions (1/2)DecisionsApproval of capex between INR 50 lacs to INR 1 CrKey Decisions (2/2)RecommendationsRecommending approval for Capex proposal of >INR 1 CrRecommend capex budget to management for final approvalRecommend Capex Committee (comprising of 1 MC member, BU Head and other members as suggested by GCFO) for Capex Approval > INR 25 Cr.Education QualificationQualified CA /CMA /MBARelevant Work Experience years of work experienceThorough knowledge of accounting principles and proceduresHands on manager who is willing to lead a team of professionals and guide the team to achieve desired results