Lead - Capex Finance

Division

Finance

Department

Operations Finance

Sub Department 1

Capex Finance

Job Purpose

Responsible 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 Monitoring

• Decide on budget framework, roll out broad guidance on capex budgeting to all stakeholders with timeline in consultation with corporate FP&A
• Review capex budget received from Site Heads and categorize between sustenance, compliance and growth
• Propose final capex budget to senior leadership and then to the Board for approval
• Ensure adherence to the Annual Capex budgets – identify gaps in budget vs actual (if any) and recommend further capex ask to management if necessary

• Notifying 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 Approval

• Review all capex proposals >INR 50 Lacs , approve upto INR 1 Cr and recommend approval for proposals >INR 1 Cr
• Review 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 capex
• Evaluate capex proposals from taxation and accounting perspective
• Recommend deferral / cancellation of capex proposals if it does not fit the required criteria or justification for approval

Key Accountabilities (3/4)

Controllership, Governance & Process Improvement

• Monitor & review Budgetary CER vs. Expense CER and recommend approval with justification on deviation

• Monitor 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 & standards
• Ensure continuous improvement around capex approval process through external benchmarking, stakeholders feedback, etc.

Key Accountabilities (4/4)

Audits, IFC & DOA Adherence

• Periodic 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 leaders
• Custodian of DOA, ensure the same is implemented and changes are recommended as/when needed

Major Challenges

• Dealing with complexities, multiple stakeholders across Cipla, including function leaders, their respective team, and overseas colleagues to discuss on capex proposals

Overcome 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 meeting

• Prioritization of tasks and smooth operations:

Overcome by: Putting in extra hours and planning

• Understanding technical aspects on capex proposals

Overcome by: Regular interaction with technical team and understanding basic aspects, reading from online sources, etc.

Key Interactions (1/2)

Internal

• GCFO and CTO – on regular basis for driving capex more than 1 Cr
• Unit Finance Team – As when needed while evaluating the proposal.
• Supply chain and Demand planning team – Regular basis for validating
• BU Heads / BU Finance / Project Management– Need basis to discuss on future projections
• All other functions – based on capex proposals received for approvals

Key Interactions (2/2)

External

• Statutory Auditor
• Internal Auditor
• Consultant

Dimensions

• Budget: INR  2500 Crs+
• Reach across functions – all manufacturing sites (including subsidiaries), IPD, Quality, IT, Marketing, etc.
• Gross Block of Assets: INR  9500 Crs

Key Decisions (1/2)

Decisions

Approval of capex between INR  50 lacs to INR  1 Cr

Key Decisions (2/2)

Recommendations

• Recommending approval for Capex proposal of >INR  1 Cr
• Recommend capex budget to management for final approval
• Recommend Capex Committee (comprising of 1 MC member, BU Head and other members as suggested by GCFO) for Capex Approval > INR 25 Cr. 

Education Qualification

Qualified CA /CMA /MBA 

Relevant Work Experience

• 10 - 15 years of work experience
• Thorough knowledge of accounting principles and procedures
• Hands on manager who is willing to lead a team of professionals and guide the team to achieve desired results