Since last several years, the company was showing operational losses in their Income Tax returns filed; and was also paying Income Tax under the MAT route; hence it failed to avail any financing options.
Accounting and audit operations were outsourced to the promoter’s childhood friend, who failed to fulfil the company’s statutory compliances within the due dates. The company lacked proper cash flow planning, timely tax planning and other statutory compliances.
When Finamoat was approached, we started by deploying an in-house resource in their office to do their daily accounting and other compliances. Further, financial statements were finalized on a quarterly basis and steps were taken to ensure professional taxation and financial management.
We designed a Daily dashboard / MIS system – that was sent to the promoter at the end of every day.
Professional financial management and periodic timely compliances led to an improved perception of the company; within six months, Finamoat enabled the company to raise bank finance – cheaper, easier and for long term.