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BW Businessworld

How We Did It

A rigorous and stringent evaluation on three parameters — quantitative analysis, market survey and jury deliberations— helped arrive at the winners

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The second BW Businessworld-Yes Bank Best CFO Award winners have been arrived at through a rigorous three-stage evaluation process that included quantitative analysis, a primary survey among the various stakeholders, and a high-profile jury assessment of shortlisted candidates.

In the first phase, a quantitative analysis was conducted on the top-500 companies of the BW 1,000 list (2016 edition). The BW 1,000 is ranked on the basis of income plus assets. Top 500 companies by market-cap were also taken into consideration. The shortlisted companies were then grouped as: large companies (FY16 net sales>Rs 3,000 crore); mid-size companies (FY16 net sales
Analyses of company financials were done on data in the Capitaline database on three parameters: Sustained Value Generation, Leverage Management, and Liquidity Management.

In Sustained Value Generation, the data was crunched on parameters such as market value to book value, change in market capitalisation, return on equity, and return on capital employed, among others. This parameter carried a 40 per cent weighting.

In Leverage Management, the ability to manage debt was considered, and factors such as net debt to Ebdita, net debt to Ebdita reduction, debt to networth and debt to networth reduction were examined. It carried a 40 per cent weighting.

In Liquidity Management, factors such as current ratio and working-capital cycle were weighed, and carried a 20 per cent weighting.

In the first phase, of 500 companies, 155 made the cut on these parameters. To factor in sector-wise differences and characteristics, a peer-set comparison was conducted and the top performers from each sector were shortlisted for the next phase of evaluation. In M&As, from the base set companies that completed M&As in FY16 were considered. For the Woman CFO category, the consideration set was extended to the BW 1,000 companies.

In the second phase of evaluation, Ipsos, the knowledge partner for the awards, carried out a survey administered to qualified chartered accountants, brokers and fund managers. The phase saw 40 companies shortlisted across various categories.

In the third phase of the evaluation, an eminent jury comprising illustrious names from India Inc. such as Naresh Thakkar of ICRA; Joe Phelan of WBSCD, Rajesh Mokashi of CARE Ratings, Ajai Kumar of Yes Bank and Siddharth Shah of Khaitan & Co, among others came together and combed through the analysis to arrive at the final list of winners.

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