The performance improvement services provided by Practus assisted SolarNest in ensuring better utilization of resources and increasing the forecasting frequency to monthly, which was earlier an annual exercise.
|Client Name||Industry||Ownership||Management||No. of Employees||Size||Project Duration|
|SolarNest||Utilities||MNC||Professional||~500||$35 million||2 months|
About The Company
SolarNest is a Leading transformative energy company. It develops and constructs solar photovoltaic power plants for applications including utility-scale, rooftop, and autonomous power production. Its footprints of clean energy projects span nine countries in the MENA region. SolarNest has installed more than 17,000 solar systems and has the largest portfolio of solar rooftops in the GCC.
- Practus was brought in to create a dynamic scenario-based iterative forecasting model which was to include:
- Next 5 years’ financials as a monthly and quarterly model of the global business of SolarNest.
- Build-in control mechanism with a check of checks to ensure that the calculations are correct, and results are reliable, accurate, complete, and consistent with the assumptions contained within the model.
- Put in place a single assumption sheet to ensure that the assumptions are consistent with and agree with the supporting information of the various projects.
- Output to provide profit and loss, cash flow and balance sheet projections and key financial ratios (ROCE, working capital analysis and ‘Peak Cash Flow’ analysis and investors’ returns for the project).
- Practus did a detailed review of the ratios and confirmed that the stated definitions of these are correctly interpreted in the model’s formulas.
- Model to includes parameters for current local tax legislation; ensure that the tax treatment in the model is consistent with the accounting treatment in the model.
- Possibility of different reporting parameters and formats as required, which summarize and portrays all necessary requirements.
- Regular weekly calls and tracker to help project coordination, red flags, and progress on track and under control.
- Approach document and MOM post the detailed interactions to clearly state the requirements and understanding of the processes. Clarity on the scope actions and manage any expectation gaps.
- Quarterly files were shared to make sure that the client was aware of the progress and that we were heading in the right direction.
- The Model assisted in increasing the forecasting frequency to monthly, which was earlier an annual exercise.
- Better decision making capability as a result of more accurate forecasting and regular reviews for business heads.
- Ensured better utilization of resources and capital by revealing the areas of weaknesses in fund flow/capital requirements and providing necessary information for resolution.