Leadership review
Lalrini Thavzeli
Chief Financial Officer · India
Highlights
42
Finance colleagues through five heads
₹8.9 crore annual finance-function expense
30 years
From precision-engineering accounts to CFO
Five continuous appointments beginning July 1996
28
OEM customers supplied by the company
620 employees; ₹246 crore FY 2026 company revenue
A letter from Lalrini Thavzeli
I want a financial number to retain the conditions that make it useful. A set started is not necessarily a set accepted. Two dollar amounts can fall in different months. Stock in our warehouse can belong to a customer. Those distinctions should shape the proposal before a favourable total makes the decision look finished.
The denominator in a cost sheet can look too ordinary to deserve a senior discussion. I learned otherwise when a production-start count travelled into a proposal as though it represented accepted output. The calculation was arithmetically correct for the count I had used. It was not answering the commercial question people believed it answered. That distinction has stayed with me through factory finance and into the CFO role: a number needs its unit, timing and conditions if it is to support a decision rather than simply make the page look complete.
Lalrini Thavzeli
Chief Financial Officer
Strategic priorities
01
02
03
04
Performance
Priority outcome 01
In 2018, as finance director, I prepared a component-pricing comparison using ₹24 crore of operating-planning spend and 600,000 production starts. The division produced ₹400 per start. In the proposal, I allowed that result to be read as the spend per accepted set. The corresponding accepted output was 480,000 sets, so the same planning amount divided by accepted output was ₹500. The distinction changed the commercial interpretation without changing the total spend. Arun Zevqeshi challenged the comparison during the operating review. The sales team wanted a prompt price decision, and my first response was to defend the calculation because its arithmetic was correct. Arun's point was that the count described starts rather than accepted sets. Technical colleagues would not change acceptance requirements to support the preferred unit figure. Their position required finance to correct its question instead of asking the factory to make the denominator more convenient. I withdrew the comparison before price approval and rebuilt the proposal with both quantities identified. The 480,000 accepted sets represented eighty per cent of the 600,000 starts in that reviewed account. This was an all-in operating-planning comparison, not a claim that every element of the ₹24 crore should be capitalised into statutory inventory. The appropriate financial-reporting treatment remained a separate assessment. We also supported a distinct ₹3.2 crore process programme. Its funding was additional; it did not erase the original spend or prove that yield had already improved. Technical leaders retained acceptance responsibility. The case does not attach a later reduction in rejected work or a clinical outcome to the programme without evidence. My error was to let a valid calculation carry an invalid label in a decision paper. I changed how the finance team checked the origin and meaning of a denominator before comparing costs. The lesson was not that a start count is useless. It was that an answer should remain attached to the unit it actually describes, especially when the next person will use it to make a commercial commitment.
Priority outcome 02
Our 2022 treasury schedule included US$4 million of receipts in June and US$2.5 million of supplier payments in December. The annual summary showed a US$1.5 million net receipt. That arithmetic was correct, but it did not describe how the cash would be available through the year. The six-month separation mattered before another operating proposal treated the June receipt as fully available for immediate use. Commercial colleagues saw a substantial incoming amount and wanted flexibility around it. Finance colleagues could also point to the annual net figure as evidence that the currency was broadly covered. I asked the team to place the actual expected dates beside the amounts. The issue was not a forecast of where the exchange rate would move; it was whether the enterprise had a plan for the December obligation after deciding what to do with the June cash. We took a dated plan through the appropriate treasury approval. Once the June receipt arrived, US$2.5 million was retained for the December payment and US$1.5 million remained outside that specific reservation, subject to the rest of the company's commitments. The payment was subsequently made from the retained amount. The decision limited the alternative uses proposed for the proceeds in the interval. This case asserts no derivative transaction, exchange-rate gain or universal rule that all same-currency receipts should be held. The trade-off included reduced flexibility, while the actual company's broader treasury position still required management. The reserved amount was not an additional expense or a second payment; it was cash kept for an identified obligation. The annual net did not become wrong simply because it was insufficient for the timing question. I wanted our financial discussion to carry the calendar with the currency. A CFO can provide an accurate annual total that still leaves colleagues with a mistaken impression about when resources are usable. The better account made the sequence explicit and allowed the CEO to assess the other proposals with a clearer understanding of what would remain committed until December.
Priority outcome 03
A 2023 facility review began with a warehouse report showing ₹14 crore of stock physically held. The draft borrowing-base schedule applied the facility's 70% advance rate to that full amount and showed ₹9.8 crore. The operating report was a custody record, however, and included ₹5 crore of customer-owned material. The invented facility's agreed terms admitted eligible company-owned stock, not every item stored on our premises. The finance team initially wanted to use the warehouse total because it reconciled to the physical record. Operations correctly noted that its custody responsibility covered both categories. Neither point established that the customer property belonged in this financing calculation. I asked for the ownership conditions to be reconciled with the actual facility terms before the submission was approved. The relationship between the operating record and the financing question needed to be explicit. After excluding the ₹5 crore of customer property, the eligible company-owned amount for this reviewed schedule was ₹9 crore. Seventy per cent produced ₹6.3 crore, reducing the draft headroom by ₹3.5 crore. We corrected the submission before borrowing against it and revised the internal funding plan to reflect the smaller amount. No loan had been drawn on the incorrect figure, and the correction was not a default or a write-off of customer-owned material. The commercial consequence was less apparent facility capacity than colleagues had expected. I did not describe the difference as a loss caused by a restrictive finance team. The earlier figure had assumed an entitlement the particular contract did not provide. Other commitments had to be assessed against the corrected headroom rather than a warehouse total that answered a different question. We separated custody categories in the review supporting future submissions. This example does not state a universal advance rate or imply that all owned inventory qualifies for every lender. It concerns a specific fictional agreement. My responsibility was to connect the right to use an asset as a financing basis with the source record, so the resource presented to management had the meaning its label suggested.
Priority outcome 04
In 2024 a supplier arrangement offered ₹40 per net accepted purchased unit if annual qualifying volume reached at least 500,000 units. Our initial plan used 520,000 ordered units and assumed a ₹2.08 crore rebate. It had not carried through the contract's treatment of returns. Thirty thousand units were returned, leaving 490,000 net accepted purchases and the threshold unmet. Procurement colleagues argued that the business had placed the original order and should retain the commercial benefit it had expected. The supplier pointed to the agreed net-acceptance condition. I asked the team to distinguish an argument we might make in negotiation from an amount the existing terms supported. The cost plan could not continue to treat the full ₹2.08 crore as earned while that condition remained unsatisfied. We removed the expected rebate from the reviewed plan and explained the deterioration against the earlier assumption. The case does not prescribe the accounting entry for every rebate arrangement; the financial-reporting assessment followed the applicable facts and requirements. The specific commercial conclusion was that this year's contractual threshold had not been reached. We did not invent an entitlement by treating gross orders as net accepted purchases. For the following year, we negotiated a flat ₹18 per net accepted unit without that volume threshold. The smaller per-unit amount reduced dependence on a single threshold but was not a promise of a larger total benefit. Future volumes and returns would still determine the realised amount. We kept the current-year expectation that had failed separate from the next agreement, rather than presenting the new term as a recovery of the entire previous assumption. The experience changed how I wanted conditional reductions represented in a plan. A favourable amount should remain attached to the condition that supports it, including the point at which that condition can be checked. The CFO's task is not to make procurement less ambitious. It is to ensure that the financial account distinguishes an agreed benefit, an expected benefit and a negotiation we have not yet won.
Priority outcome 05
In 2025 our management-planning account allocated ₹8 crore of shared factory support equally between precision housings and mounting subassemblies. Each group therefore carried ₹4 crore. The equal split was simple to explain, but operating review showed that the defined machine-hour driver for that particular support account was divided seventy-five per cent to housings and twenty-five per cent to subassemblies. The housing team objected to a change that would make its planned contribution appear weaker. The subassembly team wanted its apparent burden reduced. Arun and I asked whether the proposed driver represented the support activity being analysed and what decision the allocation was meant to inform. We did not assume that a measured hour was the right driver for every shared cost, or that one revised allocation could settle the full economics of either group. For the specified planning account, we adopted the reviewed driver: ₹6 crore to precision housings and ₹2 crore to mounting subassemblies. The total remained ₹8 crore. The change moved ₹2 crore between the groups; it did not save the company ₹2 crore or generate a new cash inflow. The figures were used for management interpretation, not presented as a statutory inventory policy or a tax transfer-pricing conclusion. We revisited the product-group discussion with the changed basis visible. Managers could challenge the driver and the implications without claiming that the underlying factory expense had disappeared. Finance kept the prior equal split available for comparison so the movement in reported group economics was not mistaken for an operating improvement or deterioration of the same amount. The consequence was a less comfortable but more explicit planning conversation. A CFO has to distinguish a change in how cost is understood from a change in the cost itself. Both can matter to a decision, but they do different work. I wanted the board's subsequent account to preserve that distinction rather than borrowing the appearance of a margin improvement from an internal transfer between two columns.
Stakeholder voices
Lalrini made the dates and reserved amount visible before we relied on a June receipt for another commitment. She explained the flexibility we were giving up without presenting the plan as an exchange-rate success.
When I challenged the output basis in her proposal, Lalrini reopened the interpretation. She did not ask technical colleagues to change acceptance criteria to preserve the cost figure finance had first presented.
Outlook
My cost proposal used a valid start count to answer a question about accepted output. Correct arithmetic did not repair the mismatch.
Read the essayAn annual net receipt did not explain how June proceeds would remain available for a December obligation.
Read the essayA custody report became a misleading borrowing base when the ownership conditions behind the stock were omitted.
Read the essayAn invitation
I am considering a first outside board role where manufacturing economics and contractual resource constraints matter. I have no statutory directorship. This invented career includes March 2026 IICA registration and a September assessment pass, with no exemption. Twenty-six provisional days, employer consent and a review of trust and commercial relationships would precede any appointment.
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