Chemical & Allied Industries

SLA, A/R & Billing Review: Fortune 500 Chemical Company

A Fortune 500 Chemical Company’s facilities department provided property related services to both internal and external customers based on defined SLAs. In October, 2004, the company’s accountants noted that the Accounts Receivable (A/R) over sixty days old had grown to an amount of over $200,000.00. Relevante professionals were asked to step in and review the entire A/R process of the department and reduce the outstanding A/R.

Relevante professionals first made a thorough review of the A/R and determined why it had grown, and also helped in collecting the A/R. By March of 2005, the A/R over sixty days old was reduced to under $10,000. Relevante’s professionals also designed a systematic process to collect and manage the SLA, billing & A/R processes on a permanent basis.

Inventory Reconciliation: Global Chemical Manufacturer

A large chemical manufacturer required assistance with the reconciliation of its inventory and accounts receivable modules in an ERP environment. The assignment required that Relevante’s professionals reconcile line by line all sales for a 5 month period ending December 2004.

Relevante’s professionals reviewed the entire sales data of the company to find numerous discrepancies between the physical stock and the consigned stock on various days of the review. This indicated severe control lapses within the organization which were immediately brought to the notice of the top management of the company.

Relevante’s professionals reconciled all related account balances and also drafted a procedure document for the reconciliations which has been adopted across the company.

Real Estate Analysis: Global Chemical Manufacturer

A large chemical multinational required an in depth analysis of its real estate holdings to generate greater return on its investments. The real estate holdings were spread across various geographies and were of various classifications including owned & used, leased, rented etc.

Relevante’s professionals did an in-depth analysis for the equitable valuation of the properties using various parameters like comparable property values, rents, maintenance costs, depreciation etc.

The analysis gave the management options and opportunities to buy/sell real estate or to re-negotiate lease terms. The analysis helped the management of the company to effectively use its real estate investments for generating greater revenues and thereby greater profits.

Sarbanes Oxley Compliance – Global Chemical Manufacturer

A multinational chemical giant required assistance with its Sarbanes Oxley Compliance. The assignment involved implement procedures to achieve auditable results in conjunction with Sarbanes-Oxley Section 404 Compliance.

Relevante’s professionals were involved in the review, preparation and documentation of the internal control templates and monthly account reconciliations for successful implementation of the control processes to be in line with the requirements as mandated by the Sarbanes-Oxley legislation.

Relevante’s professionals were involved with instructing and coordinating with the plant accounting staff and other functional groups, the ongoing procedures and monthly duties required to fully implementing Sarbanes-Oxley regulations.

Sarbanes Oxley Compliance – Global Abrasives Manufacturer

A large global abrasives manufacturer required assistance with its Sarbanes Oxley compliance efforts for all its plants in the Gulf Coast Region. The company required assistance with improvement of its internal control structure and put processes in place to monitor its compliance.

Relevante’s professionals were involved in assisting the SOX control activity owners of the company owners write up their control activities, identify their supporting evidence, and plan out audit activities to prove their compliance with the SOX regulations.

Relevante’s professionals were also involved in bringing in greater controls in areas where controls were found to be weak as well as testing the processes to ensure that the controls were effectively in place.

A monitoring process was also put in place by Relevante’s professionals for effective compliance review in future.

Sarbanes Oxley Compliance – Global Adhesives Manufacturer

A large global adhesives manufacturer needed assistance with its Sarbanes Oxley compliance for its plant in Illinois, USA. The project required Relevante’s professionals to identify inefficiencies in the current procedures, document the same & recommend remedial procedures so as to be compliant with the Sarbanes Oxley regulations.

Relevante’s professionals needed to identify the work roles of each individual so as to be in concurrence with the work roles assigned to them in enterprise resource package system that the client was using. The analysis of the individual work roles provided various control inefficiencies to the Relevante team, which was highlighted to the plant management as well as the corporate management of the company.

Once the work roles of each individual were tied to the system roles, the Relevante team was again at hand to ensure compliance by conducting a review audit after the system stabilized.

Sarbanes Oxley Compliance – Global Packaging Manufacturer

A leading global packaging manufaturer was involved with the process of complying with the provisions of the Sarbanes Oxley Act. The compliance process required additional external resources so as to complete the process before the due date. As an independent consulting firm, Relevante’s professionals were ideally positioned to assist the client in its SOX compliance efforts. Relevante’s professionals were involved with examining the various accounting functions to help the company with documentation of existing internal control processes in place.

Relevante’s professionals were also involved in bringing in greater controls in areas where controls were found to be weak as well as testing the processes to ensure that the controls were effectively in place.

A monitoring process was also put in place by Relevante’s professionals for effective compliance review in future.

IFB Assistance – Fortune 500 Chemical Company

A multinational chemical company was in the process of outsourcing a part of its Human Resources processes to third party vendors. The chemical company required assistance in developing financial parameters for its “Invitation for Bid” documents and evaluations of bids received subsequently.

Relevante’s professionals worked in conjunction with the top management of the company to develop a comprehensive IFB document for the company. Relevante’s professionals were also extensively involved with evaluating the bids received by employing financial modeling techniques for allocation of various components of overheads that were mentioned in the bids so as to assist the company in its decision making process regarding the award of the bid.

Subsidiary Reporting: Global Semiconductor Manufacturer

A leading supplier of outsourced semiconductor interconnect services, needed assistance with the remodeling of its subsidiary financial reporting structure of over 20 subsidiaries for SEC reporting purposes. The client also needed assistance with the preparation of financial statements for each of the subsidiaries. Relevante’s professionals examined the current reporting structure for the subsidiaries and proposed an alternative structure for the parent company and the subsidiaries keeping in mind the SEC reporting provisions.

Relevante’s professionals also developed spreadsheets to produce income statements, balance sheets and cash flow statement for 3 years to reflect the changed reporting structure. The financial statements were populated and tested to the satisfaction of the client.

Our professionals ensured that the client had the integrated financial statements in order to prepare the required footnote for the current year 10-K and for future filings.

Sarbanes Oxley Compliance: Fortune 500 Chemical Company

An important strategic business unit of a Fortune 500 chemical company was confronted with the task of analyzing, improving & documenting its policies & procedures with regard to tracking & recording of its fixed assets numbering close to 100,000 units. The business unit had to make significant improvements to its policies & procedures with respect to its fixed asset movement types as well as use a better system to track and record all the fixed assets as they faced a lot of database issues which hampered the effective monitoring of the fixed assets.

Relevante’s professionals collaborated with the client’s internal team to create policies, enhance the effectiveness of the tracking mechanism & document the entire procedure in a completely new policy & procedure manual. They also kept in mind FASB/GAAP guidances while executing the assignment while also coordinating with various user groups like plant IT & plant finance. Relevante’s professionals also designed the various templates to capture information so as to ensure compliance with the Sarbanes Oxley legislation. They also analyzed various fixed asset systems and recommended a new & comprehensive fixed asset monitoring system to the client which was implemented within the strategic business unit. The internal controls with regard to fixed assets have been greatly strengthened and the client has moved closer to complying with the Sarbanes Oxley legislation.

Sarbanes Oxley Compliance – Global Chemical Manufacturer

A multinational chemical giant required assistance with its Sarbanes Oxley Compliance. The assignment involved implement procedures to achieve auditable results in conjunction with Sarbanes-Oxley Section 404 Compliance.

Relevante’s professionals were involved in the review, preparation and documentation of the internal control templates and monthly account reconciliations for successful implementation of the control processes to be in line with the requirements as mandated by the Sarbanes-Oxley legislation.

Relevante’s professionals were involved with instructing and coordinating with the plant accounting staff and other functional groups, the ongoing procedures and monthly duties required to fully implementing Sarbanes-Oxley regulations.

Divestiture – Financial Reporting: Fortune 500 Chemicals Company

A fortune 500 chemicals company was selling a $300 million segment of its business to a European company and, as part of the sale, had agreed to perform interim financial reporting and accounting services for the buyer during the extended transition period. The buyer was planning to port all financial and operational data for the purchased business segment to its own SAP system at the end of the four month transitions period and all required data would have to be “carved out” from the selling company’s system. The selling company had never performed these types of services before and realized that the task would be very time consuming with many unforeseen issues. It was decided that experienced outside financial services support would be necessary to fulfill the agreement. A Relevante professional with this type of divestiture and “carve-out” experience was called in to help. Expectations included coordinating and monitoring the efforts of a large team of internal client accounting professionals to ensure that day to day accounting transactions continued to be recorded properly for the segment. Relevante professional services also included preparation and issuance of monthly consolidated financial statements for the segment on schedule and as required by the buyer. Day to day accounting and analysis was performed via the client’s SAP R/3 enterprise accounting system. Monthly consolidated financial reporting required utilization of Hyperion Enterprise. Throughout the transition period, additional unusual issues were addressed, investigated, and resolved to assure a smooth transition for the buyer.

At the end of the transition period, the buyer experienced a smooth transition and successfully ported all required information to its own SAP system. All significant issues were resolved timely and to the satisfaction of both the buyer and selling company.

Inter-company Reconciliations for SOX Compliance – Global Chemical Manufacturer

A large chemical manufacturer required assistance with its Sarbanes Oxley Compliance efforts for all of their subsidiaries. The project required an audit of all inter-company relationships including reconciliation of inter-company accounts capturing trade and service transactions, royalties earned, mark-ups of expense/income, shares expense and loan interest.

Each region of relationships was handled by a different professional and there were 265 reconciliations audited. The Relevante consultant undertook the largest problem reconciliation totaling a variance of $20,000,000. This amount was reduced to $200 by the end of the project.

The Relevante consultant was additionally integral in implementing an internal control structure and in developing processes to monitor the compliance. Weekly reports were given to management to track the efficiency and progress of the project. Conclusively, the control process was automated and enabled the client/consultants to then effectively and efficiently track and review the inter-company relationships and activities.