Consolidation software for Indian groups with overseas subsidiaries
Finconsol is consolidation software for an Indian parent company and its subsidiaries at home and abroad. It connects to Zoho Books directly, takes a monthly trial balance from companies on any other system, translates dollars, dirhams, pounds and Singapore dollars into one group currency, and removes intercompany balances.
Kaveri group: five companies, one reporting currency
Group reports in INRKaveri Industries Pvt Ltd in India reports in rupees and owns four subsidiaries: Kaveri Inc. in the US on QuickBooks (100 percent), Kaveri FZE in the UAE on Zoho Books (100 percent), Kaveri UK Ltd in the UK on Xero (75 percent) and Kaveri Pte. Ltd. in Singapore on Zoho Books (100 percent). Each subsidiary is translated into INR.
- 100%Kaveri Inc. United States, USD
translated into INR - 100%Kaveri FZE UAE, AED translated into INR
- 75%Kaveri UK Ltd United Kingdom, GBP
Xero 25% minority interest translated into INR - 100%Kaveri Pte. Ltd. Singapore, SGD translated into INR
The Pune team chases four countries every month-end
An Indian company that grew abroad usually has the same shape: a parent in India, a Private Limited or two for domestic businesses, and subsidiaries in the US, the UAE, the UK or Singapore. The overseas teams close in their own time zones and send what they have.
The group's finance team then has to turn four sets of books into one set of group accounts, usually in rupees, before the promoters or investors meet.
- Files arrive in different shapes. A trial balance from New York does not look like one from Dubai.
- Rates every month. Dollar, dirham, pound and Singapore dollar, each needing a closing rate and an average rate.
- Fees and loans between group companies. The parent charges overseas subsidiaries and lends to them, and both sides show up in the group.
- Part-owned companies. A joint venture abroad or a subsidiary with a local partner needs minority interest.
How groups do it today
Most Indian groups collect trial balances by email and combine them in a workbook. The workbook belongs to one person, and it is rebuilt each month.
| Workbook | Finconsol | |
|---|---|---|
| Domestic companies on Zoho Books | Exported company by company | Connected directly and refreshed every night |
| Overseas companies | Emailed files in different layouts | One template; every row checked on upload |
| Rates | Looked up and typed each month | Suggested from published rates; you can type over them |
| Fees and loans between companies | Matched by hand | Compared pair by pair and eliminated |
| What changed | Nobody can say | Locked months and a change log |
How Finconsol handles an Indian group
Domestic companies on Zoho Books
Connect each organization once, read-only. Organizations on the India data centre and on other Zoho data centres can sit in the same group.
Overseas companies by trial balance
A subsidiary on Xero, QuickBooks, Tally or any other package uploads its month-end trial balance in an Excel or CSV template. The upload is checked before it is used.
One chart for the group
Every company's accounts are mapped once to the group chart. If someone adds a new account, that month stops and the account is named until it is mapped.
Translate into the group currency
The group reports in one currency, which for many Indian parents is the rupee. Closing rates apply to the balance sheet, average rates to profit and loss and historical rates to equity, with the translation reserve calculated for you.
Remove intercompany, then lock
Fees, loans and investments between the parent and its subsidiaries are compared and eliminated. Each entry is kept in Finconsol, and the month is locked.
What you get
- Group statements: balance sheet, profit and loss, cash flow and fund flow in the group currency, with comparisons to the previous period and the same period last year.
- A consolidation worksheet with a column per company, the adjustments and the group total.
- Minority interest for partly owned subsidiaries.
- Budget against actual per company and for the group.
- Board packs refreshed with the month, then locked.
- Excel and PDF export of exactly what is on screen.
A subsidiary that keeps its books in pounds, dollars or dirhams is translated into the group's currency. Overseas companies on Zoho Books connect directly too.
Connects to Zoho Books. Works with Xero, QuickBooks, or any system that exports a trial balance.
Good to know
- Zoho Books connects directly. Every other system, including Xero and QuickBooks, joins by trial balance upload today; direct Xero and QuickBooks connections are coming soon.
- Nothing is written back to your books. Eliminations and adjustments are entries in Finconsol.
- Most groups are live in a day, and past months can be loaded once.
Questions
Can an Indian parent company consolidate its overseas subsidiaries in rupees?
Does Finconsol work with Zoho Books?
Our overseas subsidiaries are not on Zoho Books. Can they still be included?
How are exchange rates chosen?
How do we remove management fees and loans between the Indian parent and its subsidiaries?
Can we handle subsidiaries that are not wholly owned?
Who builds Finconsol?
See your group in one picture
Thirty minutes, on a group shaped like yours.