Kagiso Tiso Holdings (KTH) is a black owned and managed investment holding company that was formed from the merger of Kagiso Trust Investments and Tiso Group, and has a gross asset value of over R14 billion.
KTH is required to comply with International Financial Reporting Standards (IFRS) and their financial statements include the consolidation of approximately 70 companies within the broader organization.
Project Summary: Historically at KTH, financial information was generated from the company’s accounting solution and then consolidated for statutory and management reporting purposes. These processes were required to ensure adherence to IFRS for both interim and yearend reporting while also including comparative information. KTH utilised a combination of spreadsheets and caseware for the consolidation and reporting of all the companies within the group, which was a challenging manual process.
As a means of researching a possible solution, KTH evaluated various products available on the market. KTH issued a request for proposals (RFP) and recommended that Synergy and IBM apply, based on previous work experience with other clients both in Africa and Asia.
Synergy worked closely with IBM to provide KTH with a robust, fully-inclusive offering. In order to provide the necessary compliance with all IFRS regulations and standards, as well as address the specific reporting requirements, the two teams focused on amalgamating the IBM Financial Close Management product (Cognos Disclosure Management), with IBM Cognos Controller. Sales and technical reps were continuously on hand to demonstrate how IBM’s scalable solution can include cluster reporting and other benefits, as required.
“…Sales and technical reps were continuously on hand to demonstrate how IBM’s scalable solution can include cluster reporting and other benefits, as required…”
Synergy was able to provide a holistic solution for KTH’s requirements.
The successful implementation of the IFRS reporting mechanism clearly demonstrates how IBM Cognos Controller and IBM Cognos CDM can empower users with flexible, online and easy-to-use reporting. The integrated solution had the capacity to replace the previous consolidation process with minimal disruption in achieving internal deadlines. It was able to address important requirements, such as the inclusion of journals, comparative data, reporting, group structure, data integrity and data accuracy.
KTH is now able to streamline and automate the consolidation and reporting processes with one easily integrated solution. This gives management the capacity to make more informed decisions and meet regulatory IFRS requirements.
Commenting on the process, KTH CFO, Frencel Gillion, said that since the adoption of Cognos and CDM, he has gained visibility, and a higher level of comfort with the level of accuracy of the numbers reflected in the group financial results. “I am now able to quickly review how the numbers from the system are made up, and where they came from.”
In addition, CDM has been a valuable time saver. “It takes a fraction of the time previously spent on the results presentation. My PA and I can easily amend the presentation format annually, as we see fit, which is important for a growing company such as KTH. The tool has given us the ability to present the results accurately, succinctly and with a look and feel that is aligned to our corporate identity. The overall quality of our financial statements has improved substantially since the introduction of Cognos and CDM,” Gillion explained.
Devan Slabbert, Group Financial Manager, KTH agreed. “We are now able to easily update company structure and consolidate on this new structure without IT involvement. The streamlined reporting process now allows the group to maintain one report pack and easily cascade this format down to all 70 companies in the group, ensuring a standard report look and feel. Roll-over has become a pleasant process. “What previously took us weeks, now takes us minutes, and we even have time for a cup of coffee,” he quipped.