EBRD and EU supported company in improving financial reporting
Kaya – formerly Climate Service – is a small firm in Georgia. Its story is a testament that, for small businesses, time is one of the most valuable assets. The EBRD and the European Union worked with the company to introduce sound financial management practices.
By significantly shrinking the hours devoted to financial reporting, the company has been able to direct its attention to developing new products and services – some extremely timely in light of the coronavirus pandemic.
Reporting efficiency and growth
The word “kaya” means “cool” in Georgian slang. But behind the playful name lies a company which means serious business.
Kaya is an engineering firm specialising in mechanical, electrical and plumbing products and services for local companies. Kaya also manufactures spare parts such as cable trays, electrical panels and construction components, subtly substituting imported goods to expand its operation and market share.
With funding from the European Union, the EBRD worked with the company to fine-tune its financial management practices. This was particularly necessary since according to a new law in Georgia, SMEs are required to report their financial data consistent with the International Financial Reporting Standards (IFRS).
The benefits of IFRS are far-reaching. To name just two: data-driven decisions lead to better financial performance; and transparent, comparable and consistent statements are the way to attract local and foreign investment.
‘’We now have a clear understanding of our financial situation and how to manage it to move forward. Plus we have more time at hand that we direct to other aspects of our operations, such as introducing innovative techniques and manufacturing lines,’’ says Ilia Bachanadze, Chief Financial Officer.
Kaya also purchased additional welding equipment with support from Enterprise Georgia and now offers businesses additional services. In an effort to quickly respond to the spread of the novel coronavirus, the company manufactured a disinfection booth with the technical support of a local technology start-up, Edison Tech Solutions.
Contemplating the future
With the coronavirus pandemic spreading across countries and continents, SMEs around the world are coming up with smart solutions to contribute to safeguarding public health. One of them is Kaya’s disinfectant booth. Givi Beridze, CEO & Founder of Edison Tech Solutions, lights up when he talks about this new product:
‘’When entering the booth, you pass a sensor which sends signals to the compressors, then sprinklers spray out small disinfectant particles that are harmless to the eyes and skin. But your body is covered by the protective layer.’’
After undergoing the necessary certification by the national lab, it is already available at the leading maternity clinic in Tbilisi. The company foresees that more companies and institutions will soon come on board.
“We are happy to support local businesses in their efforts to prevent the spread of Covid-19. We plan to further advance the booth and make it more functional by integrating a thermal screening feature,” says Ilia.