About the Customer
Al Hokair Fashion Retail is the largest fashion retailer in the Kingdom of Saudi Arabia, Middle East and North Africa, Central Asia and the Caucasus region with a footprint of 1,842 stores across 100 shopping malls in 13 countries. Since its foundation in 1990, the client has actively established its presence, with a gross leasable area of more than 530,000 square meters, a workforce of over 9,000 employees, and a portfolio of 95 top international brands.
Challenges
- Managing multiple stores with a single lease agreement
- Lack of visibility on landlord payments
- Manual intervention for legal compliances
- Operational challenges
- Lack of integration capabilities
Solution
- Aspire Systems proposed the iEstate Leasing Solution
- Integration with Oracle Fusion Financials
- Streamlined business processes
- iEstate - Real Estate Solution deployed on Oracle OCI Technology
Results
- iEstate and OCI integration improved quality and accessibility to lease agreement data with generation of amortization schedules using Daily Compounding Interest and interest/accruals. Reduction of reconciliation effort in terms of period closure activities
- Aspire’s solution automated IFRS 16 related journals such as lease capitalization, interest accruals, depreciations and lease modification adjustments which will help the finance team to get better insight on the balances.
- The client will reduce the effort and complexity involved in Open Lease Agreement transition to IFRS 16 by using iEstate migration capabilities.
