Treasury & Forex Advisory including Forex Risk Management

Services : Treasury & Forex Advisory including Forex Risk Management

The success of any business undertaking depends largely on its liquidity which comes from on time collections, right investments and right sources of funds. In many cases even trading on bonds currencies and derivatives can bring in additional liquidity. Treasury management deals with the ultimate target of increasing liquidity abating any financial or operational risk.

A business needs to choose its financial products in tune to its requirement commensurate with its volume of operation and assured revenue earnings. It is always not beneficial for an organisation to have in-house team of experts to analyse trends, socio-economic behaviour and draw up the requirement of the exact financial instrument. Hence, most of the time market trends are misinterpreted, requirements are not understood well and decisions on financial instruments are taken based on gut feel resulting is either gain sometimes and losses in most transactions.

Services Offered :

  1. Treasury Management Guidance
    • Assessment of existing liquidity of the organisation considering all seen and future risk to the maximum extent possible & known to client.
    • Define period of exposure and fund requirement based on expansion and diversification plans if any.
    • Revenue generation mechanism & analysis of shortcomings
    • Order to Receipt Cycle (OTR Cycle) and industry benchmarking
    • Assessment of bad debts not provided for in books
    • Cost of fund and industry benchmarking
    • Drawing up roadmap to increase liquidity
  2. Forex Advisory Services
    • Evaluation of existing Forex exposure and the underlying instruments
    • Import / Export forecast and foreign spend / earnings for 6 months to 1 year timeline
    • Suggesting alternate instrument which will save cost of fund
    • Educating in the procedure of handling financial instruments while dealing in Forex transactions.
  3. Forex Risk Management Services
    • Interest rate risk management for derivative deals
    • Foreign exchange risk management for external commercial borrowing (ECB)
    • Currency fluctuation risks for imports & exports
    • Currency conversions in case of foreign subsidiary
    • Contingent exposure risks
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