Finrex

Better Analytics, Smart Solution

We constantly strive to
provide you with
a phenomenal strategy

Finrex Treasury Advisors is a treasury and foreign exchange consulting company. We recognise your
business risks while dealing with foreign currencies and provide you with optimum results. We constantly
strive to provide you with a phenomenal strategy, understanding your company's risk appetite, and
provide you the perfect solution for the identified need-gaps in your company's financial model.

At Finrex, we follow a step-by-step methodology to ensure hedging at minimum risks for your company.
Our USP lies in process based consulting which starts with Treasury Audit that intends to understand your
existing banking structure and various associated charges that your business pays for. We add
tremendous value by providing a comprehensive risk management policy which ultimately aims to meet
business objectives efficiently.

Finrex has adopted eminent international concepts in the Indian context. Our experts are well versed
with the fluctuating foreign exchange and interest rate markets and can assist you in your
day to day operations. With Finrex, you can look forward to receiving unbiased and independent view
that benefits your organisation.
Market Research & Risk Advisory Services

We brief our clients regularly on market developments and tender advice on hedging open
positions. We adopt a portfolio approach so as to monitor the risk in transactions in entirety.
Our decision support system is comprehensive and we act us virtual outsourced treasury for the
client, with savings in terms of time and manpower.

Our market views are based on in-depth study of domestic and global markets. Our information
system will keep the clients abreast of market developments and will prepare them for event
related risks. We also brief clients from time to time on market products, and we believe that
knowledge enhancement is an essential requirement for improving treasury performance.

SME units who cannot afford to have a dedicated treasury team will particularly benefit from
our advisory services, as their decision making process becomes so much simpler.

FX Risk Management Policy

We prepare structured FX Risk Management Policy for approval of the Board, keeping in view specific
requirements of the client company.

A FX Risk Management Policy would ideally have the following components:

Target Rate ( to be protected by treasury) Identify

Exposures
Hedging Strategy Formulate
Currency Risk
Monitoring Risks in Open Position Management
Evaluate Policy
Risk Limits Results
& Adjust The Foreign
Permitted Hedging instruments Exchange
Hedging
Exposure Limits Process

Documentation Execute
Hedging
Determine Budget
Rates &
Strategy
Hedge Accounting, and Formulate
Goals

Hedging
Regulatory Compliance Strategy

Formulation of Policy will be preceded by detailed discussions with senior executives in Finance and
Functional departments.
Liability Management

Liability Management services are useful to companies with medium and long term exposure to currency
and interest rate risks. Companies who avail funding in foreign currency under ECB, FCCB, global bond
issues as also under buyer credit and supplier credit are highly vulnerable to unpredictable changes in
exchange rates and interest rates. The Liability Management services would provide for

Structured risk management solutions using swaps and options

Comparative pricing of the hedge instruments and
Accounting guidance to insulate P&L from valuation losses

The services would also include provision of a documented risk management policy.

Treasury Risk Audit Review of FX Operations

Treasury Risk Audit is intended to assess

How efficiently the risks are managed

How the risk profile is built and reported to the Management
How the overall business is impacted by treasury operations

The Risk Audit involves a review of treasury operations in the area of foreign exchange and fund
management, reporting systems and compliance with regulatory requirements. The Audit would validate
treasury systems, examine pricing efficiency, identify gaps in best management practices and suggest
measures for improvement. The audit may also extend to investment business and overseas operations,
where required.

Treasury Risk Audit will also be useful to companies to understand pricing of spot, forward and option
contracts and negotiate with banks for finer pricing, thereby adding to cost savings.

Treasury Risk Audit is an essential pre-requisite for companies in the context of (a) implementing critical
enterprise risk management processes (b) major investment decisions (e g acquisitions and mergers) and
(c) periodical assessment of treasury performance.
Hedge Accounting

Companies that take advantage of derivatives for hedging their currency, commodity and interest rate
risks should also consider the impact of periodical MTM valuations on their financial statements.

Complying with hedge accounting under Ind AS 109 is obligatory for companies with net worth of Rs. 500
cr and above w e f f y 2016-17. Smaller companies are also encouraged to adopt AS 30 / Ind As 109
optionally, in order to ensure that their P&L is not adversely impacted by valuation losses.

Hedge Accounting services would provide for accounting guidance and advice on fair value measurement
of derivatives with underlying exposures. The services would also include assistance in meeting full
disclosure requirement under Companies Act / as required by RBI and ICAI from time to time.
Implementation and Guidelines on AS30/IND AS 109
/IFRS
Preparation of hedge document, fair valuation and
effectiveness of Hedge
Disclosure Guidelines as per Company act, RBI, GAAP,
IFRS
Education and support training on Hedge accounting
Answering questions raised by auditors or regulators.
Hedge accounting solutions and support with periodic
reviews

Corporate Training

Knowledge of foreign exchange and market products is essential for treasury staff as FX markets are
sophisticated and are constantly evolving. An appreciation of role of treasury is also important for
functional departments as, very often, policy implementation is affected owing to information blocks.
The training will generally include
Foreign exchange quotes & FX arithmetic, Treasury concepts, Trade Finance
Forwards & Option products, Use of derivatives in risk management
Liability Management currency & interest rate swaps and alternate products, and
Hedge accounting
We prefer to offer the training on site for one or two days to suit the convenience of client companies.
For larger companies we suggest that Training in FX & Treasury be included in their annual conferences /
off-site meetings, which will be highly economic, as compared to deputing individual members to training
courses.
Treasury Software

Finrex is a provider of integrated SAAS (Software-as-a-Service solutions) for Treasury and Risk
Management of the companies. With our award winning software, the company will save on cost as well
as man-hour and transform their treasury and risk management to the advance levels.

A SaaS deployment model helps companies lower their Total Cost of Ownership
Lack of upfront hardware investment lowers overall IT and infrastructure costs.
Eliminating the need to have IT staff supporting the solution.
Capturing Forex exposure from all departments in one place:
-Export, Import, Foreign currency loan, Banks limits
Capturing MTM on your FX exposure and MIS reports through this software
- Orderwise, Bank wise, Customer wise, Currency wise, Product wise etc.
Hedged position /ratio
A dynamic Scenario Analysis of currency movement
Stop Loss/ Target Alerts for Protection of Benchmark
Effortless Integration of with ERP/SAP

Structured Trade Finance Solutions

We have tie ups with more than 50 overseas banks, whereby we can offer competitive quotes for Buyers
Credit / Suppliers Credit in all major currencies.

We can also suggest ways and means to save on LC costs / costs of rollover, and effective hedge
mechanism to lock into interest arbitrage, without losing on exchange rate.
Our services also extend to post-shipment finance where the clients can finance their receivables in most
efficient manner.

Our Strategic Advisory services further extend to debt restructuring, ALM, investment and cash
management for large companies wherever there is a requirement.
 Finrex

FINREX TREASURY ADVISORS

209, Shyam Kamal, Tejpal Road, Vile Parle East, Mumbai 67
Board line : +9122- 26122369 | Email : info@finrex.in | www.finrex.in