Finrex Treasury Advisors LLP - Expert Financial Consulting and Treasury Management
Finrex Treasury Advisors LLP is a leading FX consulting and treasury management company with a dedicated team of experienced professionals offering comprehensive treasury services, software solutions, and expert consulting in forex risk management. With decades of combined experience, they cater to a wide range of corporate clients in India and provide specialized services in banking, forex advisory, audit, and regulatory compliance. Partnering with Finrex ensures effective treasury management and strategic financial solutions for businesses dealing with international trade and currency risks.
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Finrex Treasury Advisors LLP Corporate Presentation
Finrex Profile FX Consulting and Treasury Management Company, incorporated in 2014. We recognize the currency risk of companies dealing with international business, Exporter, Importer... More than 600 corporates spread pan India from various industries Our Core Team has over 16 decades of experience in the treasury and banking field. A total team of 22 people. FINREX Profile Core Team Consultant Services Software
MANAGING COMMITTEE Aspy Bharucha, President Bank of Baroda for almost 26 years, was in-charge of FX Department & FX Treasury Dealing room Anilkumar Bhansali, Head of Treasury Chief Dealer with an State bank of Indore, 36 years experience of Banking and Foreign Exchange Chintan Master, Partner 12 years of experience in corporate on forex risk management and Strategy consulting, management study from NMIMS Himesh Shah, Partner FX Dealer with ICICI bank, 15 years of experience in currency markets, FRM certificate from GARP USA Finrex Profile Core Team Consultant Services Software
SENIOR CONSULTANTS Chandrasekhar C. Head of Strategic Treasury Service, comes with definitive experience of 40 years in treasury risk management Nijay Gupta Principal Consultant, experience of 40 years as Treasury Head for Forex & Money Markets at the Antwerp Diamond Bank, Bank Muscat, Abu Dhabi Bank, working as FEMA Consultant V Thiyagrajan Head of Treasury at RIL for more than 20 years, senior Dealer at Syndicate Bank Sudhakar Kasture 40 years rich as a EXIM Consultant, an Advisor/ Consultant to many big companies like HUL, Godrej Industries Ltd. Welspun Group, Vedanta Group,etc. Finrex Profile Core Team Consultant Services Software
TREASURY SERVICES Forex Advisory, forex advisor, forex analyst, forex expert in India Banking Transaction Audit bank Liasoning Screenshot FX & Treasury Advisory Banking Audit Bank Liasioning Untitled.png About DeAngelo amp; Company LLC | Certified Public Accountants Why Is Help Desk Software Useful? - Financesonline.com EXIM/FEMA Regulatory Helpdesk ECB Pricing Hedge Accounting Trade Finance 9/30/2024 Finrex Profile Core Team Consultant Services Softwares 5
TREASURY SOFTWARE FinWatch Screenshot FINSTATION FINICON FINWATCH FINREX EXPOSURE MANAGEMENT EXPORT & IMPORT METAL WATCH 9/30/2024 Finrex Profile Core Team Consultant Service Software 6
FinStation: Wed-based Forex Portal Why Live FX rate systems? Helps you to negotiate with your banker while booking the rates Smoothen day to day Treasury functions & tools FinStation: 28 features covering all aspects of Forex OTC Spot, Cash Spot, Forward Rates, Annualized Premium% Broken Date: Forward Calculator/ Fixed date Calculator Indices: Sensex, Nifty, Dollar Index Reference Rates: SOFR rate, RBI Ref rate, custom rates, MCLR rate and interest rates Early Utilization & Cancellation Calculator: Swap points & gain and loss Historical Data: Spot rate, RBI Ref rate, custom rate Analytic Tools: PCFC Vs EPC Calculator , Buyer credit vs CC loan, CC vs FCNR B loan, Bills discounting interest calculation and Buyer credit interest calculation RBI Notification: Circular and Master Direction Set alerts for target and Stop loss Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
FinStation: Wed-based Forex Portal Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Finrex Exposure Manager (FEM) A smart solution to handle Forex risk Real-time visibility of into hedge positions Easy to manage Forex exposure at one place for Exporters Online Cloud based Software: SAY NO TO EXCEL A user friendly decision making tool to protect benchmark costing Dashboard: Month-wise Exposure Summary Position: Hedged and unhedged position , Mark-to-Market position Outstanding Position: Forward Contracts P&L Calculations Gain and loss on Cancellation and utilization of forward contracts MIS Report: Order-wise, Bank-wise, Customer-wise, Currency-wise Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Finrex Exposure Manager (FEM) Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
BANKING AUDIT SERVICE Scrutinizing Bank Charges Bank Review Negotiation Gap Analysis Savings Reporting
Banking Transaction Audit Banking Transaction Audit Are you aware of Forex Transaction charges debited by your Bank? Are you aware of interbank margins charged by bank while converting your remittance? What is industry best practice as per your turnover? Do you always calculate interest rate arbitrage between various funding options? Well, if the answer to either of the above question is a No, then our Banking Audit service is a best suitable solution. We are proud of our USP service as we know the "tricks of trade How Do You Benefit Reduced banking charges. Lifetime savings by doing one time audit Know the actual cost of your banking transactions Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Settlement of International Trade in INR Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
CORRESPONDENT BANKS ACCOUNTS Permitted currencies for Payment (Trade/Investments) under FEMA Nostro Accounts: My account with the outside bank, OR Our foreign currency account with overseas banks Vostro Accounts: For the outside bank my account held with them, OR Overseas banks INR account with us LORO: Their account (any currency) with another bank ACU Dollar/Euro/JPY Account Sri Lanka Payment allowed in any Foreign Currency Now Special Vostro Account in Rupee to accommodate trade with Sanctioned/OFAC countries Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
How will the Rupee Based Trade Work? When countries import and export goods and services, they have to make payments in a foreign currency. Since the US Dollar is the world s reserve currency, most of these transactions are entered into US dollars. For example, if an Indian buyer enters into a transaction with a seller from Germany, the Indian buyer has to first convert his Rupees into US dollars. The seller will receive those dollars which will then be converted into Euros. This is where trade settlement in Rupees comes in instead of paying and receiving US dollars, the invoice will be made in Indian Rupees if the counterparty has a Special Vostro account in Rupee . Foreign banks will have to open Special Vostro accounts in Rupee in India, and whenever exports or imports take place, that account will be debited or credited. Indian importers will make payments in rupees, to be credited to the Vostro account of the correspondent bank of the partner country. Indian exporters will be paid the export proceeds in rupees from the balances in Spl Vostro A/c Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
RBI Circular Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR). Exchange Rate: Exchange rate between the currencies of the two trading partner countries may be market determined. Settlement: The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para 3 of this circular. Settlement of trade transactions with any country, AD bank in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. Indian importers undertaking imports through this mechanism shall make payment in INR which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller /supplier. Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country. Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
RBI Circular Documentation: The export / import undertaken and settled in this manner shall be subject to usual documentation and reporting requirements. Letter of Credit (LC) and other trade related documentation may be decided mutually between banks of the partner trading countries under the overall framework of Uniform Customs and Practice for Documentary Credits (UCPDC) and INCOTERMS. Exchange of messages in safe, secure, and efficient way may be agreed mutually between the banks of partner countries. Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Settlement of International Trade in INR The bank of a partner country may approach an AD bank in India for opening of Special INR VOSTRO account. The AD bank will seek approval from the Reserve Bank with details of the arrangement. AD bank maintaining the special Vostro Account shall ensure that the correspondent bank is not from a country or jurisdiction in FATF on High Risk & Non Co-operative Jurisdictions. However, this arrangement is done to accommodate Correspondent Bank of Sanctioned/OFAC countries. LC/Exchange of messages in safe, secure, and efficient way may be agreed mutually between the banks of partner countries as being done by Banks in Iran, Syria/Lebanon etc. Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
RBI Circular Advance against exports: Indian exporters may receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism. Before allowing any such receipt of advance payment against exports, Indian Banks shall ensure that available funds in these accounts are first used towards payment obligations arising out of already executed export orders / export payments in the pipeline. In order to ensure that the advance is released only as per the instructions of the overseas importer, the Indian bank maintaining the Special Vostro account of its correspondent bank shall, apart from usual due diligence measures, verify the claim of the exporter with the advice received from the correspondent bank before releasing the advance. Setting-off of export receivables: Set-off of export receivables against import payables in respect of the same overseas buyer and supplier with facility to make/receive payment of the balance of export receivables/import payables, if any, through the Rupee Payment Mechanism may be allowed, Bank Guarantee: Issue of Bank Guarantee for trade transactions, undertaken through this arrangement, is permitted subject to adherence to provisions of FEMA Notification No. 8, as amended from time to time and the provisions of Master Direction on Guarantees & Co- acceptances. Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
RBI Circular Use of Surplus Balance: The Rupee surplus balance held may be used for permissible capital and current account transactions in accordance with mutual agreement. The balance in Special Vostro Accounts can be used for: Payments for projects and investments. Export/Import advance flow management Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision. Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Why does the RBI want to settle payments in Rupees? Reduce India s dependency on US dollars. Trade with Sanctioned Countries Reduce Conversion expenses Reduce the risk of Foreign exchange Benefit the country in the long-term, this decision won t have a considerable short-term impact India runs a trade deficit, settling trades in rupees will also save dollar outflows Overcome the SWIFT payments system dependency Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Three issues deserve prominent attention International trade transactions to be settled in Indian rupee needs to be analysed from bilateral trade equilibrium to understand their potential scope and scale. For example, in 2021, India s exports to Russia were at $3.3 billion while its imports from Russia were at $6.6 billion. This means that international trade settlement in rupee can happen up to $3.3 billion where exports and imports are equal. Beyond this point, international trade settlement in rupee can get challenging. India s efforts to promote invoicing in Indian rupee and acceptance of exchange with various countries is a herculean task. In the prevailing global trade protectionism and geopolitical rivalries, each country wants to promote exports and reduce imports. It has another angle as well. Invoicing in Indian Rupee and not depending on US Dollar may upset India s relationship with the US. It may also have an indirect impact on services sector for which we are dependent on developed markets like the US and Europe. Depreciation in local currency and inflation put together add substantial burden, which may make imports unviable even if rupee is used as a currency of invoicing. In Turkey, the depreciation of the local currency against dollar is almost 93.53 per cent. In such a situation, do we expect Turkey to import more from India even if we decide to have exchange rate fixed with Turkey (Indian Rupee and Turkish Lira without bringing US Dollar in the picture)? Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Need more clarification? Payment of Incentives or Refund of Duties, Settlement of Claims, Discount, Commission, Third Party Payments, ECGC cover etc, Releasing Exporter/Importer responsibility under EDPMS/IDPMS EEFC A/c :Waiting for Export Proceeds or Advance payment till Importers pay for imports into India Finance to Exporters/Importers under this arrangement. What happens if US & its allies puts sanctions on India for making this arrangement as violation of sanction terms Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
What Initiatives has India taken for International Trade? Free Trade Agreements with countries to accept RUPEE FTA is a pact between two or more nations to reduce barriers to imports and exports among them. To promote rupee for international trade settlements Trade arrangement is an alternative payment mechanism to settle dues in Rupees instead of Dollars or Euros. Incentives need to be given to the parties (exporters/importers) to do settlement in INR Increase exports and imports so that rupee becomes a highly tradable currency Capital Account convertibility Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
WHICH COUNTRIES ARE LIKELY TO USE THE NEW MODEL? Countries under sanctions, mainly Russia and Iran African and South American countries and neighboring Sri Lanka - that have little access to hard currencies. The RBI has not however explicitly named countries for which new mechanism could be used. Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
Thank You..Questions? Finrex Treasury Advisors LLP 9167013618 | Landline: 022-26820634 | research@finrex.in | www.finrex.in | Follow us: @finrextreasury
