A Maharashtra based industrial equipment supplier is in existence since last 30 years and are exporting their products since a decade now. They are having export turnover of around 15cr with document size of $ 25,000-50,000 each every week. They are having banking arrangements with the private bank and not having any fixed margin. Management is not cross checking the conversion rates from any source and want to explore if there is any opportunity loss to them in this respect.
Myforexeye Value Addition
To get the clarity on the hidden charges we came at a conclusion to do an audit of their transaction. In the audit of a previous transaction we found there were some hidden charges. To explore the extent of these hidden charges we decided to negotiate a transaction for them of $ 25,654 inward the bank RM was quoting with a 40 paisa margin and we negotiated at 17 paisa in the first transaction. We made a net saving of 25 paisa (INR 6413.5) in this transaction as the bank offered 68.48 to them the deal was negotiated at 68.23. We can bring our margin to 8-10 paisa going forward. Considering their forex exposure they can make a yearly saving of around INR 3-5 lakh through our intervention.
15 Jun 2019 05:00 PM
Case: A Delhi based leading export house engaged in the manufacturing and exporting of garments. The company has export receivables of around USD 100k – 150k each month. The company had an inward remittance of USD 15,000 recently for which the owner
01 Jun 2019 03:38 PM
A Surat based client engaged in manufacturing and wholesaling of a wide range of polyester yarn. The company exports products to Turkey, Jordan, Gulf Regions and has foreign currency receivables in the U.S. dollar. The client had recently subscribed
04 May 2019 06:18 PM
A fastener and machine components’ manufacturer with exports mainly in Europe and the U.S. Client had to book EURINR export forward for EUR 2,30,000 with the bank. The client did not have a direct access to his bank’s Treasury and the forward contrac
20 Apr 2019 04:05 PM
A Mumbai based chemical solvent importer regularly borrows funds in foreign currency backed by LC under Supplier’s credit route. The payments are made at sight to the beneficiary by the overseas lender which extends trade credit to the client for 90
06 Apr 2019 05:43 PM
A New Delhi based importer and distributor of Engineering plastics with an annual turnover of INR 1000+ crores. The company imports plastic resin from
22 Mar 2019 05:18 PM
Client is an exporter of medical equipments based in Hyderabad with exports worth INR 250 crores annually with exposures in USD and EUR. Client was de