May 01 2018

Tech Company – Transaction Process Outsourcing

CASE

A Pune based Tech company having exposure of around 30-35 cr is having banking arrangements with two private sector banks. They have monthly payments in both the banks, not having fix margin arrangements with the bank. They were having exposure in both USD and Euro, used to take the forex rates from branch.

Myforexeye Value Addition

The management is focused on the regular business operations of the company, finance team looks into banking aspect and managing forex transactions of the company. In a detailed meeting we understood they are having payments twice-thrice every month of around 50-60 thousand each (Euro & dollar) in both the banks. As they are not having any fixed margins bank used to charge them 25 paisa margin, they were looking on online platforms to cross-verify the rates. In the very first transaction we negotiated on the margin with their branch bringing the margin lower by 5 paisa to 20 paisa effective further raised concern with the branch to fix a margin of 10-15 paisa. In the next transaction with the other bank of Euro 60,000 bank offered a rate of 81.87 and we negotiated the final rate as 81.60 with the bank. The net saving of 5 paisa on margin amounts to a total of INR 75,000 yearly and in the single Euro deal we managed to save INR 10,200.

Advised client to subscribe to our Product namely TPO (Transaction process outsourcing) wherein the client authorises our dealers to book rates against their Forex transaction on behalf of the company. Our dealer transacts using live inter-bank terminals to negotiate with the bank and get the best rate for the client. TPO is a unique product of ours whereby we provide arrangement for transacting on behalf of our clients to negotiate the best live rate against their transaction.