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.
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
11 Mar 2019 05:17 PM
Client is a scrap metal importer based in Surat with imports worth INR 30 crore annually. Client was dealing with a PSU bank and was not using any cre
04 Mar 2019 02:55 PM
Case: Client is a garment exporter in Tirupur, Tamil Nadu with exports worth INR 100 cr annually to U.S. and Europe and bills majorly in Euro. Client
22 Feb 2019 06:25 PM
A USD200m pharmaceuticals company which is a part of a USD 800m group. Set up in the ‘80s, it is one of the leading players in the world in the produ