CURRENCY RISK MANAGEMENT

Effectively manage the currency risk and protect the bench mark by deploying various hedging tools in line with the risk appetite of the Corporate.The currency portfolio will be managed to achieve the business targets and achieve the projected revenue and protect the Corporate against adverse currency movements which could prove detrimental to budgetary allocations.

CURRENCY TRADING

Translate risk into rewards by effectively generating profits in the Over the Counter (OTC) markets. The hedging tools will be deployed with the sole intention of mitigating the risk, but translate the same into revenue, if the market provides the opportunity. The entire process will be executed with strict adherence to RBI guidelines.

CONCEPTION OF RISK MANAGEMENT

A well devised process will instill discipline and guide the management to take decision in mitigating the currency risk. The entire process of managing the risk of various exposures will be set up in a professional way as per the risk appetite and policies the Management.

COMPOSING OF FOREX POLICY

A well designed Forex Policy will define the entire process of hedging techniques, hedging tools, stop loss and take profits levels etc., The decision making will be simple as the Management will be part of the Forex Committee formed for this purpose. A well drafted and professionally designed Forex Policy is one of the mandatory requirements for listed companies, Credit Ratings and Derivative Transactions.

CURRENCY FUTURES

Currency Futures is a standardized exchange traded platform. The rates are transparent and hassle free to trade as no underlying is required. Presently, USDINR, EURINR, GBPINR and JPYINR can be traded in this platform.

COMMODITY FUTURES

Commodity Markets are highly volatile and could prove catastrophic if not managed properly. We have roped in the M/s P J Commodities Pvt Ltd., one of the leading Commodity Professionals for this purpose. The various products offered are Commodity Advisory, Commodity Trading, Commodity Hedging, Portfolio Management etc.,

FOREX INFORMATION SERVICE

Forex Currency Rates and information affecting various markets like currency, commodities, equity and debt market will be provided through various channels like website, emails and SMS alerts. The latest and imperative happenings with analysis and suggestions will be sent through emails intermittently.

INTERNATIONAL TRADE FINANCE

We specialize in syndication of ECB finance at international rates. (LIBOR, EURIBOR, SIBOR etc.) The international interest rate is most competitive vis-à-vis our local interest rate. The importers can avail this facility through buyer’s credit, supplier’s credit and ECB term loans for project finance. The entire process will be managed by at competitive rates.

Supplier’s Credit

Supplier's Credit is a term used to refer to financing of an import by an international bank at LIBOR related rates. Simply put, instead of importing on "sight basis" which entails opening a sight L/C, the importer opens a usance L/C on an international bank (financing bank) where the L/C is restricted for negotiation, discounts the drafts drawn under the L/C so that the beneficiary (Supplier) gets paid at sight and the opener (importer) has to pay, invoice amount and interest, to the financing bank after 180-days. The interest element is determined on the basis of the Libor for the concerned currency. For Example the 6-month Libor for the USD is currently 0.38 % p.a. The spread over Libor at which the financing will be done, varies from 1.00 % to 2.00% depending upon, the size of the transaction, the usance period, the country of import etc.

Thus, by using supplier's credit an importer is in a position to finance his imports at international interest rates which are significantly lower than those charged by our local banks (usually around prime rate plus spread or the CC rate).

Role of Aditya
	Arrange cost effective and aggressive rates for financing
	Scrutinize the L/C being issued to the financing bank.
	Follow up and Co-ordinate assisting the process of payment to the supplier.

Buyer’s Credit

This mode of financing is used to extend the due dates of sight payments of L/C’s or documents. This type of financing is routed through the ECB route where the L/c opening bank or the document routing bank acknowledges the transaction arranged by its customer and gives an undertaking via a SWIFT message to pay the offshore financing bank the principal and the Libor related interest amount on the promised future date. The interest element is determined on the basis of the Libor for the concerned currency. For Example the 6-month Libor for the USD is currently 0.38 % p.a. The spread over Libor at which the financing will be done, varies from 1.00 % to 2.00% depending upon, the size of the transaction, the usance period, the country of import etc.

The major benefits of implementing this structure are as follows.
	The Supplier can negotiate with his own banker
	Applicant gets the money on a simple undertaking from his banker
	The control of the transaction lies in the hand of the importer
	This transaction can be implemented to make payment to any supplier in the globe irrespective of his location.
	The above route can also be adopted in case of Non-L/c or CAD documents

Role of Aditya Forex
	Arrange cost effective and aggressive rates for financing
	Follow up and Co-ordinate assisting the process of payment to the bank

STRUCTURED FINANCE

Identification and Syndication of Various Financial Products available to suit the risk appetite, transfer and mitigation of risk using structures like securitization, credit enhancement and tranching. We also specialize in syndication of factoring, Export and local L/C Discounting, FCNR (B) and Foreign Currency Term Loans.

TREASURY OUTSOURCING

The entire treasury operations will be professional managed which will be hassle free and cost effective. The risk will be managed and mitigated to achieve the bench mark and better it.
 

FOREX DIRECTIONAL POSITIONING

The global foreign exchange market is the largest financial market in the world with more than USD 3.21 Trillion-turnover day. It is open 24 hours day. It is an over the Counter market, highly volatile and operates purely on Supply and Demand. These characteristics make the Currency Market, the highly liquid market where manipulation is impossible. Technical Analysis serves as a barometer to this market. The forward market having validity 12 months allows one to hold positions till such time. Short trading positions provide an opportunity to get benefited from a falling market also. This makes the Forex Market a winning trader’s market.

The Corporate Treasury is a source of profit generation. This trend line is catching up with most of the Corporates. The highly volatile currency can be a bottleneck in achieving the business targets. The budgeting and profit margins may go awry unless it is combated with alternative skill set. The currency market offers a huge potential to generate revenue from it. Corporates, based on their risk appetite, can take Directional positions in currencies backed by their Import & Export exposures. Aditya Forex Service has a proven expertise in this area. We can confidently say that we have mastered this. Aditya Forex Service with a talented pool of Analysts and Financial professionals has now ventured into advisory on Forex Positional Trading. Our clients have reaped rich returns from our trading calls, given after in-depth analysis of both Fundamental and Technical factors.