Figure 1.

1 External Commercial Borrowing entities 12

Figure 1.2 Trade Credit Facility entities 13 Figure 1.3 Benefit of Buyers credit to importer 14 Figure 1.4 Flow diagram of Buyers credit procedure 15

Figure 1.5 Different cost involved in credit facility 16 Figure 1.6 Pros and Cons of hedging in Buyers Credit 18 Figure 3.1 Commercial Bank Loan cost analysis 28 Figure 3.2 Buyers Credit at cash rate cost analysis 29 Figure 3.3 Buyers Credit at spot rate cost analysis 31 Figure 3.4 Buyers credit at forward rate cost analysis 32 Figure 3.5 Buyers credit/Forward contract cost analysis 33 Figure 3.6 Buyers credit/Option contract cost analysis 35 Figure 3.7 Forward Hedging cost analysis 37 Figure 3.8 Option Hedging cost analysis 38 Figure 3.9 Comparative cost analysis 41 Figure 3.10 Interest/Premium/Charges cost analysis 42 Figure 3.11 Amount saved by company/Past 43 Figure 3.12 Risk Exposed/Past 45

Figure 3.13 Forward/Option Hedging rate 45 Figure 3.14 Forward/Option risk hedged 46 Figure 3.15 Comparative cost analysis 49 Figure 3.16 Interest/Premium/Charges cost analysis 50 Figure 3.17 Amount saved by company/Future 52 Figure 3.18 Risk Exposed/Future 53 Figure 3.19 Forward/Option hedging choice 54 Figure 3.20 Forward/Option risk hedged 55