Is your Corporate

IFA GLOBAL Treasury fit for the

challenges ahead?
 SCOPE OF TREASURY DIAGNOSTICS - 360◦
IFA conducts a comprehensive
1 diagnostic of all treasury functions
to ensure they are in line with
industry best practices
Thorough examination of terms of
2 fund based, non-fund based and
trade finance facilities availed by
client
Review of Risk Management policy
followed and Reporting Dashboards 6
Treasury 360 exercise typically
improves operating margins by
anywhere between 0.5-1%
5
Ensure the evaluation of FX &
Interest rate risk becomes an
integral component of business
4
decision making fabric of firm
Thorough back-testing of spot rates,
3 forward rates and option prices to
ensure they are fair and transparent.
 TREASURY 360◦
AREAS THAT WE WILL COVER

• Risk Management Policy

• Term Sheet
• Borrowings
• Cash Flow Management
• Investments
• Price and Charges
• Process and Data
• Compliance
 RISK MANAGEMENT POLICY

• Confirming whether objectives of the policy is in sync with business goals

• Ascertaining that all type of treasury risk exposure are covered including that of group companies

• Evaluating process and timing of exposure recognition

• Assessing the suitability of hedging instruments in achieving policy objectives. Also check suitability of
same as per RBI regulations

• Appraisal of hedge ratio in line with business structure and risk appetite

• Examining defined hedging procedure and decision making matrix.

• Reviewing mechanism for performance measurement and evaluation to confirm the effectiveness of
policy. Review of reporting requirement laid down in policy and systems available for same.
 TERM SHEET

• Examining adequacy of sanctioned limits as per business requirement.

• Comparative analysis of securities offered to various banks.

• Evaluating impact of covenants on business flexibility. Also confirming that company is not in breach of any
covenant.

• Reviewing the coverage of default clause.

• Comparative analysis of margin requirements with industry standard.

• Ascertaining inclusion of both fund and non-fund based fund limit as per business requirements.

• Comparative analysis of processing and renewal charges with industry standard.

• Appraisal of minimum limit utilization clause defined in term sheet considering business requirement.
 CASH FLOW MANAGEMENT

• Review of current liquidity structure

• Analysis of excess cash balance maintained in various accounts.

• Evaluating optimum utilization of bank limits by comparing cash drag with outstanding bank limits.

• Providing guidance on maintenance of emergency fund based on company requirements

• Appraisal of CMS/Cash Pooling opportunity

 INVESTMENTS

• Evaluating corporate investment policy if available.

• Advising on other investment instruments available based on company's risk appetite and duration.

• Comparative analysis of effective yield of instruments in which company has invested.

• Review of investment mode used by company plus cost (i.e direct, through broker, etc.)
 PRICES & CHARGES

• Confirming availability of documented Rates and Charges certified bank

• Comparative analysis of various bank charges with industry standard

• Evaluating FX Rates provided by bank with live market rates for all type of forex transactions.

• Evaluating prices offered by bank for interest rate hedging instruments..

 Compliance

• Ascertaining various regulations related to treasury applicable to the company.

• Confirming availability of compliance calendar.

• Checking for non-compliance and highlighting risk associated with same.

THANK YOU