Treasury

Case study –

A growing IT company with Head Office in US and branch in India was unsure about hedging USDINR. The CFO was not liking the volatility in the cash flows because of fluctuating FX rates.

Edugains studied certainty monthly inwards and the internal budgeted rate. Suggested a conservative hedging strategy and also handled end to end process of setting up hedging limits with banks. We booked hedges and monitored each contract. As a result, client was getting a rate of 69 for last few months as against going rate at that time of 66.

For more case studies – https://edugains.in/case-studies/

Borrowings

Case study –

A company with exports around 60cr in EUR and sales of 140 cr was finding it difficult to get PCFC borrowings as their per invoice size was small. They were using INR borrowings. The owners of the company had view that if INR weakens, they would doze out to the weakness. Current Interest rate was around 11%.

Edugains studied their problem and suggested borrowing in FCNR and WCDL, Which would allow lower Dollar interest rate, saving them interest of 5-6%. We split the total exports in E​UR​ and USD. Further, helped them to renegotiate the interest by pricing in bank’s margin using proprietary tools and choice of MCLR, saved​ up to 3%.

For more case studies – https://edugains.in/case-studies/

Audit

Case study –

A Pharmaceutical company was concerned over their high annual bank charges. They feared that with the increase in volume their finance cost would rise, hence they approached us for a solution.

Edugains conducted a bank audit of charges using proprietary tools to identify charges that could be standardize instead of a variable form. We mapped their charges with other corporates having similar volume and business to price them at competitive rates. Negotiated with bank using scientific methods and helped them to bring down charges by almost 50%.

For more case studies – https://edugains.in/case-studies/

ECB (External commercial borrowing)

Case study –

A MNC company in fragrances was looking to expand in India. They were unsure on the ways of how to finance their expansion and also ensure 100% compliance with RBI.

Edugains studies their business and also analysed various alternatives which were in sync with their business. We finalized with a mix of ECB and local debt. We got the bank’s approval for local debt and coordinated for ECB compliance.

For more case studies – https://edugains.in/case-studies/

FEMA

Case study –

Shipping agent wanted to pay in USD to save FX costs which were 3-5%. The business margin were very thin and RBI guideline were unclear

​Edugains ​represented to RBI​ and​ got clearance to pay in USD​. We worked on a ​structured payment plan​ and helped the ​client ​to save 3.5% on every payment​.

For more case studies – https://edugains.in/case-studies/

Economic research

Case study –

An IT company based in India was exporting its service to South Africa, They wanted to understand if long term hedging was suitable for their business or not

Edugains prepared a premium research report to help them understand that long term hedging was not fruitful because their currency, ZAR, was experiencing more then 10% avg. volatility and also there was political uncertainty which would have hampered their hedging performance. Hence, the company decided against hedging for long term. ​

The key research studies we did were to find –
1. Interest parity between two different currency
2. Political uncertainty due to unstable government
3. Currency experiencing more than 10% average volatility

For more case studies – https://edugains.in/case-studies/