Treasury Final

8/8/2019 Treasury Final

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Treasury Management --

Growth(Group No 5 - Batch 15 )Sandhya Dhekane - 65

Sunny Gangwani - 72

Upama Jayaraj - 77

Sunny Arbastani - 71

Sangeeta Fulwani - 66

Rajeev Naik - 56


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What is Treasury? a place where stores of treasures are kept; the place of deposit,care and disbursement of

collected funds.


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What is Treasury?contd.. Treasury and its responsibilities fall under the

scope of the Chief Financial Officer. The CFOs responsibilities usually include capital

management,risk management,strategicplanning,investors relations and financial reporting.

"Treasure" is a word derived from cash or otherliquidated assets with anyone so the TM means toefficiently manage that resources to get maximumbenefits or appreciation in that.

It's include fund mgmt,currency mgmt & analysisof fluctuations in different mode of financing.


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What is Treasury? Contd.. The specific task of typical treasury function include cash

management,

risk management,

hedging and insurance management,

accounts receivable management,

accounts payable management,

bank relations and investor relations.


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Cash Management Cash Management includes the control and care

of the cash assets and liabilities of theorganization.

This will include the selection of banks and bank

accounts, investment vehicles, investmentbrokers, methods of borrowing, cash managementinformation systems, and the development andcompliance with cash and investment policy

New Home

TreasurySec

urities


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Risk Management Risk Management includes customer credit

management, vendor/contractor financialanalysis, liability claims management, business

disaster recovery, and employee benefits

program risk.


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Insurance Management

Insurance Management is the process ofnegotiation of insurance policies to mitigate therisks that the organization does not want to

assume.


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Accounts ReceivableManagement

Accounts Receivable Management includes thecontrol of cash receipt systems within the

organization. With businesses looking for improved bottom line

performance, better account receivablesmanagement, collections is a key focus area along

with timely and accurate billing for organizationsacross industries.


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Accounts Payable Management

Accounts Payable Management includes the controlof the cash disbursement process.

The Accounts Payable Management Procedures

explains practices for documenting, recording andissuing payments for accounts payable transactions. This accounts payable process ensures only valid

and authorized payables are recorded and paid, and

it secures the accuracy of general ledger accountsand appropriate timing of payments.


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Traditional Role of Treasury

Ensuring the maintenance of RBI stipulatednorms for Cash Reserve Ratio (CRR)

Ensuring the maintenance of RBI stipulatednorms for Statutory Liquidity Ratio (SLR)

Activity in foreign exchange was confined to

meeting merchants and customers requirementsfor imports,exports,remittances and deposits


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Sources of Profit of Treasury

INVESTMENTS: Where banks earn a higher yieldthan its cost of funds.

Eg. Buying a corporate bond yielding 7% and maturingin three years, financed by deposits costing only 6%.

SPREADS: Between yields on money market assetsand money market funding.

E.g.The Bank may borrow short term for 5% anddeploy in commercial papers with return of 6%


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Sources of Profit of TreasuryContd.. LIBOR is the rate that the most credit worthy

international banks that deals in Euro-D ollarscharge each other for large loans. It is equivqlentto the Federal Funds Rate in the US.

Arbitrage : Is a process of buying a product/security in one

market and selling it in another, and there bymaking profits

The act of obtaining risk free profits bysimultaneously buying and selling similar

instruments in different markets. The process is known as Arbitrage and the person

as Arbitraguer.


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Sources of Profit of TreasuryContd..

Treasuries are also involved in InvestmentBanking where their responsibility covers tradeexecution on behalf of the banks clients in thecash or derivatives markets.

Investment Bankers/merchant bankers: Theseare agencies/organizations regulated and licensedby SEBI, the Capital Market Regulator.


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Sources of Profit of TreasuryContd.. They arrange raising of funds through equity and

debt route and assist companies in completingvarious formalities like filing the prescribeddocuments and other compliances with the

regulator(s). They advise the issuing company on book building,

pricing of issue, arranging registrars, bankers tothe issue and other support services.


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What is Treasury Management? Treasury management (or treasury operations)

includes management of an enterprise's holdings. It includes activities like trading in bonds,

currencies, financial derivatives and also

encompasses the associatedfinancial risk management.

All banks have departments devoted to treasury

management, as do larger corporations.

For non-banking entities, Treasury Managementand Cash Management are sometimes usedinterchangeably.

Wh t i T M t?
http://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Currencieshttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Departmentalizationhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Departmentalizationhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Currencieshttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Management


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What is Treasury Management?

Contd.. Collect funds and disburse money.

Managing funds.


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Objectives of TreasuryManagement

Management of funds

Availability of the funds in right quantity

Availability in right time Deployment in right quantity

Deployment in right time

Profiting from availability and deployment


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Functions of TreasuryManagement The functions of treasury management is

concerned with both macro and micro facets ofthe economy.

At the macro level, the pumping of funds in andout of cash, credit and other financialinstruments are the functions of the governmentand business sectors, which borrow from the

public.


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Roles of Treasury Manager Originating Roles

Supportive roles

Leadership roles

Watchdog roles

Learning roles

Informative roles


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Responsibilies of TreasuryManager

Complaince with statutory guidelines

Equal treatment to all departments

Ability to network

Integrity and impartial dealings

Willingness to learn and to teach


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Tools of Treasury Management

Analytic and planning tools

Zero Based budgeting

Financial statements analysis


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Environment for TreasuryManagement Legal environment: refers legislations,which

govern corporate functioning

Regulatory environment: regarding employment

wages, land laws,promotion of units and closure ofunits etc.

Financial Management:pertains to policiesregarding monetary and fiscal control,financial

supervision,exchange control etc.


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Qualities for successfultreasury function for growth Teamwork Respect of Organization Forward Thinking Global Thinking Technologically Advanced Customer Focused Finance/Accounting Knowledge Legal Knowledge Reliability


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Treasury Final

Documents

Transcript of Treasury Final