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Services
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INTRODUCTION
India Forex Advisors Pvt. Ltd is one of India's leading global Forex andtreasury consulting company.
Founded by Abhishek Goenka in 2005, kolkata.
India Forex Advisors Pvt. Ltd. is the only company to have a technology based
FX consulting practice.
Services offered explore extra-ordinary opportunities to manage and sustain growth,
Maximize clients revenueby minimizing the risks.
Partner in Forex Consulting, Treasury Management and Forex Operational
Excellence from 2005. Clients : corporate houses and listed companies, to banks, institutions and HNIs.
Expertise: advisory services, building customized strategies, framing risk
management policy and treasury auditing.
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TIMELINE
2005
Founded in Kolkata
2006-2007
Expanded to Delhi,
Mumbai
2008
Crossed 100+ client base
2012
CNBC Awaaz referred to
the company as "The most
consistent view on FX
markets
Client base is 400+
2013
Moved to Technology
oriented consulting
2014
New offices: Bengaluru
Gujarat
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Mission:
Provide powerful and effective solutions in treasury mainly to
Corporate, Banks and Institutions. It includes providing robust
strategies and technologies to improve the efficiency and
profitability of risk officers, traders, and other market participants.
Vision:
Grab the mind share of every treasury person across the globe before
they initiate any major/minor financial markets decision or action.
They want to be always valued for our integrity, innovation and
execution.
customer approach:
Interests of clients always come first. They believe that, if they serve their
clients well, their own success will follow. They also believe that their
assets are people, capital and reputation. If any of these is ever
diminished, the last is the most difficult to restore.
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INDUSTRIES
AGRO COMMODITIES
CHEMICALS & POLYMERS
GEMS ANG JEWELLERY
IRON AND STEEL AND METAL SCRAPS
EDIBLE OILS
FMCG IT SERVICES
SHIP BREAKING
PENS AND STATIONARY
TEXTILE
POWER
MARINE & FISHERIES
INFRASTRUCTURE AND
OTHERINDUSTRIES
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FMCG
Problem Area:
One leading FMCG company, having imports of $ 500 Mn had a practice of
taking buyers credit frequently. Further, they kept such credit rolling for a
period of one year. This practice worked efficiently when the market was
trading in the range of 43-44 levels. But when the market turned, and the rupee
started tumbling towards 60 levels, then it was no more desirable. The buyers
credit for this company was maturing at higher levels than the levels at which
they took the buyers credit owing to the companys strategy of taking buyers
credit and keeping it un-hedged. This methodology made the company book a
considerable sum of money as foreign exchange losses.
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CONT..
Solution Offered:After
IFA got on board, they prepared an entire risk management strategy
switch to suppliers credit instead of buyers credit thereby reducing its1.5% extra cost of LOU.
company was able to save on extra interest cost. The suppliers credit washedged by using the options and forward strategy, which seemed appropriate
at that moment.
As the company had cash flow problems, it could not do away completely withthe buyers/suppliers credit. So the company was safeguarded by taking up therequisite risk management policies. As the company is a manufacturer and themargins are good, IFA advised the firm to stay hedged during a rupee depreciatingtrend.
Impact:The company ended up saving a considerable amount in terms ofinterest and the hedging of such liabilities helped them to save eroding profitswhich were due to the currency volatility.
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FX Consulting
Foreign exchange consultants lend their expertisein overseas financial markets to businesses andindividuals seeking to invest globally.
Portfolio Management in currencies The art and science of making decisions about investment mix
and policy, matching investments to objectives, asset allocationfor individuals and institutions, and balancing risk against
performance.
Hedging with currency derivatives Currency Derivatives are Future and Options contracts which
you can buy or sell specific quantity of a particular currency pairat a future date.
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Pricing & Analysis of structured products
A structured product is designed to hedge your exposure
against any adverse currency movement. The same
structure will be priced differently at different times,
depending on:
o Interest rate
o Volatility of the underlying asset
o Credit rating and credit default swap ('CDS') spread of theissuing counter party
o Time to expiry
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SWOT of FX Consulting
Regular monitoring of FX exposure
Customized Risk focused approach
In house research experts Risk mitigation plan
Specializes in FX consultingStrengths
Newly formed company has less credibility compare to early market entrants
One of the highest cost per service provided in the market
Weaknesses
It is planning to open offices in Singapore, thereby it can expand its services
Small and medium businesses are growing at a fast pace and they are nowexporting to other countries
Increasing Awareness about its consulting domain
Opportunities
ThreatsLarge consulting firms which provide package services to the
companies
Upcoming new companies specializing in FX Consulting like SPFX
India, FXAdvisors, Aditya Forex Service
Fluctuations in currency by some government regulation
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Economic Research Reports
EconomicResearch
Reports
Local & GlobalNews Reports
CurrencyOutlook
GlobalEconomicOutlook
Asset ClassFocus
RBI Regulation
StrategyReports
StrategySpotlight
IFA Classroom
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Economic Research ReportsSWOT
AnalysisStrengths
Highest Frequency in the industry
Full range of support services like live
market data screen
Timely access to critical data on the move
(SMS alerts on spot rates)
Dollar Rupee Report highly sought after in
banking
IFA classrooman innovative service
High knowledge and experience in Forex
marketsOpportunities
Research team can work in
partnership with major research
firms like CRISIL
The existence of Technology base
for alert services can be leveraged to
include more services
Threats
Strong competition from firms like
CRISIL, CMIE, Deloitte, KPMG etc.which is into core research
Competitors have a broad spectrum
of products
Weaknesses
Narrow spectrum of reports
Research is not core competency
Reliability and trust not high in the
market for reports of IFA
S W
TO
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RISK MANAGEMENT AUDIT
India Forex Advisors do a preliminaryaudit for all their clients and checktheir existing hedging effectiveness,
bank limits, charges and transactionexposure.
Review clientscurrency risk management policy
Clients banking evaluation.
To identify functional or operational weakness Examine whether clients cash flows can be better managed
Suggest effective solutions to hedge FX and interest rate risks.
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SWOT ANALYSIS
Strength
Research Report
Advanced software tools
Personalized service to each clients
World Class Research Reports
Hedge and Stop Loss Alerts
Weaknesses
Newly formed company has less credibilitycompare to early market entrants.
Difficulty in quantifying exposure
Lack of confidence in the data they access
Timely access to data
Opportunity
Risk management as a vital component ofoverall strategy.
Threat
Regulations
Competition from Major Firms.
Market Volatility
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CUSTOMIZED RISK MANAGEMENT POLICY
India Forex Advisors helps its clients to designand implement the risk management framework ina following manner:
Define the various risks in the business.
Analyze the market risks arising due to the businessoperations.
Define Hedging program & formulate Risk Monitoring matrix
Define Risk ControlsHedge ratios, maturities, limits etc.
Define Risk Appetite and accordingly decide stop loss levels.
Create Format of reporting and review
Define Front/Mid/Back office Roles and Responsibilities
Setting up Benchmarks and Target rates
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SWOT ANALYSIS
Strength
Personalized service to each clients
Weaknesses
Newly formed company has lesscredibility compare to early marketentrants.
Lack of confidence in the data they
accessLimited Client Base
OpportunityDemand in all the sectors
Untapped Markets
Threat
RegulationsCompetition from Major Firms.
Several well established firmsproviding same services
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Technology Based Offerings
IFA Mobile App:
Designed to run on the iPhone, iPad as well as on android platforms
It is an IFA proprietary mobile app created for their clients
Provides access to live market quotes including Forward Premiums, while theyare on the go
IFA Risk Management Software:
Provides for an active management of the currency risk in the volatileenvironment
Allows for quantification of risks and monitoring them
IFA Live FX Rate Ticker: Delivers a vast range of market data on all leading currencies, cross currencies,
NDF rates, LIBOR rates, money market rates, bond yields and interest rates
Not only helps companies keep a track of the current market situation but alsohelps them to negotiate rates with the banks/brokers
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Technology Based Offerings
SWOT ANALYSIS:
Holistic view of exposures of all your departments
Takes into account all RBI regulations
Pop-up alert notifications when triggers are hit
Scenario Analysis and back testing
Quantify & Monitor all exposures in different currencies-USD, EURO, YEN-even while you are travelling.
Reduces your decision making time
Heavy user involvement in risk analysis in that it enables them to test fordifferent profit/loss scenarios which is customizable
Strengths
People may be hesitant to use mobile apps on a full fledged basis in theirmobile phones
Risk Monitoring is a costly and time consuming processWeaknesses
Growing use of high end phones by financial analysts presents a hugeopportunity for expanding the services in a large scale
Currently, the mobile app allows only for viewing of the live marketquotes on the go. There is an opportunity for enabling the business usersto measure the foreign exchange risks of their business
Opportunities
Mobile apps are not secure in that people will be hesitant to measure therisks that their business is exposed to
Threats
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SWOT ANALYSIS OF BANKING
CONSULTING
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Strengths
IFA is in good books of various industrystalwarts
Swift growth of IFAs client base since its
establishment in 2005
Training using in-house developed casestudies
Internal and external trainers offered
Weaknesses
Trainer details not specified on website
Course structure is not easily available tocustomers
Cost of training program is kept undercovers
Does not have any unique product to offer
Opportunities
Offer unique products in the vicinity Financial sector boom
Client satisfaction
Opening new branches
Tap untapped markets
Threats
Several well established firms providingsame services
Price wars from competitors
SWOT: AdvancedTraining
SWOT of Advanced Training