Treasury

Treasury Management

The investment environment is highly volatile in the current market scenario. As the company conducts its regular business, it is equally important to efficiently manage the regular operating funds. The fund flows planned, forecasted and invested strategically can be a significant source of income for the company.

An investment strategy is typically based on the following parameters:

Credit Analysis

Risk of loss of principal or loss of a financial reward stemming from failure of the banker or the security issuer, mitigated by investing only with AAA rated banks/institutions.

Market Factors

The probable trends of interest rates and other macro economic factors impact the fund’s portfolio and its returns, thereby demanding focus and regular update of these market trends.

Interest Rate

Ensuring investment in the most viable portfolio which is line with the organizational investment policy and derives the highest returns.

Liquidity

The portfolio should remain sufficiently liquid to meet all operating requirements and contingencies.

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Management Structure

Our team focusses on a regular monitoring of the funds so as to generate returns on any idle funds of the company. This is achieved by an aggressive daily treasury management process involving the following broad activities:

PREPARATION OF DAILY FUND STATEMENT

PREPARATION OF DAILY FUND STATEMENT

The identification of investible idle funds is done on a daily basis. The actual balance as per the bank is adjusted for the following:

  • Vendor Payments forecasted over the next 2 working days
  • Cheques Issued but not presented as on date
  • Stale Cheques as on date
  • Cancelled Cheques or payments reversed for the period

The above gives the gross investible funds available as on any particular day.

Fund maintenance

MAINTENANCE OF CONTINGENCY FUND

In order to mitigate liquidity risk and to ensure complete adequacy of funds, a cash reserve is maintained to meet any contingent payments and developments which had not been forecasted or planned earlier. This reserve is based on management’s estimate of general fund estimated to be maintained as a contingency reserve. This reserve is maintained in the form of actual cash in the bank at all times and is provided for in the preparation of the Daily Fund Statement as prepared above.

Investment identification

IDENTIFICATION OF THE MOST VIABLE INVESTMENT ALTERNATIVE

The identified investible funds are invested with the bank/institution offering the highest return on investment. The suggested investment options have been explained comprehensively below. The target is to ensure the following parameters are fully complied with:

  • Investment in fully secure and AAA rated institutions/banks
  • Availability of fund as and when required

Monitoring

REGULAR MONITORING AND OVERVIEW

The investment portfolio is monitored on a regular basis to ascertain the performance of the fund. This is supported by weekly reporting platforms and accounting updates. All the regular fund requirements which exceed the actual cash available with the bank is met out of the maturity proceeds of the investment portfolio.

What we offer

We have our tie-ups with all the leading banks and corporates enabling us to negotiate preferential interest rates and services for our clients.

We have a network across the leading Asset Management Companies and dedicated teams working on a regular review and monitoring of the various fund options.
All our investments are focused and directed towards funds with the highest credit ratings, stable and risk-free.

  • Regular monitoring of working capital.
  • Identifying/creating Investment opportunities.
  • Reporting and MIS.
  • Identifying the most suitable investment alternatives
  • Regular monitoring, review and structuring of portfolio
  • Documentation, management and support

Competence, Confidentiality and Independence

The team at Brivan Consultants focuses on ensuring complete satisfaction to its clients. We understand that the treasury operations of any company are highly sensitive and we ensure complete confidentiality of the information we have access to, restricting its use to the purpose intended for.

Our present treasury management operations include management of a portfolio of INR 1,000 crores wherein we have generated significant returns given the preferences and the investment guidelines of the clients.

Our clients include companies in the manufacturing industry, publishing industry, public enterprises, trading industry, not for profit organizations, chambers of commerce. We also cater to MSMEs and HNIs, building an efficient treasury management function while earning significant returns on their restricted capital.

This has been a result of the core objective at Brivan – commitment to deliver quality services and add value to the client’s business.

Interested? Learn about our Treasury Services.