The absence of a strategy often has the effect of mismanagement of an exposure because typically people are only jolted into action when something goes wrong. Under this service we move one step ahead and along with the information system, we pro-actively provide Forex Risk Advisory to our clients. After understanding client’s risk profile and exposure, we guide on the future course of action and assist in taking hedging decision. We assist in structuring transactions in the most optimum way. In order to ensure that all the hedging decisions are in sync with the market movement, expectations and overall management objective, we undertake a periodical review of the hedging strategy.
“We make it our responsibility to ensure that your operating profit is not eroded by FX losses, while making the most of the market opportunities that come along.”
Advisory is not merely confined to indicating what levels to buy or sell at. It is client specific and considers the big picture. It is the end-to-end management of the hedge book while staying within the confines of the client’s risk management framework.
We keep track of your underlying exposures and manage the hedge book dynamically.
Our clients have a single point of contact in our advisory team which is typically an advisor with over 10 years of treasury experience. The advisor tracks and manages the exposures, facilitates coverage (including assistance in negotiating with the bank) and maintains and shares updated MIS on a daily basis. In addition to the primary advisor, there is a back-up advisor too, so as to ensure seamless continuity in the absence of the primary advisor.
Our MIS dashboard gives a real time snapshot of the hedge performance to the senior management along with projected outcomes using scenario analysis and VaR (Value at Risk) if needed.
The advisor briefs the client daily on the latest market developments, major risk events ahead and likely impact on currencies and rates.
The client gets access to Fraktal’s daily and weekly research reports on major currencies.
Fraktal’s trade finance desk helps clients avail fund based as well non-fund-based trade finance facilities from banks on favorable terms. Fund based facilities include PCFC, PCINR, Post Shipment credit, Bill Discounting, LC Discounting, Factoring, Buyer’s credit and Supplier’s credit. Non-fund-based facilities include Letter of Credit, Letter of comfort/undertaking for availing Buyer’s/Supplier’s credit and Bank Guarantees. Fraktal scrutinizes charges such as LC issuance cost, Advisory cost, SWIFT charges, document handling charges, LC amendment charges etc. to ensure that they are not inappropriately levied.
Fraktal helps the client zero in on the most viable funding option under prevailing market conditions.
Fraktal assists clients in trade finance documentation to ensure that RBI and FEMA regulations pertaining to export and import are complied with.