How End-to-End Automation Revolutionized Treasury Management for a Global Zinc & Silver Industry Leader

India's largest and world's second largest integrated zinc producer and third largest silver producer. With more than 50 years of operational experience, they gave highest priority to safety of their people and conservation of scarce natural resources through technology and innovation.

Challenges

• Excessive use of excel spreadsheets to manually maintain banking activities related to FX, Trade Finance, Investment, Cashflow & Liquidity & Debt.

• Keeping track of open exposures & hedges was a major pain area.

• Accurate cash flow planning and investment decisions

• Auto alerts and auto calculations for various due dates, charges, etc.

• Investment Policy Monitoring Framework

• Auto-accounting of all Treasury business transactions

• Lack of transparency for top management, as obtaining a real-time view of data was a major pain point.

• Underlying exposures and accounting entries being maintained in ERP systems, but without seamless integration and synchronization, causing data discrepancies and inefficiencies.

Benefits

• Extensive Automation: The solution transforms treasury operations on a grand scale, overseeing approximately $12 billion in investment and borrowing portfolios, over $2 billion in hedging portfolios, and approximately $12 billion in fund transfer transactions annually. This extensive automation greatly enhances operational capacity and efficiency.

• Accelerated Transformation: The rapid shift from manual Excel-based records to a fully automated system has significantly improved accuracy. This advancement has reduced month-end reporting timelines by one day, leveraging automated fair valuation and accrual processes. The impact on operational excellence and reporting speed is both substantial and impressive.

• Significant Cost Savings: Reduced processing time for investment transactions ensuring investment transactions are processed before cut-off ensuring no leakage on potential interest earnings

• Optimised Workforce: The focus of the treasury team has shifted from manual tasks to strategic analysis and value-added activities, enhancing overall productivity without reducing the head count.

• Streamlined banking operations: Consolidation of various banking portals into a single platform simplified transaction management significantly and reduced operational complexity, though the number of banking partners remains unchanged.

• Enhanced Process efficiencies: A unified workflow accelerates transaction processing across multiple platforms, driving substantial improvements in operational efficiency.

• Comprehensive Automation: End-to-end automation covered record keeping, accounting entries, and approval workflows, minimizing manual intervention and enhanced accuracy.

• Advanced Risk Management: Built-in policy checks reduced the chances of errors and policy lapses, strengthening risk management practices.

• Improved visibility: Detailed transaction logs and maker-checker visibility ensured full transparency and accountability in high-impact treasury operations.

• Error Reduction: Integration with banks, MFU, and SAP minimized errors in fund transfers and accounting transactions, ensuring reliable and accurate processing.

• Reduced Manual Intervention: Automation eliminates the need for manual month-end accounting entries, with direct postings for fair valuation seamlessly integrated into SAP

• Improved Connectivity: Seamless integration with key systems like banks, MFU, and SAP ensures smooth, error-free processing and enhanced system connectivity.

• Future-ready solution: Designed to adapt with rapid transformation, this automation project enabled data dependent solution.

• Exceptional implementation (budget/time): Implementation of such large automation program in record timelines for all milestones across all group companies.

Client Feedback:

Sandeep Modi, Chief Financial Officer, Hindustan Zinc Limited

"Our strategic initiative of digital transformation has profoundly reshaped HZL's treasury operations. By leveragingIBSFINtech's advanced treasury management solution we have streamlined our annual and monthly closing processes, optimized our treasury processes, enhanced accuracy, and significantly accelerated our reporting timelines. The technology driven processes have empowered our governance and ensures completed control over the treasury processes. This initiative exemplifies our commitment to leveraging cutting-edge technology to drive operational excellence and make data-driven decisions with greater agility. We are proud of how this transformation has positioned HZL as a leader in digital innovation within the industry."