Mahindra & Mahindra, an Automotive conglomerate, Shifts Gears in Treasury Through Digital Transformation

Mahindra & Mahindra Ltd An Indian multinational conglomerate operating in over 100 countries

Challenges

• Using excel spreadsheet for maintaining banking activities was major pain area

• Manual accounting entries by teams into the SAP (ERP) were time taking

• Tracking open exposure and hedges was a tedious task

• Obtaining MTM calculations on daily basis was a challenge

• Daily FX activity tracker was maintained manually

• Auto-tagging of various underlying exposures against hedges was a major challenge

• Difficult to manage trail of daily disposal instructions with banks as well internal stakeholders

Benefits

• Reduced financial and operational risk through process automation

• Elimination of manual work enabled error-free accounting entries

• Process integration saved 2000+ man hours across the process participants.

• Enhanced decisions making with real-time data and reports

• Intuitive dashboards give a unified view of the data to top management

• Shifted from people driven to system driven

• Monitoring and controlling of exposures & hedge positions

• Profit and Loss accounting Entries are generated automatically

• Automation of Hedge effectiveness testing

• Generation of documents such as Hedge Documentation, Forward Utilization Letters, Transfer of Export Letters, etc

• Automatic generation of Unhedged Foreign Currency (UFCE) report

• Dashboard is provided to the M&M team for VaR testing

Client Feedback:

Swati Rane, GM-Corporate Finance, Mahindra & Mahindra Ltd

"“With IBSFINtech’s comprehensive Solution we were able to manage our FX Risk more efficiently with one easy to use and simple system. Since our daily transaction run to the tune of millions of dollars, the attendant risks are many and the losses could be very substantial, IBSFINtech has provided this tool which helped us in real time monitoring and control of our exposures and hedge positions during these extremely volatile recent times. Implementation was very quick and now we have full visibility and control over each transaction and consolidated position. We are now in the process of evaluating the platform for some group entities and leverage the solution capabilities to bring in complete automation.”"