How India's leading online retailer ensured single moment of truth and efficiently managed the liquidity risk exposures?

With over 18 million users, this leading online retailer is one of the most popular shopping destinations for millions of internet users across the country.

The company hedges for investment risk with money market instruments for managing borrowings, Interest rates and maturity mismatches.

Challenges

• All complex transaction were handled in excels manually which caused large amount of human errors.

• Client deals in mutual funds, found it challenging to know MTM rates and NAV

• Client was facing an issue with liquidity management as losses were being faced because of liquidity risk exposures.

• Monitoring instrument such as mutual fund, commercial bill, certificate of deposit, treasury bills and bonds in a single place.

• Tracking and viewing loans, commercial paper, borrowing viewing each transaction its maturity and liquidation as and when it happened was an issue.

• Ensure data confidentiality, secure access and perform transactions based on respective Hedge & Risk Policies.

Benefits

• Analyze and mitigate liquidity risk exposures.

• Manage mutual funds with real-time MTM and NAV data.

• Administer segregation of duties securing treasury operations so that individuals who are authorized to initiate transactions are not permitted to settle them.

• Capture all transaction details in one place.

• Remove duplication.

• Integrate with accounting software for book keeping.

• Automatic Capture of Futures from Brokers' terminals.

• Hedging Policy.

• Minimize manual interventions that are prone to errors to maintain Integrity of data.

• Eliminate maintenance of Physicals using Excel.

• Generation of vouchers for each line item for each event and optionally reconcile with bank vouchers by upload of Bank E-statements and also transfer entries to Tally at eod.

• Generate Statements of Physicals with linked information to Futures comparing Quantity and Value to determine Hedge Effectiveness.

Client Feedback:

Aakash Moondhra, CFO – Snapdeal

"Timely & successful implementation of Innovative Treasury solution at Snapdeal confirms our decision to selectIBSFINtech was indeed the right one, not only for the holistic and integrated solution implemented but also for the commendable enthusiasm exhibited by the IBSFINtech's expert team. I am glad we chose this young and dynamic company."