Viraj Profiles Private Limited (referred as Viraj hereon) is one of the largest manufacturers and exporters of Stainless-Steel long products in the world. With a turnover of USD 1.5 Billion, the company is exporting its stainless-steel products (Wire Rods, Wires, Welding Wires, Flanges, Fasteners, Bright Bars and Profiles) to more than 1300 customers based across 96 countries spread over 6 continents.
Challenges
• All the Banking activities related to trade finance were maintained in Excel spread sheets.
• Underlying exposures were maintained in SAP.
• Accounting entries by respective team were entered in SAP.
• Keeping track of open exposures & hedges was a major pain area
• Month-end MTM calculations was done manually
• Daily FX activity tracker was maintained manually
• Auto tagging of various underlying exposures against hedges was a major challenge
Benefits
• Saving in person-hours due to automation: Due to integration of the process, time is saved across the process participants.
• Data accuracy & visibility: Accuracy of data is of utmost importance for Forex hedging decisions. With IBSFINtech Treasury platform accurate and timely data is available for decision making.
• Error free accounting entries by back office: Since entries are flown automatically, the source data such as Business division/profit centre/cost centre are automatically captured which eliminates error in accounting entries.
• Implementation of Risk Policy, which is driven and monitored by the system, some of the key aspects of the policy included:
• Single Point of Truth
• Strong Governance in Finance and Treasury transactions
• Real-time decisions support a holistic 360-degree view
• Optimizing the decision making by enhancing visibility and real time access to business data that affects the top-line
• Identify, measure and monitor risk across the lifecycle of business transactions and protect business value
• Enhance the business value by enabling corporates to take value-accretive decisions on their financial and banking transactions
Client Feedback:
Anuj Jain, CFO, Viraj Profiles Private Limited shares
"IBSFINtech solution is a comprehensive and easy to use, which successfully integrated into our existing IT ecosystem and the services we were familiar with. The ability to customize the solution according to our business requirements brought considerable value to our ecosystem. With IBSFINtech's system in place, we are able to maintain stronger control over our cash holdings and FX exposure now, as it has automated many tasks that were previously handled manually. Additionally, it has added tremendous value due to the integration with ERP (SAP) and market data provider LSEG (formerly known as Refinitiv), providing an overall connected treasury ecosystem to our corporate workflow. Also, the implementation team of the company collectively and consistently worked towards the value benefits that the solution provided. Rakesh Ranjan, Vice President – Head Forex & Treasury We enhanced our focus on digitisation and automation of our entire treasury department to make the process system-driven and not employee-dependent. As we looked ahead, we aimed to leverage the value of the new technology, processes, and solutions we had put in place, and further automate and digitise our processes. IBSFINtech's comprehensive solution played a pivotal role in achieving our goal of 100% digitisation of our treasury and trade finance functions."