Treasury & Working Capital Management

Forex Management

Effectively managing Forex involves a range of tasks, beginning with identifying and capturing exposures and extending to negotiating with banks and executing the transaction. Forex management encompasses hedging aligned with business cycles and established risk management policies. Moreover, it demands real-time access to market data, thorough analytics and preparation of regular management reports for informed decision-making.

Arithra delivers a comprehensive solution for forex management. Drawing on our decades of forex market expertise, we collaborate closely with our clients to establish a process-driven risk management framework and also secure competitive forex rates. A noteworthy value addition comes in the form of experienced and dedicated team to address all forex related matters.

Value Proposition
• Real-time forex exposure capture facilitated by effective MIS
• Access to an experienced, specialized forex consultancy team
• Streamlined execution and bank negotiation processes
• Ensuring robust risk management practices

Working Capital Management

Working capital management refers to the management of a company’s short-term assets and liabilities to ensure that it operates efficiently and maintains sufficient liquidity to meet its operational needs. It involves balancing the company’s current assets, such as cash, accounts receivable, and inventory, with its current liabilities, including accounts payable and short-term debts.

Most organisations especially the mid-market ones find it hard to optimise working capital. Proper working capital management is crucial for maintaining a healthy financial position and sustaining business operations.

Inadequate working capital can lead to liquidity issues, missed opportunities, and even bankruptcy, while excess working capital can signify inefficient use of resources that could be invested more effectively elsewhere.

Effective working capital management ensures that a company can cover its short-term obligations, manage its cash flow, and have the resources necessary to continue operating and growing.

We work with our clients to implement lasting improvements in their working capital management. Our team focuses on enhancing financial resilience by refining working capital practices through meticulous planning and process optimization. Our comprehensive suite of services covers monitoring and managing the entire spectrum from order to cash to procure-to-pay, exploring and effectively managing all opportunities for optimizing the working capital cycle.

Value Proposition:

  • Forecasting and Demand Planning: Demand forecasting to align production and inventory levels, avoiding overstocking or understocking.
  • Inventory Management: Balancing inventory levels to avoid overstocking or stockouts, which can tie up capital or lead to missed sales opportunities.
  • Receivable Management: Efficiently managing customer payments and credit terms to ensure timely collection of outstanding invoices.
  • Payable Management: Managing payments to suppliers to take advantage of discounts and favourable terms while maintaining good relationships.
  • Process Efficiency: Enhance operational processes to reduce lead times, minimize work-in-progress (WIP), and improve production throughput.
  • Cash Flow Monitoring: Maintain a vigilant watch on cash inflows and outflows, utilizing cash flow forecasts to proactively manage liquidity.
  • Asset Utilization: Evaluate the utilization of fixed assets to ensure they contribute optimally to production and revenue generation.