Corporate Treasuries in India: Navigating Risks, Compliance and Technology

Corporate treasuries play a critical role in managing the financial resources of companies in India. Their primary responsibility is to ensure that the company has the necessary cash and liquidity to meet its financial obligations and achieve its strategic objectives.

In India, corporate treasuries typically manage a range of financial activities, including cash management, risk management, investment management, and capital structure optimization.

Over the Years

The role of corporate treasuries in India has evolved significantly over the years, driven by changes in the business environment and the increasing complexity of financial markets.

Here are some of the key changes in their role:

Strategic focus: In the past, corporate treasuries in India were primarily focused on transactional activities such as cash management and treasury operations. However, over the years, their role has become more strategic, and they now play a critical role in driving the company's overall financial strategy and decision-making.

Technology adoption: With the increasing use of technology in the financial industry, corporate treasuries in India have had to adapt and adopt new tools and systems to manage their financial activities. This has led to the adoption of various treasury management systems, electronic payment systems, and other digital tools to improve efficiency and accuracy.

Risk management: With the increasing complexity of financial markets and the rise of new risks, such as cyber threats, corporate treasuries in India have had to expand their focus on risk management. This has led to the adoption of new risk management strategies, such as scenario planning, stress testing, and more sophisticated hedging techniques.

Regulatory compliance: With the increasing number of regulations and compliance requirements in the financial industry, corporate treasuries in India have had to invest more resources in compliance activities. This has led to the creation of dedicated compliance teams and the adoption of new compliance technologies and processes.

Investor relations: Corporate treasuries in India are increasingly playing a role in managing investor relations, communicating the company's financial performance to investors, and supporting fundraising activities such as bond issuances and IPOs.

Today, the role of corporate treasuries in India reflects the changing needs of businesses operating in an increasingly complex financial landscape.

Challenges faced by corporate treasuries:

Corporate treasuries face quite a few challenges in their course of work:

• Managing a range of complex and challenging financial risks, that require expertise in financial markets and sophisticated risk management tools and techniques
• Efficient cash management to ensure that the company has enough liquidity to meet its financial obligations, given that managing cash flows can be difficult, especially in complex organizations with multiple bank accounts, payment systems, and cash management processes
• Complying with various regulations and standards, including accounting standards, tax laws, and financial reporting requirements
• Keeping up with the increasing use of technology in the financial industry, latest developments in treasury management systems, payment systems, and other digital tools, which can be expensive and challenging, requiring significant investment in infrastructure and expertise

How We Can Help:

The role of corporate treasuries has become increasingly complex with the need for more sophisticated investment and risk management strategies. In this scenario, a comprehensive treasury solution like ICRA Analytics' Treasury Solution can be a game changer for corporates looking to manage their treasury operations more effectively.

Launched in 2022, ICRA Analytics' Treasury Solution is a cloud-based solution that offers a wide range of benefits to corporate treasuries. Treasury Solution is a comprehensive solution designed specifically to aid corporate treasuries in their pre and post-investment decision-making process. It offers a range of research, analysis, and tracking modules to provide an all-in-one solution for corporate treasuries.

The solution offers a range of modules, including Fixed Income Research and Tracking, Mutual Fund Research, FD Portfolio Tracker, Fixed Income Valuation, Mutual Fund Ranking, Rating Tracker, MF Portfolio Tracker, FI Portfolio Tracker, and Fixed Deposit Screener. The key features of Treasury Solution include a modular structure, alignment with board mandates, in-depth analysis, timely data updates, interactive dashboards, complete audit trial, customizable MF ranking, configurable portfolios, powerful screeners, and bulk upload or transaction histories.

Corporate treasuries can use the Treasury Solution to manage their investment portfolios effectively, enabling companies to make informed investment decisions quickly. The solution's research and analysis tools help companies identify potential investments, while its tracking tools allow them to monitor their investments and manage their risk exposure effectively.

The Treasury Solution offers customizable workflows to fit the specific needs of each company, allowing for greater flexibility in treasury management. The solution's workflow management tools enable companies to automate their treasury operations and reduce manual errors. This leads to greater efficiency and cost savings for the company.

With the increasing complexity of financial markets, a comprehensive treasury solution is essential for companies to manage their treasury operations effectively and stay ahead of the competition.

To know more about how the solution can help you as a Corporate Treasury, click here