Treasury Management Essay

Section 3 Treasury Management 3.01 foundation How is the unknown exchange flick on individual transactions beingness managed by the head of pay? 3.03 Banking Facilities / Funding Is the approval of the regional finance managing director sought before opening a bare-assed news report (either an account in a new bank or a new account in the existing bank) or for each new source of finance such as new loan, new cite facility, renewal or increase in existing credit facilities?Is any approval from the regional finance director and or regional managing director sought before pledging of assets to bank? 3.04 Cash Management What is the limit of the level best bullion and or cash equivalents? Is this more than average sales proportion of 5 eld? i.e. average sales ratio of 5 days = budgeted sales for the year x 5 260 days (52 weeks x 5 days) 3.05 Cash Flow Does the head of finance prepare a cash flow forecast for the following two months to determine whether the loan git be set tled within two month or not?Does he send a cash flow statement to DIC AP on monthly backside? 3.06 Foreign Exchange Movement Are the inflows and outflows in each non topical anesthetic currency greater than JPY 10,000,000 covered with forward international exchange contracts? Is the quantum of all future inflows and outflows and the status of hedging currency exposure communicated to the regional finance director? In case, exposure is not being hedged, is the decision not to hedge communicated to the regional finance director along with proper justifications?Are all the outstanding current assets and liabilities in non local currencies reported to the regional finance director on monthly basis? 3.07 Foreign Currency Cash Flow Forecast Is a foreign currency cash flow forecast prepared? If yes, is it communicated to the regional finance director along with the status of hedging for the following 3 months?