i.VY Risk Management Services

1. i.VY Risk Management Services FOREX Risk Management

2. Risk Management • Why Risk Management • The Challenges • Changes in Financial Markets • Our Services • About Us i.VY Risk Management Services Have Risk… Will Manage

3. Why International Finance? • The decade of the 1990’s saw a steady depreciation of the INR • This was largely a conscious move by the RBI • But volatility was relatively low, with monthly difference of about 25 paise • The early part of the 2000-2010 decade saw a rise in volatility but nothing great i.VY Risk Management Services Have Risk… Will Manage

4. Why International Finance? • 2008 onwards the rupee became widely traded as foreigners took a keen interest in India • Volatility grew to unprecedented levels • Rise in FII/FDI and a vibrant NDF market meant that the rupee became vulnerable to developments in the overseas markets • The rupee’s integration in the global market increased visibly i.VY Risk Management Services Have Risk… Will Manage

5. Have a Look i.VY Risk Management Services Have Risk… Will Manage

6. The Challenges • How does one protect oneself in these volatile markets? • Competition has meant finer pricing leading to thinner margins • Can we afford to let exchange rate fluctuations eat into these small margins? • What is the best way forward in risk management? i.VY Risk Management Services Have Risk… Will Manage

7. The New Challenges • Keep yourself informed of what’s happening globally and what impact it may have on your business • Understand changes in global environment and their impact on domestic business • Understand the impact of different types of changes on each other i.VY Risk Management Services Have Risk… Will Manage

8. The New Challenges (Contd.) • Adapt local systems and strategies to global changes • React to failure speedily and change strategies to prevent and contain future losses • Develop strategies and responses to take advantage of new opportunities that a changed scenario presents • Act quickly i.VY Risk Management Services Have Risk… Will Manage

9. Changes in Financial Markets • Market integration is the most visible change • The line between domestic and international is difficult to see • The growth of MNC’s has been a major contributor to the growth of markets • Banks have a presence in most locations i.VY Risk Management Services Have Risk… Will Manage

10. Changes in Markets (Contd.) • Functional unification across geographical locations is getting popular • Movement of capital across boundaries has increased • The interdependence of economies and the over lapping of influencing factors has meant greater volume of trade i.VY Risk Management Services Have Risk… Will Manage

11. Changes in Markets (Contd.) • Vibrant markets characterised by speed, volume and number of participants and driven by technology • Increasing awareness and competition means finer pricing • The pressure to make money has contributed to volumes, fine pricing and higher volatility i.VY Risk Management Services Have Risk… Will Manage

12. Changes in Markets (Contd.) • With volatility, complexity of markets and increased risk comes the need for dynamic risk management • New financial instruments and the growth of derivatives has opened up new opportunities i.VY Risk Management Services Have Risk… Will Manage

13. Changes in Markets (Contd.) • Liberalisation and deregulation of financial markets is a continuous process as is financial innovation • It is a dynamic market, one that is constantly evolving • Every day is a new market, a new situation, a new opportunity, in which you are only as good as your last deal i.VY Risk Management Services Have Risk… Will Manage

14. Our Services • Provide information on exchange rates, financial markets, and news/events • Assist in planning a proper risk management strategy • Implementation of hedging activity • Guidance on the use of appropriate instruments • Entry, Exit and Stop Loss Levels • Cancellations and Re-bookings of contracts i.VY Risk Management Services Have Risk… Will Manage

15. Our Services • Interaction on a regular basis through calls, SMS and reports • Provide training where required • Liaison with banks where necessary • Assist in setting up of Trading Facilities • Drawing up of a Risk Management Policy i.VY Risk Management Services Have Risk… Will Manage

16. Think about it… • To quote what someone wrote in a leading business daily last week: • In two weeks to Sept 23, the USD index rose 2.7%, EUR fell 2.9%, while the INR lost 7% • The rupee behaved as much like a commodity as a currency, highlighting the increasingly urgent need for the RBI to further deregulate the FX market to increase liquidity and depth i.VY Risk Management Services Have Risk… Will Manage

17. Think about it… • Real lesson - is for the corporate sector • The vast majority of companies persists "in purely market-view based decision-making" • This approach, while sometimes successful, often leads to catastrophic losses as decision-making can end up paralysed when stop losses are hit • Welcome September 2011!!! i.VY Risk Management Services Have Risk… Will Manage

18. Think about it… • Where is the rupee going??? • The world is not going to end - it never does • Things will certainly be difficult, they won't be as bad as the most analysts believe - it never is • If you are willing to not look at your investment for two years, buy emerging markets • In the near term, only a fool would make a bet i.VY Risk Management Services Have Risk… Will Manage

19. Survival of the Smartest • Always be pro-active • Stop trying for tops and bottoms • Be satisfied - Stop being greedy • Discipline os the key word • Discipline to: • accept that volatility is here to stay • accept that you cannot always be right • accept that you can be wrong i.VY Risk Management Services Have Risk… Will Manage

20. About Us…. • Ms Beena Gandhi a Commerce Graduate majoring in Economics and Statistics • Vast experience in the field of Education • Presently associated with the Dholera Bhal Seva Samiti NGO • Assisting in the “Landmark” Education Project as Introduction Leader • Ms Gandhi will be responsible for overall administration and logistical support i.VY Risk Management Services Have Risk… Will Manage

21. About Us…. • Mr. Yatin Patel a B Sc. Chemistry and School of Building Science & Technology, CEPT Graduate, he holds Diplomas in Corporate Communications, International Business and Finance Management • Over 2 decades as a Businessman with rich experience in varied fields such as printing, design, advertising, water management and construction • Presently Trustee at the Bal Prasoon Vidyalay • Exemplary contribution in Social Development, NGO and Education serving over a 1000 under-privileged children at Dholera Bhal Seva Samiti • He is a past President of Rotary Club Ahmedabad • Mr. Patel will be responsible for overall marketing of our services and client relationship i.VY Risk Management Services Have Risk… Will Manage

22. About Us…. • Mr. Victor Saldanha is a Double Graduate majoring in Business Management and Law • Over 3 decades experience in India and Abroad with banks and corporate houses in the area of Risk Management • Exposure in most major currencies across major financial markets and products • Visiting faculty in several management institutes conducting the course on International Finance • Conducted several seminars and training programs for corporates in risk management • Mr. Saldanha will be responsible for overall advisory services and training/seminars i.VY Risk Management Services Have Risk… Will Manage

23. Our Motto….. • Risk is an Integral part of Modern-day Business • Volatility is here to stay • We will not be over-awed or scared • We will manage risk pro-actively • We will endeavor to convert risk and volatility into opportunity • Have Risk…. Will Manage….. i.VY Risk Management Services Have Risk… Will Manage

24. Thank You Have a Nice Day i.VY Risk Management Services Have Risk… Will Manage