Sip Foreign Exchange and Risk Management
Summer project
On
Foreign Exchange Risk Management
By Paresh S. Mahajan
Atharva Institute of Management Studies
Marve Road, Malad (W), Mumbai – 4000 95.
July 2005
Summer project
On
Foreign Exchange Risk Management By Paresh S. Mahajan
Submitted to: Mr. Satish Kamat Finance Manager Mahindra Intertrade Limited
Index Topic Page No.
Introduction 4-5
Forex Fisk Management Policy 6-7
Key Terms in policy -Foreign Exchange Exposure 8-11 -Types of Exposure 12-13 -Management of Exposure 14-18 -Open position, Stop loss limit 19
MIL and Forex Risk Management 20-23
Mahindra Intertrade is part of the Mahindra Group, a global manufacturing conglomerate with annual revenues in excess of US $1 billion. The Mahindra Group has a significant presence in key sectors of the Indian economy. A consistently high performer, M&M has been ranked among the top ten private-sector companies in the country for several years.
A corporate history spanning from 1945, the group expanded its operations from automobiles and tractors to secure a significant presence in many more important sectors - hospitality, trade and financial services, automotive components, information technology, telecom and infrastructure development. The group employs more than 12,600 people and has six state-of-the-art manufacturing facilities spread over 500,000 square meters. It has 33 sales offices that are supported by a network of over 500 dealers across the country. This network is connected to the company's plants by an extensive IT infrastructure. The M&M philosophy of growth is centered on a belief in
On
Foreign Exchange Risk Management
By Paresh S. Mahajan
Atharva Institute of Management Studies
Marve Road, Malad (W), Mumbai – 4000 95.
July 2005
Summer project
On
Foreign Exchange Risk Management By Paresh S. Mahajan
Submitted to: Mr. Satish Kamat Finance Manager Mahindra Intertrade Limited
Index Topic Page No.
Introduction 4-5
Forex Fisk Management Policy 6-7
Key Terms in policy -Foreign Exchange Exposure 8-11 -Types of Exposure 12-13 -Management of Exposure 14-18 -Open position, Stop loss limit 19
MIL and Forex Risk Management 20-23
Mahindra Intertrade is part of the Mahindra Group, a global manufacturing conglomerate with annual revenues in excess of US $1 billion. The Mahindra Group has a significant presence in key sectors of the Indian economy. A consistently high performer, M&M has been ranked among the top ten private-sector companies in the country for several years.
A corporate history spanning from 1945, the group expanded its operations from automobiles and tractors to secure a significant presence in many more important sectors - hospitality, trade and financial services, automotive components, information technology, telecom and infrastructure development. The group employs more than 12,600 people and has six state-of-the-art manufacturing facilities spread over 500,000 square meters. It has 33 sales offices that are supported by a network of over 500 dealers across the country. This network is connected to the company's plants by an extensive IT infrastructure. The M&M philosophy of growth is centered on a belief in