CashTrea has been designed specifically for managing treasury operations of corporates and non banking financial corporations. Unlike general ERP solutions, the timelines and dependency on the IT team for implementation of the module is considerably reduced on account of off-the-shelf modules for most of the critical treasury functions. Automation of manual processes for MIS generation and accounting removes operational risks that arise from maintaining transaction data and MIS in spreadsheets.
Cash flows that originate at different departments in the tiered set up of corporates / NBFCs need to be centrally available to the treasury to make funding and investment decisions. CashTrea allows collation of cash surplus / deficit information from different units to arrive at group level cash position. It keeps track of bank balances and fund transfers and provides a short term liquidity view based on the future commitments.
In case of surplus cash, decisions are taken to invest in asset classes that meet the short term and long term goals of the treasury. CashTrea supports the investment lifecycle in deposits (bank and inter-corporate), fixed income securities (treasury bills, government securities, commercial papers, corporate bonds) and mutual fund units. The solution aids in keeping track of performance measures like investment portfolio yield (IPY) as well as risk related limits.
Treasuries manage borrowing / resourcing programs centrally to ensure lower cost of borrowing. CashTrea allows Treasuries to assess their funding requirements and shore up funds via issuance of commercial papers, corporate bonds with put / call options, step up coupons, redemption premiums etc. Alternatively borrowings can be recorded with differing interest and repayment structures, principal amortization schedules, multiple settlement conventions and settlement calendars.
CashTrea has a comprehensive limit engine which allows limits to be monitored on real time basis. These limits are configurable and provide for monitoring exposures at Asset Class, Product, Sub Product, Currency, Dealer and Counterparty level. Corporates with high FX exposures (due to imports, exports or both) can use Cashtrea for hedging their exchange rate risk and interest rate risk via FX Forwards, Cross Currency Swaps and Currency Futures.