Precaustion against rupee foll against dollar

Dear Shubham,

For Internation Trade Forward Contract is a way to minimise the currency exchange loss.

However, if the your Company is also into export of goods the balance of payment can be mananged for Import Payments against Export Receipt in foreign Currency.

also check out for any incentives or benefits like Duty Drawback, EPCG, FPS and  subsidies available to the industry under which your company falls. towards reduction of duty of import against export made.

Thanks Shilpa,

My co. is just taking consultancy services from outside, there is no export or import of goods.

Thus in this senerio kindly suggest the wayout for the same.

Thanks

Shubham

Dear Shubham,

o.k.  following points required,

1) Terms and conditions of Payment i.e., what is due date for import of service and Interest charges on the same.

2) reason why the payment delayed with respect to due date as there are RBI norms regarding Import  payments. 

3) Company can approach speciallised FACTORS/ BROKER'S SERVICES for payment of  import who take up this dues but also need to work on terms and conditions like what amount they pay off  and there service charges and interest charges etc.

4) Forward contract is one of the way you need to approach your bankers for that.

5) also correspondence with foreign creditors towards flexibility in payment terms may work out.

5) In any case company need to start with some thing to bring down the dues.

Do hedge against this risk,in past u can find that many companies filed insolvency due to unhedged risk of foreign currency..however companies only hedge 75 to 80 PC of the total Forex exposure..