Treasury Management in general

In the ever-widening landscape of corporate finance, treasury management assumes critical importance. Treasury management, when done right, is the one of the keys to company&aposs stable and profitable longevity. With myriad options, treasury is not restricted to simple deposit or term loan anymore and demands as much attention as the core business itself

Treasury Management in GCC

GCC&aposs financial and treasury sector, driven by energy-based growth as well as improved focus on non-energy activities, is in the midst of a complete modernization. This has led to significant credit demand to support investment requirements in the region. GCC companies continue to be majorly supported by traditional financing options like bank funding to help achieve their investment goals.

Loan Management in Kuber

Our product Kuber TMS™ has been built with the following in mind - simple, user-friendly interface supporting the complex needs of diverse treasury products. One such treasury product that we support is the Loan Management which is divided into management of Facility and Drawdowns/ Loans/ Borrowings with all its bells and whistles. The product has been designed in such a way that it is able to cater to both the basic as well as complex requirements that are very unique to GCC region

Facility and Drawdowns - The Regular

Companies usually maintain a Facility with the banks from which they propose to avail various types of borrowings as and when needed. Such facilities usually involve charges that could be one-time or recurring. Kuber TMS™ covers the following basic aspects with respect to facility management:

1. Creation of Facility record with its type, start and end date, amount, etc
2. Record of Security and Covenant details and one-time/ management/ arrangement fees as well as any recurring fee with its own frequency
3. Generation of all fee related accounting entries in draft status enabled for transfer to ERP GL

Facility and Drawdowns - Above and Beyond

In addition, the following complex requirements are also met:

1. What is the Facility Hierarchy?
• Is it the Parent Facility or Child Facility linked to a Parent Facility?
2. How is Facility Utilization proposed to be tracked?
• Is it based on the Original Loan Principal availed against the Facility or the Outstanding Balance at the time of tracking?
3. How is the Facility Limit proposed to be controlled?
• Is it based on the Child Facility limit or the Parent Facility Limit?
• Should there be a warning or stop order?
4. Should the Interest Due Date of all drawdowns from the Facility be synchronized so that they are payable on the same date? or
• Should each drawdown follow their own due date?
5. Should the interest due calculated till the date of principal repayment be clubbed with principal repayment? or
• Should the interest due payments remain separate from the principal repayment?

Kuber TMS™ has answers to all of these questions. There are placeholders that obtain user responses for these scenarios and use them in calculation and reports. As a result, the product is customized for each user, by default, right out of the box!

Drawdowns - What else?

With respect to drawdowns, Kuber TMS™ covers all the scenarios and requirements like the following:

1. Interest Due payments and accounting
2. Monthly Interest Accruals and accounting
3. Principal repayments and accounting supporting balloon repayments, bullet repayments, etc.
4. Link to Benchmark and automatic updation of rates to linked loans
5. Detailing like Shariah vs Non-Shariah, Loan Type, Loan Duration, etc. for better reporting
6. Plug-and-Play modeled reports for financial statements(like IFRS Risk Reports, Investment Level-based Reports, etc.)

Are you prepared to witness a financial transformation? Connect with us, and we'll embark on this journey to elevate your organization's treasury operations.

Kuber TMS™

For a personalized consultation and to discover how Kuber TMS™ can automate the process and accounting:

• Email: [email protected]
• Visit us at www.kubertms.com .Let&aposs unlock the potential of your Treasury Department together.