Page 1 Why do we need this process? To save the “spread” cost of purchasing Foreign Exchange from external banks GL accounting for both the FX deals happens automatically. Once agreed both sides should benefit Accounting is consistent across the entities Date: 14 May 02 Presenter: Anil Passi Click to proceed….. For the above reasons this workflow was designed and developed from scratch……

Page 2 Workflows Diagrams ( Main Process) Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement.

Page 3 Workflows Diagrams ( Setup Validation Process) Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement.

Page 4 Workflows Diagrams ( Main Deal Approval Process) Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement.

Page 5 Workflows Diagrams ( Deal Cancellation process) Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement.

Page 6 Internal F/X Transaction Treasury Workshop

Page 7 Internal F/X Transaction Treasury Workshop Main FX Deal

Page 8 Internal F/X Transaction Treasury Workshop Contra FX Deal

Page 9 Why do we need this process? Treasury Workshop Significantly improve lead time in resolving internal FX deals across the Time Zones Automate deal approval process from client Save the hassle of navigation through 6 different windows to approve both ends of the deals.

Page 10 Workflow Deal Settlement Process Deal Entry Screen Overview Of The Internal FX Process Treasury Workshop Buy CAD 25M Sell USD 16M SWIFT To Sell USD SWIFT To Sell CHF Settle Deal Buy USD 16M Sell CAD 25M

Page 11 What does the approver in the Deal Initiating Company See? Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. The approver in the deal initiating company will receive an notification along with the deal details. The approver should then approve or reject the deal.

Page 12 What does the approver in the Contra Company See? Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. The approver in the contra company will also receive an notification along with the deal details. Approver of the deal in contra company should enter the Bank Accounts from which the deal should be performed. The primary bank accounts will be defaulted. Approver may decide to Approve/Reject the deal. Scroll Down the Window

Page 13 Exception Handling Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. One or both the companies Cancel the deal In the ideal world, approval process will be simple, when both ends of the deal are approved, the deals can then be settled In the real world following can happen Deals are not approved before the “Deal Value Date” Approvers have not been setup correctly Banks have not been setup correctly Approver is unavailable

Page 14 Deal rejected Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. In the event of deal rejection both the deals will be cancelled automatically.

Page 15 Deal expires Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. Both the deals will be cancelled. When the deals are cancelled, every treasurer involved in the lifecycle of the deal will be sent a notification confirming the cancellation of deals.

Page 16 No approver Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. A Notification is sent to the Support Team. The support team will co-ordinate with the users to complete the setup

Page 17 No bank account Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. A Notification is sent to the Support Team. The support team will co-ordinate with the users to complete the setup

Page 18 Approver unavailable Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. We can setup upto 3 approvers in Treasury for each Company Each approver will be assigned the precedence of 1,2 or 3 If Approver-1 does not respond in a days time, a reminder is sent. If there is no response to the reminder, then Approver-2 is notified. Approver-2 will be notified only if the value date of the deal has not yet been surpassed. If a deal can not be processed by any of the three approvers, then the deal will be cancelled automatically.

Page 19 Where do we setup the approval limits for FX Deals Treasury Workshop These reports are those distributed to shareholders/investors. The format of the reports and accounting standards / policies are prescribed by law (e.g. Companies Act 1985 in the UK, Federal Code of Obligations in Switzerland, etc.). The level of summarisation in these reports tend to be high, although a substantial amount of “one-off” data is required for additional notes and schedules. The main example of these reports is the annual financial statement. In Oracle, we can assign limits to dealers for every possible Deal Type. A request for Approval will be sent to the approver only if dealers Limit Amount is greater than the deal value. If none of the approvers in Treasury have the rights to approve a specific FX deal a notification will be sent to Support team.