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Service 01 · Banking & Treasury Audit

The sanctioned rate in your letter is not your finance cost.

The gap between the two is where we work.

Most exporters carry a packing credit at 7 to 8 percent on their sanction letter. When every charge is measured against industry benchmarks — FX conversion spread against the CCIL interbank standard, ECGC premium against RBI guidelines, facility structure against what the working capital cycle actually requires — the all-in cost across our client engagements consistently works out to 9 to 11 percent.

The gap is not hidden in one place. It is distributed across six areas — each with its own benchmark, each with a rupee figure attached.

The Gap, In Numbers

A gap of 150 to 300 basis points is not unusual.

On a ₹10 crore packing credit limit, a 200 basis point difference between the rate on your sanction letter and the all-in cost of export finance works out to ₹20 lakh per year — recurring, until measured. The audit finds it, quantifies it, and gives you a negotiation-ready position for renewal.

7–8%
Sanction Letter RateWhat appears on paper
9–11%
All-In Cost, BenchmarkedWhat you actually pay
6 Areas
Where The Gap SitsEach with its own benchmark
The Six Audit Areas

What we audit — and what we benchmark it against.

Each of the six areas below has its own regulatory reference, its own industry standard, and its own method of quantification. Every finding is delivered as a rupee figure with the supporting reference attached.

1 BANK CHARGES

Every debit, reconciled against tariff.

Every debit on your current account and export credit account compared against your bank's own published tariff and applicable RBI directives. Where the basis of charge is incorrect or above industry standard, we quantify the recoverable amount — charge by charge, month by month.

2 FX CONVERSION SPREAD

Measured against CCIL, at the exact minute.

Every inward remittance compared against the CCIL interbank rate at the exact time of transaction. This is the rate at which banks transact with each other — the only valid benchmark for a business of your export volume. The spread above CCIL, measured across 12 months, is your annual conversion cost in rupees.

3 FACILITY STRUCTURE

The right instrument for the right cycle.

Your working capital instruments compared against what your operating cycle and RBI credit norms support. Export receivables on Cash Credit at 9% when post-shipment credit is available at 6.62%, or a Term Loan carrying cost that Packing Credit net of government subvention would carry at half the effective rate — these are structure decisions, not interest rate problems. We evaluate the entire loan portfolio and explore proper blending of loan products — term loan versus packing credit, PCFC versus INR packing credit — without disturbing operations or liquidity. Corrected at renewal.

4 GOVERNMENT SUBVENTION

Every rupee of IES entitlement, claimed.

Your IES entitlement compared against what is actually being credited. Eligible MSME exporters on INR export credit are entitled to 2.75% per annum under the Interest Equalisation Scheme. Where the DGFT registration is incomplete, the subvention is not being received — and every month it remains unclaimed is permanent, not recoverable.

5 INTEREST RECONCILIATION

Rate application, verified line by line.

Actual interest debited compared against sanctioned rate, RBI export credit directives, and applicable tenor rules. Mid-year rate revisions, penal interest, incorrect rate application — each verified against the sanction letter and quantified in rupees.

6 REALISATION & OPEN RISK

Every open position, benchmarked and flagged.

Forward rate on discounted bills, spread on PCFC interest debits, unhedged positions without a governing policy — benchmarked against CCIL rates and RBI hedge accounting norms, and flagged for action with a rupee-value estimate on each finding.

Scope & Deliverables

Simple to start. Structured in delivery.

What We Need From You

Three documents. Nothing commercial.

  • Bank statements — current account and export credit accounts
  • Sanction letter — latest, with any addenda
  • Tariff card — your bank's published charge schedule

Not required: customer names, shipment data, or commercial information of any kind. This audit does not touch statutory compliance or your CA's work — it benchmarks commercial banking costs against the bank's own contracted terms and RBI guidelines. Different scope entirely.

What You Receive

A written report — rupee-wise, action-ready.

  • Charge-by-charge findings — rupee value on every head
  • Total recoverable + negotiable amount — a single figure to work with
  • Priority-ranked action list — what to raise first, and why
  • Supporting references — RBI circular numbers, CCIL rate logs, tariff clauses
Delivered within three weeks
Beyond The Report

We do not stop at the report.

Bank negotiation, facility restructuring, government subvention registration, and monthly monitoring — we support each of these directly. What the audit finds determines what we work on together next.

Bank Negotiation Support Facility Restructuring DGFT / IES Registration Monthly Monitoring

Book a 30-minute diagnostic call — no pitch, no package.

Or WhatsApp us one page of your packing credit or current account statement. We will tell you within 24 hours whether the pattern exists in your case.