Fund Flow Process

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    FUND FLOW PROCESS

  1. After maturity of individual bank documents against export, fund has been credited to the Nostra Account of Corresponding Bank by the negotiating bank.

  1. Then the corresponding bank updates and cross check their ‘FDBC Register’ against their previous information written into, during Export Document Submission.

  1. Then they transfer the fund in foreign currency to the Margin Account by our name. Then they issue credit advice for fund realization with FDBC reference and date. 

  1. After realization of fund bank check whether any Back to Back LC due on the vicinity of that date. If any payment against Back to back LC is due, bank immediately made the payment from margin account.

  1. During the payment of LC they check and update FDBP/ABP Register against the related reference. Then they issue debit advice by our name with reference of LC and date.

  1.  When fund is available to the Margin Account we check whether any liability is lying with the bank against Export ,notably Packing Credit, ECC, Bank Overdraft, Bills Purchase, Source Tax, Bank Charge and Other Commission. Then to save bank interest we communicate with bank and adjust the fund from the Margin Account considering priority.

  1.    After adjustment of liability of related Export Bill available fund is transferred as CM to the Retention Quota Account and as well as to CD/OD Account.

  1. From the Retention Quota Account various payments are made by FDD or FTT against credit card bill, testing bill and inspection bill, expenses of HK office. During the payment we send a Letter of Request to the bank management to take the necessary action. And they act thereto and issue debit advice to us.

  1. Regular day to day overhead and other major overhead are made from CD/OD account by Cheque or by Cash.

  1. EXPORT
  1. Commercial Department sends Export/Delivery Performance Report on daily basis to Finance Department via e-mail.

  1. After receiving Export/Delivery Performance Report collect hardcopy of invoices mentioned on the report from Commercial Department.

  1. Export/Delivery Performance Report is cross checked with the collected Invoices. PO, Style No, Qty, Value, Ex-factory date are cross checked with the report. If anything mismatched with the report, communicate the information to the Commercial Department. As well they send it thereto after making necessary correction.

  1. After confirmation of figures import it to Excel sheet and filter it as well as arrange the database buyer wise, date wise, job wise, style wise on daily basis.

  1. At the month end produce Monthly Export Report in the Excel Sheet and report it to the Manager-Finance. After checking the report Manager- Finance sends it to Chief Financial Officer (CFO) for final approval

  1.   FDBC SUBMISSION
  1. Goes to corresponding bank on weekly basis. Collect bank advices and cross check all export invoices for bank submission date with the Foreign Document Bill Collection (FDBC) Register.

  1. After collecting all information from bank regarding bank submission prepare a Statement of FDBC Submission weekly basis.

  1. Commercial Department sends a  ‘MIS Report for Export Documents’ on weekly basis to Finance Department mentioning invoice submission date. We cross check ‘Weekly Statement of FDBC Submission’ with the ‘Weekly MIS Report for Export Documents’ and confirm invoice value and submission date.

  1. At the month end import all the data from ‘Weekly Statement of FDBC Submission’ to an Excel Sheet along with all the opening data for bills receivable from previous months.

  1. At the month end import all the data from ‘Weekly Statement of FDBC Submission’ to an Excel Sheet along with all the opening data for bills receivable from previous months.

  1. In this excel sheet we update FDBC reference, bank submission date, ex-factory date and due date or tentative due date.

  1. After incorporating Opening Data from previous month import all information to the same excel sheet from ‘Monthly Export Report’ and incorporate thereto.

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