Trade Receivables Discounting System - M1 Exchange

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(No Transcript)
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Presentation Agenda
Key pointers covered in this deck

• 1 Introduction
• 2 About TReDS
• Participants Benefits
• Support of Strong Regulator - RBI
• Onboarding Time Process
• TReDS Factoring Reverse Factoring
• 7 M1 Advantage
• 8 Third Party Integration
• 9 Our Management Team
• 10 Vision Mission

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Trade Receivables Discounting System MYND Online
National Exchange (For Receivables)
Trade Receivables Discounting System TReDS is
an online exchange being set up under the
approval of Reserve Bank of India (RBI) to
facilitate discounting of invoices and Bills of
exchange on a PAN India basis.
RBI granted approval to Mynd Solutions in Dec
2015, to set-up and operate TReDS under the
Payment and Settlement System (PSS) Act 2007.
Mynd solutions is one of the very few entities
approved to set up the exchange. The Exchange is
named M1 (Mynd Online National Exchange)
Key participants to be Micro, Small Medium
Enterprises MSME (The Seller), large
corporates including PSUs and Govt. Departments
(The Buyer) and Banks/NBFCs (the Financier)
To provide MSMEs working capital at competitive
rates through an open bid process through
multiple financiers.
Financing to be Without Recourse to MSME
supplier.
Client on-boarding started. First transaction in
the month of January-17.
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Key Participants Benefits
MYND Online National Exchange (For Receivables)
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SUPPLIERS
BUYERS
FINANCIERS

• Opportunity to build quality PSL asset portfolio
  in MSME space
• Reduced operational cost along with improved
  reach to build clientele
• Ease of operation with minimum documentation
• Facility to make better decision making through
  key information availability

• Saving on procurement cost through improved
  negotiation of financing terms for suppliers
• Saving on finance costs by extending credit
  period
• Off balance sheet transactions
• Digital Platform - Lower administration cost for
  vendor financing, payments and settlements

• Easy, fast working capital finance at cheaper
  interest rates
• Without recourse/non-collateral based finance
• Off balance sheet finance sale of receivables
• One time documentation, no need to engage with
  multiple banks
• Receipt of funds within two days from acceptance
  of bid

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Strong Regulator - RBI
MYND Online National Exchange (For Receivables)
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Time Steps for Onboarding
MYND Online National Exchange (For Receivables)
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TREDS - Factoring
Step 1 Supplier delivers the goods/services
(Outside TReDS)
MYND Online National Exchange (For Receivables)
Step 2 Supplier Logs in upload the Invoice
(Rs100)
Buyer
Supplier
Step 3 Validate invoice, convert to Factoring
Unit publish for acceptance
Step 4 Buyer Logs in accepts the Invoice
(Rs100)
Step 3
Step 5 Publish the factoring Unit for bidding
Step 5
Step 6 Financiers bid against the factor
Step 8
Step 10
Step 7 Accepts the Bids ( interest as best bid)
Step 8 Exchange generates the settlement File to
debit Financier and pay Supplier
Financier
Step 9 Exchange debits Financiers bank account
for Rs90 and credit the suppliers bank account
Step 10 On due date, final settlement file is
generated
Step 11 Exchange debits Buyers bank account for
Rs100 credits the financiers bank account
Alerts and Notifications will be sent at every
stage
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TREDS - Reverse Factoring
Step 1 Supplier delivers the goods/services
(Outside TReDS)
MYND Online National Exchange (For Receivables)
Step 2 Buyer Logs in upload the Invoice
(Rs100)
Buyer
Supplier
Step 3 Validate invoice, convert to Factoring
Unit publish for acceptance
Step 4 Buyer Logs in accepts the Invoice
(Rs100)
Step 3
Step 5 Publish the factoring Unit for bidding
Step 5
Step 6 Financiers bid against the factor
Step 8
Step 7 Accepts the Bids ( interest as best bid)
Step 10
Step 8 Exchange generates the settlement File to
debit Financier and pay Supplier
Step 9 Exchange debits Financiers bank account
for Rs90 and credit the suppliers bank account
Financier
Step 10 On due date, final settlement file is
generated
Step 11 Exchange debits Buyers bank account for
Rs100 credits the financiers bank account
Alerts and Notifications will be sent at every
stage
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M1 Advantage
MYND Online National Exchange (For Receivables)
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Digital Supply Chain Process Enhanced Offering
MYND Online National Exchange (For Receivables)
Vendor Onboarding
Vendor Portal
Business Process Management
M1 Xchange
Accounting Recon

• Online Vendor Registration
• Vendor classification Profiling
• Vendor KYC
• Credit spreading
• Master data Management Updation
• Centralized depository

• Self Service Menu
• PO approvals/ vendor self
• service
• PO extraction and validation
• Pre-shipment documentation
• Invoice submission
• Document submissions
• Self Invoice
• DN / CN Status View
• Invoice status inquiry
• Mobile application
• Payment advices
• Invoice Help desk

• Business Process Rule Engine
• Scanning solution
• Primary Verification
• Document archival
• Key field entry through Optical recognition
  (OCR)
• Invoice approval work flow management
• Query resolution monitoring
• DN / CN generation
• Integration with ERP

• RBI regulated first of its kind online exchange
  for receivable financing
• Large corporate buyers, their suppliers and
  multiple banks/NBFC factors on the same platform
  
• Invoice Discounting to be done through open bid
  process

• Auto data flow to ERP
• Automated Vendor Reconciliation Workflow

Single Platform with Seamless Funding Settlement
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Third Party Integration
MYND Online National Exchange (For Receivables)
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The Management Team
MYND Online National Exchange (For Receivables)
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Mission Vision
MYND Online National Exchange (For Receivables)
VISION
To channelize MYNDs leading practices to offer
best-in-class Trade receivables exchange for
MSMEs, Corporates Financiers ensuring seamless
liquidity flow between all stakeholders,
contributing to the countrys growth.
MISSION
To provide solution-based approach adept with
innovation flexibility towards financing
solutions for stakeholders.
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MYND SOLUTIONS PVT. LTD 296, Udyog Vihar,
Phase-IV, Gurgaon - 122001 Haryana, India
Phone [phone] Fax [phone]
E-mail sales_at_m1xchange.com