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AMFI-registered MFD · ARN-286779

Corporate treasury for owner-led businesses

Idle business cash, put to work carefully.

Is your company’s cash sitting in FDs, much of it as margin? We find what you won’t need for a while and put it to work in your company’s name. Your banking stays exactly as it is.

Book a review callTry the calculator
Your company’s cashAn example

₹60 lakh sitting idle

Not needed for 90 days, yet locked in FDs earning 6.5%

₹ 1.4 crore in FDs held as marginNeeded in 90 daysSitting idle28%of your ₹ 5 crore of limitsis tied up as margin
Held as margin
₹ 1.4 crore
Interest a year, before tax
₹ 9.1 lakh
Needed in 90 days
₹ 80 lakh

Before anything else

Your banker stays. Your lending stays.

It’s your first worry, so here’s the answer up front.

Your banker stays

We work alongside your bank, never instead of it.

Your limits stay

Guarantees, LCs and limits stay on the terms you have.

We don’t lend

We only look at cash your company already has.

Check your books

Where your idle cash usually hides.

Rarely one big balance. Usually a few sensible decisions nobody has looked at since.

  1. 1FDs held as margin for guarantees and LCs, long after they were needed
  2. 2Deposits that roll over by default every time they mature
  3. 3Surplus in your current account between payment cycles
  4. 4Cash set aside early for advance tax and GST

Free surplus cash calculator

What is your idle cash earning?

Put in your bank limits, the FDs held as margin, and the cash you need over the next 90 days.

Your company’s numbers

₹ 5 crore

The non-fund limits your bank has sanctioned.

₹ 1.4 crore

Anything else sitting in deposits or idle in current accounts.

₹ 80 lakh

Salaries, suppliers, taxes, EMIs: what must be on hand.

Your result

₹ 1.4 crore is locked as margin, earning 6.5%. ₹ 60 lakh of it isn’t needed for 90 days.

Interest a year, before tax
₹ 9.1 lakh
Not needed for 90 days
₹ 60 lakh
Margin as a share of limits
28%

What your bank has to confirm in writing before anything changes

  1. 1Whether it will accept a lien on mutual fund units as margin in place of FDs, and the haircut it would apply.
  2. 2The margin it requires on each guarantee and LC today, and whether that would change.
  3. 3Any penalty for closing the FDs before they mature.
  4. 4That your sanctioned limits, pricing and terms stay exactly as they are.
  5. 5How long releasing or substituting margin takes, and who signs it off.

Your banker stays. We are not moving the relationship, and the bank keeps the lending. We are not a lender and we do not arrange credit.

Want us to look at this with you?

Leave your details and we will set up a 20-minute review of these numbers with you, and your CA if you like. No product is named, and nothing changes without your bank’s written confirmation.

Or pick a time yourself

Used only to reply to you. Never sold or shared.

Where idle cash can go:Liquid fundsOvernight fundsMoney market fundsArbitrage funds

Next

After the calculator, here’s what happens.

Bring your CA along if you like.

  1. 1

    Book a review call

    Twenty minutes on your numbers. Nothing is sold.

  2. 2

    Get your one-page plan

    What to do, and why, explained to you in person.

  3. 3

    Invest with confidence

    In your own name, after a suitability check, and reviewed with you every year.

You start with your numbers, not a product. The plan is where we earn your business.

Client situations

Situations like yours, and how the plan came together.

Illustrations drawn from the situations we work with. No names, and no returns.

Corporate Treasury · An illustration

Margin FDs nobody had looked at in years

A family-run manufacturing company near Mangalagiri

Bank guarantee and LC limits backed by FDs held as margin, some of them placed years earlier and renewed automatically. The interest was taxed every year, and nobody was sure how much of the cash was really needed.

Now: Limits and pricing unchanged. The cash map is updated each quarter, before advance tax dates.

Surplus cash calculator

Corporate Treasury · An illustration

Big receipts at harvest, payments all year

An agri-trading partnership in the Guntur district

Large receipts in a few weeks after each harvest, then payments to farmers, transporters and the tax department spread over months. The surplus sat in a current account between them.

Now: The calendar is redrawn after every harvest. The current account holds what’s needed this week, not this season.

Liquid funds, explained
What they asked, and what each plan set out

FAQs

Your questions about company cash.

Will this change our relationship with the bank?
No. Your banker stays, and your limits and lending stay with them. Nothing changes until your bank has confirmed in writing how margin and limits would be treated.
Do you arrange loans or credit?
No. We are not a lender and we do not arrange credit.
Where would cash you don’t need for 90 days go?
Usually into liquid, overnight or money market mutual funds, held in the company’s own name and chosen for how soon the money may be needed. No scheme is named until after a suitability check.
What approvals does the company need?
Usually a board resolution authorising investment in mutual funds and naming the signatories, along with the company’s KYC. Your CA and company secretary will know the form; we work with them on it.
How is it taxed for a company?
Differently from an individual, and differently for each type of fund. We compare the post-tax position with your CA before anything moves.
Can an LLP or partnership firm invest in mutual funds?
Yes. An LLP or a partnership firm invests in its own name and PAN, with the LLP agreement or partnership deed, an authorisation from the partners naming who can invest and redeem, and the firm’s KYC. Payments come from, and redemptions go to, the firm’s own bank account.
What KYC documents does a company need to invest?
Usually the certificate of incorporation, the memorandum and articles, the company’s PAN, a board resolution with the list of authorised signatories, KYC for those signatories, a declaration of beneficial owners, a FATCA declaration, and proof of the company’s bank account. We help put the set together.
Is a board resolution needed to invest company money in mutual funds?
Yes: a resolution authorising the investment of surplus funds and naming who can invest and redeem. Whether section 186 of the Companies Act applies to mutual fund units is a question for your company secretary; many take the view that it does not, but confirm it for your company.

Your next step

Know your money will do what you need it to.

  • Twenty minutes, on your own numbers
  • Online or in person
  • Nothing sold
Book a review call

CA, company secretary or chamber with clients holding idle cash? Invite us to run a session