THINK FOREX THINK DIGITAL Updated as on February 2020 The Forex - - PowerPoint PPT Presentation

THINK FOREX THINK DIGITAL

Updated as on February 2020

Market Size Growth Rate Key Drivers

Estimated Market Size – Retail Forex

USD 20 – 25 Billion

Annual Growth Rate est.

10-15%

• Changing Demographics
• Rising Disposable Income
• Relaxation in Forex Regulations
• Overseas Education
• Growth in Business & Leisure Travel

Outward Remittances – LRS – USD Million

Source : RBI Website

The Forex Industry

1419 1897 2353 1372 2170 2937 651 2568 4022 1200 1536 2021 0.0 3000.0 6000.0 9000.0 12000.0 2015-16 2016-17 2017-18 Education Travel Maintanance Others

39%

Omni-channel Digital Service Provider

• Digital Platforms
• 20+ Branch Network
• Authorized Dealer Category II

Axis Bank HDFC Bank ICICI Bank Yes Bank Banks (Authorised Dealers Cat I) Forex Players (Authorised Dealers Cat II) Thomas Cook Ebix Cash Unimoni Cox & Kings Bookmyforex.com Fxkart.com Nafex.com Extravelmoney.com Digital Players

The Competitive Landscape

Company Profile

1986 Date of Incorporation & Listing in BSE, Started primarily with transportation, bill discounting, hire purchase, merchant banking 1990 – 91 First listed company in India to get FFMC License from RBI – Start of Forex Operations 2000 Started MTSS

• perations as principal

agent of Western Union 2006 First FFMC to get upgraded to AD2 License 2009 Change in Promoters - Acquisition by Smart Global – Spice Group from Patel’s 2009 – 2016 Growth in MTSS Business with a Network

• f 9000 Agents Pan India, Principal agent
• f Western Union, Ria & Instacash

through wholly-owned subsidiary Goldman Securities pvt ltd. 2016 – 17 Surrender of NBFC License & Sale of MTSS Business to EBIX 2017 – July 2019 Focus on Forex Business, Launch

• f Digital Platform for Corporate

& Agent Segment & Digital transformation of Forex Business

 WSFX, Wall Street Finance Ltd. is a part of Smart Global Group, a US$ 2 Billion Conglomerate, RBI Licenced authorized dealer category II providing customized Foreign Exchange services across all customer segments with a focus on corporate & student  Digital Solutions for Forex requirements of Corporates and Agent Channel  Facilitation of Travel Insurance  Pan India presence with 20+ branches across major key cities in India  Partnership with Yes Bank & Thomas Cook for their Prepaid travel card solutions  Partner with IndusInd Bank, Yes Bank & Axis Bank for Outward Remittances  Catering to leading customers like E&Y Group, Schindler Group, Siemens Group, Synopsys Group, HDFC Credila etc.

July 2019 Launch of WSFx Smart Currency Card

Board

Asha H. Shah Woman - Independent Director

• Mr. Brij Gopal Daga

Independent Director

• Mr. Sudip Bandyopadhyay

Independent Director

• Mr. N. Srikrishna

Whole-Time Director and Chief Executive Officer

• Mr. Ramesh Venkataraman

Chairman – Non-Executive Director

• Ms. Asha Shah has worked for over 30 years

in UTI Mutual Fund (erstwhile Unit Trust of India) both in Corporate Office as well as Branch Network, including heading the UTI MF's largest branch in India. She has experience and expertise across all major functions such as Business Development, Marketing, Publicity, Product Development, Branch Operations and Sales & Distribution Network. She has travelled widely across Gulf, Europe and Asia.

• Mr. Bandyopadhyay has over 30 years
• f

rich and diverse experience in various areas of finance and financial

• services. His area of expertise includes

NBFC, Microfinance, equity, commodity and currency markets, wealth management, mutual fund, insurance, investment banking, remittance, forex and distributionof financial products.

• Mr. Venkataraman runs Avest, a private equity investment firm advising a sovereign

wealth fund and a leading family office in the Middle East as well as making direct investments in Asia. He is currently also on the board of various Companies in India and

• verseas where in most cases he chairs the Executive Committee or equivalent.

Starting his career in the then Exchange Control Department, Mr. Daga served RBI for

• ver a

quarter of century in various capacities. He joined UTI in 1987 as a Deputy General Manager and retired from there as Executive Director in 2001. He was Managing Director

• f

Central Depository Services (India) Ltd. during 2001-03. He has served

• n the boards of

leading listed and unlisted companies as nominee of UTI. Currently, Mr. Daga is a member of the Mutual Fund Advisory Committee

• f SEBI besides being a board member of a MF

trustee company and NBFCs. He has over 22 Years experience in foreign exchange industry and has comprehensive knowledge of foreign exchange business including prepaid products. He joined the Company in July 2017 to head the Forex business and has been instrumental in the digital transformation of the company to a Digital Forex enterprise.

• Mr. N. Srikrishna

Whole-Time Director and Chief Executive Officer

• Mr. Dipesh Dharod

Chief Financial Officer

• Mr. Roshan Dalal

Business Head - Wholesale

• Mr. Chethan S A

Business Head - Retail Forex

• Ms. Chaitali Desai

Company Secretary

• Ms. Vanishree Visrodia

DVP - Corporate & Strategic Alliance

• Mr. Praveen Koppikar

DVP - Corporate & Strategic Alliance

Key Management

Over 15 years of experience, Dipesh was previously associated with Pheroze Framroze where he rose to the ranks to head the finance function. A Forex & Treasury veteran in Money Changing Industry with

• ver

27 years

• f

experience, Roshan was last associated with Weizmann Forex Ltd. Over 15 years of experience in Forex Industry. Facilitating company's activity in sales, marketing and remittance PAN India. His previous assignment was with Essel Finance VKC Forex Ltd as National Head, Remittance. Over 14 years of experience in the money changing business. Prior to joining WSFL she was associated with Centrum Direct. She heads the Strategic Alliance & Corporate tie-ups Pan India. Over 12 years of experience in the secretarial domain, Chaitali was last associated with IL&FS Securities Services Ltd. Over 24 years of experience in money changing industry with prior experience in Cox & Kings, Tata Capital and Reliance Capital. He has over 22 Years experience in foreign exchange industry and has comprehensive knowledge of foreign exchange business including prepaid products. He joined the Company in July 2017 to head the Forex business and has been instrumental in the digital transformation of the company to a Digital Forex enterprise.

Products & Partners

Currency Notes Forex Card Outward Remittance Receive Money Travel Insurance Traveller's Cheque

• Leisure segment

deals in Currency Notes, Travel Card, Travellers cheques, DDs & TTs

• Major customers are

individual travellers, group travellers etc.

• Corporate segment

deals in Currency Notes and Travel Card

• Customers here are

business travellers, professionals and MICE travellers

• Student segment deals

in Foreign currency, prepaid cards, outward remittances/FDD’s for university fees/personal expenses

• Student segment caters

to the millennials travelling abroad for studies

• Wholesale segment

deals only in currency notes

• Major activity involves

domestic purchase and sales between authorized dealers, exports and imports

• Major players in this

segment are Banks, AD II and FFMC

Wholesale Leisure Corporate Student

Customer Segments

• This segment caters to

Foreign currency, prepaid cards,

• utward remittances
• The segment caters to

tour remittances, visa fees, film shooting, educational tie up etc.

Tour Operators/Others

Wholesale Corporate Leisure / Personal Students Tour operators / Others Currency Notes Travel Card Telegraphic Transfer (AD1/AD2) Foreign Demand Draft Traveller’s Cheque

Product – Segment Map

Segments Products

Corporate Platform Agent Platform Consumer Platform Wholesale Platform WSFx Smart Currency Card

Automated Forex Ordering Platform customised to manage forex requirements of Large Corporate, SME & MSME. Live Platform for Agent Partners (travel agents, educational consultants) to order Foreign Exchange for customers, Tour Remittances. Providing high visibility of transactions with trust and transparency. Live B2C Platform and consumer app for end customer for ordering Forex and Outward remittance. Integration with Card Management app. Under Development Automation of Wholesale Ordering Process. Under Development

• Digitally Enabled
• Multi Currency
• App enabled
• Tie – up in Place with Bank and

Technology provider

• Integration with Consumer APP

Digital Transformation

Live

Corporate Governance

Independent Board Committees Compliance Internal Audits

• 7 Member Board
• 4 Independent Directors
• 1 Promoter Director
• Audit Committee - Chaired by
• Mr. Brij Gopal Daga
• Nomination and Remuneration

Committee - Chaired by

• Mr. Sudip Bandyopadhyay
• Stakeholders Relationship

Committee - Chaired by Mr. Sudip Bandyopadhyay

• Corporate Social Responsibility –

Chaired by Mr. Brij Gopal Daga

• Policy Audit
• Process Audit
• Functions Audit
• Head Office and Branch Audit

depending on the size will be on monthly or quarterly basis

• Internal Compliance Committee
• Concurrent Audit of Branches
• System Level Controls
• Training & Development

Forex Business – Risk Management

Corporate & Retail Business : Sale & Encashment of Currency Notes, Prepaid Cards

• As corporate require a minimum processing time, we are exposed to Credit risk which is mitigated by Customer Acceptance Policy and Credit Policy

where customer is profiled as per his business type, market standing, financial strength and limits are fixed and monitored with system level controls

• For Foreign Currency – Currency Balances which are maintained in branches for Sale purpose, the risk arising out of volatility is managed by taking

appropriate hedge through Future contract

• For Prepaid Cards Sales – Sale is hedged back to back with Card principals and the risk of Exchange rate volatility is marginal

Outward Remittance Business : Permissible outward remittance transactions under LRS

• There is minimal risk as all Outward remittance transactions are booked back to back with the bank treasury.
• Depreciation of Currency has some business impact as there is postponement of transactions by customers during periods of extreme volatility

Wholesale Business : Sale & Encashment of Currency Notes

• For Foreign Currency – Transactions are done on a back to back basis, any inventory is earmarked for a back to back confirmed sale / purchase to be

executed on the same day or subsequent day. Balance inventory is covered through Forward / Future contract to minimize open position

• High volatility in Currency has a business impact in terms of availability of currency at competitive price points.
• Import & Exports are hedged to minimize exchange volatility through forwards contracts and coverings with overseas supplier / buyer

Compliance:

• Being in the regulated space, the company has Concurrent Audits done by Independent Auditors, Training & Development for employees, system level

controls, strong AML policy framework monitored by Principal Officer and the Internal Compliance Committee

Other Risks:

• Are Covered through Special package policy covering transit risk, fidelity risk, Fire & Accident etc. D&O Policy, Marine policy of EXIM, commercial

general liability policy & other employee welfare policy have been taken to minimize risk at various levels.

Comparative Quarter on Quarter – Revenue & Expenses

INR Lakhs

413 413 460 460 566 566 590 590 544 544 688 688 820 820 989 989

200 400 600 800 1000 1200

Revenue From Operation

613 399 448 398 394 442 508 554

100 200 300 400 500 600 700

Selling, General & Admin Exp

Priority Segments – Forex Turnover

0% 19% 60% 93% 80% 117% 137% 320%

Outward Remittance

0%

• 2%

15% 124% 39% 44% 42% 126%

Prepaid Card

Note :

• The growth on both charts are pegged on Q3/2017-18 as the base year and growth are shown on the base year
• Prepaid cards and outward remittance segment – seasonality (students) and hence the spike in Q2 of 18-19 & Q2 of

19-20 is seen from the above graph

Forex Standalone Results : Quarter on Quarter

Profit and Loss Account – Abstract (Standalone) INR Lakhs 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Unaudited) Revenue from Operations 988.64 820.42 688.08 543.83 590.04 565.84 459.92 412.61 Less: Direct Cost 345.84 285.10 268.89 187.42 178.25 176.63 155.07 136.81 Revenue from Operations (Net) 642.80 535.32 419.19 356.41 411.79 389.21 304.85 275.80 Other Income 47.31 51.80 100.39 82.18 36.81 58.36 70.63 37.70 Total Revenue 690.12 587.12 519.58 438.59 448.61 447.57 375.48 313.50 Selling, General & Admin Exp 554.10 507.52 441.86 394.06 397.51 447.77 398.72 613.10 EBIDTA 136.02 79.60 77.72 44.53 51.09 (0.20) (23.24) (299.59) Finance Cost 48.07 32.79 29.11 30.92 34.87 31.96 31.40 61.11 EBDTA 87.95 46.81 48.61 13.61 16.22 (32.15) (54.64) (360.70) Depreciation 19.93 14.47 5.33 10.77 10.77 12.27 31.29 7.21 PBT 68.01 32.34 43.28 2.84 5.45 (44.43) (85.93) (367.91) Exceptional Item

• - - - - - - 3,821.66

Tax Expense 26.13 10.08 2.05 (0.50) (2.70) (3.88) 0.18 796.29 Other comprehensive income (8.30) 1.17 (9.75) 4.81 9.62 - 16.21 1.01 PAT 33.58 23.43 31.48 8.14 17.77 (40.55) (69.90) 2,658.47 Quarter Ended Particulars

Forex Standalone Results : Quarter on Quarter

Profit & Loss Statement Balance Sheet

Financials

Pariculars (Rs. In Lakhs) Apl17 to Mar18 * Apl18 to Mar19 Apl19 to Sep19 ASSETS AS AT Mar-18 Mar-19 Sep-19 NON-CURRENT ASSETS Turnover Tangible Assets 94.25 87.31 87.92 MTSS 206,900 Investment Property 49.55 - - Forex 172,640 256,042 168,749 Other Intangible assets 27.04 239.68 388.96 Intangible Assets Under Development 216.25 282.46 189.67 Fixed Assets 387.09 609.45 666.55 Revenue from MTSS 1,638.17 16.52 3.97 Non-Current Investments 17.52 17.71 17.10 Revenue from Forex 1,812.24 2,371.27 1,805.09 Deferred Tax Assets [Net] 129.42 325.15 78.62 Operational Revenue 3,450.41 2,387.79 1,809.06 Long Term Loans And Advances 9.63 - - Other Income 413.85 277.74 99.11 Other Non-Current Assets 64.39 198.89 456.84 Total Revenue 3,864.26 2,665.53 1,908.17 Total Non-Current Assets 220.97 541.74 552.56 CURRENT ASSETS MTSS 839.47

• Current Investments

10.03 10.12 10.16 Forex 583.55 811.19 630.94 Inventories 767.95 200.90 534.43 Total Direct Cost 1,423.02 811.19 630.94 Trade Receivables 1,202.74 1,101.50 2,054.58 Cash And Cash Equivalents 3,277.30 2,863.33 3,131.93 Net Revenue from MTSS 798.70 16.52 3.97 Short Term Loans And Advances 204.18 213.13 213.13 Net Revenue from Forex 1,228.69 1,560.08 1,174.15 OtherCurrentAssets 258.33 314.08 318.97 Other Income 413.85 277.74 99.11 Total Current Assets 5,720.53 4,703.06 6,263.20 Total Net Revenue 2,441.24 1,854.34 1,277.23 Total Assets 6,328.59 5,854.26 7,482.31 SHAREHOLDER'S FUNDS Expenses Equity Share Capital 1,159.84 1,159.84 1,159.84 Manpower cost 1,161.34 1,039.53 676.44 Reserves and Surplus 2,714.13 2,756.94 2,615.37 Finance cost 312.45 126.86 80.86 Total Shareholders Funds 3,873.97 3,916.78 3,775.21 Depreciation & Amortisation 60.86 39.15 34.40 NON-CURRENT LIABILITIES Other Expenses 1,194.15 641.65 385.18 Other Long Term Liabilities

• - -

Total Overheads 2,728.79 1,847.19 1,176.88 Long Term Provisions 17.66 37.72 60.70 Total Non-Current Liabilities 17.66 37.72 60.70 PBT before Extra-ordinary items (287.55) 7.15 100.35 CURRENT LIABILITIES Add: Exceptional Items 3,821.66

• Short Term Borrowings

1,552.14 974.66 1,595.81 PBT after Extra-ordinary items 3,534.11 7.15 100.35 Trade Payables 415.27 676.68 1,512.38 Less: Taxes 852.89 (5.02) 36.21 Other Current Liabilities 426.30 212.29 498.42 PAT 2,681.22 12.17 64.14 Short Term Provisions 43.26 36.13 39.79 Add: Other Comprehensive Income 19.24 4.68 (7.13) Total Current Liabilities 2,436.97 1,899.75 3,646.40 Total Comprehensive Income 2,700.46 16.85 57.01 Total Capital And Liabilities 6,328.59 5,854.25 7,482.31 * MTSS division has been sold effective 4th October 2017 For historical data please visit: https://wsfx.in/investors/financials

Business Advantage

One Stop Forex Shop Digital Platforms Fast Processing and Delivery Pan India Network Best Competitive Rates

Contact Us

Wall Street Finance Ltd.

113-122, 01st Floor, "A"- Wing, Chintamani Plaza, Andheri Kurla Road, Chakala, Andheri (East), Mumbai - 400 099. 022 62709600 info@wsfx.in www.wsfx.in

https://twitter.com/wsfx_in https://www.facebook.com/wsfx.in/ https://www.instagram.com/wsfx_in/ linkedin.com/company/wsfx

The material in this presentation has been prepared by Wall Street Finance Limited and is general background information about Wall Street’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters and in particular, you should seek independent financial advice. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Wall Street’s businesses and operations, market conditions, results of operation and financial condition and specific provisions. Readers are cautioned not to place undue reliance on these forward looking statements. Wall Street does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the

• ccurrence of unanticipated events.

While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Wall Street’s control. Past performance is not a reliable indication of future performance.

Disclaimer