AN INVESTIGATION OF FOREIGN EXCHAGE AND ITS RISK MANAGEMENT

Commerce and Management

In this paper the investigation of Foreign exchange and its risk management pertaining to an IT industry has been proposed. To understand the study HCL technologies has considered for analysis. The company has to hammer out its approach to risk management taking into account its specific circumstances. A brief description of company in India have fashioned with its strategy towards foreign exchange risk management. HCL Technologies as one of India's leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. HCL having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 18 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment (M&E). For the quarter ended 31st March 2014, HCL Technologies, along with its subsidiaries had last twelve months (LTM) revenue of US $ 1.5 billion (Rs. 6363 crores) and employed 45,622 professionals. As its operations in many countries, the company is exposed to currency risk. They transact a major portion of their business in USD and the lesser extent other currencies and is thus exposed to currency risk, The company manages risk on account of foreign currency fluctuations through treasury operations using several techniques to mitigate the risk has presented in detail

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