A. V. Rajwade & Co. Pvt. Ltd. (AVRCPL), has been advising Indian corporates on understanding of derivative products & their pricing and usage, virtually since the introduction of derivative products in the Indian market. The company has a reputation for not only keeping with the market on these issues, but also for leading the thinking from time to time.

The Company evaluates derivative proposals for a large number of corporates on an ongoing basis, and acquaints its clients to the jargon as well as the working/mathematics of the various derivatives-based strategies.

Recently, we have also been assisting corporates in analyzing complex derivative structures which have resulted in large losses for them, so as to assess if any “mis-selling” had occurred, and whether the structures at all meet with the extant RBI regulations.

We analyze the treasury’s use of derivatives, policies, procedures and MIS in addition to analyzing bank margins.

Mark to market (MTM):
We have in-house capabilities for valuation of a range of derivatives and undertake such assignments for our clients.

Accounting Standard 30 (AS 30) Compliance and Implementation:
AS 30, “Financial Instruments: Recognition & Measurement”, which corresponds to the International Accounting Standard 39 and deals in hedge accounting, has sweeping changes in accounting of foreign currency derivatives. We at AVRCPL, help clients in;

  • Preparation of hedge documentation ("Currency Hedge Memorandum")
  • Accounting Entries
  • Valuation and Hedge Effectiveness Testing (HET).