RMG INFIDEAL RESOURCES

RMG INFIDEAL RESOURCES: Currently using third party facilities through “Structured Trade Financing”, where transaction is routed thru financing third party’s books.

• Financing party charges Actual finance cost + Fixed fees on turnover.
• This financing facility is transaction based (90 Days, 120 Days, 180 Days)
• IMAN takes all P & L exposure thru a separate service agreement
• IMAN invests 5-12% of the CIF value with financier’s bank as margin money
• Financier pays 88-95% of CIF value through financing bank which takes title of cargo
• As the financing bank receives payments, Delivery Orders for release of coal are issued
• All inclusive finance expense is USD 5 – 6 per MT approx. – 3.00% of transaction cost Need of Finance – Adding to Top & Bottom Lines
• IMAN gave away approx. USD 430 Million Turnover to financier(s) books in 1st three years of operation (Opportunity lost for its own books). From CY 2020, IMAN got LC Facility from leading bank and able book all sales its own book
• IMAN paid approx. USD 12.50 Million as finance cost to its financier(s) in CY 2017, 2018 & 2019. IMAN’s Gross Profit & Net Profit reduced by corresponding amounts.
• Third party Finance reduces fallibility to buy and sale at the right time (since it is transactionbased finance model)