A Final Report 2003

A FINAL REPORT

ON TASKS & TARGETS,ACHIEVEMENTS DONE IN

“UAEXCHANGE & FINANCIALSERVICES LTD.”

COMPANY GUIDE

Mr. ARSHED AHMED

FACULTY GUIDE

Mr. VIJAY SAGAR

SUBMITTED BY

S. KARTHIKEYA GUPTA

(5981001055)

ROOTS BUSINESS SCHOOL

HYDERABAD

DECLARATION

I, S. Karthikeya Guptha student of Roots Business School, bearing enrollment no 5981001055 do here by declare that this project titled “EARNING OF RS 10000 PROFIT FROM ALL PRODUCTS IN UAE EXCHANGE” submitted by me to the department of management studies is a bonafide work undertaken by me and it is not submitted to any other university or institution for the award of any degree diploma /certificate or published any time before.

CERTIFICATE

This is to certify that the summer internship project entitled “EARNING OF RS 10000 PROFIT FROM ALL PRODUCTS IN UAE EXCHANGE” is a bonafide work of Mr. S. KARTHIKEYA GUPTHA has been done under my supervision in partial fulfillment for the award of Master of Business Administration 2009-11

Date:

Place:

ACKNOWLEDGEMENTS

I am very thankful to UAE XCHANGE & FINANCIAL SERVICES LTD, which provided me with an opportunity to carry out my management research project entitled “EARNING OF RS 10000 PROFIT FROM ALL PRODUCTS IN UAE EXCHANGE”

I express my thanks to Mr. ARSHAD AHMED, UAE XCHANGE & FINANCIAL

SERVICES LTD providing we with valuable suggestions .his constructive appreciation and continued interest in work were vital for successful completion of the project

I express my hearty thanks to my faculty guide Mrs. SHOBHA NARAYANA, ICFAI NATIONAL COLLEGE for guiding me with patience and helping me in designing my project

Last but not least I wish to knowledge the whole-hearted co-operation of the employees at METLIFE INDIA INSURANCE, KURNOOL for providing a conductive environment to carry out my project work

CONTENTS 3 C REPORT

1. INTRODUCTION 2. THE COMPANY 3. THE CUSTOMERS 4. THE COMPETITION

SWOT ANALYSIS

WHO’S WHO

Targets/task set

Strategy adopted

Analysis of performance v/s target. Reasons for variance, if any

Problems/constraints/limitations

Learning’s in the executive training

OBJECTIVES

SIP is a beautiful program for the MBA students to make them professionals.

This program has been placed for the students for the practical exposure to the corporate world.

To apply the theoretical concepts in real work

Get an exposure to corporate culture

To know company’s strengths and weaknesses along with its opportunities and

threats

Inculcate company’s values and ethics

Generating business to the company

To gain a deeper understanding of the work, culture, deadlines, pressure etc. of an

organization,

To reach the target.

UAE Exchange

Introduction:

UAE Exchange – Truly the World’s Trusted Money Transferrer

UAE XCHANGE is the brain-child of visionaries H.E. Abdulla Humaid Ali Al Mazroei, Chairman and Dr.B.R.Shetty, MD and CEO, which began operations in 1980, grew to become the leading global remittance brand. Its operations spread across five continents with a strong network of close to 500 direct offices in 22 countries. Apart from the core business of remittance and foreign exchange, UAE Exchange provides a wide range of allied products and services for the convenience of its esteemed customers.

Based in Abu Dhabi with Mr.Y Sudhir Kumar Shetty, COO – Global Operations, at the helm, UAE Exchange has been setting new standards in the global remittance industry with diversified product and service offerings supported by the deployment of latest technologies, resulting in excellent customer service and unmatched market presence.

Constantly striving to provide more value to customers and in the process growing exponentially has earned UAE Exchange the recognition as a ‘Super brand’ for 2009 and 2010. The Super brands Council, the independent authority that honors branding excellence and achievements in various sectors across the world have conferred this honor on UAE Exchange.

Quality-driven approach with a customer-centric perspective has been the benchmark of UAE Exchange operations. And it is this same penchant for excellence that has won the global remittance major various global business excellence and quality awards including the esteemed ISO 9001:2008 certification, Dubai Quality Award and Sheikh Khalifa Excellence Award (SKEA) for the Finance sector in 2009.

Winning the prestigious UAE Emiratisation Award from the HRD committee in the Banking & Financial Sector was yet another feather in its colorful cap. The DHDA Award under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum for efforts and achievements in the development of UAE Nationals added more luster.

Over 6,500 trained multi-cultural UAE Exchange personnel representing more than 40 nationalities, across the globe, strive to ensure customer delight. So every customer, no matter which part of the globe he walks in from, will get the same attention and quality service to his complete satisfaction. This customer-centric approach makes UAE

Exchange a people’s brand. And it’s safe and fast transaction process makes it the World’s

Trusted Money Transferrer, which is an acclaim that the brand earned from its relentless service of thirty years.

A prominent link in the prestigious conglomerate NMC Group, UAE Exchange stands on three values Knowledge, Integrity, Commitment. The brand is driven by People, Product and Process, which are in tandem with the vision set by its founders, guiding it in its pursuit for excellence. And the process delivering more value to its esteemed customers worldwide.

Forex

The foreign exchange market (Forex, FX, or currency market) is a global,

worldwide decentralized over-the-counter financial market for trading currencies.

Financial centers around the world function as anchors of trading between a wide range

of different types of buyers and sellers around the clock, with the exception of weekends.

The foreign exchange market determines the relative values of different currencies.

The primary purpose of the foreign exchange is to assist international trade and

investment, by allowing businesses to convert one currency to another currency. For

example, it permits a US business to import British goods and pay Pound Sterling, even

though the business's income is in US dollars. It also supports speculation, and facilitates

the carry trade.

In a typical foreign exchange transaction, a party purchases a quantity of one

currency by paying a quantity of another currency. The modern foreign exchange market

began forming during the 1970s after three decades of government restrictions on foreign

exchange transactions (the Breton Woods system of monetary management established

the rules for commercial and financial relations among the world’s major industrial states

after World War II), when countries gradually switched to floating exchange rates from

the previous exchange rate regime, which remained fixed as per the Bretton Woods

system.

The foreign exchange market is unique because of

its huge trading volume representing the largest asset class in the world leading to

high liquidity;

its geographical dispersion;

its continuous operation: 24 hours a day except weekends, i.e. trading from

20:15 GMT on Sunday until 22:00 GMT Friday;

the variety of factors that affect exchange rates;

the low margins of relative profit compared with other markets of fixed income;

and

The use of leverage to enhance profit and loss margins and with respect to account

size.

As such, it has been referred to as the market closest to the ideal of perfect

competition, notwithstanding currency intervention by central banks. According to

the Bank for International Settlements, as of April 2010, average daily turnover in global

foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20%

over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign

exchange market had put the average daily turnover in excess of US$4 trillion

The $3.98 trillion break-down is as follows:

$1.490 trillion in spot transactions

$475 billion in outright forwards

$1.765 trillion in foreign exchange swaps

$43 billion currency swaps

$207 billion in options and other products

Market Size and liquidity:The foreign exchange market is the most liquid financial market in the world.

Traders include large banks, central banks, institutional investors, currency speculators, corporations, governments, other financial institutions, and retail investors. The average daily turnover in the global foreign exchange and related markets is continuously growing. According to the 2010 Triennial Central Bank Survey, coordinated by the Bank for International Settlements, average daily turnover was US$3.98 trillion in April 2010 (vs. $1.7 trillion in 1998). Of this $3.98 trillion, $1.5 trillion was spot foreign exchange transactions and $2.5 trillion was traded in outright forwards, FX swaps and other currency derivatives.

Trading in the UK accounted for 36.7% of the total, making UK by far the most important global center for foreign exchange trading. In second and third places, respectively, trading in the USA accounted for 17.9%, and Japan accounted for 6.2%.

Turnover of exchange-traded foreign exchange futures and options have grown rapidly in recent years, reaching $166 billion in April 2010 (double the turnover recorded in April 2007). Exchange-traded currency derivatives represent 4% of OTC foreign exchange turnover. FX futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.

Most developed countries permit the trading of FX derivative products (like currency futures and options on currency futures) on their exchanges. All these developed countries already have fully convertible capital accounts. A number of emerging countries do not permit FX derivative products on their exchanges in view of controls on the capital accounts. The use of foreign exchange derivatives is growing in many emerging economies. Countries such as Korea, South Africa, and India have established currency futures exchanges, despite having some controls on the capital account.

Foreign exchange trading increased by 20% between April 2007 and April 2010 and has more than doubled since 2004. The increase in turnover is due to a number of factors: the growing importance of foreign exchange as an asset class, the increased trading activity of high-frequency traders, and the emergence of retail investors as an important market segment. The growth of electronic execution methods and the diverse selection of execution venues have lowered transaction costs, increased market liquidity, and attracted greater participation from many customer types. In particular, electronic trading via online portals has made it easier for retail traders to trade in the foreign exchange market. By 2010, retail trading is estimated to account for up to 10% of spot FX turnover, or $150 billion per day (see retail trading platforms). Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one

another, there is no central exchange or clearing house. The biggest geographic trading center is the UK, primarily London, which according to The City UK estimates has increased its share of global turnover in traditional transactions from 34.6% in April 2007 to 36.7% in April 2010. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. For instance, when the IMF calculates the value of its SDRs every day, they use the London market prices at noon that day.

Market participants:

Unlike a stock market, the foreign exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest commercial banks and securities dealers. Within the inter-bank market, spreads, which are the difference between the bids and ask prices, are razor sharp and not known to players outside the inner circle. The difference between the bid and ask prices widens (for example from 0-1 pip to 1-2 pips for a currencies such as the EUR) as you go down the levels of access. This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the foreign exchange market are determined by the size of the "line" (the amount of money with which they are trading). The top-tier interbank market accounts for 53% of all transactions. From there, smaller banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail FX market makers. According to Galati and Melvin, ‘Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size”. Central banks also participate in the foreign exchange market to align currencies to their economic needs.

Banks:

The interbank market caters for both the majority of commercial turnover and

large amounts of speculative trading every day. Many large banks may trade billions of

dollars, daily. Some of this trading is undertaken on behalf of customers, but much is

conducted by proprietary desks, which are trading desks for the bank's own account.

Until recently, foreign exchange brokers did large amounts of business, facilitating

interbank trading and matching anonymous counterparts for large fees. Today, however,

much of this business has moved on to more efficient electronic systems. The

broker squawk box lets traders listen in on ongoing interbank trading and is heard in

most trading rooms, but turnover is noticeably smaller than just a few years ago.

Commercial companies:

An important part of this market comes from the financial activities of companies

seeking foreign exchange to pay for goods or services. Commercial companies often

trade fairly small amounts compared to those of banks or speculators, and their trades

often have little short term impact on market rates. Nevertheless, trade flows are an

important factor in the long-term direction of a currency's exchange rate. Some

multinational companies can have an unpredictable impact when very large positions are

covered due to exposures that are not widely known by other market participants.

Central banks:

National central banks play an important role in the foreign exchange markets.

They try to control the money supply, inflation and/or interest rates and often have

official or unofficial target rates for their currencies. They can use their often substantial

foreign exchange reserves to stabilize the market. Nevertheless, the effectiveness of

central bank "stabilizing speculation" is doubtful because central banks do not go

bankrupt if they make large losses, like other traders would, and there is no convincing

evidence that they do make a profit trading.

Forex Fixing:

Forex fixing is the daily monetary exchange rate fixed by the national bank of

each country. The idea is that central banks use the fixing time and exchange rate to

evaluate behavior of their currency. Fixing exchange rates reflects the real value of

equilibrium in the Forex market. Banks, dealers and online foreign exchange traders use

fixing rates as a trend indicator.

The mere expectation or rumor of central bank intervention might be enough to

stabilize a currency, but aggressive intervention might be used several times each year in

countries with a dirty float currency regime. Central banks do not always achieve their

objectives. The combined resources of the market can easily overwhelm any central bank.

Several scenarios of this nature were seen in the 1992–93 ERM collapse and in more

recent times in Southeast Asia.

Hedge funds as speculators:

About 70% to 90% of the foreign exchange transactions are speculative. In other

words, the person or institution that bought or sold the currency has no plan to actually

take delivery of the currency in the end; rather, they were solely speculating on the

movement of that particular currency. Hedge funds have gained a reputation for

aggressive currency speculation since 1996. They control billions of dollars of equity and

may borrow billions more, and thus may overwhelm intervention by central banks to

support almost any currency, if the economic fundamentals are in the hedge funds' favor.

Investment management firms:

Investment management firms (who typically manage large accounts on behalf of

customers such as pension funds and endowments) use the foreign exchange market to

facilitate transactions in foreign securities. For example, an investment manager bearing

an international equity portfolio needs to purchase and sell several pairs of foreign

currencies to pay for foreign securities purchases.

Some investment management firms also have more speculative

specialist currency overlay operations, which manage clients' currency exposures with the

aim of generating profits as well as limiting risk. Whilst the number of this type of

specialist firms is quite small, many have a large value of assets under management

(AUM), and hence can generate large trades.

Retail foreign exchange traders:

Individual Retail speculative traders constitute a growing segment of this market

with the advent of retail Forex platforms, both in size and importance. Currently, they

participate indirectly through brokers or banks. Retail brokers, while largely controlled

and regulated in the USA by the CFTC and NFA have in the past been subjected to

periodic foreign exchange scams. To deal with the issue, the NFA and CFTC began (as of

2009) imposing stricter requirements, particularly in relation to the amount of Net

Capitalization required of its members. As a result many of the smaller and perhaps

questionable brokers are now gone or have moved to countries outside the US. A number

of the Forex brokers operate from the UK under FSA regulations where Forex trading

using margin is part of the wider over-the-counter derivatives trading industry that

includes CFDs and financial spread betting.

There are two main types of retail FX brokers offering the opportunity for

speculative currency trading: brokers and dealers or market makers. Brokers serve as an

agent of the customer in the broader FX market, by seeking the best price in the market

for a retail order and dealing on behalf of the retail customer. They charge a commission

or mark-up in addition to the price obtained in the market. Dealers or market makers, by

contrast, typically act as principal in the transaction versus the retail customer, and quote

a price they are willing to deal at.

Non-bank foreign exchange companies:

Non-bank foreign exchange companies offer currency exchange and international

payments to private individuals and companies. These are also known as foreign

exchange brokers but are distinct in that they do not offer speculative trading but rather

currency exchange with payments (i.e., there is usually a physical delivery of currency to

a bank account).

It is estimated that in the UK, 14% of currency transfers/payments are made via

Foreign Exchange Companies. These companies' selling point is usually that they will

offer better exchange rates or cheaper payments than the customer's bank. These

companies differ from Money Transfer/Remittance Companies in that they generally

offer higher-value services.

Money transfer/remittance companies and bureau de changes:

Money transfer companies/remittance companies perform high-volume low-value

transfers generally by economic migrants back to their home country. In 2007, the Aide

Group estimated that there were $369 billion of remittances (an increase of 8% on the

previous year). The four largest markets (India, China, Mexico and the Philippines)

receive $95 billion. The largest and best known provider is Western Union with 345,000

agents globally followed by UAE Exchange.

Bureau de change or currency transfer companies provide low value foreign exchange

services for travelers. These are typically located at airports and stations or at tourist

locations and allow physical notes to be exchanged from one currency to another. They

access the foreign exchange markets via banks or non bank foreign exchange companies.

Trading characteristics

There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currencies instruments are traded. This implies that there is not a single exchange rate but rather a number of different rates (prices), depending on what bank or market maker is trading, and where it is. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. A joint venture of the Chicago Mercantile Exchange and Reuters, called FX market space opened in 2007 and aspired but failed to the role of a central market clearing mechanism.

The main trading center is London, but New York, Tokyo, Hong Kong and Singapore are all important centers as well. Banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.

Fluctuations in exchange rates are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in gross domestic product (GDP) growth, inflation (ipurchasing power parity theory), interest rates (interest rate parity, Domestic Fisher effect, International Fisher effect), budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates; so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow.

Currencies are traded against one another. Each currency pair thus constitutes an individual trading product and is traditionally noted, where and are the ISO 4217 international three-letter code of the currencies involved. The first currency is the base currency that is quoted relative to the second currency , called the counter currency (or quote currency). For instance, the quotation EURUSD (EUR/USD) 1.5465 is the price of the euro expressed in US dollars, meaning 1 euro = 1.5465 dollars. The market convention is to quote most exchange rates against the USD with the US dollar as the base currency (e.g. USDJPY, USDCAD, and USDCHF). The exceptions are the British pound (GBP), Australian dollar (AUD), the New Zealand dollar (NZD) and the euro (EUR) where the USD is the counter currency (e.g. GBPUSD, AUDUSD, NZDUSD, EURUSD).

On the spot market, according to the 2010 Triennial Survey, the most heavily traded bilateral currency pairs were:

EURUSD: 28%

USDJPY: 14%

GBPUSD (also called cable): 9%

And the US currency was involved in 84.9% of transactions, followed by the euro

(39.1%), the yen (19.0%), and sterling (12.9%) (See table). Volume percentages for all

individual currencies should add up to 200%, as each transaction involves two currencies.

Trading in the euro has grown considerably since the currency's creation in January

1999, and how long the foreign exchange market will remain dollar-centered is open to

debate. Until recently, trading the euro versus a non-European currency ZZZ would have

usually involved two trades: EURUSD and USDZZZ. The exception to this is EURJPY,

which is an established traded currency pair in the interbank spot market. As the dollar's

value has eroded during 2008, interest in using the euro as reference currency for prices

in commodities (such as oil), as well as a larger component of foreign reserves by banks,

has increased dramatically. Transactions in the currencies of commodity-producing

countries, such as AUD, NZD, CAD, have also increased.

Determinants of FX rates:

The following theories explain the fluctuations in FX rates in a floating exchange rate regime (In a fixed exchange rate regime, FX rates are decided by its government):

(a) International parity conditions: Relative Purchasing Power Parity, interest rate parity, Domestic Fisher effect, International Fisher effect. Though to some extent the above theories provide logical explanation for the fluctuations in exchange rates, yet these theories falter as they are based on challengeable assumptions [e.g., free flow of goods, services and capital] which seldom hold true in the real world.

(b) Balance of payments model (see exchange rate): This model, however, focuses largely on tradable goods and services, ignoring the increasing role of global capital flows. It failed to provide any explanation for continuous appreciation of dollar during 1980s and most part of 1990s in face of soaring US current account deficit.

(c) Asset market model (see exchange rate): views currencies as an important asset class for constructing investment portfolios. Assets prices are influenced mostly by people’s willingness to hold the existing quantities of assets, which in turn depends on their expectations on the future worth of these assets. The asset market model of exchange rate determination states that “the exchange rate between two currencies represents the price that just balances the relative supplies of, and demand for, assets denominated in those currencies.”

None of the models developed so far succeed to explain FX rates levels and volatility in the longer time frames. For shorter time frames (less than a few days) algorithms can be devised to predict prices. It is understood from the above models that many macroeconomic factors affect the exchange rates and in the end currency prices are a result of dual forces of demand and supply. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.

Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology.

Economic factors:

These include:

(a) Economic policy, disseminated by government agencies and central banks.

(b) Economic conditions generally revealed through economic reports, and

other economic indicators.

Economic policy comprises government fiscal policy (budget/spending practices)

and monetary policy (the means by which a government's central bank influences the

supply and "cost" of money, which is reflected by the level of interest rates).

Government budget deficits or surpluses: The market usually reacts negatively to

widening government budget deficits, and positively to narrowing budget deficits. The

impact is reflected in the value of a country's currency.

Balance of trade levels and trends: The trade flow between countries illustrates the

demand for goods and services, which in turn indicates demand for a country's currency

to conduct trade. Surpluses and deficits in trade of goods and services reflect the

competitiveness of a nation's economy. For example, trade deficits may have a negative

impact on a nation's currency.

Inflation levels and trends: Typically a currency will lose value if there is a high

level of inflation in the country or if inflation levels are perceived to be rising. This is

because inflation erodes purchasing power, thus demand, for that particular currency.

However, a currency may sometimes strengthen when inflation rises because of

expectations that the central bank will raise short-term interest rates to combat rising

inflation.

Economic growth and health: Reports such as GDP, employment levels, retail

sales, capacity utilization and others, detail the levels of a country's economic growth and

health. Generally, the more healthy and robust a country's economy, the better its

currency will perform, and the more demand for it there will be.

Productivity of an economy: Increasing productivity in an economy should

positively influence the value of its currency. Its effects are more prominent if the

increase is in the traded sector.

Political conditions:

Internal, regional, and international political conditions and events can have a

profound effect on currency markets.

All exchange rates are susceptible to political instability and anticipations about

the new ruling party. Political upheaval and instability can have a negative impact on a

nation's economy. For example, destabilization of coalition governments in Pakistan and

Thailand can negatively affect the value of their currencies. Similarly, in a country

experiencing financial difficulties, the rise of a political faction that is perceived to be

fiscally responsible can have the opposite effect. Also, events in one country in a region

may spur positive/negative interest in a neighboring country and, in the process, affect its

currency.

Market psychology:

Market psychology and trader perceptions influence the foreign exchange market

in a variety of ways:

Flights to quality: Unsettling international events can lead to a "flight to quality," a

type of capital flight whereby investors move their assets to a perceived "safe haven."

There will be a greater demand, thus a higher price, for currencies perceived as stronger

over their relatively weaker counterparts. The U.S. dollar, Swiss franc and gold have

been traditional safe havens during times of political or economic uncertainty.

Long-term trends: Currency markets often move in visible long-term trends.

Although currencies do not have an annual growing season like physical commodities,

business cycles do make themselves felt. Cycle analysis looks at longer-term price trends

that may rise from economic or political trends.

"Buy the rumor, sell the fact": This market truism can apply to many currency

situations. It is the tendency for the price of a currency to reflect the impact of a particular

action before it occurs and, when the anticipated event comes to pass, react in exactly the

opposite direction. This may also be referred to as a market being "oversold" or

"overbought". To buy the rumor or sell the fact can also be an example of the cognitive

bias known as anchoring, when investors focus too much on the relevance of outside

events to currency prices.

Economic numbers: While economic numbers can certainly reflect economic

policy, some reports and numbers take on a talisman-like effect: the number it becomes

important to market psychology and may have an immediate impact on short-term market

moves. "What to watch" can change over time. In recent years, for example, money

supply employment, trade balance figures and inflation numbers have all taken turns in

the spotlight.

Technical trading Considerations: As in other markets, the accumulated price

movements in a currency pair such as EUR/USD can form apparent patterns that traders

may attempt to use. Many traders study price charts in order to identify such patterns.

Financial instruments:

Spot:

A spot transaction is a two-day delivery transaction (except in the case of trades

between the US Dollar, Canadian Dollar, Turkish Lira, EURO and Russian Ruble, which

settle the next business day), as opposed to the futures contracts, which are usually three

months. This trade represents a “direct exchange” between two currencies, has the

shortest time frame, involves cash rather than a contract; and interest is not included in

the agreed-upon transaction.

Forward:

One way to deal with the foreign exchange risk is to engage in

a forward transaction. In this transaction, money does not actually change hands until

some agreed upon future date. A buyer and seller agree on an exchange rate for any date

in the future, and the transaction occurs on that date, regardless of what the market rates

are then. The duration of the trade can be one day, a few days, months or years. Usually

the date is decided by both parties. Then the forward contract is negotiated and agreed

upon by both parties.

Swap:

The most common type of forward transaction is the FX swap. In an FX swap, two

parties exchange currencies for a certain length of time and agree to reverse the

transaction at a later date. These are not standardized contracts and are not traded through

an exchange.

Future:

Futures are standardized and are usually traded on an exchange created for this

purpose. The average contract length is roughly 3 months. Futures contracts are usually

inclusive of any interest amounts.

Option:

A foreign exchange option (commonly shortened to just FX option) is a derivative

where the owner has the right but not the obligation to exchange money denominated in

one currency into another currency at a pre-agreed exchange rate on a specified date. The

FX options market is the deepest, largest and most liquid market for options of any kind

in the world.

Speculation:

Controversy about currency speculators and their effect on currency devaluations

and national economies recurs regularly. Nevertheless, economists including Milton

Friedman have argued that speculators ultimately are a stabilizing influence on the

market and perform the important function of providing a market for hedgers and

transferring risk from those people who don't wish to bear it, to those who do. Other

economists such as Joseph Stieglitz consider this argument to be based more on politics

and a free market philosophy than on economics.

Large hedge funds and other well capitalized "position traders" are the main

professional speculators. According to some economists, individual traders could act as

"noise traders" and have a more destabilizing role than larger and better informed actors.

Currency speculation is considered a highly suspect activity in many countries.

While investment in traditional financial instruments like bonds or stocks often is

considered to contribute positively to economic growth by providing capital, currency

speculation does not; according to this view, it is simply gambling that often interferes

with economic policy. For example, in 1992, currency speculation forced them Central

Bank of Sweden to raise interest rates for a few days to 500% per annum, and later to

devalue the kroner. Former Malaysian Prime Minister Mahathir Mohamad is one well

known proponent of this view. He blamed the devaluation of the Malaysian ringgit in

1997 on George Soros and other speculators.

Gregory J. Millman reports on an opposing view, comparing speculators to

"vigilantes" who simply help "enforce" international agreements and anticipate the effects

of basic economic "laws" in order to profit.

In this view, countries may develop unsustainable financial bubbles or otherwise

mishandle their national economies, and foreign exchange speculators made the

inevitable collapse happen sooner. A relatively quick collapse might even be preferable

to continued economic mishandling, followed by an eventual, larger, collapse. Mahathir

Mohamad and other critics of speculation are viewed as trying to deflect the blame from

them for having caused the unsustainable economic conditions.

Risk aversion in Forex:

Risk aversion in the Forex is a kind of trading behavior exhibited by the foreign

exchange market when a potentially adverse event happens which may affect market

conditions. This behavior is caused when risk adverse traders liquidate their positions in

risky assets and shift the funds to less risky assets due to uncertainty.

In the context of the Forex market, traders liquidate their positions in various

currencies to take up positions in safe-haven currencies, such as the US

Dollar. Sometimes, the choice of a safe haven currency is more of a choice based on

prevailing sentiments rather than one of economic statistics. An example would be the

Financial Crisis of 2008. The value of equities across world fell while the US Dollar

strengthened. This happened despite the strong focus of the crisis in the USA.

NEW MEDICAL CENTRE (NMC) GROUP:

The name group is one of the fastest growing and most prestigious business conglomerates in the UAE. Established in Abu Dhabi 1975, the group is ably led by two visionaries, his Excellency Abdullah Humaid Al Mazroel, former minister of Justice and Law in the UAE cabinet and the business magnate Dr. B R Shetty. The group has a global network of companies engaged in various business interests across the Middle East, India, Sri Lanka, Bangladesh, Australia, USA, UK – ranging from Healthcare, Pharmaceuticals (Manufacturing & Trading), Medical & scientific equipment to Foodstuff, Catering & Hospitality, Information Technology, Gold & diamond Jewelers, Engineering services, Financial Services and Advertizing & Public Relations.

UAE EXCHANGE GROUP:

The UAE Exchange Group is one of the largest and most trusted financial institutions in the world offering money transfer and money exchange services in the United Arab Emirates.

The Group was founded by the great visionaries his Excellency Abdulla Humaid Al Mazroel and Dr. B .R. Shetty and commenced business in the United Arab Emirates in 1980 with one office in Abu Dhabi.

UAE EXCHANGE CENTRE LLC:

UAE Exchange Centre LLC, Abu Dhabi is an ISO certified, Limited Liability Company established under the UAE Commercial Companies Law in Dubai with its corporate office at Abu Dhabi, UAE from where the central administration of the company is carried out.

OMAN & UAE EXCHANGE CENTRE CO & LLC:

Oman & UAE Exchange centre co & LLC, Sultanate of Oman commenced operations in 1995. It is the largest house in Oman and is a leading player in the remittance and foreign exchange segment.

UAE EXCHANGE CENTRE WLL, KUWAIT:

UAE Exchange Centre WLL, Kuwait is yet another mighty institution in the Middle East offering Money Transfer and Money Exchange Services globally.

KUWAIT NATIONAL EXCHANGE CO WLL:

Kuwait National Exchange Co WLL, Kuwait is an associate member of the group providing Money Transfer and Money Exchange Services.

UAE EXCHANGE & FINANCIAL LTD, INDIA:

UAE Exchange & Finance Ltd, India is a member of the National Stock Exchange of India Ltd and facilities online stock trading services through trading terminals.

XPRESS MONEY SERVICES LTD:

Xpress Money Services Ltd, UK is an associate company of UAE Exchange that provides global instant money transfer facility and has established itself as a leading brand.

MONEYDART GLOBAL SERVICES INC:

Money Dart Global Services Inc, USA is promoted by the nmc Group and is a fast growing remittance service provider in the US.

UAE XCHANGE & FINANCIAL SERVICES LTD, INDIA:

The UAE Exchange group commenced its Indian operations in 1999 with 5 branches in the state of Kerala, by the name UAE Exchange & Financial Services Ltd.

UAE Exchange & Financial Services Ltd was incorporated in the year1995 as a public limited company under the Indian Companies Act 1956. It is registered with the Reserve Bank of India as a Public Limited Non-Banking Finance Company (NBFC).

The company commenced Inward Remittance and Money Changing business in September 1999 as per specific licenses received from the apex bank of the country viz. Reserve Bank of India for the same.

MAJOR BUSINESS ACTIVITIES

MONEY TRANSFER:

UAE Exchange & Financial Services Ltd is the paying Agent for ‘Xpress Money’ in association with UAE Exchange Centre LLC, Abu Dhabi and for, Money Gram, Services in association with Money Gram Payment Systems Inc., USA.

MONEY EXCHANGE:

UAE Xchange & Financial services Ltd is approved by the Reserve Bank of India as a Full Fledged Money Changer (FFMC)

1. Buying & Selling of Foreign Currency Bank Notes2. Issuance & Encasement of Major Travelers Cheques3. International Debit Cards4. Saudi Riyal ‘SAR’ Drafts5. Export of Foreign Currency Bank Notes & Travelers Cheques.

TRAVEL & TICKETING:

The company has a Travel Division at the Administrative Office, Kochi by the name UAE Exchange Travel Services. It commenced travel and ticketing operations in 2001and is accredited as an approved passenger sales agent by IATA, Canada (IATA Registration no. Ho-14-3 5588 0).

IT ENABLED SOLUTIONS:

The company has a full-fledged IT Division for developing several major software projects for group companies and overseas clients.

COMMUNICATION

Communication is a two way process by which individuals share information, common interests and cooperation with one another. It relates to flow of material, Information, perceptions and understanding between two or more people, which can bring about change and influence action.

PERSONALITY DEVELOPMENT

Attitude is every Thing because it saves us from the pitfalls of pessimism. The one line says it all. Just reflect upon it and you’ll realize the simple truth in it. What is it that marks the difference between a happy and a sad person? His attitude to the prevailing his circumstances. Not everybody can be happy always, but one can attempt to derive happiness from as many situations as possible. What needs to be changed is the way we look at certain things, the attitude we have towards them. Having the right attitude is half the battle won.

DEFINATION/TECHNICAL TERMS

1. Money Changing:

Money changing is the process of converting one currency into another Currency. In our case it is converting foreign currencies into Indian Rupees and vice-versa.

2. Currency:

Currency for the purpose of money changing includes Coins, Notes, Travelers cheques, and International Debit/Credit/ATM (World Currency Cards/Foreign Travel Cards/store Value Cards/smart cards) cards etc; but does not include Cheques/Drafts/Pay Order/Letters of Credit/Bills of Exchange/Promissory Notes.

3. Foreign Currency:

Foreign currency means currency other than the Indian Currency.

4. Authorized Person:

RBI issues license under section 10(1) of FEMA to persons to be known as Authorized Dealer, Money changer, Offshore Banking Unit (OBC) and they are all collectively known as Authorized Persons. Further, RBI has subdivided Authorized Persons as under:

Authorized Dealer-Category-I – Banks authorized to deal in foreign exchange. They can transact all sort of foreign exchange business irrespective of whether they fall under Current Account or Capital Account transactions. They include Public Sector Banks as well as Banks in the Private and Co-operative Sectors.

Authorized Dealer-II- Permitted to handle non-trade related current account transactions as specified in the license.

Authorized Dealer-III- Financial institutions such as Exim Bank, SIDBI, and Factoring Service etc who have been authorized to deal in foreign exchange to enable them to undertake certain specific foreign exchange transactions relating to their activities.

Authorized Money Changers- Full-fledged Money Changers who are authorized to purchase foreign exchange and also sell the same to Resident Indians going aboard for Private and/or Business Purpose.

5. Person:

Person as defined in the Income Tax Act has been adopted and includes

(a) Individual (b) Hindu Undivided Family (HUF) (c) Company (d) Firm (e)AOP/BOI {whether incorporated or not} (f) Every artificial judicial person (g) Any agency, office or branch owned or controlled by such person.

6. Person Resident of India:

Residential status of a person is determined not only on his intention to stay but also on physical presence.

A person is treated as resident in India if he was in India for more than 182 days during the preceding financial year. The criteria for physical stay would apply to individuals alone.

A person who has come to stay in India, in either case, for or on taking up employment in India, or for carrying on India a business or vocation in India or for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period would be considered as resident.

It also includes any person or body corporate registered or incorporated in India, an office or agency in India owned or controlled by a person resident outside India owned or controlled by a person resident in India.

It however, does not include a person who has gone out of India or who stays outside India, in either case for or on taking up employment outside India, or for carrying on outside India a business or vocation outside India, or for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.

However, entities such as Partnership Firms/Trusts and other bodies of individuals which are not registered or do not to be registered or not covered under the above definition.

7. Person Resident outside India:

Means a person who is not resident in India.

FEMA has done away with the concept of citizenship, for applicability of the provisions of the Act but has made it applicable to either ‘person resident in India’ or to ‘person resident outside India’.

8. Person Not permanently resident in India:

A person resident in India for employment of a specific duration (irrespective of length thereof) or for a specific job on assignment, not exceeding three years is treated as a person not permanently resident in India.

9. Current Account Transactions:

The transaction from other than a Capital Account Transaction.

10. Capital Account Transactions:

A transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of persons resident outside India.

11. Remittances:

Remittances of foreign exchange include sale/release of foreign exchange in the form of currency notes, travelers cheques telegraphic transfers( swift transfer), foreign currency demand drafts, pre-loaded world currency cards/store value cards/smart cards etc as these lead to an outflow of foreign exchange.

AUTHORISED MONEY CHANGER

They are the erstwhile Full-fledge Money Changers who are permitted to encash foreign currency notes/coins and Travelers, Cheques. Besides they are also permitted to sell foreign currency notes/ coins and Travelers cheques to those going abroad for purpose such as private visits, business travel etc.

Conditions of License:

As stated above RBI issues licenses u/s 10(1) of FEMA to AMC’S and ADs and activates of FFMCs/Ads are governed by the conditions of license. Further, RBI has issued various instructions vide its Memorandum of Instructions to Authorized Money Charges (Memorandum AMC) which are required to be followed by AMCs as well as AD-II. The last issued of Memorandum AMC was issued in November, 2002.

Amendments to the Memorandum AMC are carried out by RBI from time to time by way of Circulars known as AP (Dir. Series) Circulars. These Circulars could be accessed from the web site of RBI www.rbi.org.in

SALE OF FOREIGN EXCHANGE:

As per the conditions of license, we are permitted to release foreign exchange only for non-trading related current account transactions specified in the license to Resident Indian Citizens. The various purposes for which we can release/remit foreign exchange are as under.

Private Visits. Business Visits Education Medical Treatment Emigration Employment Film Shooting Remittances by Tour operations/Travel Agents to their Overseas

Agents/Principals/Hotel Fee for participation in Global Conferences & Specialized Training. Remittances for participation in International Events/Competitions. Disbursement of Crew Wages Remittances to Overseas Universities under Educational Tie ups. Remittances towards fee for examinations held in India and abroad and additional

score sheets for GRE, TOEFL etc. Skills/Credential assessment fees for intending migrants. Vise Fees Processing fees for registration of document by overseas Governments. Registration/Subscription/Membership fees to International Organizations.

SALE OF TRAVELLERS CHEQUES (TC’S):

The need for sale of Travelers cheques arises on two counts:

Restrictions on taking out foreign currency notes in excess of USD 2000 Travelers’ choice/preference.

We are, therefore, stocking Travelers Cheques of American Express Bank Ltd in all the available currencies and denominations. Amex TCs has had worldwide acceptance with encashment facilities all over the world. TCs are safe, convenient to carry and have no expiry date. Further, Amex provides replacement of lost/stolen from all their outlets and also from a select outlet of other Money Charge/Agents. The other advantages of Amex TCs are, they do not charge a fee for encashment at their own outlets. UAE Exchange also has a policy of not charging any fee while encashing TCs and hence we are also listed alongside Amex as “Fee Free Encashment Centers”.

CURRENCY CARDS:

This is yet another way of carrying foreign exchange while going abroad. Banks in India have come out with such cards and they are known in different names such as Store Value Cards/Charge Cards/Smart Cards/Travel Cards/World Currency Cards/International Debit Card etc. These cards are akin to ATM establishment and/or for withdrawal of cash. These cards are preloaded and available in different currencies.

We have tied up with IDBI Bank ICICI Bank to sell their Cards and currently they are available in the following currencies:

IDBI World Currency Cards: USD, GBP, EURO, AUD, SGD and CAD

ICICI Bank: USD, GBP, EURO, AUD, SGD, CAD, CHF, JPY, AED and CNY

SWIFT TRANFERS [TELEGRAPHIC TRANSFER (TT)]:

SWIFT stands for Society for Worldwide Inter-bank Financial Telecommunication. Earlier, message relating to transfer of funds used to send through telex/telegram and hence it is also known as Telegraphic Transfer (TT). With the advent of satellite communication, internet etc, the funds transfers now take place through electronic medium and on real time basis. Funds are transferred from the bank of the remitter in one country to the bank account of the beneficiary in another country. Since countries of the world fall in different time zones, funds transferred from one country gets credited to the beneficiary’s account with the bank during the bank working hours which will mostly be the next day if it falls in a different time zone.

SWIFT was established in 1973 by European Bankers for a more efficient and secures system for interbank communication of transfer of funds/securities. Membership of SWIFT is open for all central Bank of the countries and Banks/Financial Institutions recommended by such Central Bank.

A SWIFT consists of a one page document containing:

The name and code of the originating bank ( the remitting bank). The date and time of remittance. The name & address of the receiving bank (beneficiary bank). The name & internal code of the officer initiating the transmission. The name & number of the accounts involved in the transfer. A description of the asset being transferred.

FOREIGN CURRENCY DEMAND DRAFTS (FCDD’S):

These are Demand Drafts denominated in foreign currencies drawn on Banks abroad and payable abroad. Mostly the FCDD’S will be required for remittance of certain fees such as Application/Admission/Enrolment fee/other fee such as tuition fee etc payable to overseas Universities/Colleges/Educational Institutions. Similarly, FCDD’S will be needed by patient who intend to undergo treatment abroad and in such cases the drafts will be in the names of overseas Medical colleges, Hospitals, Doctors etc. some countries insist on payment by FCDD for entertaining applications for Visa, Emigration, Employment etc.

The applicant for FCDD’S should either be the travelers himself or his close relatives/sponsors who are sponsoring his travel. Similarly the beneficiary of the FCDD’S should be either the applicant or the overseas organization/institutions to which he is required to funds towards the permissible current account transactions. It should not be overseas third party individuals or related to trade payments.

While quoting the rates, besides the rate of sale of exchange, we should also recover the FCDD charges and also service tax at the applicable rate.

FCDD’s are available in almost all currencies such as USD, EUR, CAD, SGD, AUD, CHF, etc drawn on overseas banks with which the drawing branch has arrangements and payable at the respective countries.

SALE OF EXCHANGE-PROCEDURE:

Application for drawl/remittance of exchange Security of Application Verification of Signature Eligibility Rate Mode of payment

MARKETING

Marketing is the IDENTIFICATION and PROFITABLE SATISFACTION of Customers’ needs’. It is about the multi- faceted strategy and execution of getting and keeping customers. The success of any business is in its Customer Satisfaction. Identifying potential customers and their needs and satisfying their business needs can only bring in the required development and profit to the working branch or company.

RELATIONSHIP MARKETING

It uses the event driven tactics of customer retention marketing, but treat marketing as a process in course of time rather than single unconnected events. Customer relationships are key to your marketing strategy. It achieves very high customer satisfaction and is highly profitable. The following points are to be remembered while marketing to a prospective customer.

Asking for referrals a key strategy for business development success. Referrals are a great source of new business. You are always sure of getting potential customers from getting referrals from your current client base.

What do your customers need? Trying to get customers when you’re really not sure what they need or want makes you an answer in search of a question. So before any marketing campaign, do a general study of the people whom you are meeting and try to know their needs.

Great customer service- A company’s most vital asset is its customers and customer service is an integral part of our job and should stress on the quality of service provided to the customers.

CUSTOMER RELATIONS

Providing customer service and achieving customer satisfaction has become the competitive edge separating outstanding organizations from average ones. Management plays the crucial role in achieving and maintaining a customer-focused organization.

Customer Relations Management business strategy to identity, cultivate, and maintain long-term profitable customer relationship. It requires developing a method to select your most profitable customer relationships. It requires developing a method to select your most profitable customer relationships (or those with the most potential) and working to provide those customers with service that exceeds their expectations.

There are different facets of Customers Relations Management for every business:

Identifying qualified leads and gaining new customers.

Closing sales more effectively and efficiently.

Allowing customers to perform business transactions quickly and easily.

Providing services and support following a business transaction.

TYPES OF CUSTOMER RELATIONS STRATEGIES

As you develop these relationships with your customers there are two different approaches to learning who they are:

CUSTOMER VALUE-BASED:

Identify your customers based on their value to your company and customized their treatment based on that knowledge.

Usually this approach involves identifying the customers that either (a) have the most actual value to your company over their lifetime or (b) have the most potential value to your company over their lifetime.

CUSTOMER NEEDS-BASED:

Identify your customers based on their needs and work to meet those needs. This may involve allowing a customer to customize or tailor a product to meet their needs and then remembering that customization in the future to make their interactions with you easier and more enjoyable. It means that when your customer interact with (your company) you, they will hear the message, “Do you want the usual?” Each time you do business with them you will do better at quickly delivering them a product that meets their needs and that they will not need to re-specify what they each time.

CUSTOMER SATISFACTION THROUGH CUSTOMER SERVICE:

The goals for improving customer service levels.

Taking an organization from good to great customer service ultimately depends on the people who provide that service. It can only happen through the Volunteerism.

Going from ordinary to extraordinary performance happens through the discretionary efforts of frontline staff deciding to make the thousands of “moment(s) of truth”.

This enthusiasm, loyalty, or devotion can’t be forced on people. It only happens through a “Culture of Commitment”, where frontline people reflect to the intense pride and ownership they are experiencing on the inside. In any company, frontline employees are not just important sources of customer feedback they play direct roles in raising satisfaction. Thus, for every one percent increase in Internal Service Climate there is a two percent in revenue.

TIPS TO KEEP CUSTOMER EXCPECTATIONS WITHIN RACH:

Be very careful with promises you make or imply in your advertizing, brochures, marketing and public relations activities.

Make sure your salespeople, dispatches, receptionists, order desk staff, designers, or anyone in your organization who has contact with customers are promising only what your organization can deliver.

Continually research and test your customer’ expectations and the factors that most influence them.

Make it a personal and, ultimately, an organizational habit to promise a little and deliver a lot.

Don’t try to negotiate your customers’ expectations downward. You will lose this opportunity to improve yourself; you also risk losing the customer to someone who can meet his expectations.

Vision:

To be an ever-dependable friend, the link that emotionally connects people across the globe through technology-driven, professional, dedicated and timely services delivered with a personal touch.

Mission

To stay ahead of the times in providing customer-friendly, value-added services with warmth; fulfill the aspirations of the employees; create sustained growth in revenue and profitability; serve the society and flourish in an environment of mutual trust and transparency.

COMPETITORS

1) Western union money transfer.

2) Private Banks.

3) Travelex money transfers.

SWOT Analysis

STRENGTHS:

Fully automated operations

Multilingual and courteous staff Innovative services and quality products

Competitive rates and charges

Promptness, safety and confidentiality of transactions

7 days a week, round-the-year operations

Spacious, comfortable and strategically-located branches

Personalized customer care

Full-functioning customer-service department

Sophisticated self-service kiosks in every branch

Convenient mobile money transfers

Prompt and Secure Wire Transfer facility via SWIFT

World-wide Correspondent network consisting of over 95 major banks

Disaster relief efforts- In the aftermath of the Tsunami which hit the world in December 2004, NMC Group sent medical supplies and donations worth more than 1 Million Dirham’s to Indonesia, Thailand, Sri Lanka and India, the worst affected nations. 1.1 million Dirham’s worth of medicines and medical aid was contributed to relief activities in the quake-hit areas of Pakistan in the aftermath of the South Asia Earthquake of 2005. Medical aid was provided to the 2004 Typhoon victims in Philippines as well.

Cultural contributions- UAE Exchange contributes to many social and cultural organizations of the world engaged in community development, cultural integration, and the promotion of arts. It patronizes social and cultural festivals in different parts of the world, primarily focusing on the Middle East, where it gives tutelage to the introduction and popularizing of fine and applied arts from other regions of the world.

Promotion of Sports- UAE Exchange promotes sports and sporting events, and fields its own cricket and basketball teams in major tournaments of the Middle East, which has come out with flying colors on many occasions. NMC group organizes several major

tournaments in the region and patronizes annual events in other countries and regions. UAE Exchange also promotes volleyball, throw ball, badminton, and chess in UAE.

In addition to these efforts, UAE Exchange continues to contribute to relief and disaster control efforts by waiving off service charges for transactions sent to affected regions, and to recognized aid funds.

Recognition- Dr. B.R.Shetty, MD & CEO of NMC Group, was awarded the prestigious First Order of Abu Dhabi on the 5th of December, 2005, award instated by the Government of Abu Dhabi to recognize extraordinary individuals who have contributed to the betterment of the Abu Dhabi community. This award recognized him as a great philanthropist, and his contributions as those which help individuals and the community at large to be better.

WEAKNESS:

1) Less awareness about the company in the public.

2) Money exchange & money transfer is available in private banks also.

OPPORTUNITIES:

Under their able leadership and mettle, UAE Exchange has scaled the great heights that it has, in its 25 years of existence, attaining the status of a world brand. The reins were further taken up by our able team of top-line managers, planning and devising strategies for marketing our products across customer categories and identifying the market for new products. This pro-active approach to customer-satisfaction and innovation has elevated us to the status of a market leader in the entire Middle East, with an ever expanding network and widening operations across the world.

THREATS:

As per my knowledge I didn’t found any threats in the company.

Who’s who?

Abdulla Humaid Al Mazroei and B.R. Shetty, CEO & Managing Director in Abu Dhabi, United Arab Emirates.

Branch head: Mr. Gori Inathullah,

Senior officer: Mr. Raju,

Jr officer: Pramodh, Arshad, Kavitha, Shafi.

Learning’s in the executive training:

The Learning’s with regarding to executive training in the UAE XCHANGE & FINANCIAL SERVICES LTD. are stated below

1. Gain the knowledge about the products of the UAE XCHANGE & FINANCIAL SERVICES LTD.

2. Gain the knowledge about the company and the competitors

3. Gain the knowledge about the FOREX, AIR TICKETING, MONEY TRANSFER.

4. Learnt the methodology of the working in the industry with respect to the UAE XCHANGE & FINANCIAL SERVICES LTD.

5. Learnt the methods of market surveys and the segmentation of the market.

6. Learnt how to target the customers who could give the maximum benefits to the organization and for the self development.

7. Learnt how to interact with the customers to make them as prospective and permanent customers of the company.

8. Apart from product knowledge I learnt communication skills.

9. Time management with customers.

i

STRATEGY:

In the first three weeks the strategy told to us was to cover the natural market. Natural market consists of the family and friends and the relatives.

After that the strategy given was of market survey. In this method first we have to collect the data from the public.

Another strategy followed to get the contacts from the public whom we could approach is the event organization. By managing an event we could promote the company as brand awareness could be done. We could step towards corporate social responsibilities. The event made us get new contacts and explain the products to the customers.

Another strategy we followed is door to door marketing

TARGETS & TASKS:

SIP company assigns some targets which are to be achieved till the dead line given. Targets measure the performance of the interns as the interns achieve or try to achieve the targets. Generally Company gives the weekly targets but in some cases the targets assigned are for the different period than a week.

UAEXCHANGE & FINANCIALSERVICES LTD.

1. To generate the profit of worth Rs.10000 per month.

2. To collect data by the end of 4 months from customers.

To collect the data from the public who could be the prospective customers for the company by the means of market survey for which a formal introduction and training was given.

ACHIEVEMENTS:

The targets assigned are to be achieved. Achievements are a tool by which interns are evaluated according to the different scales. The achievements in UAE XCHANGE & FINANCIAL SERVICES LTD. are to earn profit to the company

Till now I have achieved

Done business of Rs3,52,360/-

Collected some customer data.

Achieved 175% Target

ANALYSIS OF PERFORMANCE V/S TARGET REASONS FOR VARIANCE:

Weeks NO ACHIEVEMENT TARGET

1 Training 12500/-

2 Gathered some customer data through

natural market

12500/

3 Met customers & generated Rs 60,750/- 12500/

4 Met customers & generated Rs 1,33,609/- 12500/

5 Met customers & generated Rs 4620/- 12500/


7 Met customers & generated Rs 820/- 12500/

8 Met customers 12500/








LIMITATIONS:

Traveling in the city and managing the time.

Talking to the customer and convincing him for sale of the product.

CONCLUSION:

The company is good in handling the situations and taking care of the intern individually. Regular training is giving to the interns to get knowledge about the product.

Now I am able to handle the customer and give him the proper knowledge about the product. I have lot of changes in me in regards professionalism and maintaining customer relationship.

Summary of purchases of foreign currencies from the public for the period 1/1/2009 to 31/12/2009

COUNTRYCURRENCY PURCHASE FC

AMOUNT

TRVELLORS CHEQUE PURCHASE FC LC AMOUNT EQUIVALENT OF CURRENCY

+TC FC AMOUNT

Australian Dollars 2,000.00 1,07,8440

BAHRAIN DINARS 72.5 1,04,520

CHINESEYUAN REMINBI 300 23,832.00

EURO 24,365.00 17,728,687.20

HONGONG DOLLARS 60 0.00

KUWAIT DINARS 680 13,07,570.04

MALAYSIAN RINGITT 1 1,74.00

OMANI RIALS 305 4,22,831.52

QATAR RIYALS 8,077 1,196,402.16

SAUDI RIYALS 1,67,848 24,139,488

SINGAPORE DOLLARS 612 2,53,468.8

STERLING POUNDS 11,675 99,20,319.6

THAI BHATS 1,500 22,860

UAE DIRHAMS 29,605 43,49,727.12

US DOLLARS 1,13,946 6,15,52,977

US DOLLARS 0 15,10,800

NEW ZEALAND DOLLARS 685 56,477.40

TOTAL 43,167,747

References:

Foreign Exchange Management Act, 1999 (FEMA 1999)

Memorandum of Instructions to Authorized Money Chargers (Memorandum AMC)

Master Circular on Miscellaneous Remittances from India dated 1 July, 2007 issued by RBI

Amendments to Memorandum of Instructions to Authorized Money Changers issued by RBI vide AP (FI. series) Circular.

Documents

A Final Report 2003