Case / Derivatives Crisis Room

4:45 PM, Friday. The bank just called about a position nobody approved.

Kaveri AgroExports Ltd hedges its dollar receivables like any exporter — forwards and the occasional put option, sized to match confirmed shipments. Except the mark-to-market the bank just sent covers a book nearly three times that size, and half of it isn't hedging anything. The rupee moved hard against it this afternoon. You have 75 minutes before the bank starts liquidating at market.

The Company

Kaveri AgroExports Ltd — a mid-cap Coimbatore-based exporter of processed spices and agri-commodities to the US and EU, ₹640 Cr annual revenue, roughly 70% dollar-denominated. Treasury policy: hedge only confirmed and highly probable dollar receivables, board-approved limit of $8M notional outstanding at any time.

Choose a seat in the room. Each role sees a different slice of what's actually happened — and has a different stake in what you decide to do next.

Sanjana Rao

Chief Financial Officer

Arvind Nair

Group Treasurer

Meera Iyer

Head of Risk & Internal Audit

Rohan Mehta

Relationship Head, Lender Bank

Your Private Brief

Liquidity Buffer70

Board & Lender Trust70

Regulatory Exposure20

Case Closed

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Your Full Decision Log

Hedge the Exposure, Not a View

The moment a treasury desk sizes a position beyond the underlying it's meant to cover, it has stopped hedging and started speculating — regardless of how the trade is labelled internally.

Segregation of Duties Is Not Optional

A treasurer who both authorises and executes trades, with no independent risk sign-off, removes the one control designed to catch exactly this kind of drift before it compounds.

Liquidity Risk Compounds Fast

A hedge that looked fine on a static balance sheet can still fail — margin calls are a cash-timing problem, and cash-timing problems don't wait for board meetings.

Disclosure Timing Is a Governance Choice

Delaying bad news rarely makes it smaller by the time it surfaces — it usually just adds a second story about who knew, and when, on top of the first one.