M1 Exchange - Trade Receivables Discounting System

M1’s Trade Receivables Discounting System “TReDS” is an online exchange being set up under the approval of RBI to facilitate discounting of invoices and Bills of exchange on a PAN India basis. For more information visit: www.m1xchange.com

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www.m1xchange.com
MYND SOLUTIONS PVT LTD

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Presentation Agenda
1 Introduction
2 About TReDS
3 Participants & Benefits
4 Support of Strong Regulator - RBI
5 Onboarding: Time & Process
6 TReDS: Factoring & Reverse Factoring
7 M1 Advantage
8 Third Party Integration
9 Our Management Team
10 Vision & Mission
Key pointers covered in this deck

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Trade Receivables Discounting System “TReDS” is an online exchange being set up under the approval of Reserve Bank of India
(RBI) to facilitate discounting of invoices and Bills of exchange on a PAN India basis.
Trade Receivables Discounting System
MYND Online National Exchange (For Receivables)
RBI granted approval to Mynd Solutions in Dec 2015, to set-up and operate TReDS under the Payment and Settlement System
(PSS) Act 2007. Mynd solutions is one of the very few entities approved to set up the exchange. The Exchange is named M1 (Mynd
Online National Exchange)
Key participants to be Micro, Small & Medium Enterprises “MSME” (“The Seller”), large corporates including PSUs and Govt.
Departments (“The Buyer”) and Banks/NBFCs (“the Financier”)
To provide MSMEs working capital at competitive rates through an open bid process through multiple financiers.
Financing to be “Without Recourse” to MSME supplier.
Client on-boarding started. First transaction in the month of January-17.

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Key Participants & Benefits
MYND Online National Exchange (For Receivables)1
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Opportunity to build quality PSL
asset portfolio in MSME space
Reduced operational cost along
with improved reach to build
clientele
Ease of operation with minimum
documentation
Facility to make better decision
making through key information
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Saving on procurement cost
through improved negotiation of
financing terms for suppliers
Saving on finance costs by
extending credit period
Off balance sheet transactions
Digital Platform - Lower
administration cost for vendor
financing, payments and
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Easy, fast working capital finance
at cheaper interest rates
Without recourse/non-collateral
based finance
Off balance sheet finance – sale
of receivables
One time documentation, no
need to engage with multiple
banks
Receipt of funds within two days
from acceptance of bid
SUPPLIERS BUYERS FINANCIERS
1 2 3

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Strong Regulator - RBI
MYND Online National Exchange (For Receivables)
Enhances Credibility
Increases credibility of
exchange in the
market and minimises
risk of defaults
Improved Bank Participation
Many benefits such as PSL are
not available to non-regulated
entities, hence there will be
increased participation from
banks on this regulated
platform
Better Security Control
Fosters confidence in
participants towards the security,
control and transparency as
exchange becomes regulated
and complies with stricter
guidelines
Stability
RBI as a regulator will ensure
long term stability of the
exchange
Scalability
RBI defined processes and
procedures built for scalability
Key Benefit
End to end discounting solution (including
the settlement process) which is not
permissible to the non regulated entities
Security
Ensures necessary security and
controls through technology

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Time & Steps for Onboarding
MYND Online National Exchange (For Receivables)
Sharing of vendor details&
execution of MSA, Debit
Mandate, BR
Day 0
Verification of buyer
docs and KYC
Day 2
Collection of KYC & on
boarding documentation
from vendors
Day 10
KYC and document
Verification
Day 12
Day 15 Welcome kit with log in id and
password creation process on line
Day 15

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M1
Exchange
Buyer Supplier
Financier
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 8
Step 10
Step 7
Step 9
Step 9
Step 11
Step 11
Step 1: Supplier delivers the goods/services
(Outside TReDS)
Step 2: Supplier Logs in & upload the Invoice (Rs100)
Step 3:Validate invoice, convert to Factoring Unit
& publish for acceptance
Step 4:Buyer Logs in & accepts the Invoice
(Rs100)
Step 5:Publish the factoring Unit for bidding
Step 6:Financiers bid against the factor
Step 7:Accepts the Bids (% interest as best bid)
Step 8:Exchange generates the settlement File
to debit Financier and pay Supplier
Step 9:Exchange debits Financier’s bank account
for Rs90 and credit the supplier’s bank
account
Step 10:On due date, final settlement file is
generated
Step 11:Exchange debits Buyer’s bank account for
Rs100 & credits the financier’s bank
account
TREDS - Factoring
MYND Online National Exchange (For Receivables)
*Alerts and Notifications will be sent at every stage

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Step 1: Supplier delivers the goods/services
(Outside TReDS)
Step 2: Buyer Logs in & upload the Invoice (Rs100)
Step 3:Validate invoice, convert to Factoring Unit
& publish for acceptance
Step 4:Buyer Logs in & accepts the Invoice
(Rs100)
Step 5:Publish the factoring Unit for bidding
Step 6:Financiers bid against the factor
Step 7:Accepts the Bids (% interest as best bid)
Step 8:Exchange generates the settlement File
to debit Financier and pay Supplier
Step 9:Exchange debits Financier’s bank account
for Rs90 and credit the supplier’s bank
account
Step 10:On due date, final settlement file is
generated
Step 11:Exchange debits Buyer’s bank account for
Rs100 & credits the financier’s bank
account
M1
Exchange
Buyer Supplier
Financier
Step 1
Step 4
Step 3
Step 2
Step 5
Step 6
Step 8
Step 10
Step 7
Step 9
Step 9
Step 11
Step 11
TREDS - Reverse Factoring
MYND Online National Exchange (For Receivables)
*Alerts and Notifications will be sent at every stage

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MYND Online National Exchange (For Receivables)
M1 Advantage

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M1 Xchange
Vendor Portal
Vendor Onboarding
Business Process
Management
Accounting
& Recon
•Online Vendor
Registration
•Vendor classification &
Profiling
•Vendor KYC
•Credit spreading
•Master data Management
& Updation
•Centralized depository
•Self Service Menu
•PO approvals/ vendor self
•service
•PO extraction and validation
•Pre-shipment documentation
•Invoice submission
•Document submissions
•Self Invoice
•DN / CN Status View
•Invoice status inquiry
•Mobile application
•Payment advices
•Invoice Help desk
•Business Process Rule
Engine
•Scanning solution
•Primary Verification
•Document archival
•Key field entry through
Optical recognition (OCR)
•Invoice approval work
flow management
•Query resolution
monitoring
•DN / CN generation
•Integration with ERP
•RBI regulated first of its
kind online exchange for
receivable financing
•Large corporate buyers,
their suppliers and
multiple banks/NBFC
factors on the same
platform
•Invoice Discounting to be
done through open bid
process
•Auto data flow to ERP
•Automated Vendor
Reconciliation
Workflow
Digital Supply Chain Process – Enhanced Offering
MYND Online National Exchange (For Receivables)
Single Platform with Seamless Funding & Settlement

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SMS GATEWAY
EMAIL SERVER
BANKS
CENTRAL REGISTRY
CLIENT BUREAU
PAYMENT
SETTLEMEN
T
SYSTEM
PARTY ERP
Third Party Integration
MYND Online National Exchange (For Receivables)
Communication
Servers
Dedicated Email Servers and
SMS gateways to ensure on-
time communication, every
time.
Infrastructur
e
Multi-level infrastructure
seamlessly integrates with
third party software, giving
you an end-to-end solution

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+ SUNDEEP MOHINDRU
FOUNDER & CHIEF EXECUTIVE
OFFICER
+ JACOB RAPHAEL
CHIEF OPERATIONS
OFFICER
+ DEVIKA GARG
NATIONAL SALES HEAD
+ RAMESH BISHT
CHIEF FINANCE OFFICER
+ SUNIL KUMAR
CHIEF TECHNOLOGY
OFFICER
The Management Team
MYND Online National Exchange (For Receivables)

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To channelize MYND’s leading practices to
offer best-in-class Trade receivables
exchange for MSMEs, Corporates &
Financiers; ensuring seamless liquidity flow
between all stakeholders, contributing to the
country’s growth.
Mission & Vision
MYND Online National Exchange (For Receivables)
VISION
To provide solution-based approach adept with
innovation & flexibility towards financing
solutions for stakeholders.
MISSION

14. MYND SOLUTIONS PVT. LTD
296, Udyog Vihar, Phase-IV,
Gurgaon - 122001 Haryana, India
Phone: [phone]
Fax: [phone]
E-mail:
[email protected]