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INTRODUCTION

               FX-Commodities is a system designed to overcome difficulties in determining the actual profits and losses and cash flow requirements in a commodity type trading environment. The ultimate result of the system is to determine the liquidity of the organisation. Because of its modular structure, FX-Commodities is suitable for small single entity companies as well as large centralised or decentralised companies.
               Where a central treasury exists, FX-Commodities will manage each subsidiary separately and consolidate subsidiary data into treasury information.

               1. General Description and Platform
               2. File Structure
               3. Institutions
               4. Purchases
               5. Sales
               6. Hedging of Loans
               7. Currency Rates
               8. Sundry purchases
               9. Sundry Expenses
               10. Accounting Integration
               11. Payment of Loans
               12. Drawing on Loans
               13. Reports
               14. Networking

1. GENERAL DESCRIPTION
               PLATFORM
               FX-Commodities is a SQL Visual Basic application. Data may be inputted directly to the SQL database or via interfaces to general accounting, order entry and other management systems.

2. FILE STRUCTURE
               FX-Commodities comprises three main file groups namely table lookups, master data and variable data. The lookup data files contain data on Currencies etc., maintenance files record basic information on Counter Parties, Financial Institutions and the Organisation's Companies and Divisions.
               Data relating to transactions with Financial Institutions and Counter Parties are held in the database in the dynamic files.
               The major database files record foreign currency purchases, loans, sales, limits and expenses and loan repayments from sales or other sources associated with the loans, purchases and sales.

3. INSTITUTIONS
                The system provides for the recording of information associated with specific financial institutions. The data will include the limits allocated by that institution to the company, divisions within the company, geographical areas, countries, and the application of the loan to item types, i.e. aircraft, commodities, property, etc. As a result data relating to the application of loans can be drilled through to provide management information as required.

4. PURCHASES
               Purchases are recorded by type, geographical region, country, supplier and product. Detailed analysis is possible on a demand or pre-set bases.

5. SALES
               Sales of capital goods or commodities are recorded by the system which will offset the sale against a purchase and a loan. The profit or loss against the purchase and sale transactions is recorded and reported on.

6. HEDGING OF LOANS
               FX-Commodities has links to FX-Manager that will record and manage all hedges associated with foreign currency transactions created by the purchase and sale of capital goods or commodities.

7. CURRENCY RATES
               FX-Commodities includes a rates file that stores spot and forward rates. These rates are obtained directly from our server or from the user's bank. If rates are not acquired electronically, they may be entered manually or down loaded from disk or a network source. All goods forming collateral for loans and which are valued through financial markets can be revalued real-time using these and commodity rates.

8. SUNDRY PURCHASES
               Any expenses associated with a Purchase or Sale are recorded through this module against that purchase or sale to be reflected in the profit or loss.

9. SUNDRY EXPENSES
               Any expenses associated with a sale are recorded in this module to be reflected in the profit or loss.

10. ACCOUNTING INTEGRATION
               FX-Commodities may be integrated into the company's accounting system. FX-Commodities includes a ledger file for accounting integration. Accounts in the ledger file can be made to mirror the main accounting system so that period end accounting loans, purchases and sales is done easily. If required the integration can be real time.

11. PAYMENTS OF LOANS
               Payments of loans are recorded. These include income from sales and deposits made.

12. DRAWINGS ON LOANS
               As and when funds are needed, a drawing against a loan will be made. This starts the interest calculation process on that drawing.

13. REPORTING
               Standard reporting in FX-Commodities includes various reports on Collateral Positions, Securities, Cash flows and Cash Flow Forecasts, Loans, and Currency Exposures. Additional reports will be written to user requirements on a quote basis.

14. NETWORKING
               FX-Commodities is available as a stand alone or networked system within a subsidiary and can have any level of local data storage. All subsidiary installations are then connected to the central treasury via a LAN.