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A SUMMER TRAINING PROJECT REPORT ON EXPORT PROCEDURES ( Export Accounting Documentation ) IN

SAMTEL COLOR LTD. (Ghaziabad) Submitted to Lucknow University in partial fulfillment for the award of the degree of Master of Business Administration (MBA)

I.M.S , LUCKNOW UNIVERSITY SULTANPUR ROAD LUCKNOW


SUBMITTED BY :DEVANSHU BAJPAI Roll. No. 10001117016
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DECLARATION

I am DEVANSHU BAJPAI, a summer trainee in Samtel Color Limited.Hereby declare that the summer training project report titled EXPORT PROCEDURES from 25th may to 25th july in Export Accounting Documentation is my original work and the same has not been submitted for the award of any other diploma or degree.

Place: Ghaziabad Date: DEVANSHU BAJPAI

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ACKNOWLEDGEMENT

I express my sincerest gratitude and thanks to Mr. Lalit tyagi.

Under his brilliant

untiring guidance I could complete the SUMMER TRAINING PROJECT REPORT. I would be failing in my duties, if I do not acknowledge the gratitude Mr. S.K. Masown (DGM Finance), without whose support and cooperation I could not have completed this project. For all his assistance and sharing his valuable time. I am also grateful to my parents & friends, for their continuous support, demonstration of love. And valuable suggestions without which, this project would not have been successfully completed. Last but not the least, I thank to God who provided me a strong moral support for succeeding in my object.

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CONTENTS
Particulars 1. Objective of the study 2. Scope of study 3. Executive Summary 4. Introduction of Organization Page no. 5 6 7-8 9-10 11-39

5. Company Profile
Brief history of Samtel color limited Establishment Promoter and their background Board of directors Existing operations Other group companies Group companies / subsidiaries and the nature of its activities Samtels track record in research and development Achievements of the Samtel group Products of SCL Samtel Corporate Equipment Division ( CED) Production process 6. Major challenges for the organizations

a. b. c. d. e. f. g. h. i. j. k. l.

40 41 42

7. Introduction of exports 8. Introduction of problem

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9. Literature review 10.Statement of hypothesis 11.Research design a. Descriptive research i. Data collection ii. Data presentation 12.Procedure 13.SOP of exports 14.Documents needed for exports process
18.Analysis of data 19.Comparison in sales done in foreign market 20.Results & findings 21.Suggestions 22.Summary & conclusion 23.Bibliography

43-57 58 59-63

64-71 72-76 77-87 88 89-93 94 95 96-97 98

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DEVANSHU BAJPAI

OBJECTIVES OF STUDY

The objectives of the study mainly refers to aim for which a researcher does a study. So, the objectives of this report is to maintain the proper functioning of the EXPORT PROCESS so the company can increase its sales by satisfying the customers needs which can only be achieved by the fulfillment & by the properly execution of the following points which are as follows: To draw out the steps by the help of which, sales can be increased in the foreign market. To draw out the steps by the help of which, duty charged by the customs on the exports of goods can be saved as much as possible. To draw out the steps by the help of which, demands of the customer's on time can be fulfilled. To draw out the steps by the help of which, all the documents which are

needed in exports can be sended to the customer's at the same time when shipment of goods are done.

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SCOPE OF STUDY

In my opinion this study is very useful to the organization, because this study tells the whole documentation and procedure of exports. And also tells about fluctuations and competition, that company is facing from the outer market. And if the organization realizes these all the things then they perform better than present and by this there is also the development of the organization. On the other hand this study is very useful to me also. This is the first chance when I saw the work of exports which is done by finance by the help of marketing department and all the things which are done by the finance department. This is the first and very useful experience of my life which teach me many things about the market and I say this is also my first move to the Corporate life which make my future best.

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EXECUTIVE SUMMARY

In the emerging net economy, Electronic products infrastructure plays the role of a Powerful business enabler to improve the business processes, to help the focus on goals, strategies and more importantly, to help for serve the customers better. Electronic products like Television Infrastructure demands constant change by executing latest technology, reliable operations and high availability.

Now a day, companies has extended there range and had started selling their products in the both domestic as well as in the foreign market. This type of trading between two countries is called EXPORTS. These days government of every country has given many liberties to the companies for doing this trade as by this transaction, economy of that particular country will increase as well as world economy will also increase.

This report mainly focuses on the process by which exports are done by an organization and on various kind of documents which are to be prepared while doing any kind of trading. This report shows that how all the departments in an organization

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are inter-linked with each other. While doing any international trading there are some inspection done and some certificates which are to be certified by any government

officer. This report tells that finance department has the work of preparing the documents for exports transaction and for the stores or production department. Finance department also codes the prices of products according to the price list of company and the current currency rate. These prices are then made entered in the SAP software of the company so the prices can be recorded in BOOKS OF ACCOUNTING and codes for making entry are provided by marketing department.

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INTRODUCTION OF ORGANIZATION:
SAMTEL GROUP

Samtel Group's journey began in 1973, with a vision to create a world-class organization. Today, Samtel Group is Indias largest integrated manufacturer of a wide range of displays for television, avionics, industrial, medical and professional applications, TV glass, components for displays, machinery and engineering services. The group employs 6000 people in nine world-class factories and has an annual turnover of Rs 12 billion (USD 300M).

Samtel Group has strong design and development skills and is a dependable player with excellent technological capabilities and a long-term commitment to the display industry. Its products are known for ruggedness and reliability and conform to the latest relevant quality standards. The group has excellent relationships with suppliers of key components and the ability to design new products as well as set up hi-tech manufacturing facilities.

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Samtel has registered many patents for developments in display technology and also developed its own technology for automation...

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SAMTEL USA

SAMTEL COLOR LTD

SAMTEL GLASS LTD

SAMTEL GLOBAL
SOURCING

SAMTEL DISPLAY SYSTEMS LTD

SAMTEL GROUP
SAMTEL SAMTEL
ENGINEERING

SERVICES

HAL DISPLAY SYSTEMS LTD

SAMTEL
MACHINES

SAMTEL THALES SAMTEL


ELECTRON DEVICES,

AVIONICS

GmbH

BRIEF HISTORY OF THE SAMTEL GROUPS

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ESTABLISHMENT

YEAR ESTABLISHMENTS
1973 : Teletube Electronics Limited - first B&W picture tube manufacturing plant set up at Ghaziabad. Samtel India Limited set up in Bhiwadi, Rajasthan to manufacture B&W picture tubes in different sizes. Manufacturing facility set-up for electron gun production at Ghaziabad. 1987 : Samtel Color Limited started in technical collaboration with Mitsubishi Electric, Japan to manufacture color picture tubes from its plant in Ghaziabad. Color CRT gun manufacturing plant set-up at Ghaziabad. 1993 : Plant for manufacturing glass for picture tubes set up at Kota through a JV between Corning, USA and Samtel. Deflection Yoke (DYs) division set up in Parwanoo to manufacture Dys for use in color picture tubes. Samtel Electron Devices GmbH formed through strategic acquisition of Thales Germany. JV with Hindustan Aeronautics Ltd (HAL) to form Samtel HAL Display Systems Limited JV with Thales, France to form Samtel Thales Avionics

1983 :

1985 :

1989 :

1998 :

2001 :

2006 :

2008 :

Company Profile

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Brief History GHAZIABAD

of

the

SAMTEL

COLOR

LIMITED

(SCL),

SAMTEL COLOR LIMITED (SCL) is a Public Limited Company and was set up in technical collaboration with M/s Mitsubishi Electric Corporation (MELCO), Japan in 1987 at Ghaziabad, UP. SCL is the largest manufacturer & seller of Colour Picture Tubes (CPTs) in India and is the largest exporter of CPTs in the country. SCL belongs to Samtel Group which was promoted by Mr. Satish Kaura, a technical entrepreneur, in 1973, with a capital of Rs. 7 lakhs only. In the last 25 years, the group has steadily grown to become the largest integrated display tube (both B&W and Colour) manufacturer in the country. With four companies and eight manufacturing locations in its fold, each specializing in different spheres of the cathode ray tube industry, it is a leading name in a business it pioneered. Today it is amongst the largest integrated picture tube manufacturers in the world, covering the gamut of black & white TV picture tubes & display tubes, deflection yokes, electron guns & their components, video monitors, color picture tubes and glass shells. The company started its operation with a production line of 0.5 million in 1987 at a cost of Rs 75 crores. This project was started with technical tie-up with Mitsubishi Electric Company Japan. During last 17 years, through various measures undertaken to improve productivity, plant efficiency and balancing of production line, capacity of Line 1 has been gradually increased to 1.5 million. The 2nd

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production line was added in 1997-98 with a capacity to manufacture 1.5 mio 14" CPTs. The capacity of Line # 2 has been steadily upgraded to 2.4 mio in 2003-04 by index reduction, line balancing and automation. The company added another plant with Line-3, which was commissioned in 2002. This plant is the very modern and highly automated plant in CPT manufacturing and has the capability to manufacture 21 Super Flat and 21 Conventional with a capacity of 2.2 million and this capacity has been increased to 2.4 Million per annum. We are the exclusive manufacturer of 21 Super Flat picture tube in India. During the year 2004-05, company has already commenced the work for Line-4 in Plant 2 for manufacture of 29 Conventional and Flat picture tube at a cost of Rs. 121 Cr. This plant is expected to be commissioned in June05 and shall start commercial production from Sept05. After commissioning of this plant, company will add another exclusive product in its basket, by producing 29 (First to manufacture 29 CPT in India). Company has entered into a technology agreement with Thomson for 29 providing 29 Super Flat tube design. The major equipment is also being bought from Thomson-USA, as one of their running lines has been bought second hand by us. Thomson will also provide technical support of 11 man months during the erection / commissioning stage of this line for faster rampup. Starting with only one product i.e. 21" FST in 1987 the company has steadily extended its product range by introducing new products i.e. 21" FFST, 14" & 20" CPTs. Line # 1 has in built flexibility to produce the three mid sizes products and also 14" CPT while L # 2 is a dedicated line for manufacturing 14" CPTs only. The company's products enjoy ISO

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9002 accredition. Another Group Company, the erstwhile Samtel Electron Devices Ltd. (SED), merged with SCL. The appointed date of merger is 1st April, 1997 though the same became effective on 26th April, 2000. SED was set up in 1985 to manufacture B & W Electron Guns, used in B & W Picture Tubes for TVs and Monitors. The capacity of the B & W Electron guns was steadily increased from 1.25 mio guns p.a. to 6.3 mio guns p.a. in 1998-99. The Company also set up facilities to manufacture colour electron guns in 1991 and increased its capacity from 0.75 mio guns p.a. steadily to 3 mio guns p.a. in 1997-98. The Company also manufacture Heaters & Cathodes, critical components of Electron Guns, for both colour and B & W guns. The Company is also exporting colour electron guns, heaters & cathodes and Deflection Yokes. The company also manufactures deflection yokes- another critical component used in the manufacture of color picture tubes. The facility is situated at Parwanoo in Himachal Pradesh and has a capacity to manufacture 5.4 million color Deflection yokes which are being used in house. The company therefore, has a well integrated business model spreading through the major value chain of the product i.e Tube, Guns and Deflection Yokes. Alongwith its Group company, Samcor Glass Ltd, which manufactures one of the critical glass components used in tube manufacturing-funnels, it is the most integrated tube facility in India.

SHAREHOLDING PATTERN BY OWNERSHIP :

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As on 31st March , 2010

PARTICULARS % OF SHARE HOLDING 49.61 Directors, promoters and family members FIIs Mutual Funds Financial Institution / Banks NRIs / OBCs Corporates Individuals Public Total 1.32 0.02 2.33 13.87 7.26 25.59 100

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Shareholding Pattern
25.59%

49.61%
7.26% 13.87% 0.02% 2.33% 1.32%

Directors, promoters and family members FIIs Mutual Funds

Financial Institution / Banks


NRIs / OBCs Corporates Individuals Public

Promoters and their Background

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The Company was promoted by Mr. Satish Kaura. He is graduate from IIT Kanpur and has Masters in Electronics from Carleton University, Canada. Having gained valuable work experience in North America, he returned to India in 1973 to set up Samtel Group of Companies. From its beginning 30 years ago with a capital of Rs. 7 lacs only, the Samtel Group has today grown to be a multidimensional organisation comprising of four companies with a combined turnover of over Rs.1000 crores.

Mr. Kaura has been the past President of Electronic Components Industries Association (ELCINA) and CII (Northern Region). He was a Director on the Board of ICICI Ltd. He has been associated with CII in various capacities like ChairmanCII Northern Region.

For his distinguished services and contribution in the Field of Science and Technology, Mr. Satish Kaura is awarded the Padam Shree by the Government of India. This award was conferred during felicitation ceremony by the Honble President of India Dr. A.P.J.Abdul Kalam.

BOARD OF DIRECTORS: Mr. Satish K. Kaura (Chairman & Managing

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Director ) Mr. Puneet Kaura Mr. S. P. Gugnani Mr. Arun Bharat Ram Mr. Subodh Bhargava Mr. V. Narayanan Mr. Yogesh Rastogi (ICICI Bank Nominee )

COMPANY SECRETARY :

Mr. Prabhat Kumar Nanda

STATUTORY AUDITORS : S. S. Kothari Mehta & Co. Chartered Accountants

BANKERS :

Punjab National Bank, Canara Bank, ICICI Bank Ltd., State Bank Of India, Yes Bank Ltd.

EXISTING OPERATIONS

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The company has three production lines. These lines are producing 14, 20, 21 FST and 21 FFST. The plant is situated at Village Chaprula, Bulandshahar Road, Ghaziabad. The company has a plot of approximately 27 acres (109,269 sq. metre). Line I had been built in covered area of 40,565 sq. metre and Line II was constructed over a covered area of 14,134 sq. metres.

LINE I The first line was set up in 1988 for manufacturing 21FST product with a capacity of 0.5 million picture tubes. Over the last 16 years, through debottlenecking and change of index speeds, the production capacity of this line has gone up to 1.5 million picture tubes and it is now manufacturing 20, 21 FFST and 14 in the line.

LINE II The line II, was set up in 1997 to produce 14 picture tubes with a capacity of 1.5 million picture tubes. The gross block of Line II is at Rs.202 crores. The production capacity of this line has been enhanced to a level of 2.4 million picture tubes though change in index timing of the line, debottlenecking and automations with meagre capital investment.

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LINE III The Line III, was commissioned in Mar02 to produce 21 FFST and 21 Super Flat picture tubes with a capacity of 2.2 Million picture tubes and this capacity has been further upgraded to 2.4 million. This was the first line to produce 21 SF in the country and is one of the very advanced and highly automated plants in the world.

LINE IV The company has commenced the work for commissioning of the line-4 adjacent to the line-3 in ghaziabad. This plant will be commissioned by June05 and we will be producing 29 picture tubes on this line. The total capital investment on this line will be Rs. 121 Cr .

LINE V The company has commenced the work for commissioning of line-5 at Kota adjacent to the Glass plant of Samcor Glass Ltd for a capacity of 2.5 Million picture tubes. This plant will be initially producing 14 and flexible to manufacture mid size tubes also on the same line. This Plant will start commercial production from Dec05. The total capital investment on this line will be Rs. 162 Cr. This plant will be dedicated exclusively for the Export Purposes.

OTHER GROUP COMPANIES

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TELETUBE ELECTRONICS LIMITED Teletube Electronics is the first company to be setup. Teletube has been the promoter for all the group companies and has shareholding of all the group companies viz. Samtel Color Limited, Samtel India Limited and Samcor Glass Limited. Teletube Electronics Limited is a closely held Public Limited Company. The share holding of this company is entirely with the Directors, their relatives and friends.

SAMCOR GLASS LIMITED Samcor Glass Limited was setup as a 50:50 joint venture between Samtel Group and Corning Incorporated, USA. The share holding pattern of the company is as under: Share Holders % holding

Samtel Group

41%

Corning and Samsung Corning 45%

Financial Institutions & FFI

14%

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SHAREHOLDERS

FINANCIAL INSTITUTIONS & FFI, 14% SAMTEL GROUP, 41%

CORNING AND SAMSUNG CORNING, 45%

SAMTEL GROUP CORNING AND SAMSUNG CORNING


FINANCIAL INSTITUTIONS & FFI

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SAMTEL INDIA LIMITED


Samtel India Limited was one of the co-promoters of Samtel Color Limited and as such has a substantial holding of Samtel Color shares. Samtel India is a public Limited Company with its shares being traded on NSE, BSE and DSE stock exchanges. The share holding pattern of Samtel India Limited is as under:

List of Share Holders Promoters Holding Mutual Funds NRIs Foreign Companies Govt. Institutions

% Share Holding 51.31% 0.09% 4.80% 5.86% 4.86%

Pvt. Corporate Bodies / Indian Companies 4.32%

Public

28.77%

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SHAREHOLDERS

28.77% 51.31% 4.32% 4.86% 5.86% 4.80% 0.09%

PROMOTERS HOLDING

MUTUAL FUNDS
NRI'S FOREIGN COMPANIES GOVT.INSTITUTIONS PVT. CORPORATE BODIES/ INDIAN COMPANIES PUBLIC

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Group Companies/Subsidiaries and the Nature of their Activities


There are 3 Group Companies as follows :

1.

Samtel India Ltd. (SIL) : SIL is in the business of manufacture and sale of B & W TV & Monitor Picture Tubes at Bhiwadi. SIL is also one of the promoter Companies of Samtel Color Ltd. and Samcor Glass Ltd.

2.

Samcor Glass Ltd. (SGL): SGL is in the business of manufacture and sale of Glass Shells for B & W TV/Monitor Picture Tubes and manufacturing of Color Funnel required for manufacture of Colour Picture Tubes for TVs. The Company has technological and equity collaboration with Corning, USA and Samsung Corning, Korea. The Company has manufacturing facilities at Kota, Rajasthan. SGL and SCL are companies under the same management as per sec. 370 of the Companies Act.

3.

Teletube Electronics Ltd. (TEL): TEL is the first Company of Samtel Group and has been instrumental in promoting other Companies of the Group viz. SIL, SGL, SCL and SED (which later got merged with SCL).

The Company is in the business of manufacturing and selling B & W monitors used in specialised applications like medical, security systems defence etc. applications.

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The output of this Company is nearly 100% exported. The Company has also leased their Glass Bulb Sealing facilities to SGL.

4. A.

Subsidiary Paramount Capfin Lease Pvt. Ltd. :

Companies

This is a 100% owned subsidiary of the Company and deals in Investments. B. Blue Bell Trade Links Pvt. Ltd. : This Company owns a plot of Land. No activity has been undertaken in this Company.

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SAMTELS TRACK RECORD IN RESEARCH & TECHNOLOGY DEVELOPMENT

Samtel has pioneered display tube industry in India. Today it is the largest integrated tube manufacturer in the country producing color picture tubes, black and white picture tubes, monochrome monitor tubes, special purpose tubes for military and medical sector, deflection yokes, electron guns and glass funnel for the color picture tubes and supplying to domestic markets and exporting. From the inception Samtel has taken the view that technology is the most important component to remain a market leader and efforts were focused to : Indigenous development of technology and Capital goods. Capability to design and develop new Products in Display segment. Capability to develop associated processes and related equipment for prototype development and mass production.

Samtel initially commenced the business by setting up the line 1 with technical collaboration of Mitsubishi Electric Co., Japan in 1987 and Samtel continuously worked and planned for in-house technology and competency for product development, equipment development and process engineering. With this objective, Samtel set up its own R&D set up and engineers were trained and the competency developed for the same.

The technology agreement with Mitsubishi expired in 1994.With above stated key

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initiatives, Samtel has achieved many milestones, few major ones are: Installed capacity of 0.5 million Color Picture Tubes in technical collaboration with Mitsubishi Electric Co., Japan is enhanced to 1.5 million by process re-engineering and process modifications by in-house R&D and engineering without assistance of collaborator. Installed a new automatic production line with a capacity of 2.4 million Color Picture Tubes. This line has been designed and set up totally by Samtel R&D and Engineering without any collaboration with any foreign company. Successful in-house development and commercialization of 20, 21 FFST and 14 and 21 True Flat Color Picture tubes. Development of 14 CDT and 15 CDT. Design and Development of Heater and Cathode for the Color Picture Tubes. Design and Development of Deflection Yokes for the Color Picture Tubes.

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ACHIEVEMENTS OF THE SAMTEL GROUP 1st to launch 12, 14 and 17 B&W Picture Tubes in India. 1st to launch 14, 21 FST & 21 FFST Color Tubes in India. 1st to launch Monochrome Display Tubes in India. 1st to assemble and seal Glass Shells in India. 1st to establish itself as the largest regular exporter of tubes. 1st to offer the largest range of 14, 21 FST, 21 FFST, & 20 Colour Picture Tubes in India. 1st to manufacture specialty tubes for industrial, military and medical applications, from the private sector - Philips, Siemens, Thomson, Alcatel. 1st to Design & manufacture Color Picture Tube with indigenous efforts. 1st to Design & develop 15 Color display tube for monitor applications. 1st to establish state of art R&D lab to facilitate development of Prototype tubes from 15 to 32 size. And Flat panel displays. 1st to establish in-house Equipment building Cell to cater the need of CRT manufacturing. 1st to start manufacuring of 21 Super flat picture tube in India.

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PRODUCTS OF THE SAMTEL COLOR LTD

Colour Picture Tubes for TVs

PRODUCTS
Electron Guns both for Colour and B&W Picture Tubes.

Deflection Yokes for Color Picture Tubes

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Process Engineering :
All Samtels factories have Process Engineering Groups who are responsible for the manufacturing process development and maintaining them. Some generic processes are developed in product Development and transferred to manufacturing through Process Engineering . They are responsible for productivity improvement / layouts / automation / value engineering / alternate sourcing of strategic components / flexibility and many other important aspects of world class manufacturing . These groups have played a significant role in yield improvement by process redesigns. Following are the few generic processes developed ; A ) Blocked Aperture Knocking Process : In color picture tube electron beam was used as dust removal agent in Electron Beam Trimming Technology . This was done from the first principles . Even Mitsubishi did not have this technology. B ) Black Matrix Salvage process : This is skill based process developed in Screen area of Samtel Color . Improving the yields considerably .

C ) Optimum cathode activation schedules for entire range of products and cathodes . D ) High Voltage reverse seasoning in all the Samtel CRT plants : Improving the breakdown voltage of CRTs considerably . Even Mitsubishi did not give this

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technology to Samtel . This technology is developed in-house and implemented successfully for the first time in the country . E ) Anti Glare and anti Static Coating Process : many patents have been filed on this technology . This technology was developed and implemented for CRTS

for the first time in country . F ) Activation and processing of Dispenser Cathodes : Dispenser cathodes are high life cathodes and tube with very high resolution requires them . For 21 Medical Monitor Tube Dispenser cathode was successfully used from 1997 and commercialized the tube.

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Samtels Corporate Equipment Division ( CED )

CED is a corporate entity responsible for the supply of equipment and automation products to all group companies. The division leverages its competency in design and integration of the automation systems along with its major strategic partnerships with leading overseas companies like BALDOR Inc. (USA), SMC ( Japan ) and FANUC Robotics ( Japan ) for whom it operates as an original equipment supplier ( OEM ) / system integrator.

Its standard equipment includes, PLC and servo motion based equipment for high speed automation, Motion control based equipment, Gantry Robots, Gantry and Articulate Robot combinations and specialized material handling systems based on virtual factory concepts. The division has won laurels for its work in India by winning the coveted ELCINA Award in 1997 as for its pioneering efforts in Import Substitution of capital equipment and for the subsequent saving in foreign exchange.

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Mass Manufacturing Line Design and Set - Up : Samtels Corporate Project Group ( SPG ) has developed the capability of putting large mass manufacturing lines . SPGs threads go back to the monochrome lines when they setup 3 lines, in eighties, for total capacity of 5 M monochrome CRTs for TV and monitor applications . All the 3 lines were designed in-house and commissioned successfully. Because of these lines Samtel remained largest manufacturer of monochrome CRTs in India.

SPG also put Electron Gun Plant for monochrome guns with in-house capability of design. SPG was responsible for putting two mega projects e.g. Samtel color Ltd. Line 1 with Mitsubishi and Samcore Kota with Corning USA.

SPG than taken up the task of upgrading the capacity of Samtel Color Line 1 from initial 0.5 M to present 1.5 Million . All this was done with in-house design capability. The process engineering supported this activity with their knowledge of various manufacturing processes. There was no support from Mitsubishi for this activity. SPGs next feather in cap is Samtel Colors Line 2 (capacity of 1.5 M upgraded to 2.4 M) and Line-3 (Capacity of 1.8 M upgraded to 2.4 M). This line was designed with in-house capability and project was delivered within time delivering the tough quality requirement. The line is currently producing to its capacity.

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This activity was done for the first time in the country. Also this remains to be only successful venture in India considering the competition.

SPG has also delivered the Color Funnel project of Samcor Kota. SPGs next venture is Line-4 at Plant 2 of Samtel Color Ltd and Line-5 at Samtel Color Ltd-Kota.. Samtel has initiated the project for futuristic technologies like Plasma Display panel ( PDP ) . Field Emission Displays ( FED ) and OLED are being launched as other projects having future potential. Samtel has successfully completed the Lab scale prototype development of the PDP.

Samtel has setup a center at Indian Institute of Technology Kanpur for R&D in Display Technologies and invested a sum of Rs. 15 crore for the same. Presently, around 150 Engineers are working continuously for the Research and Development for development of picture tubes, Electron Guns, Deflection Yokes and Process engineering and equipment development.

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PRODUCTION PROCESS

A color picture tube typically consists of following components i.e. Panel , Funnel , Electron Gun, Deflection Yoke , Flat Grill and Shadow mask assembly including Frame, Bi-metals etc., Internal Magnetic Shield. Over and above these, for prototyping and mass production the tube, an Ultra violet Exposure system which includes higher order axially unsymmetrical Aspheric lenses called the Light House System. is essential..

Panel and Funnel are generally Glass components forming the bulk in a CPT. They provide the surface for phosphors and evacuated space to hold Electron Gun and shadow mask and IMS assembly. Design, development and fabrication of these Glass components call for huge capital investment in new molds with appropriate contours and in materials with appropriate compositions for minimizing stresses under vacuum , to take mechanical and thermal stresses under manufacturing process and to minimize X-ray and Electromagnetic radiations.

Electron Gun consists of three in-line cathodes, electro-optic lenses for electron beam acceleration and focusing . Electro-optical grids are designed to achieve predecided spot performance at the Image plane ( i.e. Panel inside surface ) and to achieve best beam convergence. While designing grid shapes and spacing, manufacturing ease and friendliness are also to be considered. Besides,

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Deflection Yoke design and Shadow mask design also demand certain trade offs in the Electron Gun design .

Deflection Yoke deflects the three Electron Beams from center to corners in Horizontal as well as Vertical directions. Horizontal and Vertical deflection frequencies depend upon Telecasting system ( i.e. PAL/NTSC ) and for minimum flicker. Deflection Yoke is designed for minimum power requirement from the chassis, optimum convergence of three beams at all the points on the Image surface, minimum beam spot distortions as beam is moved from center to corners.

Shadow Mask assembly is used as a Color Selection grid in a Color Picture Tube. Aperture sizes and aperture to aperture distances in Horizontal direction are designed in such a way that so that only corresponding electron beams land on particular Phosphor stripe. Shadow Mask Aperture distribution and its profile is designed to achieve uniform Beam spacing throughout the viewable screen area. Besides this, a frame for holding curved shadow mask and a suspension system for precisely holding the whole assembly inside the Panel as well as for holding Internal Magnetic Shield are required.. Thermalexpansion of shadow mask under normal operating condition and discoloration caused in the image due to beam mislanding are also to be taken into account while designing shadow mask aperture distribution ,curvature and its

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spacing from the inside surface of the panel.. Vertical spacing of aperture is decided based on Telecast system to have minimum Moire interference with the scanning lines. Internal Magnetic Shield in a Color Picture Tube is used to protect Electron Beams from the influence of Earth's magnetic field.Internal Magnetic Shield height and window opening towards Electron Gun side is decided based upon Yoke Pull Back, Neck Shadow and magnetic interference with Yoke magnetic field. Besides the above components, to make an array of Green, Blue and Phosphor stripes on inside surface of the panel, Photosensitive slurries are exposed, developed and re-exposed using High intensity Ultra-violet light sources. Effect of Deflection Yoke and Electron Gun combination in a tube is simulated as closely as possible with the UV rays. This is achieved by the X , Y and Z settings of the Light Houses and by designing appropriate optical surfaces in between the UV light source and the Panel. Objective of these optical surfaces is to make incident angles of UV rays on different Shadow Mask apertures exactly equal to those of the Electron beams incidenting on the same apertures in the final Tube assembly. Besides ,design and development of profile equation for such higher order axially symmetrical/asymmetrical aspheric surfaces, accurate fabrication on optical glass calls for sophisticated CNC controlled machining and polishing processes.

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CPT manufacturing Proces : CPT is a major component of Television Assembly which is converting video electrical signals to display image .

Basic Flow Chart Of CPT Manufacturing Process


Components Process.. Press Forming De greasing Mask Frame Assembly
Inspectio n

Flat Grill

Annealing

Panel

Mask Inspection

Stabilizati on Bake

BM/Phosphe r Screen Coating

Aluminizing

Panel Baking

IMS

IMS Assembly

Funnel

Inspec tion

Cleaning

Inner Dag Coating

Frit Glass Application

Frit Sealing

Electron gun

Gun Sealing

Exhaust

Aging

Tagging &Bending

Testin g

Outer Dag Coating

ITC

Screen Inspect ion

Visual Inspect ion

Packing

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MAJOR CHALLENGES FOR THE ORGANIZATION


In the modern world of technology and competition. Every organization is trying to reach at the first position in both the domestic and foreign market. But now days where on one hand companies execute new plans for increasing their sales, so on the hand they execute plans to save extra expenditure which is charged by the government of the particular country on the exports of products or goods. So, the challenges which are faced by the company in current scenario are as follows : To save the export duty as much as possible which is charged on the export of the product. To increase the sales of products in the foreign market i.e. exports. To show the required exports done as per the EPCG Clauses.

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INTRODUCTION OF EXPORTS

The term "export" is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer". In International Trade, "exports" refers to selling goods and services produced in home country to other markets.

any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export goods or services are provided to foreign consumers by domestic producers.

The definition of "export" is when you trade something out of the country. In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade.

In national accounts "exports" consist of transactions in goods and services (sales, barter, gifts or grants) from residents to non-residents. The exact definition of exports includes and excludes specific "borderline" cases.

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INTRODUCTION OF PROBLEM

In today's competitive scenario, companies faces lots of competition to survive in the market. So, Samtel Color Ltd. also faces the problem in the current competitive and frequently changing scenario. As the needs and demands of the customers are changing day-by-day with the changing technology and comforts.

Major problems faced by the company are as follows:

To increase the sales in the foreign market. To save the duty charged by the customs on the exports of goods. To fulfill the demands of the customer's on time. To send all the documents which are needed in exports to the customer's at the same time when shipment of goods are done.

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LITERATURE REVIEW
Definition:
The definition of "export" is when you trade something out of the country. In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade.

In national accounts "exports" consist of transactions in goods and services (sales, barter, gifts or grants) from residents to non-residents.The exact definition of exports includes and excludes specific "borderline" cases. A general delimitation of exports in national accounts is given below:

An export of a good occurs when there is a change of ownership from a resident to a non-resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of ownerhip takes place (e.g. cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair). Also smuggled goods must be included in the export measurement.

Export of services consist of all services rendered by residents to non-residents. In national accounts any direct purchases by non-residents in the economic territory of a country are recorded as exports of services; therefore all expenditure by foreign tourists in the economic territory of a country is considered as part of the

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exports of services of that country. Also international flows of illegal services must be included.

National accountants often need to make adjustments to the basic trade data in order to comply with national accounts concepts; the concepts for basic trade statistics often differ in terms of definition and coverage from the requirements in the national accounts:

Data on international trade in goods are mostly obtained through declarations to custom services. If a country applies the general trade system, all goods entering or leaving the country are recorded. If the special trade system (e.g. extra-EU trade statistics) is applied goods which are received into customs warehouses are not recorded in external trade statistics unless they subsequently go into free circulation in the country of receipt.

A special case is the intra-EU trade statistics. Since goods move freely between the member states of the EU without customs controls, statistics on trade in goods between the member states must be obtained through surveys. To reduce the statistical burden on the respondents small scale traders are excluded from the reporting obligation.

Statistical recording of trade in services is based on declarations by banks to their central banks or by surveys of the main operators. In a globalized

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economy where services can be rendered via electronic means (e.g. internet) the related international flows of services are difficult to identify.

Basic statistics on international trade normally do not record smuggled goods or international flows of illegal services. A small fraction of the smuggled goods and illegal services may nevertheless be included in official trade statistics through dummy shipments or dummy declarations that serve to conceal the illegal nature of the activities.

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History
The theory of international trade and commercial policy is one of the oldest branches of economic thought. Exporting is a major component of international trade, and the macroeconomic risks and benefits of exporting are regularly discussed and disputed by economists and others. Two views concerning international trade present different perspectives. The first recognizes the benefits of international trade. The second concerns itself with the possibly that certain domestic industries (or laborers, or culture) could be harmed by foreign competition.

Exports and free trade


The theory of comparative advantage materialized during the first quarter of the 19th century in the writings of 'classical economists'. While David Ricardo is most credited with the development of the theory (in Chapter 7 of his Principles of Political Economy, 1817),James Mills and Robert Torrens produced similar ideas. The theory states that all parties maximize benefit in an environment of unrestricted trade, even if absolute advantages in production exist between the parties.In contrast to Mercantilism, the first systematic body of thought devoted to international trade, emerged during the 17th and 18th centuries in Europe. While most views surfacing from this school of thought differed, a commonly argued key objective of trade was to promote a "favorable" balance of trade, referring to a time when the value of domestic goods

Page | 48 IMS , LUCKNOW UNIVERSITY , LUCKNOW

exported exceeds the value of foreign goods imported. The "favorable" balance in turn created a balance of trade surplus.

Mercantilists advocated that government policy directly arrange the flow of commerce to conform to their beliefs. They sought a highly interventionist agenda, using taxes on trade to manipulate the balance of trade or commodity composition of trade in favor of the home country.

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BARRIERS FOR EXPORTS


Trade barriers are generally defined as government laws, regulations, policy, or practices that either protect domestic products from foreign competition or artificially stimulate exports of particular domestic products. While restrictive business practices sometimes have a similar effect, they are not usually regarded as trade barriers. The most common foreign trade barriers are government-imposed measures and policies that restrict, prevent, or impede the international exchange of goods and services.

Strategic

International agreements limit trade in, and the transfer of, certain types of goods and information e.g. goods associated with weapons of mass destruction, arms and torture. Examples include Nuclear Suppliers Group - limiting trade in nuclear weapons and associated goods (currently only 45 countries participate).

Tariffs

A tariff is a tax placed on a specific good or set of goods exported from or imported to a country, creating an economic barrier to trade.

Usually the tactic is used when a country's domestic output of the good is falling and imports from foreign competitors are rising, particularly if there exist strategic reasons for retaining a domestic production capability.

Some failing industries receive a protection with an effect similar to a subsidies in that

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by placing the tariff on the industry, the industry is less enticed to produce goods in a quicker, cheaper, and more productive fashion. The third reason for a tariff involves addressing the issue of dumping. Dumping involves a country producing highly excessive amounts of goods and dumping the goods on another foreign country, producing the effect of prices that are "too low

Subsidies

To subsidize an industry or company refers to, in this instance, a governmental providing supplemental financial support to manipulate the price below market value. Subsidies are generally used for failing industries that need a boost in domestic spending. Subsidizing encourages greater demand for a good or service because of the slashed price.

The effect of subsidies deters other countries that are able to produce a specific product or service at a faster, cheaper, and more productive rate. With the lowered price, these efficient producers cannot compete. The life of a subsidy is generally short-lived, but sometimes can be implemented on a more permanent basis.

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Advantages of exporting
Ownership advantages are the firm's specific assets, international experience, and the ability to develop either low-cost or differentiated products within the contacts of its value chain. The locational advantages of a particular market are a combination of market potential and investment risk. Internationalization advantages are the benefits of retaining a core competence within the company and threading it though the value chain rather than obtain to license, outsource, or sell it. In relation to the Eclectic paradigm, companies that have low levels of ownership advantages either do not enter foreign markets. If the company and its products are equipped with ownership advantage and internalization advantage, they enter through low-risk modes such as exporting.Exporting requires significantly lower level of investment than other modes of international expansion, such as FDI. As you might expect, the lower risk of export typically results in a lower rate of return on sales than possible though other modes of international business. Exporting allows managers to exercise operation control but does not provide them the option to exercise as much marketing control. An exporter usually resides far from the end consumer and often enlists various intermediaries to manage marketing activities.

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Disadvantages of exporting

For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and services to foreign markets seems to be more difficult than serving the domestic market. The lack of knowledge for trade regulations, cultural differences, different languages and foreign-exchange situations as well as the strain of resources and staff interact like a block for exporting. Indeed there are some SME's which are exporting, but nearly two-third of them sells in only to one foreign market.[17] The following assumption shows the main disadvantages:

Financial management effort: To minimize the risk of exchange-rate fluctuation and transactions processes of export activity the financial management needs more capacity to cope the major effort

Customer demand: International customers demand more services from their vendor like installation and startup of equipment, maintenance or more delivery services.

Communication

technologies

improvement:

The

improvement

of

communication technologies in recent years enable the customer to interact with more suppliers while receiving more information and cheaper

communications cost at the same time like 20 years ago. This leads to more

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transparency. The vendor is in duty to follow the real-time demand and to submit all transaction details.

Management mistakes: The management might tap in some of the organizational pitfalls, like poor selection of oversea agents or distributors or chaotic global organization.

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Ways of exporting

Direct selling in export strategy

Indirect selling

Direct selling through distributors

Direct selling through foreign retailers and end users

Direct selling over the Internet

In exports process, companies get some incentives from the government of the countries for promoting the exports and for saving the duties which are charged at the time of exports and imports.

Exports incentive is EPCG i.e. Exports Promotion Capital Goods.

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INTRODUCTION OF EPCG
The scheme allows import of capital goods for pre-production, production and post production (including CKD/SKD thereof as well as computer software systems) at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of license. Capital goods would be allowed at 0% duty for exports of agricultural products and their value added variants. However, in respect of EPCG licenses with a duty saved of Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years. In case CVD is paid in cash on imports under EPCG, the incidence of CVD would not be taken for computation of net duty saved provided the same is not Cenvated . The capital goods shall include spares (including refurbished/ reconditioned spares) , tools, jigs, fixtures, dies and moulds. EPCG licence may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the licence holder. Second hand capital goods without any restriction on age may also be imported under the EPCG scheme. Spares (including refurbished/ reconditioned spares), tools, refractory, catalyst

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and consumable for the existing and new plant and machinery may also be imported under the EPCG scheme . However, import of motor cars, sports utility vehicles/ all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators whose total foreign exchange earning in current and preceding three licensing years is Rs 1.5 crores. However, the parts of motor cars, sports utility vehicles/ all purpose vehicles such as chassis etc cannot be imported under the EPCG Scheme.

EPCG for Projects


An EPCG license can also be issued for import of capital goods for supply to projects notified by the Central Board of Excise and Customs under S.No 441 of Customs Exemption Notification No 21/2002 dated 01.03.2002 wherein the basic customs duty on imports is 10% with a CVD of 16%. The export obligation for such EPCG licenses would be eight times the duty saved. The duty saved would be the difference between the effective duty under the aforesaid Customs Notification and the concessional duty under the EPCG Scheme.

Eligibility
The scheme covers manufacturer exporters with or without supporting

manufacturer(s) / vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers.

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Conditions for import of Capital Goods


Import of capital goods shall be subject to Actual User condition till the export obligation is completed.

Replacement

of

Capital

Goods

The Capital Goods imported under the scheme and found defective or otherwise unfit for use may be re-exported and Capital Goods in replacement thereof be imported under the scheme. In such cases, while allowing re-export, the Customs shall recredit the duty benefit availed which can be debited again at the time of import of such replaced Capital Goods.

Extension

In

Export

Obligation

If the EPCG license holder has not utilized the full or utilized in excess, the CIF value of the license for import/ indigenous procurement of capital goods allowed therein, his export obligation shall stand reduced/ enhanced on prorate basis with reference to the actual utilization of the license. In such cases where the CIF value actually utilized is more than the CIF value covered by the license, the license holder shall furnish additional fee to cover the excess CIF value of imports affected subsequently.

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Indigenous Sourcing Of Capital Goods


a. The EPCG license holder intending to source capital goods

indigenously, shall make a request to the licensing authority for invalidation of the EPCG license for direct import. The EPCG license holder shall also give the name and address of the person from whom he intends to source the capital goods. b. On receipt of such request, either at the time of issuance of license or

subsequently, the licensing authority shall make the license invalid for direct import and issue an invalidation letter, in duplicate, to the EPCG license holder. The licensing authority shall simultaneously grant permission to the EPCG license holder to procure the capital goods indigenously in lieu of direct import. c. The indigenous manufacturer intending to supply capital goods to the

EPCG license holder, may apply to the licensing authority in the form given in Appendix-10B along with the documents prescribed therein for import of components required for the manufacture of such capital goods. The indigenous manufacturer may alternatively apply for Advance License for deemed export in terms of paragraph 6.9 of the Policy for import of such inputs as required for the manufacture of capital goods for supply to the EPCG license holder .

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STATEMENTS OF HYPOTHESIS

Hypothesis may be defined as a proposition or a set of proposition set forth as an explanation for the occurrence of some specified group of phenomena either asserted merely as a provisional conjecture to guide some investigation or accepted as highly probable in the light of established facts.

Statements of hypothesis for this report are as follows:

Using the right type of export procedure helps in increasing the sales of goods in foreign market.

Increase in sales does not have any relation with the export procedure of the company.

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RESEARCH DESIGN

The formidable problem that follows the tasks of defining the research problem is the preparation of the design of the research project, popularly known as the research design. Decisions regarding what, when, how much, by what means concerning an inquiry or a research study constitute a research design.

A research design is the arrangement of the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures.

In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. As such the design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data.

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Types of research design

Exploratory research

Types of research design


Casual research

Descriptive research

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The type of research design used for this study is DESCRIPTIVE RESEARCH DESIGN. Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group. In this research, the study is concerned with specific predictions, with narrations of facts and characteristics concerning individuals, groups or situation. The aim is to obtain complete and accurate information in the studies , the procedure to be used must be carefully planned.

Characteristic of descriptive research design Rigid design (design must make enough provisions for protection against bias and must maximize reliability). Pre - planned design for analysis. Structured or well thought out instruments for collection of data Advanced decisions about operational procedures.

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Data collection

Primary data
The data which are collected afresh and for the first time, and thus happen to be original in character. Here the data is collected by survey of sales done through exports by the company.

Secondary data
The data which have already been collected by someone else and which have already been collected by someone else and which have already been passed through the statistical process. Here the data is collected by various sources like annual report, internet, sales report, documents of exports, books, SOP of exports.

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DATA PRESENTATION
PROCEDURE FOR EXPORT ORDER USED BY SAMTEL COLOR LIMITED 1. PURPOSE : To describe a procedure for receipt of Export Order/Letter of Credit from buyer.

2. SCOPE: For availment of Pre-shipment finance from bank and planning for shipment.

3. RESPONSIBILITY AND AUTHORITY : Over all responsibility and authority is with HOD ( Marketing/Business Head) . Specific given against each activity. responsibilities and authorities are

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PROCEDURE

S.NO ACTIVITY 4 Export Order/Letter of Credit 4A.1

RESPONSIBILITY Target Time

Person responsible shall Procure Export MM Order from buyer. Raise Proforma

Immediate

Invoice to buyer and provide a copy of Export Order and Proforma Invoice to Finance Dept. For availing Pre-shipment finance from Bank. 4A.2 Marketing Manager will communicate MM Finance Department the L/C receipt status and Draft/Copy of L/C immediately after receipt from buyer. Immediate

4B

Availement

of

Packing

Credit

Loan/Receipt of Original L/C from buyer and confirmation thereof

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4B.1

On

receipt of Export Order from Finance Finance Department will

As and required

when

Marketing,

approach to Bank to avail Pre-shipment finance (In Rs and/or Foreign Currency, as case may be) on the basis of limits available with bank. 4B.2 On receipt of L/c Draft from Marketing, Finance Finance will check the terms and On same day

conditions of L/C as per checklist and confirm to buyer/agent for opening of L/C and provide transmitted. 4B.3 On the basis of transmitted copy, Finance Finance will follow up with L/C advising bank for receipt of original L/C. 4B.4 Confirmation of L/C, if required (In case of Finance Turkish Bank 100% L/C confirmation required). 5 SHIPMENT / LOGISTIC Within a week Within 2 days

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5A.1

On Receipt of Draft L/C-Finance will Finance approached Marketing & PPC for

Before 2 days of despatch

dispatch plan and Prepare Pre-shipment documents consisting:>Invoice-10 copy >Packing List-10 copy and handover to CHA along with copy of L/C and Proforma Invoice/Export Order for preparation of Shipping documents consisting the following:>Shipping Bill under nominated Scheme >Exchange Control GR Form/SDF 5A.2 CHA will prepare above documents and Finance/CHA submit with Customs Department at Port of Export for processing of Pre-shipment Shipping documents 5A.3 PPC will inform Finance/CHA to call Finance/CHA container for loading a factory Premises One day before dispatch of goods Within 2 days of despatch

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5A.4

>Finance

will

ensure

availability

of DBY

Same day

Container from CHA at 06.00 on the date Manish Mohelay of loading of material >PPC will ensure availability of material according to plan >BSR will ensure to load the container before 2.00 P.M. and dispatch alongwith ARE-1/ARE-2 properly filled and signed. Note: 1. A container reporting register will be maintain 6 6.1 Loading of Container BSR will ensure loading container on CPP/AA/KM/KKG same day according to document C.P.Pandey/A.Ali/ Mazumdar

available with container to avoid any problem in Customs 6.2 CHA will ensure safe delivery of container at Customs Warehouse 6.3 Customs examination on same day or CHA latest by next working day of arrival of container at Customs Warehouse

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6.4

Railing out of container immediately after CHA Customs out of charges on first available train.

7 7.1

Follow up for issuance of Bill of Lading CHA will prepare draft B/L as per exact CHA terms of L/C compliance.

7.2

Finance will check and countersign the Finance B/L to avoid any discrepancy in B/L.

7.3

CHA will submit with S/Line and arrange CHA debit note for payment of S/Line charges for issuance of B/L

7.4

Finance will check and verify the proper Finance authorization of payment to Shipping Line and prepare cheque for payment to Shipping Line

7.5

CHA will ensure delivery of cheque and CHA collection of B/L from Shipping Line duly checked and verified according to draft approved by Finance POST SHIPMENT DOCUMENTS

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On receipt of B/L Finance will check correctness of B/L and prepare following documents as per terms of L/C exactly to avoid discrepancy in documents

8.1 8.2 8.3 8.4 8.5 8.6

Bill of Exchange in duplicate Invoice Packing/Weight List Insurance Certificate Declaration/Certificate Shipping Advise DOCUMENT SET

Negotiation Bank Set >Covering letter >Original L/C Location >Copy of Bill of Exchange >Copy of Invoice >Copy of Customs attested Invoice >Copy of Bill of Lading N/N Copy Foreign Bank Set >1+2 or as case may be-Invoice >1+2 or as case may-Packing/Weight List

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>Full set Bill of Lading (3/3 Original) or as case may be >1+1 Insurance Certificate >GSP Form-A or Certificate of origin as case may be >1+1 Declaration/Certificate as case may be >Copy of Shipping Advise Set of buyer >Covering letter >Copy of Invoice >Copy of Packing/Weight List >Bill of Lading N/N copy >Copy of Declaration/Certificate as case may be >Photocopy of Insurance Certificate >Photocopy of GSP Form-A

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Note

>In case of one original documents set required to be send to buyer, if stipulated in the L/C, Invoice/Packing list should be marked original and 1/3 original B/L and GSP will be send with buyer set. >In case of agent in the Territory, a copy of full buyers set to be send to agent also for information and necessary action.

10

Finance

will

submit

negotiation

documents to bank for negotiation to get post shipment finance and delivery of original set of documents to buyer

through L/C opening bank. 11 Finance will ensure arrival of original set of documents to buyers bank counter before arrival of Vessel at destination port. The following process to be follow:>To collect Courier AWB from negotiation as well as L/C confirming bank and communicate to buyer/agent for tracking of documents at their bank

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SOP (STANDARD OPERATIVE PROCEDURES) of exports

S. No 1 2 3

Process Receipt of P.O. Receipt of L/c-Draft Checking of L/C draft & Confirm

Source/Responsibility Buyer/Marketing Buyer/Marketing to Finance

buyer/marketing/agent 4 5 Arrange copy of Transmitted L/c from buyer Marketing/Agent

Find out & collection of original L/c from Finance Bank

Check List of L/c after receipt of original Finance from bank & prepare check list for following documents (a) Invoice (b) Packing List (c) Bill of Lading (d) Certificate of Origin/GSP Certificate (e) Insurance Policy/Certificate (f) Additional documents, if any

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(g) Other conditions & remarks (h) Yes/No If Yes, then >Comparison/Negotiation charges with banks Minimum 2 banks >Letter to L/C confirming bank within 24 Finance hours to add their confirmation, if required >To ensure confirmation before sailing of Finance goods from Indian Sea Port 7 Inform Marketing to issue delivery order for Finance dispatch 8 Inform BSR to arrange container for Finance of confirmation Finance Confirmation required

dispatch of goods Activity of Marketing & BSR for dispatch of goods >Put up delivery order according to Marketing/PPC

availability of CPTs >To inform CHA for arranging container from S/Lines

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>CHA/Transporter report to BSR through Security at 6.00 A.M.on date of calling the container >Security Gate will made necessary details of Trailer/Container/Driver in a Register and inform to BSR by 9.30 A.M.for arrival of Container >BSR will load the goods in container and clear it out latest by 1300 Hrs on same , if container is detained due to any reason, BSR will inform concerned person in Marketing/Finance through e-mail stating reasons for detention of container. >BSR will provide to Finance copy of dispatch documents viz copy of Excise Invoice & ARE by next day 9.15 A.M to update their records To ensure clearance from Customs/Out of Charges within 24 Hrs from Customs to avoid ground rent To ensure railing out on first available train

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To ensure shipped on board on first available Vessel Bill of Lading from Shipping Line on same day of sailing of Vessel Preparation of negotiable documents on the date of B/L Receipt as per terms of L/C & Check List attached Submission with bank and get it credited to account on same day. To collect credit advise from bank by next day of negotiation To submit bank certificate with bank within 2 days from negotiation To get issued Bank Certificate from Bank within 3 days of negotiation To File DEPB with Jt.DGFT-detailed

separately To Control acceptance/realization from

buyers/foreign bank

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-detailed separately Accounting & others-detailed separately Reports & Returns >ESC- Monthly >FIEO-Annual >EPCG-As detailed separately

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Documents needed for exports procedure L/C ( LETTER OF CREDIT)

L/C Check List


L/C No. ___________________________dt. ________________ Amount US$ ___________________ Buyer : _________________________________ Buyers/LC Opening Bank : __________________________________________ Advising Bank : _____________________________________________________
S.No. 1 2 3 4 5

6 7 8 8A

9 10 11 12 13 14 15 16

Particulars L/c Type Irrevocable Confirmation required Whether Beneficiarys name & address is correct Whether Applicants name & address is correct Restricted on Bank Nme Address: Part shipment permitted Transhipment permitted Sate Bill of Lading permitted Whether B/L required Consignee name other than applicant, if yes, Consignee name is acceptable Acceptable validity of L/C for shipment upto Acceptable validity of L/C for negotiation upto Whether L/C amount is sufficient for goods to be exported Whether description of goods is correct as per contract and FTP Whether payment terms as per contract i.e. Sight/Usance days Whether Port of shipment is acceptable viz Whether Freight Prepaid/Freight to collect is acceptable Whether Insurance will be arranged by

Status Y/N Y/N Y/N Y/N Y/N

Y/N Y/N Y/N Y/N

Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N

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17 18 19 20 21

21

22

applicant/beneficiary is acceptable Whether Insurance Policy/Certificate terms are as per Ins. Policy Whether terms of delivery FOB/C&F/CIF/CFR is acceptable Whether Agency commission is payable, if yes @ FOB Reimbursement clause is acceptable 71B Charges details: Confirmation Charges will be borne by ___________________ Other charges & Commission outside India A/C _____________ Other charges & Commission in India A/C _________________ Claim to be lodge by our bankers, if yes Name & Address of Bank : _________________________________ __________________________________________ _____________ __________________________________________ _____________ Details of documents required: (a) Bill of Exchange drawn on Bank (b) Invoice Original Copy (c) Packing List Original Copy (d) Truck Receipt Original Copy (e) Cert. Of Origin Original Copy (d) Buyers set within days from shipment is acceptable (i) Invoice (ii) Packing List (iii) Bill of Lading Original/N.N. Copy (iv) Insurance Policy/Certificate (e) Beneficiarys declaration/certificate (f) Shipment advise to : (i)

Y/N Y/N Y/N Y/N

Page | 80 IMS , LUCKNOW UNIVERSITY , LUCKNOW

__________________________________________ ____ (ii) __________________________________________ ____ (iii) __________________________________________ ____ by/within___________________________________ __________
24

Any other conditions specified in the L/C

25

Remarks, if any

Checked by __________________

Verified by ______________

Signature of Marketing

Page | 81 IMS , LUCKNOW UNIVERSITY , LUCKNOW

Check List-Invoice & Packing List


Particulars Buyer Consignee Buyer other than consignee Buyers order No., if any L/C Number & Date Place of Receipt Port of Discharge Final destination Terms of Delivery & Payment Shipping Mark Container No. No. Of Boxes Description Quantity Unit Price Total Value of Invoice Case No. Net Wt per container Gross Wt per container Any other information As per L/C As per Actual shipment

Note : All above information will be shown on packing list except unit price & value. >GSP/Certificate of Origin -all above information will be shown except unit price & value. >Insurance Certificate - -all above information will be shown along with terms of insurance as under as per L/c terms & conditions as below:Claims payable at destination in the currency of D.C. Claim settling agent Name & Address

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INVOICE
Exporter Invoice No. & Date: Buyer's Order No. & Date

ORIGINAL SCLG/EXP/PI-000/2010-11 DT. 00/00 /2010

PH - , FAX
Other Reference(s)

L/C NO: ISSUED BY

DT. 00.00.2010 BANK LIMITED

Consignee/For Account and Risk of Messers


TO ORDER OF BANK LTD

Buyer (if other than consignee) / Notify Party

PAN NO.
Pre-Carriage by
Place of Receipt by Pre-Carrier Country of Origin of Goods Country of Final Destination

BY TRUCK RECEIPT NO. DTD.00.00.2010


Vessel/Flight No. Port of Discharge Port of Loading Final Destination Terms of Delivery and Payment

EX-WORKS / CIF L/C AT SIGHT


Marks & Nos./ Container No. No. & Kind of Packages Description of Goods ITEM Quantity Unit Price (PCS) (USD) Amount (USD)

COLOR PICTURE TUBES FOR TV (INDUSTRIAL RAW MATERIALS) PALLETS


1.335.40 MM (14 INCH) COLOR PICTURE TUBES 2. 335.40 MM (14 INCH) COLOR PICTURE TUBES (FOC)

0 0

0.00 0.00

0.00 0.00

AS PER PROFORMA INVOICE NO. SCL/EXP/PI-000/2010 DATED 00.00.2010 HARMONIC CODE NO.: DELIVERY TERMS: EX-WORKS / CIF GHAZIABAD, INDIA
CASE NO. -14 INCH

TO

CUSTOM ENTRY POINT AS BHAIRAHAWA CUSTOM OFFICE , BHAIRAHAWA, NEPAL


NET WEIGHT (KGS) GR.WEIGHT (KGS) TO TAL NO O F CPTS

L/C NO: ISSUED BY


PAN NO.

0 0 0 DT. 00.00.2010 BANK LTD.

KGS KGS PCS

HARMONIC CODE NO.:


EXPORT CODE NO OF EXPORTER-

TOTAL EX-WORKS, GHAZIABAD,INDIA VALUE: USD Amount Chargeable US$

0.00

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Checklist for Bill of Lading


Particulars Consignor Consignee Notify 1 Notify 2 Buyers order No., if any L/C Number & Date Place of Receipt Port of Discharge Final destination Terms of Delivery Payment Shipping Mark Container No. No. Of Boxes Description Quantity Freight Prepaid/Collect THC Case No. Net Wt per container Gross Wt per container Any other information As per L/C As per shipment Actual

&

Page | 86 IMS , LUCKNOW UNIVERSITY , LUCKNOW

SOP for Bangladesh exports ( country to which company export its good)
S. No.

1 2

3 4 5 6

7 8 9 10 11

12

Activity Check List of L/C within 2 days from receipt of draft Information to BSR/Marketing for packing detail/load ability within 2 days from receipt of L/C To provide Loadability detail within 2 days to Finance To follow up with bank for receipt of original L/c To ensure receipt of original L/C from bank before despatch of goods from Plant To Prepare Preshipment documents>Export Invoice >Packing List >DEPB declaration >Despatch/shipment instruction To inform & provide documents to SGS for Preinspection of goods To co-ordinate with SGS & BSR for inspection of goods Call SGS Inspector for Inspection of goods Despatch of goods after inspection of SGS To provide following documents after despatch of docs to finance(a) Excise Invoice (b) ARE-1 & (c) Truck Receipt On next day by 9.30 A.M. To finance To send following docs to CHA (M/s. Kumar & Bros) (a) Invoice, Packing List, L/C Copy, Order Copy & shipping instruction immediately after inspection of goods (b) Excise Invoice, Original ARE in duplicate & Transporter Receipt (Consignee Copy) on next day through courier, (c) E-mail to CHA (Attn.: Mr. ) immediately after receipt of despatch docs from BSR the following information: (i) Commercial Invoice

Responsibility Finance Finance

BSR Finance Finance Finance

Finance

BSR

Finance

Page | 87 IMS , LUCKNOW UNIVERSITY , LUCKNOW

13

14

15 16 17

18

19 20 21 22 23 24

25

26

27 28

(ii) ARE No. (iii) Truck No. (iv) No of Package To prepare & submit certificate of origin with PHD Chamber of Commerce & Industry within 2 days from despatch of goods To ensure collection of C/O duly signed by PHD Chamber of Commerce & Industry within 2 days of submission CHA will send daily status report thru e-mail for arrival of trucks, clearance & shipment of goods. To ensure receipt of shipping documents from CHA within 2 days after exports Prepare negotiation documents sets within one day from receipt of shipping documents from CHA Submission of export documents with bank within 2 days from receipt of shipping documents from CHA. To ensure negotiation/purchase/discount of documents on the day of submission To ensure collection of credit advice from bank within one days from bank To prepare & submission of Bank Certificate with bank within 2 days from date of negotiation To ensure issuance of Bank Certificate from bank within 3 days from bank To Prepare DEPB application & file in e-com within 3-4 days from date of negotiation To ensure submission of Hard copy with the O/O Jt.DGFT within 3 days from submission through E-Com To ensure issuance of DEPB from the O/O Jt.DGFT within 4 days from date of submission of Hard Copy To check and send CHA for verification & registration with Customs of Port of Export within 2 days from receipt of DEPB. To ensure registration of DEPB with Customs within 8-10 working days and receipt back Utilization/sale of DEPB as case may be

Finance

Finance

Mr. S. Bajoria Finance/CHA Finance

Finance

Finance Finance Finance Finance Finance Finance

Finance

Finance

Finance Finance

Page | 88 IMS , LUCKNOW UNIVERSITY , LUCKNOW

Other Note: >To ensure that one truck carry goods of one invoice. >In case of L/C covering quantity more than one truck will be allowed partial shipment. >In case of truck containing goods for two invoices should carry full quantity of both invoices only. No part consignment will be loaded in any truck. >Finance will discuss with BSR & Marketing before preparation packing list to avoid any problem at CHA end due to clubbing of part consignments. >Finance will Fax ARE to CHA immediately after despatch of goods for arranging N-Form >BSR will instruct Truck Driver to contact CHAs agent (Mr. /Mr. , Tel. ) at Check for NForm

Page | 89 IMS , LUCKNOW UNIVERSITY , LUCKNOW

ANALYSIS OF DATA (Companys data gathered) Sales report of last five years
Year 2005-06 2006-07 2007-08 2008-09 2009-10 Exports (in Lakhs) 15791 18592.2 3651.37 810.97 1066.64 Domestic (in Lakhs) Total (in Lakhs) 59984.32 97864.93 73743.6 70926.41 110361.96 75775.79 116457.13 77394.97 71737.38 111428.6

116457.13

111428.6 120000 100000 71737.38 80000 60000 40000 20000

75775.79

77394.97

0 0

0 TOTAL SALES 0 0 0 0

0 0 0 0 0 0 0 2005-06 2006-07 2007-08 2008-09 2009-10


2005-06 2006-07 2007-08 2008-09 2009-10

Page | 90 IMS , LUCKNOW UNIVERSITY , LUCKNOW

COMPARISION IN SALES DONE IN DOMESTIC AND FOREIGN MARKET

SALES IN 2005-06

Exports 15791

Domestic 59984.3

Exports

Domestic

Page | 91 IMS , LUCKNOW UNIVERSITY , LUCKNOW

SALES DONE IN 2006-07

EXPORTS 18592.2

DOMESTIC 97864.93

EXPORTS

DOMESTIC

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SALES DONE IN 2007-08

EXPORTS 3651.37

DOMESTIC 73743.6

EXPORTS

DOMESTIC

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SALES DONE IN 2008-09


EXPORTS 810.97

DOMESTIC 70926.41

EXPORTS

DOMESTIC

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SALES DONE IN 2009-10


EXPORTS 1066.64

DOMESTIC 110361.96

EXPORTS

DOMESTIC

Page | 95 IMS , LUCKNOW UNIVERSITY , LUCKNOW

RESULTS
1. Comparison between domestic market sales and foreign market sales shows that exports slope has been lowered down while the domestic demand is increasing. 2. Exports processes also have an effect on sales of the company products in the foreign market. 3. Each company and every country has its own rules and clauses of doing business so if the customer feels that clauses of the seller are feasible so the customer will go for that product. 4. Now a days, company have to give the insurance certificate to the buyer company just to make sure that if any damages are caused while shipment so that price can be regained. 5. Company has to give a set of documents at the time of shipment for the custom department. 6. Finance department has to send the a set of documents to negotiating bank and one set for the foreign bank as per the documents asked in L/C. 7. In L/C, there is a date before which the finance department of the seller company has to send the documents to the bank.

Page | 96 IMS , LUCKNOW UNIVERSITY , LUCKNOW

Suggestions
After going through all the process of exports, there are parts on which there is an immediate need of giving an attention, and according to whole procedure following are some suggestions which can be applied to improve the exports chain of sales: 1. Documents should be prepared carefully according to the L/C (Letter of credit) so any discrepancy can be avoided. 2. Documents should be send SGS Office just after inspection of products which are to be exported by the inspecting officer, so the notified document can come to the company back and then the documents can be send to the bank. 3. Every country ask for the different kind of certificates which should be given to the buyer company with the documents of exports. 4. Company should keep to customer choice, need and demand at the top of their job as when the customer will be satisfied so then only exports of goods will increase. 5. All the process should be scheduled properly and there should be good coordination between marketing, finance and stores-production department

Page | 97 IMS , LUCKNOW UNIVERSITY , LUCKNOW

Summary & Conclusion


In the whole exports process, we have seen that all the departments of an organization are inter-related. Finance department prepares the whole documents for the exports to be made by the company. Documents for exports are prepared on the basis letter of credit (L/C) issued by the bank. Firstly marketing department brings the Performa invoice after the mutual agreement with the customers to know their actual requirement of product in the written form. A foreign bank open an L/C for the buyer bank in which all the details of order are mentioned. Then that L/C is sent to the seller company. Finance department prepares the invoice and packing list as the initial step of documentation according to the Performa invoice and the Letter of credit (L/C). If there is any amendment in the details mentioned in P.I. (Performa invoice) and details mentioned in Letter of credit, so it should be immediately reported to the customer for avoiding any discrepancy. Prices of products mentioned in invoice should be noted in SAP software of that particular company whose codes are given by marketing department, so these prices can get noted in books of accounts of the company.

Page | 98 IMS , LUCKNOW UNIVERSITY , LUCKNOW

Exports process follows the following flow diagram:

ADVICE TO BE TAKEN FROM BANK & MAKE ENTRY

EXPORTS

PAYMENT TO BE REALISE

PERFORMA INVOICE

DOCUMENTS SENT TO BANK FOR COLLECTION

L/C RECEIVED

DESPATCH OF GOODS & DOCUMENTS TO CUSTOMS

COMMERCIAL INVOICE

TAX CHALLAN & EXCISE INVOICE

PACKING LIST & G.R.


BILL OF EXPORTS

Page | 99 IMS , LUCKNOW UNIVERSITY , LUCKNOW

BIBLIOGRAPHY BOOKS
1. 24TH Annual report of SAMTEL COLOR LIMITED 2. Sample documents from the companies finance department. 3. C.R. Kothari ( Research Designs book )

WEBSITES
1. http://www.samtelgroup.com/ 2. http://exim.locateindia.com/foreign-trade-policy/export-promotion-capital-goods.html 3. http://www.exim-policy.com/EPCG_Scheme.html

Page | 100 IMS , LUCKNOW UNIVERSITY , LUCKNOW