PROCEDURE

OF

EXPORT FINANCE & DOCUMENTATION

By

ALPESH KARAD

Enrollment No –108070592059

The SIP project report submitted

In

Partial fulfillment of the requirements

For the degree of

MASTER’S OF BUSINESS ADMINISTRATION (MBA)

2 years Full Time Program of Gujarat Technological University

Internal Guide

Name of Professor (Prof. XXXXX)

SAL Institute of Management

Ahmedabad.

External Guide

Mr. Suresh Dobariya

Darshan Pharma Chem

Ankleshwar.

SAL INSTITUTE OF MANAGEMENTGUJARAT TECHNOLOGICAL UNIVERSITY

JULY, 2011

Company Certificate

Certificate

This is to certify that the project work title

Title of the Project – in Bold letters

Is the bonafide work of ALPESH KARAD , Enrollment No. – 108070592059

Carried out in the partial fulfillment of the SIP of Master’s of Business Administration

at SAL Institute of Management

Academic Session June-July 2011.

Prof. XXX (Name of Internal Guide)Lecturer/Asst. ProfessorSAL Institute of Management

Sign : __________________

Dr. Viral BhattPrincipal,SAL Institute of Management

Sign : __________________

SAL INSTITUTE OF MANAGEMENT

Acknowledgements

We are extremely thankful to Mr. Suresh Dobariya for their valuable guidance

and the helpline they have provide us throughout our completion of the project we have

undertaken as our SIP. They were always there to lend a helping hand & directed us

towards proper attitude to develop the project. They have always welcomed our queries

and doubts regarding the project work and also in the subjects they have taken with a

great interest to teach us. Without their help and right guidance the completion of the

project would have been very difficult.

The level of knowledge they possess has covered entire aspects of the management

expertise in different fields particularly in our project related Finance. We are also

thankful to our college SAL Institute of Management for offering us such a great

subject that binds all the knowledge we have gained through this SIP. And last but not the

least we would like to thank all our friends who have provided their thoughts about our

project during development and for the further enhancement.

Thanking you,

ALPESH KARAD Enrolment No: 108070592059

PREFACE

The SAL INSTITUTE OF MANAGEMENT, Ahmedabad gives the students an Opportunity to

have an insight of any large scale unit so that we get the exposure to an actual managerial

environment of company. I am lucky to have summer training in a company like Darshan

Pharma Chem which is considered to be one of the “largest establishments” in India.

During this period, I had overview of the finance department within which I could make a detail

study of all the section comes under the roof of finance in Darshan Pharma Chem. This training

will help me to correlate theoretical knowledge and its practical applications. It was a thrilling

experience while studying working of Darshan Pharma Chem and understanding it. This

program has led me to realize the contribution of Darshan Pharma Chem to the Chemical

Industry of India.

I am grateful to the senior executives of Darshan Pharma Chem for their cooperation and

interest in my project without which it could not have been possible to go ahead with my

assignment.

With great pleasure, I present this project which consists of a brief study of Export Finance &

documentation in Darshan Pharma Chem.

ALPESH KARAD

TABLE OF CONTENTS

SR. NO. PARTICULAR PAGE NO.

1 Certificate from Company I

2 Certificate from Institute II

3 Acknowledgements III

4 Preface IV

6 List of tables VI

Chapter No Particulars Page No.

Ch.1 Introduction to Project 1

Ch.2 Company Profile 2

Ch.3 Introduction of Exports 13

Ch.4 Export Finance 16

4.1 Introduction 17

4.2 Concept 18

4.3 Objectives 18

Ch.5 Types of Export finance. 20

5.1 Pre-shipment 22

5.2 Post-shipment 27

Ch.6 Export Document 30

6.1 Letter of Credit 31

6.2 Invoice 37

6.3 Bill of Leading 42

6.4 Insurance document 45

6.5 Certificate of Origin 47

Ch.7 Objective of Project 49

Ch.8 Research Methodology 51

8.1 Data – analysis techniques 52

Ch.9 Data Analysis and Interpretation 54

9.1 Ratio Analysis 55

9.1.1 Liquidity Ratio 55

9.1.2 Activity Ratio 58

9.1.3 Leverage Ratio 62

9.1.4 Profitability ratio 66

7 Conclusion & Limitation of Study VIII

8 Bibliography IX

9 Annexures X

CHAPTER-1

INTRODUCTION OF PROJECT

FINANCE IS THE LIFE AND BLOOD OF ANY BUSINESS. Success or failure of any

export order mainly depends upon the finance available to execute the order. Nowadays export

finance is gaining great significance in the field of international finance.

Many Nationalized as well as Private Banks are taking measures to help the exporter by

providing them pre-shipment and post- shipment finance at subsidized rate of interest.

Government support to bank finance at lower interest rate to promote export business. and Some

of the major financial institutions are EXIM Bank, RBI, and other financial institutions and

banks. EXIM India is the major bank in the field of export and import of India. It has introduced

various schemes like forfeiting, etc.

Document required to exporting products like Commercial invoice, Bill of leading, Bill of origin,

insurance document, and letter of credit for payment purpose. And their importance in export

business.

Ratio analysis has used to know the financial performance of company comparing last two year,

and interpretation of result.

CHAPTER-2

COMPANY PROFILE

Our organization, “Darshan Pharma Chem” operates as a privately held firm. We are one of

the leading domain players, manufacturing of Bulk Drugs Intermediates . The variegated line of

chemical compounds and intermediates that we formulate and process is delivered to the clients

in national and international markets. Clients across chemical, pharmaceutical and medical

industries avail our products.

 

In our quality testing unit, we conduct tests for ensuring that the chemicals have accurate

composition and longer shelf life. Once the products pass all the quality tests, these are sent to

packaging section. Proper packaging, timely deliver, easy payment modes and several other

attributes help us in expanding our clientele. We believe in long-term relationships and assure

that transparency is maintained in all the processes.

 

Our mentor, ‘Mr. Suresh Dobariya’, has always motivated us to excel in the industry and

achieve success, parallel to our potential. His visionary skills and leadership qualities have

guided us over all these years and helped us in effectively meeting the varied requirements of our

clients.

NAME:-

Darshan Pharma Chem Pvt.Ltd

PHONE:-

+(91)-(2646)-223111

FAX:-

+(91)-(2646)-253392

MOBILE:-

+(91)-9904163130

E-MAIL:-

darshanpharma3609@yahoo.com

WEB SITE:-

www.Indiamart-darshanpharmachem.com

COMPANY LOGO:-

Vision:-

"Our vision is to be a leading pharmaceutical company in India and to become a significant

global player, will lead to the establishment of operations in the key markets of the world,

including the developed countries. 

Mission:-

"We strive for a happier, healthier tomorrow. We shall provide total customer satisfaction and

achieve leadership in chosen markets, products and services across the globe, through excellence

in technology, based on world-class research and development.

MANUFACTURING UNIT:-

Plot No. A-1/3621.

GIDC Estate Near ETL,

District Bharuch

Ankleshwar, Gujarat - 393 002, India 

NUMBER OF EMPLOYEE:-

80 EMPLOYESS

LEGAL STATUS OF FIRM:-

LIMITED LIABILITY/CORPORATION(PRIVATELY HELD)

QUALITY POLICY:-

We have adopted a strategic quality control procedure in order to ensure that only reliable products are delivered

from our end. All our fabrication products are developed through advanced methodology and innovative techniques.

Following strict quality control policies, we developed our products in compliance with international norms.

Ethical business practices and qualitative approach provide us with an edge over the other

competitors. Our quality controllers conduct tests on the products, right from the initial stage of

procurement of raw material to the final delivery of the consignment.

Salient Features:

 

High effectiveness

High stability

Stable pH value

High shelf life

PRODUCTS PORTFOLI:-

Our organization is engaged in manufacturing, supplying and exporting a

discursive range of Industrial Chemicals. The extensive line of chemicals that we

offer, includes

1-Acetyl-4-(4-hydroxyphenyl)-Piperazine

2- Chloroethylamine Hcl

2-Amino 5- Methyl Thiazole

1-(2,3- Dichlorophenyl) Piperazine HCL

1-(4-Hydroxyphenyl) Piperazine

1-(4-Methoxyphenyl)Piperazine Dihydrochloride).

 

All these chemicals are processed and packaged in highly advanced and

contamination-free environment.Clients across medical, pharmaceutical, chemical

and other industries can avail our products at nominal prices.

BANKERS:-

Axis Bank

Sate Bank Of India

COMPITETORS:-

Adarsh Dye-chem

Ishita Drugs & Industries Ltd

NGL Fine - Chem Ltd

Zyden Gentec Ltd

DISTRIBUTION NETWORK:-

In India:-

Mumbai

Surat

Ankleshwar

Vapi

Hyderabad

Foreign:-

China

Germany

Our Strengths

Our organization has become a reputed and credible name in the industry with consistent effort

and sheer commitment. By all our endeavors, we look forward to deliver premium quality

products to the clients, which yield maximum profits for them. Our continuously expanding

clientele has taken us to the peak of success. Following attributes act as the strength pillars for

our organization and help in serving the clients in most efficient manner.

Ethical business practices

Modern infrastructure

Team of experts

Quality range of chemicals

Customization

Timely deliver

Our Team

A competitive and qualified workforce is like the backbone of an organization. Professionals and

employees play a vital role in the success of any business and help in satisfying the clientele. We

are fortunate enough to be supported by a team of highly dedicated and efficient workers. Our

professionals work really hard to ensure that all the demands and requirements of the clients are

comprehend without making any compromise on the product quality.

Our team comprises the following members:

Chemical engineers

Production supervisors

Quality controllers

Storekeepers

Packaging experts

Sales & Marketing personne

Quality Assurance

We have adopted a strategic quality control procedure in order to ensure that only reliable

products are delivered from our end. All our fabrication products are developed through

advanced methodology and innovative techniques. Following strict quality control policies, we

developed our products in compliance with international norms. 

Ethical business practices and qualitative approach provide us with an edge over the other

competitors. Our quality controllers conduct tests on the products, right from the initial stage of

procurement of raw material to the final delivery of the consignment.

Facilities We Have

We have latest production, quality testing, packaging and R&D facilities at our unit. Located

at Ankleshwar, Gujarat, our manufacturing unit is equipped with latest production machinery

and associated tools and equipment. A team of diligent professionals helps us in meeting the

excessive demands of the clients and timely prepare the orders.

Our advanced unit enables us to timely complete and deliver bulk orders within the stipulated

time of delivery. The state-of-the-art infrastructure that we boast of has been composed by

modern machinery and dexterous employees.

Warehousing & Packaging

Since, we are dealing in a comprehensive range of Industrial Chemicals, which are both toxic

and prone to air, miniaturization and temperature differences; requirement of a warehouse is

must for us. Therefore, we have developed a capacious warehouse, which allows us to safely

store the bulk orders and ready consignments. It is safe from hazards like pests, moisturize air,

fire and has controlled temperature. In the packaging section of the warehouse, our experts

properly pack the orders so that the physical and chemical properties of the chemicals remain

intact.

Client Satisfaction

We are a client-centric organization and thus, we function on the basis of predefined objectives

and goals. Our policies and business strategies are centered on the client. Our professionals help

us in delivering quality chemicals that are constantly innovated and work with zest to introduce

new and improved products in the market. Our products are delivered in and outside the country.

Following factors help us in satisfying the clients to the core and gaining utmost satisfaction for

them:

 

Immediate response to customers’ queries

Implementation of established quality control policies

Fulfillment of specific requirements of the clients

Easy transaction modes

Customized packaging of the orders

Delivery within stipulated time frame

.

CHAPTER 3

INTRODUCTION OF EXPORTS

The word export defines the sale of product in overseas country.International market being a

very wide market, huge quantity of goods can be sold in the form of exports. Export refers to

outflow of goods and services and inflow of foreign exchange.

Export occupies a very prominent place in the list of priorities of the economic set up of

developing countries because they contribute largely to foreign exchange pool.

Exports play a crucial role in the economy of the country n order to maintain healthy balance of

trade and foreign exchange reserve. It is necessary to have a sustained and high rate of growth of

exports.

Exports are a vehicle of growth and development. They help not only in procuring the latest

machinery, equipment and technology but also the goods and services, which are not available

indigenously. Exports leads to national self-reliance and reduces dependence on external

assistance which howsoever liberal, may not be available without strings.

Though India’s export compared to other countries is very small, but one of the most important

aspects of our export is the strong linkages it is forging with the world economy which is a great

boon for a developing nation like India.

CHAPTER 4

EXPORT FINANCE

4.1 - INTRODUCTION

Credit and finance is the life and blood of any business whether domestic or international. It is

more important in the case of export transactions due to the prevalence of novel non-price

competitive techniques encountered by exporters in various nations to enlarge their share of

world markets.

The selling techniques are no longer confined to mere quality; price or delivery schedules of the

products but are extended to payment terms offered by exporters. Liberal payment terms usually

score over the competitors not only of capital equipment but also of consumer goods.

The payment terms however depend upon the availability of finance to exporters in relation to its

quantum, cost and the period at pre-shipment and post-shipment stage.

Production and manufacturing for substantial supplies for exports take time, in case finance is

not available to exporter for production. They will not be in a position to book large export order

if they don’t have sufficient financial funds. Even merchandise exporters require finance for

obtaining products from their suppliers.

4.2 - CONCEPT OF EXPORT FINANCE:

The exporter may require short term, medium term or long term finance depending upon the

types of goods to be exported and the terms of statement offered to overseas buyer.

The short-term finance is required to meet “working capital” needs. The working capital is used

to meet regular and recurring needs of a business firm. The regular and recurring needs of a

business firm refer to purchase of raw material, payment of wages and salaries, expenses like

payment of rent, advertising etc.

The exporter may also require “term finance”. The term finance or term loans, which is

required for medium and long term financial needs such as purchase of fixed assets and long

term working capital.

Export finance is short-term working capital finance allowed to an exporter. Finance and credit

are available not only to help export production but also to sell to overseas customers on credit.

4.3 - OBIECTIVES OF EXPORT FINANCE

To cover commercial & Non-commercial or political risks attendant on granting credit to

a foreign buyer.

In the manufacturing unit for exporting the products, working capital borrowing for raw-

material purchase up to sales realization duration is very high as compare to domestic

sale therefore working capital borrowing at lower interest is desirable.

Government encourage for export finance for foreign currency reserve

GUIDELINES FOR BANKS DEALING IN EXPORT FINANCE:

When a commercial bank deals in export finance it is bound by the ensuing guidelines: -

a) Exchange control regulations.

b) Trade control regulations.

c) Reserve Bank’s directives issued through IECD.

d) Export Credit Guarantee Corporation guidelines.

e) Guidelines of Foreign Exchange Dealers Association of India.

f) Advance loan at lower interest rate available against export document.

CHAPTER 5

TYPES OF EXPORT FINANCE

The export finance is being classified into two types viz.

Pre-shipment finance.

Post-shipment finance

.

5.1 - PRE-SHIPMENT FINANCE

MEANING:

Pre-shipment is also referred as “packing credit”. It is working capital finance provided by

commercial banks to the exporter prior to shipment of goods. The finance required to meet

various expenses before shipment of goods is called pre-shipment finance or packing credit.

DEFINITION:

Financial assistance extended to the exporter from the date of receipt of the export order till the

date of shipment is known as pre-shipment credit. Such finance is extended to an exporter for the

purpose of procuring raw materials, processing, packing, transporting, warehousing of goods

meant for exports.

IMPORTANCE OF FINANCE AT PRE-SHIPMENT STAGE:

To purchase raw material, and other inputs to manufacture goods.

To assemble the goods in the case of merchant exporters.

To store the goods in suitable warehouses till the goods are shipped.

To pay for packing, marking and labelling of goods.

To pay for pre-shipment inspection charges.

To import or purchase from the domestic market heavy machinery and other capital goods to

produce export goods.

To pay for consultancy services.

To pay for export documentation expenses.

FORMS OR METHODS OF PRE-SHIPMENT FINANCE:

1. Cash Packing Credit Loan :

In this type of credit, the bank normally grants packing credit advantage initially on

unsecured basis. Subsequently, the bank may ask for security.

2. Advance Against Hypothecation :

Packing credit is given to process the goods for export. The advance is given against security

and the security remains in the possession of the exporter. The exporter is required to execute

the hypothecation deed in favour of the bank.

3. Advance Against Pledge :

The bank provides packing credit against security. The security remains in the possession of

the bank. On collection of export proceeds, the bank makes necessary entries in the packing

credit account of the exporter.

4. Advance Against Red L/C :

The Red L/C received from the importer authorizes the local bank to grant advances to

exporter to meet working capital requirements relating to processing of goods for exports.

The issuing bank stands as a guarantor for packing credit.

5. Advance Against Back-To-Back L/C :

The merchant exporter who is in possession of the original L/C may request his bankers to

issue Back-To-Back L/C against the security of original L/C in favour of the sub-supplier.

The sub-supplier thus gets the Back-To-Bank L/C on the basis of which he can obtain

packing credit.

6. Advance Against Exports Through Export Houses :

Manufacturer, who exports through export houses or other agencies can obtain packing

credit, provided such manufacturer submits an undertaking from the export houses that they

have not or will not avail of packing credit against the same transaction.

7. Advance Against Duty Draw Back (DBK) :

DBK means refund of customs duties paid on the import of raw materials, components, parts

and packing materials used in the export production. It also includes a refund of central

excise duties paid on indigenous materials. Banks offer pre-shipment as well as post-

shipment advance against claims for DBK.

8. Special Pre-Shipment Finance Schemes :

Exim-Bank’s scheme for grant for Foreign Currency Pre-Shipment Credit (FCPC) to

exporters.

Packing credit for Deemed exports.

SOME SCHEMES IN PRE-SHIPMENT STAGE OF FINANCE

1. PACKING CREDIT

SANCTION OF PACKING CREDIT ADVANCES:

There are certain factors, which should be considered while sanctioning the packing credit advances

viz.

i. Banks may relax norms for debt-equity ratio, margins etc but no compromise in respect of

viability of the proposal and integrity of the borrower.

ii. Satisfaction about the capacity of the execution of the orders within the stipulated time and

the management of the export business.

iii. Quantum of finance.

iv. Standing of credit opening bank if the exports are covered under letters of credit.

v. Regulations, political and financial conditions of the buyer’s country.

The following particulars are to be verified:

i. Name of the Buyer.

ii. Commodity to be exported.

iii. Quantity.

iv. Value.

v. Date of Shipment / Negotiation.

vi. Any other terms to be complied with.

2. FOREIGN CURRENCY PRE-SHIPMENT CREDIT (FCPC)

The FCPC is available to exporting companies as well as commercial banks for lending to

the former.

It is an additional window to rupee packing credit scheme & available to cover both the

domestic i.e. indigenous & imported inputs. The exporter has two options to avail him of

export finance.

To avail him of pre-shipment credit in rupees & then the post shipment credit either in rupees

or in foreign currency denominated credit or discounting /rediscounting of export bills.

To avail of pre-shipment credit in foreign currency & discounting/rediscounting of the export

bills in foreign currency.

FCPC will also be available both to the supplier EOU/EPZ unit and the receiver

EOU/EPZ unit.

Pre-shipment credit in foreign currency shall also be available on exports to ACU (Asian

Clearing Union) countries with effect from 1.1.1996.

Eligibility: PCFC is extended only on the basis of confirmed /firms export orders or confirmed

L/C’s. The “Running account facility will not be available under the scheme. However, the

facility of the liquidation of packing credit under the first in first out method will be allowed.

Order or L/C : Banks should not insist on submission of export order or L/C for every

disbursement of pre-shipment credit , from exporters with consistently good track record.

Instead, a system of periodical submission of a statement of L/C’s or export orders in hand,

should be introduced.

Sharing of FCPC: Banks may extend FCPC to the manufacturer also on the basis of the

disclaimer from the export order.

5.2 - POST-SHIPMENT FINANCE

MEANING:

Post shipment finance is provided to meet working capital requirements after the actual shipment

of goods. It bridges the financial gap between the date of shipment and actual receipt of payment

from overseas buyer thereof. Whereas the finance provided after shipment of goods is called

post-shipment finance.

DEFENITION:

Credit facility extended to an exporter from the date of shipment of goods till the realization of

the export proceeds is called Post-shipment Credit.

IMPORTANCE OF FINANCE AT POST-SHIPMENT STAGE:

To pay to agents/distributors and others for their services.

To pay for publicity and advertising in the over seas markets.

To pay for port authorities, customs and shipping agents charges.

To pay towards export duty or tax, if any.

To pay towards ECGC premium.

To pay for freight and other shipping expenses.

To pay towards marine insurance premium, under CIF contracts.

To meet expenses in respect of after sale service.

To pay towards such expenses regarding participation in exhibitions and trade fairs in India

and abroad.

To pay for representatives abroad in connection with their stay board

FORMS/METHODS OF POST SHIPMENT FINANCE

1. Export bills negotiated under L/C :

The exporter can claim post-shipment finance by drawing bills or drafts under L/C. The bank

insists on necessary documents as stated in the L/C. if all documents are in order, the bank

negotiates the bill and advance is granted to the exporter.

2. Purchase of export bills drawn under confirmed contracts : The banks may sanction

advance against purchase or discount of export bills drawn under confirmed contracts. If the

L/C is not available as security, the bank is totally dependent upon the credit worthiness of

the exporter.

3. Advance against bills under collection : In this case, the advance is granted against bills

drawn under confirmed export order L/C and which are sent for collection. They are not

purchased or discounted by the bank. However, this form is not as popular as compared to

advance purchase or discounting of bills.

4. Advance against claims of Duty Drawback (DBK) : DBK means refund of customs duties

paid on the import of raw materials, components, parts and packing materials used in the

export production. It also includes a refund of central excise duties paid on indigenous

materials. Banks offer pre-shipment as well as post-shipment advance against claims for

DBK.

5. Advance against goods sent on Consignment basis : The bank may grant post-shipment

finance against goods sent on consignment basis.

6. Advance against Undrawn Balance of Bills : There are cases where bills are not drawn to

the full invoice value of gods. Certain amount is undrawn balance which is due for payment

after adjustments due to difference in rates, weight, quality etc. banks offer advance against

such undrawn balances subject to a maximum of 5% of the value of export and an

undertaking is obtained to surrender balance proceeds to the bank.

7. Advance against Deemed Exports : Specified sales or supplies in India are considered as

exports and termed as “deemed exports”. It includes sales to foreign tourists during their

stay in India and supplies made in India to IBRD/ IDA/ ADB aided projects. Credit is offered

for a maximum of 30 days.

8. Advance against Retention Money : In respect of certain export capital goods and project

exports, the importer retains a part of cost goods/ services towards guarantee of performance

or completion of project. Banks advance against retention money, which is payable within

one year from date of shipment.

9. Advance against Deferred payments : In case of capital goods exports, the exporter

receives the amount from the importer in installments spread over a period of time. The

commercial bank together with EXIM bank do offer advances at concessional rate of interest

for 180 days.

CHAPTER 6

EXPORT DOCUMENTS

6.1 LETTER OF CREDIT

INTRODUCTION:

This is one of the most popular and more secured of method of payment in recent times as

compared to other methods of payment. A L/C refers to the documents representing the goods

and not the goods themselves. Banks are not in the business of examining the goods on behalf of

the customers. Typical documents, which are required includes commercial invoice, transport

document such as Bill of lading or Airway bill, an insurance documents etc. L/C deals in

documents and not goods.

PURPOSE OF LETTER OF CREDIT

The main purpose of letter of credit is to facilitate national and international trade.

With the help of letter of credit exporter and importer come along and serve as a major

guarantor which facilitates whole trading process.

Due to letter of credit the chances of default and risk is low.

Because of letter of credit exporter gets prompt payment for his goods as he can negotiate

with the negotiating bank and get his payment.

And importer remains satisfied that exporter cannot breach the contract as he has a strong

guarantor which allows the trust of exporter.

Thus, both the parties get benefit at the end and ultimately the purpose of letter of credit

is accomplished that it facilitates the trade between two parties.

DEFINITION:

A Letter of Credit can be defined as “an undertaking by importer’s bank stating that payment

will be made to the exporter if the required documents are presented to the bank within the

validity of the L/C”.

PARTIES INVOLVED IN LETTER OF CREDIT:

PARTIES

TO

LETTER

OF

CREDIT

APPLICANTISSUING

BANKBENEFICIARY ADVISING

BANK

CONFIRMINGBANK

NEGOTIATEDBANK

REIMBURSEMENTBANK

APPLICANT The applicant of an L/C is normally the buyer of the goods who is to make

payment to the seller. It is as his request and instruction that the issuing bank opens the L/C.

ISSUING BANK The issuing bank is the bank which opens the L/C in favors of beneficiary.

By opening the L/C the issuing bank under takes the responsibility to make payment to seller on

compliance of required terms and conditions.

BENEFICIARY The beneficiary is the seller of goods who is to receive payment from buyer.

The L/C is opened in his favor to enable him to receive payment on submission of stipulated

documents.

ADVISING BANK The advising bank advice the credit to beneficiary .It is generally situated

in the country of beneficiary.

CONFIRMING BANK The advising bank or any other bank so authorized by the issuing bank

may assume the role of a confirming bank and add its confirmation to the L/C opened by the

issuing bank.

NEGOTIATED BANK The negotiated bank is the bank that negotiates the documents

submitted to them by the beneficiary under the credit either advised through them or restricted to

them for negotiation.

REIMBURSEMENT BANK The reimbursing bank is that who maintains with the account of

credit opening bank. When the documents under the credit are negotiated by the beneficiary bank

they claim the negotiated amount from the name reimbursing bank in the L/C who pays the

amount on receipt of claim made within the validity date of the credit by debiting to the account.

A Letter of Credit contains these elements:

A payment undertaking given by the bank (issuing bank) on behalf of the buyer

(applicant)

To pay a seller (beneficiary) a given amount of money on presentation of specified

documents representing the supply of goods within specific time limits

These documents conforming to terms and conditions set out in the letter of credit

Documents to be presented at a specified place.

In simple words, the Issuing Bank's role is twofold:

To guarantee to the seller that if complete documents are presented, the bank will pay the

seller the amount due. This offers security to the seller – the bank says in effect "We will

pay you if you present documents (XYZ)"

To examine the documents and only pay if these comply with the terms and conditions

set out in the letter of credit. This protects the buyer's interests - the bank says "We will

only pay your supplier on your behalf if they present documents (XYZ) that you have

asked for"

ADVANTAGES OF LETTER OF CREDIT

ADVANTAGES TO THE EXPORTER:

No blocking of funds.

Clearance of import regulations.

Free from liability.

Pre- shipment finance.

Non-refusal by importer.

Reduction in bad-debts.

Bank guaranty

ADVANTAGES TO THE IMPORTER:

Better terms of trade.

Assurance of shipment of goods.

Overdraft facility.

No blocking of funds.

Delivery on time.

Better relations

Bank guaranty

DISADVANTAGES OF LETTER OF CREDIT:

Lacks flexibility.

Complex method

Expensive for importer

Problem of revocable L/C

IILUSTRATION OF LETTER OF CREDIT

PMC COMPANY: Applicant

SHANGHAI ZHENHUA: Beneficiary

SBI BANK: Issuing Bank

AGRICULTURAL BANK OF CHINA: Advising Bank

PMC Company wants to buy 5, 000, and 00 worth of dredgers from Shanghai Zhenhua which

agrees to sell the merchandise and gives a company 60 days to pay it with the condition that you

provide them with a 90 days letter of credit for the full amount. The steps to get the LC would be

as follows:

PMC Company goes to SBI Bank and requests a 5, 00,000letter of credit with Shanghai

Zhen as a beneficiary.

The bank goes through its underwriting process. Although the bank is not advancing

money, they are extending credit on company’s behalf and are taking on a contingent

liability but if the company qualifies from a credit standpoint the LC is issued.

The SBI bank sends a copy of the letter of credit to Agricultural Bank of China, which

lets the vendor, knows and the merchandise is shipped.

Thus, the letter of credit itself might be the source of repayment of the transaction.

6.2 Invoices

A Commercial invoice is the evidence of the contract of sale and purchase. It is a

document made by the exporter on the importer indicating details like description of

goods consigned, consignor’s name, consinee, s name, name and date of bill of lading,

country of origin, price, terms of payment etc.

The invoice should be made out in the name of applicant.

The invoice should be drawn in the same currency of L/C

The invoice should not include any charge not stipulated in L/C.

The invoice should show the deduction towards advance payment made,

commission payable etc.

Description of the goods specified in invoice should correspond to the description

in the letter of credit.

Value of the invoice does not exceed the available balance of the letter of credit

The invoice heading must contain your company's name and address expressed

and spelt exactly as in the credit

Details stated on the invoice should correspond to details specified in all other

documents.

Pro-forma Invoice:

A pro-forma invoice is an invoice sent to the buyer before the shipment, giving the buyer a

chance to review the sale terms (quantity of goods, value, specifications) and get an import

license, if required in their country. It also allows the buyer to work with their bank to arrange

any financial process for payment. For example, to open a Documentary Credit (Letter of

Credit), the buyer’s bank will use the pro-forma invoice as a source of information. The

exporter/seller should not send their customer a pro-forma invoice unless they fully understand

what they are offering to the buyer. If no changes are required on the pro-forma invoice after the

buyer reviews it, the exporter can simply change its date and title and turn it into a commercial

invoice.

Commercial Invoice:

A commercial invoice is prepared by the seller/exporter and addressed to the buyer/importer,

and is one of the first documents prepared when a transaction has been agreed upon. The invoice

identifies the buyer and seller, describes the goods sold and all terms of sale, including

IncoTerms, payment terms, relevant bank information, shipping details, etc. An invoice may be

itemized to show cost of goods, freight, and insurance, or other special handling. The invoice

may be numbered and have multiple “purchase order” numbers. U.S. Customs does not actually

need a copy of the invoice, unless requested, but the information included is used to prepare

other documents.

1. EXPORTER - The name and address of the principal party responsible for effecting export

from the United States. The exporter as named on the Export License.

2. CONSIGNEE - The name and address of the person/company to whom the goods are shipped

for the designated end use, or the party so designated on the Export License.

3. INTERMEDIATE CONSIGNEE - The name and address of the party who effects delivery

of the merchandise to the ultimate consignee, or the party so named on the Export License.

4. FORWARDING AGENT - The name and address of the duly authorized forwarder acting as

agent for the exporter.

5. COMMERCIAL INVOICE NO. - Commercial Invoice number assigned by the exporter.

6. CUSTOMER PURCHASE ORDER NO. - Overseas customer's reference of order number.

7. B/L, AWB NO. - Bill of Lading, or Air Waybill number, if known.

8. COUNTRY OF ORIGIN - Country of origin of shipment.

9. DATE OF EXPORT - Actual date of export of merchandise. 10. TERMS OF PAYMENT -

Describe the terms, conditions, and currency of settlement as agreed upon by the vendor and

purchaser per the Pro Forma Invoice, customer Purchase Order, and/or Letter of Credit.

11. EXPORT REFERENCES - May be used to record other useful information, e.g. - other

reference numbers, special handling requirements, routing requirements, etc.

12. AIR/OCEAN PORT OF EMBARKATION - Ocean port/pier, or airport to be used for

embarkation of merchandise.

13. EXPORTING CARRIER/ROUTE - Record airline carrier/flight number or vessel

name/shipping line to be used for the shipment of merchandise.

14. PACKAGES - Record number of packages, cartons, or containers per description line.

15. QUANTITY - Record total number of units per description line.

16. NET WEIGHT/GROSS WEIGHT - Record total net weight and total gross weight

(includes weight of container) in kilograms per description line.

17. DESCRIPTION OF MERCHANDISE - Provide a full description of items shipped, the

type of container (carton, box, pack, etc.), the gross weight per container, and the quantity and

unit of measure of the merchandise.

18. UNIT PRICE/TOTAL VALUE - Record the unit price of the merchandise per the unit of

measure, compute the extended total value of the line.

19. PACKAGE MARKS - Record in this Field, as well as on each package, the package

number (e.g. - 1 of 7, 3 of 7, etc.), shippers company name, country of origin (e.g. - made in

USA), destination port of entry, package weight in kilograms, package size (length x width x

height), and shipper's control number (e.g. - C/I number; optional).

20. MISC. CHARGES - Record any miscellaneous charges which are to be paid for by the

customer - export transportation, insurance, export packaging, inland freight to pier, etc.

21. CERTIFICATIONS - any certifications or declarations required of the shipper regarding

any information recorded on the commercial invoice.

6.3 BILLS OF LADING(AIR,OCEAN,RAILROAD,TRUCK)

A bill of lading is a document issued by a company acknowledging the receipt of

goods for carriage which are deliverable to consignee in the

Same condition as they were received.

The bill of lading must satisfy certain requirement

Indicate the name of the carrier and be signed by the carrier, master or named

Agent

Indicate the goods have been dispatched, taken in charge or shipped on board at the

place stated in the credit

Indicate the place of dispatch, taken in charge, ports of loading and discharge,

and/or the final destination stated in the credit

Indicate a brief description of goods being carried.

Must indicate whether the freight is prepaid or is payable.

Indicate the date and place of issuance.

Present the documents within the time limit specified in the credit

If no such period is stipulated, banks will refuse documents presented later than 21

days from the date of the document.

A bill of lading should not unless otherwise specified by the terms of L/C

Be a chartered party bill of lading.

Indicate that the goods are or will be loaded on “DECK”

Be a claused bill of lading.

Be issued by a freight forwarder.

Other aspects of bill of lading

If a bill of lading is issued on board, bill of lading must indicate the name of

carrying vessel.

A charter party bill of lading need not show the name of carrier.

Bill of lading received for shipment can be treated as an “on board” bill of lading if

received for shipmen

If L/C calls for “marine B/L” without specifying whether it should be on “board” or

“received for shipment” only “on board B/L” will be accepted.

Date of issue of B/L or on board notation should be dated prior to the shipment date

permitted under L/C

Shipping marks, gross/net weight etc.specified on bill of lading must correspond to

those specified in other documents.

FORMAT OF BILL OF LADING

6.4 INSURANCE DOCUMENT

It is a document issued to protect the insured against risk of loss or damage to goods. Insurance

document should be issued and signed only by insurance companies or underwriters or agents.

The insurance document should be signed by the issuer and dated.

The insurance document must indicate the name of the assured and also give brief

details of the goods insured.

The insurance document must be expressed in the same currency as the letter of

credit.

It should be in negotiable form.

If the insurance document is issued in more than one negotiable copy, all copies

must be submitted.

It should indicate the port of shipment and destination or point of insurances

coverage.

It should cover all risk specified in letter of credit.

The amount must be at least 110% of the CIF or CIP value of the goods.

Format of Insurance

6.5 CERTIFICATE OF ORIGIN

Many countries require a certificate of origin from the supplier of goods stating the origin

of goods and certified by the Chamber of commerce or any other recognized authority in

the exporter’s country. Certificate of origin is an important documents in case of imports

into India to determine the origin of goods for the method of payment purpose.

It must be issued and signed by independent authority such as Chamber of

Commerce indicating the origin of goods.

It is a unique document and not combined with any other document.

The country of origin certified must be as per L/C requirement and consistent

with the declaration given by the beneficiary.

It must indicate the description of goods and should be consistent with other

documents.

It must indicate the name of the consignor and name of consignee.

CHAPTER 7

OBJECTIVES OF PROJECT

OBJECTIVES OF PROJECT

To know the export procedure.

To understand practical aspects of exporting product.

To know requirement of fund and document for Export.

To know Government Policy regarding export of pharma chemical product.

To learning about export benefits.

CHAPTER 8

RESEARCH

METHODOLOGY

Information regarding to the working management is collected by way of interviewing persons

and from documents and knows basic things relating to topic by observing the work.

SECONDARY DATA

This is method used for collecting information. This is a standard and reliable method of

gathering information. Information relating to company, variously norms set by banks while

borrowing loans for working capital, policy followed by company towards creditors and debtors

etc is collected through studying various documents. Various documents like budget files,

monthly report files, audit reports, document required at the time import and export etc.

ON SITE OBSERVSTION

With the help of observation one should know the actual process of working which we cannot

understand by reading or listening. This method is very essential especially to see actual working

of manufacturing in plant. Observation is also important to know document process, License

process for export, Letter of credit process for payment etc. With the help of this method we

know the cash management, monthly closing of accounts, verification of stocks etc. In this way

the overall functioning of the organization and its culture can be better understood by actually

observing the things.

8.1 Data – analysis techniques

There are several tools of analyzing of working capital of a concern. The important of them

adopted as followed.

1. STATIC TOOLS

Financial Ratio Analysis

2. DYNAMIC TOOLS

a) Balance Sheet

b) Profit & Loss Account

\

CHAPTER 9

DATA ANALYSIS

AND

INTERPRETATION

9.1 RATIO ANALYSIS

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as “the indicated

quotient of two mathematical expressions” and as “the relationship between two or more thing.”

The relationship between two accounting figures, expressed mathematically, is known as

financial ratio. Ratio helps to summaries large quantities of financial data and to make qualitative

judgment about the firm’s performance.

There are mainly three types of ratio consider for working capital:-

1. LIQUIDITY RATIO

2. ACTIVITY RATIO

3. LEVERAGE RATIO

4. PROFITABILITY RATIO

INTERPRETATION OF RATIOS OF

9.1.1 LIQUIDITY RATIOS

Liquidity refers to the ability of a firm to meet its obligations in the short run, usually one year. Liquidity ratios are generally based on the relationship between current assets (the sources for meeting short-term obligations) and current liabilities. The important liquidity ratios are,

Current ratio :

Indicate liquidity of the company the std is 2:1

Current ratio = Current Assets

Current Liabilites

Current asset = cash and bank balances, marketable securities, inventory of raw materials,

semi-finished goods and Finished Goods,bills receivables ,prepaid expenses and

provision for bad debts.

Current Liabilites = Trade creditors, bills payable bank credit, provision for Tax,

Dividend etc

Rationale of Current Ratio : It indicates the ability of short-term solvency. It indicates the

rupee available for paying of current liabilities.

2009-10 2010-110

0.5

1

1.5

2

2.5

3

3.5

43.35

2.32

Current ratio

Current ratio

Year

Poin

ts

Interpretation: The Current Ratio has been less in last Year compared to 2009-10 which

Indicates that the company has lesser amount of cash available for meeting up the current

liabilities , but still the ratio is satisfactory as last year’s is 2.32 :1 i.e. 2.32 rupee of asset is

available to pay off 1 rupee debt.

Years 2009-10 2010-11

Current Assets(in cr.) 3.25 4.58

Current Liabilities(in cr.)

0.97 1.97

sCurrent Ratio(in points)

3.35 2.32

Quick Ratio : It includes only the cash part of the assets. And hence is also called as Acid-test ratio.

Here Quick Ratio= Quick asset

Current liabilities

Quick asset includes= Cash in Bank / Hand, Debtors receivables and short term

marketable securities – prepaid expenses and inventory.

Use: It is a rigorous measure of a firm’s ability to service short-term liabilities; it is

widely accepted as the best available test of investors in the firm.

Years 2009-10 2010-11

Quick Assets (Cr.) 3 4.25

Current Liabilities(Cr.)

0.97 1.97

Quick Ratio (In Points)

3.10 1.16

2009-10 2010-110

0.51

1.52

2.53

3.5 3.1

1.15999999999999

Quick Ratio

Quick Ratio

Year

Poin

ts

Interpretation : The standard ratio is 1:1 and it will decresing from 2009-10 to 20010-11, here it

is 1.16:1 which is more than standard it is good to be company.

9.1.2 ACTIVITY RATIOS Turnover ratios, also referred as activity ratios or assets management ratios, measure how

efficiently the assets are employed by firm. The important turnover ratios are,

Asset Turnover Ratio:

This ratio is also known as the investment turnover ratio. Is based on the relationship

between the COGS and investments of a firm. The ratio however measures the efficiency

of a firm in managing and utilizing its assets. The higher the Turnover ratio the more is

the efficiency.

Fixed Asset Turnover Ratio = Net Sales

Net Fixed Assets

Years 2009-10 2010-11

Net Sales(Cr.) 4.58 6.06

Net Fixed Assets(Cr.) 1.09 1.01

Asset Turnover Ratio(%)

4.20 6

2009-10 2010-110

1

2

3

4

5

6

7

4.2

6

Chart Title

Series 1

Year

APer

cent

age

(%)

Interpretation : The asset/investment has been above 60% for last 4 years i.e. above 60% of

asset were easily converted in to COGS. Hence GACL is capable to co

nvert the investment’s 64-65% into COGS. The prediction also shows that for year 2008-09 the

ratio would be 64

ACCOUNT’S RECEIVABLE PERIOD :

Is the period in which the customers/debtors pay-back the amount hence. Its

also called as Bills receivables it is in terms of days.

Formula: Account’s receivable period= Total Debtors x 365

Net Sales

Years 2009-10 2010-11

Total Debtors(Cr.) 1.14 1.09

Net Sales(Cr.) 4.58 6.06

Account’s receivable period(days)

90.85 65.65

2009-10 2010-110

102030405060708090

100

Account's Receivable Period(Days)

Account's Receivable Period(Days)

Year

Day'

s

Interpretation: The Debtors payable period in days have remain almost of 2 months for Gacl it

has been reduced to 50 days to the current year. For the predicted year it may 51 days.

Invetory Turnover ratio :

This indicates the number of times inventory is replaced during the year. It measures the

relationship between the COGS and the inventory level.

Formula := Net Sales ( including excise duty recovered)

Average Inventory

Average Inventory = (opening balance+ Closing Balance

Years 2009-10 2010-11

Net Sales(Cr.) 4.58 6.06

Avg Inventory (Cr.) 0.53 1.89

Average inventory Ratio(Times)

8.64 3.21

2009-10 2010-110123456789

108.64

3.21

Average Inventory ratio(Times)

Average Inventory ratio(Times)

Year

Tim

es

Interpretation: Is similar to the Inventory holding period, but it shows the data in terms of

times. Here GACL was able to convert its inventory in COGS 13 times, the ratio is less

compared to previous year because of slow-down in demand and also because of the over-

stocking of chlorine . The predicted ratio for year 2008-09 is set-out to be 14 times

9.1.3 LEVERAGE RATIOS:

Financial leverage refers to the use of debt finance. While debt capital is a cheaper

source of finance, it is also a riskier source of finance. Leverage ratios help in assessing

the risk arising from the use of debt capital.

DEBT/EQUITY RATIO :

Actually indicates the proportion of Debt and Equity . i.e. the shareholders fund and The

Debt claims. Its major application is for long-term funding , but while funding for the

working capital Financial Institutions also consider this ratio for various purposes

importance for creditors, owners and firm itself. The higher the ratio is a bad signal as

owner’s are putting less money.

Debt/Equity= Secured Loans+Unsecured Loans -(secured+ unsecured Debts)

Share Capital+Reserve and Surplus

Years 2009-10 2010-11

Debt(Cr.) 0.03 0.07

Equity(Cr.) 2.99 2.99

Debt/Equity Ratio(points)

0.01 0.023

2009-10 2010-110

0.005

0.01

0.015

0.02

0.025

0.01

0.023

Debt/Equity Ratio(Points)

Debt/Equity Ratio(Points)

Year

Poin

ts

Interpretation: Here the last year’s ratio was 0.3:1 i.e. for every 0.3 rupee of debt the company

has 1 rupee of owner’s capital. Since last 3 years the GACL’s Debt funding for long-term

project’s has been less as it less that 1(0ne).

INTEREST COVERAGE RATIO :

Also known as “time –interest –earned ratio” It measures the debt servicing capacity of a

firm in so far as fixed interest on long-term loan concerned.

But it is also used for analysis as it indicates the company’s capacity to pay-off the long-

term loan.

The lower the ratio more the company is burden by that expenses. When the interest

coverage ratio is less than 1.5 or lower its ability to meet the expenses may be

questionable and interest Coverage below 1 indicates that company is not generating

sufficient revenue to satisfy interest expense.

Formula: Profit before Interest and Taxation

Interest

Years 2009-10 2010-11

PBIT(Cr.) 0.43 0.52

Interest(Cr.) 0.03 0.04

Interest Coverage Ratio(Times)

14.33 13

2009-10 2010-1112

12.5

13

13.5

14

14.5 14.33

13

Interest Coverage Ratio(Times)

Interest Coverage Ratio(Times)

Year

Tim

es

Interpretation : Here its calculated wrt Times, Hence in 2007-08 15.75 times the GACL was

able to pay-off the Interest

Net Working Capital

Net working capital (NWC) represents the excess of asset over current liabilities. The

term current asset refers to asset, which in the normal courses of business get converted

into cash over short period, usually not exceeding one year. Current Liabilities are those

liabilities, which are required to be paid in short period normally one year. An enterprise

should have sufficient NWC in order to be able to meet the claims of the creditors and

meeting the day-to-day needs of Business. The greater the amount of the NWC, the

greater the liquidity. Inadequate working capital is the first sign of financial problem of

the firm.

Net working Capital = Current asset-Current liabilities

Years 2009-10 2010-11

Current Assets(Cr.) 3.25 4.58

Current Liabilities ( Cr.) 0.97 1.97

NET WC requirement(Cr.) 2.28 2.61

2009-10 2010-11

Net Working capital(Cr.) 2.28 2.61 NaN NaN

2.15

2.25

2.35

2.45

2.55

2.65

Net Working capital(Cr.)

Rupe

es

Interpretation : The Working capital requirement for the year 2007-08 is 2085.27 which

indicates that the net working capital requirement has been reduced because of the last year’s

unused inventory and cash, also most of the cash is been utilized from internal accruals .

9.1.4 PROFITABILITY RATIO

Gross Profit Ratio:

Gross profit is defined as the difference between net sales and cost of good sold.

Formula:

= Gross Profit * 100

Net Sales

Years 2009-10 2010-11

Gross Profit(Cr.) 0.40 0.31

Net Sales ( Cr.) 4.58 6.06

Gross Profit Ratio(%) 8.73 5.12

2009-10 2010-110

2

4

6

8

10 8.73

5.12

Gross Profit Ratio(%)

Gross Profit Ratio(%)

Year

Perc

enta

ge(%

)

Interpretation :This ratio shows the margin left after meeting manufacturing costs.It has decrersing from year 2009-10 to 2010-11 up to 3 %.

Net Profit Ratio

It measures the overall efficiency of production, administration ,selling, financing ,

pricing, and tax management. Jointly considered, the gross and net profit margin ratios

provide a valuable understanding of the cost and profit structure of the firm.

Formula:

= Net Profit * 100

Net Sales

2009-10 2010-110123456789

108.73

6.44

Net Profit Ratio(%)

Net Profit Ratio(%)

Year

Perc

enta

ge(%

)

Interpretation :This ratio shows the earning left for shareholders(both equity and prefernce) as a percentage of net sales.The net profit has decrese in 2010-11 comparing to 2009-10 even those net sales has increse in 2010-11,because expenses are incesing at higer rate than price of product increse,increse in row material.munufactuing overhead etc.

Conclusion

Years 2009-10 2010-11

Net Profit(Cr.) 0.40 0.39

Net Sales ( Cr.) 4.58 6.06

Net Profit Ratio(Cr.) 8.73 6.44

Studied the all relevant Documentations for Exporting products

Undergone learning of all relevant procedure regarding Letter of Credit, Commercial invoice, Bill of Leading, Bill of Origin, Insurance document, etc.

Developed sales skills and confidence in handling marketing.

Limitation of Study

Due to long distance of port from Ankleshwar, shipment and related all information could not be furnished.

Due to shortage of time the Export Finance Banks could not be visited.

Due to distance and shortage of time

Bibliography

Web site:

www.darshanphrmachem.com

www.moneycontorl.com

www.sifyfinance.com

www.gnft.gov.com

Book:

Financial management By Prasanna Chandra

Other:

Company internal database.

Annexures

Balancesheet – Darshan Pharma Chem.

Particulars Mar'11 Mar'10

Liabilities: 12 Months 12 Months

Share Capital 2.99 2.99

Reserves & Surplus 1.06 0.80

Net Worth 4.05 3.79

Secured Loans 0.07 0.03

Unsecured Loans 0.00 0.00

TOTAL LIABILITIES 4.13 3.82

Assets : Gross Block 3.39 3.31

(-) Acc. Depreciation 2.38 2.22

Net Block 1.01 1.09

Capital Work in Progress. 0.00 0.00

Investments. 0.50 0.45

Inventories 1.89 0.53

Sundry Debtors 1.09 1.14

Cash And Bank 1.27 1.33

Loans And Advances 0.33 0.25

Total Current Assets 4.58 3.25

Current Liabilities 1.97 0.97

Provisions 0.00 0.00

Total Current Liabilities 1.97 0.97

NET CURRENT ASSETS 2.61 2.28

Misc. Expenses 0.00 0.00

TOTAL ASSETS (A+B+C+D+E) 4.13 3.82

Profit & Loss – Darshan Pharma Chem

  Mar'11 Mar'10

  12 Months 12 Months

INCOME:

Sales Turnover 6.39 4.96

Excise Duty 0.33 0.38

NET SALES 6.06 4.58

Other Income 0.00 0.00

TOTAL INCOME 6.16 4.66

EXPENDITURE:

Manufacturing Expenses 0.16 0.12

Material Consumed 4.61 3.24

Personal Expenses 0.36 0.31

Selling Expenses 0.17 0.10

Administrative Expenses 0.16 0.20

Expenses Capitalised 0.00 0.00

Provisions Made 0.00 0.00

TOTAL EXPENDITURE 5.46 3.98

Operating Profit 0.60 0.61

EBITDA 0.71 0.68

Depreciation 0.19 0.25

Other Write-offs 0.00 0.00

EBIT 0.52 0.43

Interest 0.04 0.03

EBT 0.48 0.40

Taxes 0.17 -0.0

Profit and Loss for the Year 0.31 0.40

Non Recurring Items 0.08 0.00

Other Non Cash Adjustments -0.1 -0.0

Other Adjustments 0.13 0.04

REPORTED PAT 0.39 0.40

KEY ITEMS

Preference Dividend 0.00 0.00

Equity Dividend 0.00 0.00

Equity Dividend (%) 0.00 0.00

Shares in Issue (Lakhs) 29.90 29.90

EPS - Annualised (Rs) 1.30 1.33