final project sal pdf
TRANSCRIPT
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:-
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