Professional Documents
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REVIEW OF LITERATURE
EXPORT SERVICES
Export finance is a working capital facility provided to the
exporter at concession rates of interest determined by the Reserve
Bank of India. This finance which is strictly purpose oriented and
need based is available both at pre-shipment and post-shipment
stages for the following categories.
Manufacturing exports
Merchant exports
Sub-supplier to the main exports
Exports of various services, including consultancy
Deemed export.
EXPORT
Export is a provision of goods and services across the
national and international boundaries.
TYPES OF EXPORT
Export are divided into main types
Direct export.
Indirect export.
DIRECT EXPORT
Direct exports are transactions where exporters enter into
direct relationships with importers overseas and negotiate a
contract for the sale of goods and services.
INDIRECT EXPORT
POST-SHIPMENT FINANCE
Banks requirements
A sanctioned credit limit.
to
be
as
with
currency during the last three years, there still was unsatisfied
demand.
In view of the limited foreign exchange resources of banks
(FCRN-B,EEFC,RFC) RBI has permitted banks to avail lines of
credit from abroad without any limit exclusively for the purpose of
extending export credit in foreign currency. Most of the banks have
availed of this facility.
It was observed that while few banks were meeting the same
fully out of overseas borrowings. Many banks had a mix of the
different sources of funds viz .deposit funds, borrowings from
abroad and swap funds. Substantial portion of the export credit in
foreign currency was met by borrowing s. from abroad and swap
funds. Substantial portion of the export credit in foreign
currency .most of the banks have availed of this facility. It was
observed that while few banks were extending export credit in
foreign currency entirely out their deposits funds, some banks
were meeting the same fully out of overseas borrowings. Many
banks had a mix of the different sources of funds via deposits
funds, borrowings from abroad and swap funds. Substantial
portion of the export credit in foreign currency was met by
borrowings from abroad .from a prudential point of view it was felt
that there was a need to have a regulatory limit up to which banks
may be allowed to borrow from abroad for this purposes.
It was brought to the notice of the group that some banks
are stated to be levying service charges up to 2% of the amount of
export credit in foreign Currency lent in addition to the interest
rate ceiling prescribed by RBI.
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LETTER OF CREDIT
A letter of credit adds a bank's promise to pay the exporter
to that of the foreign buyer provided that the exporter has
complied with all the terms and conditions of the letter of credit.
The foreign buyer applies for issuance of a letter of credit from the
buyer's bank to the exporter's bank and therefore is called the
applicant; the exporter is called the beneficiary.
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OBJECTIVES
To find the different export financing facilities available,
preference and problems faced by the exporter.
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SCOPE
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RESEARCH METHODOLOGY
RESEARCH DESIGN
PRIMARY DATA
SECONDARY DATA
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LIMITATIONS
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COMPANY PROFILE
Vision
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Mission
To be a proactive organization that sets global standards
through timely delivery of defect-free garments, continuous
modernization and innovation
We recognize quality, Professionalism and the pursuit of
Excellence as the trinity that would spearhead Design Classics in
the industry
Strength
Motto
Professionalism
Attitude
Quality
Quick Facts
Production Capacity
Employees
Around 1000
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Factories
- Over 450 Machines
Mens Wear
Womens Wear
Childrens Wear
T Shirts
T Shirts
Fashion Garment
Polo Shirts
Casual Blouses
T Shirts
Jackets
Jackets
Shorts
Trousers
Jackets
Pants
Departments
Accounts
Exports / Imports
HRD
Merchandising
Cutting
Printing
Embroidery
Sewing
Finishing
Stores
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Production planning
Garment testing
Cutting
-block cutting
-shaping the half folded cut parts
-production line
-final checking at final operation with an aim to achieve
100% defect free garments and 0% re-work
Finishing
-cleaning the garments with air
-thorough checking of important measurement
-thorough checking to make the garments defect free and to
fulfill all quality parameters
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PRIMARY DATA
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SECONDARY DATA
TABLE No 1
PARTICULARS
PERCENTAGE
Leather goods
37.14
Pharmaceuticals
11.43
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Agricultural
25.72
Engineering
11.43
Textiles
8.57
Others
5.71
INFERENCE
Above table shows that first priority goes to leather goods
by 37.14% and next goes to agricultural by 25.72%, next goes to
pharmaceuticals and engineering by 11.43%,11.43% respectively
and next goes to textiles by 8.57% and other goods by 5.71%.
FIGURE NO 1
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TABLE NO 2
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PARTICULARS
PERCENTAGE
Pre-shipment
74.29
Post-shipment
25.71
INFERENCE
From the above table 74.29% is showing more preference
to pre-shipment finance and 25.71% is showing low preference to
post-shipment finance. It clearly shows that mostly the exporter
obtaining pre-shipment finance. In some cases exporter prefers
post-shipment finance because of huge export orders.
FIGURE NO 2
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EXPORTER PREFERENCES
TABLE NO 3
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PARTICULARS
PERCENTAGE
In Rupees
30.77
In Foreign currency
69.23
INFERENCE
From the above table it is very clear that the pre-shipment
finance in foreign currency is 69.23% and in rupees only 30.77%.
So it clearly shows that mostly the exporter prefers pre-shipment
in foreign currency.
FIGURE NO 3
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PRODUCT PREFERENCES
80
60
PERCENTAGE
40
20
0
PERCENTAGE
IN RUPEES
IN FOREIGN
30.77
69.23
PRODUCT
TABLE NO 4
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PRODUCT
FINANCE
PREFERENCE
IN
POST-SHIPMENT
PARTICULARS
PERCENTAGE
In Rupees
11.11
In Foreign currency
88.89
PREFERENCE
IN
POST-
INFERENCE
From the above table, it clearly shows that the exporter
availed mostly post shipment finance in foreign currency of
88.89% and 11.11% in Indian rupees only.
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FIGURE NO 4
PRODUCT PREFERENCE
100
80
PERCENTAGE
60
40
20
0
PERCENTAGE
IN RUPEES
11.11
IN FOREIGN
88.89
PRODUCT
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TABLE NO 5
PARTICULARS
PERCENTAGE
62.85
22.86
14.29
TABLE NO 6
MODE OF PAYMENT
PARTICULARS
PERCENTAGE
Payments in advance
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Open account
8.57
Letter of credit
57.14
Documentary
collection(draft)
14.29
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From the above table 57.14% shows that mostly the letter
of credit is used for the financing mechanism. And it is clearly
shows the exporter used letter of credit as a payments mode for
his exports.
FIGURE NO 5
MODE OF PAYMENT
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TABLE NO 7
PREFERENCE
TRANSCACTION
OF
EXPORTER
ON
L/C
PARTICULARS
PERCENTAGE
Convenient handling
34.29
Assurance of payment
45.71
Protection of goods
2.86
Avoid risk
17.14
FIGURE NO 6
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TABLE NO 8
PARTICULARS
PERCENTAGE
Yes
34.29
No
65.71
TABLE SHOWING
METHOD
SATISFACTORY
LEVEL
ON
PAYMENT
FIGURE NO 7
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TABLE NO 9
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PARTICULARS
PERCENTAGE
30.43
8.69
4.35
8.69
47.84
TABLE NO 10
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PARTICULARS
PERCENTAGE
Yes
25.71
No
62.86
Available through
external Agencies
11.43
FIGURE NO 8
62.86
60
50
TAG
CEN
40
25.71
PERCENTAGE
PER
30
20
11.43
10
0
Yes
No
Through
External
Agencies
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TABLE NO - 11
LEVEL OF AGREEMENT
STATEMENTS
TO
THE
FOLLOWING
LEVEL OF AGREEMENT
PERCENTAGE
1.971
2.57
2.42
2.34
1.88
TABLE SHOWING
FOLLOWING
LEVEL
OF
STATEMENTS
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AGREEMENT
TO
THE
From the above table shows that the exporter have strong
knowledge in export finance.
FIGURE NO 9
LEVEL OF AGREEMENT
LEVEL OF AGREEMENT
Strong knowledge
in export finance
Updated about the
change in the market
1.88
1.971
2.34
2.57
2.42
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Recourse against
advice on the legal
default
The bank followed
smooth process
Time delay in
Internal approval
FINDINGS
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SUGGESTIONS
CONCLUSION
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BIBLIOGRAPHY
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www.google.com
www.nikepedia.com
QUESTIONNAIRE
Name
Age
Marital status
Occupation
Sex
Phone no
a) Direct export
b) Indirect export
c) Merchandise export
d) Deemed export
b) Post-shipment finance
b) Foreign currency
b) No
b) No
6. If the exporter has the weak credit position, will bank provide
the credit facilities to the exporters?
a) Yes
b) No
c) Depends on case
b) No
b) 5-10 yrs
c) 10-20 yrs
d) Above 20 yrs
10. What do you think when the payment delays from bank?
a) Shortage of hard currency
b) Delay of approval process
c) Too late in present the document
d) Bank insolvent
b) No
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