1 CERTIFICATE This is to certify that the project work done on EXPORT PROCEDURE ANDDOCUMENTATION, A STUDY W.R.

T NITIN SPINNERS LIMITED Submittedto Faculty of Management Studies, Udaipur by A nil Khatik in partial fulfillment of therequirement for the award of PG Degree in Master of Business Management, is a bonafide work carried out by him/her under my supervision and guidance. This work hasnot been submitted anywhere else for any other degree/diploma. The original work wascarried during 15/07/2010 to 31/08/2010 in NITIN SPINNERS LIMITED

STUDENTS DECLARATION I hereby declare that the Project Report conducted at EXPORT PROCEDUREAND DOCUMENTATION, A STUDY W.R.T NITIN SPINNERS LIMITED Under the guidance of Prof. ANIL KOTHARI Submitted in partial fulfillment of therequirements for the PG Degree in Master of Business Management in Faculty of Management Studies, Udaipur is my original work and the same has not been submittedfor the award of any other Degree/diploma/fellowship or other similar titles or prizes

ACKNOWLEDGEMENT I would like to thank Faculty of Management Studies to give opportunity to work on this project. My sincere thanks to Mr. K. L. Pareek , General Manager(HR) of NITINSPINNERS LIMITED for permitting me to do the project.Thanks to all in marketing department at Nitin Spinners Limited who have helpedme complete this useful project report. My sincere thanks to Mr. Manish Biyani (Marketing Manager) for his valuable support and guidance. It was overwhelmingexperience for me to have kind support right from the beginning to the end of my trainingand I also would like to thanks Mr. Lokesh Thakur (Logistics) and Mr. G.S. Rathore (Asst. Manager, PPC) for their valuable support.I sincerely express my gratitude to Prof. Karunesh Saxena, Prof. Anil Kothari and Dr. Hanuman Prasad with all other faculty members for their effective guidance for the successful completion of this project report.

Executive Summary The project was done at Nitin Spinners ltd. It is a government of India recognizedexport house which deals with the cotton yarn and cotton fabric. Nitin Spinners Ltd isknown for its quality and good values.Textile is emerging as a hip look on the streets and in the office to home coveringmen or women, young or old from top to bottom. Thanks to a blend of nature and moderntechnology, the new look of textiles are soft and supple. Textile has become a veryspecialized high fashion that requires talented specialists to turn into a quality product.They design and develop textile products such as furnished carpet, curtains at widevariety of price.Although the study covers whole organization including their departments such asMerchandising department, Production department, Shipping department, Packingdepartment etc, but I mainly concentrated at the Marketing department, which isresponsible to serve as a base for the company.Whole management of export documents has been done which includes preparingdocuments for different modes of exports, to analyze the documents, prepare and sendthem to their destination. The documents include Letter of credit, Different kinds of invoices, Certificate of origin, Bill of lading, Bank receipt certificate, packing list, Bill of entry etc

Introduction of Textile Industry The Indian Textile Industry is one of the largest in the world with a massiveraw material and textile manufacturing base. Our economy is largely dependent on thetextile manufacturing and trade in addition to other major industries. About 27% of theforeign exchange earnings are on account of export of textiles and clothing alone. Thetextiles and clothing sector contributes about 14% to the industrial production and 3% tothe gross domestic product [GDP] of the country.Around 8% of the total excise revenue collection is contributed by the textileindustry. So much so, the textile industry accounts for as large as 21% of the totalemployment generated in the economy. Around 35million people are directly employedin the textile manufacturing activities. Indirect employment including the manpower engaged in agricultural based raw-material production like cotton and related trade andhandling could be stated to be around another 60million.Indian textile industry is constituted of the following segments: ReadymadeGarments, Cotton Textiles including Handlooms, Man-made Textiles, Silk Textiles,Woollens Textiles, Handicrafts, Coir, and Jute. The Apparel Export Promotion Council[AEPC] represents over 8000 small, medium, and large exporters. The country rankssixth among the top garment exporting countries globally. Nearly 78% of garments areexported from India are cotton-based. The main products are ladies garments, blouses,skirts, T-Shirts and trousers. INDIAN EXPORT AND IMPORT SCENARIO (2009) Indian textile trade has undergone massive restructuring following the 1991liberalization policies. Indian textile exports fell from $200.9 billion in 2008 to $165 billion in 2009. India was ranked 22nd in the world in terms of textile export volume.

During this period, the growth rate was recorded as 18.11% and the bigger surprise wasthat the import sector had experienced a growth rate of 34.30%. India was ranked 15th inthe world in terms of import volume. V ISION OF INDIA 2010 FOR TEXTILES Textile economy to grow to $85billion by 2010 Creation of 12 million new jobs in textile sector. To increase Indias share in world trade to six per cent by 2010. Achieve export value of $40 billion by 2010. Modernization and consolidation for creating a globally competitive industry.

Introduction to the company y Nitin spinners ltd. is engaged in manufacturing of combed and curded cotton yarnfrom Ne4 to Ne40 in single and multifold and knitted fabrics. y Nitin spinners plant & machineries imported from textile machinery manufacturerslike Rieter (Switzerland), Savio (Italy), Mayer 7 Cie (Germany), Schlofhorst(Germany), Truetzschler (Germany), and Elitex (Czechoslovakia). y Nitin spinner also installed plant & machinery purchased from laxmi machine works,Kirloskar Toyoda textile machine & Zinser textile system. y Presently they have capacity of 27,216 spindles and 1872 rotors for cotton yarn withmanufacturing capacity of 10000 TPA and Kitting machines for Knitted fabrics with amanufacturing capacity of 2000 TPA. y They have captive power plant of 8.5 MW based on Furnace Oil along with stand byarrangements for electricity. y Cost per unit is lower by 35% to 40% against per unit cost charged by state ElectricityBoard. y Nitin spinner exporting Cotton yarn and Knitted fabrics to countries like Australia,Bahrain, China, Colombia, Egypt, Israel, Italy, Korea, Mauritius, Russia, Poland,U.K., U.S.A. y Right now Nitin spinners are restricted to 18 20 countries. y They are decided to expend their manufacturing capacity by adding 50400 spindlesfor cotton yarn production and 12 knitting machines for Knitted fabric production. y They are going to set up a power plant of 8.18MW near existing unit located atHamirgarh, Bhilwara. y Nitin spinner is the only company who is producing 100% cotton yarn and fabric inBhilwara.

History & Expansion of Nitin Spinners Ltd. Nitin spinners was incorporated as a private ltd. company on 15-10-1992 under the companies act 1956 in the state of Rajasthan having the name NITIN SPINNERS PRIVATELIMITED y It was converted into a public limited company on 15-11-1994 as NITIN SPINNERS LIMITED . The individual promoters of the company Mr. R.L. Nolkha, Mr. Dinesh Nolkha and Mr. Nitin Nolkha . y First unit of Nitin spinners was set up in the year 1993 at Hamirgarh Bhilwara for manufacturing coarse cotton yarns with two open end spinning machines with 192Rotors each aggregating 384 rotors which were acquired from Elitex, Czechoslovakia,under EPCG scheme. y The first expansion of nitin spinners ltd. was took place in 1994 when they install oneAutoconer Machine of 216 Rotors from Schlafhorst AG & Co., Germany andincreased the number of Rotors to 600. The total capital outlay of this project was Rs.400 lacs. y The second expansion was took place in 1996-97. The expansion project involvedacquisition of two autoconer open-end spinning machines of 240 rotors each fromSchalafhorst ag & Co., Germany, increasing our capacity to 1080 Rotors. The totalcapital outlay towards this project was Rs. 1,100 lacs. y The third expansion was took place in the year 1998-99 it involved two open endspinning machines of 384 Rotors from Elites, Czechoslovakia,. The total capital outlayof this project was Rs. 190 lacs. y The fourth expansion project in the year 1999 it involved installation of 14.112spindles to produce combed and carded cotton yarns of 20s to 40s count. At thisexpansion phase they also went for forward integration programme by installing 7knitting machines. The total outlay of this project was Rs. 5,018 lacs.

y The fifth expansion in the year 2003it involved the addition of 13,104 spindles and 6knitting machines. Capital outlay of this project is Rs. 3,550 lacs. y Sixth expansion project in February 2005 it involved addition of 408 Rotors and 2knitting machines. The capital outlay of this project was Rs.250 lacs. Product line of Nitin Spinners Ltd. A. Yarns Recognized worldwide as the industry leaders for spun yarns, it has perfected itsspinning processes by applying state of the art automated technology and innovation inevery phase of our yarn manufacturing process.The range of Yarn that we manufacture includes:Open End yarns from Ne 5/1 to Ne 30/1 ( Nm 8/1 to Nm 50/1 )Multifold Open End YarnsRing Spun Combed Yarns from Ne 20/1 to Ne 50/1 ( Nm 34/1 to Nm 85/1)Multifold Ring Spun Yarns'S' & 'Z' Twist YarnsDyeable cheese cones - Soft package100% Organic Cotton Yarns and Blends B. Fabric In quest for value addition and to augment the spinning process they manufacturehigh quality knitted fabrics. The quality yarns produced in their unit are used tomanufacture top quality grey fabrics to be consumed by the global apparel industry. Allthe fabrics are made on the latest Mayer & Cie knitting machines. They aremanufacturing knitted fabrics as well as fabrics with Elastane upto 10%. They offer fabrics in greige form in tubular and open width. The range includes:Single Jersey

Pique structuresInterlock structuresRib structuresThree Thread FleeceOur fabrics are available in different diameter and gauges. Board of Directors 1. Mr. R L Nolkha (Chairman & Managing Director) 2. Mr. Dinesh Nolkha (Managing Director) 3. Mr. Nitin Nolkha (Executive Director) 4. Mr. P Maheshwari (Chief Financial Officer) 5. Mr. Y R Shah (Director) 6. Mr. Bhagwan Ram (Director) 7. Dr. S S Banerjee (Nominee Director) 8. Mr. Sudhir Garg (Company Secretary& DGM Legal)

Management Potential Mission Developing long term relationship with suppliers with an aim to be the most reliablesupplier in Textile Value Chain from Fibre to Garment.Providing superior quality products at competitive prices and establishing a brandvalue in the international arena.Exceeding industry standards with exceptional customer and technical service.Maintaining our competitive strategic position through leading edge technology.Providing a safe, fulfilling and rewarding work environment for employees Promote partnerships with government agencies and institutions of international recognition.Providing training to our employees for their future development. V ision Remain at the forefront in high quality textile products manufacturing.Create value for shareholders and allied industries.Increase foreign exchange earnings by being a preferred international supplier.Stay effective & proactive in developing new markets and productsCompleting our vertical integration chain by entering into high quality apparelmanufacturing.Endeavour for the ultimate satisfaction of our allied partners with: The Right Technology The Right Raw Material The Right People And above all The Right ATTITUDE

Introduction to the Project 1.1 Need for the Study Export in simple words means selling goods abroad or it refers to theoutflow of goods and services and inflow of foreign exchange.Each country has its own rules and regulations regarding the foreign trade. For the fulfillment of all the rules and regulations of different countries an exportingcompany has to maintain and fulfill different documentation requirements. Thedocumentation procedure depends on the type of goods, process of manufacturing,type of industry and the country to which goods is to be exported.In order to complete an order, many activities like communication betweendifferent departments, the process of outsourcing raw material, payment process,quality, control, packing and shipment of goods etc. are undertaken. Differentdepartments work in synchronicity & various documents are prepared in the process.Hence, a single mistake or lack of proper planning can lead to the rejection of thewhole order or increase the cost.Todays world is the global village in which each country is trading with other countries in the form of export or import. This field has a great scope because todayeach companywhether it is small or big wants to engage in foreign trade.Hence, it is very important to study the export procedure and documentsinvolved in it. Hence, selecting this project is a judicious decision.

1.2 Objectives of the Study a) To understand the yarn and knitted fabric Business Processes. b) To understand the working of various departments of Nitin Spinners Ltd.contributing towards processing of an export order.c) To study the Export Documentation in Nitin Spinners Ltdi. Pre Shipment proceduresii. Post Shipment procedure 1.3 Scope of the Study The aim of this project report is to unfold stepwise all complexitiesinvolved in the export business right from receiving an export order to finalrealization of export proceeds. It gives a detail idea of how different departmentsin Apparel export firm are synchronization so that an export order is processed.This project would be helpful to fulfill many loopholes of manufacturing, processing and analyzing the export order as well as documentation.It will also look into the steps taken to manage risks in the point of the firm. 1.4 Limitations of the Study It takes into account only the practical implications of documentation Only cotton yarn and fabric exports have been analyzed. Disclosure of certain sensitive information, e.g. the commissions for the Post-Shipment formalities Formalities at both the stages of shipment are subject to change by the home or foreign Countrys norms.

2. Review of Literature Review of literature shows the previous studies carried out by the researcher inthis field in order to gain insight into extent of research. The research problem can bemore understood and made specific referring to theories, reports, records and other information made in similar studies. This will provide the researcher with the knowledgeon what lines the study should proceed and serves to narrowthe problem. Thomas A. Cook (1994) 1 says, One of the major pitfalls in an international sale is thequality of the documentation supporting the transaction. A mistake in spelling, execution,language or number of copies will cause substantial delays in obtaining clearance andrequire additional expenditures to complete the process.Many potential exporters shy away from exporting due to the fear of the potentialheadaches caused by export documentation. In reality, while the process is complicatedand has a steep learning curve, with the right approach and support from severalresources the process can be simplified and the inherent obstacles lifted.Most of the necessary documents required for an export transaction are theinvoice, packing list, export declaration and the bill of lading. Other documents that may be required include: payment instruments (letters of credit, sight drafts), health/sanitarycertificates, certificates of origin, export/import licenses, SGS inspection certificates,carnets (customs passes), certificates of insurance and required import documents.In addition to knowing the specific documents, the exporter will need to knowlanguage, the number of copies, required signatories, format, notarization,consularization, and the shipping instructions.

Laurel Delaney (2006) 2 , describes AES Direct, a free online process for filing Shipper'sExport Declarations. AES stands for Automated Export System. Here are somehighlights: 1. Ensures export compliance - It returns a confirmation number to verify that yousuccessfully filed your export documentation. 2 . Corrects errors - Get immediate feedback when data is omitted or incorrect, andcorrect errorsat any time. 3 . Eliminates paper review - Eliminates time delays of handling paper. 4 . Stays up-to-date with trade agreements - AES conforms to NAFTAand GATT,making it easier to do business in multiple countries. 5 . Evaluates and measures potential markets - Provides accurate and timelyexport statistics.Koch and John (2007) 3 say the subsequent need is to reduce the risk of loss to the small business exporter if and when their foreign customer does not pay the exporter's salesinvoice. Again, there are solutions to mitigate these risks of loss, which result from twosets of risk of loss event perils:1. Foreign "Commercial" Risk of Loss EventsThis event occurs in the foreign client's inability or failure to pay invoices dueto bankruptcy/Insolvency, Slow-Pay Behavior (Protracted Default) , Devaluationof Foreign Currency2. Foreign 'Political' Risk of Loss EventsThis event occurs when a foreign country's regulations and statutes allowConfiscation of Goods, Suspension of Import Licenses, War, Civil Strife,Rebellion, and Currency Inconvertibility.

Sales made under irrevocable letters of credit (LCs) are a traditional tool usedto mitigate risk of loss. An LC places the U.S. exporter's bank and their foreigncustomer's bank inside the trade transaction, reducing the risk of loss to both parties for failure of either one to live up to the export sales/purchase contract. Theexporter's commercial bank will assist with the LCs if the bank providesinternational banking services, or if the bank uses another correspondent bank thatmaintains an international banking department. There are some drawbacks to LCs. Not all foreign buyers can pay under an LC because of the high fees, often 2-3%of shipment value. An LC requires a credit relationship between the foreignimporter and its bank, which might divert precious working capital from theforeign buyer's other local credit needs. Corinne Campbell 4 (2009) : says, The True Cost of Exporting is the cost of exportdocumentation, a necessary expense that can be eased by knowing whats required. Hereare some ways to tighten upon export documentation.Organizing the right documentation and paperwork makes the export processsimpler, smoother and cheaper. When it comes to a paper trail in export, it doesnt matter if you are shipping large volumes or just sending a few samples: the goods have to getthere and the exporter has to get paid. Not having the right paperwork can result in animporter not being able to accept the goods and the exporter not being paid, which iscostly in terms of time and money.Export documentation covers the spectrum of: shipping documents, commercialdocuments, inspections, permits and consular stamps. Each requires preparation time,courier costs and fees with its associated risks of mistakes adding to delays andconsiderable costs.

Documentation must be precise because slight discrepancies or omissions may prevent merchandise from being exported, result in nonpayment, or even result in theseizure of the exporters goods by customs. Most documentation is routine for freightforwarders and customs brokers, but the exporter is ultimately responsible for theaccuracy of its documents. The number and kind of documents the exporter must dealwith varies depending on the destination of the shipment. Because each country hasdifferent import regulations, the exporter must be careful to provide all proper documentation. It is important to do your research with customs, your industryassociation, government departments, freight forwarders and the overseas buyer to befully aware of the procedures per product and per country of export.It would be a waste of time and money to go through researchingthe specificneeds of your export and not having the internal knowledge to implement a process.Training yourself and your staff in the intricacies of export including documentation,logistics, finance as well as cultural issues can make the difference between beingsuccessful for years to come or failing after the first shipment.International trade carries high levels of risk. Knowing how to avoid the pitfalls isthe key to success.Posner and Martin 5 (2000 ) in his study found that it is surprising that many traders do notuse Incoterms to help them draft their export documentation. The International Chamber of Commerce's (which has an international membership from over 130 countries) Guideto Inco terms 2000 is a superb helpline to the companion Inco terms 2000, which cameinto force on 1 January 2000. A definition of EXW EX Works says there is not only acolor chart showing the seller's primary duty but it also describes the documents required,the optional documents that may be required and the buyer's primary duty.

2.1 Foreign Trade Policy 2009-2014 Special Focus Initiatives Government of India shall make concerted efforts to promote exports in all sectors byspecific sectoral strategies that shall be notified from time to time Rs. 325 croreswould be provided under promotional schemes for textile for exports made with effectfrom 1st April 2009. EPCG Scheme at zero duty has been introduced for certain engineering products,electronic products, basic chemicals and pharmaceuticals, apparel and textiles, plastics, handicrafts, chemicals and allied products and leather and leather products. Technical textiles havenow been added under Focus Product Scheme. Under DEPB Scheme , a. Duty credit scrip under Chapter 3 i.e. Promotional measures and under DEPBscheme will now is issued without waiting for realization of export proceeds. Theexporters will be required to submit proof of export proceeds realization with thetime limits prescribed by RBI. This provision is now applicable. b. DEPB scripts were earlier used for payment of duty only on imported items thatwere under free category but now this utilization is now extended for payment of duty for import of restricted items as well. Under EPCG Scheme , a. In case of decline in exports of a product(s) by more than 5%, the exportobligation for all exporters of that product(s) is to be reduced proportionately andthis provision is extended for the next year.

b. Reduction in customs duty under EPCG scheme from 5% to 3%. Additional funds of Rs. 1200 crores have been allotted for CST/TED/Drawback refunds. Allowing payment of interest on delayed payments of Terminal excise duty andcentral sales tax. additional fund of Rs. 1400 crores is provided to clear the backlog claims of TUF. 2.2 Government of India, Rates of Duty Drawback, 2010-2011 9 1. The drawback rates have been determined on the basis of certain broad parametersincluding, interalia, the prevailing prices of inputs, standard input/output norms(SION), share of imports in the total consumption of inputs and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculation. The incidence of service tax paid on taxable services which are used asinput services in the manufacturing or processing of export goods has also beenfactored. The Commissioners may ensure that the exporters do not avail of the refundof this tax through any other mechanism while claiming the all industry rate of drawback.2. The Drawback Schedule includes several new items. These include coffee (raw beans), in bulk, coffee (roasted and /or decaffeinated), in bulk, tea, in bulk, tea inconsumer packs including tea bags(sachets), instant coffee, parts/components of harness and saddler made of leather or non leather including textiles or syntheticmaterials, stainless steel, jeweler, brass bushes and optical fibre cables. The Schedulemayplease be perused for details.

3. The drawback rates have undergone changes in line with the changes in prices of inputs, duties etc. Thus the Drawback rates have been decreased in most cases. Themore important changes in textile sector are discussed below: Cotton Yarn and Fabrics :The earlier drawback rate for grey cotton yarn of less than 60 counts was 6%(grey) / 7.1% (dyed). The rate for cotton yarn of 60 counts and more was 9.5% (grey)/ 10.6% (dyed).The new rate now is 4% for cotton yarn (grey) and 5% for cotton yarn (dyed)irrespective of the counts of the yarn. As for cotton fabrics, the new rate is 4.6%(grey) / 5.5% (dyed) with a drawback cap of Rs.14per kg (grey) / Rs.20per kg (dyed).The new drawback rate for lungies and Real Madras Handkerchiefs is 5.5% with acap of Rs.20/kg, the same as applicable for dyed fabrics.In the case of denim fabrics the new rate is 5.7% with a cap of Rs.21.5/kg asagainst the earlier rate of 8.5% with a cap of Rs.32/kg. 3. Research Methodology 3.1 RESEARCH DESIGN Our primary objective of doing this project is to get the first hand knowledge of functioning of an export unit. Since we are not comparing two different entities on the basis of their financial results, rather we are learning the export procedure. Hence exploratory research design is the need of the hour.Further there are few reasons which made me to use Exploratory Qualitative research:

 It is not always desirable or possible to use fully structured or formal methods toobtain information from respondents. People may be unable & unwilling to answer certain questions or unable to givetruthful answers. People may be unable to provide accurate answer to question that tap their subconsciousness. 3.2 RESEARCH TOOLS USED In Primary data, Qualitative research through In-Depth Interviews has beenadopted . For interviews nonstructured open-ended questions were used . In Secondary data, both internal & external research was done. For internalresearch Ready to use documents available with the organization were used. For external research Internet website & published books were consulted. Using the sales turnover of past five years, simple percentage are calculated for basic styles and for the companys buyers. Using the statistical technique of least square method future trend for thisconcern has been forecasted. 4. Analysis and Interpretation 4.1 To understand the Textile Business Process involved in Nitin Spinners Ltd. The textile supply chain accounts for a good share in terms of number of companies and people employed. The textile spinning industry here is divided into threemain segments. At the top of the supply chain, there are fiber (raw material) producersusing either natural or synthetic materials, i.e. suppliers of the raw material. The secondsegment of the supply chain is the yarn and fabric manufacturer which converts fibre or

yarn into in to yarn/fabric with many processes involved. The third segment is the buyerswho are responsible for making apparels available to consumers.It has been explained using the T angle yarn/fabric supply chain. This showshow buyer, suppliers and yarn manufacturer are linked to each other. The T angleillustrates how information flows from the buyer to the yarn manufacturer. Theinformation normally, specification of the yarn/fabric given by the buyer, are studied bythe manufacturer and accordingly list of raw materials required is made. Once approved by buyer, the orders are placed with the suppliers with approved samples. When the rawmaterials are received as per the specifications given to the supplier, in-housemanufacturing starts with the production. The different process of manufacturing resultsin the final yarn/fabric product which is finally dispatched to the Buyer.

4.3 The buyer side of the Supply chain The buyer side generally involved in fabric manufacturing or garmentmanufacturing. They give yarn/fabric specification to the manufacturer and their finished product to the retailers or further garmenting production house.1. Yarn/fabric Specification:In order to get the desire final product the buyer decide which specificationhave to given to the manufacturer. These specifications are dependent upon thefabric to made or garment to be made by the buyer.The specifications are ultimately influenced by the end user demand for which the product is being intended to make.2. Samples & Order The other activity which the buyer side does is that to prepare sample andto order the quantity desired after proper inspecting the manufacturer samples andnegotiating properly, the order is made.Samples to be sent to the manufacturers must be prepares with extreme careotherwise may cause arrival of faulty lot, which would surely be bearing only loss. 4.4 The supplier side of the Supply Chain The supplier of the Nitin Spinners Ltd. Are the cotton producers or who aremerchandiser of the cotton. There are some local suppliers as well as overseassuppliers also.Main concerns about the supplier side are:1. Cotton production

The main activity of the supplier is cotton production. These are generallyGinning Industry who extracts the cotton fibre from the cotton balls. Other supplier may be the trader of cotton.Indian cotton staple length is generally 2.5-4.0 cm for better quality cottonyarn, Nitin Spinners purchase cotton overseas, i.e. Switzerland, Iceland, Pakistan,Bangladesh etc.2. Bale PackingThe cotton is packed into very tight compressed lot that is known as Bale.These lots are formed according to the manufacturer direction or at prescribedstandard. 4.5 The Manufacturer Side if the Supply Chain. The manufacturer is having main activities of order of contract, to give order tothe suppliers, production, finishing and packing.1. Order and purchaseThe manufacture first task after getting an order is to give order to thesupplier the desired quantity of raw material, with proper specification accordingto product demanded by the buyer.The order is negotiated and the contact is made with the supplier supply thespecified raw material.2. ProductionWhen the raw material is obtained, the PPC department sends productionschedule to the production department. According to the PPC schedule the production is completed.After the production the product is sent to the final finishing which aredying and processing.

3. Finishing and PackingAfter the production the finishing humidification is done and the product issent for packaging. Packagings are done differently for domestic and export purpose. 5. Export Procedure at Nitin Spinners Ltd. An exporter without any commercial contract is completely exposed of foreignexchange risks that arises due to the probability of an adverse change in exchange rates.Therefore, it becomes important for the exporter to gain some knowledge about theforeign exchange rates, quoting of exchange rates and various factors determining theexchange rates. In this section, we have discussed various topics related to foreignexchange rates in detail.It is essential that a person engaged in international trade be aware of the various procedures involved. The business of exports is heavily document-oriented & one mustget acquainted with the entire procedure. Failure to comply with documentaryrequirement may lead to financial loss.Export from India required special document depending upon the type of productand destination to be exported. Export Documents not only gives detail about the productand its destination port but are also used for the purpose of taxation and quality controlinspection certification.The procedural aspect of export operations are quite formidable and for that matter even an experienced exporter is overwhelmed by the magnitude of proceduralrequirements at every stage of export execution right from the time an export order isobtained until the realization of export procedures and the benefits thereof.

5.2 Pre-Shipment Procedure y On receiving the requisition & purchase order from merchant (See Annexure 3 and4 ), documentation department issues an invoice. Two invoices are prepared i.e.commercial invoice & custom invoice. Commercial invoice is prepared for the buyer & Custom invoice is prepared for the Custom authorities of both the countries. y Packing list is prepared which details the goods being shipped. y GSP certificate is prepared if the consignment is exported to EU or countriesmentioned in the GSP list. y Buying house inspects the goods & issues an inspection certificate. y Certificate of origin is also issued and attached, if required. y Following documents are given to Customs for their reference: Custom Invoice Packing list IEC certificate Purchase Order or L/C, if required. Custom annexure y On receipt of above documents, customs will issue clearance certificate. y After custom clearance a set of documents with custom clearance receipt is sent alongwith the consignment to the forwarder. Forwarder books the shipment & as per thesize of the cartons calculates CBM & decides which container to be used. y Following documents are sent to buying house for their reference, as per buyersrequirement: Invoice Packing List GSP (if exports to Europe) Certificate of Origin (if required) Wearing Apparel sheet A copy of FCR/ Airway Bill/ Bill of Lading

Buying house then intimates the buyer about the shipment & gives the detailsregarding it. Buying house will send a set of these documents to the buyer. y Buyer collects the consignment from the destination port by showing the followingdocuments: Invoice Packing List Bill of lading/ FCR/ Airway Bill y On shipment of goods, exporter will send the documents to the importers bank. 5.3 Post-Shipment Procedure y A foreign buyer will make the payment in two ways: TT ( telegraphic transfer) i.e. Wire Transfer (Advance payment, as per the clause50% advance & remaining 50% on shipment) Letter of Credit y If the payment terms are a confirmed L/C then the payment will be made by theforeign bank on receiving the following documents: Invoice Packing list B/LAny other required by the buyer or the country of import. y The payment terms can be: At Sight Within 15 days from Bill of Lading or Airway Bill date. Within 30 days from Bill of Lading or Airway Bill date. Within 60 days from Bill of Lading or Airway Bill date. Within 90 days from Bill of Lading or Airway Bill date

After shipment, exporter sends the documents to the buyers bank for payment. As the buyers bank receive the documents it will confirm with the buyer for release of payment. On confirmation, it will make the payment in the foreign currency. Thetransaction will be Bank to Bank. y The domestic branch will credit the exporters account, as against the respective purchase order or invoice, in Indian rupees by converting the foreign currency as per the current bank rate. y If the payment is through wire transfer, the payment will be made as per the termsagreed by the exporter (Advance payment, as per the clause 50% advance &remaining 50% on shipment). 6. Export Documents An export trade transaction distinguishes itself from a domestic trade transactionin more than one way. One of the most significant variations between the two arises onaccount of the much more intensive documentation work. The documents mentioned inthe pre & post shipment procedure are discussed below: 1 . Invoice :It is prepared by an exporter & sent to the importer for necessary acceptance.When the buyer is ready to purchase the goods, he will request for an invoice. Invoiceis of 3 types: a. Commercial invoice :It is a document issued by the seller of goods to the buyer raising his claim for thevalue of goods described therein, it indicates description of goods, quantity, valueagreed per unit & total value to be paid. Normally, the invoice is prepared first, &

several other documents are then prepared by deriving information from theinvoice. (See Annexure 1) b. Consular invoice :It is certification by a consul or Government official covering an internationalshipment of goods. It ensures that exporters trade papers are in order & the goods being shipped do not violate any law or trade restrictions. c . Customs invoice :It is an invoice made on specified format for the Custom officials to determine thevalue etc. as prescribed by the authorities of the importing country. ( SeeAnnexure 2 ) 2 . Packing list: It shows the details of goods contained in each parcel / shipment. Considerablymore detailed and informative than a standard domestic packing list, it itemizes thematerial in each individual package and indicates the type of package, such as a box,crate, drum or carton. Both commercial stationers and freight forwarders carry packing list forms. (See Annexure 3) 3 . Certificate of Inspection: It is a type of document describing the condition of goods and confirming thatthey have been inspected. It is required by some purchasers and countries in order toattest to the specifications of the goods shipped. This is usually performed by a third party and often obtained from independent testing organizations. (See Annexure 7) 4 . Certificate of Origin: Importers in several countries require a certificate of origin without whichclearance to import is refused. The certificate of origin states that the goods exported

are originally manufactured in the country whose name is mentioned in the certificate.Certificate of origin is required when: (See Annexure 4) The goods produced in a particular country are subject to preferential tariff ratesin the foreign market at the time importation. The goods produced in a particular country are banned for import in the foreignmarket. 5 . GSP: It is Generalized System of Preference. It certifies that the goods beingexported have originated/ been manufactured in a particular country. It is mainlyuseful for taking advantage of preferential duty concession, if available. It isapplicable in countries forming European Union. It has total of 12 columns to bedeclared by the exporter. They are:1. Exporters name, address and country2. Importers name, address and country3. Means of transport and route4. For official use(to be filled by the officials)5. Item no.6. Marks and no. packages7. No. and kind of packages and description of goods8. Origin criterion9. Gross weight or quantity10. No. and date of invoice11. For certification of competent authority- in this column the competent authoritywill stamp and sign for the certification of the form.12. Declaration by the exporter in this column the exporter declares the abovedetails mentioned are correct and country where the goods produced for export

and name of the importing country and then stamped and signed by the authorizedrepresentative of exporter with place an date.This form A GSP is sent between the countries, which havebilateralagreements. This certified original form will be used by importing country to importthe consignment with deduction in import duty. 6 . IEC Certificate: It is an Import-Export Code Certificate issued by DGFT, Ministry of Commerce, and Government of India. It is a 10 digit code number. No exports or imports will be affected without the IEC code. It is mandatory for every exporter. 7 . Quality Test Report: It is like a test report from SQC which gives the detail regarding the quality of the product packed. (See Annexure 6) 8 . Bill of Lading: The bill of lading is a document issued by the shipping company or its agentacknowledging the receipt of goods on board the vessel, and undertaking to deliver the goods in the like order and condition as received, to the consignee or his order, provided the freight and other charges as specified in the bill have been duly paid. It isalso a document of title to the goods and as such, is freely transferable byendorsement and delivery. (See Annexure 5) A bill of lading normallycontains the following details: The name of the company The name and address of the shipper / exporter The name and address of the importer / agent The name of the ship

Voyage number and date The name of the ports of shipment and discharge Q uality, quantity, marks and other description The number of packages Whether freight paid or payable The number of originals issued The date of loading of goods on the ship The signature of the issuing authority. 9 . Airway Bill: An airway bill, also called an air consignment note, is a receipt issued by anairline for the carriage of goods. As each shipping company has its own bill of lading,so each airline has its own airway bill. Airway Bill or Air Consignment Note is nottreated as a document of title and is not issued in negotiable form. 10. Mate's Receipt :Mate's receipt is a receipt issued by the Commanding Officer of the ship whenthe cargo is loaded on the ship. The mate's receipt is a prima facie evidence that goodsare loaded in the vessel. The mate's receipt is first handed over to the Port TrustAuthorities. After making payment of all port dues, the exporter or his agent collectsthe mate's receipt from the Port Trust Authorities. The mate's receipt is freelytransferable. It must be handed over to the shipping company in order to get the bill of lading. Bill of lading is prepared on the basis of the mate's receipt. It containsinformation relating to : Description of packages. Condition of goods / packages loaded on the vessel. Name of the vessel Date of loading Port of delivery

Name of the address of the shipper exporter Name and address of the importer/consignee. Other required details. Importance of Mates receipt:The main importance of mates receipt is that is serves as an acknowledgement of the goods loaded on the ship. After loading, the goods remain in the custody of thecaptain / mate of the ship.1. It enables the agent of the exporter to pay port trust dues. After making payment of port dues, the agent collects the mates receipt and submits it to the customs preventive officer.2. It enables the shipping agent of the exporter to present the mates receipt to thecustoms preventive officer to record the certificate of shipment of all copies of shipping bill and other documents.3. The export agent can obtain bill of lading on the basis of mates receipt from theshipping company. 11. Shipping Bill : Shipping bill is the main customs document, required by the customs authoritiesfor granting permission for the shipment of goods. The cargo is moved inside the dock area only after the shipping bill is duly stamped, i.e. certified by the customs. Shipping bill is normally prepared in five copies: Customs copy Drawback copy Export promotion copy Port trust copy Exporter's copy Types of Shipping Bill

1. Manual ShippingBill2. Computer generate EDI shipping bill Manual Shipping Bill: It will be prepared in quadruplicate and two additional copies in the prescribedformat. It contains exporters name and address, Invoice no. and date, shipping bill no., Number and description of packages, Q uantity, weight and value of goods, Name of vessel in which goods are to be shipped, country of destination, total amount of duty, portat which goods to be discharged, and any other details if applicable. It will be filled bythe customs agent and signed by both the exporter and customs agent. This documentused for the customs clearance of the exporting goods. After customs clearance theshipping bill will be numbered with date and duly stamped and signed with Let export permission by the customs official. After this only customs agents will allow the goods toclear through sea or air. Computer Generated EDI It also contains the same details as that of manual shipping bill prepared bycustoms, which is having an on line EDI (Electronic Data Interchange) system. This will be signed by the CHA (Customs House Agent) and customs official with Let export permission.When goods are manufactured in India on which drawback duty is allowed, theshippingbill used is called the drawback shipping bill. 12. Letter of Credit: This method of payment has become the most popular form in recent times; it ismore secured as company to other methods of payment (other than advance payment). Aletter of credit can be defined as an undertaking by importers bank stating that paymentwill be made to the exporter if the required documents are presented to the bank withinthe variety of the L/C

Contents of a Letter Of Credit A letter of credit is an important instrument in realizing the payment againstexports. So, needless to mention that the letter of credit when established by the importer must contain all necessary details which should take care of the interest of Importer aswell as Exporter. Let us see shat a letter of credit should contain in the interest of theexporter. This is only an illustrative list. Name and address of the bank establishing the letter of credit Letter of credit number and date The letter of credit is irrevocable Date of expiry and place of expiry Value of the credit Product details to be shipped Port of loading and discharge Mode of transport Final date of shipment Details of goods to be exported like description of the product, quantity, unit rate,terms of shipment like CIF, FOB etc. Type of packing Documents to be submitted to the bank upon shipment Tolerance level for both quantity and value If L/C is restricted for negotiation Reimbursement clause 7. Terms of Shipments Inco terms The INCOTERMS (International Commercial Terms) is a universally recognizedset of definition of international trade terms, such as FOB, CFR & CIF, developed by theInternational Chamber of Commerce (ICC) in Paris, France. It defines the trade contractresponsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving

tool. The exporter and the importer need not undergo a lengthy negotiation about theconditions of each transaction. Once they have agreed on a commercial terms like FOB,they can sell and buy at FOB without discussing who will be responsible for the freight,cargo insurance and other costs and risks.The purpose of Inco terms is to provide a set of international rules for theinterpretation of the most commonly used trade terms in foreign trade. Thus, theuncertainties of different interpretations of such terms in different countries can beavoided or at least reduced to a considerable degree. The scope of Inco terms is limited tomatters relating to the rights and obligations of the parties to the contract of sale withrespect to the delivery of goods. Inco terms deal with the number of identified obligationsimposed on the parties and the distribution of risk between the parties. 7.1 More Clarification on Inco termsEXW (At the named place)Ex Works: Ex means from. works means factory, mill or warehouse, which are the sellers premises. EXW applies to goods available only at the sellers premises. Buyer isresponsible for loading the goods on truck or container at the sellers premises and for thesubsequent costs and risks. In practice, it is not uncommon that the seller loads the goodson truck or container at the sellers premises without charging loading fee.The term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers.Some manufacturers may use the term Ex Factory, which means the same as Ex Works

FCA (At the named point of departure)Free Carrier: The delivery of goods on truck, rail car or container at the specified point (depot)of departure, which is usually the sellers premises, or a named railroad station or a namedcargo terminal or into the custody of the carrier, at sellers expense. The point (depot) atorigin may or may not be a customs clearance centre. Buyer is responsible for the maincarriage/freight, cargo insurance and other costs and risks.In the air shipment, technically speaking, goods placed in the custody of an air carrier are considered as delivery on board the plane. In practice, many importers andexporters still use the term FOB in the air shipment. FAS (At the named port of origin)Free Alongside Ship: Goods are placed in the dock shed or at the side of the ship, on the dock or lighter,within reach of its loading equipment so that they can be loaded aboard the ship, atsellers expense. Buyer is responsible for the loading fee, main carriage/freight, cargoinsurance, and other costs and risks In the export quotation, indicate the port of origin(loading)after the acronym FAS, for example FAS New York and FAS Bremen.The FAS term is popular in the break-bulk shipments and with the importing countriesusing their own vessels. FOB (At the named port of origin)Free on Board: The delivery of goods on the board the vessel at the named port of origin(Loading) at sellers expense. Buyer is responsible for the main carriage/freight, cargoinsurance and other costs and risks. In the export quotation, indicate the port of origin(loading) after the acronym FOB, for exampleFOB Vancouver and FOB Shanghai

Under the rules of the INCOTERMS 1990, the term FOB is used for ocean freightonly. However, in practice, many importers and exporters still use the term FOB in the air freight. In North America, the term FOB has other applications. Many buyers and sellersin Canada and the USAdealingon the open account and consignment basis areaccustomed to using the shippingterms FOB Origin and FOB destination.FOB Origin means the buyer is responsible for the freight and other costs andrisks. FOB Destination means the seller is responsible for the freight and other costs andrisks until the goods are delivered to the buyers premises which may include the importcustom clearance and payment of import customs duties and taxes at the buyers country,depending on the agreement between the buyer and seller. In international trade, avoidusing the shipping terms FOB Origin and FOB Destination, which are not part of theINCOTERMS (International Commercial Terms). CFR (At the named port of destination)Cost and Freight: The delivery of goods to the named port of destination (discharge) at the sellersexpenses. Buyer is responsible for the cargo insurance and other costs and risks. The termCFR was formerly written as C&F. Many importers and exporters worldwide still use theterm C&F. CIF (At named port of destination)Cost, Insurance and Freight: The cargo insurance and delivery of goods to the named port of destination(discharge) at the sellers expense. Buyer is responsible for the import customs clearanceand other costs and risks.

In the export quotation, indicate the port of destination (discharge) after theacronym CIF, for example CIF Pusan and CIF Singapore. Under the rules of theINCOTERMS 1990, the term CIFI is used for ocean freight only. However, in practice,many importers and exporters still use the term CIF in the air freight. CPT (At the named place of destination)Carriage Paid To: The delivery of goods to the named port of destination (discharge) at the sellersexpenses. Buyer assumes the cargo insurance, import custom clearance, payment of custom duties and taxes, and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym CPT, for example CPT Los Angeles andCPT Osaka. CIP (At the named place of destination)Carriage and Insurance Paid To: The delivery of goods and the cargo insurance to the named place of destination(discharge) at sellers expense. Buyer assumes the importer customs clearance, paymentof customs duties and taxes, and other costs and risks. DAF (At the names point at frontier)Delivered at Frontier: The delivery of goods at the specified point at the frontier on sellers expense.Buyer is responsible for the import custom clearance, payment of custom duties andtaxes, and other costs and risks. DES (At named port of destination)Delivered Ex Ship: The delivery of goods on board the vessel at the named port of destination (discharge) atsellers expense. Buyer assumes the unloading free, import customs clearance, payment 47 of customs duties and taxes, cargo insurance, and other costs and risks. DEQ (At the named port of destinationDelivered Ex Quay: The delivery of goods to the Q uay (the port) at the destination on the buyersexpense. Seller is responsible for the importer customs clearance, payment of customsduties and taxes, at the buyers end. Buyer assumes the cargo insurance and other costsand risks. DDU (At the named point of destination)Delivered Duty Unpaid: The delivery of goods and the cargo insurance to the final point of destination, which areoften the project site or buyers premises at sellers expense. Buyer assumes the importcustoms clearance, payment of customs duties and taxes. The seller may opt not to insurethe goods at his/her own risks DDP (At the named point of destination)Delivered Duty Paid: The seller is responsible for most of the expenses, which include the cargoinsurance, import custom clearance, and payment of custom duties, and taxes at the buyers end, and the delivery of goods to the final point of destination, which is often the project site or buyers premise. The seller may opt not to insure the goods at his/her ownrisk. 7.2 E-term, F-term, C-term & D-term: Inco terms 2000, like its immediate predecessor, groups the term in four categoriesdenoted by the first letter in the three-letter abbreviation

Under the E-TERM (EXW) , the seller only makes the goods available to the buyer at the sellers own premises. It is the only one of that category. Under the F-TERM (FCA, FAS, &FOB), the seller is called upon to deliver the goods to a carrier appointed by the buyer. Under the C-TERM (CFR, CIF, CPT, & CIP), the seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional cost due to events occurring after shipment or discharge. Under the D-TERM (DAF, DEQ, DES, DDU & DDP), the seller has to bear all costs and risks needed to bring the goods to the place of destination.All terms list the sellers and buyers obligations. The respective obligations of both parties have been grouped under up to 10 headings where each heading on thesellers side mirrors the equivalent position of the buyer. Examples are Delivery,Transfer of risks, and Division of costs. This layout helps the user to compare the partysrespective obligations under each Inco terms. 8. Realization of Export Proceeds Once the goods have been physically loaded on board the ship, the exporter shouldarrange to obtain his payment for the exports made by submitting relevant documents.A complete set of documents normally submitted for the purpose of negotiation is calleda negotiable set of documents, which usually consist of the following: 1 . Bill of exchange 2. Bill of lading 3. Commercial invoice 4. Packing list 5. Inspection certificate 6. GSP certificate 49 8.1 Negotiation A complete set of negotiable documents is presented to the negotiating bank through whom the documentary letter of credit has been advised. Where the exporter hascomplied with all the terms and conditions of the letter of credit while submitting hisdocuments to the negotiating bank, the documents are deemed to be clean. The letter of credit opened by the buyer through his bank (opening bank) authorizes drawing a bill of exchange against which payment will be made by the opening bank on behalf of the buyer, provided the terms and conditions specified in the letter of credit are compliedwith. 8.2 Bill of exchange It is the negotiable instrument through which the amount of export invoice /invoices will be collected from the corresponding bank specified by the importer throughexporters bank. It contains number and date drawn on, credit no., corresponding bank address, the amount to be collected, terms of payment, importers name and address withinvoice no. and bill of lading or airway bill no. the drafts drawn are of two types. 1 . Sight draft 2. Usance draftIf the letter of credit stipulates payment at sight, the exporter draws a sight drafton the buyer or his bank. When sight drafts are drawn by the exporter, he expects the buyer to arrange for payment immediately on presentation of the draft. Until payment for the draft is made, shipping documents will not be handed over to the buyer to enable himto clear the goods . (See Annexure 7) When the exporter has offered credit terms for payment, a Usance draft isusually drawn by the negotiating bank of the exporter. It is drawn for the payment after aspecified period. The buyer on whom the draft is drawn retires the draft after 30days,60days or 90days as agreed between him and the exporter at the time of concluding the

contract. The letter of credit opened by the buyer will clearly specify the credit periodwhich has been agreed upon and would mention that the draft should be drawn for 30,60or 90 days, as the case may be.For a credit period beyond 180 days, the exporter has to obtain the prior permission of the exchange control authorities in India. The bill of exchange drawnshould correspond to the conditions stipulated in the letter of credit.Besides the negotiation of the documents, the banker has to perform other formalities. As part of the negotiation set of documents, the exporter has submitted the duplicate copy of the GR-1 form. After negotiation are complete, and payment is physically received by the bank, the duplicate copy of the GR-1 form is sent to the RBI after due checks.The exporter requires a commercial invoice attested by the bank for his use inclaiming incentives. The bank attests the extra copies of the commercial invoice supplied by the exporter and returns them to him.To enable the exporter to claim incentives applicable for exports, a certificateknown as Form I or Bank Certificate is required. The Form I or Bank certificatedescribes the product exported, its value, the details of the invoice, the bill of ladingagainst which the export was made, the rate of conversion for the exchange for theexchange used, etc. the case of CIF contracts, the bank certificate specifies the fob value,freight and insurance under separate headings as evidenced in the bill of lading, insurance policy and invoice. The bank certificate also indicates the GR-1 form number againstwhich the export was made. The original copy of the bank certificate is furnished to theexporter and the duplicate copy is sent to the JDGFT of the area. A third copy may bekept for its official records. 5 1 9. Realization of Export Incentives: The incentives the exporter will get in todays context and the manner in whichthey can be obtained are as follows: 9.1 Duty Drawback :This refers to a rate fixed by the government based on the customs duty and exciseduty components which go into the production of an export product. This does not refer to the finished product excise duty, but to the excise and customs duty paid on all the rawmaterials and components which go into the production.Every year the Department calls for latest data on these through the Export PromotionCouncils, determines the drawback rate and publish it for the exporters by June of theyear.When the shipping bill is submitted to the customs for the shipping of goods, itconsists of a set of five copies. The duplicate copy is known as the Drawback copy, andthis will contain all the details like description of the product, the port of destination, thetotal amount of drawback as per government notification etc. this copy is endorsement bycustoms and sent directly by them to the drawback cell in the customs departmentsituated in the port from which goods were exported. The exporter can approach this cellfor his drawback payment with any additional details they may ask for. 9.2 Excise Rebate: Finished goods which are subject to excise duty for home consumption are exemptfrom the duty when they are exported. The scheme is also applicable where the exportedgoods contain excisable goods in their manufacture.The exporter can avail of this facility in either of the following methods, wherefinished goods are excisable: 1 . Export under Bond: Under this method, the exporter has to execute a bond in favour of CentralExcise Authorities. The amount of the bond will be equal to the duty on the estimated

maximum outstanding of goods leaving the factory without paying the duty and pending acceptance of their proof of export by excise authorities. No excise need to be paid by the exporter. 2. Refund of Duty: If the duty is already paid, after export is made, the exporter should make aclaim with the Central Excise Authorities. After verification of the claim, the exciseauthorities will arrange for the refund of the central excise.Where the excisable materials have been used in the manufacture, similar to the abovearrangement, the exporter can avail of the facility of manufacturing under bond or hecan claim refund after duty is paid. 10. Turnover of Nitin Spinners Ltd. & Future Trend The index given below shows the total sales made by the company during last 5financial year: Table1: Sales of Nitin Spinners Ltd. For Last 5 yearsS.N. Financial Year Sales (Lacs) V ariation (Lacs) Percentage (%) 1. 2005-2006 9817.34 - 9.6402. 2006-2207 15632.14 5814.8 15.3503. 2007-2008 19922.24 4290.1 19.5604. 2008-2009 26292.31 6370.07 25.8125 2009-2010 30195.96 3903.65 29.645

CONCLUSION The study was conducted to know the process involved in a Yarn Spinning firmand to study about the various departmental functions which coordinates to complete theexport cycle. The export procedure of the firm has been seen clearly and other relatedaspect has been known.From the analysis it is found that the performance of the company is satisfactory, but the company is facing problem regarding excess of documents which causes delay intransportation. Therefore necessary steps should be taken to limit the number of documents so that the company can make distribution at right for the company and ithelps the company to have competitive advantage over its competitors.There are signs of good future for NITIN SPINNERS LTD. because of growingdemand for Indian knitwear in the world market.

11. Bibliography Books 1. Balagopal T.A.S , Export Management, Himalaya Publishing House, nineteenthedition 2007 2. Jeevanandam.C. , Foreign Exchange- practice, concepts and control, Sultan Chandand Sons, tenth edition 2007 3 . Kothari C.R. , Research Methodology, Method & techniques, New AgeInternational. Pvt. Ltd, Second Edition, 1985 4. Mahajan M.I. , A guide on export policy, procedure and documentation, TataMcGraw hill publishing company ltd, Third Edition 2005 5. Dr. V arma.M.M. & Aggarwal R.K , Foreign Trade Management, King Book,second edition 2006 6 . Puri, V .K ., Exporters Guidelines, A Basic Book on How to Export as per Govt.Policy & Procedures, 2nd Edition, JBA Publishers, 2008-097. Paul, Justin & Aserkar, Rajiv , Export Import Management, 2nd Edition, OxfordUniversity Press, 2009, Chapter 2, pp. 17-29. Reference Sites y http://www.nitinspinners.com y http://www.sebi.gov.in/dp/splfinal.pdf as retrieved on April 20, 2010 y Overcoming the obstacles to export documentation (1),Thomas A. Cook . o http://search.barnesandnoble.com/Export-Import-Procedures-and-Documentation/Thomas-E-Johnson y Export Documentation Made Easy (2), Laurel Delaney o http://www.allbusiness.com/business-planning-structures/starting- a- business/3878207-1.html

58 y Export Trade Sector Using Available Trade Finance Tools and Resources (3),Koch and John. o http://www.allbusiness.com/trade-development/trade-development-finance/8890466-1.html y True cost of export documentation (4),Corinne Campbell. o http://www.dynamicbusiness.com/articles/articles-export/true-cost-of-export-documentation2043.html y Guide to Inco terms 2000, Posner and Martin (5). o http://www.allbusiness.com/legal/international-law-foreign-investmentfinance/918569-1.html y All Industry Rates of Duty Drawback, 2008-099. o http://www.cmai.in/download/circulars/Pre_Budget_Memorandum.pdf y Foreign Trade Policy 27th August 2009 - 31st March 2014 o http://dgftcom.nic.in/exim/2000/policy/ftp-plcontent0910.pdf *************** 59 Annexure Annexure: 1 Commercial InvoiceAnnexure: 2 Custom InvoiceAnnexure: 3 Packing ListAnnexure: 4 Certificate of OriginAnnexure: 5 Bill of LadingAnnexure: 6 S Q C Q uality ReportAnnexure:7 Bill of Exchange