00CRITICAL ANALYSIS OF EXIM BANK

A project Submitted to
University of Mumbai for partial fulfillment of the degree of
Bachelor in Commerce – Semester VI
Under the Faculty of Commerce (Banking & Insurance)
By
Mr. AIKYA DATTATRAY GANDHI
Roll no.712
Under the Guidance of Miss Sujata Mahajan

SIR SITARAM & LADY SHANTABAI PATKAR COLLEGE OF ARTS SCIENCE

AND
V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS
(AUTONOMOUS COLLEGE)
S.V. ROAD, GOREGAON (WEST), MUMBAI-400062
 CRITICAL ANALYSIS OF EXIM BANK
A project Submitted to
University of Mumbai for partial fulfillment of the degree of
Bachelor in Commerce – Semester VI
Under the Faculty of Commerce (Banking & Insurance)
By
Mr. AIKYA DATTATRAY GANDHI
Roll no.712
Under the Guidance of Miss Sujata Mahajan

SIR SITARAM & LADY SHANTABAI PATKAR COLLEGE OF ARTS SCIENCE

AND
V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS
(AUTONOMOUS COLLEGE)
S.V. ROAD, GOREGAON (WEST), MUMBAI-400062
SIR SITARAM & LADY SHANTABAI PATKAR COLLEGE OF ARTS & SCIENCE
AND
V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS
S.V. ROAD, GOREGAON (WEST), MUMBAI-400062

CERTIFICATE
This is to certify that Kumar Aikya Dattatray Gandhi has worked and duly
completed his/her Project work for the degree of Bachelor in Commerce under
the Faculty of Commerce in the subject of Banking & Insurance and his/her
project is entitled, “CRITICAL ANALYSIS OF EXIM BANK” under my
supervision.
I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree of
Diploma of any University.
It is his/her own work and facts reported by his/her personal findings and
investigations.

(Name of Mentor)

(Dr. Sharmishtha Matkar)

Principal
(Name of External Examiner)

Date of Submission:
 DECLARATION BY LEARNER

I Kumar AIKYA DATTATRAY GANDHI, here by, declare that the work
embodied in this project work titled “CRITICAL ANALYSIS OF EXIM
BANK” forms my own contribution to the research work carried out under
the guidance of (….) is a result of my own research work and has not been
previously submitted to any other University for any other Degree/Diploma to
this or any other University.

Where ever reference has been made to previous work of others, it has been
clearly indicated as such and included in bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

(Name and Signature of learner)

Roll No: - 712

(Certified by: Miss Sujata Mahajan)

 ACKNOWLEDGEMENT
To list who have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me a

chance to do this project.

I would like to thank my Principal, Dr. Sharmishtha Matkar, for providing

the necessary facilities required for completion of these project.

I would like to express my sincere gratitude towards my project guide, (Name

of Mentor) whose guidance and care made this project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project, especially my Parents and Peers
who supported me throughout my project.

Signature
Aikya Dattatray Gandhi
Roll no: - 712
 CRITICAL ANALYSIS OF EXIM BANK

INTRODUCTION
The Export Import Bank (EXIM Bank) is the leading export finance organization of India
established under the umbrella of Export Import Bank (EXIM Bank) of India with the
specification in Act 1981, during the year 1982 (Chanana, 2009). Since its initiation, the EXIM
Bank act both as a key player and a catalyst in the upgrade of cross border investment and
trade. Initiating functions as a purveyor of credit of export, similar to other Agencies of Export
credit in the global level, the EXIM Bank of India (Chanana, 2010) for over the time period,
developed into an organization that shows a principal role in associating Indian industries,
specifically the SMEs (small and the medium enterprises) in their efforts of globalization, by
means of broad range of services and products provided at every phases of business cycle,
beginning from the technology imports and development of export products to the export
marketing, export production, overseas investment, post – shipment and pre – shipment. The
EXIM Bank of India plays a significant role as the source of finance, coordinator, promoter
and consultation to the foreign trade of India.

The EXIM Bank is a specific financial firm that is completely owned by the Indian Government
to assist the financial organizations in meeting the financial requirements. The EXIM Bank has
laid strong importance on improving the project exports and the funding preferences for which
the bank has been improved with the institution of the program of BC – NEIA (Buyer’s Credit
– National Export Insurance Account).

The bank deals in the lines of credit in association with regional development banks (Kilby,
2006), overseas financial institutions, other overseas entities and sovereign governments. The
EXIM Bank has laid strong importance on improving the project exports and the funding
preferences for which the bank has been improved with the institution of the program of BC –
 NEIA (Buyer’s Credit – National Export Insurance Account). The bank enables technology of
two – way transfer through financing the import of technologies into the Indian nation and the
investments in the foreign nations by the Indian organizations for making subsidiaries, joint
ventures or making the overseas acquisitions (EXIM bank, 2011). From the initiation of this
institution, EXIM Bank of India is working as a leading mechanism and major player for the
support and escalation of cross border business, trade and foreign investments. The key tasks
performed by the EXIM Bank includes to provide the direct financial support to the exporters
of assorted categories, to issues the shares, bonds and stocks. In the span of year 2005-2006,
the cumulative amount of credits given by the bank was 150389 million, while this value was
220760 million in the recent year. Many other chores are associated with the export import
bank to cater the needs of the exporters. It was set up with the aim to finance, facilitate and
promote the foreign or international trade of India. To strengthen the respective and joint
exchange and speculation in the middle of India and Myanmar, the Bank opened its eighth
abroad Representative Office in Yangon, Myanmar. The Bank additionally plans to set up a
Project Development Company in Africa, which will basically hope to get framework ventures
Africa to a bankable stage and encourage sends out from India to Africa. The Bank, with its
assorted projects, takes into account diverse portions of exporters and the fare cycle. The Bank
gives help with offering Indian some assistance with locating so as to firm in their globalization
endeavors abroad. EXIM Bank likewise lays unique accentuation on improving fare capacities
and worldwide intensity of Indian organizations through its different Advisory Services.

During the year, the Bank issued India’s first USD denominated Green bonds with a
benchmark size of US$500 million. During the year, an Export Development Fund [EDF]
facility, a special fund, established by GoI under the Exim Bank Act and administered by Exim
Bank, to sanction loans in the interest of international trade towards meeting strategic
objectives was put to use. Exim Bank under the GoI’s ‘Act East Initiative’ undertook a Mission
to CLMV countries, consequent to which a Project Development Company is being set up, to
be followed by a Project Development and Facilitation Framework.

HISTORY OF EXIM BANK

For a long time, the need for a separate institution for export finance was not felt in the country
due to the closed market conditions and India’s limited share in world export. It is only during
the 1980s, the need to increase India’s export was felt, owing to increased foreign debts, which
compelled India to go for an Apex institution and the Export Import Bank (Exim Bank) was
set up in 1982.
 BACKGROUND OF EXIM BANK

EXIM bank believes in promoting the business through personalized services and perpetual
relationship. It has strong commitment to stay competitive and serve the clients of different
strata in the society as well as to accelerate the pace of economic operation.

This research explores the impact of The EXIM Bank policies on the international investment
and trade promotion in our country. An attempt has been made to understand the customer
satisfaction towards the service quality of EXIM Bank of India. This research investigates the
satisfaction level of customers of EXIM Bank of Delhi branch in special reference with NCR
which acts as key player in international trade.

NEEDS OF EXIM BANK

Besides, the change in the world market and the creation of World Trade Organization (WTO)
compelled India to give a fillip to its export finance. All along, it was felt that the Indian
exporter needs only rupee finance. But it is only due to a change in the export policy of
promoting more value added export, the role of Exim bank was very much felt. It is time Exim
bank provided finance for research and development as indigenous research plays a crucial role
owing to intellectual property rights.
 OBJECTIVES OF EXIM BANK

1. Ensure an integrated and coordinated approach to solving the problems of exporter.

2. Provide special attention to capital goods export and export of technical services.
3. Tap domestic and overseas markets for resources, undertake development and finance
activities in the areas of exports.
4. Provide financial assistance to the exporters and importers and act as the principal
financial institution for coordinating the working of other institutions engaged in
financing exports and imports.
5. Provides refinance facilities to commercial banks and financial institutions against the
exports-imports financing activities.

IMPORTANCE OF EXIM BANK

1. Provide financial assistance to exporters.

2. Promoting foreign trade of India.
3. Coordinating the working of institutions engaged in financing exports and imports.
4. Assist Indian Joint Ventures in third world.
5. Concentrate on medium and long term finance.

REVIEW OF LITERATURE

1. Miller (2008) in a study on health paid leave benefits has found that health coverage
remains by far the most costly benefits provided to employees more than one quarter
of human resource professionals, 29%, indicated their organisation now provide
health saving accounts, paid family leaves and paid paternity leave all declined in
2008 compared with 2007.

2. Giesel (2005) in a study on newyork city council passes has found that grocery
stores and other retailers that sell groceries to make sustaintial contributions toward
their employees health insurance coverage costs by the newyork council, estimated
 amount of contribution to each employee per hour, coverage of the mandate,
implications of the legislation for the Employees Retirement Income Security Act.

3. Hone (2007) in a study on health plans has found that the seven step plan that can
guide companies toward their transformation to consumer driven health plans and
health savings accounts in the US companies should establish at honest assessment
of their health benefits and health status. They are also asked to create a long- term
vision with interim and annual goals.

4. Gresham (2005) in a study on responsibility in plan language found tha the

responsibilty of an employee to handle health costs throug a consumer directed plan.
Explanation on the defined contribution retirement products, reflections, reason it
is necessary that benefits manager should continously reassess therir programmes
and communications with their employees.

5. Oberoi (2010) in a study on rewards and benefits has found that it is not just how
much reward our staff that matters. Rather, it is what reward them for how measure
the results of this investment. Variable pay, benefits differentiated rewards and
performance matrics these are all key aspects play the important role in ROI
measurement and essential part of an organization‟s reward architecture. In
benefits. Organization have the mindset that their high performance will only stay
with them if their salary was externally competitive not only on aspects, but also in
terms of benefits and total remuneration.

HYPOTHESIS

Ho:- EXIM Bank is leading in Banking sector.

H1: - EXIM Bank is not leading in Banking sector.
 RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey
was to collect appropriate data, which work as a base for drawing conclusion and
getting result. Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods but also logic
behind the methods used in the context of a research study and it explains why a method
has been used in the preference of the other.
 BALANCE SHEET

BALANCE SHEET OF MK EXIM INDIA (in Rs. MAR MAR MAR MAR MAR
Cr.) 19 18 17 16 15

12 12 12 12 12
mths mths mths mths mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 7.18 7.18 7.18 7.18 7.18

TOTAL SHARE CAPITAL 7.18 7.18 7.18 7.18 7.18

Reserves and Surplus 17.19 16.71 16.32 15.57 14.91

TOTAL RESERVES AND SURPLUS 17.19 16.71 16.32 15.57 14.91

TOTAL SHAREHOLDERS FUNDS 24.37 23.89 23.50 22.75 22.09

Minority Interest 0.49 0.48 0.46 0.39 0.00

NON-CURRENT LIABILITIES

Long Term Borrowings 0.44 0.19 1.20 2.62 0.26

Deferred Tax Liabilities [Net] -0.03 0.01 0.10 0.01 -0.02

Other Long-Term Liabilities 0.00 0.00 0.00 0.00 0.00

Long Term Provisions 0.00 0.00 0.00 0.00 0.00

TOTAL NON-CURRENT LIABILITIES 0.41 0.20 1.29 2.63 0.24

CURRENT LIABILITIES
Trade Payables 1.10 1.25 21.84 34.59 31.68

Other Current Liabilities 0.66 1.29 0.58 0.50 0.72

Short Term Provisions 0.27 0.15 0.22 0.21 0.28

TOTAL CURRENT LIABILITIES 5.03 6.95 26.25 39.16 34.00

TOTAL CAPITAL AND LIABILITIES 30.30 31.52 51.51 64.94 56.33

ASSETS

NON-CURRENT ASSETS

Tangible Assets 4.58 4.75 5.63 6.09 1.90

Intangible Assets 0.00 0.00 0.00 0.00 0.00

Capital Work-In-Progress 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 4.58 4.75 5.63 6.09 1.90

Non-Current Investments 0.09 0.07 0.07 0.07 0.00

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans and Advances 0.02 0.06 0.90 1.06 1.03

Other Non-Current Assets 0.60 0.87 0.76 0.70 0.51

TOTAL NON-CURRENT ASSETS 5.29 5.75 7.36 7.91 3.44

CURRENT ASSETS

Current Investments 0.00 0.00 0.00 0.00 0.00

Inventories 6.48 3.60 4.50 2.78 1.94

Trade Receivables 14.93 14.11 39.27 53.68 50.15

Cash and Cash Equivalents 0.11 0.11 0.27 0.46 0.40

Short Term Loans and Advances 3.49 7.27 0.08 0.11 0.40

OtherCurrentAssets 0.00 0.68 0.03 0.00 0.00

TOTAL CURRENT ASSETS 25.01 25.77 44.15 57.03 52.89

TOTAL ASSETS 30.30 31.52 51.51 64.94 56.33

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 0.00 0.00 0.00 0.01 0.02

BONUS DETAILS

Bonus Equity Share Capital 0.00 0.00 0.00 0.00 0.00

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted Market Value 0.00 0.00 0.00 0.00 0.00

Non-Current Investments Unquoted Book Value 0.00 0.07 0.07 0.07 0.00

CURRENT INVESTMENTS

Current Investments Quoted Market Value 0.00 0.00 0.00 0.00 0.00

Current Investments Unquoted Book Value 0.00 0.00 0.00 0.00 0.00
 PROFIT AND LOSS ACCOUNT

MK Exim India
Consolidated Profit & Loss
------------------- in Rs. Cr. -------------------
account

Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Revenue from Operations [Gross] 27.26 22.01 28.91 36.63 50.76

Revenue from Operations [Net] 27.26 22.01 28.91 36.63 50.76

Total Operating Revenues 27.26 22.01 28.91 36.63 50.76

Other Income 1.55 0.96 2.88 2.54 0.17

Total Revenue 28.81 22.97 31.79 39.16 50.93

EXPENSES

Cost of Materials Consumed 0.00 0.00 0.00 0.40 1.63

Purchase of Stock-In Trade 25.63 16.36 27.19 34.05 47.40

Operating and Direct Expenses 0.00 0.61 0.98 0.71 0.49

Changes in Inventories Of FG, WIP

-2.88 0.90 -1.72 -0.98 -1.19
And Stock-In Trade

Employee Benefit Expenses 1.89 1.44 1.09 1.02 0.15

Finance Costs 0.47 0.75 0.88 0.95 0.22

Depreciation and Amortization

0.72 0.84 0.97 1.02 0.17
Expenses

Other Expenses 2.17 1.49 1.12 1.34 1.37

Total Expenses 28.00 22.39 30.51 38.50 50.24

Profit/Loss Before Exceptional,

0.81 0.58 1.28 0.66 0.69
Extraordinary Items and Tax
 Profit/Loss Before Tax 0.81 0.58 1.28 0.66 0.69

Tax Expenses-Continued Operations

Current Tax 0.31 0.27 0.29 0.19 0.22

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.03

Deferred Tax 0.00 -0.08 -0.05 -0.06 -0.01

Tax for Earlier Years 0.00 0.00 0.14 0.00 0.00

Total Tax Expenses 0.31 0.18 0.38 0.13 0.18

Profit/Loss After Tax and Before

0.50 0.40 0.91 0.53 0.51
Extraordinary Items

Profit/Loss from Continuing

0.50 0.40 0.91 0.53 0.51
Operations

Profit/Loss for The Period 0.50 0.40 0.91 0.53 0.51

Minority Interest -0.01 -0.02 -0.08 -0.12 0.00

Consolidated Profit/Loss After

0.48 0.38 0.83 0.41 0.51
MI and Associates

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 1.00 1.00 1.00 1.00 1.00

Diluted EPS (Rs.) 1.00 1.00 1.00 1.00 1.00

DIVIDEND AND DIVIDEND

PERCENTAGE

Equity Share Dividend 0.00 0.00 0.00 0.00 0.36

Tax on Dividend 0.00 0.00 0.00 0.00 0.07

 CASHFLOW STATEMENT

CASH FLOW OF MK EXIM INDIA MAR MAR MAR MAR MAR

(in Rs. Cr.) 19 18 18 17 16

12 12 12 12 12
mths mths mths mths mths

NET PROFIT/LOSS BEFORE 0.00 0.58 0.00 1.28 0.66

EXTRAORDINARY ITEMS AND TAX

Net Cashflow From Operating Activities 0.00 0.32 0.00 2.11 6.54

Net Cash Used in Investing Activities 0.00 -0.13 0.00 -0.64 -3.55

Net Cash Used from Financing Activities 0.00 -0.35 0.00 -1.66 -3.17

Foreign Exchange Gains / Losses 0.00 0.00 0.00 0.00 0.00

NET INC/DEC IN CASH AND CASH 0.00 -0.16 0.00 -0.19 -0.18
EQUIVALENTS

Cash and Cash Equivalents Begin of Year 0.00 0.27 0.00 0.46 0.64

Cash and Cash Equivalents End of Year 0.00 0.11 0.00 0.27 0.46
 KEY FINANCIAL RATIOS

KEY FINANCIAL RATIOS OF MK MAR MAR MAR MAR MAR

EXIM INDIA (in Rs. Cr.) 19 18 17 16 15

PER SHARE RATIOS

Basic EPS (Rs.) 0.67 0.53 1.15 0.57 0.70

Diluted EPS (Rs.) 0.67 0.53 1.15 0.57 0.70

Cash EPS (Rs.) 1.69 1.72 2.61 2.15 0.95

Book Value [ExclRevalReserve]/Share (Rs.) 34.63 33.94 33.38 32.24 30.77

Book Value [InclRevalReserve]/Share (Rs.) 34.63 33.94 33.38 32.24 30.77

Revenue from Operations/Share (Rs.) 37.97 30.65 40.26 51.01 70.69

PBDIT/Share (Rs.) 2.78 3.02 4.36 3.66 1.50

PBIT/Share (Rs.) 1.78 1.85 3.01 2.25 1.26

PBT/Share (Rs.) 1.13 0.81 1.79 0.92 0.96

Net Profit/Share (Rs.) 0.69 0.56 1.26 0.74 0.71

NP After MI and SOA / Share (Rs.) 0.67 0.53 1.15 0.57 0.71

PROFITABILITY RATIOS

PBDIT Margin (%) 7.32 9.85 10.82 7.17 2.12

PBIT Margin (%) 4.69 6.05 7.48 4.40 1.78

PBT Margin (%) 2.97 2.63 4.44 1.79 1.35

Net Profit Margin (%) 1.81 1.81 3.13 1.44 1.00

NP After MI and SOA Margin (%) 1.76 1.74 2.85 1.12 1.00

Return on Net worth/Equity (%) 1.97 1.60 3.51 1.80 2.30

Return on Capital Employed (%) 5.06 5.42 8.56 1.59 2.27

Return on Assets (%) 1.59 1.21 1.60 0.63 0.90

Total Debt/Equity (X) 0.14 0.19 0.20 0.29 0.07

Asset Turnover Ratio (%) 89.98 69.81 56.12 56.39 90.10

LIQUIDITY RATIOS

Current Ratio (X) 4.97 3.71 1.68 1.46 1.56

Quick Ratio (X) 3.69 3.19 1.51 1.39 1.50

Inventory Turnover Ratio (X) 4.21 6.11 6.43 13.18 26.11

Dividend Payout Ratio (NP) (%) 0.00 0.00 0.00 0.00 70.55

Dividend Payout Ratio (CP) (%) 0.00 0.00 0.00 0.00 52.53

Earnings Retention Ratio (%) 0.00 0.00 0.00 0.00 29.45

Cash Earnings Retention Ratio (%) 0.00 0.00 0.00 0.00 47.47

COVERAGE RATIOS
Interest Coverage Ratios (%) 2.72 1.77 2.46 1.69 4.19

Interest Coverage Ratios (Post Tax) (%) 2.72 1.77 2.46 1.69 4.19

VALUATION RATIOS

Enterprise Value (Cr.) 13.98 10.57 10.28 15.61 7.63

EV/Net Operating Revenue (X) 0.51 0.48 0.36 0.43 0.15

EV/EBITDA (X) 7.00 4.88 3.28 5.94 7.07

Market Cap/Net Operating Revenue (X) 0.37 0.26 0.18 0.25 0.13

Retention Ratios (%) 0.00 0.00 0.00 0.00 29.44

Price/BV (X) 0.42 0.24 0.22 0.40 0.29

Price/Net Operating Revenue 0.37 0.26 0.18 0.25 0.13

Earnings Yield 0.05 0.07 0.16 0.04 0.08

 FINANCIAL RATIOS

RATIOS 2019 2018 2017

DEBT-EQUITY RATIO 0.18 0.20 0.19

CURRENT RATIO 4.51 2.08 1.51

ASSET TURNOVER RATIO 7.65 4.84 5.61

INVENTORY TURNOVER RATIO 4.95 5.03 7.18

DEBTORS TURNOVER RATIO 1.93 0.78 0.59

INTEREST COVERAGE RATIO 2.73 1.89 1.59

OPERATING MARGIN (%) 5.61 7.74 5.13

NET PROFIT MARGIN (%) 1.69 1.83 0.42

RETURN ON CAPITAL EMPLOYED (%) 4.03 4.41 3.81

RETURN ON NET WORTH (%) 1.75 1.55 0.49

 ANNUAL REPORT

Dear Members, The Directors have pleasure in presenting their 23rd Annual Report and the
audited financial statements for the financial year ended 31 March 2015 1 Financial Results The
summarized financial results for the financial year ended 31st March 2015 are presented below:
Rs. In lacs Details Financial Financial year ended year ended 31st March 31st March 2015 2014
Income from operations 5093.03 2808.90 Profit before interest, 107.93 47.66 depreciation and
taxation Finance cost 21.60 17.63 Depreciation 17.45 15.73 Profit before tax 68.88 14.30
Taxation 18.00 3.21 Profit after tax 50.88 11.09 Balance brought forward from 933.18 922.09
previous year Disposable surplus available 984.06 933.18 after adjustments Appropriations:
Proposed dividend 35.90 - Dividend distribution tax 7.35 - Balance carried to balance 940.81
933.18 sheet The income during the financial year ended 31st March 2015 is Rs. 5093.03 lacs
compared to Rs. 2828.90 in the previous year- an increase of 81.31%. The profit after tax for the
financial year ended 31st March 2015 is Rs. 50.88 lacs compared to Rs. 11.09 lacs - an increase
of 359% over the previous year. The sales by way of exports is Rs. 4602.87 lacs during the year
ended 31st March 2015 compared to Rs. 2477.95 lacs in the previous year. Export sales
constitute about 96% of the total sales during the year. 2 Dividend and Reserves The Board of
Directors has recommended a dividend of Rs. 0.50 per share (5%) for the financial year ended
31s'' March 2015 aggregating to Rs.35.90 lacs. During the year under review, no amount is
transferred to general reserves and the surplus amount of Rs. 940.81 lacs is carried over to the
balance sheet. 3 Share Capital The paid up equity share capital of the Company as at 31st March
2015 stood at Rs 718.05 lacs. During the year under review, the Company has not issued shares
with differential voting rights nor has it granted any stock options or sweat equity. None of the
directors of the Company hold instruments convertible into equity shares during the financial
year ended 31st March 2015. 4 Finances Accounts The Company prepares its financial
statements in accordance with the requirements of the Companies Act 2013 and the Generally
Accepted Accounting Principles (GAPP)as applicable in India. The financial statements have
been prepared on historical cost basis. The estimates and judgments relating to the financial
statements are made on a prudent basis so as to reflect in a true and fair manner, the form and
substance of transactions and reasonably present the Company''s state of affairs, profits and cash
flows for the financial year ended 31st March 2015.
 SECONDARY DATA

Head office -Mumbai

A network of 14 offices in India and Overseas.

Domestic Offices:
Ahmedabad, Bangalore, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai,
New Delhi, Pune.

Head Office
Centre One Building, Floor 21,
World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005.
Phone: 22185272,
Fax: 22182572
E-mail: eximcord@vsnl.com
 OVERSEAS OFFICE:-

Budapest, Johannesburg, London, Singapore, Washington DC

Exim Bank - Business Profile

THE OPERATIONS ARE GROUPED AS BELOW:
EXPORT CREDITS

 Bank provides exports of Indian machinery, manufactured goods, consultancy and

technology services on deferred payment terms
 Lines of credit/buyer's credits are extended to overseas entities i.e. governments,
central banks, commercial banks, development finance institutions, regional
development banks for financing export of goods and services from India

1. Project Finance

2. Trade Finance
 EXPORT CAPABILITY CREATION

 Export Product Development

 Export Marketing Finance

Export Oriented Units
1. Project Finance

2. Working Capital

3. Production Equipment Finance

 European Community Investment Partners (ECIP)

 Asian Country Investment Partners (ACIP)

 Overseas Investment Finance

Export Facilitation Programmes

1. Software Training Institutes

2. Minor Ports Development

EXPORT SERVICES

 In addition to finance, Bank provides a range of information and advisory services

to Indian companies to supplement their efforts aimed at globalisation of Indian
business.

SUPPORTING GROUPS

1. Planning & Research

2. Corporate Finance

3. Human Resource Management Establishment

4. Corporate Affairs
 Exim Bank: An Organisational Environment conducive to achieving
excellence.

Organisational Chart Board of Directors Culture Financial Highlights.

ORGANISATIONAL CHART

 Exim Bank is fully owned by the Government of India and is managed by a Board
of Directors with representation from Government, financial institutions, banks,
business community.
 The Bank is professionally run with a total staff of 190 who are drawn from six
major streams: commercial and development banking, engineering, economics,
accountancy, computer technology and business school graduates

ORGANISATIONAL CULTURE

 Bank offers a congenial and challenging work environment.

 Salient features of the work environment are emphasis on office automation, an

open office system, an independent 'doer's' work culture, minimization of
hierarchical constraints in organisational functioning, and multi-disciplinary
inputs in decision making.
 Skill upgradation is a continuing process in the Bank. Bank's professionals
undergo training in areas of relevance to the Bank in India and abroad.
 The training programmes are chosen and designed to develop technical and
managerial skills in the professionals and an ability to initiate and innovate.
Size and Nature

In comparison with other organisations with similar asset levels, Exim Bank's staff
strength is lean. As of March, 2005, total personnel in the Bank numbered 193. Highly
automated office systems ensure that personnel are equipped with timely and complete
information and streamlined work processes. The human resources of the Bank include
139 professionals who are drawn from a variety of backgrounds embodying various
disciplines which are required for the Bank's functions. They include bankers, business
school graduates, chartered accountants, economists, engineers and computer specialists.

Nature of work

Right from its inception, Exim Bank has attached a great deal of importance to a
congenial and challenging work environment. The objective has been to achieve
excellence in its area of operations, not only in comparison with national organisations
but also in a global context. The bank has a private sector work ethic, while drawing upon
the advantages thrown up by way of its public sector ownership. An important reason for
this has been the relatively young age of the organisation which enabled the Bank to cast
itself in a different mould right from inception without being saddled with a legacy of
outmoded work practices. Some salient features of the work environment are the
emphasis on office automation, an open office system, an independent "doer's" work
culture, minimisation of hierarchical constraints in organisational functioning, and multi-
disciplinary inputs in decision making. Exim Bank is an officer oriented organisation.
Officers work independently and self-sufficiently in all the activities that their job entails.
A sense of togetherness and common purpose is sought to be fostered by the Bank's in-
house publication Eximius, and the annual staff get-together. The Eminent Persons
Lecture Series brings persons who have achieved eminence in diverse fields to interact
and share their experience with officers.
Degree Of Emphasis

Exim Bank operates at the frontier of available office automation and technology. The
Bank believes that human resources should primarily be utilized for activities that require
knowledge, skills, analysis and discretionary choices. An array of state-of-the-art
computer hardware, software, and telecommunications are available to the Bank's
personnel. Members of the staff make use of these facilities to the fullest extent feasible
not only for non-discretionary activities but also as necessary tools for optimizing their
work output both in terms of quantity and quality. The lean staff strength makes it
possible for the Bank to provide each officer with his/her own personal computer as well
as unlimited access to office automation and technology.

Multi-disciplinary inputs

The complexity of the Bank's functions requires cross-disciplinary inputs for effective and
correct decision-making. Thus, all important decisions are taken with the aid of inputs
from relevant specialists within the Bank. This enables a comprehensive micro and macro
level assessment of risks and rewards. Through this process of collegiate decision making,
team work and inter personal skills are deployed to the fullest extent so as to make
optimum use of the Bank's diverse human resources.

Objective of the Young Professionals Programme

The Young Professionals Programme is the entry-point for a career with Exim Bank. The
Bank requires skills relating to various disciplines e.g. business management, banking,
economics, accountancy and engineering. Prior work experience is neither expected, nor
considered necessary. Right from the very first year, young professionals will be working
independently on challenging assignments. The Young Professionals Programme offers
an exciting and challenging career to those with the capability and desire to operate at the
cutting edge of India's globalisation process.
Long-term career prospects

Except for those positions where highly specialised skills are needed, the Bank does not
normally recruit directly to higher professional positions. Thus, young professionals who
are committed to a long-term career in the bank, can expect to rise to the upper echelons
of the Bank's management in due course of time. Career growth is determined by
performance and merit, based on an objective and structured system of evaluation. The
Bank anticipates a major expansion and diversification of its activities in the medium and
long run, largely because of the opportunities arising from India's ongoing globalisation
efforts. Therefore, young professionals can look forward to a fruitful career with the
Bank.

Training Programme

Given the complexity of the Bank's operations, as reflected by the many specialised
groups and work-skills, young professionals need to spend time gaining exposure and
knowledge of the various activities and skills utilised in the Bank. This is especially
necessary because efficient decision making in the Bank requires knowledge of a variety
of skills and practices. Working with various groups, young professionals become fully
conversant with all the critical functions and activities. They are also actively involved in
appropriate assignments entailing individual responsibility.

The Bank is unique in its global and national network of institutional and professional
linkages. The five overseas offices - at Washington D.C., Singapore, Budapest, London
and Johannesburg - have helped forge strategic institutional linkages for the Bank with
multilateral agencies such as Multilateral Investment Guarantee Agency, World Bank,
Asian Development Bank, African Development Bank, Export Credit Agencies, Trade
and Investment Promotion Agencies abroad. The Bank's extensive global network,
supported by the Indian Missions abroad facilitates interaction with such agencies and
opens up new opportunities for knowledge building and upgradation of skills.
 Learning opportunities are created for officers by way of participation in seminars and
exhibitions (in India and abroad) sponsored by the Bank, with a view to preparing them
to perform roles / jobs which they may be required to take up in the future as they go up
in the organisational hierarchy, or if the Bank is venturing into new areas through joint
ventures or expansion. State- of-the-art training in highly specialised areas is furthered by
the new initiatives of the Bank, establishing links with multilateral agencies such as
MIGA, IFC Washington and the World Bank. Special programmes organised in
coordination with these agencies are customised to meet the specific requirements of the
Bank.

Salary

During the training period, young professionals are paid a monthly stipend of Rs.
15,000/-. Thereafter, upon absorption as Manager, salaries would correspond to the scale
for this cadre. Currently, gross emoluments at the minimum of the scale amount to about
Rs. 17,900/-. "Dearness Allowance," which constitutes a component of salaries, changes
at quarterly intervals to reflect movements in the price index. Therefore, actual salaries in
the scales alter periodically.

Perquisites

Apart from the salary, the Bank provides attractive perquisites, the monetary equivalent
of which is considerable, in relation to the salary. A major perquisite which the Bank
endeavours to provide to young professionals is furnished bachelor accommodation,
based on need and subject to availability. Individual rooms in the Bank's furnished flats
with common kitchen and lounge are allotted to young professionals wherever possible.
Until now, all young professionals joining the Bank have been provided with
accommodation. As regards family accommodation, the Bank can consider the same
subject to availability. Another valuable perquisite is the scheme for reimbursement of
fees for the purpose of acquisition of skills considered useful to the Bank - for instance,
computer skills, foreign languages.
Eximius Display Centre

 Bank offers to Indian companies, product display facilities of international

standards in India and abroad.

 Display centre at the Head office was set up in mid 1994. Centre exhibits range of
products manufactured and exported by Indian companies to discerning markets
including USA and Japan.

 Around 50 companies whose products are displayed at H.O are among the five
hundred that have been financed and nurtured by Bank.

 The products represent three broad categories: industrial products, consumer

durables and consumer products.

 Our offices in Budapest and London have display centres which allow Indian
companies to display their products for longer periods.
Eximius Centre For Learning : A Place of Global Excellence

THE CONCEPT

 Eximius, from the Latin language means 'set apart and eminent'. It is Exim's
initiative addressed at enhancing the capabilities of the industrial and financial
communities in India and other developing countries, and bringing proposals of
trade and investment to them. It offers them access to contemporary thinking in
international trade and finance, entry to markets and technologies, and support in
joining the global economy.

 The programmes are result-oriented and practical, designed to ensure that

concrete outcomes emerge from every meeting.

 The eventual aim is to establish an international hub of information interchange

between industries and institutions, and amongst industries in different countries;,
a beacon for all developing counties and a place of global excellence, in learning
and in business.
ACTIVITIES

 The Centre aims to keep the companies, which wants to go global, abreast of the
changing global scenario. It conducts two events viz., organizes meeting between
industry groups in different countries and businesspersons in India, involves skill
building through interactive workshops and seminars that involve the participant
in the learning process thus enhancing the competencies of the participants.
"Virtual Faculty"- a concept which enables it to source the best available
instructors to address the issues of the day.

 The Centre has tailor-made courses for the officials of the export credit agencies
in other developing countries. It has also holds in- house programmes.

 Apart from organizing the above programmes, it also conducts research on issues
of importance to its constituency that focuses on generating information, its
usefulness and its immediate implementation within reasonable time frame.
FINANCE SERVICES

EXIM INDIA offers a range of financing programmes that match the menu of Exim Banks
of the industriliised countries. However, the Bank is atypical in the universe of Exim
Banks in that it has over the years evolved, so as to anticipate and meet the special needs of
a developing country. The Bank provides competitive finance at various stages of the
export cycle covering:

EXIM Bank supports you at all stages of Buisiness Cycle

EXIM INDIA operates a wide range of financing and promotional programmes. The
Bank finances exports of Indian machinery, manufactured goods, consultancy and
technology services on deferred payment terms. EXIM INDIA also seeks to co finance
projects with global and regional development agencies to assist Indian exporters in their
efforts to participate in such overseas projects.

The Bank is involved in promotion of two-way technology transfer through the outward
flow of investment in Indian joint ventures overseas and foreign direct investment flow
into India. EXIM INDIA is also a Partner Institution with European Union and operates
for facilitating promotion of joint ventures in India through technical and financial
collaboration with medium sized firms of the European Union.
FINANCE:

Guidelines on Project & Services Exports

 Issued by RBI under Sec. 47 of Foreign Exchange Management Act, 1999

 Types of Exports covered :

o Export of Goods on Deferred Payment Terms (e.g. Export of machinery,

equipment, manufactured products)
o Turnkey Projects (e.g. Setting up of Sugar Plant, Cement Plant)
o Construction Projects (e.g. Construction of Roads, Dams, Bridges)
o Consultancy & Technical Services (e.g. Operation & Maintenance
Contracts)
o Collectively referred to as 'PROJECT &SERVICES EXPORTS'
Definition of Deferred Payment Exports

 In terms of Regulation 9 of the Foreign Exchange Management Act 1999, the

amount representing the full export value of goods exported must be realised and
repadriated to India within 6 months of date of export.
 Exports where more than 10% of the value is realised beyond the prescribed
period, i.e., 6 months from date of shipment, are treated as Deferred Payment
Exports.

Delegation of Powers
 Post-Award Clearance of Export Contracts

TURNKEY, CONSTRUCTION & SUPPLY BIDS / CONTRACTS:

Upto Rs. 50 crores : Scheduled Commercial Banks
Upto Rs. 200 crores : Exim Bank
Above Rs. 200 crores : Working Group

SERVICES BIDS / CONTRACTS :

On Cash Terms :

Upto Rs. 5 crores : Scheduled Commercial Banks

Upto Rs. 10 crores : Exim Bank
Above Rs. 10 crores : Working Group

On Deferred Payment Terms :

For any amount : Working Group

 FUNDED: Lines Of Credit

General Guidelines on Exim Lines of credit:

Introduction:

Exim Bank extends lines of credit to overseas governments/agencies nominated by them or

financial institutions overseas to enable buyers in those countries to import
capital/engineering goods, industrial manufactures and related services from India on
deferred payment terms. This facility enables importers in those countries to import from
India on deferred credit terms as per the terms and conditions already negotiated between
Exim Bank and the overseas agency. The Indian exporters can obtain payment of eligible
value from Exim Bank against negotiation of shipping documents, without recourse to
them.

Features

The lines of credit are denominated in convertible foreign currencies or Indian Rupees
and extended to sovereign governments/agencies nominated by them or financial
institutions. Such governments/agencies/institutions are the borrowers and Exim Bank the
lender. Terms and conditions of different lines of credit are varying and details in respect
of each line of credit can be obtained from Exim Bank. It would need to be ascertained
from time to time that the lines of credit have come into effect and uncommitted balance
is still available for utilization. Indian exporters also need to ascertain the quantum of
service fees payable to Exim Bank on account of pro rata export credit insurance
premium and / or interest rate differential cost that they can then paid up in their prices to
their importers.
How it works

 The buyer arranges to obtain allocation of funds under the credit line from the
borrower. The exporter then enters into contract with the buyer, for the eligible
items covered under the line of credit. The contracts would need to conform to the
basic terms and conditions of the respective credit lines. (Particulars of effective
lines of credit are available separately)
 The delivery period stipulated in the contracts should be such that credit can be
drawn from Exim Bank within the terminal disbursement date stipulated under the
respective line of credit agreements. Also, all contracts should provide for pre-
shipment inspection by the buyer or agent nominated by buyer.
 The buyer arranges to comply with procedural formalities as applicable in his
country and then submits the contract to the borrower for approval. The borrower
in turn forwards copies of the contract to Exim Bank for approval.
 Exim Bank advises approval of the contract to the borrower, with copy to
exporter, indicating approval number, eligible contract value, last date for
disbursement, and other conditions subject to which approval is granted.
 The Buyer, on advice from the borrower, establishes an irrevocable sight letter of
credit(L/C). A single L/C is to be opened, covering the full eligible value of the
contract including, freight and/or insurance as laid down in the contract.
 The letter of credit is advised through a bank in India designated by Exim Bank.
  Exporter ships the goods covered under the contract and presents documents for
negotiation to the designated bank. The Bank forwards negotiated documents to
the buyer.
 On receipt of clean non-negotiable set of shipment documents along with the
relative invoices, inspection certificate and a certificate that documents negotiated
are as per terms of L/C and without reserve from the negotiating bank and after
having satisfied itself, that all formalities have been complied with in conformity
with the terms of the Credit Agreement, Exim Bank reimburses the eligible value
of shipment in equivalent rupees at spot exchange rate to the negotiating bank for
payment to the exporter.
 Exim Bank debits the borrower's account and arranges to collect interest and
principal receivable on due dates as per the terms of the line of credit agreement
between Exim Bank and the borrower.

It may be noted:

 Any bank charges, commission expenses payable in India as also pro- rata export
credit insurance premium and / or interest rate differential cost, as may be
applicable shall be to the account of the exporter. The exporter is advised to
ascertain from EXIM Bank the amount service fee payable by the exporter, before
entering into commercial contract with the overseas buyer.
 Exim Bank will not be liable to pay interest for the period between dates of
negotiation and actual reimbursement from EXIM Bank.

A Variety of LINE OF CREDIT Programmes

1. Particulars of the Line of Credit to Seychelles Marketing Board(SMB), Seychelles.

2. Particulars of the Line of Credit to Vneshtorgbank (Bank For Foreign Trade),

Russian Federation.
 3. Particulars of the Line of Credit to Banco de Comercio Exterior de Colombia
S.A.

4. Confirmation Of Letters Of Credit(L/C) By Exim Bank Under The Trade

Facilitation Programme Of The European Bank For Reconstruction And
Development (EBRD).

5. Technology Upgradation Fund Scheme for Textile and Jute Industries.

 SUPPLIER'S CREDIT:

Supplier's Credit for deferred payment exports

What is on offer?

Exim Bank offers Supplier's Credit in Rupees or in Foreign Currency at post-shipment

stage to finance export of eligible goods and services on deferred payment terms. An
illustrative list of eligible goods is at Annexure. Supplier's Credit is available both for
supply contracts as well as project exports; the latter includes construction, turnkey or
consultancy contracts undertaken overseas.

Who can seek finance?

Exporters can seek Supplier's Credit in Rupees/ Foreign Currency from Exim Bank in
respect of export contracts on deferred payment terms irrespective of value of export
contracts.
What are the general terms of Supplier's Credit?

a. Extent of Supplier's Credit- 100% of post-shipment credit extended by exporter to

overseas buyer.

b. Currency of Credit- Supplier's Credit from Exim Bank is available in Indian

Rupees or in Foreign Currency.

c. Rate of Interest- The rate of interest for Supplier's Credit in Rupees is a fixed
rate and is available on request. Supplier's Credit in Foreign Currency is offered
by Exim Bank on a floating rate basis at a margin over LIBOR dependent upon
cost of funds.

d. Security- Adequate security by way of acceptable letter of credit and/or

guarantee from a bank in the country of import or any third country is necessary,
as per RBI guidelines.

e. Period of Credit and Repayment- Period of credit is determined for each

proposal having regard to the value of contract, nature of goods covered, security,
competition. Repayment period for Supplier's Credit facility is fixed coinciding
with the repayment of post-shipment credit extended by Indian exporter to
overseas buyer. However, the Indian exporter will repay the credit to Exim Bank
as per agreed repayment schedule, irrespective of whether or not the overseas
buyer has paid the Indian exporter.