Pabitha Project Report

A STUDY ON EXPORT DOCUMENTATION AND NEGOTITATION WITH SPECIAL REFERENCE TO ASHOK LEYLAND Submitted by M.PABITHA REG.
NO: 12109631009
A project report Submitted to the Faculty of Business Administration in partial fulfillment of the requirement for the Award of degree of MASTER OF BUSINESS ADMINISTRATION In FINANCE
Under the Guidance of Mr.S.SENTHILKUMAR, MBA. M.PHIL., Department of Management Studies,
SRI VENKATESWARA INSTITUTE OF SCIENCE & TECHNOLOGY KOLUNDHALUR
ANNA UNIVERSITY CHENNAI-600025 JUNE 2011
E E T
TE
This is to certify that, this project titled A ST AND NE OT TAT ON WIT
ON E
ORT DOCUMENTAT ON
SPECIAL RE ERENCE TO ASHOK LE LAND
Is the bonafide work of Ms.M.PABITHA, RE .NO: 12196031009 who carried out the research under the supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report dissertation on the basis of which A degree or award was conferred on an earlier occasion on this or any other candidate.
SIGANTURE OF THE HOD
SIGNATURE OF THE GUIDE
N.SUGUNDAN ,B.TECH,MBA.,
S.SENTHILKUMAR,MBA.,M.PHIL.,
Submi
for the project viva-voce exami ation hel on_______________
INTERNAL E AMINER
E TERNAL E AMINER
DECLARATION
I Ms.M.PABITHA, M.B.A., Student of Sri Venkateswara Institute of Science and Technology, Kolundhalur, Thiruvallur. Would like to declare that the project titled A
STUDY ON E PORT DOCUMENTATION AND NEGOTITATION WITH SPECIAL REFERENCE TO ASHOK LEYLAND, in partial fulfillment of the award of the Degree of
Master of Business Administration course under Anna University is original project done independently by me under the guidance of Mr.S.SENTHILKUMAR, Lecturer in Department of Business Administration, Sri Venkateswara Institute of Science and Technology, Kolundhalur, Thiruvallur.
Place: Kolundhalur Date:
Signature of the Candidate
ACKNOWLEDGEMENT I am thankful to the Educational Institution which has imparted me sufficient knowledge and confidence to complete this project in the field of Institutional Training.
My sincere thanks to our Honorable Chairman Thiru.N.VENKATESAN, M.A., B.SC., B.E ., for his sincere endeavor in educating me in his premier institution.
I would express my deep gratitude to our Director Thiru.V.ANANDKUMARM.E.,P.hd., for providing me necessary facilities for the completion of the project.
I am very much thankful to our Principal Prof. K.THANGAVELU.B.E., M.E., who helped me in completing the project. I also thank Head of the Department of management studies for his Makes Easy Guidance and support in completing this project successfully.
My sincere thanks to Internal Guide Mr.S.SENTHILKUMAR.,MBA.,M.phil., for his valuable guidance ideas and encouragement for the successful completion of the project work.
My sincere thanks to External Guide Mr.SEETHARAMAN GM-Export financ. For his valuable guidance ideas and encouragement for the successful completion of the project work.
Finally, I wish to express my sincere thanks to my Family Members and all my well wishers for their constant encouragement and co-operation during the course of the study.
Place: Kolundhalur Date:
M.PABITHA
TABLE OF CONTENTS S.NO Chapter -1 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Need for the study Scope of the study Objectives of the study Research methodology Limitation of the study 2 5 6 7 8 13 INDE PAGE NO
Chapter - 2 2.1 2.2 2.3
Theoretical anal sis Company profile Product profile Review of literature
14 15 28 33
Chapter 3
Data anal sis & interpretation
45
Chapter - 4 4.1 4.2 4.3 Findings Suggestions Conclusion Bibliography Annexure 78 79 80 81 82
LIST OF TABLES
S.NO
TITLE
PAGE NO
3.1.1
Comparison between the overall sales and export sales
36
3.1.2
Comparison between the export sales of vehicles and spare parts
38
3.1.3
Comparison between overall sales volume and export sales volume
40
3.1.4
Trend analysis for the export sales volume
42
3.1.5
Comparison between the overall debtors and export debtors
44
3.1.6
Debtors turnover ratio of overall sales and export sale
46
3.1.7
Average collection period of overall debtors and export debtors
48
3.1.8
Comparison between export debtors and profit (pat)
50
3.1.9 3.1.10 3.1.11
Comparison between export incentives and profit (pat) Comparitive study of yearly total incentives Comparitive study of grand total of 3 incentive schemes
52 54 76
LIST OF CHARTS
S.NO TITLES PAGE NO
3.1.1
Comparison between the overall sales and export sales
36
3.1.2
Comparison between the export sales of vehicles and spare parts
38
3.1.3
Comparison between overall sales volume and export sales volume
40
3.1.4
Trend analysis for the export sales volume
42
3.1.5
Comparison between the overall debtors and export debtors
44
3.1.6 3.1.7
Debtors turnover ratio of overall sales and export sale
46 48
Average collection period of overall debtors and export debtors
3.1.8
Comparison between export debtors and profit (pat)
50
3.1.9
Comparison between export incentives and profit (pat)
52
3.1.10
Comparitive study of yearly total incentives
54
3.1.11
Comparitive study of grand total of 3 incentive schemes
77
ABSTRACT
The export scenario in India has undergone a tremendous change in the last two decades, especially after liberalization. Exporting a product is a profitable method that helps to expand the business and also reduce the dependence on the local market. It also provides a valuable insight into new ideas, management practices, marketing techniques and state of the art technology available globally. Export is not only profitable for the individual exporter but also it is a means of earning foreign exchange; thereby improving the economic condition of the country. It plays a crucial part in maintaining a healthy balance of trade. Success or failure of any export order mainly depends upon the finance available to execute the order. Nowadays export finance is gaining great significance in the field of international finance. Even Government is taking measures to help the exporters to execute their export orders without any hassles. These incentives aim at helping even the small exporters to perform well in international market. Many nationalized as well as private banks are taking measures to help the exporters by providing them pre-shipment and post-shipment finance at subsidized rate of interest. Some of the major financial institutions are EXIM bank, RBI and other financial institutions and banks. This project is to study the various aspects of export finance related to claiming export incentives by the firm Ashok Leyland. The different incentives claimed by them and the documentation required to avail the credits were studied in detail. Due to limited access to information the post-shipment incentives claimed by Ashok Leyland alone were studied.
CHAPTER - 1
1.1 INTRODUCTION
Exports are a vehicle for growth and development of any organisation. They help not only in importing latest machinery, equipment and technology duty-free but also the goods and services, which are not available indigenously. Exports indicate national self-reliance and advancement of technology in India. Government of India, from time to time, announces various incentive schemes to boost exports. In order to export, the organisation should register themselves with concerned authorities which facilitates in getting the incentive benefits.
REGISTRATION:
Any exporter who wants to export his goods need to obtain PAN based Business Identification Number (BIN) from the Directorate General of Foreign Trade (DGFT) prior to filling of shipping bill for clearance of export goods. The exporters must also register themselves to the authorised foreign exchange dealer code and open a current account in the designated bank for credit of any drawback incentive. All the exporters intending to export under the export promotion scheme need to get their licenses/DEEC book etc.
CUSTOMER E AMINATION OF E PORT CARGO:

Customs Officer may verify the quantity of the goods actually received and enter into the system and thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock Appraiser of the Dock who may assign a Customs Officer for the examination and intimate the officers name and the packages to be examined, if any, on the check list and return it to the exporter or his agent.
E PORT FINANCE:
Credit and finance is the life and blood of any business whether domestic or international. It is more important in the case of export transactions due to the prevalence of novel non price comparative techniques encountered by exporters in various nations to enlarge their share of world markets. The selling techniques are no longer confined to mere quality, price or delivery schedules of the products but are extended to payment terms offered by exporters. Liberal payment terms usually score over the competitors not only of capital equipment but also of consumer goods. The payment terms however depend upon the availability of finance to exporters in relation to its quantum, cost and the period at pre-shipment and post-shipment stage. Production and manufacturing for substantial supplies for exports take time, in case finance is not available to exporter for production.
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They will not be in a position to book large export order if they dont have sufficient financial funds. Even merchandise exporters require finance for obtaining products from their suppliers.
TYPES OF E PORT FINANCE:

The export finance is being classified into two types namely 1. Pre-shipment finance and 2. Post-shipment finance
PRE-SHIPMENT FINANCE:
Financial assistance extended to the exporter from the date of receipt of the export order till the date of shipment is known as pre-shipment credit. Such finance is extended to an exporter for the purpose of procuring raw materials, processing, transporting, packing, warehousing of goods meant for exports.
IMPORTANCE OF FINANCE AT PRE-SHIPMENT STAGE:

To purchase raw material, and other inputs to manufacture goods. To assemble the goods in the case of merchant exporters To store the goods in suitable warehouses till the goods are shipped. To pay for packing, marking and labelling of goods. To pay for pre-shipment inspection charges. To import or purchase from the domestic market heavy machinery and other capital goods to produce export goods. To pay for consultancy services. To pay for export documentation expenses.
POST- SHIPMENT FINANCE :

Credit facility extended to an exporter from the date of shipment of goods till the realization of the export proceeds is called Post-Shipment Credit. Post-Shipment finance is provided to meet working capital requirements after the actual shipment of goods. It bridges the financial gap between the date of shipment and actual receipt of payment from overseas buyer thereof.
IMPORTANCE OF FINANCE AT POST-SHIPMENT STAGE:

To pay to agents/distributors and others for their services. To pay for publicity and advertising in the overseas markets. To pay for publicity and advertising in the overseas markets. To pay for port authorities, customs and shipping agents charges. To pay towards export duty or tax, if any.
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To pay towards ECGC premium. To pay for freight and other shipping expenses. To pay towards marine insurance premium. To meet expenses in respect of after sale service. To pay towards such expenses regarding participation in exhibitions and trade fairs in India and abroad. To pay for representatives abroad in connection with their stay abroad.
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1.2 NEED OF THE STUDY
The need of the study is to make an in-depth study on the documentation and negotiation function of the export finance department. The study also helps to have a comparative analysis on the overall sales and export sales of each year of Ashok Leyland. The study also helps to know more about various procedures and activities of the export finance department. It also help us to know about the importance of documentation and its scruitinization in the scenario of exporting in Ashok Leyland. The export documentation involves the preparation of the specified number of copies of the prescribed documents pertaining to different procedures. Recently different forms used in the export documentation have been standardized and aligned
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1.3 SCOPE OF THE STUDY
The focus of the study was the formulation the multifunction procedure of an export unit Ashok Leyland .The focus of the study was on identifying the activities of different Divisions and departments of ashok Leyland having an impact on the export procedure of This sunit. Focus was to outline the standard modes of payment for export houses.
Researcher analyzed the pre-export formalities and necessities for exportation. The project is an attempt to formulate the how to export concept finally to contribute to national and international economy & business relationship.
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1.4 OB ECTIVES OF THE STUDY
PRIMARY OB ECTIVE:
The Primary Objective is to make a deep study on the documentation and negotiation function of the export finance department.
SECONDARY OB ECTIVES:
The Secondary Objectives are: To have an insight on various areas of export finance like incentives, drawback etc and to have a comparative analysis on the overall sales and export sales of Ashok Leyland.
To know about the export-import process. To study about the receivable management of export finance.
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1.5 RESEARCH METHODOLOGY
Meaning of Research
Research in common refers to the search for knowledge. One can define research as a scientific and systematic search for information on a specific topic. Research is an art of scientific investigation . Research is in-depth study about a particular problem. Research is a process of systematic study. Research is a search of knowledge. Research is a movement from known to unknown. Research is an area of investigation, which includes collection ,analysis and interpretation of data. Research can be called as voyage of discovery. Research has to proceed in the already planned direction with the help of number of step in sequence. To make the research systematized the research had to adopt certain methods. The methods adopted by the researcher for completing the project are called research methodology. In other words research methodology is simply the plan of action for a research, which explains in detail how is to be collected, analysed and interpreted.
Definition of Research
According to Clifford Woody, Research is defining and redefining problems, formulating hypothesis, collecting , organizing, evaluating and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. According to D. Slesinger and M. Stephenson in the encyclopedia of social sciences define research as The manipulation of things, concepts or symbols for the purpose of generating to extend, correct of verify knowledge aids in construction of theory or in practice of an art.
3.1.1 Research Design

It is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the framework or plan or blueprint based on which the researcher is collecting data, analyzing data and providing solution to
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the problem. Research design stands for advance planning of methods to be adopted for collecting the relevant data and the techniques to be used in their analysis, keeping in view their objective of the research and the availability of time and money.
T pes of research design Explanatory research study: The main purpose of such studies is that of formulating a
problem for more precise investigation or of developing the working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights.
Hypothesis testing research study: These are those studies where the researcher tests the
hypothesis of casual relationship between variables. Such studies require procedures that will reduce bias and increase relisability.
3.1.2 Type of data Secondary data: These are the datas that are already available, ie, they refer to the data which have
already been collected and analyzed by someone else.
Secondary data sources

Various publications of the central, state and local governments. Various publications of international bodies and their subsidiary organizations. Technical and trade journals. Books, magazines and newspaper. Reports and publications of various associations connected with business and industry, banks and stock exchanges. Annual reports, public records and historical documents.
3.1.3 Statistical tools Cor-relation (proposed by Karl Pearson)

It is the actual magnitude of cov (x, y). The covariance gives the measure of how x and y tend to vary together.
Definition
Let x and y be two variables. The cor-relation coefficient, denoted by
xy= cov(x,y) x y
if ( x)0 , s( y)0.
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Note: If x and y are independent, cov (x,y)=0 and hence =0, The reverse is not true.
If =0 , x and y are uncorrelated and they need not be independent.
3.1.3 Financial tools Debtor turnover ratio Meaning of receivables

According to OM Joy, the term receivables is defined as debt owned to the firm by customers arising from the sale of goods and services in the ordinary course of business. In short receivables are the debts owned to the company. Receivables are also known as accounts receivables or trade receivables or customer receivables or book debts. They are the assets created out of credit sales. Receivables ar e mathematically defined as follows: Receivables= Debtors +Bills Receivables
Meaning of Receivables Management

Receivables management simply refers to management of receivables. It refers to planning and control of receivables of a firm. It is the process of making decisions relating to investment in trade debtors.
Objectives of Receivables Management

To increase sales. To increase profitability. To increase market share of product. To increase customer base.
Debtors Turnover ratio

The analysis of the size of the investment in receivables is done with the help of ratios Debtors turnover ratio indicates the speed with which cash is collected from debtors or receivables.
Debtors turnover ratio=
Total Credit Sales Average Receivables
OR
Total Credit Sales Debtors
Average Receivables=
Opening Receivables + Closing Receivables 2
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Average Collection Period

This ratio indicates the period for which debtors or receivables are outstanding. Average collection period Receivables (365) Total Credit Sales OR 365 Debtors Turnover Ratio
Methods of research study for subject project

The research for the subject project has been carried out, based on the data gathered at Ashok Leland Ltd. For the last 5 years in the area of export finance.
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1.6 LIMITATIONS OF THE STUDY
Time value of money is not taken into account Importance is given only to documentation. The study is based only upon the secondary data. The study confines itself to the information available in the audited records only. Due to the time factor, the study is limited to a period of 5 years. The financial analysis is based on the information available in the financial statements. The export performance analysis is based on the past internal audited reports which have their own limitations. Critical analysis is not possible because of the non availability of the information.
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CHAPTER - 2
21
2.1COMPANY PROFILE
History: About Ashok Leyland:
In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The Company's destiny and name changed soon with equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955.Access to international technology enabled the Company to set a tradition to be first with technology. Be it full air brakes, power steering or rear engine busses, Ashok Leyland Ltd. pioneered all these concepts. Responding to the operating conditions and practices in the country, the Company made its vehicles strong, over-engineering them with extra metallic muscles. The Hinduja Group employs over 25,000 people and has offices in many key cities of the world and a ll the major cities in India. Ashok Leyland Ltd. vehicles have built a reputation for reliability and ruggedness. The 5,00,000 vehicles we have put on the roads have considerably eased the additional pressure placed on road transportation in independent In dia. The blueprint prepared for the future reflected the global ambitions of the company, captured in four words: Global Standards, Global Markets. Ashok Leyland Ltd. embarked on a major product and process up gradation to match world class standards of technology. Eight out of ten metro state transport buses in India are from Ashok Leyland Ltd. With over 60 million passengers a day, Ashok Leyland buses carry more people than the entire Indian rail network! Ashok Leyland, the flagship of the Hinduja Group, a British-based and Indian originated transnational conglomerate is a commercial vehicle manufacturing company based in Chennai, India. Founded in 1948, the company is one of the Indias leading manufacturers of commercial vehicles, as well as emergency and military vehicles. Operating seven plants, Ashok Leyland also makes spare parts and engines for industrial and marine applicationas. It is the second largest commercial vehicle company in India in the medium and heavy commercial vehicle (M&HCV) segment with a market share of 28% in 2008-09. With passenger transportation options ranging from 18 seaters to 82 seaters, Ashok Leyland is a market leader in the bus segment. The company claims to carry over 60 million passengers a day, more people than the enti e Indian rail r network. In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks. However Ashok Leyland has presence in the entire truck range starting from 7.5 tons to 49 tons. Against the backdrop of increase in demand for commercial vehicles, the company registered sales of 57139, 21% more than the previous year. This includes 16405 buses and 40734 trucks, 2% and 31% respectively more than the previous year. The company lost 2.4% points market share in the Indian
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medium and heavy commercial vehicle market during the financial year 2009-10, mainly due to loss in share of the bus segment. The total industry volumes registered in 2008-09 and 2009-10 are provided below:
TYPE OF VEHICLE
M & HCV LCV TOTAL CV
2008-09
183495 200699 384194
2009-10
245058 286337 531395
CHANGE IN %
34 43 38
MANAGEMENT TEAM:
The management team at Ashok Leyland includes: Mr Vinod K Dasari Mr J N Amrolia Mr Anup Bhat Mr A R Chandrasekharan Mr A K Jain Mr R R G Menon Mr Rajive Saharia Mr K Sridharan
VISION:
Achieving leadership in the medium / heavy duty segments of the domestic commercial vehicle market and a significant presence in the world market through transport solutions that best anticipate customer needs with the highest value to cost-ratio.
MISSION:
To be a leader in the business of commercial vehicles excelling in technology quality and value to the customers fully supported by customer service of the high order and meeting national and international environment and safety standards.
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OB ECTIVES OF ASHOK LEYLAND:

To identify the customer. Being the lowest cost manufacturer. Global bench-marking of our products, processes and people against the best in the industry.
Quality policy
Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business, through the products and services offered by the company and comply with statutory requirements. Towards this, the quality policy of Ashok Leyland is to make continual improvements in the processes that constitute the quality management system, to make them more robust and to enhance their effectiveness and efficiency in achieving stated objectives.
Quality objectives
Superior products manufactured and also services offered by the company. Maximum use of employees potential to contribute to quality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions. Seamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment.
VALUES:
The values of Ashok Leyland are: International Speedy Value creator Innovative Ethical
Global standards in quality:

The blueprint prepared for the future reflected the global ambitions of the company, captured in four words: Global Standards, Global Markets. Ashok Leyland reached a major milestone in 1993 when
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it became the first in Indias automobile history to win the ISO 9002 certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing units in 2002. In 2006, Ashok Leyland became the first automobile company in India to receive the TS 16949 Corporate Certification. Over the years, Ashok Leyland vehicles have built a reputation for reliability and ruggedness. This was mainly due to the product design legacy carried over from British Leyland. Through tie-ups with global technology leaders, supplemented by in-house R&D infrastructure and capabilities, Ashok Leyland has maintained its technological leadership even as it offers the most comprehensive range of model configuration in its class.
MANUFACTURING PLANTS:
Ashok Leyland has seven manufacturing plants the mother plants at Ennore near Chennai, three plants at Hosur ( called Hosur 1 and Hosur 2, along with a press shop ) Tamil Nadu, the assembly plants at Alwar Rajasthan, Bhandara Maharastra and state-of-the art facility at Pantnagar Uttarakhand. The total covered space at these seven plants exceeds 650,000 sqm and together employ over 11,500 personnel. Ennore: Spread over 135 acres, Ashok Leyland Ennore is a highly integrated Mother Plant accounting for over 40% ALL production. The plant manufactures a wide range of vehicles and house production facilities for important aggregates such as Engines, Gear Box, Axles and other key in-house components. Hosur-unit 1: Established in 1980, Hosur-I is the engine-manufacturing center within the Ashok Leyland production system. Apart from producing various types of diesel engines (including the engines manufactured under license from Hino of Japan) and CNG engines, the plant also manufactures and assembles heavy duty and special vehicles, Axles, AGBs, Marine Gear Box, etc. The facility is spread over 103 acres and is innovatively laid out, optimising the use of all resources. Hosur unit-2 Ashok Leyland established this state-of-the-art production facility in 1994 at Hosur. Spread over 236 acres, Hosur II houses finishing and assembly facilities including sophisticated painting facilities. The complex also houses one of the largest press facilities in India for pressing frame side members. Laid
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out with an eye for the future, Hosur II has won acclaim from several automotive experts who have visited the facility. Hosur unit-2A Ashok Leylands brand new Cab Panel Press Shop is an imposing addition to the industrial skyline of Hosur. At 800 m above sea level, it is also the tallest in the Hosur industrial belt. This state-of-the-art facility is housed in a 99-acre expanse with a built up area of over 15,000 sq.m. The Shop is equipped to stamp select panels for Cargo cab, G-45 and C-45 FES - totally, 55 panels and their variants. Right now it houses eight presses and has the provision to accommodate four more. The versatility of the presses can be utilised for making panels of complex shapes and profiles with appropriate tooling and dies. In addition to catering to our present needs, the Press Shop can take up additional panels of new / current models. Right at the design stage, a rainwater harvesting facility was integrated into the Shop. A 60,000-sqm lawn and the 2,500 saplings planted recently in the premises will give the Shop a cool, green cover. Built with an investment of Rs 1350 million, the Shop is designed and developed to be a state-of-the-art facility. The 210m long Press Shop consists of two bays with a 36m span in each bay. The 24m high Press bay has an underground tunnel, 7.1m deep and 90m long, to handle the end bits generated during the process of panel pressing. The other bay is 17m high. Alwar: Established in 1982, the Alwar Unit in Rajasthan is an assembly plant for a wide range of vehicles with an emphasis on passenger chassis, including CNG buses, situated close to the northern market. Bhandara: Ashok Leyland's Bhandara Unit houses manufacturing and assembly facilities for sophisticated synchromesh transmission and also has facilities for assembly of vehicles. Pantnagar: Set over 190 scenic acres, the Pantnagar plant of Ashok Leyland is also its largest and one of the most integrated manufacturing facilities in Indian commercial vehicle industry. On 200,000 sq.ms of built up area, it houses best in class industrial architecture combined with the latest manufacturing technologies that is also ecology sensitive as reflected in the selection of machinery and processes. Highly energy efficient, the plant is designed to be remarkably operator friendly. The shop floors receive the maximum natural light and ventilation while the insulated high roof reduces the inside temperature by Designed on lean manufacture principles, process control for high quality of output and flexibility to manage variety with quick changeovers are built into the machine and process selection. The factory boasts of latest generation equipment sourced from global leaders in Japan, USA, Europe and India.
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The facilities have been so designed as to accommodate further expansion in terms of capacity and future models. At full capacity utilization, 75,000 vehicles will roll out of the Pantnagar plant.
ASSOCIATE COMPANIES: Automotive coaches and components ltd (ACCL):

ACCL was promoted by Ashok Leyland and the Tamil Nadu Industrial Development Corporation (TIDCO) in the 1980's. It has two Divisions:
PL Haul el Trailers (PLHT)(A Division of ACCL)

PL Haulwel Trailers Limited (PLHT) manufactures a wide variety of after-chassis products
Lanka Ashok Leyland:

Established in 1982, this is a joint venture between Ashok Leyland and the Government of Sri Lanka. Equity holding of Ashok Leyland Ltd. in the joint venture is 28%. Ashok Leyland supplies chassis in both completely built-up and knocked down conditions to Lanka Ashok Leyland, which in turn assembles the chassis and builds bodies, as the case may be, and sells them in the local market. The factory is situated at Panagoda, about 40 Kms from Colombo. This company is fully managed by Sri Lankan professionals. Lanka Ashok Leyland has also established a fully owned subsidiary called Lanka Ashok Leyland Services, which takes care of marketing and after-sales service including sale of spares.
IRIZAR TVS:
Started in 2001, IRIZAR-TVS is a joint venture between Ashok Leyland, TVS & Sons Ltd and IRIZAR, the internationally reputed bus body builder from Spain. This joint venture addresses the growing demand for luxury coaches in the country. As a preferred supplier to Ashok Leyland, IRIZAR-TVS provides a platform for Ashok Leyland to introduce new bus body concepts and designs even as it heralds the pioneering concept of fully built buses of international luxury standards from an Indian vehicle manufacturer. The company will be shortly launching the InterCentury Bus based on AL passenger chassis.
Hinduja foundaries:
Established in 1959, Ennore Foundries is India's largest automotive jobbing foundry with production capacity of 45,000 MT in Grey Iron and 3000 MT in aluminum gravity die castings per annum. Certified to ISO - 9001 and QS 9000 Quality systems. Ennore Foundries is also largest manufacturers of Cylinder Block and Cylinder head castings in India catering to different segment like automobiles, tractors, industrial engines and power generators, product ranging from 10 kg to 300 kg in Grey Iron casting and up to 16.5. kg in Aluminum gravity die casting. Capability to adapt to emerging trends and absorb new technologies, competent
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engineering skills and expertise, a strong metallurgy base, uncompromising quality consciousness and dedicated team work have all contributed to create a sound and solid base for Ennore Foundries in the foundry industry. With these systems in credit, Ennore Foundries is always ahead of customer needs.
Ashok Leyland Project Services Limited:

Ashok Leyland Project Services Limited (ALPS), spearheads the project development activities of the Hinduja Group in India. Apart from assisting the investment entities of the Group identify and implement successfully projects in India, ALPS also provides professional services to help international companies interested in projects in India. Through its pool of multi-sector professionals (in areas such as power, telecommunications and surface transport infrastructure), ALPS adds the Indian element to the multinational company or consortium. This company provides specialised services for undertaking pre-investment, project development which includes feasibility studies, appraisals, development of joint ventures, company formation and other professional services that are designated to deliver project opportunities from concept to commissioning. ALPS provides related services on request for specialised inputs to assist in the profitable and economic implementation of projects in close co-operation with promoters and designated shareholders. In certain cases, the Company provides negotiated equity on behalf of the Ashok Leyland/Hinduja Group as commitment to the sustained results of its services. The Company has developed projects at various stages of implementation relating to power generation, airport construction, and transportation including air cargo transportation, development of roads, airports and associated infrastructure. Through its multi-sector industry knowledge - both in the Indian and international context - ALPS plays a significant role in providing ideas and suggestions, that are based on internationally accepted and proven practices and systems, towards the formulation of reforms and policies in various industry sectors in India.
Clients
Indian Army. US Army Honduras Armed Forces (HAF). Tamil Nadu State Transport Corporation (TNSTC). Metropolitan Transport Corporation (MTC), Chennai. State Express Transport Corporation (SETC), Tamil Nadu. Kerala State Road Transport Corporation. Maharashtra State Road Transport Corporation (MSRTC). Andhra Pradesh State Road Transport Corporation (APSRTC).
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Parveen travels. Sharma travels.
JOINT VENTURES:
NISSAN MOTOR COMPANY: A Joint Venture to develop, manufacture and co operate for the manufacture and distribution of Light Commercial Vehicle under both the Ashok Leyland and Nissan brands. The Joint Venture has three separate companies with different share-holding structures: A vehicle manufacturing company in which the shareholding is Ashok Leyland: 51% and Nissan: 49% A power train manufacturing company in which Nissan has 51% and Ashok Leyland 49% A technology development company which is owned 50 : 50 by both partners. JOHN DEERE & COMPANY: A 50 : 50 Joint Venture to manufacture and market construction equipment under both the Ashok Leyland and John Deere brands. The JV will commence production by 2010 and will initially roll out Backholes and Four-wheel-drive Loaders. AUTOMOTIVE INFOTRONICS: A 50 : 50 Joint Venture set up to design , develop and adapt infotronics products and services for automotive customers and will cater to the requirements of Ashok Leyland and available opportunities with other vehicle manufactures in India and overseas. ASHLEY ALTEAMS: A 50 : 50 Joint Venture to produce High Pressure Die Casting (HPDC) aluminium components pre-dominantly for telecommunications & automotive sectors
CURRENT STATUS:
Ashok Leyland is the second technology leader in the commercial vehicles sector of India behind Tata Motors. It was the first to introduce multi-axled trucks, full air brakes and a host of innovations like the rear engine and articulated buses in India. The company has also maintained its profitable track record for 60 years. The annual turnover of the company was US$1.4 billion in 200809. Selling 54431 medium and heavy vehicles in 2008-09, Ashok Leyland is Indias largest exporter of
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medium and heavy duty trucks. It is also one of the largest private sector employers in India with about 11500 employees working in 7 factories and offices spread over the length and breadth of India. The company has increased its rated capacity to 105000 vehicles per annum. The recent investments include putting up two new plants one in Uttarkhand in North India and a bus body building unit in middle-east Asia. It already has a sizable presence in African countries like Nigeria, Ghana, Egypt and South Africa. The company is always very keen in expanding its presence globally and venturing into new markets. As part of this global strategy, the company acquired Czech Republic -based Avias truck business. The newly acquired company has been named Avia Ashok Leyland Motors. This gives Ashok Leyland a foothold in the highly competitive European truck market. The Hinduja Group also brought out IVECOs indirect stake in Ashok Leyland in 2007. The promoter shareholding now stands at 51%.
CORPORATE PHILOSOPHY:
Ashok Leyland strongly believes that the unstinting support of their customers is earned by giving their customers the most appropriate transport solutions for each of their applications, and by backing them up with consultancy, finance, driver training and a responsive after-market network. They are conscious of the fact that vehicles are more than just a means of transporting people and goods; they understand that the vehicles have a deep and far-reaching impact on society, the national economy and the environment. They have, therefore, always endeavoured to engineer products and systems that promote progress on all these fronts. They firmly believe that this honest approach will make the Ashok Leyland marquee the symbol of the very best in transportation, today and tomorrow which reminds their slogan Engineering Tomorrows
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Authority flow of Ashok Leyland Ltd.
Finance department
MANAGING DIRECTOR
CHIEF FINANACING OFFICER
GM FINANCE
DGM FINANCE
AGM FINANCE
DIVISIONAL MANAGER
SENIOR MANAGER
MANAGER
DEPUTY MANAGER ASST. MANAGER
SENIOR MANAGER
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Marketing performance Milestones

y y y y y y y y y y y y y y
1966 - Introduced full air brakes 1967 - Launched double-decker bus 1968 - Offered power steering in commercial vehicles 1979 - Introduced multi-axle trucks 1980 - Introduced the international concept of integral bus with air suspension 1982 - Introduced vestibule bus 1992 - Won self-certification status for defense supplies 1993 - Received ISO 9002 1997 - India's first CNG powered bus joined the BEST fleet 2001 - Received ISO 14001 certification for all manufacturing units 2002 - Launched hybrid electric vehicle 2003 - E-Comet launched. 2004 50000 mark vehicles produced. 2006 ISO/TS 16949 Corporate certification.
HR performance Functions of HR department

y y y y y
Recruitment & Selection Training and development & Organization development Performance appraisal & Incentives and benefits Creating motivation environment Empowerment and participation & HR mobility
ACHIEVEMENTS:
Ashok Leyland has a near of 85% market share in the marine diesel engines markets in India. In 2002, all the vehicle-manufacturing units of Ashok Leyland were ISO 14001 certified for their Environmental Management System First time in Indian commercial vehicle industry.
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In 2005, Ashok Leyland has received the world-renowned BS7799 Certification for its Information Security Management System (ISMS) first time for an auto manufacturer in India. In 2006, Ashok Leyland received the coveted ISO/TS 16949 Corporate Certification first in Indian auto industry. It is one of the leading suppliers of defense vehicles in the world and also the leading supplier of logistics vehicles to the Indian Army.
Ashok leyland has several milestone in its name: YEAR 1966 1967 1968 1979 1992 1997 MILESTONE Full Air Brakes introduced Double Decker Buses introduced Power Steering introduced in commercial vehicle Multi- Axled trucks introduced Vestibuled Buses introduced Indians first CNG powered bus joins the BEST fleet 2002 Hybrid Electric Vehicle developed
E PORTS:
Ashok Leyland started exporting vehicles in the year 1974. So far they have exported a total of 60,000 vehicles. A recognized export house since 1978 and a trading house since 1992, Ashok Leyland exports to over 40 countries. They involve in both physical exports, ie., export of goods outside the country and realization in foreign exchange as well as deemed exports, ie., Delivery of goods within the country for projects funded by World bank, ADB,IBRD etc. Buses:
33
Airport Tarmach coach, cheetah BS-II, cheetah BS-III, Double Decker, Lynx BS-II, Panther BS-II, stag BS-II, Vestibule Bus, Viking Bus, Viking BS- II, Viking BS- III, Viking CNG BS-III, Viking SLF BS-III, 12-M Bus II, 12 M Bus. Defence vehicles: YAK 4 x 4, light Recovery vehicle 4 x 4, Stallion 4 x 4 Mk III, Field Artillery Tractor 6 x 6, stallion 4 x 4 Mk IV, stallion 4 x 4 5KL, Water Browser, Comet 4x4, Truck Fire Fighting 4x2, high mobility vehicle 6 x 6, F23 6 x 6 crash fire tender. Trucks: Bison Haulage Tusker Super 1616, Comet CO 1611, 1613 H, Comet Gold 1613, Hippo Haulage, Comet Tipper, Cargo 1614, Ashok Leyland Coal carrier, Taurus Tipper.
MAJOR COUNTRIES OF E PORTS:

Sri Lanka, Bangladesh, Nepal, Japan, Egypt, Kenya, Bhutan, Ghana, Nigeria, South Africa, Mozambique, Malawi DR Congo, Mauritius, Angola etc.,
Awards/Achievements
In the journey towards global standards of quality, Ashok Leyland reached a major milestone in 1993 when it became the first in India's automobile history to win the ISO 9002 certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing units in 2002. It has also become the first Indian auto company to receive the latest ISO/TS 16949 Corporate Certification (in July 2006) which is specific to the auto industry
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2.2 PRODUCT PROFILE

Leaders in the Indian bus market, offering unique models such as CNG, Double Decker and Vestibule bus.
Viking BS - III
Viking SLF BS-III
Viking CNG BS-III
Cheetah BS-III
Vestibule Bus - BSIII Double Decker
Airport Tarmac coach
stagbs-ii
35
Trucks
Pioneers in multi axle trucks and tractor-trailers
4 X 2 Haulage Models 4 X 2 and Multi-axle Tippers
Multi-axle Vehicles
Tractors
ecomet
36
ecomet 1012 Smart
ecomet 1012 Strong
ecomet 1212 Smart
ecomet 1212 Strong
TRACTORS
U-3518 TT
U-4023 TT
U-4923 TT
DEFENCE & SPECIAL VEHICLES:

Largest provider of logistic vehicles to the Indian army
Special Vehicles
Defence Vehicles
37
SPECIAL VEHICLES :
Rapid Intervention Vehicle 4X4 Hippo Tractor Beaver Tractor
Beaver Haulage
Hippo Haulage
Stallion Mk III Tipper
Hippo Tipper
38
Defence vehicles:
Light Recovery Vehicle 4 X4
Stallion 6X6
Stallion 4X4 Mk III
Field Artillery Tractor 6X6
F 23 6X6 Crash Fire Tender
Stallion 4X4 5 KL Water Browser
Comet 4x4
Truck Fire Fighting 4X2
Truck Fire Fighting 4X2
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Engines:
Diesel engines for Industrial, Genset and Marine applications, in collaboration with technology leaders
Dg sets for exports Diesel and Natural Gas gensets trom 15KVA - 250
Genset application Engines ranging from 15KVA to 250KVA
Marine application Engines with power rating from 58PS to 193PS
40
2.3 REVIEW OF LITERATURE

Documentation is very important because it alone can secure the swift passage of goods through the customer resulting in prompt payment of goods exported.
Export order:
The exporter is required to produce copies of order to various government departments/financial institutions e.g. obtaining export licenses when the product is covered under the restricted item or canalized items for exports, availing post shipment fianc.
Order acceptance:
Its another important commercial document prepared by the exporter confirming the acceptance order placed by the importer.
Letter of credit :( L/C)

The exporters should carefully scrutinise the contents, terms and conditions of the L/C and prepare and submit all the documents called for the by the buyer to get immediate payment of his bill drawn on the buyer from the bill negotiating bank.
Mates receipt:
Mates receipt issued by the chief of vessel after the cargo is loaded, its transferable nature and must be presented immediately at the shipping companys office to be exchanged into bill of lading.
Bill of lading:
Bill of lading is a document of title of the goods enables the consignee to dispose off the goods by endorsement and delivery of the bill of lading. Each company has its own bill of lading and as soon as the exporter obtains the mate receipt, he should prepare the bill of lading in the forms obtained from the shipping company or its agent.
Airway bill:
Its the receipt issued by the airline company for the carriage of goods under certain terms and conditions.
Post parcel receipt:

Its receipt evidences the receipt of goods for exports by the post office and it is also not treated as document of title.
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Its also known as draft. When the exporter expects the importer to make immediate payment upon the presentation of the draft, that draft is called sight draft. When the draft is drawn for payment at a date later than presentation, its called a usance bill. An exporter draws an usance draft on the buyer stipulating the period, after expiry of which the buyer must pay the amount of the draft.
Insurance policy:
Marine insurance certificate is a document which gives details of the shipment insured together with a shortened version of the provisions of open cover. The exporter should buy the policy for the of value plus ten percent to cover other expenses which the importer might have to incur in anticipation of safe arrival of the goods.
Certificate of origin:
The exporter should obtain a certificate of origin from any recognized chamber of commerce, export promotion council or government on payment of a fee.
Manufacture certificate:
Its starting that the goods exported by him are manufactured in india and the manufacture of which does not contain the raw material or the components imported into india from other country or manufactured in the third country.
Packing list/note:
It should include the date of packing, connecting invoice number ,order number, details of shipping such as the steamer ,bill of lading number and dale of sailing, case number to which the list/note relates ,details of goods such as quantity and weight and / item wise details. Normally twelve copies of packing list should be prepared. the first is to be kept inside the package , four copies to be sent with shipping documents , three copies to the buyer, two copies to the shipping agent and the remaining retained by the exporter.
Export declaration forms:

As per the exchange control regulation, exporters are required to submit declaration in the following prescribed forms to the prescribed authority before any export of goods from india is made.
GR form:-for exports to all countries made otherwise than by post. 42
PP FORM:-for exports to all countries by the parcel post .except when made on value payable or
cash on delivery basis.
FORM SDF:-To be used for declaring exports in the case of specified customs offices and specified
categories of shipping bills under EDI system.
FORM SOFTE :-to be used for declaring software exports though data communication links and
receipt of royalty on the software packages/products exported.
Certificate of inspection:
Its issued by the inspection agency concerned, certifying that the consignment has been inspected as required under the act1963 and satisfies the conditions relating to quality control and inspection as applicable to it and is certified export worthy.
Antiquity certificate:
This certificate is issued by the archaeological survey of india in the case of exports of antiques.
Certificate of measurement:
Freight can be charged either on the basis of weight or measurement. When it is charged on weight basis. The weight declared by the exporter is accepted. it contains the name of the vessel, the port of destination, description of goods ,quantity, length,breadth,depth etc.
Transshipment bill:
The transhipment permit is permission for transhipment of goods from the vessel on which the same are originally to another for export.
Shipping order:
Its issued by the shipping line intimating the exporter about the reservation of space of shipment of cargo through a particular vessel from a specified port and on a specified date.
Cart / lorry ticket:

This ticket is prepared for admittance of cargo through the port gat. This is known as gate pass. It contains shipper name, cart/lorry number, and marks on packages, quanity&description.
Dock challan / export application:

Export application is required at cochin, Mumbai and Chennai port for payment of port charges and instead of export application, docks challan is used at Kolkata port.
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Shippers declaration form:

The exporter has to submit this document to the customs authorities regarding the value, sort, specification, quantity and description of goods being exported. Declaration is usually typed in the shipping bill.
Commercial invoice:
Its a document which contains the detailed description of the goods consigned, the consigner name , the consignee name , name of the steamer , number and date of B/L ,order acceptance or contract number and date , country of origin ,marks and numbers and numbers of packages , special markings , if any , quantity shipped , selling price to the purchaser for each unit and total , terms of payment , terms of sale (FOB,C&F,CIF),amount freight and insurance if applicable ,import license number ,particular about packing , consular and customs declaration.
Consular invoice:
This certificate facilities the clearing of goods through the customer of the importing country. The exporter has to pay embassy concerned some fees for the certification of the invoice.
Customs invoice:
Its required by U.S.A., CANADA &Australia which is available with stationers who sell such documents .certificate is not involved in this type of invoice.
Shipping bill;
it is a important document required by the customs authorities for following shipment. There are
Duty free shipping bill :-this bill is not printed on white paper and used for which neither duty nor
cess is applicable.
Dutiable shipping bill :-its used for the goods subject to export duty/cess which either entitled or not
entitled for drawback and printed on yellow paper.
Drawback shipping bill :-if the export of goods is simultaneously by duty free and /or subject to export
duty/cess, this type of bill is compulsory to be used alone or along with any other bill. Its printed on the green paper.
Shipping bill for shipment E -BOND:- in case of goods imported for re-export and kept in bond , this
type of bill is used which is printed on yellow paper.
Freight declaration: 44
its to be attached to the export documents , in the importer to pay the freight. When the exporter pays the freight , he also should submit the same declaration.
Health certificate:
Its required for exports of foods products, seeds, animal meat products. This certificate is issued by the health department of exporting country.
Certificate of exports and realization:

After shipment, the exporter should get their export certified by an authorized dealer in foreign exchange. While presenting the export documents to an authorized dealer, he should fill in and give to the bank a declaration (in triplicate) in the prescribed form known as bank certificate from the realization of proceeds.
DOCUMENT NEGOTIATION
Exporter has to submit all the documents as per the terms of Letter of Credit to his banker. The bank will scrutinize the same and if they are in accordance with the LC, the bank will negotiate and credit the exporters account.
INCENTIVES SCHEMES
Exporters are a vehicle of growth and development. They help not only in procuring the latest machinery, equipment and technology but also the goods and services , which are not available indigenously. Export leads to national self-reliance and reduces dependence on external assistance.
Export incentives claimed by Ashok Leyland
Duty drawback
DEPB
Focus market sc heme
Market Linked Focus Product
45
-All industry -Brand rate In a bid to boost automobile exports, Government of India has extended a vast array of incentives to the exporters. Some of Maintaining foreign currency(EEFC Account) Duty drawback All industry rate and brand rate Exemption of terminal excise duty Income tax benefit Licensing benefit -EPCG -DEPB -Advance license for imports
Duty drawback scheme

Duty drawback scheme means the rebate or refund of duty chargeable on imported material or exercise material used in the manufacture of goods made for the purpose of export. The exporter may claim the drawback or refund of excise and customs duties being paid by his suppliers. The final exporter can claim the drawback on material used for the manufacture of export products. The basic principle is to provide relief to the exporter enabling him to face competition in the overseas market. In case of reimport of goods also, the drawback can be claimed. The following are drawbacks Customs paid on imported inputs plus excise duty paid on indigenous imports. Duty Paid on packing material. Drawback is not allowed on inputs obtained without payment or excise duty. In part payment of customs and excise duty, rebate or refund can be claimed only on the paid part.
46
In case of re-export of goods .it should be done within two years from the date of payment of duty when they were imported. 98% of the duty is allowable as drawback, only after inspection. If the goods imported are used before its re-export, the drawback will be allowed as at reduced per cent.
Availing duty drawback

Duty drawback can be availed based on All industry rate is fixed by Ministry Of Commerce for each category of products. Special brand rate if the duty incidence is more than 125% of all industry rate All industry rate is fixed by industry by Ministry Of Commerce at the beginning of every financial year based on data furnished by exporters of similar products. For claiming special brand rate at the exporter has to submit proof of incidence of duty by providing document such as Bill of entry for imports Tax invoice for inputs if not Motivated Excise duty paid in cash on inputs used in the manufacture of export product shall be eligible for brand rate of duty drawback as per rules framed by Department Of Revenue.
Procedure for applying drawback

Various forms and procedure have been prescribed for submitting details to the directorate of drawback. Details as perform DBK-I, DBK-II,DBK-III,DBK-IIIA has to be submitted. DBK-I contains information about the quantity of materials consumed indigenously or imported for the manufacturing of the export product along with wastage quantity and value. DBK-II contains information about the value of the materials imported and also the value of the foreign materials obtained locally during the period commencing three months prior to date of shipment and weighted average of the value used in the manufacture of the final product
47
DBK-IIA contains information about the stock of the materials imported as on commencement date three months prior to date of shipment and weighted average of the value used in the manufacture of the final product. DBK-III contains information about the inputs that was purchased domestically and used in the manufacture of the final product that was exported DBK-IIIA contains information about the stock of the materials that was purchased domestically and used in the manufacture of the final product that was exported. Two copies are to be submitted to the Assistant of Commissioner of Excise having jurisdiction over the factory. The officers of the Central Excise verify the data . After verification the report is forwarded to the Commissioners Office. The rate is then finalized by the Commissioner Of Central Excise Duty and accordingly Brand Rate letter is issued.
All industry rate

All industry rate and brand rate are fixed by the Directorate of Drawback based on the data submitted by the Industries . The all industry rate is claimed if the gross weight of the chassis or the vehicle exceeds 16.5 metric tonnes. AIR of duty drawback is 1% of FOB (Free On Board ) value as per Sl. NO. 8706 of the drawback schedule. It is one incentive scheme where the exporter receives cash from the Government . There is no value cap for claiming this incentive and the entire amount is refunded. AIR will be automatically be refund for the claims filed in EDI ports . For the non EDI ports manual claim has to be done within a period of 60 days from the date of shipment.
Documents to be submitted
The following eleven are to be submitted to the Assistant Commissioner of customs , drawback cell of the non EDI port where the goods were exported. Bank attested invoice. Bank realization certificate Copy of relevant A.R.E.1 Triplicate copy of shipping bill-Original Truck receipt/Bill of lading
48
Copy of LC EP copy of shipping bill-photocopy Letter of incident Packing list Invoice duly certified by the customs-Original Bank certificate regarding payment of commission in USD
Duty Entitlement Pass Book Scheme

Duty Entitlement Pass Book Scheme in short DEPB is an export incentive scheme, notified on 1/4/1997. Back then DEPB scheme consisted of a Post export DEPB and a Pre export DEPB. The pre export DEPB scheme was abolished with effect from 1/4/2000. Under the post export DEPB , which is issued after exports, the exporter is given a Duty Entitlement Pass Book Scheme at a pre-determined credit on the FOB value. The DEPB rates are applied on the basis of FOB value or Value cap which ever is lower. The per vehicle value cap of DEPB is 10% of 5.71 lakhs. DEPB scheme incorporates the concept of the old pass book but with simplified procedures and greater coverage and transparency in the matter of giving credit entitlements. The entitlement rate will be predetermined so that the exporters at the time of exports can do their costing accordingly. It is a transparent scheme and does way with any discretion to the Licensing Authority or Customs Authority and can be availed on post export basis. DEPB has been extended to all the ports for which advance licenses facility is available. Under DEPB ,the credit can be transferred within the same port of registration. DEPB rates are announced by DGFT for the items exported. Exporter must provide the details of input and output norms. Application for the rate fixation should be made through the concerned EPC. Shipping bill should be endorsed properly for availing DEPB. Import under DEPB is allowed only through the port of exports. DEPB can be sold in the market for premium. The refund of duty under this scheme is in the form of export or import licenses and also the amount will be specified in the license.
Focus Market Scheme
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The government has formed trade pacts with some nations and also is a member in various trade unions. So the government gives the exporter some incentives if they sell to specific countries like G hana, Mauritius etc. which are under developed. Under this scheme the exporter can claim 3% of FOB value irrespective of the vehicle model, tonnage or price. There is no value cap in this scheme. The refund is in the form of license which should be used within 2 years from the date of issue. The duty to be paid for imported goods will be deducted against the balance in the license.
Market Linked Focus Product Scheme

Under this scheme the exporter can claim 2% of FOB value if they export chasis alone to s pecific countries. The refund is in the form of license which should be used within 2 years from the date of issue. The duty to be paid for imported goods will be deducted against the balance in the license.
ECGC
Export Credit Guarantee Corporation of India Limited, was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit.
Being essentially an export promotion organization, it functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India. It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community. ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.800 crores and authorized capital Rs.1000 crores.
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UCP 600
The latest revision of UCP is the sixth revision of the rules since they were first promulgated in 1933. It is the fruit of more than three years of work by the ICC's Commission on Banking Technique and Practice. The UCP remain the most successful set of private rules for trade ever developed. A range of individuals and groups contributed to the current revision including: the UCP Drafting Group, which waded through more than 5000 individual comments before arriving at this final text; the UCP Consulting Group, consisting of members from more than 25 countries, which served as the advisory body; the more than 400 members of the ICC Commission on Banking Technique and Practice who made pertinent suggestions for changes in the text; and 130 ICC National Committees worldwide which took an active role in consolidating comments from their members. During the revision process, notice was taken of the considerable work that had been completed in creating the International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP), ICC Publication 645. This publication has evolved into a necessary companion to the UCP for determining compliance of documents with the terms of letters of credit. It is the expectation of the Drafting Group and the Banking Commission that the application of the principles contained in the ISBP, including subsequent revisions thereof, will continue during the time UCP 600 is in force. At the time UCP 600 is implemented, there will be an updated version of the ISBP to bring its contents in line with the substance and style of the new rules. Note that UCP600 does not automatically apply to a credit if the credit is silent as to which set of rules it is subject to. A credit issued by SWIFT MT700 is no longer subject by default to the current UCP it has to be indicated in field 40E, which is designated for specifying the "applicable rules". Where a credit is issued subject to UCP600, the credit will be interpreted in accordance with the entire set of 39 articles contained in UCP600. However, exception to the rules can be made by express modification or exclusion. For example, the parties to a credit may agree that the rest of the credit shall remain valid despite the beneficiary's failure to deliver an instalment. In such case, the credit has to nullify the effect of article 32 of UCP600, such as by wording the credit as: "The credit will continue to be available for the remaining instalments notwithstanding the beneficiary's failure to present complied documents of an instalment in accordance with the instalment schedule."
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eUCP
The eUCP was developed as a supplement to UCP due to the strong sense at the time that banks and corporate together with the transport and insurance industries were ready to utilize electronic commerce. The hope and expectation that surrounded the development of eUCP has failed the UCP600 and it will remain as a supplement albeit slightly amended to identify its relationship with UCP
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CHAPTER - 3
53
DATA ANALYSIS & INTERPRETATION

TABLE:3.1.1 SHOWING COMPARISON BETWEEN THE OVERALL SALES AND E PORT SALES
OVERALL SALES YEAR SALES (CRORES)

4810.8
E PORT SALES
GROWTH (%)
-
SALES (CRORES)
452.18
GROWTH (%)
-
2006
2007
6053.11
25.82
431.77
-4.51
2008
8304.7
37.19
595.21
37.85
2009
8933.69
7.57
734.45
23.39
2010
6666.64
-25.38
911.54
24.11
INFERENCE:
It is inferred that the overall sales show a continuous improvement from 2006 to 2009 and reached 8933.69Crs. and shows a sudden fall in the year 2010 to 6666.64Crs. Export sales show a steady growth till 2010 except in the year 2007, which shows a decrease of 20.41Crs.
54
CHART NO:3.1.1SHOWING COMPARISON BETWEEN THE OVERALL SALES AND EXPORT SALES
8933.69 9000
8304.7
8000
6666.64
7000 6000
5000 4000 3000
SALES IN CRORES
Export sales
2000 000 0 452. 8 431.77 595.21

734.45 911.54
YEARS
55
2006
2007
2008
2009
20 0
48 0.8
6053.
Overall a les
TABLE:3.2.1 SHOWING CORRELATION BETWEEN OVERALL SALES AND E PORT SALES

X
4810.8 6053.11 8304.7 8933.69 6666.64
Y
452.18 431.77 595.21 734.45 911.54
X
23143796.64 36640140.67 68968042.09 79810817.01 44444088.88
Y
204466.75 186425.33 354274.94 539416.8 830905.17
XY
2175347.54 2613551.3 4943040.5 6561348.62 6076909.03
x=34768.94
y=3125.15
x=253006885.2
y=2115488.99
xy=22370196.99
[XYn ( X)( Y ) ]
0.473
INFERENCE :
Since the value of Karl Pearson correlation coefficient is 0.473, there exist a positive relation between overall sales and export sales, which means overall sales and export sales are directly proportional to each other.
56
TABLE:3.1.2 SHOWING COMPARISON BETWEEN THE EXPORT SALES OF VEHICLES AND SPARE PARTS
YEAR
VEHICLES
SPARE PARTS
SALES(CRS)
SALES(CRS)
2006
264.59
58.51%
187.59
41.49%
2007
397.24
92%
34.54
8%
2008
558.35
93.8%
36.87
6.2%
2009
690.58
94%
43.88
6%
2010
822.37
90.21%
89.13
9.8%
INFERENCE:
It shows a steady and continuous increase for the export sale of vehicles when compared to the export sale of spare parts. Export sale of spare parts show a declining trend except for the year 2010, which shows a sudden rise of 45.25Crs.
57
CHART NO:3.1.2SHOWING COMPARISON BETWEEN THE EXPORT SALES OF VEHICLES AND SPARE PARTS
900 800
700 558.35 600 500 690.58
822.37
SALES IN CRORES 400

264.59
397.24
Export sales ofvehicles
300
187.59 200 89.13 100 0 34.54 36.87
43.88
2006
2007
2008
2009
2010
YEARS
58
TABLE:3.2.2 SHOWINGCOR-RELATION BETWEEN EXPORT SALES OF VEHICLES AND SPARE PARTS

X Y X Y XY
264.59
187.59
70007.87
35190
49634.44
397.24
34.54
157799.62
1193
13720.67
558.35
36.87
311754.72
1359.4
20586.36
690.58
43.88
476900.74
1925.45
30302.65
822.37
89.13
676292.4
7944.16
73297.83
X=2733.13
Y=392.01
X=1692755.35
Y=47612.01
XY=187541.42
[ XYn ( X)(
Y)]
0.461
INFERENCE:
Since the value of Karl Pearson correlation coefficient is -0.473, there exist a negative relation between sales of vehicles and spare parts, which means when one value of vehicle increases, there is a possibility of decrease in the value of parts ie, both are indirectly proportional to each other.
59
TABLE NO :3.1.3 SHOWING COMPARISON BETWEEN OVERALL SALES VOLUME AND EXPORT SALES VOLUME
YEAR
OVERALL SALES VOLUME
EXPORT SALES VOLUME
SALES(CRS)
GROWTH %
SALES(CRS)
GROWTH %
2006
54740
6812
2007
61655
12.6%
4879
-28.37%
2008
83094
34.77%
6025
23.49%
2009
83307
0.2%
7285
20.91%
2010
54431
-34.66%
6814
-6.47%
INFERENCE:
It is inferred that overall sales volume shows a drastic change for the year 2008 from 2007, maintains the same for the year 2009 and shows a sudden fall for the year 2010. The export sales volume maintains the same level for the last 5 years.
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CHART NO: 3.1.3SHOWING COMPARISON BETWEEN OVERALL SALES VOLUME AND EXPORT SALES VOLUME
90000 80000 70000 60000 50000 SALES VOLUME 40000 30000 20000 61655
83094
83307
54740
54431
Overall sales vol e
6812
10000 0
4879
6025
7285
6814
2006
2007
2008 YEARS
2009
2010
61
TABLE :3.2.3 SHOWING COR-RELATION BETWEEN OVERALL SALES VOLUME AND EXPORT SALES VOLUME
X Y X Y XY
54740
6812
2996467600
46403344
372888880
61655
4879
3801339025
23804641
300814745
83094
6025
6904612836
36300625
500641350
83307
7285
6940056249
53071225
606891495
54431
6814
2962733761
46430596
370892834
x=337227
y=31813
x=23060520948
y=206010431
xy=2152129304
[ XYn ( X)(
Y)]
0.193
INFERENCE:
Since the value of Karl Pearson correlation coefficient is 0.193, there exist a positive relation between overall sales volume and export sales volume , which means overall sales and export sales are directly proportional to each other.
62
TABLE :3.1.4 SHOWING TREND ANALYSIS FOR THE EXPORT SALES VOLUME
YEAR 2006
6812 -2 4 -13624
XY
2007
4879 -1 1 -4879
2008
6025 0 0 0
2009
7285 1 1 7285
2010
6814 2 4 13628
Y=31813
X=0
X=10
XY=2410
Y=a+bX
where, a = Y/n 31815/5 = 6363 b = XY/X 2410/10 = 241
63
Y = 6363+241X
Expected sales for 2011 ;Y = 6363+241(3)
= 7086
= 7327
= 7568
64
TABLE:3.1.5 SHOWING COMPARISON BETWEEN THE OVERALL DEBTORS AND EXPORT DEBTORS
YEAR
OVERALL DEBTORS
EXPORT DEBTORS
DEBTORS(CRS)
GROWTH %
DEBTORS(CRS)
GROWTH %
2006
458.76
142.68
2007
424.34
-7.5
48.45
-66
2008
522.87
23.22
30.59
-36
2009
375.83
-28.12
249.29
714
2010
957.97
154.9
94.82
612
INFERENCE:
It is inferred that the overall debtors fluctuates till 2009 and shows a drastic rise at 2010. In case of export debtors reaches its peak by 2009 and shows a sudden fall at 2010.
65
CHART :3.1.5 SHOWING COMPARISON BETWEEN THE OVERALL DEBTORS AND EXPORT DEBTORS
1000
900
957.97
800
700
AMOUNT IN 600 CRORES

522.87
500
2006 2007
2008
458.76 424.34 375.83
2009
2010
400 300
249.29 200
142.68
100 94.82
48.45 30.59
Overall ebtors Export ebtors
DEBTORS
66
TABLE :3.2.5 SHOWING CORRELATION BETWEEN OVERALL DEBTORS AND EXPORT DEBTORS
XY
458.76
142.68
210460.7
20357.58
65455.88
424.34
48.45
180064.4
2347.4
20559.27
522.87
30.59
273393.04
935.75
15994.6
375.83
249.29
141248.19
62145.5
93690.66
957.97
94.82
917706.52
8990.83
90834.71
x=2261.9
y=565.83
x=1722872.85
y=94777.06
xy=286535.12
[ XYn ( X)(
Y)]
0.208
INFERENCE:
Since the value of Karl Pearson correlation coefficient is 0.208, there exist a positive relation between overall sales debtors and export sales debtors
67
TABLE :3.1.6 SHOWING DEBTORS TURNOVER RATIO OF OVERALL SALES AND EXPORT SALES
Debtors turnover ratio = Total Credit Sales Average Receivables
OR
Total Credit Sales debtors
YEAR
OVERLLSALES DEBTORS TURNOVER RATIO
EXPORT SLES DEBTORS TURNOVER RATIO
2006
10.48
3.17
2007
14.26
8.91
2008
15.88
19.46
2009
23.77
2.95
2010
6.95
9.61
INFERENCE:
It is inferred that the overall debtors turnover ratio shows a rising pattern till the year 2009, which shows a sudden fall from 23.77 to 6.95 at 2010. Export sales debtors turnover ratio reached its peak by the year 2008 and had a sudden fall to 2.95 at 2009 and attains a growth of 9.61 at 2010.
68
CHART: 3.1.6 SHOWING DEBTORS TURNOVER RATIO
20
19.46
15.88
15
14.26
DEBTORS TURN OVER RATIO

10
10.48
9.61 8.91
5
.17 2.95
2006
2007
2008
YEAR
69
25
2 .77
Overall sales Export sales
6.95
2009
2010
TABLE: 3.1.7 SHOWING AVERAGE COLLECTION PERIOD OF OVERALL DEBTORS AND EXPORT DEBTORS
Average collection period = Receivables (365) Total Credit Sales
OR =
365 Debtors Turnover Ratio
ACP FOR OVERALL YEAR DEBTORS
ACP FOR EXPORT DEBTORS
2006
35
115
2007
26
41
2008
23
19
2009
15
124
2010
53
38
INFERENCE
It is inferred that the credit period availed to the export sales is maximum when compared to the ACP
of overall sales, except for the years 2008 and 2010, which can be considered as a promotional activity for improving exports
70
CHART: 3.1.7 SHOWING AVEAGE COLLECTION PEROIED
140
120 115
100
124
AVERAGE COLLECTION PERIOD IN 80 DAYS

60
Overall debtors
53
40
35
41
38
Export debtors
26 20
23 19
15
0
2006 2007 2008 2009 2010
71
YEA
TABLE: 3.1.8 SHOWING COMPARISON BETWEEN EXPORT DEBTORS AND PROFIT (PAT)
PROFIT YEAR EXPORT DEBTORS AFTER TAX
2006
142.68
271.41
2007
48.45
327.32
2008
30.59
441.29
2009
249.29
469.31
2010
94.82
190.00
INFERENCE:
It is inferred that the continuous increase in the export debtors also increases the level of risk which leads to the decrease in the profit margins. At the end of 2010 it is seen that, a balance is maintained between export debtors and profit after tax.
72
CHART: 3.1.8SHOWING COMPARISON BETWEEN EXPORT DEBTORS AND PROFIT (PAT)
500 441.29
469.31
450 400
350 300 271.41 327.32
249.29
AMOUNT IN 250 CRORES

200 142.68 150
190
Export ebtors Profit( fter ax)
94.82 100
48.45
30.59 50
0
2006 2007 2008 YEARS 2009 2010
73
TABLE:3.2.8 SHOWINGDEBTORS COMPARISON BETWEEN EXPORT AND PROFIT (PAT)

X Y X Y XY
142.68
271.41
20357.58
73663.39
38724.78
48.45
327.32
2347.40
107138.38
15858.65
30.59
441.29
935.75
194736.86
13499.06
249.29
469.31
62145.50
220251.88
116994.29
94.82
190.00
8990.83
36100.00
18015.80
x=565.83
y=1699.33
x=94777.06
y=631890.51
xy=203092.58
[ XYn (
X)( Y ) ]
[ = 0.264 INFERENCE:
Since the value of Karl Pearson correlation coefficient is 0.264, there exist a positive relation between export debtors and profit after tax , which means they are directly proportional to each other.
74
TABLE:3.1.9
SHOWING
COMPARISON
BETWEEN
EXPORT
INCENTIVES AND PROFIT (PAT)

PROFIT YEAR EXPORT INCENTIVES
46.61
AFTER TAX
2006
271.41
2007
15.02
327.32
2008
8.52
441.29
2009
11.88
469.31
2010
29.96
190.00
INFERENCE:
It is inferred that export incentives does not have much effect on the profit after tax.ie, profit reached maximum at 2008 and 2009 in which export incentives are least minimum.
75
CHART :3.1.9 SHOWING COMPARISON BETWEEN EXPORT INCENTIVES AND PROFIT (PAT)
500 441.29 450
469.31
400 350
300 INCENTIVES IN CRORES 250 271.41
327.32
Export entives Profit ( fter ax)

190
200 150
100
46.61
50
29.96 15.02
8.52 11.88
0
2006 2007 2008 2009 2010
YEAR
76
TABLE :3.2.9 SHOWING COR-RELATION BETWEEN EXPORT INCENTIVES AND PROFIT (PAT)
XY
46.61
271.41
2172.49
73663.39
12650.42
15.02
327.32
225.60
107138.38
4916.35
8.52
441.29
72.59
194736.86
3759.79
11.88
469.31
141.13
220251.88
5575.40
29.96
190.00
897.60
36100.00
5692.40
x=111.99
y=1699.33
x=3509.41
y=631890.51
xy=32594.36
[ XYn ( X)(
Y)]
0.74
INFERENCE:
Since the value of Karl Pearson correlation coefficient is -0.74, there exist a negative relation between export incentives and profit after tax, which both are indirectly proportional to each other.
77
INCENTIVES FOR THE YEAR 2006-2007
MONTH AND YEAR
ALL INDUSTRY RATE
DRAW BACK SCHEME
DUTY ENTITLEMENT PASS BOOK SCHEME
April 2006
84235
5570226
12666558
May 2006
202004
7238916
13090506
June 2006
127314
13136450
28774032
July 2006
83935
6476124
10032470
August 2006
190973
2440833
29258369
September 2006
125765
9945831
36277003
October 2006
100212
10668442
17345806
November 2006
118525
11477511
19508290
December 2006
104620
13057975
18026470
January 2007
118525
12247550
20991415
February 2007
480937
13189807
24755263
March 2007
551550
8180381
18041718
Grand total
2288595
113630047
248767900
78

MONTH AND YEAR ALL INDUSTRY RATE DRAW BACK SCHEME DUTY ENTITLEMENT PASS BOOK SCHEME
April 2007
177253
8055028
13419242
May 2007
34163
6617132
13696241
June 2007
166285
9456487
25445018
July 2007
375740
12077974
27683514
August 2007
248653
12210354
26768049
September 2007
79282
10238767
27594416
October 2007
293202
12056796
27594416
November 2007
110842
11285412
23110706
December 2007
253964
10520313
46388671
January 2008
232129
64400
32772101
February 2008
69736
65422
37104105
March 2008
309507
93553
61033875
Grand total
2350755
92741638
362610354
79

April 2008
45820
2382536
8373262
May 2008
113415
134129
21527080
June 2008
374545
7667727
36291923
July 2008
474044
6582289
36027107
August 2008
303705
6268098
30644025
September 2008
427355
7166739
37954021
October 2008
299301
3566061
22588536
November 2008
449563
4979918
18785900
December 2008
113274
11075212
50918476
January 2009
126365
2623490
20822785
February 2009
135236
5623144
35154213
March 2009
321523
5943562
45210054
Grand total 3184146 64012903 36429738
80

April 2009
201467
1825209
7797857
May 2009
373125
2070289
15763128
June 2009
783890
3717573
17355544
July 2009
1185018
364602
21346545
August 2009
728427
1518879
27899652
September 2009
1008474
3381836
29526797
October 2009
238002
1537981
20888280
November 2009
625678
2612406
24442774
December 2009
873438
3839300
31277987
January 2010
694564
1139161
18830473
February 2010
754333
3124530
33945009
March 2010
652341
4024726
40941544
Grand total
8118758
28828349
290015589
81
TABLE: 3.1.10 SHOWING COMPARITIVE STUDY OF YEARLY TOTAL INCENTIVES
YEAR
TOTAL INCENTIVES
2006-2007
364686542
2007-2008
457702747
2008-2009
431494430
2009-2010
326962696
82
CHART : 3.1.10 SHOWING TOTAL INCENTIVES :
CHART NO: 4.1.I
TOTAL YEARLY INCENTIVES

50000000 364686542 457702747
431494430 326962696
40000000 30000000
10000000
0 2006-2007 2007-2008 2008-2009 2009-2010
YEAR
INFERENCE:
his raph shows that
otal earl incentives is
axi
for the ear 2007-2008, a sli ht ecrease is
shown in the next ear, and the same repeats for the next ear ie,2009-2010.
83
AMOUNT IN CRORES
20000000
Total earl incentiv es

TABLE :3.1.11 SHOWING COMPARITIVE STUDY OF GRAND TOTAL OF 3 INCENTIVE SCHEMES
INCENTIVE SCHEMES
GRAND TOTAL IN CRORES
All industry rate
15942254
Duty draw back scheme
299212937
Duty entitlement pass book scheme
1265691224
84
CHART NO :3.1.11 SHOWING GRAND TOTAL OF INCENTIVE SCHEMES FOR THE PAST 4 YEARS
15942254
2992129 7
All Industry Rate Duty Draw Back Scheme
1265691224
Duty Entitlement Pass Book Scheme
INFERENCE:
t is inferred that the 80.1% of the total incentives are of t draw back scheme and 1%

t entitlement pass book scheme, 18.93%
are of

ll industry rate.
ll these omprise the incentive schemes for exports.
85
CHAPTER - 4
86
5.1. FINDINGS
1. Overall sales is having a gradual growth every year. In exports there is a reasonable growth except 2007. 2. Export of vehicle sales is increasing every year but spare parts sales shows a down trend.
3. Export incentives have less effect on profit margin.
4. Overall sales shows a gradual rise in the sales volume every year and export sales volume shows a reasonable growth.
5. Overall debtors and export debtors show fluctuations every year and for the previous year overall debtors shows a rise and export debtors show a sudden fall. 6. Statutory incentives offered to the industry allowed by government particularly to Ashok Leyland are constant.
7. Overall debtor turnover ratio shows a steady growth and export debtor turnover ratio fluctuates every year.
8. Average collection period highly fluctuates for exports when compared to the overall sales.
9. Increase in export debtors adversely affected the profit margin.

10. Duty Entitlement Pass Book scheme has benefited the company the most.
87
5.2 SUGGESTIONS
1. Considering the companies sixty years experience in the market they could try and get into the Western market, according to the product specification of those countries. The company has to consider some export promotion strategies to improve the sales in the succeeding years. 2. Company need to concentrate both on the sales of vehicles and spare parts. Company have to find out more buyers those who are in need of spare parts for the assembly of vehicles, and also have to provide them with better credit period for the payment. 3. Company can focus on credit facilities and take advantage of some of the latest incentive schemes like Focus market scheme, Market linked focus product scheme, etc which will enhance cost effectiveness in the global market and facilitates penetrating into new markets. 4. The company can go for many other global entry strategies like turnkey project or Greenfield strategy to increase export sales volume. Credit period provided to the customers may be increased and lessen the procedures and formalities to increase the sales volume 5. To minimize and balance the debtors, company can change the payment terms documentary credit period to advance payment terms. 6. To increase the profit margin the company can offer more incentives. 7. To minimize debtor turnover ratio, the company can do change the payment terms to advance payment etc. and ensure a smaller debtor turnover ratio to reduce risk level. 8. The company can reduce the credit period for overseas applicants from 45, 60, 90 and 120 to some extent so that average collection period can be reduced and in turn reduces export debt, except for the bulk sales and for loyal customers (credit period can be 45,60,90,120) ie, for individual sales it can be reduced to 15, and 21. 9. The payment term (documentary credit as irrevocable) has the export to much extent. This can be improved either by advance payment terms or some others that the overall sales and profit can be increased. 10. Obtaining maximum incentives will make difference in the profit level. Company has to concentrate on more incentive schemes. from
88
5.3 CONCLUSION
The study on the export documentation and negotitiation of export finance was aimed at gaining practical knowledge regarding export documentation and incentive schemes with reference to Ashok Leyland. The study could successfully be completed within the limited period of time with the help, guidance and co-operation of GM , Export finance and his colleagues. Numbers of suggestions have been recommended as a result of the study and the same were discussed with the GM, Export finance. These recommendations have been appreciated and accepted for implementation and in fact some of them have already been implemented. The study thus helped in getting hands on experience in the real business world and to understand the various levels of export process and activities.
89
5.4 bibliography
Books:
y
International Marketing: Francis Cherunilam, Director, Albertian Institute of Management, Himalaya publishing house, Eight Revised Edition, 2006.
Research Methodology methods and techniques: C.R Kothari, Wishwa prekashan publications, Second Edition 1990
Reports:
y y
Annual report of Ashok Leyland 2006,2007,2008,2009,2010 Audited report
Websites:
y y
www.ashokleyland.com www.automative.online.com
90
Annexure
BALANCE SHEET AS AT MARCH 31, 2010
2010
2009
SOURCES OF FUND Shareholders funds

Capital Reserves and surplus
SCHEDULE
Rs.LAKHS
Rs.LAKHS
Rs.LAKHS
1.1 1.2
13,303.42 3,53,572.39 3,66,875.81
13,303.42 3,34,086.48
Loan funds
Secured loans Unsecured loans 1.3 1.4
71,156.68 1,49,232.50 2,20,389.18
30,441.33 1,65,373.06 1,95,814.39 26,343.69
Deferred liability Deferred tax liability Foreign currency monetary item translation differencenet Total
7,654.85 38,453.69
(1,245.01)
384.11
6,32,128.52
5,69,932.09
APPLICATION OF FUNDS Fixed assets

1.5
91
Gross block Less: Depreciation Net block Capital work-in-progress
6,01,863.37 1,76,907.45 4,24,955.92 56,146.97 4,81,102.89
4,93,894.82 1,53,983.19 3,339,911.63 99,828.94 4,39,740.57 26,355.71
Investments Current assets, loans and advances

Inventories Sundry debtors Cash and bank balances Loans and advances
1.6
32,615.49
1.7 1.8 1.9 1.10
1,63,824.00 1,02,206.15 51,892.05 96,046.23 4,13,968.43
1,33,001.44 95,797.42 8,808.36 78,954.35 3,16,561.57
Less: current liabilities and provisions

Liabilities Provisions
1.11
2,59,206.57 36,869.15 2,96,075.72
1,86,886.41 26,808.17 2,13,694.58
Net current assets Miscellaneous expenditure

(to the extent not written or adjusted)
1,17,892.71
1,02,866.99
1.12
517.43
968.82
Total
6,32,128.52
5,69,932.09
92
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 2010 Income Sales and services Less: Excise duty
SCHEDULE 2.1 Rs.LAKHS 7,87,259.74 62,788.69 7,24,471.05 Rs. LAKHS Rs. LAKHS 6,66,664.01 68,556.64 5,98,107.37 4,962.28 6,03,069.65
Other income
2.2
7,044.54 7,31,515.59
Expenditure Manufacturing and other expenses Depreciation, amortization and impairment Financial expenses
2.3
6,48,187.13
5,51,163.86
2.4
20,410.79
17,841.42
2.5
8,113.04 6,76,710.96
11,870.87 5,80,876.15
Profit Before Exceptional Item EXCEPTIONAL ITEM Voluntary retirement scheme compensation amortized Profit Before Tax Provision for taxationCurrent tax Deferred tax Fringe benefit tax
54,804.63
22,193.50
327.15
1,348.87
54,477.48
22,193.50
12,110.00 -
1,245.00 600.00
93
Profit After Tax Excess provision written back-Dividend -Corporate dividend tax thereon Balance profit from last year Transfer from/(to)Debenture redemption reserve General reserve
42,367.48
18,999.63
22.05
3.75
48,230.19
50,227.38
416.67
(2,958.33)
(10,000.00) 81,014.34
(2,500.00) 63,794.48 13,303.38
Proposed dividend Corporate dividend tax thereon Balance Profit Carried To Balance Sheet Earnings per share(face value Re.1)- Basic (in Rs) Income
Sales and services Less: Excise duty SCHEDULE 2.1 Rs.LAKHS 7,87,259.74 62,788.69
19,955.07
3,314.29
2,260.91
57,744.98
48,230.19
3.18
1.43
Rs. LAKHS
Rs. LAKHS 6,66,664.01 68,556.64
7,24,471.05 Other income 2.2 7,044.54 7,31,515.59
5,98,107.37 4,962.28 6,03,069.65
Expenditure
Manufacturing and other 2.3 6,48,187.13 5,51,163.86
94
expenses Depreciation, amortization and impairment Financial expenses
2.4
20,410.79
17,841.42
2.5
8,113.04 6,76,710.96
11,870.87 5,80,876.15
Profit Before Exceptional Item

EXCEPTIONAL ITEM Voluntary retirement scheme compensation amortized
54,804.63
22,193.50
327.15
1,348.87
Profit Before Tax

Provision for taxation-Current tax Deferred tax Fringe benefit tax
54,477.48
22,193.50
12,110.00 42,367.48
1,245.00 600.00 18,999.63
Profit After Tax

Excess provision written backDividend -Corporate dividend tax thereon Balance profit from last year Transfer from/(to)-Debenture redemption reserve General reserve
22.05
3.75
48,230.19
50,227.38
416.67
(2,958.33)
(10,000.00) 81,014.34
(2,500.00) 63,794.48 13,303.38
Proposed dividend
19,955.07
95
Corporate dividend tax thereon
3,314.29
2,260.91
Balance Profit Carried To Balance Sheet

Earnings per share(face value Re.1)- Basic (in Rs)
57,744.98
48,230.19
3.18
1.43
96

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A STUDY ON EXPORT DOCUMENTATION AND NEGOTITATION WITH SPECIAL REFERENCE TO ASHOK LEYLAND Submitted by M.PABITHA REG.

Under the Guidance of Mr.S.SENTHILKUMAR, MBA. M.PHIL., Department of Management Studies,

SRI VENKATESWARA INSTITUTE OF SCIENCE & TECHNOLOGY KOLUNDHALUR

ANNA UNIVERSITY CHENNAI-600025 JUNE 2011

This is to certify that, this project titled A ST AND NE OT TAT ON WIT

SPECIAL RE ERENCE TO ASHOK LE LAND

SIGANTURE OF THE HOD

SIGNATURE OF THE GUIDE

for the project viva-voce exami ation hel on_______________

Place: Kolundhalur Date:

Signature of the Candidate

Place: Kolundhalur Date:

Chapter - 2 2.1 2.2 2.3

Theoretical anal sis Company profile Product profile Review of literature

Data anal sis & interpretation

Chapter - 4 4.1 4.2 4.3 Findings Suggestions Conclusion Bibliography Annexure 78 79 80 81 82

Comparison between the overall sales and export sales

Trend analysis for the export sales volume

Comparison between the overall debtors and export debtors

Debtors turnover ratio of overall sales and export sale

Average collection period of overall debtors and export debtors

Comparison between export debtors and profit (pat)

3.1.9 3.1.10 3.1.11

Comparison between the overall sales and export sales

Comparison between the export sales of vehicles and spare parts

Trend analysis for the export sales volume

Comparison between the overall debtors and export debtors

Debtors turnover ratio of overall sales and export sale

Average collection period of overall debtors and export debtors

Comparison between export debtors and profit (pat)

Comparison between export incentives and profit (pat)

Comparitive study of yearly total incentives

Comparitive study of grand total of 3 incentive schemes

CUSTOMER E AMINATION OF E PORT CARGO:

TYPES OF E PORT FINANCE:

IMPORTANCE OF FINANCE AT PRE-SHIPMENT STAGE:

POST- SHIPMENT FINANCE :

IMPORTANCE OF FINANCE AT POST-SHIPMENT STAGE:

1.2 NEED OF THE STUDY

1.3 SCOPE OF THE STUDY

1.4 OB ECTIVES OF THE STUDY

1.5 RESEARCH METHODOLOGY

3.1.1 Research Design

Secondary data sources

3.1.3 Statistical tools Cor-relation (proposed by Karl Pearson)

3.1.3 Financial tools Debtor turnover ratio Meaning of receivables

Meaning of Receivables Management

Objectives of Receivables Management

Debtors Turnover ratio

Debtors turnover ratio=

Total Credit Sales Average Receivables

Total Credit Sales Debtors

Opening Receivables + Closing Receivables 2

Average Collection Period

Methods of research study for subject project

1.6 LIMITATIONS OF THE STUDY

OB ECTIVES OF ASHOK LEYLAND:

Global standards in quality:

ASSOCIATE COMPANIES: Automotive coaches and components ltd (ACCL):

PL Haul el Trailers (PLHT)(A Division of ACCL)

Lanka Ashok Leyland:

Ashok Leyland Project Services Limited:

Parveen travels. Sharma travels.