CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9. INTRODUCTION PROFILE OF THE COMPANY PRODUCTION INFORMATION SAMPLING UNIT FABRICATION DYEING PRINTING STEAMING AND COMPACTING PRODUCTION UNIT 1. Pattern making 2. Cutting unit 3. Sewing unit 4. Types of machines 10. 11. 12. FINISHING AND DESPATCHING EXPORT PROCEDURES CONCLUSION

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INTRODUCTION
KALAIMAGAL TEXTILES was established in the year 1985 with capital of 5 lakhs and mainly concentrated in local market as globalisation effect company emerges as new innovation to it and purchased machinery from Taiwan and Concentrating on foreign markets. Company was performing according to the contract made with the importer about 20% of the order are exports. In the remaining period concentrating on local market mainly from Coimbatore and Tirupur. Our importers are America, Canada and European countries, our main motives is service and delivering the order within a stipulated time and cost would be reasonable, service would be good as possible. Now company is developing about 10-20% every year with satisfaction of importer. About the value of 40-50 crores every year. In training period, I have learned in the area of  Production  Marketing  Quality control  Sakes

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Company now mainly concentrating to Latin American Countries.

ABOUT THE GARMENT INDUSTRY

The first cotton - knitting unit was first establishment in the year 1983 and the woolen unit in 1902. The textile industry in India is classified into two majors sectors (1). Original sector consists of spinning and (2). Decentralized sector consists of units operated by power looms, handlooms, e.g. knitting machines, the hosiery industry has distinct features of its own the industry roguish is exclusively nature. The knitting industry consumes about ½ the of the total yarn produced in India.

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PROFILE OF THE COMPANY
This company named Kalaimagal Textiles. Cent percent export orient unit. This company located in the knit city Palladam in the southern part of India. This company linked with an excellent network of manufacturing of quality products and the same made of supplies. This company met its full commitment with importers requirements as long lasting basis. And made fully strong and continuous business relationship with importers satisfy. This company ready to meet your any type of requirements. Hoping to hear from you soon.

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Cotton/ Waffle Lycra & Pointelee 5 . Pique. Registered with textile committee under ministry of textiles – India. India – Palladam region. District Industries Centre. Interlock. as a small-scale industry. PRODUCTS All kind of knitted and woven garments for babies. Dropneedle. Ladies and Gents Fabrics: Jersey.one of the importer. Registered with Tamilnadu govt. Registered with Government of India/ Ministry of commerce. Boys.RECOGNIZATION Our company recognized by the apparel export promotion council. Girls.Exporter. Children’s.

 This volume of production made by more than 100 number of workers MARKET Fully marked out supplies to  United kingdom  France  The Netherlands  Canada  Belgium  Chile MAIN VALUABLE IMPORTS Amerlla Creations Georges .PRODUCTION CAPACITY  Our factory’s total area 8000 sqft.Well Brifuiel & Sons Ltd MG Vanmeel Vado Tex B.  We manufacturing the Garments by used more than fifty imported machines.  Volumes of production 3000 pcs per day for Basic style.V Canada France Belgium The Netherlands The Netherlands 6 .

K Chile France  Out All exports forwarded through registered CHA  EGL .Vego Tex B.W. W.V.  40 . CA 10285 7 . CHA R426 Chennai  LEMUIRE CHA No. 0240544 – 9200016  Our Account No.  Dealer Code No. Tirupur – 641 607. CBE / CUS / 0295 FOREIGN EXCHANGE DEALER  Our authorized foreign exchange dealer is the Canara Bank (The Government of India Undertaking)  SSI Financial Branch.B Kurinji Towers  Appachi Nagar Main Road  Kongunagar.Eagle Global Logistics (I) India Pvt Ltd.Groups DYS Euro Textiles FORWARDERS - The Netherlands U.

Yarn purchase 2. As soon as the order received the accessories like should produced to the store head so that it take various steps against it. The manufacture while purchasing yarn counts plays an important role. buttons. Purchase of Accessories Next to raw materials is yarn porches for the further production. lucre etc. the yarn porches should be made carefully. Yarn Purchase Since yarn account for about 50% of the cost of product. 2. There are many types of yarn. sewing needles. Purchase Accessories 1. rayon. stitching cores. TK counts ranges from 20’s to 60’s hence “s” refers to counts. cartons etc. Are to the purchased. labels.FUNCTIONS AND PROCESS PURCHASE DEPARTMENT Purchase of raw materials is of two types 1. tapes. 8 . polyester cotton. Accessories like knitting needles. viscose. they are cotton. zips.

Dyeing 4. souring) 2. 2. Preparation (souring. Knitting The fibbers. Hydro extraction and drying 9 .PRODUCTION DEPARTMENT As soon as the yarn is purchased the knitting program should be prepared in that knitting program in which fabrics and what texture die and gagging is calculated. are called as knitting. Fabric means a manufactured assembly of fibers and for yarns which has substantial surface area in relation to this thickness and sufficient mechanical strength to give the assembly inherent cohesion. bleaching. 1. Mercerizing 3. 1. Wet Processing The knitted cloth is prone to structural distortion because of its elastic loop structure even small amount of physical force might disturb the stable structure of the knitted material implies successful handling of this during various wet processing stages. which are used for the purpose of converting the yarn into clothes (or) fabrics.

4. Printing The fabric enters the stage if required. Calengrering Because of its loop structure and the various tensions applied during knitting. Rotary printing Screen-printing is the one of the oldest form of printing.3. Screen in make according to the design. Screen printing 2. Quality Id high and time consumption is less. 10 . Rotary printing is the modern technical and expensive means of printing. The unfinished knitted materials might shrink 15029% of its original dimensions depending upon the type of materials. 1. Time consumption is high. This method named as photosensitive method. Because the machinery cost for the above method is beyond the reach of the small processor. So far the successful method providing dimensional stability to the knitted materials is by the method which combines compressive shrinkage and risen treatment. The only way to avoid shrinkage is to pre-shrink it before the garment is made up. The required design is printed on the fabric. The only way of shrinkage control is progressive shrinkage method.. They are two types.

He is a person responsible for designing the pattern card according to the instructions given by the importers. They have to take the form of T-shirt. Singer 4. there are two types of labor for cutting. 5. He is responsible for cutting the cloth according to the pattern card designed by the pattern master. Kaja and button 11 . banian. There are four type of processing they are 1. Cutting Cutting means to cut the cloth according to the required measurement the dyed printed and cured cloth cannot be worn as such. Pattern master 2. Over lock 2. Flat lock 3. Cutting master 1. In order to certain and wear the cut cloth in the desired pattern permanently stitching as to done. etc. 2. 1. Stitching Its purpose is to stitch cloth according to the requirements.5.

Checking is done manually in all concerns. Product sells them selves if they are placed in attractive and eye appealing packages of suitable size 12 . which might have occurred during the different processes. Packing Packing is highly essential because it protects the garments from various adverse factors like temperature water or other liquids. Any oversight on their part will damage the reputation of the producer and lead to loss of good will. spoilage etc.6. It is important for two reasons. The number of labor required will depend on the received by a unit. 7. 1. Checking Checking means is to check for damage and other mistakes. Which might occur on its route form the procedure to consumer. It enhances the appearance of the product 2.

As a proof of dispatching the consignment. Letter of credit. The banker after verifying the documents as per the terms of the letter of credit will credit the proceeds as per the market value of the exchange rate to their packing credit account.SALES DEPARTMENT The object of every organization is maximization of profit. This depends upon the sales executives. A sale is the main nucleus around which hall the other activities of the organization beholds. certificate of origin and original invoice have to be fie with the banker for negosatiation. The documents like bill of lading. As soon as the goods are exported they prepare proforma invoice which send along with the consignment so that they can get bill of lading (B/L) at the port. 13 . All those process was to be done by the manager of the sales department and his assistants. As soon as the goods are ready it transport to the ales department here they makes necessity arrangement for exporting it usually they export the goods by ship.

that is cash receipts and cash payments of the business. 14 . The contract based master weavers are paid by the accounts department. medical allowance. Cash book 3.ACCOUNTING AND FINANCE DEPARTMENT Account maintains the wages leave salary. It also contains the shipment details for foreign sale. All the petty cashiers have to give the details about their transactions every week so that it will be recorded in this book. Finance department is maintained by a accountant with five other staffs its assistants. In this book all the transactions of the goods sold are written. Petty cash book 4. Cashbook Here all the cash transactions are record. Sales book 2. The various account maintained in finance department 1. Hence company’s good will with this labour is maintained. All bill that are due and those which are to be paid are orderly kept and submitted on the approach of the data. Purchase book Sales book This is also called as outgoing materials book or sold book.

which is met daily in the company. Purchase book This is a book of records in which credit purchases of goods are entered. traveling expenses.Petty Cash book This is a book to record all cash transactions. 15 . This book is also called as bough daybook. carriage and cartage. stationary. The expenses include such as postage. cleaning. This book is maintained by petty.

But only ingle piece is made the shade. one for the merchandiser. design on the garment everything is done and send to the buyer. trims. Inside the sampling unit there are separate persons appointed a pattern master. 1) After he gets the sample piece from the buyer. double needle machine. 3) Four samples will be prepared one for the buyer. flat lock machine over lock machine. cutting master some expert persons for sewing. 16 . 2) Then he cut and stitches the fabric. After getting the order from the buyer a sample is roughly made and Id to the concern buyer in one separate unit itself pattern making. cutting. He prepares size set for that sample. weight. one to the show room. After getting the approval from the buyer further processes are carried out.SAMPLING UNIT In the sampling unit a sample to be send to the buyer is made. marking. stitching and all the other process are done. There are different machines also appointed like single needle machine. one for the company.  Process carried out in sampling section Size set  Buyer comments Order fabric  Correct colour.

Taiwan Gauge 20&24-20 Nos. 5) After five days he gets the approval and garments from the buyer. Taiwan Gauge 20 – 1 No. Italy. 500 Kgs / Day : LMW 18. 250 – 300 Kgs /Day Three Thread Fleece Knitting : Auto Stripper Jacquard Knit Interlock Jacquard Knit : : : Pailung. Italy. 200 Kgs / Day Orizio. OUR VERTICALLY INTEGRATED MANUFACTURING OPERATIONS OFFER THE ULTIMATE IN PRODUCT VARIETY. FLEXIBILITY AND QUALITY CONTROL SPINNING UNIT Yarn Spinning Mill KNITTING UNIT Jersey Circular : Pailung.4) Thus the price for the sample stitched with the pattern to the buyer. Gauge 20 /4 Colour-3Nos. 250 – 300 Kgs / Day Orizio.000 spindles 10.000 Gms/Day 17 . 6) Then a size set is prepared according to the Bulk production. Gauge 20 /4 Colour-3Nos. 5000 Kgs / Day Rib Knitting / Jacquard : Pailung. 200 Kgs / Day Mayer & Cie Gauge 20 –2 Nos. Taiwan Gauge 16-2 Nos.

5000 Pcs / Day Computerised Plastizol Printing : Compacting Machine 1No. with Curing. Italy–3 Nos. 60.Interlock Knit : Pailung. 600 Kgs / Day : : 6500 Kgs / Day 3000 Kgs / Day : Machinery –2 Nos. Albercht Germany (Made in Brazil) Model CAL – 14C + VFE – 2500 Kgs / Day.000 impression /day (maximum 6 colours). 300 Kgs / Day Interlock & Lock Machine DYEING Soft flow & Jet Dyeing Yarn Dyeing – HTHP Cheese Dyeing PRINTING Rotary Printing : 9 RJ / M – B Gauge 20-6 Nos. Capacity – 6000 Kgs / day (possible upto 10 colour) MHM.00. Chamber & Fusing Capacity – 4. Austria –2 Nos. Taiwan Gauge 20 – 1 No.000 Mtrs/Day Fully Jaquard Fashionable Sima – Seiki – 6 Nos. Comez. Elastic Machine Collar Machine : : : 18 .

Singer M/C Overlock M/C Flatlock M/C Inter Lock Collar Fusing M/C Lay Cutting Feed of the Arm Placket M/C Zig Zag Picotting M/C Specialty M/C Total : : : : : : : : : : : : 603 317 290 3 1 10 6 1 2 3 56 1292 19 .

In fabrication knitting machines are used. The most frequently used knit fabric is single jersey. Auto striper. In knitting machines there are different types of knitting machines for different fabrics Jersey circular. The diameter of the garment is given and the fabric comes out in roll form.FABRICATION Fabrication is the process of preparing the fabric. Jacquard knit. By changing the needles and beds designs can be introduced. In knitting according to the width of the garment knitting can be done. cuffs. Interlock knit. Rib fabric is used if more stretch is required. Rib knitting/ jacquard. 4 POINT SYSTEM INSPECTION FOR FABRIC CHECKING The 4 point system is the best system of checking defects. Machines are operated with the help of computers. Rib fabric is used on collars. 20 . Nowadays rib fabric is used for ladies tops to give variety and stretch. Three thread fleece knitting. The yams are placed surrounding the machine with the help of needles and beds the yams are knitted into fabric. This is the only company which has introduced 4 point system. Interlock 8 lock machine.

SIZE OF DEFECTS 0-3 3-6 6-9 9-12 & above PENAL1Y POINTS 1 points 2 points 3 points 4 points To determine number of yards in length in linear yams.x 100 Total yards inspected = A% If the result exceeds 40% then the roll is rejected. Weight of roll in kgs L = Width of roll in CM * GSM in kgs L = a in meters = A ---------.9145 x 50 = Y yards To determine the roll accepted or rejected Total penalty points = -----------------------------------. 21 . If its is below 40%. Then the particular roll is accepted.

The capacity of the machine is 250 -300 Kgs/ Day. Special processing of needle latch presenting the latch loosening out under high speed running design.CUTTING There are 20 & 24 gauge. The dial & Cylinder cam in this series are all closed track design. The your guiding device can implement over all displacement all independent adjustment. The models in this series are equipped with our patented design of central controlled density adjustment design. tuck and miss can be exchanged in position. 22 . The can of Knit. needles prevent much stable movement in the trick walls even with high speed revolution.

The large number of thread feeding and the high production capacity of this machine can replaced old style machine. The products include fashion clothes for women.KNITTING The gauges are 16 8 2. The length of loop yawn can be adjusted by the can of the sinker. pyjamas. diagonal stripes and french terry fabric. 23 . The fabric surface can be used for pulled velvet fleece fabric after your brushing processing. infant clothing & clothes for keeping warmth . tie -in yarn and ground your are combined in a unit to knit into fishing net. spots outfit intimate wear. The capacity of the machine is 250 -300 Kgs/day. The loop yarn.

Yam dyeing In yam dyeing the yams present in the cone is winded on the spring. The dye is passed from down. The fabric is first wet then the fabric is dyed.DYEING Dyeing is the process in which colour is given to the fabric. According to the colour of dye also programming differs. This spring is kept instead of cones because if the yams ire placed in cones then the cones gets wet and damaged. According to the fabric type the time of dyeing differs. Dye is passed with heat. After that the dye is sprayed through stick.Jet dyeing & soft flow Jet dyeing is the fastest dyeing machine in this the fabric is Jyed by placing the fabric inside a big container the dye solutions are kept inside the container. Before dyeing the machine is preset. The yams are placed one above the other on the stick. It takes 12 hours for dyeing. There are two types of dyeing done they are 1) Jet dyeing & soft flow 2) Yam dyeing 1. The springs also gives movement to the yam so that the yams get dyed everywhere. 2. A lid is placed on the top 24 .

For polyester and cotton yams salt is not ended. After hydro dryer the yam is kept in ordinary dryer. If dark colour is necessary the machine is set for 60 C and the yam is dyed for 12 hours. The dye is mixed inside the container and passed through tube. Stick is placed inside. 25 . Wetting agent is added after cold wash the yam is kept in hydro dryer. According to the counts the yams are dyed. After dyeing cold wash is done.for opening and closing. A sample cone is attached on a side to see whether the dye is properly spread and mixed.

Screen printing In screen printing the printing is done with the help of and a screen is done. Time differs according to the design.PRINTING In printing the fabric is printed if necessary. Super bond with hot water. mesh cloth for fixing. Dark colours are traced. Checked designs are known as jacquard. The length is marked. Simple designs are done in table printing. Developers are Hypo 1ethasium sulphide. exposing pipe. The name of 1e thin film sheet is know as Gas film. Simple designs are done with and. Pigment print. Complicated designs are done with the help of computers using Corel draw. Water proof drawing ink are used. A thin f1lm is used for printing. Gadi print are types of print. 26 . The mesh cloth is dipped and then dryed. Difficult designate done with Rotary printing. There are three types of main printing done they are 1) Screen printing 2) Rotary printing 3) Art printing 1.

Art printing In art printing the design is spitted into various parts each part of the design is made on separate screen. On the blanket the cloth moves on top of the cloth the screen moves in a rotating form. The printing can be done on cloth or in paper and from the paper the design is transmitted by ironing. The fabric is laid on the machine and the rotating screen is passed on the cloth. The design is printed manually or by machine. The fabric is placed down on a square strand the screen is pulled down and the print is done. The rotating screen prints the design on the fabric. 27 . Rotary printing In Rotary printing the screen is formed in a circular form.2. 3.

This pattern is traced.PRODUCTION UNIT Production unit is the place where a garment is produced with trimmings also. 28 . alignment of the patterns and their details are given by merchandiser. Conception sheet. 7 pieces are randomly checked by the quality controller. They are 1) Pattern making 2) Cutting unit 3) Sewing unit 4) Checking unit 5) Packing & dispatching unit 1. Pattern making In pattern making a standard pattern is made by an experience and skilled person with the measurements given by the buyer. There are different process and units carried out inside a production unit. The standard patterns are kept as such only traced patterns are used.

collar which are planned by Quality controller. 29 . LOT NO. MASTER NAME.The conception sheet contains the following 1) Placement of sleeve. bodice. That is the entire piece of a garment is placed on one roll for example there is no place for one shirt the entire part of that sleeve like bodice are taken to the next lot. 2) According to the planner patterns are placed over the fabric. 3) Different pieces are placed on a single roll only. 4) This is because of the shade variation. So if ten garments are to be cut then these ten garments parts are cut in one lot 5) After cutting it is stick with a sticker which contains details about JOB NO. ROLL NO.

A row of stitch is made by this machine. The total number of over lock machines are 317. 30 .SEWING UNITS The fabric after cutting is passed on the stitching unit where there are different set of machines which works under for different finishing of the garment. This type of stitch is given on the couner's of the fabric. In stitching more skilled persons are appointed. picotling etc. Inter lock. The frayed fabric is cut down by the machine. FLAT LOCK The total number of machines are 290. collar fusing. There are 3 thread over lock machine. placket. OVER LOCK This is machine is use to do lock stitch. In this machine strips can be attached with the garment like has attachments can be done early. Each machines for different process of stitching. There are different set of machines like singer. 5 thread over lock machine. There are 603 singer machines. over lock. SINGER This machine is use to join the fabric. A stitch is made on top of it a lock stitch is made. There are single needled and double needle singer machine. zig zag. Flat lock.

If a garment for example a T-Shirt the patterns are bodice front and back.CUTTING UNIT Inside the cutting unit t here are two type of cutting done they are 1) MANUAL CUTTING 2) MACHINE CUTTING 1. collar pattern or any other pattern with the design details is laid on top of the fabric. cuff are done. If a lot is taken for cutting the entire parts of a garment is done in one lot for example if bodice front cannot be placed in that lot then the entire part of that bodice is taken to another lot. The fabric is first laid on the table in the most frequent way the particular pattern like bodice pattern. Manualcu1ting In this type of cutting the entire process is done manually no machineries are used. After placing the pattern on top of the fabric the outline of the pattern is marked. 31 . sleeve pattern. collar. According to the convenience the number of layout also differs. sleeve.

6) Fabric pieces side cut generated during cutting should be put in to a basket. 2) Each lot of fabric cut should be bundled and numbered for identification. 3) The fabric should be checked and proper markings should be affixed for stains. 32 . 3) All the recur fabric have to be send back to the fabric inspection for checking. After sticking he plans how to cut the fabric and remove the defective Portions completely. 7) Metal gloves must be used while cutting on the Band knife machine. 5) Match the line and stripe while laying the fabric before cutting. Prescreening Procedure 1) All the rolls that have to be Rescreened are to be handled separately by a expert cutting master in cutting section.Working Rules for Cutting Unit 1) Ensure that scissors are sharpened and use them carefully. Then the fabric is checked thoroughly and send back for cutting. streaks or any other defects noticed while cutting. 2) The cutting master inspect the roll thoroughly at the mistaken part and high light it with a sticker containing an arrow mark. 4) Pattern should be laid on the fabric with a view to cut maximum number of piece.

4) While hand cutting do not lay more than two plies at a time and check whether the length of cutting piece is little more than the marker length. 5) Do not add tension to the cut piece length no splices are allowed while hand cutting. 33 .Cutting Quality Control 1) The roll will be issued to the cutting section separately widthwise 2) The system of cutting is divided into three types. size. 6) During layout cutting of the fabric check the edge of the plies extend beyond the one edge of the fabric is aligned to the table 7) Each bundle will have a tag mark with bundle no. notches etc. 8) All cut part will be inspected for defects like miscut. number of pieces. ragged cutting. • Lay cutting by using the band knife machine. • Cutting the roll in bit form and arranging stack form to be cut in the Band knife machine • Single piece hand cutting method is mainly used for yarn dyed fabrics it is easy to do line matching 3) The marker should contain all part of the body within the same ply of the same colour. lot no. colour and cutting master name. matching plies.

12) The following will be the tolerance allowed for the defects • Miscut.tolerance is + / --1 /8 • Matching plies-tolerance is + / --1/8 • Notches-tolerance is + / --1/8 • Pattern check. If any defects found in these pieces the bundle will be returned back to the cutter for correction and the bundle will be collected back for re inspection.tolerance is + / --1 /8 13) Compare the cutting pattern to the master pattern periodically to make sure the cutter is not using the damaged or the wrong pattern while cutting. 11) The procedure for the inspection of cutting is 7 pieces of one bundle is checked randomly. After correction cutting is again done. lines to be straight at sleeve hems. sripes have to be balanced on both sleeves and one way has to be followed. 10) While cutting yarn dyed fabrics the stripes matching at the side seam should be checked. All the patterns should be marked with size and order details. Director must make the final decision. 14) All defective work found by the inspector must be corrected the cutting supervisor and the quality supervisor must work together on such problem. 34 .9) The cutting quality defect will be recorded in the format displayed on the board. 15) Records of the cutting defects will be stored in flies at the cutting area. bottom hems.

This machine is placed on top of a table. Band knife cutting is a stationary machine. Machine Cutting In machine cutting there are two types of machines used they are Band Knife Cutting Machine.Cutting Defects  Matching Notches  Neck shape uneven  Ragged cutting  Stripes uneven  Stripes bowing Miscut  Marker sample 2. The fabric is marked with the pattern and the fabric is moved towards the and cut on the marked lines. The table contain small rotating ball through which air passes so that the fabric moves freely. 35 . In straight knife cutting machine the cloth is laid on the table and marked with the pattern the cloth is placed as such and the machine is moved along the marked line. The machine contains knife which cuts the fabric after each cutting the knife gets sharpened. Straight Knife cutting.

The alignment of the garment. On the checking master him self-check the finished garment. Then the garment is ironed with steam ironed & folded. Packing is done according to the details gives by the buyer. Then this garment is placed inside a poly bag.FINISHING & DESPATCHING This is the final process in the production unit. The garment is measured with the measurement chart. Where the finished garment is checked by the merchandises at mandom. After checking the garment is take to processing & packing section where the garments are labeled & tagged. In the caution boxes the site no. number of garments inside should be written. 36 . The garments after placing in a poly bag is kept in a caution box and dispatched for shipping. This also had known as final Inspection where the garment is completely inspected. The maralled threads are cut down.

acting on behalf of the seller and charging commission. 37 . Exporter has to select a buyer through his operation. 4. 2.e. After choosing a mode of operation. Manufacturer exporter i.e. Sales agent / commission agent i.EXPORT PROCEDURES Exporters can chose any of the following modes of operations 1. acting on behalf of the buyer and charging commission. Buying agent i. Merchant exporter i. buying the goods form the market or form a manufacture and then selling them to foreign buyers. and he should know about the buyer to avoid some dispute.e.e. 3. He wants to enter into a contract. manufacturing the goods yourself for export.

Licenses and permits 38 . Discounts and commissions 11. 1. delivery schedule etc. mode of payment. There should not be any ambiguity regarding the exact specifications of goods and terms of sale including export price. as relevant important conditions of the trade deal. Terms of Delivery 6. export contract should be carefully drafted incorporating comprehensive but in précis terms. type of packaging. storage and distribution methods. it is necessary to enter into an export contract with the overseas buyer. Product. labeling and marking 9. port of shipment. standards and specifications 2. Total value of the contract 5. For this purpose. Quantity 3. The different aspects of an export contract are enumerated as under. Taxes. Inspection 4. Period of delivery / shipment 8. Packing. duties and charges 7.ENTERING INTO EXPORT CONTRACT In order to avoid disputes. Terms of payment – Amount / mode and currency 10.

Guarantee 15. He should also be aware about the cheapest mode of sending samples.Arbitration SENDING / EXPORTING SAMPLES As the overseas buyers generally insist for the samples before placing confirmed orders. In this connection it is advised that the postal channel be comparatively cheaper than sending samples by air.12. While sending samples through postal channel due regard should be given to weight and dimension of the post parcels as postal authorities have prescribed maximum weight and dimension for the post parcels the same may be sent by air.Force major of excuse for Non – performance of contract 16.Remedies 17. it is essential that the samples are attractive.Insurance 13.Documentary requirements 14. Beside. distinction has been made between export of samples and gift 39 . So far as the government policy regarding export of samples is concerned. the exporter should know the government policy and procedures for export of samples form India. informative and have retention and reminder value.

After receiving the sample. Date of discharge 9. Place of loading 4.parcels. Name and address of the buyer 2.Payment terms 40 . Description of the product a. buyer will give a purchase order following are mentioned. 1. Place of dispatch 5. Date of order 8. Colour b. Delivery terms 10. Size c. Quantity 3. Packing instruction 7. Name of the destination 6.

Specific policies 3. Schemes are 1. Special schemes The other guarantees which banks can offer to the concern ECGC. Bank guarantee for loans in foreign currencies. Standard policies 2. Advance payments guarantees 3.EXPORT CREDIT INSURANCE Exports credit insurance protects the concern from the consequences of the payment risk. both political and commercial. Financial guarantees 4. It enables the concern to expand their overseas business without fear or loss. Bank guarantees for payment of retention money 4. 41 . The concern can obtain export credit insurance from the export credit and Guarantee Corporation of Indian limited. 1. In order to provide export credit insurance the following covers are issued by ECGC. Bid bonds 2. Further it creates favourable climber under which the concern can hope to get timely and liberal credit facilities form the banks at home.

the letter to the bank should be enclosed with the documents as prescribed in the letter of credit. Following documents are generally required by bank to negotiate or collect necessary payment from abroad and by the exporter. Commercial invoice including one copy duly certified by the customs. Buyer and sellers negotiate for purchase and sale of goods. if any or stipulated in the export order or such documents which enable the buyer to take delivery of goods and the documents required by the exporter to claim export assistance. 42 .MECHANISM OF A LETTER OF CREDIT A letter of credit is a very common and familiar instrument in setting payments between the buyer and the seller. 1. The number of companies should be the same as specified by the buyer plus two additional copies. sellers demanding DOCUMENTS REQUIRED FOR PAYMENTS Where the documents are drawn under a letter of credit. Full set of Bill of Landing / Airway bill 3. if any. Bills of exchange 2. in case where the particulars furnished in GR form agree with those indicated in the copy of invoice produced by the exporter and the value of the invoice agrees with the value of goods passed for shipment by customs. Invoice not certified by the customers may also be acceptable.

named or describe. 4.Cash or the buyer’s banker’s letter of credit as guarantee for payment before they undertake shipment. GSP / APR certificate etc. in any 5. whereby a bank act in at the request and on the instructions of a customer (the applicant for the credit) or on its own behalf is to make payment to or to the order of a third party (the beneficiary) or to accept and pay bills of exchange drawn by the beneficiary. Banks handling documents under a credit are guided by the UCPDC rules. 43 . In order to bring uniformity in matters pertaining to documentary credits. Original letter of credit. A letter of credit reinforces the buyers integrity by adding to it his bankers undertaking by the baker to pay his seller a certain sum of money on presentation of documents evidencing shipment of specified goods and subject to compliance with the stipulated terms and conditions. Customs invoice / consular invoice 6. wherein a documentary credit has been defined as any arrangement. the International Chamber of Commerce (ICC) have published as set of Rules (called UCPDC). authorized another bank to effect such payment or to accept and pay such bills of exchange or authorized another bank to negotiate against stipulated documents and compliance with stipulated terms and condition. Certificate or origin. however.

Where as it is very negligible in other countries for obvious reasons. Other documents like certificate of analysis / inspection certificate. Packing list 9. GR / PP forms 10. a single call for 250 papers and 56 signatures from an exporter. According to a survey conducted FCCI. It may be sometime easy to get export market for the product but it is difficult to comply with the procedural prerequisites on time. THE PROCEDURAL COMPLIANCE OF EXPORTS In India. etc. 44 . Insurance policy / certificate with complete set 8. Banks certificate of export realization in the prescribed form 11. declaration to ECGC. Foreign exchange declaration forms i.7. currently most of the garments industry and SSI units try their best to enter into export marketing probably with a view to spread their wings wider in the globe or to avail facilities attended to exporters to earn foreign exchange to meet their import bills and thereby overcome the currently fluctuation. Too much paperwork cause undoes delay in completing one export transaction in our country.e. The execution of the paper work is prevailing in India and an exporter has to fall in line with an complete the formalities if it is really interested to carry out the international business transaction.

They treated me more like friends rather than trainee and gave me all the possible information and help necessary for the training. 45 . Through I just had a bird eye’s view of the industry it was still a very nice experience. The officials at KALAIMAGAL TEXTILES were friendly and helpful. all our session of discussion were very interactive.CONCLUSION It conclude that our intuitional training at KALAIMAGAL TEXTILES was very helpful. informative and interactive.

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