INTERNSHIP REPORT

ON

IMPORT EXPORT PROCEDURE

UNDER THE ABLE GUIDANCE OF
OCM PRIVATE LIMITED,
AMRITSAR

UNIVERSITY SCHOOL OF FINANCIAL STUDIES

GURU NANAK DEV UNIVERSITY
IN PARTIAL FULFILLMENT OF THE
REQUIRMENT FOR THE DEGREE
MASTER OF BUSINESS ADMINISTRATION

(2019-2021)
CERTIFICATE
 DECLARATION

SR.NO TITLE PAGE NO.

1. Company Profile 6–7

I, Amrit kaur hereby declare that the project report, entitled IMPORT
AND EXPORT PROCEDURE OF OCM PVT LTD, Amritsar.”,
2.submitted for the award of the degree of Master of Business
Introduction 8 – 32administration
of Guru Nanak Dev University Amritsar, is a bonafide research work and
all the sources used to complete this project are duly acknowledged. In case
the project report or any part of it is found to be copied or quoted without
3.reference,
Review
I shallof
beLiterature 33 – 40 arising
solely held accountable for the repercussions
there from.

4. Research and Methodology 41 – 44

5. Analysis of data 45 – 64
AMRIT KAUR
ROLL NB: 27641982912
6. Conclusion and Suggestions 65 – 66
CLASS: MBA FINANCE
DEPT: UNIVERSITY SCHOOL OF
7. Bibliography 67 -FINANCIAL
69 STUDIES

8. Website 70

9. ANNEXURE 71- 75

OCM WITH OTHER INITIATIVES

OCM Private Limited (formerly known as OCM India Limited) began its
journey as a manufacturer in the textile field in 1924 and forayed into worsted
fabrics in 1972. Today, the Company has an extensive product range. From
high quality all wool and wool-blended worsted fabrics to ready-to-wear
garments including various wool based accessories and other fabric products
as well. It is the first integrated worsted unit in India and was awarded the
prestigious ISO 9001 certification. Today, the Company's ownership lies with
the promoters of the Donear Group. The company has its manufacturing
facility in Amritsar, Punjab, India and its Corporate Office in Delhi, India.
The Company has a sprawling 37 acre complex that houses a new age plant
with an annual capacity of 6 million meters of fabric and an employee base of
1,500. OCM, one of India’s largest fabric manufacturers, has moved onto a
new a charter of transformations across manufacturing, product development
and in revitalising the well reputed OCM brand in the Indian market to
strengthen its business in India and in overseas markets. OCM is the umbrella
brand name for its extensive range of fabrics for men’s suiting, jacketing ,
trousering , and shirting and a vibrant Women’s Wear range under the brand
name Women’s Exclusives (We) introduced in 2014. Lightweight woolen
blends, textures and colours in the new collections to meet the needs of the
modern Indian woman, be it for western formal wear, social or ceremonial
 wear, would constitute a strategic priority for OCM going forward. The OCM
Quality Assurance Laboratory has successfully obtained accreditation from
NABL - National Accreditation Body for Testing and Calibration
Laboratories for fabric tests in accordance with international standard ISO
17025: 2005 in 2015.

CONTENT

OCM PRIVATE LIMITED COMPANY, is an entity incorporated on 28 August 1922 under

Ministry of Corporate Affairs (MCA). OCM PRIVATE LIMITED COMPANY is also an
entity listed under Class as a Private organization having Registration Number for the
Company or Limited Liability Partnership as 38.
OCM PRIVATE LIMITED COMPANY is a Non-govt company and further OCM PRIVATE
LIMITED COMPANY is Classified as a Company limited by Shares. The concerned entity is
incorporated and registered under its relevant statute by the Registrar of Companies (i.e.
R.O.C), RoC-Chandigarh. The official address for the Registered office of the organization in
question i.e. OCM PRIVATE LIMITED COMPANY is OCM ESTATE, G.T. ROAD,
CHHEHARTA, Amritsar. AMRITSAR (Amritsar) PB 143001 IN.
As per the information with Registrar of Companies, RoC-Chandigarh under Ministry of
Corporate Affairs(MCA), OCM PRIVATE LIMITED COMPANY has a corporate
Identification Number i.e. CIN as U17121PB1922PTC000038 and is a Private Entity i.e. a
Company limited by Shares having an Authorised Share Capital of Rs. 1,200,000,000 and Paid
up Share Capital of Rs. 1,103,000,060 having 0 Members and is currently Unlisted
organization.
OCM PRIVATE LIMITED COMPANY's main objective is Spinning, weaving and finishing
of textiles. and work to be done under the same is Spinning, weaving and finishing of textiles..
The latest Annual General Meeting of OCM PRIVATE LIMITED COMPANY was last held
on 10 June 2017 and the Balance sheet was last updated on 31 March 2017.
Directors are basically the people or the force running the Entity i.e. the Decision makers of the
concerned organization and the Directors of OCM PRIVATE LIMITED COMPANY
are Satrajit Siva Bhattacharya, Sanjay Balmukund Todi, Vikram Mahaldar, Nitin Jain,
Rajendra Vishwanath Agarwal & Su Cheng Yeo. As per the Contact information with the
MCA, the email address in the Registrar of Companies (R.O.C) records for the above entity is
raj.arora@ocm.in.
The Current Status of the OCM PRIVATE LIMITED COMPANY as per MCA Records is -
Active.
 ACKNOWLEGMENT
BRAND ROSTER

A project to conduct a study, in this aspect serves as a bridge between

theoretical principles and practical working. The success and final outcome of
this project requires a lot of guidance and assistance from many people and we
are extremely privileged to have got all this along the completion of our project.

I owe my deepest gratitude to DR JASPAL SINGH, Assistant Professor,

University School of Financial Studies, who motivate me to conduct this study
by imparting a sound theoretical base and supervised my work. His able
guidance and ever encouraging attitude throughout the study proved to be an
asset in accomplishing this task. Without his profound knowledge and deep
insight and valuable critical comments this study would have not been reached
to its present form.

OCMtoPvt.
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fabrics.
improve our hard and soft skills. All the staff members in the company are very
supportive and ready to help at any time.

I want to thank all the respondents who spare their valuable time in answering
my questionnaire.
 ABSTRACT

In this project, titled “A STUDY ON FINANCIAL PERFORMANCE USING

RATIO ANALYSIS AT OCM PRIVATE LTD”. This aim is to analysis the
liquidity and profitability position of the company using the financial tools. This
study based on financial statements such as Ratio Analysis, Comparative
balance sheet. By using this tools combined it enables to determine in an
effective manner. The study is made to evaluate the financial position, the
operational results as well as financial progress of a business concern. This
study explains ways in which ratio analysis can be of assistance in long-rang
planning, budgeting and asset management to strengthen financial performance
and help avoid financial difficulties. The study not only throws on the financial
position of a firm but also serves as a stepping stone to remedial measures for
OCM Private Ltd. This project helps to identify and give suggestion the area of
weaker position of business transaction in “OCM PRIVATE LTD”.

CHAPTER 1
OCM India Limited, popularly known as OCM, is a part of WL Ross Group. OCM
began its illustrious pursuit 80 years ago, with the manufacture of handmade carpets
and carpet yarn. The company began its foray into worsted fabrics in 1972. Today
the name, OCM, stands for reputed all-wool and wool-blended worsted fabrics. The
production capacity of OCM is an
enviable 8.4 million meters per annum.
 OCM is the first composite worsted unit in India awarded with the prestigious ISO
9001 certification.

The Company has a sprawling 37 acre complex that houses a new-age plant
with an annual capacity of 8 million meters of fabric and an employee base of
1,500. The Company’s ownership lies with a global private equity fund
management company WL Ross & Co. LLC, based in New York, U.S.A., and
HDFC Ltd, India. OCM has its Corporate Office in District Centre, Jasola,
Delhi, India. OCM, one of India’s largest fabric manufacturers, has moved
onto a new charter of transformations across manufacturing, product
development and in revitalising the well reputed OCM brand, in the Indian
market to strengthen its business in India, and the overseas markets. The
product design function is at the forefront of global styling with design offices
in Torino, Italy and one in the plant complex. Today, the Company has an
extensive product range of high quality all-wool and wool-blended worsted
fabrics to ready-to-wear garments for men and women.

OCM Private limited is in the business of manufacturing worsted fabrics. The

company has an extensive wool based product range. It is the second largest
manufacturer of worsted fabrics in the country. The company's product basket
comprises of 5 products, namely Ferrara, OCM Gold Collection, OCM Style, Siena
and the latest addition Grado. The products are sold across all states in India and in
countries like Nepal, Indonesia, Singapore, the Gulf countries, Europe, and the
Middle East, among others.

MANUFACTURING
The Company has its manufacturing facility in Amritsar, Punjab, India. The
Company has a sprawling 37 acre complex that houses a new-age plant with an
annual capacity of 8 million meters of fabric and an employee base of 1,200.
NETWORK
The company's dispersed manufacturing facilities are complemented with a strong
product throughput, facilitated by a robust distribution network of 12 Agents 50
Wholesalers, 1500 retail points. With a view to reach its products deeper into the
country, direct selling has been extended to rural villages. OCM is headquartered in
Delhi. The company's branch offices are located across 5 cities in India.

VISION AND MISSION

VISION
Vision To become the fastest growing player in the fashion fabric market through
acquisitions and organic expansion.

MISSION
Mission To become the first choice of consumers of “NEW” India for superior
quality fabrics, apparels and accessories.

VALUES
Respect for people
We treat individuals with dignity and respect. We continue to be honest, open and
ethical in all our interactions with dealers, distributors, retailers, suppliers,
shareholders, customers and with each other.
Consumers delight
We maximizing that our business can succeed only if we can create and keep
customers. We manufacture products that offer value for money, which are
differentiated and can make every customer smile.

Innovative
We are constantly looking for that ‘never-before’ character in our product offerings
and processes for the customer’s total satisfaction.

Integrity
People at every level are expected to have steadfast commitment to ‘the given word’.
Anything less is unacceptable. We maintain honesty and the highest ethical
standards in conduct of work in every sphere. We comply with applicable
government laws and regulations in the geographies where we are present.

Leadership
We strive to create a pipeline of quality leadership across functions through
delegation and mentoring. Our conduct must be a model to all those who work with
us.

Excellence
We push the envelope to excel in every act, every decision – always better than the
last time round.
Seek support, give support
Close connect with each other has been a long – cherished value. This leads to
freely seeking and extending help to each other.

The right environment

It is our responsibility to create an environment that helps employees realize their
full potential.

Transparency and shareholder value

We are committed to be driven by our conscience and regulatory standards, to
deliver value to our shareholders, commensurate with our management and financial
strength.

THE PROMOTER

Board of Directors
The efficient functioning of this reputed company rests with the following
personalities.
Mr. Rajendra Vishwanath Agarwal, Chairman
Mr. Vikram Mahaldar, Managing Director
Mr. Sanjay Balmukund Todi, Director
Mr. Satrajit Bhattacharya, Director
Management Team
 Mr. Ashok Handa, COO
 Mr. Rajesh Sharma, Deputy Plant Head
 Mr. Ravinder Nath Tickoo, Head – Wool Procurement Cell
 Mr. Raj Kumar Arora, Head – Commercial & Company Secretary
 Mr. Ashish Ranjan Singh, (M.D. Secretariat), Manager – MIS & Costing
 Mr. Yashpal Kalra, Head – Comptroller, process control and quality assurance
 Mr. Sandeep Suri, Head – Domestic Sales
 Mr. Bhupinder Singh, Head – New Business Development
 Mr. Anand Bharadvaj, Head – Distribution & Customer Support
 Ms. Deepti Vohra, Head – Merchandising & Institutional Sales
 Mr. Avisek Chatterjee, Head – Garment Sale
 Ms. Ayesha Prasad Narain, Senior Manager – Marketing
 Mr. Sunil Sharma, Head – Information Technology
 Mr. Pritpal Singh, Head – Product Development
 Mr. Mohinder Pal Singh, Head – Spinning 13
 Mr. Rajeev Wilson, Manager – Dyeing
 Mr. Yogesh Tiwari, Head – Weaving
 Mr. Paramjit Bharadvaj, Head – Finishing & Mending
 Mr. Rajesh Sharma, Head – Engineering

The most fascinating fact about the team is that though individual member of the
team functions independently and professionally in their own areas but actually they
are very closely knit by a bond of fellow feeling. All the members of the Team OCM
happily co-exist as if family members.

 OCM is promoted by Mr. Rajendra V Agarwal and Mr. Ajay V

Agarwal, Mumbai based industrialists.

INFORMATION TECHNOLOGY (IT) BACKBONE

An efficient information technology network is necessary for a dynamic Textile
company where the market demands change at a faster rate. At OCM, the integration
of information technology transpires on a continuous basis. This ensures that the
company responds to changing market place realities faster than its competitors and
that its products reach retail shelves just when they are required. In turn, this
enhances brand loyalty and retains customers. A successful implementation of the
ERP in the offices, factories and retail outlets increased the company’s overall
efficiency. It enabled single-point data entry and multi-point information access. The
status of raw materials, packing materials, finished goods, indents and sales
information gets constantly updated through ERP. This has become possible due to
the Point to Point Leased Line connections.

As OCM is growing rapidly, the company has implemented Standard ERP system.
This helps in providing Real-Time information to the Management, which facilitates
to take quick decision. The information is also available through email and Mobile
phones. Sales Forecasting, Demand Planning, Process Management, Supply Chain
Management, Primary and Secondary Sales, I-Supplier, I-Expenses and I-Sales are
an integral part of the Standard ERP system.
OCM adopts the latest Technology for IT and communication system.

SALES AND DISTRIBUTION NETWORK OUR MARKETING &

DISTRIBTUION NETWORK
Wide, penetration and all encompassing. That is how OCM has planned its
distribution network. The success of OCM has been largely due to its superior
products that have reached the consumers even in the remotest regions of the country
and abroad.

Current Distribution Infrastructure

:  2 Zones

 12Agents
 50 Direct Wholesalers
 1,500 Retail outlets 16 1
 THE HISTORY OF OCM

1924 Oriental carpet manufactures set up by the British in Amritsar, the wool center of
India.

1924- Mule spindles set up too caber to the carpet unit looms added surplus yarn
1970 woven in the heavy fabrics army uniform, blankets etc. Worsted spinning added
to cater to the surplus weaving capacity. Overall expansion of OCM- mainly
towards worsted. OCM taken over by rally’s brothers then a port of UK’s Slater
Walker Empire.

1970 OCM taken over by the S.K. Birla’s and they started woollen suitings.

1972- The unit expanded and modernized in a phrased manner .Modern stubble less
1973 looms installed and handmade carpets discontinued. It established itself as one
of the leading brands of in dia.

1982- This company was merged with Shree Digvijay Woollen Mills headed by S.K.
1983 Birla and name was changed by Birla VXL ltd.

Up to The company had made a strong international presence and also they had been
2006 certified under ISO.
 OCM Woollen mills, popularly known as OCM is a front-runner decision of Birla
VXL Ltd. It was established in Amritsar in 1924 by a British Company for the
manufacture of hand knotted carpets for the supply to its subsidiary company, the
East India Carpet Company Ltd. OCM carpets have enjoyed the highest goodwill
for their fine quality and the vibrant designs both in the home and foreign market
and that is from where it got its name OCM-Oriental Carpet Manufacturers. The
secondary reason for the establishment of OCM woollen mills was a shortage and
need for uniform and blankets by the Britishers during the Second World War. In
1972, the British company divested its holdings and the company was Indianized.
Subsequently, Sh.S.K.Biria belonging to the famous Biria family assumed its
control and since then OCM has prig pressed a lot with its modernization and
expansion plans.

Today, OCM is a Rs. 225 crores turnover company manufacturing the finest
quality wool and wool blended suiting, tweeds, shawals, blankets and other
related products. OCM range of all wool fancies, crepe, flannel gabardine, cool
wool, cavalry twills, A tweeds, jacquard coat material and premium kashmiri
suit lengths well known as the collection of its polyester-wool blends. OCM
woollen mills is one of the operating divisions Biria VXL Ltd. With is engaged
diverged activities such as textiles engineering edible oils, cement, salt and
chemicals. Digjam is another famous brand of suiting being manufactured by
Biria VXL Ltd., this plant being located at Jamnagar, Gujrat.
OCM has always kept pace with the latest technology and production
techniques in its line of the products. Various modernization and expansion
programs have been implemented during the last several years of upgradation
of quality and capacity. In 1987, OCM has invested over Rs. 16 cr for
modernization and expansion of its facilities at Amritsar. Several
existing buildings have been renovated and new buildings have been
constructed. In this period between 1994 to1996 company gain invested huge
amount and established imported machinery at Amritsar. The increased quality
of woollen products at OCM. The pride of the place is a well equipped and
highly acclaims research and development department. Today OCM has
become a symbol of quality units. In fact, OCM is the first worsted mill in
India to get the prestigious ISO 9001 certification.
OCM is amongst the largest woollen/ worsted fabric manufacturers in the
country. It enjoys the highest reputation not only for its civil material but also
for its products catering to defence requirements.

THE PLANT

Company has a sprawling 37 acre ‘new generation’ complex with latest

imported machines and contemporary processes. In fact OCM has distinct
advantage of possessing an in-house single roof facility for every process –
right from fibre to fabric.The making of fabric of substance from delicate fibres
is as precise as any scientific process. Watching the raw material through
various stages of recombing, spinning, weaving, dyeing and finishing makes an
unforgettable experience.
THE PRODUCTION PROCESS FLOW CHART
WOOL
DYE HOUSE
NEW SPINNING
NEW SPINNING
(SINGLE YARN) WHITE YARN
POST SPINNING
POST SPINNING
(DOUBLE YARN)
DYE HOUSE WEAVING
WEAVING
FINISHING FABRIC DY
INSPECTION
WAREHOUSE
DISPATCH
 IMPORT AND EXPORT

International trade is one of the hot industries of the new millennium. But it's not
new. Think Marco Polo. Think the great caravans of the biblical age with their
cargoes of silks and spices. Think even further back to prehistoric man trading
shells and salt with distant tribes. Trade exists because one group or country has
a supply of some commodity or merchandise that is in demand by another. And
as the world becomes more and more technologically advanced, as we shift in
subtle and not so subtle ways toward one-world modes of thought, international
trade becomes more and more rewarding, both in terms of profit and personal
satisfaction.

Types of Import/Export Business:

Export management company (EMC):

An EMC handles export operations for a domestic company that wants to sell its
product overseas but doesn't know how (and perhaps doesn't want to know how).
The EMC does it all--hiring dealers, distributors and representatives; handling
advertising, marketing and promotions; overseeing marking and packaging;
arranging shipping; and sometimes arranging financing. In some cases, the EMC
even takes title to the goods, in essence becoming its own distributor. EMCs
usually specialize by product, foreign market or both, and--unless they've taken
title--are paid by commission, salary or retainer plus commission.

Export trading company (ETC):

While an EMC has merchandise to sell and is using its energies to seek out
buyers, an ETC attacks the other side of the trading coin. It identifies what
foreign buyers want to spend their money on and then hunts down domestic

21
sources willing to export. An ETC sometimes takes title to the goods and
sometimes works on a commission basis.
Import/export merchant:
This international entrepreneur is a sort of free agent. He has no specific client
base, and he doesn't specialize in any one industry or line of products. Instead,
he purchases goods directly from a domestic or foreign manufacturer and then
packs, ships and resells the goods on his own. This means, of course, that
unlike the EMC, he assumes all the risks (as well as all the profits).

IMPORTS OF OCM PRIVATE LTD

Introduction
An import of a good occurs when there is a change of ownership from a non-
resident to a resident; this does not necessarily imply that the good in question
physically crosses the frontier. However, in specific cases national accounts
impute changes of ownership even though in legal terms no change of
ownership takes place (e.g. cross border financial leasing, cross border
deliveries between affiliates of the same enterprise, goods crossing the border
for significant processing to order or repair). Also smuggled goods must be
included in the import measurement.
Definition:
Imports are foreign goods and services bought by residents of a country.
Residents include citizens, businesses and the government. It doesn't matter
what the imports are or how they are sent. They can be shipped, sent by email
or even hand-carried in personal luggage on a plane. If they are produced in a
foreign country and sold to domestic residents, they are imports.

22
Importance to the Importer
1. In the importer’s country, the customs do not normally open the packages. It
helps the importer to get speedy delivery of goods
2. Lot of unnecessary hardship which importer faces once the packages are
opened is avoided

23
Import Procedure :
Import trade refers to the purchase of goods from a foreign country. The
procedure for import trade differs from country to country depending upon the
import policy, statutory requirements and customs policies of different
countries. In almost all countries of the world import trade is controlled by the
government. The objectives of these controls are proper use of foreign
exchange restrictions, protection of indigenous industries etc. The imports of
goods have to follow a procedure. This procedure involves a number of steps.
The steps taken in import procedure are discussed as follows:
(i) Trade Enquiry:
The first stage in an import transaction, like any other transaction of purchase
and sale relates to making trade enquiries. An enquiry is a written request from
the intending buyer or his agent for information regarding the price and the
terms on which the exporter will be able to supply goods. The importer should
mention in the enquiry all the details such as the goods required, their
description, catalogue number or grade, size, weight and the quantity required.
Similarly, the time and method of delivery, method of packing, terms and
conditions in regard to payment should also be indicated.
In reply to this enquiry, the importer will receive a quotation from the
exporter. The quotation contains the details as to the goods available, their
quality etc., the price at which the goods will be supplied and the terms and
conditions of the sale.

24
(ii) Procurement of Import Licence-The import trade in India is
controlled under the Imports and Exports (Control) Act, 1947. A person or a
firm cannot import goods into India without a valid import licence. An import
licence may be either general licence or specific licence. Under a general
licence goods can be imported from any country, whereas a specific or
individual licence authorises to import only from specific countries.
For the purpose of issuing licence, the importers are divided into three
categories:
(a) Established importer,
(b) Actual users, and
(c) Registered exporters, i.e., those import under any of the export promotion
schemes.
In order to obtain an import licence, the intending importer has to make an
application in the prescribed form to the licensing authority. If the person
imported goods of the class in which he is interested now during the basic
period prescribed for such class, he is treated as an established importer.

25
An established importer can make an application to secure a Quota Certificate.
The certificate specifies the quantity and value of goods which the importer
can import. For this, he furnishes details of the goods imported in any one year
in basic period prescribed for the goods together with documentary evidence
for the same, including a certificate from a chartered accountant in the
prescribed form certifying the c.i.f. value of the goods imported in the selected
year. The c.i.f. value includes the invoice price of the goods and the freight
and insurance paid for the goods in transit. The quota certificate entitles the
established importer to import upto the value indicated therein (called Quota)
which is calculated on the basis of past imports. If the importer is an actual
user, that is, he wants to import goods for his own use in industrial
manufacturing process he has to obtain licence through the prescribed
sponsoring authority.
The sponsoring authority certifies his requirements and recommends the grant
of licence. In case of small industries having a capital of less than Rs. 5 lakhs,
they have to apply for licences through the Director of Industries of the state
where the industry is located or some other authority expressly prescribed by
the Government.
Registered exporter importing against exports made under a scheme of export
promotion and others have to obtain licence from the Chief Controller of
Exports and Imports. The Government issues from time to time a list of
commodities and products which can be imported by obtaining a general
permission only. This is called as O.G.L. or Open General Licence list.
(iii) Obtaining Foreign Exchange:

26
After obtaining the licence (or quota, in case of an established importer), the
importer has to make arrangement for obtaining necessary foreign exchange
since the importer has to make payment for the imports in the currency of the
exporting country.
The foreign exchange reserves in many countries are controlled by the
Government and are released through its central bank. In India, the Exchange
Control Department of the Reserve Bank of India deals with the foreign
exchange. For this the importer has to submit an application in the prescribed
form along-with the import licence to any exchange bank as per the provisions
of Exchange Control Act.
The exchange bank endorses and forwards the applications to the Exchange
Control Department of the Reserve Bank of India. The Reserve Bank of India
sanctions the release of foreign exchange after scrutinizing the application on
the basis of exchange policy of the Government of India in force at the time of
application.
The importer gets the necessary foreign exchange from the exchange bank
concerned. It is to be noted that whereas import licence is issued for a
particular period, exchange is released only for a specific transaction. With
liberalisation of economy, most of the restrictions have been removed as rupee
has become convertible on current account.
(iv) Placing the Indent or Order:
After the initial formalities are over and the importer has obtained the licence
quota and the necessary amount of foreign exchange, the next step in the
import of goods is that of placing the order. This order is known as Indent. An
indent is an order placed by an importer with an exporter for the supply of
certain goods.

27
It contains the instructions from the importer as to the quantity and quality of
goods required, method of forwarding them, nature of packing, mode of
settling payment and the price etc. An indent is usually prepared in duplicate
or triplicate. The indent may be of several types like open indent, closed indent
and Confirmatory indent.
In open indent, all the necessary particulars of goods, price, etc. are not
mentioned in the indent, the exporter has the discretion to complete the
formalities, at his own end. On the other hand, if full particulars of goods, the
price, the brand, packing, shipping, insurance etc. are mentioned clearly, it is
called a closed indent. A confirmatory indent is one where an order is placed
subject to the confirmation by the importer’s agent.
(v) Despatching a Letter of Credit:
Generally, foreign traders are not acquainted to each other and so the exporter
before shipping the goods wants to be sure about the creditworthiness of the
importer. The exporter wants to be sure that there is no risk of non-payment.
Usually, for this purpose he asks the importers to send a letter of credit to him.
A letter of credit, popularly known as ‘L/C or ‘L.C is an undertaking by its
issuer (usually importer’s bank) that the bills of exchange drawn by the foreign
dealer, on the importer will be honoured on presentation upto a specified
amount.
(vi) Obtaining Necessary Documents:
After despatching a letter of credit, the importer has not to do much. On
receipt of the letter of credit, the exporter arranges for the shipment of goods
and sends Advice Note to the importer immediately after the shipment of
goods. An Advice Note is a document sent to a purchaser of goods to inform
him that goods have been despatched. It may also indicate the probable date
on which the ship is expected to reach the port of destination.

28
The exporter then draws a bill of exchange on the importer for the invoice
value of goods. The shipping documents such as the bill of lading, invoice,
insurance policy, certificate of origin, consumer invoice etc., are also attached
to the bill of exchange. Such bill of exchange with all these attached
documents is called Documentary Bill. Documentary bill of exchange is
forwarded to the importer through a foreign exchange bank which has a branch
or an agent in the importer’s country for collecting the payment of the bill.
There are two types of documentary bills:
(a) D/P, D.P. (or Documents against payment) bills.
(b) D/A, D.A. (or Document against acceptance) bills.
If the bill of exchange is a D/P bill, then the documents of title of goods are
delivered to the drawee (i.e., importer) only on the payment of the bill in full.
D/P bill may be sight bill or usance bill. In case of sight bill, the payment has
to be made immediately on the presentation of the bill. But usually a grace
period of 24 hours is granted.
(vii) Customs Formalities and Clearing of Goods:
After receiving the documents of title of the goods, the importer’s only
concern is to take delivery of the goods, when the ship arrives at the port and
to bring them to his own place of business. The importer has to comply with
many formalities for taking delivery of goods. Unless the following mentioned
formalities are complied with, the goods lie in the custody of the Custom
House.
(a) To obtain endorsement for delivery or delivery order:

29
When the ship carrying the goods arrives at the port, the importer, first of all,
has to obtain the endorsement on the back of the bill of lading by the shipping
company. Sometimes the shipping company, instead of endorsing the bill in
his favour, issues a delivery order to him. This endorsement of delivery order
will entitle the importer to take the delivery of the goods.
The shipping company makes this endorsement or issues the delivery order
only after the payment of freight. If the exporter has not paid the freight, i.e.,
when the bill, of lading is marked freight forward, the importer has to pay the
freight in order to get green signal for the delivery of goods.

(b) To pay Dock dues and obtain Port Trust Dues Receipts:
The importer has to submit two copies of a form known as ‘Application to
import’ duly filled in to the ‘Lading and Shipping Dues Office’. This office
levies a charge on all imported goods for services rendered by the dock
authorities in connection with lading of goods. After paying the necessary
charges, the importer receive back one copy of the application to import as a
receipt ‘Port Trust Dues Receipt’.
(c) Bill of Entry:
The importer will then fill in form called Bill of Entry. This is a form supplied
by the custom office and is to be filled in triplicate. The bill of entry contains
the particulars regarding the name and address of the importer, the name of the
ship, packages number, marks, quantity, value, description of goods, the name
of the country wherefrom goods have been imported and custom duty payable.

30
The bill of entry forms are of three types and are printed in three colours-
Black, Blue and Violet. A black form is used for non-dutiable or free goods,
the blue form is used for goods to be sold within the country and the violet
form is used for re-exportable goods, i.e., goods meant for re-export. The
importer has to submit three forms of bill of entry along-with Port Trust Dues
Receipt to the customs office.
(d) Bill of Sight:
If the importer is not is a position to supply the detailed particulars of goods
because of insufficiency of information supplied to him by the exporter, he has
to prepare a statement called a bill of sight. The bill of sight contains only the
information possessed by the importer along-with a remark that he is not in a
position to give complete information about the goods. The bill of sight
enables him to open the package and examine the goods in the presence of
custom officer so as to complete the bill of entry.
(e) To pay Customs or Import Duty:
There are three types of imported goods:
(i) Non dutiable or free goods,
(ii) Goods which are to be sold within the country or which are for home
consumption, and
(iii) Re-exportable goods i.e. goods meant for re-export. If the goods are duty
free, no import duty is to be paid at the custom office.
Custom authorities will permit the delivery of such goods after usual
examination of the goods. But if the goods are liable for duty, the importer has
to pay custom or import duty which may be based on weight or measurement
of goods, called Specific Duty or on the value of imported goods Ad-valorem
Ditty.

31
There are three types of import duties. On some goods quite low duties are
levied and they are called revenue duties. On some others, quite high duties
are charged to give protection to home industries against foreign competition.
While goods imported from certain nations are given preferential treatment for
the levy of import duties and in their case full protective duties are not
charged.
(f) Bonded and Duty paid Warehouses:
The port trust and custom authorities maintain two types of warehouses-
Bonded and Duty paid. These warehouses are situated near the dock and are
very useful to importers who do not have godown of their own to store the
imported goods or who, for business reasons, do not wish to carry them to
their own godowns.
The goods on which the duty has already been paid by the importer can be
kept in the duty paid warehouses for which a receipt called ‘warehouse
receipt’ is issued to him. This receipt is a document of title and is transferable.
The bonded warehouses are meant for goods on which duty has been paid by
the importer. If the importer cannot pay the duty, he may keep the goods in
Bonded warehouses for which he is issued a receipt, called ‘Dock Warrant’.
Dock Warrant, also like warehouses receipt, is a document of title and is
transferable.
The bonded warehouses are used by the importer when:
(i) He has no godown of his own.
(ii) He cannot pay the duty immediately.
(iii) He wants to re-export the goods and thereby does not want to pay the
duty.
(iv) He wants to pay the duty in installments.

32
A nominal rent is charged for the use of these warehouses. One special
advantage of these warehouses is that the importer can sell the goods and
transfer the title of goods merely by endorsing warehouse receipt or dock-
warrant. This will save the importer from the trouble and expenses of carrying
the goods from the warehouses to his godown.
(g) Appointment of clearing Agents:
By now we understand that the importer has to fulfill many legal formalities
before he can take delivery of goods. The importer may take the delivery of
the goods himself at the port. But it involves much of time, expenses and
difficulty. Thus, to save himself from the botheration of complying with all the
complicated formalities, the importer may appoint clearing agents for taking
the delivery of the goods for him. Clearing agents are the specialised persons
engaged in the work of performing various formalities required for taking the
delivery of goods on behalf of others. They charge some remuneration on
performing these valuable services.
(viii) Making the Payment:
The mode and time of making payment is determined according to the terms
and conditions as agreed to earlier between the importer and the exporter. In
case of a D/P bill the documents of title are released to the importer only on
the payment of the bill in full. If the bill is a D/A bill, the documents of title of
the goods are released to the importer on his acceptance of the bill. The bill is
retained by the banker till the date of maturity. Usually, 30 to 90 days are
allowed to the importer for making the payment of such bills.
(ix) Closing the Transactions:

33
The last step in the import trade procedure is closing the transaction. If the
goods are to the satisfaction of the importer, the transaction is closed. But if he
is not satisfied with the quality of goods or if there is any shortage, he will
write to the exporter and settle the matter. In case the goods have

34
e-filing of documents Goods should arrive at customs port/airport only. Most
ofcustoms procedures are computerized. E-filing of
documents is required.

Import manifest or Person in charge of conveyance’ is required to submit

Import Report Import Manifest or Import Report.

Entry Inwards Goods can be unloaded only after grant of ‘Entry

Inwards’.

Risk Management Self-Assessment on basis of ‘Risk Management System’

System (RMS) has been introduced in respect of specified goods
and importers.

Bill of Entry for home Importer has to submit Bill of Entry giving details of
consumption on goods being imported, along with required documents.
payment of customs Electronic submission of documents is done in major
duty ports.White Bill of Entry is for home consumption.
Imported goods are cleared on payment of customs duty.

Bill of Entry for Yellow Bill of Entry is for warehousing. It is also termed
Warehousing as ‘into bond Bill of Entry’ as bond is executed. Duty is
not paid and imported goods are transferred to warehouse
where these are stored. Green Bill of Entry is for
clearance from warehouse on payment of customs duty.
It is for ex-bond clearance

Noting, examination Bill of Entry is noted, Goods are assessed to duty,

and assessment examined and pre-audit is carried out. Customs duty is
paid after assessment

Bond Bond is executed if required if assessment is provisional

(PD bond) or concessional rate of customs duty is subject
tocertain post import conditions

Out of customs charge Goods can be cleared outside port after ‘Out of Customs
Charge’ order is issued by customs officer. After that,

35
Order port dues, demurrage and other charges are paid and
goods are cleared

36
 EXPORT PROCEDURE
Exporters should seriously consider having the freight forwarder handle the
formidable amount of documentation that exporting requires; freight forwarders
are specialists in this process. The following documents are commonly used in
exporting; which of them are actually used in each case depends on the
requirements of both our government and the government of the importing
country.
Importance to the Exporter
1. Once the invoice is signed by the consulate of the importing country, the
exporter is reasonably assured that there are no import restrictions in the
importer’s country for the goods and that there would be no problem in
realization of export proceeds or foreign exchange.
2. It enables prompt clearance from the customs of exporter’s country for
shipping the goods.
Importance to the Importer
1. In the importer’s country, the customs do not normally open the packages. It
helps the importer to get speedy delivery of goods
2. Lot of unnecessary hardship which importer faces once the packages are
opened is avoided.

Export Procedure:

37
STEP1: Enquiry :

The starting point for any Export Transaction is an enquiry.

 An enquiry for product should, inter alia, specify the following details or
provide the following data
 Size details - Std. or oversize or undersize
 Drawing, if available
 Sample, if possible
 Quantity required
 Delivery schedule
 Is the price required on FOB or C& F or CIF basis
 Mode of Dispatch - Sea, air or Sea/air
 Mode of Packing
 Terms of Payment that would be acceptable to the Buyer - If the buyer
proposes to open any Letter of Credit, any specific requirement to be complied
with by the Exporter
 Is there any requirement of Pre-shipment inspection and if so, by which
agency
 Any Certificate of Origin required - If so, from what agency.
STEP 2: - Proforma generation :

After studying the enquiry in detail, the exporter - be it Manufacturer Exporter

or Merchant Exporter - will provide a Proforma Invoice to the Buyer.

STEP 3: Order placement :

 If the offer is acceptable to the Buyer in terms of price, delivery and

payment terms, the Buyer will then place an order on the Exporter, giving as
much data as possible in terms of specifications, Part No. Quantity etc. (No
standard format is required for such a purchase order)
STEP 4: Order acceptance:

 It is advisable that the Exporter immediately acknowledges receipt of the

order, giving a schedule for the delivery committed.

38
STEP 5: Goods readiness & documentation:

 Once the goods are ready duly packed in Export worthy cases/cartons
(depending upon the mode of despatch), the Invoice is prepared by the
Exporter.
 If the number of packages is more than one, a packing list is a must.
 Even If the goods to be exported are excisable, no excise duty need be
charged at the time of Export, as export goods are exempt from Central Excise,
but the AR4 procedure is to be followed for claiming such an exemption.
 Similarly, no Sales Tax also is payable for export of goods.
STEP 6: Goods removal from works:

 There are different procedures for removing Export consignments to the

Port, following the AR4 procedure, but it would be advisable to get the
consignment sealed by the Central Excise authorities at the factory premises
itself, so that open inspection by Customs authorities at the Port can be avoided.
 If export consignments are removed from the factory of manufacture,
following the AR4 procedure, claiming exemption of excise duty, there is an
obligation cast on the exporter to provide proof of export to the Central Excise
authorities
STEP 7: Documents for C & F agent:

 The Exporter is expected to provide the following documents to the

Clearing & Forwarding Agents, who are entrusted with the task of shipping the
consignments, either by air or by sea.
 Invoice
 Packing List
 Declaration in Form SDF (to meet the requirements as per FERA) in
duplication
 AR4 - first and the second copy
 Any other declarations, as required by Customs
 On account of the introduction of Electronic Data Interchange (EDI)
system for processing shipping bills electronically at most of the locations -
both for air or sea consignments - the C&F Agents are required to file with
Customs the shipping documents, through a particular format, which will vary
depending on the nature of the shipment. Broad categories of export shipments

39
are:
 Under claim of Drawback of duty
 Without claim of Drawback
 Export by a 100% EOU
 Under DEPB Scheme
STEP 8: Customs Clearance:

 After assessment of the shipping bill and examination of the cargo by

Customs (where required), the export consignments are permitted by Customs
for ultimate Export. This is what the concerned Customs officials call the ‘LET
EXPORT’ endorsement on the shipping bill.
STEP 9: Document Forwarding:

 After completing the shipment formalities, the C & F Agents are

expected to forward to the Exporter the following documents:
 Customs signed Export Invoice & Packing List
 Duplicate of Form SDF
 Exchange control copy of the Shipping Bill, processed electronically
 AR4 (original duplicate) duly endorsed by Customs for having effected
the Export
 Bill of Lading or Airway bill, as the case may be.
STEP 10: Bills negotiation:

 With these authenticated shipping documents, the Exporter will have to

negotiate the relevant export bill through authorized dealers of Reserve Bank,
viz., Banks.
 Under the Generalized system of Preference, imports from developing
countries enjoy certain duty concessions, for which the exporters in the
developing countries are expected to furnish the GSP Certificate of Origin to
the Bankers, along with other shipping documents.
 Broadly, payment terms can be:
 DP Terms
 DA Terms
 Letter of Credit, payable at sight or payable at... days.

40
Step11: Bank to bank documents forwarding

 The negotiating Bank will scrutinize the shipping documents and forward
them to the Banker of the importer, to enable him clear the consignment.
It is expected of such authorized dealers of Reserve Bank to
ensure receipt of export proceeds, which factor has to be
intimated to the Reserve Bank by means of periodical Returns.
STEP 12: Customs obligation discharge:

 As indicated above, Exporters are also expected to provide proof of

export to the Central Excise authorities, on the basis of the Customs
endorsements made on the reverse of AR4s and get their obligation, on this
score, discharged.
STEP 13: Receipt of Bank certificate:
 Authorized dealers will issue Bank Certificates to the exporter, once the
payment is received and only with the issuance of the Bank Certificate, the
export transaction becomes complete.
It is mandatory on the part of the Exporters to negotiate the shipping documents
only through authorized dealers of Reserve Bank, as only through such a system
Reserve Bank can ensure receipt of export proceeds for goods shipped out of this
country.

DOCUMENTATION OF EXPORTS

Commercial Invoice
Commercial Invoice is issued by the seller to the buyer containing the terms
of the transaction like date of transaction, seller details, buyer details, value,
shipping terms and more. Customs duty is levied on the shipment usually based
on the commercial invoice raised by the seller.
Air Waybills

41
 An airway bill is a proof of shipment of goods by air. Air waybills serve as a
proof of receipt of goods for shipment by the air cargo agent, an invoice for the
air shipment, a certificate of insurance and a guide to the air cargo agent for
handling, dispatch and delivery of the consignment. A typical airway bill
contains details about the shipper and the consignee, the departure airport and
destination airport, description of the goods, sign and seal of the carrier.
Importance of Airway Bill
1. It is a contact of carriage of goods between the consignor and airlines or his
agent.
2. it act as a custom declaration form.
3. It contains details of freight and so works as a freight bill.

Packing List
There is a difference between packing note and packing list. Packing note refers
to the particulars of contents of an individual pack while packing list is a
consolidated statement of the contents of the total number of cases or packs.
A packing note contains the following details:
(a) Date of packing,
b) Number of packing note,
(c) Number of case to which it relates to,
(d) Contents of case in terms of quantity and weight,
(e) Marking numbers,
(f) Name of exporter,
(g) Name of importer,
(h) Importer’s order number,
(i) Number and date of bill of lading and
(j) Name of vessel/flight. Packing note is kept in each concerned case/pack.
Packing note and packing list are sent to the importer along with other
42
documents. If any case contains any shortfall, importer can communicate to the
exporter in which case there is shortage of goods for making good. No particular
form has been prescribed for both packing note/list. Normally, ten copies are
prepared. Two copies are sent, in advance, to the buyer, one copy along with the
documents, one to the shipping agent and the remaining are retained by the
exporter.

Bill of Lading
Bill of Lading is a document issued by the shipping company or his agent
acknowledging the receipt of cargo on board. This is an undertaking to deliver
the goods in the same order and condition as received to the consignee or his
agent on receipt of freight, the shipping company is entitled to. It is a very
important document to the exporter as it constitutes document of title to the
goods. Each shipping company has its own bill of lading. The exporter prepares
the bill of lading in the form obtained from the shipping company or agents of
shipping company. The goods can be consigned to order of the exporter, which
means the exporter can authorize someone else to receive the goods on his
behalf. In such a case, the exporter would discharge the bill of lading on its
reverse. When the bill of lading is negotiated through the bank, it would be
endorsed in favour of the bank that would endorse further to the importer, on
receipt of payment. Bill of Lading is made in signed set of 2 originals, any one of
which can give title to the goods. The shipping company also issues non-
negotiable copies (unsigned) which are not documents of title to goods but
serves the purpose of record only. The reverse side of Bill of Lading contains the
terms and conditions of the contract of carriage. The clauses on most of the bills
of lading are common. Bill of lading should be clean to facilitate the exporter to
obtain the proceeds of export without difficulty.
Main Purposes It serves three main purposes.
(A) As a document of title to the goods
(B) As a receipt from the shipping company

Bill of Exchange
Bill of exchange is used when an importer agrees to pay the exporter in future on

43
a date on or before that is mutually agreed upon. Bill of exchange is an important
written document in wholesale trade wherein large amounts of money is
involved. Bill of exchange can be classified as bill of exchange after date and bill
of exchange after sight. Bill of exchange after date is when the due date for
payment is counted from the date of drawing. Bill of exchange after sight is
when the due date for payment is counted from the date of acceptance of the bill

Letter of Credit
A letter of credit is a document-containing guarantee of a bank to make payment
to the exporter, under certain conditions and up to a certain amount, provided the
conditions contained in the letter of credit are complied with. For a detailed
presentation, reader may refer to the chapter on Export Financing
Certificate of Origin
Certificate of origin is usually requested by the Customs Authority while
clearing Customs. Certificate of Origin is used to establish the origin of the
product and is issued by the Chamber of Commerce of the Exporter’s country.
Certificate of origin usually contains the name and address of the exporter,
details of the goods, package number or shipping marks and quantity, as
applicable.

Importance to the Importer

1. In the importer’s country, the customs do not normally open the packages. It
helps the importer to get speedy delivery of goods
2. Lot of unnecessary hardship which importer faces once the packages are
opened is avoid.

RESEARCH METHODOLOGY

44
 Objectives of the Study

 To know about import and export system.

 Collection of data from import export procedure and documentation.

 To gain knowledge of import- export management.

 To study of import export documentation in OCM Pvt.Ltd.

 To understand the working of various department of OCM Pvt. Ltd.

Contributing toward processing of an import export procedure.

Need For the Study

The study is conducted to know how to generate the overseas business because
fastener industry is growing at very fast pace, as the demand for fasteners is
increasing day by day.

Also it become essential to study since presence of may players in the market
have caused a lot of competition.

Research Methodology
Research is an art of scientific investigation. In other word research is a
scientific and systematic search for pertinent information on a specific topic. The
logic behind taking research methodology into consideration is that one can have
knowledge about the method and procedure adopted for achievement of
objectives of the project. With the adoption of this others can evaluate the results
also. Its main aim is to keep the researchers on the right track.

45
.
Data Collection
Data was collected by using main two methods i.e. Primary data and Secondary
data.

Primary Data
Primary data is the data which is used or collected for first time and it is not used
by anyone in the past. There are number of sources of primary data from which
the information can be collected. I choose the following resources for my
research.

 E – mails
 Telephones
 Invoice
 Packing List

Secondary Data
Secondary data is the data which is available in readymade form and which is
already used by people for some purposes. There may be various sources of
secondary data such as-newspapers, magazines, journals, books, reports,
documents and other published information.

 Annual report of OCM

 Shipping bill
 Internet
 Invoice
 Packing List
 Journals and Publications of OCM
 Manuals and Broachers of OCM

46
 Limitations of the Study
 The study is Conducted only on Company’s office.
 Many of the Documents are very Confidential so I cannot present those
documents here.
 Limitation of time
 Not exact tool for forecasting.

DATA ANALYSIS AND INTERPRETATION OF IMPORT AND

EXPORT

1. What is the total import export of the OCM and ESSMA company in
previous year?
I
E
m
x
p
o
r
t

Interpretation:
In previous year: OCM’s total imports is 22.36 cr. and total exports is 35.7cr.
ESSMA’s total imports is 25.89 cr.and total exports is 32.92 cr.

2. What is the percentage increase in imports Of OCM and ESSMA

company from 2017 to 2019?

47
 imports

OCM
28.00% ESSMA

40.00%

Interpretation:
The pie chart of OCM & ESSMA companies. To find the 40 percentage
increase in imports from 2017 to 2019.

3. In how many of the given years were the exports more than the
imports ?

50%
45%
40%
35%
30%
Export
25%
Import
20%
15%
10%
5%
0%

Interpretation: The exports are more than the imports imply that the ratio
of value of imports to exports is less than 1.

48
4. what is the percentage of imports from 2013 to 2016?

Interpretation:
Percentage change in the import in different years .Import rises in 2014

5. What is the percentage of export from 2013 to 2016 ?

49
 Export
50%
45%
40%
35%
30% Export
25%
20%
15%
10%
5%
0%
2013 2014 2015 2016

Interpretation:
Percentage of export rises in 2015 by 45%.

Products
6. What Products are Exported by OCM?
10%
Cloth
Blanket and shawls
Yarn
35%
60% Garments

25%

50
Interpretation:
Exported products by Ocm are:
Cloth- 60%
Blanket and shawls-25%
Yarn-35%
Garments-10%

7. What are the imports by OCM?

51
 Imports
4%

6% Raw fabric
Machinery
20% Spare parts
Dyeing colours

70%

Interpretation:

Imports by Ocm are

Raw fabric-70%

Machinery-20%

Spare parts-6%

Dyeing colours-4%

8. What are the earnings from exports?

52
Interpretation:

year Cloths Blankets& Shawls Yarn Garment

s

53
 201 17cr 90lac 2.5c 20lac
9 r

202 15cr 85lac 7cr 13lac

1

9. With which countries OCM do import and Export?

Interpretation:

OCM do import and export with countries are:

Germany = 40%

Pakistan = 8%

Indonesia = 25%

Italy = 15%

Canada = 12%

54
10. Cost ,Insurance & freight value of imports from 2019 to 2021?.

Raw material
3
Stores and other material
Capital goods
2

0
2019 2021

Interpretation:

Raw material Stores & Other material Capital goods

2015 4.2cr 8 lac 99 lac

2016 5.4cr 12 lac 22 lac

55
 BIBLIOGRAPHY

Books:
 Documents received from OCM
 Export import procedures and documentation – by [Thomas E Johnson &
donnal bade]
 Export Import procedures documentation and logistics – by [C. Rama
Gopal]

Websites:
 www.ocm.in

 www.indiantradeportal.in

 www.slideshare.net

 www.ocm.investopedia.com

 www.seair.co.in

 www.infodriveindia.com

 www.importgenuis.com

 www.sggu.com

56
 www.import.investopedia.com

 www.export.investopedia.com

 www.importexport.ocm.in

 www.zauba.com

 www.indiantradeportal.in

 www.cogoport.com

 www.ocm.internationaltrade.com

 www.foreigntrade.ocm.in

SWOT ANAYLSIS FOR DEVELOPING THE STRATIGIES IN

OCM PRIVATE LIMITED

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you have
some control over and can change. Examples include who is on your team, your
patents and intellectual property, and your location.

Opportunities and threats are external—things that are going on outside your
company, in the larger market. You can take advantage of opportunities and
protect against threats, but you can’t change them. Examples include competitors,
prices of raw materials, and customer shopping trends.

For a SWOT analysis to be effective, company founders and leaders need to be

deeply involved. This isn’t a task that can be delegated to others.

But, company leadership shouldn’t do the work on their own, either. For best

57
results, you’ll want to gather a group of people who have different perspectives on
the company. Select people who can represent different aspects of your company,
from sales and customer service to marketing and product development. Everyone
should have a seat at the table.

Innovative companies even look outside their own internal ranks when they
perform a SWOT analysis and get input from customers to add their unique voice
to the mix.

If you’re starting or running a business on your own, you can still do a SWOT
analysis. Recruit additional points of view from friends who know a little about
your business, your accountant, or even vendors and suppliers. The key is to have
different points of view.

Existing businesses can use a SWOT analysis to assess their current situation
and determine a strategy to move forward. But, remember that things are
constantly changing and you’ll want to reassess your strategy.

As I mentioned above, you want to gather a team of people together to work on a

SWOT analysis. You don’t need an all-day retreat to get it done, though. One or two
hours should be more than plenty.

1. Gather the right people

Gather people from different parts of your company and make sure that you have
representatives from every department and team. You’ll find that different groups
within your company will have entirely different perspectives that will be critical to
making your SWOT analysis successful.

2. Throw your ideas at the wall

Doing a SWOT analysis is similar to brainstorming meetings, and there are right
and wrong ways to run them. I suggest giving everyone a pad of sticky-notes and
have everyone quietly generate ideas on their own to start things off. This prevents
groupthink and ensures that all voices are heard.

After five to 10 minutes of private brainstorming, put all the sticky-notes up on the
wall and group similar ideas together. Allow anyone to add additional notes at this
point if someone else’s idea sparks a new thought.

58
3. Rank the ideas
Once all of the ideas are organized, it’s time to rank the ideas. I like using a voting
system where everyone gets five or ten “votes” that they can distribute in any way
they like. Sticky dots in different colors are useful for this portion of the exercise.

Based on the voting exercise, you should have a prioritized list of ideas. Of course,
the list is now up for discussion and debate, and someone in the room should be
able to make the final call on the priority. This is usually the CEO, but it could be
delegated to someone else in charge of business strategy.

Strengths
Strengths are internal, positive attributes of your company. These are things that
are within your control.

 What business processes are successful?

 What assets do you have in your teams? (ie. knowledge, education, network, skills,
and reputation)

 What physical assets do you have, such as customers, equipment, technology, cash,
and patents?

 What competitive advantages do you have over your competition?

Weaknesses
Weaknesses are negative factors that detract from your strengths. These are things
that you might need to improve on to be competitive.

 Are there things that your business needs to be competitive?

 What business processes need improvement?

 Are there tangible assets that your company needs, such as money or equipment?

 Are there gaps on your team?

 Is your location ideal for your success?

Opportunities

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Opportunities are external factors in your business environment that are likely to
contribute to your success.

 Is your market growing and are there trends that will encourage people to buy
more of what you are selling?

 Are there upcoming events that your company may be able to take advantage of to
grow the business?

Threats
Threats are external factors that you have no control over. You may want to consider
putting in place contingency plans for dealing with them if they occur.

 Do you have potential competitors who may enter your market?

 Will suppliers always be able to supply the raw materials you need at the prices
you need?

 Could future developments in technology change how you do business?

 Is consumer behaviour changing in a way that could negatively impact your

business?

 Are there market trends that could become a threat?

SWOT Analysis example

To help you get a better sense of what at SWOT example actually looks like, we’re
going to look at UPer Crust Pies, a specialty meat and fruit pie cafe in Michigan’s Upper
Peninsula. They sell hot, ready-to-go pies and frozen take-home options, as well as an
assortment of fresh salads and beverages.

The company is planning to open its first location in downtown Yubetchatown and is
very focused on developing a business model that will make it easy to expand quickly
and that opens up the possibility of franchising

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 CONCLUSION

After doing study for 6 months for understanding Export Process and Import-
Export Documentation, I would like to conclude that Globalization is spreading
its wings throughout whole world and India is not remained untouched in
anyways. After liberalization of Indian economy in early 1990’s, growth has
been remarkable, especially after introduction of new FDI Policies in late
1990’s.
As result export was encouraged and a lot of new players came forward to do
global trade and International Business became one of the rapidly growing
fields in India. From past few months growth has been slow down to a little
extent because of global recession but hopefully soon it will pick up the pace
again.
Custom house agents are the main chain for Importing-Exporting goods. They
facilitate the documentation part of it which is again very complicated. They
also help to arrange containers and clearing the shipment of imported goods.
They have to remain in continuous contacts with customs and excise

Observation

According to Foreign trade policy 2015-2016 Mandatory Documents

Required For Export of goods from India:

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  Bill of lading
 Commercial invoice cum packing list
 Shipping bill
Mandatory Documents Required For Import of goods into India
 Bill of leading
 Commercial invoice cum Packing list
 Bill of entry
As per Foreign trade Policy Government reduce the mandatory Documents
The Term on which business deals are done
FOB {+the named port of origin)
Free on Board: The delivery of goods on the board the vessel at the named port
of origin (Loading) at seller’s expense. Buyer is responsible for the main
carriage/freight, cargo insurance and other costs and risks. In the export quotation,
indicate the port of origin (loading) after the acronym FOB, for example FOB
Vancouver and FOB Shanghai.

Recommendations

 Company need to work according to Foreign Trade Policy 2015-20. It is

observed that requirement of Document according to new policy is less
then requirement of Documents according to 2009-14 policy.

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 Company need to Have a separate employees for import and export

 Company should expands in other ports in India.

ANNEXURE

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NOTE:
Due to the confidential data of OCM Private ltd, I had been provided the copies of
import and export bills for the year of 2017 as per their suitability to gave the copy
of bills. Above are both the bills of import and export that shows how trading
takes place. This will cover the following aspect:
 How to calculate custom duty on bills.
 How to calculate SGST, CGST.
 How to calculate IGST.
 How to insure and check the proper bill by analysing the number of pieces
ordered, quality and shade
 To verify their GST number, invoice number, date of transaction
 To check Country of origin of goods to the country of final destination.
 To verify the total amount on which CGST, SGST is to be charged.
 IGST is charged only on international goods
 To verify the invoice number
 Goods description is the main aspect in trading.
 To verify if sum of the amount had been receive in advance
 To verify the total balance due to organisation.
 To verify the PAN number.
 To verify the date of bill clearance or balance due.
 To sign the bills or documents by the HOD of particular department and
assistant manager signatures are mandatory to pass bill for further
transaction.

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