Roll No : 27 Collage : F.H Shah Institute of Management and Information Technology Year : 2009-2010

MATIN VOHRA

NAME : MATIN I VOHRA UNIVERSITY : SARDAR PATEL UNIVERSITY CLASS : S.Y B.B.A [FOREIGN TRADE] ROLL NO : 27 COLLAGE : F.H SHAH INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY YEAR : 2009-2010

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PREFACE

B.B.A Foreign trade is very different course from any other course. During my entire visit I know some theoretical knowledge and practical knowledge about the international trade.

Industrial visit is one of the important aspects of this syllabus. One of the important aspects of this syllabus we believe that but hority had a particular purpose in mind when they includes full paper the theoretical knowledge understand able only when enter in to practical knowledge.

F.T is the exchange of the goods and services across international boundaries or territories.

In most countries foreign trade represents a significant share of gross domestic product.

Foreign trade has been present throughout most of history foreign trade is major source of economic revenue for any nation that is considered a world power.

Foreign trade is also a branch of economic which together with international finance forms the branch of foreign economic.

B.B.A foreign trade covered different types of subject they are as follows.

1. International Marketing Management.

2. International Financial Management.

3. Transportation & Material Handling.

4. Foreign Trade Policy.

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5. Quality Management in F.T

6. Industrial Organization.

7. Economic Analysis for business Decision. ACKNOWLEDGEMENT

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SCHEDULE OF INDUSTRIAL VISIT

DATE TIME SCHEDULE

07-12-2009 10:00 TO 1:00 pm MESO PVT.LTD (MONDAY) 3:00 TO 6:00 pm KANDALA PORT

08-12-2009 10:00 TO 3:00 pm PSL LTD (TUESDAY) 5:00 TO 6:00 pm HANDI CRAFT MARKET HUNT

09-12-2009 9:00 TO 3:00 pm (WEDNESD MUNDRA PORT & AY) SEZ

12:00 TO 3:00 pm LEC ON EXIM AT 10-12-2009 5:00 TO 6:00 pm (THURDAY) PSL LTD KESARI OIL PVT LTD

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REPORT ON MUNDRA PORT & SEZ Ltd. (ADANI GROUPS)

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ADANI GROUPS MUNDRA PORT [09-12-2009]

INDEX

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SR.NO PARTICULAR PAGE NO

1. INTRODUCTION 1.1 About Adani Group

1.2 About Mundra Port

1.3 Strength of Mundra Port

1.4 Location of Port 2. ORGANISATION Values & STRUCTURE 1.1Vision & Mission

1.2Structure of Management 3. HUMAN RESOURCE MANAGEMENT

4. FINANCIAL 5. FUTURE PLANS

6. FACILITIES 1-CARGO

2- TERMINAL 7. CONCLUSION

INTRODUCTION About Adani Group

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Mundra port and Special Economic Zone ltd. is promoted by the Adani Group. The Adani group started as a trading house in 1988. The Adani group is one of India’s fastest growing business houses. Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure & energy. Our core values of trust, courage & innovation, our ability to identify opportunities & capitalize, on them & over success at building competencies by synergizing expertise, are the factors that have driven our growth. Our mission is to acquire development, assimilate & manage knowledge. Which can be applied across our business interests for the benefit of stakeholder?

The entire business of the group is organized under two companies is organized under two companies, Adani enterprises ltd. & Mundra port & SEZ both companies are listed on the national stock exchange of India (NSE) &the Bombay stock exchange (BSE), together, they had a market capitalization of over In 790 billion (As per closing prices on December 31, 2007), marketing the largest business group by market capitalization as on dec, 31, 2007.

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus.

Mr. Gautams Adani is the board of Director &chairman &founded of the Adani group under this leadership. Adani group has emerged as a diversified conglomerate with interest in information trading, infrastructure, development power generation &distribution, development of special Economic zone distribution trading &business process outsourcing. His unparallel expertise in international trade solution oriented

8 MATIN VOHRA approaches. Innovation & Endurance in on increasingly competitive & rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builder& basic utility provider.

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About Mundra Port

The history of India maritime is older than even most of the ancient civilizations of the world. In the older days, the ports in India were centers of intense business activity and defined maritime routes of global trade.

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory. Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country.

With integrated development philosophy that leverages the power of modern technology and advanced management techniques, Mundra port is on the path to become a new generation world class port.

World's best regarded specific list consulting groups form U.K, Netherlands & Australia, besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies, hydrological studies, conceptual plans front & detailed engineering, mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology, safety, quality and efficiency.

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With the help of such renowned consultants, Mundra port has created excellent infrastructure to handle bulk break bulk, dry - liquid & container cargo.

PORT'S STRENGTH

Mundra port, located in the gulf of Kutch in Gujarat is an all either, round the clock, round the year, multipurpose port with a total quay length of 895 meters, the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width, besides an 85 meters barge berth for handling a wide variety of cargo. These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities.

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters & capable of berthing capsizes vessels unto 150000 dwt.

Proximity to northern and western hinterland of the country which greatest over 420/0 of the total international trade of India. Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work.

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day. Can area of 5000 acres available for further developing the port back up related infrastructural facilities.

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations. The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal.

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LOCATION OF PORT

Change into TEXT Mundra port Navinal Island Mundra - 370421 Dist - Kutch

Port office P.O. No.1 Mundra - 370421 Kutch Tel: + 91-2838-288201-8 Fax: + 91-2138-282810-240

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Vision:

To be a globally preferred business associate — an entrepreneurial organization having responsible concern for employees, society, ecology, and stakeholder value.

 Entrepreneurial - We shall think innovatively in all aspects of our business, spanning the gamut of technological and commercial practices.  Preferred Business Associate - We shall strive to generate optimum value for all our associates through constant innovation and adoption of universal best practices.  Responsible Concern – We shall harmonize all our actions and reactions, with the global environment and actively work to reduce the load on the environment.

Mission:

 Acquire, develop, assimilate and manage knowledge - We shall actively seek to become experts in our chosen domains.  Apply knowledge across our businesses – We shall apply our domain expertise across businesses, to deliver optimum value to our stakeholders.

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 Profitably – We shall be guided by the “Profit Motive”. Generating respectable, tangible as well as intangible, profits will ensure allocation of resources for developing, assimilating and managing expertise.

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO



Coo (chief operation officer)



V.P vice president



G.M



Manager



Deputy Manager



Assistant Manager



Senior officer



Officer

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

Jr. Officer



Supervisor



Operator



Technician

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in- zone industrial units. Besides the Government of India benefits, the Gujarat government has also designed a policy that offers added incentives to the in-SEZ industrial units. The SEZ at Mundra will be spread over 100 Square kilometers, providing excellent flexibility in are as follow:

 Single Window Clearance for statutory requirements.

 Waiver of routine Customs examination of imports and exports.

 Clearance of Export consignments on self-certification.

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 100% FDI permitted through the automatic approval route except the negative list.

 Relaxed labour policy specifically for SEZ units (Applicable only in Gujarat).

 Freedom to realize and repatriate export proceeds within 12 months.

 No limit on quantum of DTA sales.

 Foreign investments allowed for items generally reserved for the Small Scale sector Contract manufacturing

permitted with units outside the SEZ or in other SEZs.

TAXES BENEFITS

MSEZ & other SEZ units can avail the exemption on taxes which would otherwise be implemented on the general business units. The following are the tax benefits which are enjoy by the SEZ:

 Direct Tax Benefits – Income Tax:

 100% exemption for the first 5 years & 50% exemption for the sixth to tenth (next 5) years.  50% exemption on the ploughed back profits, for an additional 5 years, after ten years.  Exemption from Minimum Alternate Tax.

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 Indirect Tax Benefits - Perennial exemption in all taxes including

 Excise Duty.

 Custom Duty.

 Service Tax .

 Value Added Tax (VAT).

 Stamp Duty / Lease Tax.

 Entry Tax and various other State levies that would otherwise be applicable on operations. Domestic Tariff Area (DTA) supplier is eligible for export benefits on SEZ sales making the sourcing cost competitive.

 External Commercial Borrowings up to US $ 500 Million without any specific approvals. Cost competitive financing can be availed from Offshore Banking Units (OBUs).

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FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month. Mundra port handled 7.10 lacs MTs of cargo through rail 12.45 lacs MTs of dry, liquid cargo and 5.49 lacs MTs of cured at its SPM.

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI.

19th of March 2007 was a day when history was written wt Mundra port when it handled 27.900 MTs of cooking coal in a day.

Price bank of Rs.400 to 440 per equity share of face value Rs.10 each public issue size 40250000 equity share of Rs.10 maximum subscription amt for retail investor Rs.100000.

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The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations. This system is seamlessly integrated with other systems with on line interfaces.

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions.

Mundra port vision to evolve as a facility ranking on international bench marks. An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28. The infrastructural facilities in his form of storage space and equipment are being continuously added at the port. The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business.

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail, road, & pipeline to connectivity to port.

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd, for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers.

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The Adani group also plans to set up a special economic zone in the proximity of the port. The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares.

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem, event management, payroll and reports related to man resources activity of the port.

RM is a management function that helps manager's recruit, select, train and develop member for an organization,

20 MATIN VOHRA management is a process which involves team work for the attainment of a definite goal.

In these days of global competition the importance of human resources has increased considerably. The staffing function of human resource management includes recruiting, selecting, promoting, and transfer, dismissal, training and development, wages and other incentive system, welfare activities and representatives of workers in the management etc.

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow:

 26,000 sq. m of open storage alongside rail siding.  Wheat cleaning facility with a capacity of 1,200 MT / day.

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 8 weighbridges for dry cargo.  8,80,000 sq. m. of well demarcated open storage space for steel sheets, plate, coils, scrap, clinker, salt, coal, coke, bentonite, etc .

 21 closed godowns ad measuring 1,37,000 sq. m., for wheat, rice, sugar, deoiled cakes (DOC), fertilizer, fertilizer raw materials (FRM), etc .

Port Operations

MK Padia – Sr. VP (Operations)

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A port is a safe station for vessels. It is a place from which vessels start and at which they finish their voyages. A port is a gateway to the land from the sea, and from the sea to the land.

The importance of a port can be measured by a careful consideration of the following points:

(1) The number of ship visiting a port in a year. (2) The gross registered tonnage of ship entering the port in a year.

(3) The goods handled, i.e., export and import carried through a port. (4) Value of goods handled. (5) Earnings of a port.

Classification of port:

(1) Commercial ports. (2) Passenger ports.

(3) Tans-shipment ports.

(4) Enter pot ports. (5) Free ports. (6) Po of call and Bunkering ports. (7) Naval ports

Ports in India:

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Bombay, Calcutta, Cochin, Kandla, Madras, New Mangalore, Visakhapatnam, Paradeep, Marmugao, Tuticorin, Nhavasheva.

Mundra Port's operations cover providing detailed information such as schedules, tariffs, trade notices, weather and tidal information etc. Our robust IT support eases decision making with the aid of top-of-the-line software applications. We are also equipped with state-of-the-art safety and security measures and infrastructure to ensure and protect storage.

IT SUPPORT

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Mundra Port aims at seamless integration of its business operations and has opted for an ERP platform developed by SAP, the SAP based ERP is fully operational now. In addition to ERP we has also opted for industry and trade specific software solutions which provide real time information and help in improving decision making process and in turn lead to efficient port operation.

Integrated Port Management System (IPMS): The port has implemented the IPMS as Single Window port operation software. The IPMS tracks port operations in real time, which in turn improves the efficiency of port operations by optimizing the vessel turnaround time and cargo handling. This in turn leads to competitive operational costs. IPMS cover Dry Bulk, Liquid Bulk, and General Cargo operations of the cargo terminal.

Executive Information System (COGNOS Tools): Through this system, information from all the areas of the port is summarized and presented in a suitable form to help the port management in taking effective decisions. It is a front end tool and utilizes the data / information generated by IPMS.

We have also developed capabilities to provide data related to weather and tidal charts for providing directional guidance to port users.

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FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd.(MPSEZ), are equipped with state of the art fire fighting facilities. The fire services are manned by highly skilled and trained fire professionals capable of handling diverse emergencies. The Port has been divided in to five zones and each zone has dedicated fire fighting systems and is manned round the clock for quick response. Fire personnel are posted at all the critical and hazardous area. The Fire Services ensures safe work culture by implementation and monitoring of work permit system. Two mobile fire fighting units with rescue and fire fighting equipments are available on standby at the Central Fire Station to meet any emergency situation inside and outside the port premises. The Central Fire Control Room monitors and co-ordinates all fire related emergencies and functions.

Mundra Port Fire Services also participates in activities related to community development, they impart fire and rescue training to residents of neighboring villages, schools etc. in

26 MATIN VOHRA collaboration with Gujarat State Disaster Management Authority (GSDMA). The Mundra Port fire services often help, by sending its fire tenders and crews to extinguish major fire and carry out rescue operations in the nearby industries and villages.

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group, promoters of the Mundra Port, runs Adani Bunkering Services which offers all grades of fuel oil and gas oil as per ISO specification at globally competitive price. The advantages of bunkering at Mundra Port are as follows.

• Compliance with MARPOL Annex VI requirements. • Services offered are at par with International Standards, by virtue of two owned-barges and oil terminal inside Mundra Port. • ISO 9001-2000 accredited Bunker Supply Chain Management ensures the quality of bunker fuels. • Our internationally acclaimed 24x7 environment-friendly services ensure meeting bunker fuel requirements in time.

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• Two dock lines of 24” and 12” for discharge of Cargo, loading of barges and Bunker supply. • Besides Mundra Port, Adani’s bunkering facilities can be provided at Kandla, Sikka, Jamnagar and Vadinar. • Road Tank Wagon supplies are available for alongside jetties.

Adani Bunkering has procured orders for other Indian Ports such as Mumbai, JNPT, Goa, Cochin, Haldia, Chennai, Visage and New Mangalore.

TUGS

Mundra has its own fleet of eight high powered tugs that provide navigational assistance to large ships. The tugs are capable of 57 ton Bollard pull and equipped with fire fighting facilities.

CUSTOM BANKING

• Customs establishment for statutory clearances.

MPSEZ Container Terminal under SEZ customs & Nationalized and private banks inside port limits.

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LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat, 65 km from Bhuj and 350 km from Ahmadabad. It is well connected to the rest of Indians by:

RAIL:

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms.

 The port has 7 railway sidings and two dedicated diesel locomotives.

 It can handle double stack container trains.

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 A 64 km private railway line has been developed which connects the port with the national network at Adipur. Adipur falls on the broad gauge from Mumbai to Bhuj. Adani also has equity stakes in the Kutch Rail Company Ltd. (KRCL), a project by the Indian railways to shorten the distance between the northern hinterland (including Delhi and commercially important cities like Ludhiana) and Mundra Port by providing a broad gauge connection between Palanpur and Adipur.

ROAD:

 Well linked to the National Highway grid by NH8A,NH 15 and state highway.

AIR:

 Fully function Aerodrome at Mundra to facilitate landing of private jets.

 Two commercial airports within an hour’s drive from Mundra.

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CARGO HANDLING & STOGE

(A) Dry cargo (B) Liquid Cargo

1. Uricl 1.Edible Oil

2. Fertilizer 2.Petrol

3. DAP 3.Diesel

4. Sugar 4.Kerosene

5. Wheat 5.Asian Gas

6. Rice 6.Ethanol

7. Peas

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8. Horse Gram

9. Green Gram

10. Coal

11. Steel Products

12. Pipe

13. Blade

14. Salt

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity. Some of the salient points of dry cargo handling facilities at Mundra area.

70000 sq.meters of closed storage space with a storage capacity of 170000 MT for commodities like wheat, rice, sugar, fertilizer, etc.

325000 sq.meters of well demarcated open area in the form of concrete/hardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies, Bauxite, steel, sheets, coils, pipes linker, salt, coal etc.

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State of the art integrating mechanized bulk handling system unparalleled at any other port in the country.

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour.

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo.

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment.

Rice storing and grading facility of 500MT per day. Mundra port creates a record handling highest number of rakes in the month of January 2007. It handled 268 rakes. Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes. Out of these 213 rakes were only of wheat discount.

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area.

Seven 3.5 km long liquid pipelines, 8 to 24 in diameter connect berths to the tanks.

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Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area.52 tanks with a total capacity of 27100 kiloliters for storing edible oil, chemicals, glass, A/B/C petroleum product and . Bitumen.

Provision for heating in selected tanks for storing specific cargo.54 loading buys with sophisticated volume dispatch system ensure no loss capability. Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed.

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem, event management, payroll and reports related to man resources activity of the port.

RM is a management function that helps manager's recruit, select, train and develop member for an organization, management is a process which involves team work for the attainment of a definite goal.

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MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic, especially in the Northern and Western States of India, inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS.

Mundra port international container terminal limited capable of handling more than 1.2 million TEUs per annual is designed to grow container traffic. Back up infrastructural facilities have

35 MATIN VOHRA been developed for the area of 38 hectares for the container yard rail operation.

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels. All weather cargo handling and ship movements. A maximum distance of 1.85 kms of approach channel 632 meters of quay length already developed with a through put potential of 1.2 million TEUs. Container yard with 5300 ground slots.

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station.

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 2.5 million TEUs.

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer.

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling.

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There is also providing packaging of cargo. The other services are liquid tank farm area.

* Closed and open storage for bulk cargo

* Cleaning and sorting of cereals

* Privately developed road, rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers.

Also see at Yagalpur, Sinugra, Khedoi, Loveriya, Chandiya, Chandroda, Mindiyana, Shinae, Adipur, Gandhidham, Bhuj, Anjar, Kandla, Mundra port.

Full service customer establishments on the port premises facilitated easy and quick statutory clearance. Buck up DG power in addition to grid power ensures power round the year.

Well planned safety equipment and system ensure hazard. Free operation management at the fort.

The safety future include compressed rubber fenderian system, indignant fire control installations proximity suits portable extinguishers. Ambulance breathing APPARATUS sets form tender etc. FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month. Mundra port handled

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7.10 lacs MTs of cargo through rail 12.45 lacs MTs of dry, liquid cargo and 5.49 lacs MTs of cured at its SPM.

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI.

19th of March 2007 was a day when history was written wt Mundra port when it handled 27.900 MTs of cooking coal in a day.

Price bank of Rs.400 to 440 per equity share of face value Rs.10 each public issue size 40250000 equity share of Rs.10 maximum subscription amt for retail investor Rs.100000.

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions.

Mundra port vision to evolve as a facility ranking on international bench marks. An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28. The infrastructural facilities in his form of storage space and equipment are being continuously added at the port. The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business.

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Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms.

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd, for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers.

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FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling, additional berths, logistic support system and power generation.

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010.

1. Pure car carrier/pure car truck carrier (pcc/pctc) berth with huge car parking space.

2. Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day.

3. Double lining of the 64 km railway line in phased manner.

4. Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built.

5. Construction of dedicated LNG berth.

6. Construction of 4x330 MW and 2x660 MW terminal power plants has already begun.

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CONCLUSION

The Mundra port is providing services of Export & Import of the various good considering dry cargos, Containers, Liquid goods cargo export import in the port system. They are very good operation of shipping cargo. Their staff member, workers their services are very useful to all. Their goods performance effect is quick or direct to the countries growth. Mundra have a resolvable product range to cargo handling. It is achieving the goals. Thus company to other shipping cargo it is very good to other.

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port.

The special economic zone is growing more & more for other port.

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PSL LTD. REPORT [08-12-2009]

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PSL LIMITED

Varsana Anjar, Kutch, Gujarat East of N.H -8 A, Kandla Road, Gandhidham, Kutch, Gujarat.

Plot No.4 & 5, Sector 12/B, Kandla Road, Gandhidham, Kutch, Gujarat.

INDEX

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SR.NO TOPICS PAGE.NO 1 Introduction 2 General Information 3 Departments :

1. Production Department

2. Marketing Department

3. Finance Department

4. HRM Department 4 Export / Import Procedure 5 Conclusion

INTRODUCTION

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PSL Limited (PSL) is the largest manufacturer of high-grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India. The Company Manufactures and supplies pipes certified to API (American Petroleum Institute) standards for oil, gas and water transmission as well as structural And piling applications for both onshore and offshore sector.

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai, Kandla Vishakhapatnam, Ahmadabad, Jaipur, Daman and Sharjah with an annual capacity exceeding 1,175,000 MT.

Other business segments that PSL caters to, include pipes coating, induction Pipe bending and sacrificial anode manufacturing. PSL has over the years Successfully demonstrated its ability to simultaneously manage multiple Assignments in a qualitatively and timely manner, both within and outside The country.

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General Information

Chairman : Shri Y. P. Punj

Managing Director : Shri Ashok Punj

Directors :

Shri Alok Punj

Shri M. M. Mathur

Shri G. S. Sauhta

Shri R. K. Bahri

Shri D. N. Sehgal

Shri Prakash V. Apte

Shri N. C. Sharma

Shri Ashok Sharma

Shri Harry H. Shourie

Shri S. P. Bhatia

Shri C. K. Goel

Shri Paresh J. Shah

Shri Harsh Pateria

Director and Company Secretary :

Shri G. Gehani

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STATUTORY AUDITORS

Suresh C. Mathur & Co. Chartered Accountants,New Delhi. SHARE TRANSFER AGENTS

Karvy Computershare Private Limited 17 - 24, Vittal Rao Nagar, Madhapur, Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited Survey No. 377/2, Zari Cause Way Road, Kachigam, Daman, Union Territory of Daman & Diu

Pipeline Systems Limited C/o IFS, IFS Court, 28 Cybercity, Ebene, Mauritius

PSL USA INC Corporation Trust Center, 1209, Orange Street, Wilmington, New Castle, 19801, Delaware, USA.

PRINCIPAL BANKERS

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ICICI Bank Limited State Bank of India Bank of Baroda Standard Chartered Bank Export Import Bank of India IDBI Bank Limited Axis Bank Limited BNP Paribas State Bank of Patiala State Bank of Hyderabad Indian Overseas Bank Union Bank of India ING Vysya Bank Limited Yes Bank Limited DBS Bank Limited Deutsche Bank Indian Bank Kotak Mahindra Bank Development Credit Bank

REGISTERED OFFICE

Kachigam, Daman, Union Territory of Daman & Diu - 396 210

CORPORATE OFFICE PSL Towers, 615, Makwana Road, Marol, Andheri ( E ) Mumbai - 400 059

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LEGAL & SECRETARIAL OFFICE 3rd Floor, ‘Punj House’, M-13 A, Connaught Circus, New Delhi - 110 001.

MARKETING OFFICES - In Western India PSL Towers, 615, Makwana Road, Marol, Andheri ( E ) Mumbai - 400 059

- In Northern India “PSL HOUSE” B-96, Greater Kailash – I, New Delhi - 110 048.

- In Southern India Meridian House, 8/2, Montieth Lane, Egmore, Chennai - 600008.

PROJECTS OFFICE 3rd Floor, ‘Punj House’, M-13 A, Connaught Circus, New Delhi - 110 001.

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VISION

THE VISION OF THE PSL LIMITED IS AS UNDER: "Being the global supplier of choice for the energy infrastructure sector industry by 2020"

MISSION

In its commitment to excellence, PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products, services and solutions in the industry, by a strategic investment and focus on: The latest technological trends thereby creating value for stakeholders – clients, customers, shareholders and employees.

 A continued investment in Research & Development.  Building and nurturing engineering talent.  Developing a culture that fosters teamwork and enhances leadership abilities.  Forming strategic alliances in order to move up a diversified value chain within the energy industry.  The highest standards of corporate conduct and ethics.

Ensuring the highest levels of customer satisfaction for every customer across geography and scale.

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DEPARTMENT AT PSL LTD

 Administration Office.

 Pipe Mill-V1.

 Store-V1.

 Qa/Qc Plant Office.

 Yard/Auto Department.

 CML Plant.

 Pipe MILL-NC.

 Store-NC.

 Laboratory.

 QA/QC Main Office.

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Pro

QUALITY POLICY :

PSL Limited, which is into manufacturing of steel pipes, pipe mills and machinery as well as anticorrosive coating of steel pipes, are committed to supply products on time and at competitive prices, to the total satisfaction of customers' stated and implied needs while complying with relevant statutory and legal requirements.

In our integrated efforts, we commit to continually improve quality of products, prevent pollution and reduce occupational health and safety hazards in our process.

We commit ourselves to supply defective-free product at competitive price and in time. To satisfy our customer and continuously improve the effectiveness of the Quality System Management.

Objectives:

 Training of personal at all levels.

 Bring out quality awareness in each activity performed by all employs.

 Continuous improvement in process /Technology. To reduce, defecit cost & work.

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PRODUCTION DEPARTMENT

Production department is a heart of the company. It is the most important department of the company. The production function of a business is concerned with the creation of a product or service required to satisfy customer needs, wants and desire. Pipe Manufacturing (HSAW)  Manufacture large diameter (18 to 120 inches) HSAW pipes of varying thickness between 5 mm to 25 mm.

 HSAW pipes are extensively used for the transmission of oil, gas and water. Key projects executed: Melut Basin Oil Development- Sudan Dolphin Energy, Barmer lift water supply, Vijaipur- Dadri Bawana pipeline. Pipe Coatings: Provide pipe coating services which include pipe corrosion protection  3 Layer Polyethylene/Fusion bonded epoxy coating, Coal Tar Enamel Coating, Concrete Weight Coating, Internal Coating etc. Key projects executed: Baherika Naka Project, Hazira-Bijapur Jagdhispur Ancillary Products and Services

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Induction bends:  Capacity to manufacture pipe bends of various diameter up to 48 inches Sacrificial anodes:  Capacity to manufacture in excess of 1,500 tape of sacrificial anodes Reinforcement bar (rebar) coating:  Prevents corroding before they are put to use in construction Manufacturing of turnkey HSAW plant and machinery: Design and manufacture machinery and equipment catering to the pipeline industry.

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H-SAW PIPE MANUFACTURING

Large diameter API / IS Grade pipes with a diameter ranges from 406 mm to 3175 mm, wall thickness up to 25 mm, length up to 12.5 meter and up to and including API 5L X – 80 are manufactured at Varsana H-Saw pipe mills. Annual mill capacity is around 75000 MT per mill.

RAW MATERIALS

Our results of operations are subject to the availability, cost and quality of our key material i.e. H.R. Coils. Flux and Filler Wire, Coating Materials & Other materials is required at the time of process of pipes.

Cost Effective: Transportation through pipelines is cost effective as compared to the other means of transportation such as roadways or railways. Stability: Transportation through pipelines is stable as compared to the other means of Transportation. They generally have a life of around 15 to 20 years, once the pipeline network is being set-up. Safety: Transportation of inflammable items like oil and gas is safer in pipes as compared to the other means of transportation like roadways or railways.

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No pilferage: They overcome the problem of pilferage as compared to the other means of transportation. There is nil or negligible threat of transit loss in case of transportation through pipelines. Eco-friendly: Transportation through pipelines is eco-friendly, as there are no emission of gases and pollutants in the atmosphere, as compared to the other means of transportation. Efficient land use: Pipelines are generally underground and there is no disturbance of land due to their usage. Multi-product transportation: More than one product can be transported through the same pipeline without purging/cleaning procedures. Supply unaffected: Transportation through pipelines are unaffected by strikes, cyclones, floods etc which may affect other means of transportation. Process of HSAW: Spiral pipes are produced by shaping HR coils into spiral form and continuously welding the seam inside and outside. Various pipe diameters can be produced from the same strip width by changing the forming angle. Forming stand unit HR coil to make it straight.

Welding stations.

Cutting and clining.

Quality control.

End beveling station.

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Hydro-testing station for testing of each pipe.

U.T. / Ultrasonic testing station for NDT weld flaw detection.

End X-ray / continuous radiography.

Finishing station and final inspection station. Testing Facility:

Non-destructive Testing Destructive Testing

Hydro-static Test. Charpy ‘V’ Notch Impact Test.

Online Ultrasonic Testing for HR Coil. Drop Weight Tear Test.

Off-line Ultrasonic Testing for pipes. Hydrogen Induced Cracking.

Real time Radiography. Sulphide Stress Cracking (Four point Bent-Beam method & Tensile Test Film Radiography. method).

Magnetic Particle Inspection. Tensile Test.

Visual Dimensional Inspection. Guided Bend Test.

Hardness Test. Micro & Macro Vickers Hardness Test.

Micro Examination.

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The making of Spiral Weld pipes:

Hot rolled Coil strip is mounted into the straightening machine. The strip is positioned to the correct helix angle. Before passing the strip through, the leading and trailing ends of the incoming and already inserted coil strip respectively are welded together. The edges are then machined simultaneously on both sides by an edge miller. In the forming section, a 3- roller bending device bends the strip helically into a cylindrical pipe. Then the longitudinal edges of the incoming strip are brought into low point contact and the resulting butt joint is continuously welded externally after a half-turn of the pipe. Finally, it is cut off to the desired length with a plasma torch.

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm, wall thickness up to 25 mm, length up to 18 meter and up to and including API 5L X – 80 are manufactured at Helical Two Step Pipe mill, Varsana 2. Annual plant capacity is around 3, 00,000 MT depending upon order mix.

Helical Two Step Technology Pipe mill consisting of the following steps :

First Step: Pipe Formation Unit:

Coil opening operation.

Coil flattening operation.

Welding coil to coil butt ends for continuity.

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Pipe forming operation.

Continuous tack welding of the formed pipe.

Pipe end cutting operation.

Second Step: Final Welding:

Pipe is then discharged to “Final Welding Station”. Final Welding Station has 3 numbers Welding lines. Following operation is undertaken here.

Continuous internal welding.

The duly welded pipe is discharged from the welding line for processing of the pipe ends.

End beveling station.

Hydro-testing station for testing of each pipe.

U.T. / Ultrasonic testing station for NDT weld flaw detection.

End X-ray / continuous radiography.

Finishing station and final inspection station.

Pipe manufacturing capabilities using different technologies:

Pipes LSAW HSAW

Diameter (inches) 16"-56" 18"- 120"

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Thickness (mm) 4.8-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad, PSL’s strength lies in its commitment to quality and ability to implement diverse projects efficiently.

Equipped to provide the best in yard coating for large onshore and offshore projects, PSL has over the years successfully executed multiple coating assignments simultaneously, while adhering to its commitment to quality and project completion deadlines.

Range of coating services available for the most stringent of pipe-coating applications

• POLYETHYLENE (PE)

DETAIL

• COAL TAR ENAMEL (CTE)

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DETAIL

• FUSION-BONDED EPOXY (FBE)

• CONCRETE WEIGHT COATING (CWC)

• INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on external steel surface after cleaning it to the SA 2.5 grade of Swedish standard SIS 055900.

The first layer is a fusion-bonded epoxy powder (150 micron/0.150mm thick) by electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade or as recommended by the powder manufacturer.

The second layer is adhesive (200 micron/0.20mm) which is applied by lateral extrusion over the epoxy layer when the epoxy powder is still in the polymerization phase at a temperature of 210-230 degrees centigrade.

The third layer of polyethylene (2200 micron/2.2mm) is applied by lateral extrusion on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted according to the requirement. The pressure roller is used to prevent air entrapment in the PE layer.

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a minimum thickness of 24 micron/2.4mm over the primed pipe and one wrap of glass- fiber mat.

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A second coat of coal-tar enamel having a minimum thickness of 2400 micron/2.4mm follows this and wrap of glass-fiber mat followed immediately by an outer-wrap of coal-tar impregnated glass fiber felt.

The minimum thickness of coating (without the outer-wrap) is 4800 micron/4.8mm +/- 1.0/0.0mm. When the protrusion of weld seam interferes with this thickness, the thickness of the coating above the weld seam should meet the specified thickness.

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating, applied by using electrostatic spray guns, and which provides excellent adhesion, flexibility and a marked resistance to cathodic disbandment – even at elevated pipeline temperatures.

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness. It is applied at a high velocity against the external surface of the pipe to produce a hard, tight-adhering coating of the specified thickness and simultaneously wire -meshed.

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel pipe. Applied centrifugally, cement mortar lining provides a smooth dense finish that protects the steel pipe from tuberculation and also affords a measure of corrosion resistance. Additionally, the smooth interior surface of cement mortar lining provides a high flow Cement mortar-lined steel water pipe is durable, easily handled in the field, and can be repaired with minimal difficulty.

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MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and then satisfying these wants better than other competitors, both domestic and international. They observe that international marketing has dual aspects, viz, foreign marketing and global marketing.

According to Keegan, “global marketing is the process of focusing the resource(people, money and physical assets) and objectives of an organization on global market opportunities and threats”.

“Marketing management is the process of planning and executive the conception pricing promotion and distribution of ideas goods and service to greate exchange that satisfy individual and organization objective market is formally carried out by the sales manager”

Customer: ONGC (Oil & Natural Gas Corporation Limited) GAIL (Gail India Limited) IOCL (Indian Oil Co-operation Limited) DPCL ( Narmada Project Majour Orders:

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Oil � Mundra-Bhatinda pipeline I: INR 9,355 mn. � Mundra-Bhatinda pipeline II: INR 4,091 mn. � Dadri Panipat pipeline: INR 1,656 mn. Gas � Vijaipur- Dadri Bawana pipeline: INR 17,272 mn. � Vijaipur –Dadri Bawana pipeline: INR 1,848 mn. � Cagmeg S.P.A. Algeria: INR 731mn.

Water � Barmer lift water supply: INR 3,080 mn. � Indore Municipal Corporation: INR 507 mn. Others � Indira Gandhi super thermal power: INR 608 mn. � Coimbatore Municipal Corporation: INR 357 mn. � Raghunanthur thermal power: INR 141 mn. � DJB Dwaraka water supply : INR 233 mn.

Special Problem in International Marketing:

 Political and Legal Difference.  Economic Difference.  Culture Difference.  Difference in the Currency.  Difference in the Language.  Difference in the Marketing Infrastructure.  Trade Restriction.  High Costs of Distance.  Difference in Trade Practice.

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MARKET SEGMENT

A firm has also to make a strategic decision about the segment/segment of the foreign market that it should enter.

The segment/segment that a firm may enter depends on a number of factor like the firm related factors (the size and resource of the firm, its product mix, marketing characteristics of the firm etc.) product related factor (for example, whether it is an innovative product ) competition factor ( the strengths and weakness of the competitors, the extent of a competition in the different segment etc.) and other market-related factor like the size and characteristic of different segment, growth prospect of different segment etc.

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Marketing Channel

In international marketing, there are two sets of channels to be considered,viz, the channel between nation, and the channel within a nation. The decision about the channel between nations pertains to the determination of the appropriate mode of entering the overseas market. This involves , first of all, the choice of the location of the production base.

Direct Exporting:

As the name indicates, direct export refers to the sale in the foreign market directly by the manufacturer. The manufacturer may make the sale directly to the foreign customer or to a middle man or middle man located in the overseas market. In both the cases, the export is direct-manufacturer does not use any independent middleman in the channel between the home country and the overseas market.

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The Direct Exporting channels are as shown as under:

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures/

Licensing

Importers: The importers who buy on their own account may sell the product to the distributors, industries and other institutional customer, wholesaler,etc. Distributors: A distributor who buy directly from the exporter and holds large stocks of a product has an exclusive right to sell the product in a particular area or to a particular type of customer. Government Department: In some countries government department buy large quantities of certain goods, often on a long-term basis. These are generally essential goods of mass consumption or use in government departments. State Buying Organization: In some countries the import of goods are done by the government organization , like state trading organizations. This was the case until recently in the centrally planned economics. In India, imports of several commodities are canalized, i.e, only designated government agencies can import these goods.

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Wholesalers: Although wholesaler often buys from the importers or distributors, there are also wholesalers who buy directly from the exporter. Retailer: Large retailer may buy directly from the exporters. Department stores, supermarkets or other types of chain stores are among the most important direct retail buyers. Other retailers may depend on distributors or wholesalers. Joint-Ventures and Licenses/Franchise: A very important export marketing channel that is growing in popularity is the collaborative arrangement between exporter and foreign firm. Joint ventures ,i.e, enterprise in which both ownership and management are shared by firms from two or more countries, are very common between firms from developed and developing countries.

Indirect Exporting:

There are two method are available for indirect exporting:

(1) International marketing middleman; and

(2)Co-operative organizations.

International marketing middleman: There are two important middleman- merchant and agent. The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells, while the agent does not.

(1) Merchants: Export Merchant, Export/ Trade Houses, Trading Companies, Export Drop Shipper.

(2) Agent/ Brokers.

Co-operative organizations: The co-operative exporting organization, which represents a cross between indirect and direct export, carries on exporting activities on behalf of several producer, and is partly under the administrative control of the manufacturers.

There are two distinct types of co-operative international marketing organization: (1) Piggyback marketing.

(2)Export combinations.

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Under Piggyback marketing, also know as mother-Henning or company arrangement, one manufacturer use its overseas distributor facilities to sell product of one or more other company/companies as well as his own.

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit. Competitive environment

The large diameter pipe industry in India and globally is highly competitive. We face Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes while bidding for new contracts. Among the organized sector, we consider our three principal competitors to be Welspun Gujarat Stahl Rohren Limited, Jindal Saw Limited and Man Industries Limited. We sometimes face competition from the unorganized players but that is mostly restricted to smaller orders in the water segment. There are no unorganized players for oil and gas pipelines, since such pipes require API certification and have stringent quality norms.

The break-up of our total income into exports and domestic is as stated below: (Rs. in millions) 20 09 2008

Exports 715.17 5,506.43 Domestic 35,773.97 17,424.68

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Finance Department

Mr.K.Ramanathan

Finance Officer, Chief Finance Officer.

Finance is regarded as the lifeblood of a business enterprise. This is because in the modern oriented economy, finance is one of the basic foundations of all kinds of economics activities. It is the master key which provides aces to all the sources for being employed in manufacturing activities. It has rightly been said that business needs money to make more money.

According to Solo man, “Financial Management is concerned with the efficient use of an important economics resources, namely. Capital Funds”.

Classification of Sources of Finance:

According to Period:

(1) Long term sources, viz, shares, debentures, long term loans, etc.

(2) Short term sources, viz, advances, from commercial bank, public deposit, advances from customer and trade creditors, etc.

According to Ownership:

(1) Own capital, viz, share capital, retained earnings and surplus, etc.

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(2) Borrowed capital such as debentures, public deposits and loans, etc.

According to Sources of Generation:

(1) Internal sources, viz, retained earnings, depreciation funds, etc.

(2) External sources, viz, securities such as shares, debentures, loans, etc.

Basics Objectives: (1) Maintenance of liquid assets. (2) Maximization of profitability of the firm. (3) Share holder wealth maximizations rather than on profit maximizations.

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization to achieve the objectives of the organization. It concerns with acquisitions of appropriate human resources, developing their skills and competencies, motivating them for best performance and ensuring their continued commitment to the organizations to achieve organizations objectives. This definition applies to all types of organizations, e.g, industries, business, government, educations, health or social welfare of the people.

We are also subject to labor and employment laws which regulate the minimum wages payable to employees, maximum working hours, additional payments for overtime work, the hiring and terminating of employees, the engaging of contract labor, health and safety of the employees and work permits. Failure to comply may result in pecuniary and/or criminal liability and adversely affect our business and financial condition.

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Objectives:

(1) To provide, create, utilize and motivate employees to accomplish organizations goals.

(2) To secure integration of individuals and groups in securing organizational effectiveness.

(3) To create opportunities, to provide facilities, necessary motivate to individuals and groups for their growth with the growth of organizations by trainange and development compensations.

(4) To provide attractive, equitable, incentives, reward, benefits, social security measures, to ensure retention of competent employees.

(5) To maintain high moral, encourage value system and create environment of trust, mutuality of interest.

(6) To provide opportunities for communication expressions, participation, appreciation, recognition and provide fair efficient leadership.

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from employees.

(8) To ensure that, there is no threat of unemployment, inequities, adopting a policy recognizing merits and employee contribution, and conditions for stability of employment.

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FUNCTIONS OF HRM HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

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(4) Employee Evaluation Assessment,

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training & Development

(Toward is employees) (2) Appraisal

(3) Assessment/ placement

(4)Compensation

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Retirement Benefits:

Contributions to defined contribution schemes such as Provident Fund & Family Pension Fund all charged to the Profit & Loss Account as incurred.

Gratuity to employees is covered under the Group Gratuity cum Life Assurance Scheme and superannuation to employees is covered under Group Superannuation scheme of Life Insurance Corporation of India and Annual contribution to such schemes is charged to Profit & Loss Account. Accrued liability up to the date of Balance sheet is provided .

For the year ended March 31, 2009, provision for Employees Benefits Amounting to Rs.6.36 million towards Leave Encashment has been made to SBI Life Insurance Co. Ltd., Mumbai.

Employees:

As at June 30, 2009, we had 4,014 employees, of which 2,200 worked in our plant sand 454 worked in our corporate headquarters and other administrative offices. None of our employees belongs to a union, and we have not been subject to a strike or other material labour disturbance.

In addition to our employees, we rely on contractors who engage on- site labourers for performance of many of our unskilled operations. We are registered as a principal employer under the Contract Labour (Regulation and Abolition) Act, 1970, and such registration is required to be renewed periodically. As at June 30, 2009, we had 1360 contract labourers working for us.

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The total remuneration of our employees includes a base salary, bonuses and allowances. In addition to an employee contributing 12% of his or her salary into a provident fund, we also contribute an amount equal to 12% of that employee’s base salary to the provident fund.

Human Resources has always been most valuable asset for PSL and the company constantly seeks to attract and retain the best available talent. Human resource management incorporates a process driven approach that invests regularly in the training and development needs of its employees through succession planning, job rotation, on the job training and extensive training workshops and programs. The company holds various employee engagement programs in order to bolster employee morale inculcate a feeling of team work and create a mechanism to recognize individual and team contributions to the organization. The employee turnover for many years at a stretch is adequate evidence of the successful operation of the aforesaid philosophy of the Company. With the work force of more than 2500 individuals comprising of very well experienced staff and competent Executives at different levels, virtually no industrial problems are experienced by the Company at any of its Units.

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EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins:

IEC Number

Every person (whether an individual, firm or company ) importing or exporting goods required an Import-Export Code ( unless specifically exempted by the DGFT ). The IEC number is normally allotted by the regional licensing authority.

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways. There are specific Export Promotion Councils for various products/product groups. Members of EPC receive different kinds of assistance and services in respect of the export business.

Export will also benefit from membership of other organizations like India Trade Promotion Organization (ITPO).

(a)Registration with EPC/FIEO.

(b)Registration with Sales Tax Authorities.

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and conditions of sale. It may contain full details of the goods required, their description, catalogue number or grades, sizes, weights or other distinguishing features, time and method of delivery, etc.

The offer made by the exporter is usually in the form of a Performa invoice. This is an invoice sent in advance to the buyer before the shipment is made, and usually includes details of the product to be supplied, their

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Confirmation of Order The confirmation of the order usually takes the form of a contract. There is no hard and fast rule for the terms that may be mentioned in an export contract. However, the contract should contain details of goods, their quantity, quality, price, period, period of delivery/shipment, packing and marking, terns of payment, licenses, insurance, documentary requirement,etc.

Export License The export of some items are banned and some items controlled by means of licences, though many items are permitted to be exported freely. Needless to say that exporter should make sure that item sought to be exported is not one which falls in the banned list. If the item to be exported requires a license, it is necessary to obtain it before finalizing the contract.

Finance If the exporter requires pre-shipment financial assistance, he should take the necessary steps to obtain it.

Production/ Procurement Once the order is confirmed, the exporter should take necessary steps to ensure the timely availability of the goods of the specifications required and execute the exporter order promptly.

Shipping Space As soon as the exporter order is confirmed, the exporter should contract the shipping companies which have selling for the port to which goods have sent and book the required shipping space. Packing and Marking Once the exporters are ready, they are packed and marked properly. If the buyer has given instructions about packing and marking, they should

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Quality Control and Pre-Shipment Inspection Needless to say, goods should be exported only after ensuring that they are of proper quality. If the quality of the goods exported is not satisfactory, it will affect the image of not only the exporter but of the whole nation. The government has also taken some step in this regard. The Export Act, 1963, empowers the government to issue a notification about the commodities brought under the Compulsory Quality Control and Pre- Shipment Inspection Scheme.

Excise Clearance As a matter of policy, the government has granted excise duty exemption for export product.

Custom Formalities Goods may be shipped out of India only after Custom clearance has been obtained. For this purpose, the exporter should present the following documents to the customs authorities are as under: (1)Shipping Bill. (2)Declaration regarding truth of statement made in the Shipping Bill. (3)Invoice. (4)GR Form. (5) Export License. Quality Control Inspection Certificate (wherever required). (6)Original contract wherever or correspondence, leading to contract. (7) Contract registration certificate (wherever applicable).

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(8) Letter of Credit (9) Packing List. (10) AR-4 Form. (11) Any other documents.

Exchange Control Formalities The exchange control regulations required all the exporter to: (a)Make a declaration on the prescribed form to the Collector of Customs that foreign exchange, representing the full export value of the goods, has been or will be disposed of in manner and within the period specified by the RBI. (b)Negotiate all shipping documents, including those relating sales on consignment basis, through authorized dealers. (c) Receive payment by an approved method. (d) Surrender the foreign exchange received from export to the exchange control authority through authorized dealer.

Insurance The goods that are exported may be subject to certain maritime perils. The risks of such perils may be covered under certain marine insurance. Who should bear the cost of the insurance depends on the terms of the sales. For instance, under the CIF term, insurance is the responsibility of the exporter. Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance Corporation of India: The National Insurance Company: The New India Assurance Company : The Oriented Fire and General Insurance Company ; and General Insurance Company. The ECGC covers certain export risks, which are not covered by the general insurers.

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Shipping the Goods

Goods may be exported to foreign markets by sea, air, land, road, post and river.

Negotiation of Documents

The set of negotiable documents usually consist of the following:

Letter of Credit, Commercial Invoice, together with the packing slip, GR-1 form, Certificate of Origin, Marine Insurance Policy , Bill of Lading.

Export Incentives

If the exporter is entitled to any export incentives, he should take the necessary steps to realize it.

Export Documents

Commercial Documents

The commercial documents are those which, by customs of trade, are required for effecting physical transfer of goods and their title from the exporter to the importer and the realization of export sale proceeds. 14 out of the 16 commercial have been standardized and aligned to one another. Principal Export Documents (1) Commercial Invoice. (2) Packing List. (3) Bill of Lading. (4) Combined of Inspection/Quality Control (where required) (5) Insurance Certificate/ Policy (In case of CIF export sales contract) (6) Certificate of Origin. (7) Bills of Exchange and Shipment Advice.

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Auxiliary Documents The remaining 8 commercial document are known as the auxiliary documents,. They are as follows: (1) Proforma Invoice. (2) Intimation for Inspection. (3) Shipping Instruction. (4) Insurance Declaration. (5) Shipping Order. (6) Mate Receipt. (7) Application for Certificate of Origin. (8) Letter to the Bank for Collection/Negotiation of Documents.

Regulatory Documents

On an average, there are 9 regulatory documents associated with the preshipment stage of an export transaction are as follows: (1) Gate Pass/ Gate Pass II- Prescribed by Central Excise Authorities. (2) AR4/AR4A Form-‘Prescribed by Central Excise Authorities. (3) Shipping Bill/Bill of Export – Prescribed by Central Excise Authorities. For Export of goods. For Export of duty free goods. For Export of dutiable goods. For Export of goods under claim for duty drawback.

(4) Export Application /Dock Challan- Prescribed by Port Trust .Port Trust copy of Shipping Bill. (5) Receipt for payment of Port Charges. (6) Vehicles Ticket. (7) Exchange Control Declaration- Prescribed by RBI GR/PP Forms. (8) Freight Payment Certificate. (9) Insurance Premium Payment Certificate.

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