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I hereby declare that the project entitled A study on Export & import procedure of Adani Wilmar limited Bundi is a record of independent research work carried out by me under the able guidance of my faculty guide Miss Vidhi Sharma of Maharishi Arvind International Institute Of Technology, and my project guide Mr. Rajnish saini ( H.R. Manager ) I also declare that this project is the result of my effort and has not been submitted to any other University or Institution for the award of any degree, or personal favor whatsoever. All the details and analysis provided in the report hold true to the best of my knowledge.

Place: KOTA Date: June


No good work flows without the help from Faculty Members, Industry Professionals, Colleagues, Organization and Friends. Training is one of the most important and crucial aspect of management. It is an indispensable part of management studies. Training basically bring into practicality the matter of theory which undoubtedly strengthens and makes clear the concepts of the subject thus making it all the more interesting the challenging. Thanks giving seem to be the most Pleasant of all jobs, but it is difficult when one tries to put into words. I am thankful to many people who helped directly or indirectly for making this project success. I must mention some of them whose help was considerably important. Firstly, I take the opportunity to thank Mr.Rajineesh saini ( H.R manager of Adani wilmar limited) who always encouraged me to embark on the path of learning. I take the opportunity to thank Dr.Gurudatt Kakkar (coordinator of MAIIT) who always stood by me and encouraged me to embark on the path of learning I am grateful to Miss Vidhi sharma (faculty & project guidance) for her continuous supervision & guidance provided to me for my report .

I also wish thank to my friends Arvind gupta, Abhishek chaturvedi, Deepanker suwalka, Deepika bagla , Munawar ali, Neha patira & Sneha patni to give me proper guidance and support for preparing the Project. Last but not the least; I would like to thank to my Parents & my sister miss Manica Birla , Mahak Mantri & my jiyaji Mohit mantri whose constant support in design of report that has seen through the task of successfully completion of this report.

The MBA programme is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his carrier activities and it is true that Experience is best teacher. Training is an integral part of MBA and each and every student has to undergo the training for 5 weeks in a company and then prepare a project report on the same after the completion of training.

I have completed summer training in Adani Wilmar Limited, Bundi. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. It help me to know a export & import procedure which help me getting knowledge about company export procedure & which item would be exported. Industry and company profile gives brief knowledge of company and industry. Product profile gives detailed knowledge of different product of the company. Then in another phase of project there is a methods of export procedure, how much amount to be exported & to whom. Sustained hard work, self confidence, determined efforts to face all hardship in doing training and aim always in mind have help to complete the task in time.

Adani Wilmer Ltd. Is Indias foremost oil manufacturing company. It is among the famous oil producing company. The company is recognized by its. Brand name i.e. FORTUNE REFINED OIL.

The Fortune brand has captured 18% of the total edible oil market . In the refined soyabean category fortune has a market share of 45%. The market share of fortune refined sunflower oil has increase from 4% to 9% in the last 1 year.

In the industry the internal audit occur every week by the C.A & the weekly audit is occur by the employee of the company with the help of SAP. The routine transaction is checked by the internal audit department. AWL has lead to the export of 30% of India's Soya bran meal on a yearly basis. Soya meal is the crushed seed after the oil has been extracted. It has a big export market, and is used to feed cattle/chicken. It also accounts to the export of value added products like the edible defatted soy flour, full fatted edible flour, Soya lecithin, Soya granules and Soya chunks In Awl the crude oil is imported from different country like Singapore in Mundra port (Gujarat) then the company refined the oil &

distributed in other states. Sometime the company dispatch the oil in other states according to demand occur.


Chapter 1 :- Company profile

Introduction of the company Groups of Adani Units of AWL Product profile Introduction of the company profile of Bundi Department Profile

Chapter 2 :- Project profile

Introduction of import Types of import Import procedure of AWL Introduction of export

Types of export Introduction of export finance Types of export finance Export profile of AWL Export procedure of AWL Distribution channel Market exchange: main instrument Internal audit

Chapter 3:- Research methodology

Introduction of Research methodology Research Design Data collection

Chapter 4 :- Conclusion & Finding


Founded in 1988 the Adani Group has grown from being a trading house to a diversified and dynamic business group with interests from infrastructural development to FMCGs. A leader in international trading and infrastructure development, the Adani Group is engaged in a continuous Endeavour to maximize potentialities by synergizing the multiple businesses of the Group creating optimum business model.

The Wilmar Group is one of Asia's largest integrated agribusiness groups and one of Asia's largest palm oil refiners, and crushers of copra and palm kernel. It is also an oil palm plantation owner with palm fruit processing mills in Indonesia and has plans to expand into the bioenergy sector to tap into the fast growing demand for green energy. The Wilmar Group is primarily involved in palm oil and related business, with integrated business operations ranging from oil palm cultivation and milling to the refining, processing, branding, merchandising and distribution of a wide range of palm oil and lauric and related products. In addition, it is also engaged in the merchandising of non-palm oil related products such as soya bean, crude soya bean oil and other grains, and fertiliser. The Group has made foray into high growth sector like Power, Infrastructure, Global Trading, Logistics, Energy and is recognized for creating benchmarks for others to follow We are the operator of largest private port in India, We are the developer of largest multiproduct SEZ in India, We have the largest edible oil refining capacity in India, and we are one of the largest trading houses in India. The group is committed to

constantly deliver good returns to its stakeholders and convert partnerships into winning combination.


Adani Wilmar Limited (AWL) is a 50:50 joint venture between the Adani Group, India leader in International Trading and Private Infrastructure, and the Wilmar Holdings Singapore the worlds second largest player in trading and refining of edible oils having plantation and refineries in Malaysia, Indonesia and China and equipped with a fleet of vessels to ship the produce throughout the world. Together Adani Group and Wilmar Group have set up India's first port based refinery in 1999, at Mundra, Gujarat. Today the Mundra refinery is one of India's largest and most sophisticated oil refineries

FORTUNE, RAAG and JUBILEE are the brands under which AWL sells its range of edible oil, vanaspati and bakery shortening . It is counted among the top FMCG brands in the country. We deal both in bulk and consumer pack for Soyabean Oil, Sunflower Oil, Palm Oil, Mustard Oil, Groundnut Oil. Our thrust for excellence has enabled us to call on international market. The acceptability of our quality in India, gives us the drive to venture the Middle East, CIS and African countries

A globally competitive, India focused MNCS with leadership in edible oil business providing branded products and services to the delight of customer and stakeholder

To set a pattern of growth, distinct and unique, by being proactive on both the supply and demand side of global trade and to promote development of world class infrastructure facilities

Awards & Recognition

According to a survey conducted by Business World in 2005, AWL was one of the top three Food Processing Companies in India Fortune brand has been voted as the winner of Readers Digest Trust Brand Award 2006, 2007 & 2008 under the gold category Fortune was awarded the Globe oil Award 2006 for the Fastest Growing Edible Oil Brand Mantralayam refinery was presented the Award for Second Highest Processor of Sunflower Seed Oilcake for the year 2005-06 & 2006-07 by SEA Niryat Shree Gold Trophy (2004-05) Niryat Shree Gold Trophy (2003-04) Awarded as Five Star Export House.

ICSI award for Excellence in Corporate Governance, 04 among the Top 25 Companies Awarded the Golden Super Star Trading House. 38th in BS 1000-Indias Corporate Giants 2003 SOPA Award, 2001-02, 2000-01, 1999-00 Gold Trophy, SRTEPC 1999-00 and 2000-01 FIEOs Niryat Shree Gold Trophy, 1999-00

Organisation structure of AWL

Managing Director Executive Director

Asst.Vice President

G.M (Trading)

Manager (HR&admin. )

D.G.M (Comm&I.T)

Asst.Manager (Material)

GM (F&A)

Head Internal Audit

Organistion structure of Adani Wilmar Ltd. Plant

Executive Director

Head-Plant Mundra

Plant Mantralya m

Head-Haldia (Operations)

Unit-Head Bundi

AWLS Journey
Since its launch on 24th November 2000, AWLs Fortune brand has been a huge success. Fortune has become one of the largest selling edible oil brand in India. The key reasons behind this success are :1. State-of-the-art technology :- The technology used in the

refinery has been imported from De smet of Belgium and Alfa Laval of Sweden. The manufacturing process is computerized with the most stringent quality checks and online monitoring that meets US FDA standards. .
2. Wide spread distribution :- AWL has a

widespread distribution network spread across the length and breadth of the country. These cater to more than 5000 distributors, 600 super stockiest and numerous brokers and other trade associates currently Awls retail network stretches to more 1000000 outlets catering more than 20 million households a cross India.
3. Brand Building :- High visibility marketing through advertising

on television ,magazine and trade journals, regular promotions and one on one interaction with consumers are undertake.

Distributors and retailers are constantly given rewarding schemes and offers

The Fortune brand has captured 18% of the total edible oil market In the refined soyabean category fortune has a market share of 45% The market share of fortune refined sunflower oil has increase from 4% to 9% in the last 1 year

Other group of adani

ADANI is Business of Success Adani Enterprises Ltd.

Adani Enterprises plans major initiatives in ENERGY, REAL ESTATE & AGRI BUSINESSES ENERGY AEL has a significant presence in the Energy commodities of coal, power, petroleum products trading and city gas distribution. In order to be present across the value chain in these business areas, the company initiated its foray into power generation, coal mining, oil & gas exploration, as well as expanding the city gas distribution footprint to several other cities in India. 1. Power Generation In the power generation space, the company is targeting a total power generation capacity of around 10,000 MW to be operational in a phased manner. Current Initiatives Capacity M 2. Coal Mining The company has begun initial operation of coal mining at Indonesia, on the coal blocks at Bunyu Island, which are slated to commence operations by April 08, and will reach full production capacity in the next 2 years..

3. City Gas Distribution The city gas distribution business of supplying clean and environment friendly fuel to the industries, commercial establishments and households through a piped gas network is already operational in the cities of Ahmedabad and Baroda. 4. Oil & Gas Exploration In the oil and gas exploration field, the company through its subsidiary Adani Welspun xploration Limited (AWEL), a 65/35 JV Company of Adani Group and Welspun Group,.has lready three exploration blocks under its purview in India and Thailand

REAL ESTATE The company made its foray into large integrated real estate projects a year back and now as more than six projects in progress entailing around 100 mn sq. ft of development. large integrated township spread over 578 acres is coming up at Ahmedabad with over 40 n. sq. ft of development. AGRI Presently, AELs Agri initiatives through its various entities comprises of :Edible Oil Business: Adani Wilmar Ltd. (50:50 JV with Wilmar Group of Spore) Total Refining Capacity: 3,200 Tonnes Per Day Total Crushing Capacity: 2,900 Tonnes Per Day (including 2,100 TPD Capacities of Toll units) Fruits & Vegetables: Adani Agrifresh Ltd. Current Capacity: 18,000 MT The company has set up modern Controlled Atmosphere Storage Facilities for storage of fruits and vegetables with European technology, which enhances the storage life of the fruits and vegetables to as long as 8-9 months.


Adani Group with its turnover exceeding Rs.20250 crores (US $ 4.5 billion) in 2006, is one of the fastest growing corporate houses in India. Its flagship company Adani Enterprise Ltd [formerly known as Adani Exports Ltd], is one of the largest trading companies in India with Five Star Trading House status (Highest status conferred by the Govt. of India) Adani Exports trades in nearly 40 commodities in more than 55 countries around the world. The Group owns a fully functional multi-purpose port at Mundra in the Gulf of Kutch, Gujarat The Group has also set up a BPO in Ahmedabad, iCall India Ltd. which caters to both International and Domestic clients. Adani Group is also involved in infrastructure development which includes developing a Natural Gas distribution project, building a township and an SEZ at Mundra. Adani Group is also involved in infrastructure development which includes developing a Natural Gas distribution project, building a township , an SEZ at Mundra and various ports along the Indian coastline. Adani Group has emerged as an integrated and diversified group with leadership in the areas of global trading, edible oil manufacturing and infrastructure development



3 Packing units


Sales &Marketing




The company has strategically located its refining and processing facilities to cater to different parts of the country

Mundra (Gujarat) AWL's largest state-of-the-art refinery is based at Mundra in the Gulf of Kutch in Gujarat and is Indias first port based refinery. AWL's Mundra refinery refining capacity of 2200 TPD and hydrogenation capacity of 350 TPD. Mantralayam (Andra Pradesh) This plant was acquired from ITC & is reputed to be one of the best plants in India for sunflower oil production. The plant has a capacity to crush 450 TPD of seeds and refining capacity of 180 TPD oil. Bundi (Rajasthan) This plant was taken over from RICO industries. It has a capacity to crush 450 TPD of seeds and refine 150 TPD of oil. Haldia (West Bengal) This plant was acquired from Acalmar, and has a capacity to refine 600 TPD of oil


Fortune Refined Soyabean Oil Fortune Refined Groundnut Oil Fortune Fryola Fortune Pure Mustard Oil Fortune Refined Sunflower Oil Fortune Kachi Ghani Mustard Oil Fortune Naturelle Pure Coconut Oil Fortune Masterchef Bakery Shortening
Fortune Refined Soyabean Oil

Fortune Refined Soyabean Oil is light, odorless and healthy oil. Most importantly it contains OMG3 (Omega 3 fatty acids) an essential PUFA for the human body that has disease-countering benefits for heart, eyes, immune system and foetus. It is also a boon for diabetics. Soyabean oil is the preferred oil of many a household across the world

Fortune Refined Sunflower Oil

Fortune Refined Sunflower Oil is a light, nutritious and a healthy oil that is easy to digest. Fortune Refined Sunflower Oil goes through the highly specialized process of winterization that removes almost all the wax content in the oil, making it the lightest oil available today. It consists mostly of polyunsaturated fatty acids and is low in saturated fats. This oil is also a rich source of Vitamin E, which are a fat-soluble vitamin and an antioxidant

Fortune Refined Groundnut Oil Refined Groundnut Oil is traditionally preferred oil for deep-frying, as it preserves the natural aroma of the food cooked/fried in it and has a high

smoke point. Fortune Refined Groundnut Oil is sourced from the best groundnut oil available in India. Crystal clear oil, it is light to consume and is the preferred oil among various consumers. Fortune Kachi Ghani Mustard Oil Fortune Kachi Ghani Mustard Oil is made from the first press of the mustard in the traditional way by slowly crushing the best mustard seeds in a temperature controlled environment to retain its pungency and natural properties. Its high pungency level enhances the taste of the food cooked in it and helps stimulate your appetite. It also helps in keeping pickles fresh for a longer duration while retaining their traditional flavor. Fortune Fryola Fortune Fryola is exceptional long-life deep-frying oil, which has been specially created to fulfill your Deep Frying needs. At Fortune, we observed that people today have become more health conscious and they demand less oily and light food. But ordinary cooking oils degrade very fast and make the food oily, sticky and less tasty. Based on these insights, we have created Fortune Fryola especially for Hotels, Restaurants, Caterers, Food Vendors etc. so that you can make tastier & healthier fried products for your customers. Fortune Pure Mustard Oil Fortune Pure Mustard Oil is targeted primarily at those customers who want the goodness of mustard oil but with less pungency.

Fortune Naturelle Pure Coconut Oil

Fortune Naturelle Pure Coconut Oil is made from superior quality coconuts brought from the rich coastal regions of Kerala. Manufactured as per the Direct Micro Expeller (DME) method, Naturelle is finally obtained from a multi level filtering process, which assures that all the nutritious values of coconut are kept intact. This is why Naturelle is 100% pure, healthy and is endowed with innumerable health benefits. Fortune Masterchef Bakery Shortening Fortune Masterchef range of Bakery Shortening has been introduced keeping in mind the specific needs of the bakery products. It has the required plasticity and stiffness characteristics which are customized as per the specific need of bakery products. Some of the qualities of Fortune Masterchef Bakery Shortening are high melting point which does not deteriorate hence providing stability to the products. It is smooth and has no granules in it. It is an ideal product for institutional uses in the bakeries and manufacturing of bakery products. It has four variants :For creaming and icing on cakes and pastries For puffs and kharis. For biscuits, cookies and cakes. For all bakery purposes


This plant was taken over from RICO industries. It establish on 1st april 2004. It has a capacity to crush 450 TPD of seeds and refine 150 TPD of oil. The plant provides ideal location for processing both mustard and soyabean oil. Apart from it there is also a processing facility at Jaipur, which produces the premium quality pungent mustard oil packed as Fortune "Kachi Ghani", exclusively to cater to the taste of pungent and pure mustard oil of eastern India. The new project will start in bundi of refining of mustard oil with the capacity of 1000 TPD. From Bundi the oil is transfer in 3 state i.e Haryana, Punjab and Rajasthan. In rajasthan there is 4 depos in Jaipur, Jodhpur, Udaipur, Shriganganagar.

Business Activity of the Company

The main business activities of the Company are seed crushing, Manufacturing of refined vegetable oil, soya lecithin, edible soya floor, deoiled cake, soya lecithin and other value added products, Manufacturing of Vanaspati, Processing of milk and its products, Wind Power Generation, Housing & Property Developments, Trading activities by Import and Export of edible oil & other commodities.


Soya Flakes are the primary derivatives of de-oiled soyabeans. They make excellent raw material for many products. Soya Flakes are the largest used raw material for Soya Sauce manufacturing. Soya Flours Soya Flours come in five variants and find myriad uses, right from fortification of the human diet to medicine to chemicals and even as glue in wood manufacturing. In home cooking, Soya Flour is used as a thickening agent in gravies and sauces. In baked products. Soya Grits Soya Grits are obtained from selected good quality yellow Soyabean by a process involving solvent extraction using food grade hexane under controlled heat treatment and grinding. Soya Grits are available in 50 kg HDPE bags and can be stored in their original packing for six months at a temperature under 25C in dry conditions. Soya TVP (Textured Vegetable Protein) Soya TVP is widely used as a meat substitute and extender in millions of households everyday. It is perhaps the most affordable form of easily available quality nutrition. Soya Lecithin We produce Soya Lecithin in Liquid and Powder forms obtained from solvent extracted Soyabean Oil. Powder Lecithin is available in corrugated boxes with inside liners and can be stored in its original packing for one year in a cool and dry place, while Liquid Lecithin is available in drums.

1. Security department 2. Logistic department 3. Trading department 4. Commercial department 5. Accounts department 6. Internal audit department 7. Store / Purchase department 8. Quality department 9. Human resource department 10.Production department 11.Mechanical department 12.Packaging department 13.System department 14.Electrical department

1. Security department:- The main motive /work of this department is

to secure plant and man and also check the vehicle when it is on weighbridge at the time of entry and exit of the vehicles .
2. Logistic department:-

The main work of this department is to arrange the supply chain system ( good transportation system), for this they can deal with the 6-7 transporters company. The approx cost of transportation is .92rs per kg. The oil is transfer to 4 depos with the different quantity that are as follows : Jaipur approx 680 tonne per month Jodhpur approx 900 tonne per month Udaipur approx 225 tonne per month Ganganagar approx 500-600 tonne per month dispatch of finished product and by-product. Purchase of seed can be done by different method, method are as follows: Farmer purchase (i) Direct farmer purchase (ii) Indirect farmer purchase Mandi purchase (i) Mandi direct purchase (ii) Mandi indirect purchase Condition purchase Dalal purchase

3. Trading department:- It mainly deal with the seed purchase and

4. Commercial department:- All the payment made and received by this department. 5. Accounts department :- This department mainly deal with the record of amount ( in Rs) of receiving and dispatching the material and product. The FIFO method used and daily maintance of stocks.

6. Internal audit department:- Internal audit is an appraisal activity performed within an organization. It aims at reviewing the financial aspects and other policies and procedures of the company. Internal audit becomes more important in case of large organization in order to prevent non-compliance of the companys rules and regulations. 7. Store / Purchase department :- Purchase department is usually deal in purchasing technical / mechanical / packaging material and administrative things like fan, a.c etc. The store department manage all these purchase item in store. Scrap material is sold by this department. 8. Quality management department :- This department usually check the quality of seeds, doc and oil. The process of checking are as follows: At the time of seed purchase At the time of processing At the time of packaging 9. Human resource department:- This department is deal with manpower. The H.R forecast, developing, implementing and controlling the manpower by which the oragnisation ensure that it has a right number of people , at right place , at right time 10. Production department:- From the seed cleaner to refinery oil whole process is mange by this department. 11.Mechanical department;- This department emphasis on minimum breakdown and maximum utilization

12. Packaging department :- This department deals with the packaging of refined oil in a different contents i.e Tin - 125000 per month

Jar Bottle

- 5 lit- 70000 per month 15 lit 15000 per month - 120000 per month

13. System department:- This department check or control the all system (computer) in the industry. 14. Electrical department:- This department check the supply of electricity properly in the industry or nor if any fault occur it will be handle by this department.

Chapter :- 2


An import is any good or service brought into one country from another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Import goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country. Import of goods normally requires involvement of the Customs authorities in both the country of import and the country of export and are often subject to import quotas, tariffs and trade agreements. When the "imports" are the set of goods and services imported, "Imports" also means the economic value of all goods and services that are imported. The macroeconomic variable I usually stands for the value of these imports over a given period of time, usually one year. To bring in from abroad; to introduce from without; especially, to bring (wares or merchandise) into a place or country from a foreign country, in the transactions of commerce; -- opposed to export.

Balance of trade
This is a difference in value for import and export for a country. A country has demand for an import when domestic quantity demanded exceeds domestic quantity supplied, or when the price of the good (or service) on the world market is less than the price on the domestic market. The balance of trade, usually denoted NX, is the difference between the value of the goods (and services) a country exports and the value of the goods the country imports. NX = X - I, or equivalently I = X - NX A trade deficit occurs when imports are large relative to exports. Imports are impacted principally by a country's income and its productive resources. For example, the US imports oil from Canada even though the US has oil and Canada uses oil. But consumers in the US are willing to pay more for the

marginal barrel of oil than Canadian consumers are, because there is more oil demanded in the US than there is oil produced. In macroeconomic theory, the value of imports I can be modeled as a function of the domestic absorption A and the real exchange rate . These are the two largest factors of imports and they both affect imports positively hope you get all of this

Type of imports
There are two basic types of imports: 1. Industrial and consumer goods 2. Intermediate goods and services, Companies import goods and services to supply to the domestic market at a cheaper price and better quality than competing goods manufactured in the domestic market. Companies import products that are not available in the local market. There are three broad types of importers: 1. Looking for any product around the world to import and sell. 2. Looking for foreign sourcing to get their products at the cheapest price. 3. Using foreign sourcing as part of their global supply chain. Direct-import refers to a type of business importation involving a major retailer (e.g. Wal-Mart) and an overseas manufacturer. A retailer typically purchases products designed by local companies that can be manufactured overseas. In a direct-import program, the retailer bypasses the local supplier (colloquial middle-man) and buys the final product directly from the manufacturer, possibly saving in added costs. This type of business is fairly recent and follows the trends of the global economy.

Import in AWL
In Awl the crude oil is imported from different country like Singapore in Mundra port (Gujarat) then the company refined the oil & distributed in other states. Sometime the company dispatch the oil in other states according to demand occur

Import Procedures of AWl

Goods are imported in India through sea, air or land. Goods can come through post parcel or as baggage with passengers. Procedures naturally vary depending on mode of import Procedures have to be followed by person-in-charge of conveyance as well as the importer. WHO IS 'PERSON IN CHARGE' - As per section 2(31), 'person in charge' means (a) In case of vessel - its master (b) In case of aircraft - its commander or pilot-in-charge (c) In case of train - its conductor or guard and (d) In case of vehicle or other conveyance - its driver or other person in Procedure to be followed by the Carrier - The 'person in charge of conveyance' (carrier of goods) has to follow prescribed procedure. Arrival at customs port/airport only - Section 29 provides that person-incharge of a vessel or an aircraft entering India shall call or land at customs port or customs airport only. It can land at other place only if compelled by accident, stress of weather or other unavoidable cause. In such case, he should report to nearest police station or Customs Officer. While arriving by land route, the vehicle should come by approved route to land customs station only. Import Manifest / Report- Person-in-charge of vessel, aircraft or vehicle has to submit Import Manifest / Report. [also termed as IGM - Import General Manifest]. (In case of a vessel or aircraft, it is called import manifest, while in case of vehicle, it is called import report.) The import manifest in case of vessel or aircraft is required to be submitted prior to

arrival of a vessel or aircraft. Import report (in case of vehicle) has to be submitted within 12 hours of arrival at the customs station. If the report / manifest could not be submitted within prescribed time, person-in-charge or any person specified as responsible by a notification is liable to penalty upto Rs 50,000. Such penalty will not be imposed if the excise officer is satisfied that there was sufficient cause for the delay. [section 30(1)]. IGM can be submitted electronically through floppy where EDI facility is available. IMPORT MANIFEST IS REQUIRED TO BE SUBMITTED BEFORE ARRIVAL OF AIRCRAFT OR VESSEL - Section 30(1) of Customs Act provides that Import Manifest should be filed before arrival of ship or aircraft. Normally, the Agents submit the Import Manifest before arrival, so that maximum possible formalities are completed before vessel or aircraft arrives. This also enables importers to file Bill of Entry in advance. Grant of Entry Inwards by Customs Officer - Unloading of cargo can start only after Customs Officer grant Entry Inwards. Such entry inwards can be granted only when berthing accommodation is granted to a vessel. If there is heavy congestion at port, shipping berth may not be available and in such case, Entry Inwards cannot be granted. This date is highly relevant for determining rate of customs duty applicable. Carrier responsible for shortages during unloading - If the goods are short landed, the carrier is liable to pay penalty upto twice the amount of duty payable on such short landed goods. It has been held that tally sheet prepared by Port Trust authorities on unloading of goods is a statutory document and should be accepted in preference to steamer survey

Procedure by Importer
The importer importing the goods has to follow prescribed procedures for import by ship/air/road. (There is separate procedure for goods imported as a baggage or by post.) Bill of Entry - This is a very vital and important document which every importer has to submit under section 46. The Bill of Entry should be in prescribed form. The standard size of Bill of Entry is 16" 13". However, for computerisation purposes, 15" 12" size is permitted. (Mumbai Customs Public Notice No. 142/93 dated 3-11-93). Bill of Entry should be submitted in quadruplicate original and duplicate for customs, triplicate for the importer and fourth copy is meant for bank for making remittances. Under EDI system, Bill of Entry is actually printed on computer in triplicate only after out of charge order is given. Duplicate copy is given to importer. Types of Bill of Entry - Bills of Entry should be of one of three types. Out of these, two types are for clearance from customs while third is for clearance from warehouse. BILL OF ENTRY FOR HOME CONSUMPTION - This form, called Bill of Entry for Home Consumption, is used when the imported goods are to be cleared on payment of full duty. Home consumption means use within India. It is white coloured and hence often called white bill of entry. BILL OF ENTRY FOR WAREHOUSING - If the imported goods are not required immediately, importer may like to store the goods in a warehouse without payment of duty under a bond and then clear from warehouse when required on payment of duty. This will enable him to defer payment of customs duty till goods are actually required by him. This Bill of Entry is printed on yellow paper and often called Yellow Bill of Entry. It is also called Into Bond Bill of Entry as bond is executed for transfer of goods in warehouse without payment of duty. BILL OF ENTRY FOR EX-BOND CLEARANCE - The third type is for Ex-Bond clearance. This is used for clearance from the warehouse on payment of duty and is printed on green paper. The goods are classified and

value is assessed at the time of clearance from customs port. Thus, value and classification is not required to be determined in this bill of entry. The columns in this bill of entry are similar to other bills of entry. However, declaration by importer is not required as the goods are already assessed. RATE OF DUTY FOR CLEARANCE FROM WAREHOUSE - It may be noted that rate of duty applicable is as prevalent on date of removal from warehouse. Thus, if rate has changed after goods are cleared from customs port, customs duty as assessed on yellow bill of entry and as paid on green bill of entry will not be same. Mention of BIN on Bill of Entry A BIN (Business Identification Number) is allotted to each importer and exporter w.e.f. 1.4.2001. It is a 15 digit code based on PAN of Income Tax (PAN is a 10 digit code). [Earlier an EC (Import Export code) number issued by DGFT was required to be mentioned on Bill of Entry]. Filing of Bill of Entry - Normally, Bill of Entry is filed by CHA on behalf of the importer. Customs work at some ports has been computerised. In that case, the Bill of Entry has to be filed electronically, i.e. through Customs EDI system through computerisation of work. Procedure for the same has been prescribed vide Bill of Entry (Electronic Declaration) Regulations, 1995. Documents to be submitted by Importer - Documents required by customs authorities are required to be submitted to enable them to (a) check the goods (b) decide value and classification of goods and (c) to ensure that the import is legally permitted. The documents that are essentially required are : (i) Invoice (ii) Packing List (iii) Bill of Lading / Delivery Order (iv) GATT declaration form duly filled in (v) Importers / CHAs declaration duly signed (vi) Import Licence or attested photocopy when clearance is under licence (vii) Letter of Credit / Bank Draft wherever necessary (vii) Insurance memo or insurance policy (viii) Industrial License if required (ix) Certificate of country of origin, if preferential rate is claimed. (x) Technical literature. (xi) Test report in case of chemicals (xii) Advance License / DEPB in original, where applicable (xiii) Split up of value of spares, components and machinery (xiv) No commission declaration. A declaration in prescribed form about correctness of information should be submitted. The Noting is now done electronically in large ports, while it is done manually in small ports. Thoka Number (Serial Number) is given while

noting the Bill of Entry. Electronic submission under EDI system Where EDI system is implemented, formal submission of Bill of Entry is not required, as it is generated in computer system. Importer should submit declaration in electronic format to Service Centre. A signed paper copy of declaration for non-repudiability should be submitted. Bill of Entry number is generated by system which is endorsed on printed check list. Original documents are to be submitted only at the stage of examination. Assessment of Duty and Clearance The documents submitted by importer are checked and assessed by Customs authorities and then goods are cleared. Section 2(2) defines assessment as follows Assessment includes provisional assessment, reassessment and any order of assessment in which the duty assessed is Nil. Thus, assessment includes Nil assessment. Noting of Bill of Entry - Bill of Entry submitted by importer or Customs House Agent is cross-checked with Import Manifest submitted by person in charge of vessel / carrier. It is noted if the description tallies. Noting really means taking on record by customs officer. This date is relevant for determining rate of customs duty. Thoka number (serial number) is given in the import section. Otherwise, it is returned for clarifications. In case of EDI system, noting is done by the system itself which also generates bill of entry number. Date of presentation of bill of entry is highly relevant and the rate of duty as applicable on this date will be considered for calculating the duty payable. Bill of Entry is accepted only after proper scrutiny vis-a-vis import manifest and various declarations given in bill of entry and attached documents like invoice, bill of lading etc. If such documents are not attached, the authorities can refuse to accept the Bill of Entry, and hence submission of such incomplete Bill of Entry cannot be taken as date of presentation of Bill of Entry - Simla Agencies v. CC - 1993 (63) ELT 248 (CEGAT). Prior Entry of Bill of Entry - After the goods are unloaded, these have to be cleared within stipulated time - usually three working days. If these are not so removed, demurrage is charged by port trust/airport authorities, which is very high. Hence, importer wants to complete as many formalities as

possible before ship arrives. Proviso to Section 46(3) of Customs Act allows importer to present bill of entry upto 30 days before expected date of arrival of vessel. In such case, duty will be payable at the rate applicable on the date on which Entry Inward is granted to vessel and not the date of presentation of Bill of Entry Assessment of Customs duty - Section 17 provides that assessment of goods will be made after Bill of Entry is filed. Date stamp of receipt is put on the Bill of Entry and then it is sent to appraising department either manually or electronically There are various Appraising groups for different Chapter headings. Each group is under an Assistant/Deputy Commissioner. Group consists of Examiners and Appraisers. APPRAISING THE GOODS - Appraiser has to (a) correctly classify the goods (b) decide the Value for purpose of Customs duty (c) find out rate of duty applicable as per any exemption notification and (d) verify that goods are not imported in violation of any law. He can call for any further documents that may be required for assessment. If he is of the opinion that goods have to be examined for appraisal, he will issue an examination order, usually on the reverse of Bill of Entry. If such order is issued, the Bill of Entry is presented to appraising staff at docks / air cargo complexes, where the goods are examined in presence of importers representative. Assessment is finalised after getting the report of examination VALUATION OF GOODS - As per rule 10 of Customs Valuation Rules, the importer has to file declaration about full 'value' of goods. If the assessing officer has doubts about the truth and accuracy of 'value' as declared, he can ask importer to submit further information, details and documents. If the doubt persists, the assessing officer can reject the value declared by importer. [rule 10A(1) of Customs Valuation Rules]. If the importer requests, the assessing officer has to give reasons for doubting the value declared by importer. [rule 10A(2)]. If the value declared by importer is rejected, the assessing officer can value imported goods on other basis e.g. value of identical goods, value of similar goods etc. as provided in Customs Valuation Rules. [This amendment has been made w.e.f. 19.2.98, as per WTO agreement. However, it has been held that burden of proof of under valuation is on department]. - - Assessing Officer should not arbitrarily reject the declared value and increase the assessable value. He should follow

due process of law and issue appealable order. MF(DR) circular No. 16/2003-Cus dated 17-3-2003. APPROVAL OF ASSESSMENT - The assessment has to be approved by Assistant Commissioner, if the value is more than Rs one lakh. (in cases covered under fast track clearance for imports, appraiser is also authorised to approve valuation). After the approval, duty payable is typed by a pinpoint typewriter so that it cannot be tampered with. As per CBE&C circular No. 10/98-Cus dated 11-2-1998, Assessing Officer should sign in full in Bill of Entry followed by his name, preferably by rubber stamp. EDI ASSESSMENT In the EDI system, the cargo declaration is transferred to assessing officer in the groups electronically. Processing is done on the screen itself. All calculations are done by the system itself. If assessing officer needs clarification, he can raise a query. The query is printed at service centre and importer replies through service centre. Facility of tele-enquiry about status of documents is provided in major customs stations. Under EDI, normally, documents are inspected only after assessment. After assessment, copy of Bill of Entry is printed at service centre. Final Bill of Entry is printed only after Out of Charge order is given by customs officer. PAYMENT OF CUSTOMS DUTY - After assessment of duty, necessary duty is paid. Regular importers and Custom House Agents keep current account with Customs department. The duty can be debited to such current account, or it can be paid in cash/DD through TR-6 challan in designated banks. After payment of duty, if goods were already examined, delivery of goods can be taken from custodians (port trust) after paying their dues. If goods were not examined before assessment, these have to be submitted for examination in import shed to the examining staff. After shed appraiser gives out of charge order, delivery of goods can be taken from custodian. First and second system of assessment - There are two systems of assessment. Section 17(2) provides for assessment after examination of goods and section 17(4) provides for assessment on basis of documents, followed by inspection and testing of goods. First appraisement system or 'first check procedure' is followed if the appraiser is not able to make assessment on the basis of documents

submitted and deems that inspection is necessary. Goods are examined first and then these are assessed. This method is followed only if assessment is not possible on basis of documents. - - The importer himself may also request 'first check procedure', if he cannot give all required details regarding description / value of goods. He has to make request for first check examination at the time of filing of Bill of Entry or at data entry stage in case of EDI. He has to give reason for seeking first appraisement. The examination order is recorded on Bill of Entry and then returned to importer / CHA. It is then presented to import shed for examination. The shed appraiser / Dock examiner examines the goods as per examination order and records his findings. If samples are required, they are taken out. In case of EDI system, the report of examination is given in the computer itself. The goods are then assessed to duty by appraiser. In Second Appraisement System or 'second check procedure', which is normally followed, assessment is done on basis of documents and then goods are examined. Such examination is not mandatory. It is done on selective basis on the basis of risk assessment or specific intelligence report. Section 17(4) of Customs Act specifically provides that if initially assessment is done on basis of documents, re-assessment can be done after examination or testing of goods or otherwise, if it is found subsequent to examination or testing or otherwise, that any statement made on Bill of Entry or any information supplied is not true in respect of matter relevant to assessment of duty. First appraisement is generally carried out in following cases - * If complete documents are not submitted * Goods are to be tested for correct classification * Goods are re-imported * Goods are damaged or deteriorated and abatement is claimed * Goods are abandoned and remission of duty is applied for * When goods are provisionally assessed * When importer himself requests for examination of goods before payment of duty. EXAMINATION OF GOODS - Examiners carry out physical examination and quantitative checking like weighing, measuring etc. Selected packages are opened and examined on sample basis in Customs Examination Yard. Examination report is prepared by the examiner. Accelerated Clearance of Imports) Finance Minister, in his budget speech on 28-2-2003, had announced a self assessment scheme for importers and exporters. As per the scheme, importer will himself determine classification

of goods including claim for exemption benefits. Computer System will calculate the duty based on his declaration. Physical inspection of imported goods will be done by risk-assessment and management techniques on a computer based system and not on the orders of customs examining staff. Audit of import documents will not be by existing system of concurrent audit but will be done by post-clearance audit, as prevalent in developed countries. Subsequently, a Accelerated Clearance of Import and Export Scheme (ACS) has been announced vide MF(DR) circular No. 30/2003-Cus dated 4-4-2003. The scheme is announced through administrative instructions, without making any change in statutory provisions. Hence, the scheme is not same as self removal under Central Excise. Presently, the scheme is introduced on trial basis at Air Customs, Sahar (Mumbai), ICD, New Delhi and Chennai Sea Customs. In case of imports, the scheme will be open to all status holders under EXIM policy, Central and State Government PSUs and other importers who have been importing for at least two years and have filed at least 25 Bills of Entry in preceding year. - - In case of exports, the scheme will be open to all status holders under EXIM policy, EOU/STP/EHTP units whose goods have been sealed in presence of customs/excise officers, Central and State Government PSUs, manufacturer-exporters who have been exporting for at least two years and have filed at least 25 Shipping Bills in preceding year and bulk exporters. - - Certain sensitive items have been excluded from the provisions. Importer/exporter intending to avail this facility has to make application to Commissioner. The clearances will be subject to post clearance audit. Provisional Assessment - Section 18 of Customs Act, 1962 provide that provisional assessment can be done in following cases (a) when Customs Officer is satisfied that importer or exporter is unable to produce document or furnish information required for assessment (b) it is deemed necessary to carry out chemical or other tests of goods (c) when importer/exporter has produced all documents, but Customs Officer still deems it necessary to make further enquiry. In such cases, assessment is done on provisional basis. The importer/exporter has to furnish guarantee/security as required by Customs Officer for payment of difference if any. Goods can be cleared after payment of duty provisionally assessed and after providing the security. After final assessment, difference is paid by importer or refunded to him as

the case may be. If the imported goods were warehoused after provisional assessment, the Customs Officer may require importer to execute a bond for twice the difference in duty, if duty finally assessed is higher [section 18(2) (a)]. The bond is called as 'P D Bond' (Provisional Duty Bond). The bond is with security or surety. Bank guarantee can also be given as a security. Checking of duty drawback / license documents - Documents in respect of Duty Entitlement Pass Book (DEPB), advance license, duty drawback etc. will be checked. Execution of bond and payment of duty - Once the duty is assessed, the bill of entry is returned to importer. The Bill of Entry should be presented to comptist for calculation and pinpointing of the duty. If bond has to be executed, it will be taken in bond section. Payment of duty - If goods are to be removed to a warehouse, duty payment is not required. The goods can be taken to a warehouse under bond, without payment of duty. However, if goods are to be removed for home consumption, payment of customs duty is required. CHA or the importer can take it for payment of customs duty. Large importers and CHA have P.D. accounts with customs. Duty can be paid either in cash or through P.D. account. P. D. account means provisional duty account. This is a current account, similar to PLA in central excise. The importer or CHA pays lumpsum amount in the account and gets credit on the amount paid. He can pay customs duty by debiting the amount in P.D. (Provisional Duty) account. If the importer does not have an account, he can pay duty by cash using TR-6 challan. Of course, payment through PD account is very convenient and quick. The duty should be paid within five working days (i.e. within five days excluding holidays) after the Bill of Entry is returned to the importer for payment of duty. [section 47(2)]. (Till 11-5-2002, the period allowed was only 2 days). Interest for late payment - If duty is not paid within 5 working days as aforesaid, interest is payable. Such interest can be between 10% to 36% as may be notified by Central Government. [Section 47(2) of Customs Act, 1962.]. - - Interest rate is 15% w.e.f. 13-5-2002. [Notification No. 28/2002Cus(NT) dated 13-5-2002] Earlier, interest rate was 24% p.a, w.e.f. 1-32000, as per notification No. 34/2000-Cus(NT)].

Disposal if goods are not cleared within 30 days - As per section 48 of Customs Act, goods must be cleared within 30 days after unloading. Customs Officer can grant extension. Otherwise, goods can be sold after giving notice to importer. However, animals, perishable goods and hazardous goods can be sold any time - even before 30 days. Arms & ammunition can be sold only with permission of Central Government. Out of Customs Charge Order - After goods are examined, it is verified that import is not prohibited and after customs duty is paid, Customs Officer will issue Out of Customs Charge order under section 47. Goods can be cleared from customs area only on receipt of such order. This is an adjudicating order within the meaning of Customs Act, even if it is passed by Appraiser and not by Assistant Commissioner. Demurrage if goods not cleared - Heavy demurrage is payable if goods are not cleared from port within three days. Import of software through data communication - Import of software through data communication / tele-communication is permitted. Since such imports are not available for physical verification, proper accountal in books should be maintained. Unit intending to import software through datalink is required to inform estimated annual requirement to Development Commissioner of EOU / Director of STP. This should be approved by him. [what for ?]. After import of software through internet, written information should be submitted to Director of STP / Development Commissioner of EOU and importer shall get a certificate. This certificate should be submitted to Assistant / Dy Commissioner of Customs within 48 hours, along with Bill of Entry and certificate from Development Commissioner of EOU / Director of STP. He will issue 'out of charge' order. The documents such as invoice etc. will be routed through bank. - MF(DR) circular No. 58/2000-Cus dated 10-7-2000. Relevant Date for Rate and Valuation of Customs Duty - Section 15 of Customs Act prescribes that rate of duty and tariff valuation applicable to imported goods shall be the rate and valuation in force at one of the following dates. (a) if the goods are entered for home consumption, the date on which bill of entry is presented (b) in case of warehoused goods, when Bill of Entry for home consumption is presented u/s 68 for clearance from warehouse and (c) in other cases, date of payment of duty.

CONCEPT OF TERRITORIAL WATERS NOT RELEVANT - It may be noted that concept of date of entering into territorial waters is not relevant for purposes of determination of rate of customs duty.


Export in simple words means selling goods abroad. International market being a very wide market, huge quantity of goods can be sold in the form of exports. Export refers to outflow of goods and services and inflow of foreign exchange. Export occupies a very prominent place in the list of priorities of the economic set up of developing countries because they contribute largely to foreign exchange pool. Exports play a crucial role in the economy of the country. In order to maintain healthy balance of trade and foreign exchange reserve. It is necessary to have a sustained and high rate of growth of exports. Exports are a vehicle of growth and development. They help not only in procuring the latest machinery, equipment and technology but also the goods and services, which are not available indigenously. Exports leads to national self-reliance and reduces dependence on external assistance which howsoever liberal, may not be available without strings. Though Indias export compared to other countries is very small, but one of the most important aspects of our export is the strong linkages it is forging with the world economy which is a great boon for a developing nation like India.


To facilitate sustained growth To stimulate sustained economic growth by providing access to essential raw material, intermediates, components, consumable and capital goods required for augmenting production and providing services To enhance the technological strength and efficiency of Indian agriculture, industry and services thereby improving their competitive strength while generating new employment opportunities, and to encourage the attainment of internationally accepted standards of quality To provide consumers with good quality goods and services at internationally competitive price while at the same time creating a level playing field for domestic purpose


There are essentially three types of exports used in this context: manufactured goods , raw materials and merchandise export. 1. Manufactured Goods The use of manufactured goods as exports is the most common way to achieve export-led growth. However, many times these industries are competing against industrialized countries' industries, which often include better technology, better educated workers, and more capital to start with. Therefore, this strategy for export-led growth must be well thought out and planned. Not only must a country find a certain export that they manufacture well, that industry must also be able to make it in the world market competing with industrialized industries. 2. Raw Materials Using raw materials as an export is another option available to countries. However, this strategy has a considerable amount of risk compared to manufactured goods. The terms of trade greatly affect this plan. Over time, a country would have to export more and more of the raw materials to import the same amount of commodities, making the trade profits very difficult to come by 3. Merchandise export This means that it is available for final consumption of users which are meant for selling in the local market.

Credit and finance is the life and blood of any business whether domestic or international. It is more important in the case of export transactions due to the prevalence of novel non-price competitive techniques encountered by exporters in various nations to enlarge their share of world markets. The selling techniques are no longer confined to mere quality; price or delivery schedules of the products but are extended to payment terms offered by exporters. Liberal payment terms usually score over the competitors not only of capital equipment but also of consumer goods. The payment terms however depend upon the availability of finance to exporters in relation to its quantum, cost and the period at pre-shipment and post-shipment stage. Production and manufacturing for substantial supplies for exports take time, in case finance is not available to exporter for production. They will not be in a position to book large export order if they dont have sufficient financial funds. Even merchandise exporters require finance for obtaining products from their suppliers.


The exporter may require short term, medium term or long term finance depending upon the types of goods to be exported and the terms of statement offered to overseas buyer. The short-term finance is required to meet working capital needs. The working capital is used to meet regular and recurring needs of a business firm. The regular and recurring needs of a business firm refer to purchase of raw material, payment of wages and salaries, expenses like payment of rent, advertising etc. The exporter may also require term finance. The term finance or term loans, which is required for medium and long term financial needs such as purchase of fixed assets and long term working capital. Export finance is short-term working capital finance allowed to an exporter. Finance and credit are available not only to help export production but also to sell to overseas customers on credit.


To cover commercial & Non-commercial or political risks attendant on granting credit to a foreign buyer.

To cover natural risks like an earthquake, floods etc.


The export finance is being classified into two types viz. Pre-shipment finance. Post-shipment finance.

Pre-shipment is also referred as packing credit. It is working capital finance provided by commercial banks to the exporter prior to shipment of goods. The finance required to meet various expenses before shipment of goods is called pre-shipment finance or packing credit.

Financial assistance extended to the exporter from the date of receipt of the export order till the date of shipment is known as pre-shipment credit. Such finance is extended to an exporter for the purpose of procuring raw materials, processing, packing, transporting, warehousing of goods meant for exports.


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

To pay for export documentation expenses.


1. Cash h Packing Credit Loan : In this type of credit, the bank normally grants packing credit advantage initially on unsecured basis. Subsequently, the bank may ask for security. 2. Advance Against Hypothecation : Packing credit is given to process the goods for export. The advance is given against security and the security remains in the possession of the exporter. The exporter is required to execute the hypothecation deed in favour of the bank. 3. Advance Against Pledge : The bank provides packing credit against security. The security remains in the possession of the bank. On collection of export proceeds, the bank makes necessary entries in the packing credit account of the exporter. 4. Advance Against Red L/C : The Red L/C received from the importer authorizes the local bank to grant advances to exporter to meet working capital requirements relating to processing of goods for exports. The issuing bank stands as a guarantor for packing credit. 5. Advance Against Back-To-Back L/C : The merchant exporter who is in possession of the original L/C may request his bankers to issue Back-To-Back L/C against the security of original L/C in favour of the sub-supplier. The sub-supplier thus gets the Back-To-Bank L/C on the basis of which he can obtain packing credit.

6. Advance against Exports Through Export Houses: Manufacturer, who exports through export houses or other agencies can obtain packing credit, provided such manufacturer submits an undertaking from the export houses that they have not or will not avail of packing credit against the same transaction.

Advance Against Duty Draw Back (DBK) :

DBK means refund of customs duties paid on the import of raw materials, components, parts and packing materials used in the export production. It also includes a refund of central excise duties paid on indigenous materials. Banks offer pre-shipment as well as postshipment advance against claims for DBK.

Post shipment finance is provided to meet working capital requirements after the actual shipment of goods. It bridges the financial gap between the date of shipment and actual receipt of payment from overseas buyer thereof. Whereas the finance provided after shipment of goods is called postshipment finance.

Credit facility extended to an exporter from the date of shipment of goods till the realization of the export proceeds is called Post-shipment Credit.


To pay to agents/distributors and others for their services. To pay for publicity and advertising in the over seas markets. To pay for port authorities, customs and shipping agents charges. To pay towards export duty or tax, if any. To pay towards ECGC premium. To pay for freight and other shipping expenses. To pay towards marine insurance premium, under CIF contracts. To meet expenses in respect of after sale service. To pay towards such expenses regarding participation in exhibitions and trade fairs in India and abroad. To pay for representatives abroad in connection with their stay board.


1. Export bills negotiated under L/C : The exporter can claim post-shipment finance by drawing bills or drafts under L/C. The bank insists on necessary documents as stated in the L/C. if all documents are in order, the bank negotiates the bill and advance is granted to the exporter. 2. Purchase of export bills drawn under confirmed contracts : The banks may sanction advance against purchase or discount of export bills drawn under confirmed contracts. If the L/C is not available as security, the bank is totally dependent upon the credit worthiness of the exporter. 3. Advance against bills under collection : In this case, the advance is granted against bills drawn under confirmed export order L/C and which are sent for collection. They are not purchased or discounted by the bank. However, this form is not as popular as compared to advance purchase or discounting of bills. 4. Advance against claims of Duty Drawback (DBK) : DBK means refund of customs duties paid on the import of raw materials, components, parts and packing materials used in the export production. It also includes a refund of central excise duties paid on indigenous materials. Banks offer pre-shipment as well as post-shipment advance against claims for DBK. 5. Advance against goods sent on Consignment basis :

The bank may grant post-shipment finance against goods sent on consignment basis.

6. Advance against Undrawn Balance of Bills : There are cases where bills are not drawn to the full invoice value of gods. Certain amount is undrawn balance which is due for payment after adjustments due to difference in rates, weight, quality etc. banks offer advance against such undrawn balances subject to a maximum of 5% of the value of export and an undertaking is obtained to surrender balance proceeds to the bank. 7. Advance against Deemed Exports : Specified sales or supplies in India are considered as exports and termed as deemed exports. It includes sales to foreign tourists during their stay in India and supplies made in India to IBRD/ IDA/ ADB aided projects. Credit is offered for a maximum of 30 days. 8. Advance against Retention Money : In respect of certain export capital goods and project exports, the importer retains a part of cost goods/ services towards guarantee of performance or completion of project. Banks advance against retention money, which is payable within one year from date of shipment. 9. Advance against Deferred payments : In case of capital goods exports, the exporter receives the amount from the importer in installments spread over a period of time. The commercial bank together with EXIM bank do offer advances at concessional rate of interest for 180 days.

This is one of the most popular and more secured of method of payment in recent times as compared to other methods of payment. A L/C refers to the documents representing the goods and not the goods themselves. Banks are not in the business of examining the goods on behalf of the customers. Typical documents, which are required includes commercial invoice, transport document such as Bill of lading or Airway bill, an insurance documents etc. L/C deals in documents and not goods.

A Letter of Credit can be defined as an undertaking by importers bank stating that payment will be made to the exporter if the required documents are presented to the bank within the validity of the L/C.


Applicant: The buyer or importer of goods Issuing bank: Importers bank, who issues the L/C Beneficiary: The party to whom the L/C is addressed. The Seller or supplier of goods. Advising bank: Issuing banks branch or correspondent bank in The exporters country to whom the L/C is send for Onward transmission to the beneficiary. Confirming bank: The bank in beneficiarys country, which Guarantees the credit on the request of the issuing Bank.

Negotiating bank: The bank to whom the beneficiary presents his Documents for payment under L/C

A Letter of Credit contains these elements:

A payment undertaking given by the bank (issuing bank) on behalf of the buyer (applicant) To pay a seller (beneficiary) a given amount of money on presentation of specified documents representing the supply of goods within specific time limits

These documents conforming to terms and conditions set out in the letter of credit

Documents to be presented at a specified place. In simple words, the Issuing Bank's role is twofold:

To guarantee to the seller that if complete documents are presented, the bank will pay the seller the amount due. This offers security to the seller the bank says in effect "We will pay you if you present documents (XYZ)"

To examine the documents and only pay if these comply with the terms and conditions set out in the letter of credit. This protects the buyer's interests - the bank says "We will only pay your supplier on your behalf if they present documents (XYZ) that you have asked for"


No blocking of funds. Clearance of import regulations. Free from liability. Pre- shipment finance. Non-refusal by importer. Reduction in bad-debts.


Better terms of trade. Assurance of shipment of goods. Overdraft facility. No blocking of funds. Delivery on time. Better relations.


Lacks flexibility. Complex method Expensive for importer Problem of revocable L/C

Export profile of AWL

Adani Wilmar Ltd, a 50:50 joint venture company of Adani Exports Ltd and Wilmar Trading Pte Ltd of Singapore, is setting up a grass root 600-tonne capacity refinery on the east coast to improve its presence in the southern and eastern states. Land for the project was identified in May 2001. Work is scheduled to be completed next February. The company had earlier set up India's largest integrated edible oil refinery at Mundra Port with a capacity of 600 tonnes per day; it also has a vanaspati manufacturing capacity of 100 tonnes per day. AWL has lead to the export of 30% of India's Soya bran meal on a yearly basis. Soya meal is the crushed seed after the oil has been extracted. It has a big export market, and is used to feed cattle/chicken. It also accounts to the export of value added products like the edible defatted soy flour, full fatted edible flour, Soya lecithin, Soya granules and Soya chunks The company is also a major player in the seed meal category in the domestic market. In fact, we are a major player in the export market too. We have 50 per cent share of the total soya meal export from India to Japan, he said. The company is also planning to double its crushing capacity (and hence, turnover) from the current 6,000 tonnes a day and its refining capacity of over 5,000 tonnes a day in the next three years. We have earmarked Rs 650 crore for creating new facilities either through acquisition or greenfield projects. In addition to the repositioning exercise, the company is also revamping its distribution channel. It is moving from the current single channel distribution system to a fivechannel distribution system based on product pricing, product positioning and packaging

AWLs Export division was started in 2004, and our exports markets are the Middle East Countries, South-East Asian Countries, Africa, Ukraine, etc. AWL has been awarded the status of 2 Star Export House, by the Government of India. AWL refined oils meets the CODEX standards WHO and FAO standards. It also meets the standards set by AOCS. We have also applied for HACCP and ISO9001 certification AWL sells its range of edible oils and specialty fats under the brand name Fortune and vegetable Ghee under the brand name Raag. We sell Refined Soyabean Oil Refined Sunflower Oil, Refined Groundnut Oil, Refined Cottonseed Oil, Kachi Ghani Pure Mustard Oil, Filtered Groundnut Oil, Naturelle Pure Coconut Oil and Masterchef Bakery Shortening under the brand name FORTUNE. We were the first to launch Soyabean oil in a packed form in Middle East Countries. Fortune and Raag brands are registered in all Middle East Countries. Today we have distributors set all across the Middle East, covering all A / B class outlets AWL is actively engaged in contract manufacturing / private labeling for numerous international and Indian companies. With its automated state-ofart computer controlled machinery and large manufacturing capacity, it has the capability to meet customer demand

Export procedure
At present, the company is supplying loose packs of edible oil to these countries and plans are afoot to increase export capacity of loose packs of edible oil from 2,000 metric tonnes to 5,000 metric tonnes as well this year, Adani Wilmar Ltd executive director Pranav Adani told FE. The refinery oil is also import by mundra port. The loose oil firstly collect from all manufacturing unit in Mundra port (Gujuart) then according the need of the country it will supply to all the company. The transportation system is ship from ship it is transfer to other countries. Golden Rule: In order to be successful in exporting one must fully research its markets. No one should ever try to tackle every market at once. Many enthusiastic persons bitten by the export bug, fail because they bite off more than they can chew. Overseas design and product requirements must be carefully considered.Always sell as close to the market as possible. All goods for export must be efficiently produced. They must be produced with due regard to the needs of export markets. It is no use trying to sell windows which open outwards in a country where, traditionally, windows open inwards. Selling in Export: In today's competitive world, everyone has to be sold. The customer always has a choice of suppliers. Selling is an honorable profession, and you have to be an expert salesman. On-Time Deliveries: Late deliveries are not always an exporters fault. Dock strikes, go-slows, etc. occur almost everywhere in the world. If one enters into export for the first time, he must ensure of fast and efficient delivery of the promised consignment. Communication: Communication internal and external must be comprehensive and immediate. Good communication is vital in export.

When you are in doubt, pick up the phone or email for immediate clarification. Testing Product: The risk of failure in export markets can be minimized by intelligent use of research. Before committing to a large-scale operation overseas, try out on a small scale. Use the a sample test, and any mistakes can then be corrected without much harm having been done. While the test campaign may appear to cost more initially, remember that some of the cost will be repaid by sales, so that test marketing often turns out to be cheaper.

Accquire Export License

Exports free unless regulated: The current Export Licensing Policy of the Government of India is contained in the new Import Export Policy and Procedures, 1997-2002 as amended upto 31.3.1999. The Policy and Procedures are amended from time to time and for latest position kindly refer to. However, for the sake of information of the prospective exporters, it may be stated that all goods may be exported without any restriction except to the extent such exports are regulated by the ITC (HS) Classifications of Export and Import items or any other provisions of this policy or any other law for the time being in force. The Director General of Foreign Trade may, however, specify through a Public Notice such terms and conditions according to which any goods, not included in the ITC (HS) Classifications of Export and Import items may be exported without a license. Such terms and conditions may include Minimum Export Price (MEP), registration with specified authorities, quantitative ceilings and compliance with other laws, rules, regulations. Export through Courier Service: Import/Exports through a registered courier service is permitted as per the Notification issued by the Department of Revenue. However, importability/exportability of such items shall be regulated in accordance with the policy.

Rate of Interest
The rate of interest depends on the nature of the Bills, i.e., whether it is a demand bill or usance bill. Like pre-shipment, post-shipment finance is also available at concessional rate of interest. Present Rates of interest are as under: Demand Bills for transit period Not exceeding ( as specified by FEDAI) 10% p.a. Usance Bills (for total period comprising usance period of ex-port bills, transit period as specified by FEDAI and grace period, wherever applicable: a. Upto 90 days 10% p.a. b. Beyond 90 days and upto six 12% p.a.months from the date of shipment. c. Beyond six months from the 20% date of Shipment (Minimum) Normal Transit Period: Foreign Exchange Dealers Association of India (FEDAI) has fixed transit period for export bills drawn on different countries in the world. The concept of this transit period is that an export bill should normally be realised within that period. The transit period so fixed by FEDAI is known as 'Normal Transit Period' and mainly depends on geographical location of a particular country. Direct and Indirect Bill: If the currency of the bill is the same as the currency of the country on which it is drawn, it is termed as direct bill, e.g. an export bill in US $ drawn on a place in U.S.A. However, if the currency of the bill in which it is drawn is different than the currency of the country on which it is drawn, it is termed as indirect bill, e.g. an export bill in US $ drawn on a place in Japan. The normal transit period fixed for indirect bill is on higher side as compared to transit period fixed for direct bills

Procuring/Manufacturing Goods for Export & their Inspection by Government Authorities


Procuring / Manufacturing Goods Procuring the goods should be done with extreme care and caution as to the quality and cost. However, procuring the raw materials etc. and manufacturing the goods for export will need extra efforts on your part. If you are an established exporter, you can have the facility of procuring raw materials under the Duty Exemption Scheme.


Compulsory Quality Control & Preshipment Inspection An important aspect about the goods to be exported is compulsory quality control and pre-shipment inspection. Under the Export(Quality Control and Inspection) Act, 1963, commodities are subject to compulsory pre-shipment inspection. At times, foreign buyers lay down their own standards / specifications which may or may not be in consonance with the Indian standards. They may also insist upon inspection by their own nominated agencies. These issues should be sorted out before confirmation of order Products having ISI Certification mark or Agmark are not required to be inspected by any agency. These products do not fall within the purview of the export inspection agencies network. The Customs Authorities allow export of such goods even if not accompanied by any pre-shipment inspection certificate, provided they are otherwise satisfied that the goods carry ISI Certification or the Agmark.

A crossed cheque/draft for the amount of requisite inspection fees or an Indian Postal Order.
o o o o

Copy of the Commercial Invoice. Copy of letter of credit. Details of packing specifications. Copy of the export order/contract, indicating inter alia the buyer's requirement that goods are strictly according to the prescribed specifications, or as per samples etc.

After satisfying itself that the consignment of exportable goods meets the requirements stipulated in the export contract/order, the inspection agency issues, generally within four days of receipt of intimation for inspection, the necessary certificate of inspection to the exporter in the prescribed proforma in five copies. The certificate is issued in the standardised form which is aligned preshipment export document. (Three copies for exporter, original copy for customs use, the second copy for the use of the foreign buyer and the third copy for the exporter's use, fourth copy for Data Bank, Export Inspection Council, New Delhi and the fifth copy is retained with the agency for their own office record). In-Process Quality Control (IPQC) Certain products like chemicals or engineering goods are subject to this control. The inspection is done at various stages of production. The exporter has to get his unit registered as "Export Worthy" and keep record of processing and production. Inspection by the officers of Export Inspection Agency is done from time to time. The certification of inspection on the end-products is then given without in-depth study at the shipment stage. Under this system, export is allowed on the basis of adequacy of in-process quality control and inspection measures exercised by the manufacturing units themselves. The certificates of inspection in favor of the units approved under the scheme are issued by the Export Inspection Agencies (EIAs) in the normal course. However, these units are kept under surveillance by the EIAs and random spot checks of the consignments are carried out by them. Units approved under this system of in-process quality control may themselves issue the certificate of inspection, but only for

the products for which they have been granted IPQC facilities. However, these units have the option either to get the certificate from the Export Inspection Agencies (EIAs) or issue the same themselves. Consequently, the manufacturer exporters of products approved under the IPQC have been recognised as an agency for pre-shipment inspection for export of engineering products for which they have been approved by the Export Inspection Agencies at Bombay, Calcutta, Cochin, Delhi and Madras.

ISO 9000 The discussion on quality control and preshipment inspection will be incomplete without saying a few words about ISO 9000.The ISO9000 Series of Standards evolved by the International Standards Organisation has been accepted worldwide as the norm assuring high quality of goods. The ISO-9000 is also the hallmark of a good qualityoriented system for suppliers and manufacturers. It identifies the basic principles underlying quality, and specifies the procedures and criteria to be followed to ensure that what leaves the manufacturer / supplier's premises fully meets the customers requirements. The ISO-9000 series of standards are basically quality assurance standards and not product standards.ISO-9000 spells out how a company can establish, document and maintain an effective and economic quality control system which will demonstrate to the customer that the company is committed to quality. The series of Standards aims the following:
o o o o o o

Increased customer confidence in the company Shift from a system of inspection, to one of quality management Removing the need for multiple assessments of suppliers Gaining management commitment Linking quality to cost-effectiveness Giving customers what they need

The implementation of ISO-9000 Standards involves:

o o o o

Management education Writing quality policy Nominating a quality representative Identifying responsibilities

o o o o

Identifying business processes Writing a quality manual Writing procedures Writing work instructions

Labeling, Packaging, Packing and Marking Goods

An important stage after manufacturing of goods or their procurement is their preparation for shipment. This involves labeling, packaging, packing and marking of export consignments. Labeling requirements differ from country to country and the same should be ascertained well in advance from the buyer. The label should indicate quality, quantity, method of use Packaging fulfills a vital role in helping to get your export products to the market in top condition, as well as in presenting your goods to the overseas buyer in an attractive way. While packaging, quality should not be compromised merely to cut down costs, packaging should also be in conformity with the instructions issued by the importer. Packing refers to the external containers used for transportation. The shape of packing cases play a very important role in packing the cargo, and the nature of packing material to be used will depend upon the items exported Before packing and sealing the goods, it should be ensured that all the contents are properly placed in the case and the list of contents of packing notes should be prepared so that the buyer, the Customs authorities and the Insurance authorities can easily check the contents of each and every case. Marking means to mark the address, number of packages etc. on the packets. It is essential for identification purpose and should provide information on exporters' mark, port of destination, place of destination, order number and date, gross, net and tare weight and handling instructions. It should also be ensured that while putting marks, the law of buyer's country is duly compiled with.

Distribution channels
AWL distributed its product through following channel Through road Through railway The product transfer to Mundra ported by road and railway.

Through road
The product direct goes in mundra port in a lorry Bundi mundra port export to other Countries

Through railway
Bundi Jaipur Kandla mundra port export to other countries


At a time when the country is seriously short of vegetable proteins to meet the health needs of burgeoning human and cattle population, there are attempts to extract concessions from the government to promote export of such proteins. The latest is the demand made by the Soyabean Processors Association of India (SOPA) for increasing the benefit under Visesh Krishi and Gram Upaj Yojana (VKGUY that is special agricultural and village industry scheme), under which soyabean extraction exports already enjoy fiscal benefit to the extent of five per cent of the f.o.b. value of exports. In 2007-08 fiscal, on export of Rs 5,000 crore worth soyameal, the industry collected Rs 250 crore as incentive ( five per cent of export value). Port-wise export The export from Kandla between April and December was reported at 23.39 lt (accounting for 58 per cent of total imports). From Mumbai, including JNPT, handled 8.95 lt (22 per cent), Bedi 4.13 lt (8 per cent), Vizag 1.95 lt (5 per cent), Kakinada 79,368 tonnes (2 per cent), Mundra 67,363 tonnes (2 per cent) and Kolkata 49,862 tonnes (1 per cent).

Market exchange:Main Instruments

Spot: - A spot transaction is a straight forward ( or outright ) exchange of one currency for another. The spot rate is the current market price. Spot transactions do not require immediate settlement, or payment on the spot. By convention, the settlement date , or value date, is the second business day after the deal date ( or trade date) on which the transaction is agreed upon by two traders. Forward:- An outright forward transaction, like a spot transaction, is a straightforward single purchase\ sale of one currency for another. The only difference between the two is that the spot is settled, or delivered, on a value date not later than two business days after the deal date, whereas outright forward is settled on any pre-agreed date three or more business days after the deal date. Dealers use the term outright term to make it clear that it is a single purchase or sale on a future date.

Bid Price and Ask Price

In the export market there are always two prices for every currency- one price at which seller of that currency want to sell, and another price is at which buyers of the currency want to buy. A market maker is expected to quote simultaneously for his customer both a price at which he is willing to sell and a price at which he is willing to buy standards amounts if currency for which he is making a market. The Bid Price is the price at which the market maker (dealer) is willing to buy the base currency in exchange for the counters (or terms) currency. The Ask Price is the price at which the market maker is willing to sell the base currency in exchange for the counter currency. A market makers quotes are always presented from the market makers point of view, so the bid price is the amount of terms currency that the market maker will pay for a unit of the base currency. The offer price or ask price is the amount of terms currency the market maker will charge for a unit

of the base currency. The difference between the bid and the ask price is referred to as the spread. A wide spread illiquid trading conditions.

Export Market Participants

There are three types of participants are Customer Banks Brokers Customers: - customers such as multinational corporations, are in the market because they require foreign currency in the course of their cross border trade or investment business. Commercial banks:- The most active participants in the export market. They deal with other financial institutions and corporations who contact them, typically by phone, to ask their rates, and make buy foreign currency from, or sell, to the bank at those rate. This process is known as market making

Broker:- He act as intermediaries between the bank. They are specialist companies with computer link or telephone lines to bank throughout the world so that at any time they know which bank has the highest rate for a currency and which the lowest rate

Internal audit is an appraisal activity performed within an organization. It aims at reviewing the financial aspects and other policies and procedures of the company. Internal audit becomes more important in case of large organization in order to prevent non-compliance of the companys rules and regulations. The job performing internal audit is assigned to the audit staff or to the internal committee. In the industry the internal audit occur every week by the C.A & the weekly audit is occur by the employee of the company with the help of SAP. The routine transaction is checked by the internal audit department.


1. Internal audit assess the effectiveness and adequacy of the control measure implemented in the areas of accounting, treasury and operations of the firm. The audit staff should also perform a costbenefit analysis of the internal control system. 2. Internal audit should verify the documents related to the branches and should check the accuracy of the accounting books and record. They should also see the extent to which the companys assets are accounted for and should review the methods employed to prevent the losses. 3. Internal auditors should ensure that rules and regulations of the organization are being adhered to. The internal auditors should also try to identify the flaws existing in the rules and regulations of the firm. 4. Internal audit also ensure that liabilities have been incurred for legitimate purpose if the business.

5. Internal audit should help in the preparation of report that would provide assistance to the various level of the management and would also help the external auditor.


1. STATUARY AUDIT:- Statutory Audit is an required by law. A

municipality may be required by its own law to have an annual audit of financial records or a company which is governed by any Law, the Law may require the audit to be conducted and the manner in which audit should be conducted and to whom the report of auditors should be presented. like in case of companies the Companies Act requires audit of accounts, its reporting and manner of audit report.
2. OPERATIONAL AUDIT:- A structured review of the systems and

procedures of an organization in order to evaluate whether they are being conducted efficiently and effectively. An operational audit involves establishing performance objectives, agreeing the standards and criteria for assessment, and evaluating actual performance against targeted performance
3. MANGMENT AUDIT:- Management Audit is the systematic

recognition, analysis and assessment of competencies and the actual behavior of both individual executives as well as complete executive teams particularly with regard to the business' strategic requirements. The basis of Management Audit is structured interviews and reference checks conducted by external experts to be documented in expert opinions.


1. If the internal audit staff is inefficient then the whole purpose of internal audit is fail. 2. Inefficiency creeps into the records if they are not received in time by the internal audit staff. 3. Proper internal audit will not be performed if the internal audit staff is assigned other function of the company.


For ensuring the effectiveness of internal audit, the following aspects should be taken care of:

TOTALITY:- Totality implies that the internal audit should also consider all the aspects of the organization for the purpose of review and control EXPERTISE:- The member appoint as internal auditors should have the required qualification, experience and should be through with the principle and practice of internal audit. INDEPENDENCE:- The internal audit should have the freedom to report directly to the top management. OBJECTIVITY:- Beside ensuring the accuracy and reliability of the records, the internal audit system should also be able to safeguard the assets. UNITY:- The system should not be redundant in nature

Chapter 3 Research methodology

Research Methodology
Resaerch methodology is a way to systematically solve the research problem. It is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. Research methodology means a systematic, controlled , empirical , & critical investigation of hypothetical propositions about the presumed relations among phenomena The research consists of the process of formulating & seeking answers to question about the social world .

Characteristics of Research Methodology

1. 2. 3. 4. 5. 6. 7. 8. Verifiable evidence Accuracy Precision Systematization Objectivity Recording Controlling condition Training investigators

Research Design
A research design is simply the framework or plan for a study that is used as a guide in collecting & analyzing the data. It is blueprint that is followed in completing a study.

Features of Research Design

1. It is plan that specifies the sources & types of information

relevant to the research problem. 2. It is a strategy specifying which approach will be used for gathering & analyzing the data. 3. It also include the time & cost budgets since most studies are done under these two constraints.

Types of Research Design

1. Exploratory Design :- The main purpose of such studies is

that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view. The main emphasis in such studies must be on discovery of ideas & insight. It is generally based on secondary data that are readily available. An exploratory study is the nature of a preliminary investigation.
2. Descriptive Research:- It are designed to describe something-

for example the characteristics of users of a given product, the degree to which product use varies with income,age ,sex etc. In this reprt we use exploratory research design because report based on secondary data.

Data Collection
1. Primary Data :- The data may be described as those data that

have been observed & recorded by the researcher for the first time to their knowledge.
2. Secondary Data:- Secondary data are statistics not gathered

for the immediate study at the hand but for some other purpose. In this research the data is collected from,scribd .com, international trade book,adani wilmar

Chapter 4 Conclusion & Finding

Conclusion and Finding

An import is any good or service brought into one country from another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Import goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country. In Awl the crude oil is imported from different country like Singapore in Mundra port (Gujarat) then the company refined the oil & distributed in other states. Sometime the company dispatch the oil in other states according to demand occur.

Export in simple words means selling goods abroad. International market being a very wide market, huge quantity of goods can be sold in the form of exports. Export refers to outflow of goods and services and inflow of foreign exchange.

AWL has lead to the export of 30% of India's Soya bran meal on a yearly basis. Soya meal is the crushed seed after the oil has been extracted. It has a big export market, and is used to feed cattle/chicken. It also accounts to the export of value added products like the edible defatted soy flour, full fatted edible flour, Soya lecithin, Soya granules and Soya chunks.

Internal audit is an appraisal activity performed within an organization. It aims at reviewing the financial aspects and other policies and procedures of the company. Internal audit becomes more important in case of large organization in order to prevent non-compliance of the companys rules and regulations. The job performing internal audit is assigned to the audit staff or to the internal committee.

In the industry the internal audit occur every week by the C.A & the weekly audit is occur by the employee of the company with the

help of SAP. The routine transaction is checked by the internal audit department.