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    PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH

    SUMMER TRAINING REPORT

    ON

    EXPORT DOCUMENTATION AND EXPORT PROCEDURE

    AT

    MITTAL APPLIANCES LIMITED

    SUBMITTED TO: - SUBMITTED BY: -

    PROF.SHARDA HARYANI DIVYA SHARMA

    B.F.T V SEM

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    ACKNOWLEDGEMENT

    I am thankful to Dr.R.K. Sharma (Director), for giving me the opportunity of doing

    summer training in the BBA (Foreign Trade).

    I have great pleasure to express my deep sense of gratitude to Prof. Sharda Haryani

    Faculty P.I.M.R., Indore for his excellent guidance and interest in completion of

    my summer training report.

    I am very much indebted to Mr. Amit Kumar for granting me the opportunity to do

    the summer training under their supervision.

    Place: Indore

    Date: 07th August 2010 Divya Sharma

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    CERTIFICATE OF FACULTY GUIDE

    This is to certify that Ms. Divya Sharma student of MBA (Foreign Trade) IV SEM

    program has completed his summer training 4 weeks (from 20th May 2008 to 20th

    June 2008) and prepared this report on Analysis on EXPORT DOCUMENTS

    AND PROCEDURE under my guidance.

    Date: 07th August 2010 Prof. SHARDA HARYANI

    (Faculty Guide)

    PREFACE

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    Right said that -"One cannot learn swimming simply by reading books about

    "HOW TO SWIM", even it is written by the best swimmer in the world. What is

    required is practical knowledge about how to swim in the water.

    Practical training is therefore provided to BBA (Foreign Trade) students to bridgethe gap between what we study in the classroom, our own knowledge and the

    actual business environment.

    A study has been done on the "EXPORT- IMPORT PROCEDURE AND

    EXPORT - IMPORT DOCUMENTATION at MITTAL APPLIANCES

    LIMITED.

    This project gave me an opportunity to study Export Procedure and various

    documents used in the international trade and an organization as a whole and its

    functions rather than emphasizing on any particular area.

    CONTENTS

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    1. Introduction of the company

    1.1 Mittal Appliances Ltd.

    2. Objective of the project

    3. Organizational structure

    4. Personnel

    5. Export procedure and Documentation

    5.1 Types of documents

    5.2 Problem faced in documentation

    6. SWOT

    7. Suggestions and Implications

    8. Conclusion

    9. References

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    STRIPS &COILS

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    INDIA's Rs 10 bimetallic coin for which the blanks were supplied by the Mittal

    Group.

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    The bimetallic Coin Blanks for India's Rs 10 coins are manufactured by Mittal

    Appliances Limited (Mittal Group).

    COMPANY AT A GLANCE

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    Company Name : MITTAL APPLIANCES LIMITED

    Established In : 1907

    First Export : 2003-2004 in "UGANDA"

    Product Manufactured :

    Coins

    Coins Blanks

    Strips and Coils

    Capacity :

    Packaging Material :

    SDP Jumbo Bags

    Plastic Bag

    Exports of Raw Materials : UK, France, Middle East Countries (such as

    Kuwait, Saudi Arabia)

    Domestic Suppliers :

    Starlite

    Hindustan Zinc

    Birla Copper

    Importer Countries : Germany, Japan, Peru, Domanican

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    Republic, UK, Spain, Thailand, Malaysia

    Registered Office : 402 Meriden Apartment, Vera Desai

    Road, Andheri East, Mumbai 400058

    India

    Corporate Office : 303, Apollo Trade Centre,

    Geeta Bhavan Square, A.B.

    Road Indore, M.P. India

    COMPANY OVERVIEW

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    Mittal Group's flagship company - Mittal Appliances Limited - is India'spioneering and leading private-sector manufacturer of currency coins andcoin blanks. We have been the only domestic supplier of non-ferrous coin

    blanks and coinage material to India Government Mints since 1987.

    We are also the first and only makers of bimetallic coin blanks in India andare supplying the same to the Indian Government Mints for the new Rs 10coins.As the largest manufacturer of non-ferrous coin-blanks in India, thecompany MITTAL APPLIANCES LIMITED has been an integral part ofthe basic monetary system of India by enabling people exchange money; wehave supplied material to Indian Mints for several billion coins, over theyears. We manufacture coins, coin-blanks, and strips & coils for coinageapplication.

    In the past few years, we have also extended our reach by supplying coinagematerial to many other countries spread far-and-wide, including Thailand,Malaysia, Canada, UK, Peru, and Dominican Republic.

    We had pioneered the private-sector foray into the manufacture of non-ferrous coinage material and have been the sole-supplier of the same toIndian Government Mints for many years and continue to be the leading

    player in the country.

    Till date, Mittal Group is also the only Indian manufacturer of the compositebi-metallic coin-blanks, which it supplied recently to the Indian GovernmentMints for the country's Rs. 10 coins.

    Besides, Mittal Group has been the pioneering exporter of coin-blanks andminted coins from India.

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    Coin blanks in various alloys & specs,

    supplied to different countries, by Mittal Group, over the years.

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    India's Union Minister for Finance - Pranab Mukherjee - presents a set of coins on

    Homi Bhabha to IAEA Director General, Mohamed ElBaradei, watched by IndianPrime

    Minister Manmohan Singh and Anil Kakodkar, Chairman of the Atomic Energy

    Commission of India, at the International Conference on Peaceful Uses

    of Atomic Energy-2009 in New Delhi, last year. The Rs. 10 bi-metallic coin here

    is made on the blanks supplied by Mittal Group.

    CAPACITY

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    The $50 million Mittal Group has the capacity to produce over 1 billion coinblanks at its state-of-the-art plant in Indore and with its recent initiatives, itbecame the first Indian company to export minted currency coins, inassociation with the Indian Government Mints.

    In 2009, Mittal Group has successfully completed the maiden order of Rs 10bimetallic coin-blanks of the Government of India. We are nowexecuting the order for Nickel-Brass strips for manufacturing Rs 5 coins forIndia Government Mints.

    FACTORY LOCATION

    The factory is located in Pithampur. Having many processing nearby it

    makes availability of trained and cheap labour. It gets some exemptions also.

    INFRASTRUCTURE

    We have the kind of infrastructure that facilitates and fortifies every activities and

    each facet of our business. Our organization comprises of efficient and experienced

    work force, which collectively contribute for constant enhancement of the

    company.

    Our infrastructural set up comprises of hi-tech machineries , a superb work

    environment and of course a dedicated , specialized and efficient work force

    certain strengths like sufficient supply of raw materials , strong infrastructure ,

    high productivity updated technology all has cohesively contributed towards the

    growth of the organization . We process all the quintessential equipment and

    machinery that help our designers to execute their designs with sophistication and

    subtlety.

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    Horizontal Continuous Casting Lines

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    Schmitz AG 2 Hi Breakdown Mill

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    4 Hi Finishing Rolling Mill

    OUR ASSURANCE

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    Quality assurance is one of the most significant aspects of MITTAL

    APPLIANCES LTD. That renews high quality products and it emphasizes on

    buyers satisfaction. The company has adopted the policy of never compromising

    its high standard and reputation. Hence, it do not pursue market share at lower end

    by offering inferior products at cheaper rate. The company has pursued the strategyof product differentiation by delivering quality products at competitive prices.

    Q UALITY ASSURANCE AT EVERY STAGE

    Compulsory quality checks are instituted from conceptualization till

    the final stage of product manufacturing; it enables us to keep our

    high standards. Well planned procedures ensure the production and

    delivery take place always as scheduled.

    Raw materials are purchased from approved sources and strictly

    checked for quality parameters.

    OUR EXCELLENCE

    Our collection creates a selfexpression that benefits from our meticulous

    construction and creative consideration. We use the most luxurious raw

    materials from all over the world to create classic style to suit everyones

    requirement.

    Before packing of each piece of product passes through stringent tests to

    make way in to your home with elegance and honor which creates thrill and

    positive waves of pleasure.

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    PRICES

    MAL have wholesale price list available to traders, importers, wholesalers.

    It is decided through mutual consent.

    PRODUCTIVITY

    As the company is labour incentive i.e. 30-40% of the total cost is labour

    cost, the productivity plays an important role. The hired labours areproperly trained to have the required skills.

    COMPANYS OBJECTIVE

    MITTAL APPLIANCE LTD has achieved success by stressing on various

    operation objectives such as quality, speed, dependability, cost and

    flexibility. The company provides an error free product through strict

    quality checks at all levels.

    Their efficient management leads to quick decision making and speedy

    movement of materials to information, reducing the cycle time of

    production. The company is committed to its buyers to complete the order

    on time, thereby making its buyers loyal and dependent. It quotes prices by

    keeping very little margin for profit thereby having an edge over its

    customers. The company has the flexibility to provide its buyers products

    according to their requirement their needs and wants.

    Essential objectives of the company are as follows: -

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    Customer satisfaction is the main objective of the company. They are

    trying to achieve 100% customer satisfaction.

    Optimum utilization of resources with minimum wastage.

    Provides goods at regular interval.

    On time delivery of goods and services.

    Trying to be the exclusive suppliers of their products.

    Pays due attention to their customers need.

    High productivity

    Manufacturing as per master formulas and keeping check on alloperations.

    To ensure that their field of operations allows error free products.

    Zero defects, zero accidents, zero pollution, zero customer complaint

    and zero losses.

    Company often takes feedbacks from customers.

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    Cuprous-Nickel coin blanks manufactured by Mittal Group

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    Continuing its principles of helping the society & conserving the culture, Mittal

    Group has, in memory of its founder - late Shri

    BABULAL JI MITTAL, sponsored the Training Program in Numismatic Research

    2010, organised by the Academy of Indian Numismatics & Sigillography, Indore.

    The training program will be held at the academy in Indore from MAY 16 to MAY

    29, 2010, which has been scheduled to coincide with late Shri

    BABULAL JI MITTAL's birthday on May 29.

    After undertaking the training, participants will be able to identify, decipher,

    classify,

    & highlight the historical significance of coins & seals in Iconographical,

    Epigraphical, & Architectural frameworks. Besides the Academy's Director, the

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    eminent expert numismatist - Dr. S.K. Bhatt, lectures would be given by other

    leading experts in the field from various parts pf the country.

    The training program would also give the participants, an opportunity to physically

    handle coins & seals ranging from the ancient times to the modern age, and wouldalso be taken on an excursion visit to an ancient

    site.

    Due to the extensive & detailed nature of the program, only 10 seats have been

    made available for the participants, by the Academy; most modest fees of Rs.

    1,500 (aaprox. US$ 30) per person would be charged for the entire 2-Week

    program.

    Dr. S. K. Bhatt, Director, Academy of Indian Numismatics & Sigillography,

    showcasing the visual history of Indore city dating back to more than 4,000 years

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    through coins, murals, and other forms, to Mr. Dinesh Mittal, Chairman &

    Managing Director, Mittal Group, and others.

    MISSION OF THE COMPANY

    We aim to provide highest quality coins, coin blanks, and other securitysolutions, at most effective prices, to the Central Banks and Mints across theworld.

    The mission of the company is to focus on customer need in order toestablish long lasting relationship that can outlive market swings.

    This has helped the company in maintaining long list satisfied customers allover the world.

    CORPORATE PHILOSOPHY

    The values that govern Mittal Group should help in achievement of the goals and

    desires of all who are a part of its success; owners, employees, suppliers, customeand community members. All our actions will prove our dedication to integrity,honesty and fairness.

    We will strive to establish long-lasting and mutually beneficial relationships withboth suppliers and customers. We will aggressively grow our business by accessiglobal markets. We will work closely with our customers to exceed their demand

    product quality, response time and price competitiveness.

    The structure of our company will encourage creativity, innovation and the

    acceptance of responsibility in its employees. To ensure sustainable growth for oubusiness, we will continuously take up the challenge offered by new ideas andtechnology. We will be totally committed to achieving exceptional standards of

    performance and productivity.

    VISSION AND VALUES

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    VISSION:-

    To deliver Prosperity To achieve and sustain world class status in every area.

    Values:-

    Customer Orientation

    Providing products and services of the highest standards to the internalmembers and external customers.

    Commitment

    Be dedicated to our responsibilities with honesty and confidence.

    Team Work

    Cooperation and trust with appropriate participation of all concerned toachieve the desired objectives.

    Quality First

    Practice process and orientation and excellence in all our actions to createnew benchmarks.

    PERSONNEL

    This part basically deals with the human resources, i.e. people that areemployed by an organization. The effort of organization is the developmentof human resources of the organization. HRD of MAL deals withadvancement of knowledge, skills and competencies and improved behaviorof people within the organization for both their personal and professionaluse, enhancement of which will benefit operations of the organization. This

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    will help organization in increasing its efficiency, profitability andeffectiveness.

    HUMAN RESOURCE DEPARTMENT OF THE

    ORGANIZATION INVOLVES THE FOLLOWING: -

    RECRUITMENT

    Recruitment is attracting qualified people for existing or anticipatedopening. The recruitment process of MAL includes giving advertisement innewspapers. If qualified people are not available with the means ofadvertisement then in order to fill the vacant positions they contact agents

    and employees who are working with their organization and have the desiredqualification as needed by the organization.

    SELECTION

    Once and apt recruitment strategy has been identified, it is anotherimperative thing to identify selection criteria. In MAL priority is given toindividuals who hold appropriate qualification, which suits the job profile.They first of all sort of CVs based on the age group. After sorting the CVs

    individuals are called for an interview. After the selection of candidate he isgiven job training.

    RECRUTIMENT AND SELECTION

    The human resource of the organization will be reviewed andrestructuring will be made based on skills and need of theorganization.

    No further recruitment unless there is an emergency.

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    If there is urgency in any areas, internal source selection will beapplicable.

    TRAINING AND DEVELOPMENT

    Training and development helps in learning new skills to improve performance atthe present job. Training involves up graduation of skills, knowledge, attitude andsocial behavior.

    Training given to worker is assessed by the supervisor. Motivational and off jobtraining- need of this training is assessed by the HR department, when they receivea constant feedback from the top to bottom level management.

    In MAL, special focus is given to such training programs in order to catch them upwith the innovative technology and latest developments in management. This helpsentire workforce to put in enhanced energy into the workplace.

    WELFARE ACTIVITIES

    Welfare activities are for the benefit of the employees of the organization. Thesefacilities are provided to attract qualified employees towards the organization andto retain the existing employees for a longer period of time.

    As a part of the commitment to the society to the society, MG has planted morethan 1,000 trees in and around its plant in Pithampur and is going to continuefurther.

    SOME WELFARE ACTIVITIES ARE AS FOLLOWS: -

    Charity

    Medicine distribution to poor people

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    Seed plantation in Kasturba Gram

    Cultural programs

    Birthday celebration of employees

    Arrange cricket matches

    PERSONAL POLICIES

    Training to be given to employees in order to upgrade their skills.

    Welfare facilities to be given to employees for their benefits.

    Medical facility to be given to employees.

    Family welfare activities to employees.

    OBJECTIVE OF THE STUDY

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    1. To study the export procedure.

    2. To study the export documentation of Mittal Appliances Ltd,

    Indore.

    EXPORT PROCEDURE

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    Having sent out letters and leaflets, it is necessary to be prepared to answer in aproper manner the inquiry which will be received as a result of these 1st efforts.No price lists would have been sent in the 1st instance, and interested partiesabroad will ask for these and also for payment terms, and possibly for agency

    conditions. These will also be requests for samples.

    There are seventeen steps of export procedures: -

    Step 1: Receipt of an Enquiry

    It is impossible to attend personally to all of these enquiries, as it would not beeconomically to do so; but there may be several enquiries from one country andall of them asking for sole agency right. The best way to do these is to ask theenquires themselves to supply information about their business.

    Step 2: Check on restrictions on foreign exchange and import in importers

    country

    When an order is received, the first decision as to whether it will be filled isbased upon the approval of credit. The approval of the order for shipmentshould also be contingent upon the ability of customer to secure foreignexchange in those countries where there are exchange restrictions.

    Step 3: Scrutinize the order

    The exporter should carefully scrutinize and check the content of an exportorder before its confirmation. It should broadly be in accordance with theelement of contract which might have be conveyed to the overseas buyer, andreceived along with the duplicate copy duly signed, of the export contract, incase the contract was sent by the exporter.

    Step 4: Acknowledgement of the order

    It may seem pointless to acknowledge order before the manufacturer or exporteris able to state definitely when or, in fact, whether he will be able to fill it.

    Step 5: Arranging the goods export production/procurement

    As soon as the export order has been confirmed or finalized, preparations aremade for the production of the goods to the exported. The manufacturer-

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    exporter has to raise an internal indent on the production department/division,which may also be sent either to the works manager or the factory manager.

    Step 6: Export license

    If the item be exported requires an export license, the same should be procuredby the exporter from the licensing authority, i.e., Chief Controller of Importsand Exports.

    Step 7: Central excise clearance

    The excisable goods can be exported outside India either under claim forrebates of excise duty or under bond. The difference between these two

    procedures is that in the case of former the duty is first paid and its refund

    claimed after exportation, and in the later case the goods are allowed to beexported without payment of duty provided a bond is executed in form B-I(General security) or form B-I (General surety ).

    Step 8: Apply to export inspection council for inspection

    Exporter should apply to EIC for pre-shipment inspection under the Export(Quality Control and Inspection) Act, 1963; the EIC will depute an inspector forcarrying out quality control and inspection of exportable products.

    Step 9: Apply for marine insurance policy, if it is a C.I.F. Quotation

    As soon as the goods are ready for export, the exporters has to apply toinsurance company for an insurance cover/ policy as the case may be, where aninsurance policy is insisted upon by the importer, an insurance cover will notdo. The policy would be for C.I.F. value plus 10% to cover expenses.

    Step 10: Issue instructions to the clearing and forwarding agent

    A detailed note is prepared for the clearing and forwarding agent, givinginstructions regarding the shipment of the consignment (e.g., the shipment may

    be made under claim for drawback). Along with this note, a master documentand form of bank guarantee should be forwarded to the forward agent.

    Step 11:Clearing and forwarding agents role for shipping and customs atthe port

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    On receipt of the above documents, the C&F agent takes delivery ofconsignment from the railway /road authorities and arranges for its storage inwarehouse.

    The C&F agent then prepares the shipping bill and presents them along with theabove documents to the export department of the customs house. The customsappraise examines these documents and appraises the value of the goods ifeverything is in order, he endorses the duplicate copy of shipping bill and indicatesthe extent of physical examination to be carried out at the dock.

    Step 12: Documents returned by the forwarding agent

    The master document is returned by C&F agent to the exporter at this stage alongwith:

    (a) Shipping bill(b)Original L/C(Contract ) order(c) AR-4/AR-4A Form in duplicate(d) Full set of clean-on-board bill of leading together with the required number

    of non-negotiable copies.

    Step 13: Shipment advice to importer

    Intimation is send to the importer, indicating the date of dispatch of goods and

    the name of the ship by which they have been sent. The following documentsare also enclosed:(a) A non-negotiable copy of the B/L(b) Master document copy

    Step 14: Presentation of document by the exporter to bank

    The following documents are now presented by the exporter for negotiation/collection:

    (a) Master document(b)GR-I form (duplicate and triplicate)(c) Full set of clean-on-board bill of lading (all negotiable copies plus one non-

    negotiable copy)(d)Original L/C(e) Bank certificate in prescribed form (in duplicate)(f) Marine insurance policy (in duplicate)

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    (g)Export contract/ order(h)Bill of exchange

    Step 15: Processing of documents by the bank

    Bank examines the documents with reference to the terms and conditions of theoriginal order and also of the letter of credit. The exporters bank screens theabove documents and sends a set of the following documents to the importers

    bank:(a) Master document (original copy)(b)Marine insurance policy(c) Negotiable bill of lading (original copy)(d)Bill of exchange (original copy)

    The banker sends GR-I form (duplicate copy) to the exchange controldepartment of the Reserve Bank of India. The triplicate copy of the form is sentto the Reserve Bank of India on receipt of payment from abroad.

    The banker returns the following documents to the exporter:(i) Original copy of bank certificate.(ii) Attested copies of the master documents

    The exporter receives payment against the above documents.

    The banker also sends to the concerned Joint Chief Controller of imports andexports a duplicate copy of the bank certificate.

    Step 16: Central excise rebate

    A claim is filed by the exporter with the concerned maritime collector CentralExcise for rebate on the central excise duty or for getting credit in his bondaccount, as the case may be.

    Step 17: Advance license/ Special license

    The exporter should file an application to the licensing authority for an advancelicense/ special license in accordance with the export-import policy of thecountry at that point of time.

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    EXPORT DOCUMENTATION

    Overview:-

    Export documentation is a tedious but necessary process that all exporters mustpay close attention to, as documentation requirements vary considerably bycountry, commodity, and situation. Although exporters must fill out and submitmany different forms for each international shipment, most require similar dataelements and can (and should!) be duplicated precisely from one document tothe next. Fortunately, there are software products that capture the primarydetails of the shipment and insert them into the necessary documents without

    flaw. This Fast Fact will describe many of the documents your business willneed in order to export successfully.

    EXPORT DOCUMENTATION: - THE FORMS AND PROCESS

    Shipping documents are the key to international trade, and have been used forthousands of years. Documents outline the sale, shipment, and responsibilitiesof each party so that the full transaction is understood and complete withoutdelay or additional costs. Documents also ensure compliance with applicableregulations.

    Using an experienced Freight Forwarder will help you to avoid problems andsecure your relationship with your customers. Consider providing your Forwarderwith a suitable letter of authorization to act as your agent on overseasdocumentation matters. Although not a required or standardized document,

    preparing a thorough and well organized Shippers Letter of Instructions (SLI) isa good practice for your company to establish. You can give your Forwarder

    limited authorization and initial instructions with an SLI as soon as the shipmentdetails emerge, which allows time to prepare documents, make arrangements, andask questions. Although a Freight Forwarder is not absolutely required for asuccessful export shipment, a licensed Customs House Broker is required to cleargoods imported into any country, including the United States.Below are some factors to consider when determining which documents are neededfor a particular shipment.

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    Country of origin and destination, as well as transshipment

    Mode of transportation truck, rail, ocean, air, pipeline

    Commodity agriculture, livestock, safety/security, end-use, intangible-software, service

    Size value, volume, weight, dimensionsParties to the transaction shipper, consignee, agents, brokers, banks

    Based on these factors, many of the following documents (described in more detailon pages 2-5) may be required for an international shipment. These documents can

    be prepared by the exporter and then processed or forwarded by a FreightForwarder.Invoices Commercial, Pro-forma, Consular

    Packing Lists Dock, or Warehouse, Receipt

    Bills of Lading (B/L) Ocean B/L, or Motor/Truck or Air Bill, or Way Bill

    Electronic Export Information (formerly the Shippers Export Declaration or SED)is not an actual document but still a very important part of the export process

    Certificates of Origin (C/O), sometimes country-specific NAFTA C/O, IsraelC/O

    Declaration of Dangerous Goods (DGD) Hazmat, placards

    Certificates Insurance, Free Sale, Inspection, Phytosanitary, Authentication(Apostille)

    Miscellaneous: Letters of Credit, ATA Carnet, Duty Drawback

    ESSENTIAL DOCUMENTS

    The invoice and bill of lading are the two documents required for every exportshipment. As such, you should ensure that all other documents associated with theshipment match the information on these documents.

    I NVOICESPro-forma Invoice:A pro-forma invoice is an invoice sent to the buyer before theshipment, giving the buyer a chance to review the sale terms (quantity of goods,value, specifications) and get an import license, if required in their country. It alsoallows the buyer to work with their bank to arrange any financial process for

    payment. For example, to open a Documentary Credit (Letter of Credit), the

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    buyers bank will use the pro-forma invoice as a source of information. Theexporter/seller should not send their customer a pro-forma invoice unless they fullyunderstand what they are offering to the buyer. If no changes are required on the

    pro-forma invoice after the buyer reviews it, the exporter can simply change its

    date and title and turn it into a commercial invoice.

    Commercial Invoice:A commercial invoice is prepared by the seller/exporter andaddressed to the buyer/importer, and is one of the first documents prepared when atransaction has been agreed upon. The invoice identifies the buyer and seller,describes the goods sold and all terms of sale, including Inco Terms, paymentterms, relevant bank information, shipping details, etc. An invoice may be itemizedto show cost of goods, freight, and insurance, or other special handling. Theinvoice may be numbered and have multiple purchase order numbers. U.S.Customs does not actually need a copy of the invoice, unless requested, but the

    information included is used to prepare other documents.

    Consular invoice:A consular invoice is the commercial invoice stamped ornotarized by the consulate or embassy of your customers country, if required. Forexample, if you are exporting to Egypt and your buyer requires a consular invoice,the Egyptian embassy in Washington, D.C. will do this for a small fee. Usually afreight forwarder will offer this service, but an exporter can send the originalinvoice to the consulate, have it notarized/legalized as required, pay the fee, andhave the documents returned or forwarded on. It is important to understand that

    consular invoices are required in the buyers country, so you need to add thetime/costs associated with obtaining one to the price of the goods you are shipping.The invoice should include a [none]-diversion statement, as provided below. Asthe U.S. Principal Party of Interest (or exporter of record), this statements attests toand informs your customers that you are using due diligence to control theshipment and abide by regulations, particularly shipments to embargoed/sanctionedcountries.

    MATERIAL HANDLINGPacking List: A packing list is prepared by the shipper and is a detailed breakdownof the items within a shipment. It may also include any special marks foridentification. For example, the customer may want ABC XX in blue letters onthe side of the packaging. For insurance claims and tracking purposes, it helps todescribe what is in each package. The packing list should also reference thecustomers purchase order number and destination. Often, a packing list is taped to

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    palletized cargo or on the main carton/box of a shipment so that the importerscustoms agency or any transportation handlers can have easy access to it to knowwhat the goods are and their destination. The quantity and items listed on thecommercial invoice must match with the packing list, but not necessarily match the

    pro-forma invoice. Some companies prepare a packing list that is identical to thecommercial invoice, minus the prices and other monetary details.

    Dock (or Warehouse) Receipt:The dock or warehouse receipt is issued by awarehouse supervisor or port officer and certifies that the goods have beenreceived by the shipping company. This document is used to transferaccountability when goods are moved by the domestic carrier to the port ofembarkation and left with the international carrier. At this time, the carriers Bill ofLading is also signed by both parties and copies are issued accordingly.

    Bills of Lading (B/L)A Bill of Lading is issued by the carrier to the shipper for receipt of the goods, andis a contract between the owner of the goods and the carrier to deliver the goods.Sometimes the B/L acts as title to the goods so an Original B/L is issued- usuallya set of three. Whoever presents one of those Original, Negotiable B/L can take

    possession of the goods. A B/L can be either negotiable or non-negotiable.

    Non-negotiable (or straight) B/L: Indicates that the shipper will deliver thegoods to the buyer and that title of the goods has not been transferred to the shipper

    (i.e., the buyer or seller owns the goods while they are being shipped). This typeof B/L is often used when payment for the goods has already been made inadvance.

    Negotiable (or shippers order) B/L:Serves as a title document to the goods,issued to the order of a party, usually the shipper, whose endorsement is requiredto effect its negotiation. It can also be issued to the order of the buyers bank as

    part of a documentary credit/letter of credit stipulation so that when the buyersbank receives the Original B/L, they can endorse it over to the buyer at the time ofpayment for the buyer to clear the goods at customs. Sometimes the negotiable B/L

    may be consigned To Order without reference to a company. A negotiable B/Lcan be bought or traded while the goods are in transit, whereas a Straight B/L isnon-negotiable and is consigned to the buyer.The B/L is frequently electronically manifested by the shipping line companyusing the data sent by the shipper or its agent. Bills of Lading also include a notify

    party (usually the buyer or their agent) so that when the vessel arrives at the portof destination, the carrier can notify the party that the goods are available, are in

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    need of customs clearing, or are ready for pick up. Usually the importer can pickup the goods after customs clearance and duties are paid. Freight Collect meansthe consignee pays the freight charges as well. Freight Prepaid means the shipper

    pays the freight charges, but not customs clearance unless the terms are delivered

    duty paid. If payment is due to the exporter before the importer receives thegoods, advance charges can be added to the bill so the importer pays for thegoods along with the other charges. Two checks should be received so the carriercan forward one check to the exporter for the cost of goods.

    Inland Bill of Lading:Issued by the trucking company and/or the railroad line fortaking the goods from the exporters facility to the port of embarkation orconsolidation facility.

    Ocean Bill of Lading (OBL):The Ocean B/L is an invoice, and may be issued as aclean bill of lading, meaning the carrier certifies that the goods have beenreceived without visible damage. An On-Board B/L may be issued when thegoods are received into the carriers port facility, basically confirming the cargowill be sailing.

    Air Way Bill (AWB):The Air Way Bill is a form of bill of lading used for the airtransport of goods. AWBs are non-negotiable, mainly because of the short amountof time that the goods are in transit. The original AWB is rarely needed by theimporter at the other end of the shipment to prove ownership of goods. A house

    airway bill is issued by a freight forwarder on behalf of the actual carrier, which isthe case when a freight forwarder has a contract rate with an air cargo service toexpedite the documentation.

    CERTIFICATESCertificate of Origin (C/O):A document prepared by the original manufacturerand certified by a quasi-official authority - such as a Chamber of Commerce -stating the items country of origin. Most countries that require a C/O will accept ageneric C/O as long as all of the required data elements are given. However, somecountries, like Israel, have a special green C/O form that must be used. To takeadvantage of duty free provisions in a U.S. Free Trade Agreement, be sure to usethe particular C/O that addresses the rules of origin criteria for each country.

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    Certificate of Insurance:This document indicates the type and amount ofinsurance in force on a particular shipment for loss or damage while in transit. It issometimes referred to as marine insurance, but may cover the entire voyage.

    Certificate of Inspection:Some customers will require a pre-shipmentinspection to satisfy their own requirements or local regulations, according to an

    industry, government, or carrier specification. Neutral organizations specialize inthese types of certifications, whereby an inspector checks the goods in question

    prior to shipment. Sometimes an inspector can look at a sample, but other timesinspection must occur when the goods are packaged to issue a certificate.

    Certificate of Authentication (Apostille):An original document that has beennotarized may require authentication by the Secretary of the Commonwealth. AnApostille certificate will be issued according to the country (language) of

    destination, confirming the status of the notary who has witnessed the originaldocument.

    SPECIAL DOCUMENTSATA Carnet:A Carnet, sometimes referred to as a merchandise passport, is usedfor shipping goods to countries on a temporary, duty-free basis only. For a fee, this

    passport allows a company to ship needed materials to foreign trade shows orconduct repairs overseas. Within a year, the materials must return to the U.S. in

    order to avoid a hefty fine.

    Documentary Letters of Credit (L/C):A letter of credit is a document issued by abank committing to pay the seller/exporter a stated amount of money on behalf ofthe buyer/importer as long as the specific terms and conditions are met. Of allshipping documents, errors or making changes to the L/C are the most costly andtime consuming because of the risk of payment in error.

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    PROBLEM RELATED TO THE PRE SHIPMENT STAGE OF

    THE DOCUMENTATIO NA. TECHNICAL PROBLEMS

    Due to the failure of the computer systems, there is a possibility of delay in eithermaking or forwarding of export documents and this can create a time lag between

    the actual and estimated time to perform a particular task.

    B. PROBLEMS REGARDING CONTARNERIZATION

    Sometimes the containers required cleaning before stuffing and this task may take

    time which causes a delay in the stuffing of the container, this may further create

    problems at the latter stage.

    C. DELAY DUE TO STOCKING

    If there is low level of stock in the warehouse or the stock available is not in

    useable condition or in case of sudden hike in demand of goods, the company may

    require some time in order to maintain the level of stock accordingly and this may

    cause a delay in the operations in the manufacturing which in turn affects the

    stuffing process of the container.

    D. DELAY DUE TO OVERSTOCKING

    Sometimes it is seen that the inventory level of the company is much higher than

    the point of minimum requirements and this leads to the pilling up of goods in the

    store, because the good have been in excess quantity there are randomly stored

    here and their which require a lot of time to load systematically into the container

    and hence there can be delay in the shipment of good which result into delay in

    submission of export documents.

    E. DELAY DUE TO DISRUPTED PLANS

    At times there are situations when the containers are ready for stuffing at

    the plant but there are delays in production due to lack of material, information, or

    some mechanical failures at the plant situation also indirectly affect the

    documentation process.

    F. NON-AVAILABILITY OF CONTAINERS AND VE

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    Every business has its peak season in its business cycle. Especially at the end of

    the financial year (April-March) every company wants to take full advantage of

    this period in order to attain their predetermined targets, performance standards

    and so, there is heavy requirement of mode of transport to fulfill the set targets. No

    availability of containers, vessels may create some problems in the documentationindirectly.

    G.MISTAKES

    Differences in the numerical values, omission of certain numbers, making wrong

    entry in these documents, printing and typing mistakes in documents, error due to

    repetition of numbers. These types of mistakes in drafting of documents require a

    lot of time to make corrections; this is also one of the reasons for delay in

    documentation.

    F. DELAY DUE TO DISRUPTED PRODUCTION PLANS

    At times there are situations when the containers are ready for stuffing at the plan

    but there are delays in the production due to lack of material, information or some

    mechanical failures at the plant. These situations also indirectly affect the

    documentation process.

    PROBLEMS RELATED TO THE POST-SHIPMENT STAGE OF

    DOCUMENTATION

    A. DELAY IN RECEIPT OF CONTAINERS FROM PLANT

    At times, due to some unforeseen circumstances the containers stuffed from the

    plant do not reach the branch office in time because of this, there is delay in the

    receipt of the containers at the port and the vessel earlier planned is not able to

    ship the container. Then the branch office has to arrange another vessel which is

    wastage of time as well as money and unnecessary delay in the shipment of goods.

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    Although the pre-shipment have been already gone through by the Excise

    Inspector (at the factory) and endorsed thereafter, still the customs authorities at

    Pithampur also verified checks and then endorse all the post shipment documents

    (which have basically been made with the help of pre-shipment documents) this

    requires a lot of time and money (because the company has to bear the shiftingcharges from one vessel to another).

    EDI CLEARENCE CONSUMES A LOT OF TIME

    Electronic data input (EDI) consumes lot of time because the annexure is to be

    submitted to the Customs Authorities for the scrutiny of the documents through

    computer. Only after the endorsement of the Customs Officer on these documents,

    can the goods be sent for shipment

    HOW MITTAL APPLIANCES LIMITED WORKS?

    MITTAL APPLIANCES LIMITED WORKS IN THE

    FOLLOWING WAYS: -

    RECEVING THE ORDER: - For an exporting company to do business it is very

    important to first of all receive an order from the buyer. In the same way MAL

    also receives the order from the importer for the goods. The way by which it

    receives order from the buyer (importer) is that the buyer talks to the owner of the

    company before giving him the order.

    WORK ON ORDER: - Once the order is received MAL starts work on the order.

    Firstly it decides that by what date the order should be ready and by which date

    the order should be shipped from the port of destination to the importer. A layout

    or as we say a rough diagram or schedule is made and then the further plan is

    made, how to process the order further.

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    MERCHADISING: - In merchandising, MAL collects all the material required

    for processing the order from its suppliers. Some of the suppliers are :-

    Starlite

    Hindustan Zinc

    Birla Copper

    PRODUCTION DUTIES: - After the goods have been made there quality is

    being checked and they are packed for exports.

    DOCUMENTATION: - If confirmation that some fact or statement is true so

    that the importer comes to know that the goods of the quality desired by him are

    being packed. It contains program listing or technical manual describing the

    operation and use of program. Documents made by

    Packing list

    Invoices

    Bill of lading

    Quality certification

    Certificate of origin

    Bill of exchange

    The rest of the documents are produced by the C & F agent who undertakes thedelivery of goods to the final customer.

    PROVIDE SATISFACTION TO THE CUSTOMER:- The primary aim of

    MAL is to provide satisfaction to the importer.

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    TERMS OF DELIVERY USED IN MITTAL APPLIANCES

    LIMITED

    C. I. F (COST + INSURANCE + FREIGHT)

    C.I.F means that the seller delivers when the goods pass the ship's rail in the port

    of shipment. The seller must pay the costs and freight necessary to bring the goods

    to the named port of destination .The CIF term requires the seller to clear the goods

    for export. This term can be used only for sea and inland waterway transport. If theparties do not intend to deliver the goods across the ship's rail, the CIP term should

    be used.

    F. O. B (COST AND FREIGHT)

    F.O.B means that the seller delivers when the goods pass the ship's rail in the port

    of shipment. The seller must pay the costs and freight necessary to bring the goods

    to the named port of destination BUT the risk of loss of or damage to the goods, as

    well as any additional costs due to events occurring after the time of delivery, aretransferred from the seller to the buyer. The CFR term requires the seller to clear

    the goods for export. This term can be used only for sea and inland waterway

    transport. If the parties do not intend to deliver the goods across the ship's rail, the

    CPT term should be used.

    D. D. U (DELIVERED DUTY UNPAID)

    D.D.U means that the seller delivers the goods to the buyer, not cleared for import,

    and not unloaded from any arriving means of transport at the named place of

    destination. The seller has to bear the costs and risks involved in bringing the

    goods thereto, other than, where applicable, any "duty" (which term includes the

    responsibility for and the risks of the carrying out of customs formalities, and the

    payment of formalities, customs duties, taxes and other charges) for import in the

    country of destination. This term may be used irrespective of the mode of transport

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    but when delivery is to take place in the port of destination on board the vessel or

    on the quay (wharf), the DES or DEQ terms should be used.

    D. D. P (DELEVERED DUTY PAID)

    D.D.P means that the seller delivers the goods to the buyer, cleared for import, and

    not unloaded from any arriving means of transport at the named place of

    destination. The seller has to bear all the costs and risks involved in bringing the

    goods thereto including, where applicable, any "duty" (which term includes the

    responsibility for and the risk of the carrying out of customs formalities and the

    payment of formalities, customs duties, taxes and other charges) for import in the

    country of destination. If the parties wish the buyer to bear all risks and costs of the

    import, the DDU term should be used. This term may be used irrespective of the

    mode of transport but when delivery is to take place in the port of destination on

    board the vessel or on the quay (wharf), the DES or DEQ terms should be used.

    HOW WILL THE IMPORTER PAY THE EXPORTER?

    The importer will pay the buyer with the use of payment terms used in

    international trade.

    Types of payment terms:-

    Advance payment

    Open account

    Consignment basis

    Letter of credit

    Document against payment

    Document against acceptance

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    ADVANCE PAYMENT

    Most of the foreign trade is conducted on an Open Account basis - as the mostsimple, straightforward and flexible method available. However you must ensurethat your customer is highly reputable if business is to be conducted on this basiswith, for example your invoice being sent direct to them along with documents andrequesting payment within the stipulated term. If he pays by cheque all costsassociated with clearing the payment are borne by the exporter. If your bank has anoperating subsidiary in Italy it may simplify payment by asking them to open aforeign currency account in Italy.

    Payments for open account can be made in three main ways:

    Electronic funds transfer (i.e. SWIFT/IMT)

    Bankers draftBuyer's own cheque.

    OPEN ACCOUNT

    Open account is exactly the opposite of advance payment. In open account theexporter sends the shipment of goods without receiving payment from theimporter. The importer on the other hand pays after he receives goods. In this theimporter has an advantage over the exporter as he pays after he gets the goods. Theexporter has to send these goods without receiving payment which might at times

    prove to be risky.

    In this the exporter is entirely on the mercy of the importer as the importer mightnot pay after he receives the goods. Thus, exporter might have to suffer hugelosses.

    Open account is found when it is a buyers market. This means that the number ofsellers is more and the number of buyers is less. It is most risky payment term forexporter.

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    CONSIGNMENT BASIS

    In consignment basis the exporter hires an agent of the importers country. He sendsthe consignment to the agent. Then the agent finds the buyers for the product andthen sells the product to them. The agent pays the exporter for the consignment ashe makes the sales.

    If the agent is unable to sell the whole consignment then he can just return theremaining goods to the exporter without incurring any liability on his side. Theexporter is not sure in this whether his whole consignment will be sold in themarket or not. He can just hope that the agent he has appointed will be able to sell

    the whole consignment.

    LETTER OF CREDIT

    Letter of credit refers to the written undertaking given by the importers bank, atthe request and instruction of importer, to the exporter that the payment shall bemade to him against stipulated document provided that the same appear on theirface to be in accordance with the terms and conditions of the credit, the applicable

    provisions of UCP 600 and international standard banking practice.

    CONTENTS OF LETTER OF CREDIT

    Terms and conditions of exporter

    Types of letter of credit irrevocable or not

    Date of shipment

    Description of goods

    Terms of shipment like FOB CIF

    Price

    Expiry of letter of credit

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    DOCUMENTS AGAINST PAYMENT

    The document against payment method is a give and take method of payment term.

    In this the bank gives the documents to the importer when he pays for the importedgoods.

    DOCUMENT AGAINST ACCEPTANCE

    In the documents against acceptance method the importer just gives his acceptanceand receives the documents from the bank. It is decided between the importer andthe exporter that how much time after the payment has to be made.

    This is more risky then documents against payments as in this method if theimporter does not pay the exporter then the exporter loses the money as well as the

    goods.

    PROBLEMS FACED BY EXPORT DEPARTMENT

    Export procedure and documentation even after liberalization is

    very complex, excise clearance and foreign exchange are lengthy

    cumbersome.

    The number of documents required for both small and bigconsignment is the same and thus there is a lot of file work and

    record keeping.

    Although much of the information asked for the document is

    common, their formats are same but size and layout differ. But all

    are prepared individually and separately.

    The procedure is more time consuming and possibility of error

    making too is there.

    Lengthy process not only creates problems and delay in shipment

    but also in realization of export sales proceeds.

    Employees of other department have no answer of export

    department and absences of employees of export department can

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    create havoc.

    SWOT ANALYSIS

    STRENGTHS:

    Highly quality products offered at competitive prices.

    Good communication and understanding with customers.

    Separate employees to deal with domestic and international market.

    It has qualified and experienced managers, technicians working for it.

    Highly skilled and trained labour force.

    The company has strong financial backup.

    The company has also maintained good reputation in local market also.

    Strong research and development support.

    Organization has fully computerizes set up.

    All employees work in team and do not work in an individual. So there is a

    good team sprit between employees.

    Good relation with suppliers. Logistics companies and other supply chain

    members.

    WEAKNESS:

    Major dependence on some particular countries.

    Some instruments are not available in the production time.

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    Sometimes the company faces delay in shipment due to external

    environment.

    OPPORTUNITIES:

    As MITTAL has branch of its situated in India but it would like to establish

    office in foreign country where its demand is concentrated, so as to serve its

    client the best.

    THREATS:

    Price fluctuation is major problem in front of them currency is

    overwhelming thats why it will discourage exports.

    SUGGESTIONS

    In order to overcome the problems in the process of documentation, here are some

    precautionary measures that are to be taken care of. Most of these precautions if

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    considerable seriously will definitely solve these problems to a great extent.

    More attention should be there towards export order.

    All managers must be aware of documentation.

    All possible measures must be taken so as to complete the order in time.

    Authorized person must be kept to solve the documentation problem.

    Promotional activities should be enhanced.

    The company should continuously up-grade technology and should on the

    new events in the world market.

    The shipping mark that is put on the cartons must be similar to those put onthe documents. Any slight difference in these can hold the goods at the port

    itself causing unnecessary delay in the shipment of goods.

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    CONCLUSION

    The above study makes it clear that Mittal has a well established market for its

    product. The company is making a rapid progress to various spheres of its business

    activities. Besides, the company has a favorable attitude towards safety

    environment in quality consideration.

    The international trade is highly competitive and challenging the company needs to

    be updated if it wants to stand in international market.

    To conclude we can say future of Mittal is very bright because company has a

    good corporate image and high credit rating and also rising in the popularities of

    the companys product.

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    IMPLICATION OF THE STUDY

    For the company

    It will help the company to know their strength and weaknesses. It will also

    provide information regarding future opportunities and threats.

    For future students of Foreign Trade

    It will help students to prepare their project reports. It will also provide

    information of retail market.

    It will give overall knowledge about company.

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    REFERANCE

    1. C. Jeevanandam (2009). Foreign Exchange and Risk Management,

    Sultanchand and Sons Publication.

    2. B. S. Rathore and J. S. Rathore (2007). Export marketing, Himalaya

    Publication.

    3. P. K. Khurana (2007), Export Management, Galbotia publication

    4. www.mittalgroup.com (Company Website)

    http://www.mittalgroup.com/http://www.mittalgroup.com/
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