Ambalika Institute of Management and

Technology
PROJECT REPORT
ON

EXPORT INCENTIVES FROM INDIAN

GOVERNMENT

SUBMITTED TO
Ambalika Institute of Management and Technology
Mohanlalganj, Lucknow
BY
Ambuj Tiwari
Roll No.1536370005
Batch No: 2015-17
IN PARTIAL FULFILLMENT OF
MASTER INBUSINESS ADMINISTRATION (MBA),
Dr.A.P.J ABDUL KALAM TECHNICAL UNIVERSITY

DECLARATION
I, Ambuj Tiwari here by declare that this project report is the record of authentic work carried out by me
during the period from 18/06/2016 to 31/07/2016 and has not been submitted to any other University or
Institute for the award of any degree / diploma etc.

Signature

Ambuj Tiwari

Date

CERTIFICATE
This is to certify that Mr. Ambuj Tiwari of Ambalika Institute of Management and
Technology has successfully completed the project work titled EXPORT INCENTIVES
FROM INDIAN GOVERNMENT in partial fulfilment of requirement for the completion
MBA as prescribed by the AKTU University.
This project report is the record of authentic work carried out by him during the period from
18/06/2016 to 31/07/2015.
He has worked under my guidance.
Signature
Name
Project Guide (Internal)
Date :`
Counter signed by
Signature
Name
Director
Date :

CERTIFICATE FROM THE COMPANY/ORGANISATION

ACKNOWLEDGEMENT

Actually, words are not enough to express my regards, respects and feelings of
gratitude to those who directly or indirectly have encouraged, helped and guided me
in this project work.
First of all I am thankful to my family members who have inspired me to do the MBA
course and as a part of that course I have prepared this project report.It is impossible
to clap with one hand. Thats why one required proper guidance and help from
different people.

I am thankful to :-

Mr. Sandeep Jaithlia (GM-Excise),

Mr. Rajesh Marvaniya (senior officer Excise),

Mr. Rajesh Badiya(senior Officer Excise)
Mr. Kiran Vaghamshi ( Excise Officer) and

Excise Department of WELSPUN INDIA LIMITED, Anjar

who provided more than encouragement. Our deepest gratitude goes to them whose
presence had always been a source of inspiration for me.

Specially, I would like to thank Mr. Rajesh Marvaniya, and Mr. KiranVaghamshi for
their valuable guidance and help for preparation of my project, Without his support,
would not be able to complete in given time frame.

I express my most sincere thanks to Faculties Of Ambalika Institute of Management

and Technology AKTU University of providing me valuable guidance in preparing
this report.
Thank you.

Executive summary

This project was a wonderful experience and great opportunity

to know real
corporate world .I got exposure to the real practical world of indirect taxation and its
implementation an organization in Welspun India ltd. I got the opportunity to study
about various system and Methodology of finance and account, and also got the
Opportunity to evaluate practical knowledge of production department at Welspun
India ltd. In brief I can define my project program as a complete guideline of my
future as a Finance / Indirect taxation manager.

PREFACE
Making and implementing a friendly policy regime and providing various types of incentives
by the Government as a facilitator is almost a prerequisite for accelerating technology
intensive exports in the knowledge driven economies.
In Order to evolve appropriate policies and incentives for the exporters of Technology,
technology intensive products, projects and services, it is necessary have knowledge about
the policies and incentives of other national Governments to their exporters, so as to have
benchmarking parameters for India.
The Centre for International Trade in Technology (CITT), set up recently at the Indian
Institute of Foreign Trade, with the support of Department of Scientific & Industrial Research
(DSIR), undertook a short Study covering specific policies and incentives of importing
countries for products from India.
The responses have indicated the need for greater financial Assistance, fiscal incentives and
tax concessions for procurement of imports for export.
After the economic reforms of 1991-92, liberalization of external trade, elimination of duties
on imports of information technology products, relaxation of controls on both inward and
outward investments and foreign exchange and the fiscal measures taken by the Government
of India and the individual State Governments specifically for IT and ITES have been major
contributory factors for the sector to flourish in India and for the country to be able to acquire
a dominant position in offshore services in the world.
The major fiscal incentives provided by the Government of India have been for the Export
Oriented Units (EOU), Software Technology Parks (STP), Economic Zones (SEZ).and
Special. Government takes incentives from DGFT under the rule of foreign trade policy. This
is promoting export function.

TABLE OF CONTENTS

CHAPTER

PARTICULARS
DECLARATION
CERTIFICATE
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
PREFACE

PAGE
NO.

1
2
3
6
7

1.

INTRODUCTION OF FINANCE DEPARTMENT AT

WELSPUN INDIA LTD

2.
3.
4.

ORGANISATION DETAIL

10

F&A ACTIVITIES AT WELSPUN INDIA LIMITED

RESEARCH METHODOLOGY
1.1Introduction (Theoretical )
1.2Practical work of MEIS
1.3Review of literature
1.4Tools for analysis data
1.5 Objectives & scopes of the study
1.6 Limitations of the study

5.

FINDING ,RECOMMENDATION AND

LEARNING FROM STUDY
CONCLUSION & SCOPE

APPENDIX

CHAPTER :-1
INTRODUCTION OF FINANCE DEPARTMENT AT
WELSPUN INDIA LTD
Finance department is a lifeline department of an organisation. The performance of
company is identifying on the performance of companys financial position.

The Welspun India has excellent financial management. Looking at profitability over Five
year, revenues, operating profit increase continually.

The account head in the accounting system must be in line with budgeting headApproved
for the Company. The Welspun India ltd facilitates proper reporting to theFunding
Agencies /company through budget comparison report.

Welspun India ltd. has an efficient finance department headed by a Finance Manager and
he is assisted by the deputy manager. Finance department responsible for Shaping the
fortune of the company preparing budgets raising Funds, kipping different accounts etc.
Welspun India ltd is having a management information System to assist the finance
department.

The finance department is dividing in to different section like general accounts, costing
bills, establishment and provident Fund account section, each having its own functions.

Chapter: 2
ORGANISATION DETAIL

WELSPUN CITY

WelspunCity, a 2500 acre township set up in the heart of Anjar is the backbone of
Welspun. It was established in 2004 with an initial investment of Rs. 13,500 million.

Today Welspun City houses a state-of-the-art Line Pipe mill which is capable of
producing Spiral Arc Welded (SAW) Pipes both Helical and Longitudinal pipes of the finest
grades and international standards.

 This is in addition to the ERW pipes which it manufactures. The one-of-its-kind

Textile Mill produces Terry Towels and Bed linen of the finest and the best quality in
the World.
These products are mostly exported to the top Welspun City takes pride in housing one of
the only three Plate-cum-coil mill of its kind in the World.
This mill with a capacity of producing plates up to 4.5 meters width and Coil up to 2.8
meters wide is all set to improve Welspun's operational capabilities.Welspun City is
additionally a prime example of continuous efforts of protecting the environment with a
strong emphasis on a-forestation.
The township is in the process of turning itself in the creation of the largest green belt in
the area, with a veritable forest of about 500,000 trees which includes the Jatropha tree,
the drought resistant perennial whose seeds is used to produce bio-diesel.
In its sincere efforts to improve the lives of children WelspunVidyaMandir, a school
up to class 10, affiliated under the Central board of Secondary Education, India (CBSE)
and WelspunAnganvadi, a pre-primary school for children has been set up for children
of Welspun employees and local families.
Retailers of the Globe which includes most of the Fortune 100 Companies like Wal Mart,
Target and J.C. Penny amongst others.

COMPANY PROFILE
VISION | MISSION | GLOBAL REACH | GLOBAL ASSOCIATIONS

As a US$ 3 billion company, Welspun Group is one of Indias fastest growing

conglomerates, registered at a CAGR of 30% over the last decade.

Welspun is a fully integrated player within the Pipes, Plates & Coils and Home

Textiles sector, while it also has a presence in the other business verticals such as Steel,
Infrastructure and Energy.

As a globally recognised leader in the fields of Line Pipes and Home Textiles,

Welspun Group has captured a strong foothold in more than 50 Countries, it employs over
24,000 people and has as many as 100,000+ shareholders.

Through a vast global footprint, the company has leveraged much business

association with a marquee of esteemed clients, especially within the Oil & Gas and Retail
sectors where most companies are listed in the Fortune 100.

Among the groups subsidiaries are Welspun USA, Welspun Tubular LLC, Welspun

Middle East and Welspun UK.

In the Line Pipe sector, Welspun has to its credit some of the most prestigious projects

including the worlds deepest pipeline project in the Gulf of Mexico, U.S.A; heaviest pipeline
project in the Persian Gulf; highest LNG pipeline project in Peru and longest pipeline project
from Canada to the US.

While in the Home Textiles sector, Welspun is the largest integrated towel

manufacturer in Asia, a leading supplier to 14 of the top 30 US retailers, and a global supplier
offering the entire range of products within the segment.

 Welspuns manufacturing base sits in its core facilities at Anjar, Gujarat, while other
units are diversified in different parts of India with one plant each in USA and Saudi
Arabia.
Behind this rapid rise to prominence is a story of vision, foresight, planning and
excellence.

It is this willingness to face challenges that has made Welspun a recognized name as
the one who pushes boundaries only to emerge victorious as an innovative solution
provider that dares to commit.

Welspun is proactively involved in a highly developed CSR programme which

focuses on the three E's - Education, Empowerment & Health and Environment.

With an aim to give back to the society, the company has driven an entire campaign to
empower the underprivileged and establishing a sustainable business model that takes
care of the environment.
The social activities arent just limited to high profile projects, in fact every Welspun
unite is encouraged to contribute to the community in any small way they can.

VISION
We aim to
emerge as a global leader
preferred by every home
serve...with passion
grow....@speed
innovate.....with quality
excel...with ethics
Delighting all stakeholders.....
We are...WELSPUN

MISSION

We Endeavour to reach a leadership position in each Segment / Sector of our Product /

Service.

We are committed to satisfy our customers by providing best quality and service,
which gives the highest value for money.

We believe that employees are our most important asset through which we can reach
the top in each category of our Product / Service.

Therefore, we will emphasize on their continuous improvement through upgrading

relevant knowledge and training.

We commit ourselves to continuous growth, so as to fulfill the aspirations of our

Customers, Employees and Shareholders.

GLOBAL REACH

GLOBAL ASSOCIATIONS

Werner International, US largest textile consultant in the world.

Vincenzo Zucchi, Italy largest Home Textile Company in Europe.
Most of the Fortune 100 companies, operating in Retail industry & Oil and Gas.
Ernst and Young, KPMG, PWC - 3 out of the Big 4 consulting firms.
Siemens, Germany
ThyssenKrupp AG German steelmakers

17

PROMOTERS
Bal krishan Goenka
Chairman, Welspun Group

Bal krishan Goenka (also known as BKG) is amongst India's most dynamic
businessmen and the Chairman of the Welspun Group a $3 billion multinational
conglomerate.
Under his astute leadership and exceptional flair for entrepreneurship, BKG has built
one of the most resilient conglomerates under the banner of Welspun. Every company
of the Group is growing at a dynamic pace and has emerged as a market leader, with
most clients coming from the Fortune 100 Companies.
Today, Welspun Group as a whole captures a presence in more than 50 countries,
employs over 24,000 people and has as many as 100,000+ shareholders.

Under BKG's able leadership, the company closed in one of the biggest PE deals with Apollo
Global Management - one of the world's leading private equity firms. He was ranked amongst
India's Most Powerful CEO's by The Economic Times, one of India's leading business
publications.
To add to his many credits, BKG has also received the much applauded nomination
for Entrepreneur of the Year award for two consecutive years in 2007 and 2008 while
the erstwhile Prime Minister of India honored him with the Emerging Company of the
Year award in 2009, instituted by Economic Times.
While the World Economic Forum have successively invited him for his contributions
to public initiative and recognized for his feisty leadership, BKG was associated as a
member in the Young Presidents Organization owing to his passion for business.
Born on 15 August, 1966 in Hissar, Hariyana, India, BKG was raised in Delhi. BKG
is married to Depali Goenka and has two daughters; Radhika, and vanshika.An avid
reader, vintage cars are one of his passions.

R.R. Mandawewala
Managing Director, Welspun India
Limited

R.R. Mandawewala is the Managing Director of Welspun India Limited (WIL). A

qualified Chartered Accountant (ICAI); he is in-charge of operations of the textile
business and has enabled Welspun to develop a global reach in over 50 Countries.
He has over 25 years of experience in industries varying from Textiles to SAW pipes.
Today, WIL is the largest producer of Terry Towels in Asia and the second largest
home textile company in the world.
Mr. Mandawewala is a prolific speaker and is associated with leading business
councils such as (CII), FICCI, IMC, BCC, Texprocil and FIEO.
He has been married to Mrs.Preeti Mandawewala and has two sons, Abhishek and
Yash. He loves to spend quality time with family and enjoys reading books in his free
time.

Dipali Goenka
Managing director, Welspun Global Brands ltd. And Executive Director, Welspun India
Ltd

DipaliGoenka is the Managing Director of Welspun Global Brands Limited and

Executive Director of Welspun India Ltd.
As the driving force behind its textile business, she has successfully led the
development of two of the most recognized brands in India known as SPACES Home
&Beyond and WelHome .

A Graduate in Psychology, she has also completed Owners/President Management

programme from Harvard.

 She has retail initiative in India and setup an award winning design studio at Welspun
with a clear global perspective.
Dipali has played an active role in FICCI and has led the Young FICCI Ladies
Organization (YFLO) Mumbai Chapter, and later FLO - The Women's Wing of
FICCI, Mumbai Chapter.
She's also a member of the Apparel Committee of FICCI, CCI Club and IMC ladies
wing.
Dipali also spearheads the Welspun Group's CSR activities which include
WelspunVidyamandir High School and WelspunAnganwadi in Anjar, Gujarat, as well
as other initiatives related to Education, Empowerment & Health, and the
Environment.
Married to B.K Goenka, Dipali has two daughters.
A successful entrepreneur, she believes in balancing professional commitments with
other roles as mother and wife.

FIVE UNITS OF WELSPUN GROUP

Welspun India Ltd.

Fast facts:-

Incorporated in January 1985

Fully integrated Home Textile Manufacturer - from spinning to finishing
Manufacturing facilities at Vapi and Anjar in Gujarat

 Ranked 1st among Home Textile Suppliers in the US (Source: Home Textile Today
(HTT USA)
Largest vertically integrated manufacturer of towels in Asia

Supplier to 14 of the top 30 global retailers - Wal-Mart, Target, J C Penney, Kohls,

Macys, etc
Distribution network in over 50 countries including U.S.A., U.K, Europe, Canada and
Australia.
It has modern manufacturing facilities at Anjar and Vapi in Gujarat, India where it
produces the entire range of home textiles for bed & bath category. Welspun India
Ltd. also owns the following home textile brands.
Find out more here: www.welspunindia.com

Welspun India ltd.owns home textile brands name:

Products of Welspun India

Comforter

Duvet

Embroidered bed
sheets

CUSTOMERS

WELSPUN MARKETING STRATEGY

Global
scale

One stop shop for

home

WELSPUN
MARKETING
STRATEGY

Global market
intelligences

Consumer
research

Advantage of
brands

Multi location design

team

Packaging and
pos

Product development and

innovation

TEXTILE SECTION

PROCESS OF TERRY TOWEL

There are four main steps in this process

are as follows
1) Spinning
2) Weaving
3) Processing
4) Cut & Sew

INPUT
Cotton

PROCESS
Spinning

OUTPUT
Yarn

Yarn

Warping

Warping Beam

Warping beam

Sizing

Weaving Beam

Weaving

Grey Doff

Processing,

Weaving Beam
Grey Doff
Finished Batch

Bleaching,
Dyeing,
Finishing

Finished Batch

Cut & Sew.

Towel

Length Cutting,

(Bath, Hand
Wash,

& hemming
Cross Hemming

Bath Mat)

Welspun Corp ltd.

Fast facts:Flagship Company of the US$ 3.5 billion Welspun Group

Incorporated in 1995
Total pipe capacity of 2.425 million tonnes per annum (MTPA)
Total plate coil capacity of 1.5 million MTPA
2nd Largest Line Pipe Company in the World
Manufacturing Locations:-Anjar and Dahej in Gujarat, India
-Mandya in Karnataka,india
-Little rock in arkanasas,USA
-Damman in Saudi Arabia (one of the largest spiral pipe manufacturing facilities in the
region)

Partner of Choice for more than 50 Oil & Gas Giants across the globe with a
geographically diverse client base including Chevron, Exxon Mobil (Golden Pass Pipeline),
Saudi Aramco, British Gas, Trans Canada

Anjar and Dahej Units officially certified with the SA 8000:2008 standards of Social
Accountability.
Welspun Corp Ltd. (WCL) is the flagship company of Welspun Group and is a global giant
in the Large Diameter Line Pipe segment.
Over the last 15 years, the company has emerged as a leading name in the industry and
today offers a one-stop solution with its wide range of products.
Having a profile of clients coming from amongst the Fortune 100 companies especially in
the Oil and Gas sector.

Welspun Corp has established itself as a recognized brand when it comes to supplying pipes
to some of the most challenging projects in the world.

 The company has modern manufacturing facilities in India, USA and Saudi Arabia for
Longitudinal (LSAW), Spiral (HSAW) and HFERW / HFIW pipes.
Offering the complete range of high grade line pipes ranging - from inch to 121 inches
for transmission of oil & gas, Welspun Corp also provides coating, bending and double
jointing facilities to its clientele.
The company is accredited with ISO 9001, ISO 14001 and OHSAS 18001 certifications.
It has supplied pipes for the worlds deepest pipeline project (Independence Trail, Gulf of
Mexico), highest pipeline project (Peru LNG), longest pipeline (Canada to US) and the
heaviest pipeline project (Persian Gulf).
It is currently executing a project to manufacture the worlds largest diameter pipe size
(48OD X 0.527WT).
Find out more here: www.welspuncorp.com

Welspun Steel Ltd

Fast facts:Incorporated in 2004

Attained quality standards TS 16949 by RWTUV CERT and ISO 9001:2000
60,000 mtpa manufacturing facility in Anjar, Gujarat, India

Welspun Steel Ltd.

(WSL) is a leading manufacturer of quality products like ISI certified TMT rebars as well
as ingots, billets, blooms and rolled bars in rounds, round corner squares & seamless pipes /
tubes.
The company has its expertise in alloys and high grade steels at our 60,000 MTPA state-ofthe-art facility in Anjar.
WSL supplies quality and engineering grade steel, carbon and alloy steels used mainly for
auto-manufacturing / auto components and other engineering applications.
Find out more here: www.welspunsteel.com

Welspun Energy Pvt. Ltd

Fast facts:-

More than 600 MW clean energy capacity in pipeline of this 328 MW (DC) projects
are operational.
Total generation from solar & wind plants till March 2014: 497.1 MWh
Total of 445464 tonnes of CO2 emissions are being offset by WREPL
One of the world's largest, 151 MW (DC) Solar Project, Madhya Pradesh
184 MW (DC) Solar Project, Punjab
146 MW (DC) Wind Project, Rajasthan
100 MW (DC) Wind Project, Karnataka

72 MW (DC) Solar Project, Maharashtra

66 MW (DC) Solar Project, Tamil Nadu
60.5 MW (DC) Solar Project, Rajasthan
50 MW (DC) Solar Project, Gujarat
19 MW (DC) Solar Project, Karnataka

 5.5 MW (DC) Solar Project, Andhra Pradesh

Welspun Renewable Energy Pvt. Ltd. (WREPL) and Welspun Energy Pvt. Ltd.
(WEPL) are spearheading India's quest for all round sustainable development.

WREPL is setting up India's largest clean energy projects to meet global and domestic
green energy capacity and climate change mitigation targets.

WEPL has been constructing renewable energy projects through its strong
Engineering, Procurement & Construction (EPC) capabilities.

We are growing rapidly as planned to spread our footprint throughout the country.

Within a short span of our existence, we have pioneered solar & wind power
solutions, both in terms of plant size and total installed capacity.
We have time & again demonstrated our ability to design, engineer and build
renewable projects with high performance outputs and low cost - delivery period.

Our projects are among the highest generating ones in the country.
Find out more below:
Welspun Renewable Energy Pvt. Ltd.

Welspun Energy Pvt. Ltd.

Welspun Enterprises Ltd.

Fast facts:Received order for Chirai-Anjar Road project

Has successfully completed six BOT (Toll) road projects with a total length of over 500
km
Signature project is the 142.6 km long Dewas-Bhopal Corridor linking Bhopal and
Dewas on SH 18 in Madhya Pradesh.
Welspun Enterprises Ltd. (WEL) is a niche player in the construction industry for the
past 35 years.
With the groups rich experience of executing EPC contracts and WPLs legacy of
being in the business of EPC projects across various sectors like roads, water, industrial
structures and some projects through PPP.
The company is set to play a larger role in the infrastructure space.
WEL has executed infrastructure projects such as highways, bridges, industrial,
residential and commercial buildings
Find out more here: www.welspunenterprises.com

CSR Philosophy

Socially responsible and ethical business practices are the defining tenets of Welspun's
corporate philosophy.
In everything we do there is a strong commitment to wider, all-round social progress,
as well as to a sustainable development that balances the needs of the present with those
of the future.

The Group's social vision has been enshrined in the three E's which have become the
Guiding Principles of our CSR initiatives - Education, Empowerment & Health, and
Environment and a number of projects have been taken up under the banner of the
Welspun Foundation for Health and Knowledge (WFHK).
WFHK is an essential part of the Group's set up, and is active wherever we have a
business presence.
Through it we engage with local stakeholders, and in a process that is both consultative
and collaborative.
We have taken up a range of innovative programmes in the spheres of health,
education, environment, as well as cultural and civic projects over the last few years.
Local Stakeholder Engagement is extremely important and in most of our project
centres.
We have successfully managed to integrate with and develop mutually beneficial
relationships with them by supporting innovative programmes in health, education,
environment, as well as cultural and civic projects.
We take utmost care to integrate community investment considerations into decisionmaking and business practices and assist in local capacity building to develop mutually
beneficial relationships with communities.

EDUCATION

Welspun

promotes and supports the Right to Education and is dedicated to

improving and enhancing the quality of education thus equipping the children of
today to become the leaders of tomorrow.
High priority is given to specific programmes to boost education of the Girl Child.
WelspunVidyaMandirs (A school up to Standard X) at Anjar, Gujarat and Salav,
Maharashtra, aim to enhance all round development of children.
The provide quality education to over 2060 students.
Welspun Foundation also works closely with the government and non-profit
organisations on educational projects in Gujarat and Maharashtra for the benefit of
over 3,000 tribal, rural and urban children.
It supports the efforts of NGOs like Naandi Foundation andLight of Life Trust.

EMPOWERMENT AND HEALTH

Welspun is firmly committed to the empowerment of women, focusing on providing them

training that will enable them to earn a livelihood and be self-sufficient.

Welspun pioneered Mission Mangalam Scheme with the Gujarat Government.

Currently there are three SakhiSwarnimCenters being run in Varsamedi, Dudhai and
Bhadreshwar.

This initiative widens their livelihood options by building capacities and providing
training to rural women.

All those trained under the scheme are provided a means of earning a livelihood,
which has enhanced their esteem, confidence and most importantly the familys economic
standards.

Welspun India Ltd, (WIL) Vapi has adopted an ITI in Vansda, District, and Navsari
under the Central Government Scheme of ITI upgradation by Public-Private Partnership.

It has introduced three new trades i.e. Spinning, Weaving and Cutting & Sewing
where training is imparted by professors from MS University, Vadodara and at WIL, Vapi.

Successful students are absorbed in WIL.

Welspun has also been at the forefront of initiatives to enhance the levels of health
care of all the communities in close proximity to our plants, with a particular emphasis on
dedicated facilities for women and children.

We have set up health centres on our own as well as collaborated with ongoing
projects being run by the government and other social institutions.

Welspuns health centres, which provide subsidized or free care to the needy, are a
boon to the underprivileged populations in the villages surrounding our projects

ENVIRONMENT.

Welspun strives at all levels to conserve natural resources and energy.


Optimizations of consumption and well planned wastage control & recycling
measures are implemented at all facilities.

Going beyond just compliance with applicable Health, Safety and Environment (HSE)
legislations, we strive to ensure that all managerial decisions including selection/procurement
of materials, machinery equipment, placement of personnel and setting up of projects are
integrated with the broader goals of our CSR policy.

Others

Ethical Business Conduct is given the highest priority at Welspun.

We strictly follow and practice the principles of accountability, honesty and integrity
in all aspects of our business and strictly comply with all applicable laws and
legislations.
We support and respect Human Rights within our sphere of influence and promote
universal respect for fundamental freedoms - particularly those of our employees, the
communities within which we operate and parties with whom we do business, without
distinction as to ethnicity, origin, religion, gender, language or disability.
Employee Relations are also a key concern at Welspun. Maximum employment and
economic opportunities are provided to the local communities, employees are treated
fairly and with dignity and consideration for their goals and aspirations, diversity at
the workplace is encouraged and embraced.

Fair labor policies are practiced and all national and local laws of the countries and
communities where we operate are followed.
We are additionally committed to provide equal opportunity in all aspects of

employment and will not engage in or tolerate unlawful workplace conduct, including
discrimination, intimidation, or harassment.

Welspun Foundation for Health & Knowledge

Welspun Foundation for Health & Knowledge, chaired by Mrs.DipaliGoenka, is a Public

Charitable Trust established in 2004.
A part of the Welspun Group's profits is ploughed back into welfare-driven initiatives of
the Foundation.
It supports developmental activities related to Education (Girl Child), Womens
Empowerment, Environment, Health and Craft. Most of the activities of the Foundation take
place in Mumbai, Anjar, Dahej and Vapi i.e. in and around Welspun facilities.

WHY WELSPUN??

Well within three decades, Welspun has been an epitome of constant growth and
empowerment.
While Welspun has been striving towards the numeric Uno position in the textile and pipes
industry, it is also making a mark in sectors like Energy, Infrastructure, Steel and Oil & Gas
through which it has been fuelling the nations growth and creating a sustainable future for
the country.
Welspun, with its state of art technology and its insurmountable passion for excellence, has
spread its wings to 50 nations across the globe touching millions of lives.
Today, Welspun has over 24,000 employees who share and zealously strive towards a
common dream of making this world a better place to live in.
Come be a part of Welspun and help us build a world that is driven by innovation,
continuous improvement and sustainability.

CONTACT US

WELUSPUN INDIA LTD-Home Textiles

CHAPTER: 3
F&A ACTIVITIES AT WELSPUN INDIA LIMITED
Core competencies Developed across various Assignment and Activities.
Strategic planning
Financial management and budgeting
Commercial operations
Financial Accounting
Audit & Risk management
Debtor Mgmt.
Taxation/ compliance/resource Mobilization/Fund Management
International Tax Planning
Auditing
Financial Analysis
Variance Analysis
Business Planning
Capital Market
Corporate Finance
Budgets

International Tax
SAP BW
Tax
Managerial finance
Internal controls
Target costing
MIS
Accounting
Process improvement
Internal audit
ERP
Team management
Finance
Management
Banking
Financial Modelling
Working capital management
Restructuring

SAP
Project finance

Mergers & acquisitions

Financial reporting

Strategic financial planning

Cash flow
Financial Audits
Treasury management
Investments

Chapter: 4
RESEARCH METHODOLOGY
EXPORT INCENTIVES FROM INDIAN
GOVERNMENT

1.1INTRODUCTION:-

An incentive is something that motivates an individual to perform an action. The study of

incentive structures is central to the study of all economic activities (both in terms of
individual decision-making and in terms of co-operation and competition within a larger
institutional structure). Economic analysis, then, of the differences between societies (and
between different organizations within a society) largely amounts to characterizing the
differences in incentive structures faced by individuals involved in these collective efforts.
Ultimately, incentives aim to provide value for money and contribute to organizational
success.

Meaning of export:-

To send goods or services across national frontiers for the purpose of selling and realizing
foreign exchange called exports

Objectives

Whether this is your first export venture or your 21st, the steps to success are the same.
By now you should have analyzed your readiness to export and have done some market
research. Now its time to explore your competitive advantages and set your export
objectives.
Increasing your export market advantage comes down to the five Cs: company, country,
customer, contact and competitor, according to the governments Winning Exports: A
Planning Guide. By working through each of these areas, well work step-by-step to help
develop and refine your export objectives, so you can be better prepared to compete for
export markets.

Market Position
The corporate profile should include:
company particulars, credentials, history, contact information;
a description of your product or service, its features and benefits, users, price stability (all
emphasizing your competitive advantages);
marketing and growth strategiestarget markets, current market position, the marketing
variables for your product or service and how you compare with the competition, packaging
and promotional methods, and how you intend to use these in selected overseas markets;
your current export objectivesexport potential, product availability, preferred distribution,
any product adaptations, and freight specifications.

Market Research
Choosing your export markets will involve extensive market research in order to assess the
best options and reduce risk. As well as your own market research, state government trade
departments, industry associations and market research companies can help with this. And
actually visiting your chosen markets is also a likely option (see Step 4, Visiting Your Market
in our upcoming may issue).
Ultimately you will want to identify one or two suitable overseas markets that have the
potential to be developed quickly, and select initial markets with low risk and relative ease of
entry.
Determining ease of entry will depend on a companys individual situation, but there are
some general characteristics which deem a country more easy or difficult to enter. Easier
markets tend to be similar to your domestic market in terms of language, culture or business
practices; are geographically close; have a familiar banking system; and similar rules,

regulations and laws. More difficult markets tend to be further away, are large or complex,
have a high level of regulation and complex import requirements or may be a relatively
undeveloped market.
An important consideration when selecting your target market is the advantage offered by any
particular export market for your product or service. You will need to consider whether your
local competitive advantages will be sustained in your proposed export market, whether,
through exporting, you can extend the life of a product that has already reached saturation
point domestically, and if you can achieve economies of scale or improve return on
investment by extending sales in a larger market.
When choosing your export markets you will need to balance ease of entry with these market
opportunities and establish which countries best match your business based on your research.
You can determine the best match by considering the fit between your company and the
market in terms of contacts, comfort levels, riskiness, development costs and your interest in
the market.

Products and Services

When choosing the products or services to offer in a new export market, its important to
have a clear idea of what drives customers to buy your products or services.
Your customers may have varying reasons for purchasing your product so its worth breaking
down your customers into subgroups, based on their different requirements, in order to
understand their needs, expectations and buying patterns.
The key to your success will be to identify and meet the needs of these subgroups whose
needs arent met by others in the marketplacethis is your competitive advantage. Your
competitive advantages can be based on cost, the quality or value to customers of your
product or service, your ability to respond quickly to customers, and your relationship with
them and others in the industry.
You will need to determine whether your existing competitive advantage(s) can be transferred
to your chosen export market. Generally speaking, entering the export market will require
some modifications to be made to your business to compete successfully overseas.

Distribution Channel
Choosing the best distribution channel for your exports will depend on your product/service,
the local conditions in the overseas market and the long-term cost-effectiveness and returns
from each option.
There are several different distribution options:
Indirect exporting involves relying on a third party within Australia, and isnt necessarily
the result of a planned export approach. Examples of this type of arrangement include
overseas buyers visiting Australia, selling to Australian-based trading houses or
intermediaries, subcontracting products/services for an offshore project and appointing an
Australian-based consultant or commission agent.
A distributor is a company or other entity, usually based in your export market, that buys
your goods and sells them to the local market. Distributors are also responsible for marketing
products, which can have a significant impact on your export sales.
A representative agent is a sales agent, based in the export market, to sell one or more
related products. They are paid by commission and usually organize the warranty and product
service. Agents may work exclusively for your company, or on a non-exclusive basis.
Manufacturing under license (MUL) is an agreement in which an exporter licenses its
intellectual property to an overseas company, who then manufactures the goods or delivers
the services as if they were their own, for a set fee or royalty.
Franchising involves an Australian franchisor entering an agreement with a franchisee
overseas to use a developed business package.
Joint venture is a joint ownership arrangement between you and an entity overseas in which
the partners shares can vary from 50-50 to a combination in which one partner is virtually a
silent participant.
Direct exporting involves selling your products/services directly into the export market and
dealing directly with your customers from an Australian base.
One hundred percent offshore ownership can involve either establishing an overseas branch
office or making a Greenfield investment. A Greenfield investment implies setting up a
business from scratch and requires the exporter to establish all the infrastructure necessary to
operate the business.
Bear in mind that you can use a combination of distribution options, even within one country.
A strong distribution strategy will encompass several alternatives in the one market. This will
ensure short-term, low-risk cash flow is available for longer-term growth.

Market Strength
Your export success will be largely determined by the market strength of your competitors, as
well as your point of difference.
In assessing the market strength of your competition, ask yourself how many direct
competitors there are for your product or service; who are these competitors, how big are they
and what is their market share; are there alternative products or services competing with
yours; and are there barriers to entry, which will impact on your success?
Then, to determine point of difference, ask yourself what are the benefits offered to
customers by your competitors; how well do your competitors meet the needs of customers
and to what extent are customers currently satisfied; and do you currently understand
customer buying patterns which may impact on your success?
Once youve answered these questions, you can deal with the outcomes by undertaking a
competitive SWOT analysis. Through brainstorming with management and key staff, analyse
your businesss strengths, weaknesses, opportunities and threats, and compare them with
those of your competitors.
While doing this, also think of how your company appears in the eyes of your export
customers, compared with your competitors.

Export Statement
After identifying the five Cs and establishing your export objectives, you will be able to
incorporate these into an export statement. This will explain why you intend to export, how
you will go about it, and what you hope to achieve.
Your statement should be between one and three pages long and briefly cover the companys
export objectives, the key reasons for exporting, what you are planning to export, target
country and future target countries, target customers, competitors and your competitive
advantages, and your initial distribution intentions.
As you continue through the export process you will continually refine both your export
objectives and your corporate profile, and amend your export statement accordingly. Your
export statement will become a critical part of your export plan.

Export Incentives

Monetary, tax or legal incentives designed to encourage businesses to export certain types of
goods or services. A government providing export incentives often does so in order to keep
domestic products competitive in the global market. Types of export incentives include tax
exemption on profits made from exports.
Export incentives make domestic exports competitive by providing a sort of kickback to the
exporter. The government collects less tax in order to deflate the exported good's price, so the
increased competitiveness of the product in the global market ensures that domestic goods
have a wider reach. This level of government involvement can also lead to international
disputes that may be settled by the World Trade Organization (WTO).

Regulation of Indian export

The import or export of any foreign products in India is regulated under the Foreign Trade
(Development and Regulation) Act. Under this act the Central government of India can
make the provisions for development and also regulates the foreign trade. Also the Central
government can prohibit, restrict and regulates the export activities. Under this act every
importer or exporter must obtain an Importer Exporter Code number 'IEC' code number
from Director of General of Foreign Trade.

Export strategy
Is to ship commodities to other places or countries for sale or exchange. In economics, an
export is any good or commodity, transported from one country to another country in a
legitimate fashion, typically for use in trade.
The four key pillars of a successful export strategy:
Internal 1: Export readiness assessment of a company (and gap analysis with
recommendations how to address the change required)
Internal 2: Export readiness assessment of a product (including benchmarking with similar
products that are currently successfully traded on target markets; technical characteristics;
packaging and labeling).
External 3: Research of 220 countries and the Worlds major trade channels to find target
market/s.
External 4: Develop export strategy to enter the selected above target market/s (that will
include such considerations like transport, partnership, key distribution channels, pricing,
volumes, advertising, etc.).
Ownership advantages are the firm's specific assets, international experience, and the ability
to develop either low-cost or differentiated products within the contacts of its value chain.
The location advantages of a particular market are a combination of market potential and
investment risk. Internationalization advantages are the benefits of retaining a core
competence within the company and threading it though the value chain rather than obtain to
license, outsource, or sell it. In relation to the Eclectic paradigm, companies that have low
levels of ownership advantages either do not enter foreign markets. If the company and its
products are equipped with ownership advantage and internalization advantage, they enter
through low-risk modes such as exporting. Exporting requires significantly lower level of
investment than other modes of international expansion, such as FDI. As you might expect,
the lower risk of export typically results in a lower rate of return on sales than possible
though other modes of international business. In other words, the usual return on export sales
may not be tremendous, but neither is the risk. Exporting allows managers to exercise
operation control but does not provide them the option to exercise as much marketing control.
An exporter usually resides far from the end consumer and often enlists various
intermediaries to manage marketing activities. After two straight months of contraction,
exports from India rose a whopping 11.64% at $25.83 billion in July 2013 against $23.14
billion in the same month of the previous year.

Disadvantages of exporting
For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and
services to foreign markets seems to be more difficult than serving the domestic market. The
lack of knowledge for trade regulations, cultural differences, different languages and foreignexchange situations as well as the strain of resources and staff interact like a block for
exporting. Indeed, there are some SME's which are exporting, but nearly two-third of them
sell in only to one foreign market. The following assumption shows the main disadvantages:

Financial management effort: To minimize the risk of exchange-rate fluctuation and

transactions processes of export activity the financial management needs more capacity to
cope the major effort
Customer demand: International customers demand more services from their vendor
like installation and startup of equipment, maintenance or more delivery services.
Communication technologies improvement: The improvement of communication
technologies in recent years enable the customer to interact with more suppliers while
receiving more information and cheaper communications cost at the same time like 20 years
ago. This leads to more transparency. The vendor is in duty to follow the real-time demand
and to submit all transaction details.
Management mistakes: The management might tap in some of the organizational
pitfalls, like poor selection of oversea agents or distributors or chaotic global organization.
Ways of exporting
The company can decide to export directly or indirectly to a foreign country.

Types of Export:Direct export

Merchandised export

Direct export

Direct exporting means that a producer or supplier directly sells its product to an
international market, either through intermediaries -- such as sales representatives,
distributors, or foreign retailers -- or directly selling the product to the end user. An example
of this would be directly selling computer parts to a computer manufacturing plant. Direct
exporting requires market research to locate markets for the product, international distribution

of the product, creating a link to the consumers, and collections. Whether direct exporting is
feasible depends on the company's size and marketing ability, previous exporting experience,
business conditions in chosen markets and the nature of the product --- be it wine, produce,
books, cars or computer parts

Advantages of direct export

Direct exports eliminate the export companies and most intermediaries, allowing for direct
marketing and maximum profit. The domestic producer or supplier can send its own
employees on sales calls to the end-market retailers and re-sellers, or to companies with a
direct need for the product. Direct exports offer more control over marketing, more protection
for intellectual property and timelier feedback from foreign markets.

Disadvantages of direct export

Direct export disadvantages include the cost of creating an exporting department -- as

well as the needs for educating employees about export documentation, establishing shipping
procedures and the ability to make and receive international payments. Direct exports are
costly for companies lacking the human resources for field sales and the financial resources
to promote their products internationally. Other concerns affecting direct exporting include
drops in exchange rates and unpredictable orders from foreign markets. In addition, some
products may not be appropriate for export. These include products with a short shelf life or
work life, such as milk; electronic gadgets with updated versions coming out in six to 12
months; products that would cost more to transport than to produce, and products requiring
extensive after-sale service due to poor quality or delivery problems.

Merchandise export
Exports of goods, not services. Also called tangible exports& merchandise export.

Merchandising
Merchandising is the advertisement of goods for sale at retail locations. This can take several
forms, including on-site product demonstrations, providing free samples of product to
customers and displaying product pricing points in store windows. Extensive planning goes
into the merchandising process and a company's chosen techniques often seek to place the
appropriate products within specific markets to meet targeted needs of consumers within
those markets. A company's marketing division must account for a variety of specific details
when introducing products into new markets, including inventory levels and the appropriate
time of year to begin merchandising campaigns.

Export merchandising is a method of offering retail goods for sale in a foreign consumer
market. Many large companies across the country maintain entire divisions devoted to finding
ways to better enter foreign retail markets through export merchandising to increase profit
and sustain growth. Thanks to the Internet, small businesses can get in on the act as well
without the need of establishing an international supply chain and foreign retail locations.
Export merchandising applies all the principles of product merchandising but in a country
separate from the originating business's home territory. Marketing personnel must determine
how the company's proposed product export can find a niche within a foreign market and
how foreign consumers might receive the product. The business must also find retail
locations to sell the merchandised export and ensure that these locations provide adequate
access for targeted consumers to purchase the exported product.

Importance of Global Economy

The globalization of business due to an increase in digital technology fueled by the Internet
has made export merchandising a necessity for companies looking to expand and keep up
with competitors. Foreign countries can provide an untapped source of revenue for
companies based in the United States for existing products and also as an avenue to launch
new products targeted specifically for foreign markets. For example, automakers in the
United States have utilized export merchandising strategies for years by marketing smaller,
more fuel-efficient vehicles to the European market while marketing larger sport utility
vehicles to domestic consumers.

Cost of Export Merchandising

Establishing a physical retail presence within a foreign country for export merchandising
purposes is expensive. It also requires a business to jump through multiple legal hoops in
both the United States and the receiving foreign country. The Internet provides a cheap
alternative for a smaller company to conduct export merchandising while keeping all
company operations located in the United States. Establishing a retail website can allow a
small domestic business the ability to process orders and ship abroad without the need of
building costly shipping and supply infrastructure.

Projected Indian Textiles Industry Domestic + Exports (US$ bn)

400
350
300
250
300

200

150
100
50
0
2011

2016

2021

Indian Textile : Well placed for Strong Growth

Estimated size of US$ 89 bn in 2011 (domestic + export), projected to reach US$ 223
bn by 2021, CAGR of ~10%.

Second Largest Producer of Cotton, textiles $ garments and only major textiles
exporting country with a net cotton surplus.

12% of Indias export and 4% India GDP attained through Textile Industry.

Third Largest Exporter of textiles, with a share of ~ 4%.

US and EU account for export for about two-third of Indias Textile Export.

Indias market share gain most prominent in home textiles, especially in the US
market

India, Pakistan and China account for more than 85% of the total exports to USA in home
textiles
Of these three, Indias share has been steadily increasing while the other two have
maintained or lost share

Export frame work of welspun India

40
35
30
25

INDIA
PAKISTAN

20

CHINA
15

ROW

10
5
0
2009

2010

2011

2012

2013

2014

50
45
40
35
30

INDIA

25

PAKISTAN
CHINA

20

ROW

15
10
5
0
2009

2010

2011

2012

2013

2014

9EXPORT INCENSENTIVES ARE TAKEN BY FOLLOWING TYPES

DGFT
CUSTOMS
EXCISE
SALES TAX

DGFT:-

The full form of DGFT is Directorate General of Foreign Trade.

The Directorate General of foreign Trade (DGFT) is the agency of the Ministry of Commerce
and Industry of the Government of India, responsible for execution of the import and export
Policies of India. It was earlier known as Chief Controller of Imports & Exports (CCI&E) till
1991. DGFT plays a very important role in the development of trading relations with various
other nations and thus help in improving not only the economic growth but also provides a
certain impetus needed in the trade industry. For promoting exports and imports DGFT
establish its regional offices across the country.
Directorate General of Foreign Trade is an attached office of the Department of Commerce,
Ministry of Commerce and Industry. Its headquartered in Udyog Bhavan, New Delhi. Under
its jurisdiction, there are four Zonal Offices at Delhi, Mumbai, Kolkata and Chennai headed
by Zonal Joint Director General of Foreign Trade. There are 35 Regional Authorities all over
the country.
DGFT provides a complete search-able database of all exporters and importers of India. The
search can be completed only if full IEC code and first three letters of company name are
entered.

Functions and responsibilities of DGFT:

1.
2.
3.
4.
5.
6.
7.

DGFT entrusted with the responsibility of implementing various policies regarding

trade for example, Foreign Trade Policy.
DGFT is the licensing authority for exporters, importers, and export and import
business.
DGFT can prohibit, restrict and regulate exports and imports.
DGFT has important role to issue Notifications, Public notices, Circulars, etc.
DGFT grant 10 digit IEC (Importer Exporter Code), which is a primary requirement
to Import Export
DGFT introduces different schemes from time to time regarding trade benefits
throughout the country.
DGFT has introduced ITC (HS CODE) schedule-1 for import items in India and
Schedule-2 for Export items from India.

Screen shot of DGFT:

CUSTOME

Customs is an authority or agency in a country responsible for collecting tariffs and for
controlling the flow of goods, including animals, transports, personal effects, and hazardous
items, into and out of a country.[1] The movement of people into and out of a country is
normally monitored by immigration authorities, under a variety of names and arrangements.
The immigration authorities normally check for appropriate documentation, verify that a
person is entitled to enter the country, apprehend people wanted by domestic or international
arrest warrants, and impede the entry of people deemed dangerous to the country.
Each country has its own laws and regulations for the import and export of goods into and out
of a country, which its customs authority enforces. The import or export of some goods may
be restricted or forbidden.[2] In most countries, customs are attained through government
agreements and international laws. A customs duty is a tariff or tax on the importation
(usually) or exportation (unusually) of goods. Commercial goods not yet cleared through
customs are held in a customs area, often called a bonded store, until processed. All
authorised ports are recognised customs areas.

EXCISE
The etymology of the word excise is derived from the Dutch accijns, which is presumed to
come from the Latin accensare, meaning simply "to tax".

Regulatory and legal definitions of 'excise' vary by country. For example:

In India, an excise is described as an indirect tax levied and collected on the goods
manufactured in India.

In India, almost all manufactured products are included for excise duty provided following
four conditions are fulfilled:

There should be a manufacture

The manufacture should be in India(excluding special economic zone)
The manufacture should resulted in goods
The goods thus manufactured must be excisable(means the goods must be specified in
central excise traffic act)

In India, for getting excise tax, the Government of India has made automation of central
excise and service tax. With this, manufacturer can easily pay their excise tax online on every
5th of following the month through GAR-7

SALES TAX
A sales tax is a tax paid to a governing body for the sales of certain goods and services.
Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the
point of purchase. When a tax on goods or services is paid to a governing body directly by a
consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods
or services from sales and use tax.

FOREIGN TRADE POLICY (FTP)

Foreign trade in India includes all imports and exports to and from India. At the level of
Central Government it is administered by the Ministry of Commerce and Industry. As of
2014-2015, India stood 19th among the leading exporters in the world with merchandise
exports worth $267 billion.

FTP (2015-2020)
Foreword
Indian government has announced a host of incentives with an aim to nearly double goods
and services exports to USD 900 billion by 2019-2020. The report said that China registered
the highest merchandise trade by value in 2015 with USD 2,275 billion worth of exports.
Total world merchandise exports were USD 16,482 billion whereas imports were USD
16,766 billion. "Exports of developed and developing countries should grow at around the
same rate in 2016, 2.9 per cent in the former and 2.8 per cent in the latter. Meanwhile,
imports of developed economies are expected to outpace those of developing countries in
2016, with a 3.3 per cent rise in the former compared to a 1.8 per cent increase in the latter,"
it said. Falling for the 15th month in a row, exports dipped 5.66 per cent in February to USD
20.73 billion due to contraction in shipments of petroleum and engineering goods amid tepid
global demand.
The World Bank estimate suggests that 53 million more people would fall into the poverty net
this year and over a billion people would go chronically hungry. Though India has not been
affected to the same extent as other economies of the world, yet our exports have suffered a
decline in the last 10 months due to a contraction in demand in the traditional markets of our
exports. The protectionist measures being adopted by some of these countries have
aggravated the problem. After four clear quarters of recession there is some sign of a
turnaround and the emergence of green shoots, though I would be hesitant to hazard a guess
on the nature and extent of this recovery and the time the major economies will take to return
to their pre-recession growth levels.
Announcing a Foreign Trade Policy in this economic climate is indeed a daunting task. We
cannot remain oblivious to declining demand in the developed world and we need to set in
motion strategies and policy measures which will catalyse the growth of exports. In the last
five years our exports witnessed robust growth to reach a level of US$ 383 billion in 2014-15
from US$ 288 billion in 2009-10. Our share of global merchandise trade was 2.5% in 2013.

We would like to set a policy objective of achieving an annual export growth of US$ 340
billion by March 2015-16. In the remaining four years of this Foreign Trade Policy i.e. upto
2020, the country should be able to come back on the high export growth path of around 25%
per annum. By 2020, we expect to double Indias exports of goods and services. The long
term policy objective for the Government is to double Indias share in global trade by 2020.
In order to meet these objectives.
Government would follow a mix of policy measures including fiscal incentives, institutional
changes, procedural rationalization, enhanced market access across the world and
diversification of export markets. Improvement in infrastructure related to exports; bringing
down transaction costs, and providing full refund of all indirect taxes and levies, would be the
three pillars, which will support us to achieve this target. Endeavour will be made to see that
the Goods and Services Tax rebates all indirect taxes and levies on exports. The Government
seeks to promote Brand India through six or more Made in India shows to be organized
across the world every year. In the era of global competitiveness, there is an imperative need
for Indian exporters to upgrade their technology and reduce their costs. Accordingly, an
important element of the Foreign Trade Policy is to help exporters for technological
upgradation. Technological upgradation of exports is sought to be achieved by promoting
imports of capital goods for certain sectors under EPCG at zero percent duty. Under the
present Foreign Trade Policy, Government recognizes exporters based on their export
performance and they are called status holders. For technological upgradation of the export
sector, these status holders will be permitted to import capital goods duty free (through Duty
Credit Scrips equivalent to 1% of their FOB value of exports in the previous year), of
specified product groups. This will help them to upgrade their technology and reduce cost of
production. For upgradation of export sector infrastructure, Towns of Export Excellence and
units located therein would be granted additional focused support and incentives. The policy
is committed to support the growth of project exports. A high level coordination committee is
being established in the Department of Commerce to facilitate the export of manufactured
goods / project exports creating synergies in the line of credit extended through EXIM Bank
for new and emerging markets.

HIGHLIGHTS
OF
FOREIGN TRADE POLICY 2015-2020
1.Merchandise Exports from India Scheme (MEIS)
Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus
Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for
rewarding merchandise exports with different kinds of duty scrips with varying conditions
(sector specific or actual user only) attached to their use. Now all these schemes have been
merged into a single scheme, namely Merchandise Export from India Scheme (MEIS) and
there would be no conditionality attached to the scrips issued under the scheme. The main
features of MEIS, including details of various groups of products supported under MEIS and
the country groupings are at Annexure-1.
Rewards for export of notified goods to notified markets under Merchandise Exports from
India Scheme (MEIS) shall be payable as percentage of realized FOB value (in free foreign
exchange). The debits towards basic customs duty in the transferable reward duty credit
scrips would also be allowed adjustment as duty drawback. At present, only the additional
duty of customs / excise duty / service tax is allowed adjustment as CENVAT credit or
drawback, as per Department of Revenue rules.
2. Service Exports from India Scheme (SEIS)
Served From India Scheme (SFIS) has been replaced with Service Exports from India
Scheme (SEIS). SEIS shall apply to Service Providers located in India instead of Indian
Service Providers. Thus SEIS provides for rewards to all Service providers of notified
services, who are providing services from India, regardless of the constitution or profile of
the service provider. The list of services and the rates of rewards under SEIS are at
Annexure-2.
The rate of reward under SEIS would be based on net foreign exchange earned. The reward
issued as duty credit scrip, would no longer be with actual user condition and will no longer
be restricted to usage for specified types of goods but be freely transferable and usable for
all types of goods and service tax debits on procurement of services / goods. Debits would
be eligible for CENVAT credit or drawback.

3. Status Holders
Business leaders who have excelled in international trade and have successfully contributed
to countrys foreign trade are proposed to be recognized as Status Holders and given special
treatment and privileges to facilitate their trade transactions, in order to reduce their
transaction costs and time.
The nomenclature of Export House, Star Export House, Trading House, Star Trading House,
Premier Trading House certificate has been changed to One, Two, Three, Four, Five Star
Export House.
4 BOOST TO "MAKE IN INDIA"
Reduced Export Obligation (EO) for domestic procurement under EPCG scheme:
Specific Export Obligation under EPCG scheme, in case capital goods are procured from
indigenous manufacturers, which is currently 90% of the normal export obligation (6 times at
the duty saved amount) has been reduced to 75%, in order to promote domestic capital goods
manufacturing industry. Higher level of rewards under MEIS for export items with high
domestic content and value addition. It is proposed to give higher level of rewards to
products with high domestic content and value addition, as compared to products with high
import content and less value addition.
5. Online filing of documents/ applications and Paperless trade in 24x7 environment:
DGFT already provides facility of Online filing of various applications under FTP by the
exporters/importers. However, certain documents like Certificates issued by Chartered
Accountants/ Company Secretary / Cost Accountant etc. have to be filed in physical forms
only. In order to move further towards paperless processing of reward schemes, it has been
decided to develop an online procedure to upload digitally signed documents by Chartered
Accountant / Company Secretary / Cost Accountant. In the new system, it will be possible to
upload online documents like annexure attached, which are at present signed by these
signatories and submitted physically.

THE FOREIGN TRADE POLICY 2015-2020

STANDARD OPERATING PROCEDURE (SOP)

For Merchandise Exports from India Scheme (MEIS): Step1st: At first download annexure of shipping bill from SAP - System Application
& Products

SAP is basically designed to create a common centralized database for all the applications
running in all the departments in an organization. The kind of application you can manage
includes Account & finance
Excise
Logistics
ReportingHR etc.

ClickLog onin Sap screen to open user login window.

Select company name like textile wil

After that we get a new screen :

For example:
Clint No.-000
User - ABCD
Password - ******
And logon language ENG

After fill login id and password we get a new screen which is

Type T CODE (Transaction code ) in search box. The transaction code depends up
department.

Fill box of sales operation

Distribution channel
Plant
Billing created on
Billing document

Screen shot 04
NOTE: some internal information which require in this screen is not same for all types of
department. It is depend on the nature of work and department

After fill this page of SAP we get a new screen which is:

Enter the PSI no. (Shipping bill invoice no.)Copy to excel sheet previous annexure and after
that we get:
Click copy (f8)
Than open a shipping bill annexure data file which is:

Click list icon in title bar

select export
After all these process we have to select following data from SAP:Now we get various content of data like,
Shipping bill no.
Date
Shipment date
Leo date
Net weight
Fob value
Shipping bill invoice no.
Fob in FC foreign exchange currency code, value in shipping bill

spread sheet file

Now create a local file after that change in spread sheet by using this way.
After that we get a new sap window which is:

save as with file name

Now we have a complete spread sheet file of shipping bill annexure. After that we will check
the annexure with the help of shipping bill which is given by custom office.
Screen shot of shipping bill:

LEO Date Net wt

Shipping bill no.

Date port name

INR&USDN ammount
Fob value, invoice no.INR&USDN value
Freight, insurance commission

These all content of shipping bill will be check in annexure which was create in excel sheet.
Like this:

E-come no.

Shipment Date fill from the lastpage of the bill

Check the shipping bill no., date, shipment date, Leo(let export date),net wt for kgs, FOB
value, invoice no., foreign exchange code, value in shipping bill, value in e BRC, difference
etc
After that we follow the online process from DGFT (Directorate general of foreign trade) for
create CLAIM.

First of all, we go to DGFT website(www.dgft.ac.in) and choose online application to DGFT.

Click online application to DGFTselect online ECOM application

After that select Merchandise Exports from India Scheme (MEIS) from electronic filling of
application page (DGFT).

Select Merchandise Exports from India Scheme (MEIS)

After select Merchandise Exports from India Scheme (MEIS) open a new exporter login
window. It has required to fill branch IEC code and password.

Now open ;

Go to administration

select shipping bill repository

After that open a new window for fill shipping bill details record, in this box there are many
types of data required like;
Shipping bill no.
Port name
Shipping bill date
Leo date
Export date
FOB value etc.

STEP:Fill shipping bill no.

Country of export
Shipping bill export date
Click Add

Port code

clickFind

Port of export

LET export date

Bill date

Bill no.
FOB value in Rs

After click add the all detail of data update in online shipping bill detail from government
website. After that we have to click and fill export item.

Step of fill export item detail:

Shipping bill no.
Invoice no.
codeITC(HS)codeIEC no.

invoice seriol no.

Iteam description from annexure or shipping bill

fob valuein foreign currency
currency code

scheme name or

qty or net wt
Click Add

fob value in Rs

After update export item close the product detail window than click Attach 3rd party BRC
button in shipping bill detail box.

BRC detail
3party BRC

Click Attach

Fill this box

Freight
Insurance
Commision
from shipping bill annexure, after that select Update and Close. Now we create product
details. Again we will go to Merchandise Exports from India Scheme (MEIS) pages.

Click on file option and select create ECOM no.

Copy to here eCOM reference No. and paste on shipping bill excel sheet.
Press OK

Now the next procedure is this:

AddDate of exportEDI
Step:EDI port name or code

port code

Exporter status

SB Repository
Exporter status

Export licensing year based on date of export

Click Add After that we will select SB Repository
Now open a new screen:

Click OK
Bill and BRC

list of available shipping

and BRC

list of selected shipping bill

Step:Select all shipping bill no. Fromlist of available shipping Bill and BRC

When all shipping bill no. in selected list than

Click OK

Match that all Shipping Bills which are there in MEIS Claim are attached in ECOMM by
clicking in the Shipping Bill option button.

1.3 REVIEW OF LITERATURE:

Goldberg & Knetter (1997) and Goldberg & Hellerstein (2008) review the micro-foundations
of ERPT from the perspective of import prices. Exporters set prices in their domestic
currency (the producer currency) and those prices depend on costs and the firms' mark-up
(because firms are imperfectly competitive they are able to price above marginal cost). The
exchange rate at time t enters the equation for the export price denominated in the local
(importer's) currency. ERPT is defined as "the percentage change in local currency import
prices resulting from a one percent change in the exchange rate between the exporting and
importing countries" (Goldberg & Knetter 1997, p.1248).
Complete ERPT occurs when the variation in the local currency price of the good mirrors the
change in the exchange rate. Incomplete pass-through occurs when a change in a bilateral
exchange rate is not completely transmitted into the local currency price of a traded good.
Symmetrically, incomplete pass-through implies that some part of the exchange rate
movement is absorbed by the exporter, through variation in the received unit price, while
complete pass-through implies that the exporter does not absorb any of the exchange rate
variation. Whether this has a positive or negative effect on exporters' returns will depend on
the direction of the exchange rate change, as well as any impact on the volume of exports.
There are several theoretical explanations for incomplete pass-through, at least in the short
run. Some of these reasons - pricing-to-market, menu costs, and implicit or explicit contracts
with offshore customers - have direct implications for the profitability of the exporting firm.
Others imply that the pressure to adjust prices in response to exchange rate fluctuations may
be muted for some firms, for example through explicit exchange rate hedging or
compensatory changes in the cost of imported inputs. A final set of factors suggest that
traditional ERPT measures based on aggregate data may be biased due to an inability to
identify changes in the composition or quality of the exported goods over time. In this section
we briefly review the empirical literature on ERPT and pricing-to-market, with a focus on
firm- and product-level studies.

1.4 TOOLS FOR ANALYSIS DATA Microsoft Excel& SAP was used all through the
project for the financial activities of data and to create graphs.

1.5 OBJECTIVES AND SCOPE OF THE STUDY:

Analyze the current situation of demand and supply of fresh organic products in the
main importing countries and selected producing countries;
Provide estimates for further organic market development in the short to medium
term;
Identify market opportunities for organic horticultural products in developed and
developing countries;
Identify the constraints to be overcome by developing countries in order to
successfully produce and export organic horticultural products; and

 Define strategy options for the development of the export organic horticultural sector.
1.6 LIMITATION OF THE STUDY
The time available to carry out this study was limited to 45 days.
The period covered under this study is many years.
The analysis is based on secondary data like annual reports, companys shipping bill,
document of export.
The scope of the study is limited to that extent
They had not time to the companys people

CHAPTER: 5
FINDING, RECOMMENDATION, AND LEARNING FROM
STUDY

Findings
In WIL the coordination among the various sections of the Finance & Accounts department is
very nice.
During the study I find that there is no huge variation in budget decided and the actual one.

Recommendation
Operating and administration expenses decries from last five year but Company still need to
control on it. That is one of the reason for decreasing Net profit of welspun india ltd.
Welspun india ltd. should take the advantage of cheap domestic Labour and demand in
foreign market are all paths towards profitability.
Employees are over burden with work due to shortage of staff in Welspun So one of the
suggestions is to increase the staff to reduce the work load of employees in account and
costing department.
There is no extra pay of doing overtime due to overburden work so sometimes they are not
motivate from doing overtime.
Welspun gives 10 paid holidays, but here at Anjar plant 8 are provided. Hence all the policies
should be fair for the entire group.

LEARNING FROM STUDY

From the duration of 60 days of this project I learned a lot of thing about finance in Practical
world of finance. It was a great experience in my life. Before doing this project I had
theoretical knowledge about financial statement, ratio analysis but I didnt know Haw it is

work in practical. After completing this project I got practical knowledge about financial
statement.

SCOPE FOR FUTERE WORK, CONCLUSION

SCOPE FOR FUTERE WORK
In this project I have done the financial analysis of the company so the scope of these study
is that this report can be used as a financial statement of the company and also This report
shows different financial aspects of the welspun india Limited. This report also contains the
information related the various process of making tarry towel at welspun india ltd.
Conclusion
Welspun India ltd is the remarkable by their products. Employees and their Customer. As
Welspun plant is widely spread in 2800 acres at Anjar (Kutch). This is not only proud for
them but also for every individual resident of the Kutch region. Welspun is providing
comfortable and prestigious product to their customer. It is serving not to only domestic
people but also their Exporter. And also change the scenario of the Export market. The
revenue generated during the year is more than the previous year. Company has earned more
profit operating expenses also goes down compared to previous four years. So the Net profit
increased compare to previous year. The overall performance of the Welspun India ltd is
remarkable.

BIBILIOGRAPHI
E-books:
Websites
www.welspun.com
www.hometextiletoday.com
www.texmin.nic.in
www.dgft.ac.in

Annexure:
ANF -3A
Application Form for Merchandise Exports from India Scheme (MEIS)
(Kindly read Paras 3.03 to 3.06 of FTP and Para 3.01 to 3.03 of HBP and other common
procedural features applicable to MEIS before filing application)
(Please note that separate applications are required to be filed for separate years (AM15,
AM16 etc.) based on Let Export date. Shipments from EDI Ports and Non-EDI Ports cannot
be clubbed in one application. Application shall be filed for each EDI port and each Non EDI
port separately.
Part A
1.

Applicant Details:

IEC No.

Ii

Name

Iii

Address

Iv

Telephone No

Email ID

Part B
2. Application Details:
(i) Export Licensing Year (pl. specify the year in which export has been made, based on Let export
date (Para 9.12 of HBP):
(ii) Date of filing of Application:
(iii) Port of Export for this Application:
Note: Applicant to select/feed the details of one shipping bill at a time .A maximum of 50 shipping bills
can be filed in one application
3.Details of Export :
Shipping Bill Details and Other details
Sl
No

Shi Dat Port Let

ppin e of Cod exp
g
Shi
e
ort
Bill/ ppin
date
Airw
g
ay Bill/
Bill Airw

ITC
(HS
)
cod
e

Pro Country
Prod
duc Name and uct
t
Relevant
Sl
Des Sl No. of
No.
crip Appendix
of
tion 3B( Part Appe
as
ndix

Realized FOB
value of
Exports or
FOB value as
given in S/B,
whichever is
less (in free

Date of
realization

Nu
mbe
r

(1)

Exchange
Rate

(13)

(2)

(3)

FOB in
Rs.ie
10x13

(14)

4.

ay
Bill

per
Sip
pin
g
Bill

(4)

(5)

Rate of
Entitlement
as per
Appendix
3B (Part 2)
(%)

(6)

(7)

Entitlement
Amount
(in Rs.)

(15)

1)

(8)

3B
(Part
2)

(9)

Late Cut %
if any

foreign
exchange)

Valu
e

Curre
ncy
Code

(10)

(11)

Late cut
Amount(in
Rs.)

(16)
(17)
18
(16) = (14)
18=(16X17
X(15)
Number of Split Certificates required (in multiples of Rs 5 lakhs each):

(12)

Entitlement
after Late
Cut
(in Rs.)

19
19=16-18

5.
Port of Registration for the purpose of imports.(The port of registration shall be the port from
which exports have taken place)
6.

DECLARATION / UNDERTAKING

I/We hereby certify that :

A.the entity for whom the application has been made have not been penalized under any of the
following Acts (as amended from time to time):
(i) The Customs Act, 1962,
(ii) The Central Excise Act 1944,
(iii) Foreign Trade (Development & Regulation) Act 1992,
(iv) The Foreign Exchange Management Act,1999; and
(v) The Conservation of Foreign Exchange, Prevention of Smuggling Activities Act, 1974
B.none of the Directors / Partners / Proprietor / Karta / Trustees of the company /firm /HUF/Trust, (as
the case may be), is/are a Director(s) / Partner(s) / Proprietor / Karta / Trustee in any other
Company/ firm / entity which is on the Denied Entity List (DEL) of DGFT;
C.neither the Registered Office of the company / Head Office of the firm / nor any of its Branch
Office(s)/ Unit(s)/ Division(s) has been declared a defaulter and has otherwise been made ineligible
for undertaking import / export under any of the provisions of the Policy;

3.

4
5
6

7
8
9

I/We undertake to abide by the provisions of the Foreign Trade (Development and Regulation) Act,
1992, as amended from time to time, the Rules and Orders framed there under, the Foreign Trade
Policy, the Handbook of Procedures
I/We hereby certify that that particulars and statements made in this application are true and correct and
nothing has been concealed or held there from. I/We fully understand that any information furnished in
the application if found incorrect or false will render me/us liable for any penal action or other
consequences as may be prescribed in law or otherwise warranted.
I hereby certify that I am authorized to verify and sign this declaration as per Paragraph 9.06 of the
Foreign Trade Policy.
I hereby declare that no benefit under MEIS, was availed (or applied for) previously against
Shipping Bills currently included in this application.
I hereby declare that in terms of Para 3.17 of FTP, this application does not contain any exports in
contravention to this provision. I further declare that these goods have actually been exported out
of India
I hereby declare that the Exported Product/goods and markets are covered under Appendix 3B and
the exports, for which this application is being filed, are made on or after the respective admissible date
of export, as indicated in relevant Appendix
I hereby declare that export product for which the duty credit scrip reward is being claimed does
not contain any product which islisted as ineligible export categories / sectors in per Para 3.06 of
FTP.
I fully understand that RA or any other agency, at any time, may ask me to provide documents on the
basis of whichrewards was granted and which are not submitted in original .I undertake to provide any
such details/documents without any delay on my part. In case I am not able to provide such
documentary evidence, I undertake to refund the amount of scrip in cash with interest at the rate
prescribed under section 28AA of Customs Act, 1962, from the date of such scrip as prescribed in FTP
and HBP and shall also be liable for penal action as per FTDR act.

1. Tick the box as acceptance of declaration/ undertaking and fill in the details below.
Signature of the Applicant
Name
Designation
Official
Address

Telephone No.

Fax No.
Email

Flat/Plot/Block No
Street/Area/Locality
City
State
PIN Code
Country
Code ----- Area Code ------ Phone number
-----

Place:
Date: