an sh um a an

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PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH,

INDORE

Summer Training Project Report

UNIVERSAL CABLES LIMITED, SATNA (M.P)

Submitted To: Submitted By:

Prof. Nishant Joshi Anshumaan Bakshi

Faculty, P.I.M.R BFT Vth SEM

BBA fr.tr.


2/76

ACKNOWLEDGEMENT

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

Summer training in the MBA (Foreign Trade) Integrated curriculum

I have great pleasure to express my deep sense of Gratitude to Prof. Nishant Joshi, Faculty P.I.M.R

and Indore for his excellent guidance and interest in completion of my summer training report.

I am very much indebted to Mr. Sudhir Jain of UNIVERSAL CABLES LTD. For granting me the

opportunity to do the summer training under their supervision

Place: SATNA (M.P)

Date:

Anshumaan Bakshi


3/76

CERTIFICATE

This is to certify that Anshumaan Bakshi student ofBFT 5th SEM Programme has completed

his training from 10th june 2010 to 15th July

2010 and prepared this Report under my Guidance.

As per my knowledge his work is actual and genuine

TITLE OF THE PROJECT

ANALYSIS ON DOCUMENTATION

FACULTY GUIDE

PROF. Nishant Joshi


4/76

INDEX

S.N - Particulars

1. Introduction Company profile M.P Birla group Vision and values Recognitions Working Segments Key objectives Range of products

2. Organizational structure3. Manufacturing process4. Clients

Domestic Overseas (Exports)

5. Marketing6. Financial Performance7. Export Process8. Export Documentation

Documents used by the company

Documents minimum required

Logistics functions

Problems in documentation


5/76

9. SWOT Analysis10. Conclusions11. Suggestions12. Implications of the study13. Bibliography14. ANNEXURE


6/76

INRTODUCTION


7/76

Company profile :-

A World of Excellence

The universal cables limited ware founded with a dream and a determination to bring to India

world class products and services for cables , capacitors which was a most neglected area till

date but the most important and basic area of any engineering industry .

Since its inception , unistar has worked relentlessly towards its goal and today its almost 60 %

revenues coming from cables segment and small scale customers , we have expanded our

vision to being a supplier of quality proved engineering products.

Unistar , through its vision and imagination strengthened by its continues pursuit for excellence

has brought its umbrella .

All of us at unistar have made commitment to our present and future customers regarding the

quality of our products and customer support. We encourage our customers to expect a world

of excellencefrom uswe will deliver.

.


8/76

M.P Birla group

M.P Birla Group have invested over 2000 croresin Madhya Pradesh state of India. Theinvestment is in following segments:

1. Cement2. Cables3. Electronics and communication4. FMCG5. Hospitality6. Malls etc.

Universal Cables Limited is a member company ofM.P. Birla Group of industries, India

M.P Birla Group of companies:1) Birla Corp. Ltd.

2) Universal Cables Ltd.

3) Vindhya Telelinks Ltd.

4) Birla Ericsson Optical Ltd.

5) Hindustan Gum & Chemicals Ltd.

6) Universal Telelinks Ltd.

7) Birla Financial Corporation Ltd.8) Express Diary Co. Ltd

9) Universal IND (USSR) Electrical Ltd

10) Birla Planetarium

11) Bombay Hospital & Medical Research Center

12) Belle Vue Clinic

13) Mazbat Tea Estate Ltd.

14) Assam Jute Supply Co. Ltd.

15) Seva Nidhi Trust

16) Punjab Produce & Trading Co. Pvt. Ltd.

17) Baroda Agents & Trading Co. Pvt. Ltd.

18) Gwalior Webbing Co. Ltd.

19) East India Investment Co. Pvt. Ltd.

20) Varunendra Trading & Agents Pvt. Ltd
http://www.birlacorporation.com/http://www.universalcablesltd.com/http://www.vtlrewa.com/http://www.birlaericsson.com/http://www.birlaericsson.com/http://www.vtlrewa.com/http://www.universalcablesltd.com/http://www.birlacorporation.com/


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VISION & VALUES

VISION

To deliver Quality and Prosperity

To achieve a turnover of Rs. 10 mn by 2010

To consolidate market leadership position by achieving 20% market share in cable

segment.

VALUES

Customer Orientation

Providing products and services of the highest standards to the internal members and

external customers

Commitment

Be dedicated to our responsibilities (towards our job, organization, and customer) with

honesty and confidence.

Teamwork

Cooperation and trust with appropriate participation of all concerned to achieve the

desired objectives.

Innovation

Create, implement and replicate new ideas to continuously realize improvements.

Quality first

Practice process and orientation and excellence in all our actions to create new

benchmarks.


10/76

RECOGNITIONS :

The company has received recognition from various independent authorities as under:

1. Quality system accreditation as per IS/ISO-9001 from Bureau of Indian Standards.

2. Environmental Management Systems as per IS/ISO 14001 certified by Bureau of IndianStandards.

3. Accreditation of our R&D Laboratory by Department of Scientificand Industrial Research, Govt. of India.

4. Representation in CIGRE, Paris for development of extra-high voltage cable technology.

5. Approval of Quality System by South African Bureau of Standard(SABS)

6. Certification of our product by Tariff Advisory Committee for equitable rate structureand risk in insurance sector.

7. Approved under in-process quality control system by export inspection council, Govt. ofIndia.

8. Representation in technical committee of Bureau of Indian Standards for makingspecifications and R&D work related with cables and capacitors.

9. Awarded Export Excellence certificate during 1989-90 for achieving highest exportperformance.

10.National safety awards for longest accident free period.11.Approval from BARC for N.P.P. Cables


11/76

Working segments :-

Universal Cables Limited was founded in 1962 and is based in Satna (M.P), manufactures

cables and capacitors in India. The company operates in three segments:

1. Power Cables2. Capacitors3. Telephone Cables.

The Power Cables segment offers PILC cables, XLPE cables, flours-plastic cables, FRLSH cables, rubber cables, winding wires and flat cables, PVC cables, and

electrometric cables.

The Capacitors segment offers mixed dielectric and PP power capacitors.

The Telephone Cables segment offers jelly filled telephone cables and optical fibercables. The company sells its products directly in India and through agencies

internationally.


12/76

KEY OBJECTIVES

Expand its manufacturing capacities through expansion. Expand its geographic reach and enter new markets. Increase its brand power and obtain better pricing power. Increase market share from the current 4.5% to ~ 20% in the cable segment (Rs 6 mn). To increase proportion of retail packs. To setup power plants and manufacturing facilities To lead in improving yields of semimetals.


13/76

UNISTAR RANGE OF PRODUCTS

Sr.

No.

Products Specification Application

A. RODS

Aluminum redraw rods IS-5484 Cables and over head

Conductors

B. BARE AND

COVERED OVER-

HEAD CONDUCTORS

1. Round

Copper/Cadmium

Copper Centenary

wire.

BS-125 Railway and Electric

Traction Conductors.

2. Earth Conductors-

Copper

BS-6360 General earth

Conductors.

3. Over-head Conductors

with

Aluminium/AluminiumAlloy AAC, ACSR,

AAAC & ACAR.

IS-398

BS-215

Over-head bulk power

transmission lines.

4. Insulated over-head

Conductors of Copper

and Aluminum with

PVC.covering

BS-6485 Over-head distribution

line conductor for

corrosive atmosphere.

5. Cadmium-Copper

over-head Conductors

with PVC Insulation

CIL/P/125B Over-head distribution

line conductor for

corrosive atmosphere.

6. Aerial Bunched

Conductors

(ABC).

REC-32/84 &

IEC-502

Over-head power

transmission and

distribution.


14/76

C. PILC CABLES

1. Power Cables. IS-692

VDE 0255

BS-6480

General Power

transmission and

distribution network.

2. Pilot and

Communication

Cables.

BS-6480

BEBS-C-5

Cables for auxilliary

and communication

circuits.

3. Submarine Cables. BS-6480 Under-water Power

Transmission.

4. HV DC Cables up to

and including 100 KV.

Gen to

IS-692

Electrostatic

Precipitators.


15/76

D. XLPE CABLES

1. 1 KV Power Cables (1.1

KV).

IS-7098

Part-I

IEC-502

1.1 KV Power

distribution and

Control Circuits.

2.(a) HV Power Cables from

3.3 KV to 33 KV.

IS-7098

Part-II

IEC-502

Medium and High

Voltage

Power transmission &

Distribution.

(b) EHV Power Cablesabove 33 KV & up to

145 KV.

IS-7098

Part-III

IEC-502

IEC-840

SS4241417

AEIC CS7

Medium and HighVoltage Power

transmission &

distribution.

3. Submarine Cables. IS-7098

(Part I & II)

Under water Power

Transmission.

4. Radiation resistant

power

Cables up to 11 KV.

IS-7098

Part I & II

Power and control

cables

Used inside reactor

building.


16/76

E. PVC CABLES

1. Power and Control

Cables

up to 11 KV.

IS-1554

Part I & II

General power

distribution &

Control purposes.

2. Mining Cables. NCB-UK

IS-1554

Part I & II

Power distribution

Cables

Inside coal mines.

3. Wiring and Service

Cables

including flexible cords

Weather proof service

cables.

IS-694

BS-6004

BS-6500

General purpose

flexible and fixed type

wiring cables with PVCand Rubber insulation.

4. Air field lighting cables. Defense

specifications.

Run-way illumination.

5. Railway Signaling

Cables.

IRS-S-35

IRS-S-63

Railway Signaling

circuits for

use in Electric traction

area

6. Flexible wiring cables

for

Coaches.

ICF/Elect/807

RDSO E-14/01

(III)

Power and Control

Cables for

Coaches.

7. Wiring Cables for

vehicles.

IS-2465

BS-6862

Automobile wiring

cables with

PVC/Rubber

insulation.


17/76

8. Equipment wires

screened /

unscreened and

microphone

Wires.

DEF-61-12

DEF-10

Communication

equipment

wiring, especially for

Defense

9. Power and Control

Cables with better

flame resistance with

low smoke and toxicity

(FRLS and Survival

type Cables).

IS-1554 Part I

& II

IS-7098 Part I

& II

IS-9968 Part I

IEC-502

Cables for Power

generating

stations and other

hazardous

Industrial installations.

10. Instrumentation

Cables.

IS-1554 Part I

IS-9968 Part I

IEC-502

BS-5308

Cables for sensitive

solid state

devices in electronic

control

system i.e. Computer,

etc.

11. Winding wires for

submersible pump

motors.

IS-8783, NSW Submersible motor

winding.


18/76

F. RUBBER CABLES

1.(a) Natural rubber and

synthetic rubber

insulated

sheathed flexible/

non-flexible cables for

power distribution

Lighting and control

etc.

up to 11 KV (UE).

IS-9968

(Part I & II)

IEC-502

General wiring, control

and

Power distribution

flexible / trailing use for

mine etc. with special

properties thermal

endurance, oil

resistance and Flame

Retardant combined

with higher mechanical

strength.

(b) Welding Cables with

Aluminum & Copper

Conductors.

IS-9857 For use in electric

welding.

2. Ship wiring cables up to

1000 V.

DGS-211,

DGS-212, ABS,

LRS ,DNV, BV,

[EC-92-3, IRS

NES-526

And BS-6883

Power and Control in

ships.

3. High temperature

Silicone

Rubber insulated

Cables for

the use up to 200O

C.

BS-6007

IS-9968

(Part I & II)

and BS-6195

DGS-211

NES-526

Used in location of high

Ambient temperature.


19/76

5. Power Cables and

conductors

for rolling stock.

RDSO-E-14/01

(I) & (II)

Cables for Electric

locomotives, diesel

locomotives & Electric

multiple units.

6. PVC and Elastomeric

Lift

Cables with and

without

steel Hauser up to 1100

V. (Round as well as

flat lift cables)

IS-4289

OTIS and

Customer

Specification

Power and Control use

in

Elevators and Lifts.

7.(a) Aircraft ignition and

wiring

Cables UNINYVIN,

UNIPREN,

UNITERSIL and

UNI-PLUG SHEATH

Cables.

BSG-177

BS-2E-21

BSG-189

EL-1 895

Aircraft wiring and

ignition

Circuits.

(b) Radar and Data-

Transmission

Cables.

Defense

Specifications

Cables for radar and

Anti-Aircraft Guns.

8. High frequency Coaxial

Cables.

BS-2316

MILC-1 7E

High frequency

communication

Circuits and Cable TV

use.


20/76

9. Fluoric-plastic Cables

and

Wires.

JSS and MIL

Specifications

Aircraft wiring, High

Temp.

Equipment wires,

Cables for Oil

rigs, computers and

electronic

Exchanges.

10. Electro Logging cables. ONGC Cables for Oil

exploration

Equipments.


21/76

CAPACITORS FOR AC SYSTEM

1 Power Factorimprovement

capacitors

(a) High voltage All-

Polypropylene

dielectric capacitors

impregnated with Non-

PCB

Oil Unit rating - 50 to

400 KVAR

Unit voltage - 3.3 to

13.5 KV

Bank rating - By

assembly of

basic units as per

required KVAR

Bank voltage - 3.3 KV

to 132 KV.

IS-2834 Power Factor

improvement in

industries (individual)

compensation of motor,

group

compensation) EHV &

HV

sub-stations, large arc

Furnaces (Capacitor

for static

VAR control, filter

circuit and

group compensation)

net-work

(Pole mounted

capacitor).


22/76

(b) Low and medium

voltage self healing low

loss metallized

polypropylene

capacitors.

(MPP OIL COOLED)

Unit rating - 1 to 50

KVAR Unit voltage -

380 to 440 V AC Bank

rating - By assembly of

basic units as perrequired KVAR Bank

voltage - 380 to 440 V

AC. ISI marked.

IS-2834 Power factor

improvement in

industrial low voltage

load (with or without

automatic control).

(c) Low and medium

voltage 3 phase 50 Hz

capacitor made from

All-Polypropylene


PCB oil Unit rating - 1

to 50 KVAR Unit

voltage - up to 600 V

AC Bank rating - By

assembly of basic units

as per

Required KVAR.

IS-2834 Power factor

improvement in

industrial low voltage

load (with or without

automatic control).


23/76

2. DC Capacitors Special application like

impulse generators

filter circuits.

3. Surge Capacitors

Surge capacitors made

from All-Polypropylene


PCB Oil for 3.3, 6.6 and

11 KV system.

Surge protection of

Motors

Transformers, etc.
http://www.universalcablesltd.com/PRODUCT/rangeofproduct/capacitors/surgecapacitors/main.htmhttp://www.universalcablesltd.com/PRODUCT/rangeofproduct/capacitors/surgecapacitors/main.htmhttp://www.universalcablesltd.com/PRODUCT/rangeofproduct/capacitors/surgecapacitors/main.htm


24/76

Organization chart :-


25/76

Manufacturing process :-


26/76

Clients :- (Domestic)

Electricity Boards and Other Power Cos. Transmission Corporation of A.P. Ltd.

A.E.Co. Ltd., Ahmadabad Electric Co. Ltd.

BSES Ltd. , BEST Mumbai.

CESC Ltd.

Delhi Vidyut Board

Gujarat Electricity Board.

Gujarat Industries Power Co. Ltd.

Haryana State Electricity Board. Karnataka Power Transmission Corporation.

Kerla State Electric Board.

Maharashtra State Electricity Board.

Madhya Pradesh Electricity Board.

National Thermal Power Corporation Ltd

Orissa State Electricity Board.


27/76

Punjab State Electricity Board.

Surat Electricity Co. Ltd.

Tamil Nadu Electricity Board.

Tata Power Co. Ltd.

Karnataka Power Corporation Ltd.

1. Mining

Bharat Coking Coal Ltd.

Central Coalfields Ltd.

Eastern Coalfields Ltd.

Northern Coalfields Ltd. Neyveli Lignite Corporation Ltd.

Singareni Collieries Ltd.

South-Eastern Coalfields Ltd.

Western Coalfields Ltd.


28/76

2. Steel plants

Steel Authority of India Ltd.

Tata Iron & Steel Co. Ltd.

Malvika Steels Ltd.

3. Refineries & Petrochemicals

Andhra Petrochemicals Ltd.

Bharat Petroleum Corporation Ltd.

Cochin Refineries Ltd., Cochin

Hindustan Petroleum Corp. Ltd.

Haldia Petro-chemicals Ltd.

Indian Petrochemicals Corp. Ltd.

Indian Oil Corporation Ltd.

Mangalore Refinery & Petrochemicals Ltd.

Reliance Petroleum Ltd., Jamnagar

Southern Petrochemicals Industries Corp. Ltd.5. Railways


29/76

Chittaranjan Locomotive Works.

Diesel Locomotive Works.

Diesel Component Works.

Integral Coach Factory.

Rail Coach Factory.

All Zonal Railways

Calcutta Metro & Delhi Metro.6. Atomic Energy

Bhabha Atomic Research Centre. Nuclear Power Corporation Fertilizers Chambal Fertilizers and Chemicals Ltd. Fertilizers Corp. Of India Gujarat Narmada Valley Fertilizer Co. Ltd. Indian Farmers and Fertilizer Co. Ltd Indo-Gulf Fertilizers & Chemicals Corp. Ltd. Nagarjuna Fertilizers Corp. Ltd. Paradeep Phosphates Ltd. Zuari Agro Chemicals

7. Port Trust & Ship Building Industry


30/76

Calcutta Port Trust

(Haldia Dock Complex)

Mangalore Port Trust

Cochin Naval Dockyard

Cochin Port Trust

Garden Reach Ship builders & Engineers Ltd.

Kandla Port Trust Madras Port Trust Mazagaon Dock Ltd. Mumbai Port Trust Vizag Port Trust Paradeep Port Trust Goa Ship Yard

8. Heavy Industries

Bharat Earth Movers Ltd. Bharat Heavy Electricals Ltd.

Bharat Electronics Ltd.


31/76

Metallurgical & Engineering Consultants Ltd.

Heavy Engineering Corp.

Bharat Heavy Plates and Vessel's Ltd.9. Special Aircraft Industry

Hindustan Aeronautics Ltd.

Indian Space Research Organization10. Other Industries

ABB Ltd.

Birla Copper Ltd.

Larsen & Toubro Ltd.

National Aluminum Co. Ltd.

Reliance Industries Ltd.

Siemens Ltd.

Tata Chemicals Ltd.

Hindustan Industries Ltd.

& various other industries.


32/76

CAPACITORS :-

1. Electricity Boards & Other Power Cos

A.E. Co. Ltd., Ahmadabad B.S.E.S. Ltd., Mumbai

BEST, Mumbai

CESC Ltd., Calcutta

SECO, Surat

Tata Electric., Mumbai

Various State Electricity Boards2. Steel Plants

Steel Authority of India Ltd.

Tata Iron & Steel Co. Ltd.

Ispat Alloy,

Jindal Steel,

Essar Steel Co.

Mukund Iron & Steel Co.


33/76

3. Refineries & petrochemicals

Bharat Petroleum Corporation Ltd.

Hindustan Petroleum Corp. Ltd.

Southern Petrochemicals Industries Corp. Ltd.

4. Paper Industries

Tamil Nadu paper Century Paper

J.K.Corp.5. Fertilizers

Grasim

GSFC

IFFCo.

Indo-Gulf Fertilizers & Chemicals Corp. Ltd.

Nagarjuna Fertilizers Corp. Ltd.


34/76

6. Cement Industries

Century Cement

Dalmia Cement,

India Cement

Madras Cement

Prism Cement

Acc

Jaiprakash Industries

7. Aluminum Industries

Hindalco

Balco


35/76

EXPORTS :-

SL. No. Name of the Party Country1 Ministry of Electricity & Water Kuwait

2 Kuwait Oil Co. Kuwait

3 Shroff (Malaya) Ltd. Singapore

4 Crown Agents London

5 Peoples Oil Industries Rangoon Burma

6 Tanzania Elec. Supply Company Tanzania

7 ME Wright & Co. A/c.Dubai El. Dubai

8 Abdulla Contracting & Trading Kuwait

9 Indothai Synthetics Ltd Bangkok

10 Dhahran Elec. Power Co Saudi Arabia

11 Nepal Electricity Corp. Nepal

12 Public Utility Board Singapore

13 Air Techno Corp. Bombay (for Libya)

14 Raznoimport Moscow

15 Govt. of Bhutan Bhutan

16 Indo-Phil Textile Mills Philippines

17 Ministry of Electricity & Water Dubai

18 VVO Sovbunker USSR

19 VTF Sovkabel of NPO VNIIKP USSR

20 Federal Power Telecom SDN BHD For

BEB,Malaysia


36/76

21 General Dept. for Co-Opn.of the min.of

Foreign Economic Relations of the USSR Moscow, USSR.

22 Central Electricity Board Mauritius

23 Ceylon Electricity Board Sri Lanka

24 Durban Electricity South Africa

25 Cap town Electricity South Africa


37/76

INTRODUCTION TO MARKETING

Marketing is the process of discovering and translating consumers wants into

product And service specification and the in turn ,helping to make it possible for

more and more consumers to enjoy more and more of these products and

services.

HARRY Z HANSEN

OBJECTIVES OF MARKETING

The product design to meet the needs of prospects or likely consumers. The price fixed is right in terms of the customer groups for whom

The product are designed

Proper rates promotion or selling efforts is provided through adequatePersonal selling or efforts of the sales farce, advertising and sells

Promotion campaigns

Physical distribution is appropriately arranged in terms of selection ofDistribution channel as well as arrangement of appropriate ware housing

And transportation facilities to make the product ready available at minimum

Cost to the consumers.


38/76

Marketing Network

Address FaxTelephone

TerritoryOffice Residence

SATNA

(Regd.office & Works)

P.O Birla Vikas

Satna(MP)-485 005.

Mr. M. Gandhi, Mr. A. Bose

[email protected]

(STD:

07672)

257131,257129

257121

to

257127

Thro'

Board:

257121-7

Overall

ALLAHABAD

B-30, Ekanki Kunj

Housing Scheme,

24, Muir road,

Allahabad-211001

Mr. M.Unnikrishnan

[email protected]

(STD:0532)

2624390

2622232

2623646

2623358

2622249

Uttar

Pradesh

BANGALORE

No. 287, R.M.V. Extension,

15th Main Road,

Near Nagasena School,

Banglore-560 080

Mr. Anoop Nayar

[email protected]

(STD:080)

3615425

3619981

3612484

3612556

Karnataka,

Kerala

&Goa

BARODA:

Satyam,1st Floor

Fatehgunj

(STD:0265)

2793128

2791794

2792984

2327866

2795642Gujarat
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


39/76

Baroda-390 002.

Mr. N.D. Karekar

[email protected]:

57,Malviya Nagar

Bhopal-462 001

Mr. R.C.Chawla

[email protected]

(STD:0755)

2554806

2551183

5220313

2551183

5220313

Madhya

Pradesh

CHENNAI:

No.76, Nelson Minicamp Road, 1st

Floor Aminjikarai,

Chennai-600 006

Mr.P.S.Ramachandran

[email protected]

(STD:044)

23746625

23746623

23746624

23746764

(Dir)

(M)

9841036839

26289677

26203698

Tamil Nadu,

Pondicherry

HYDERABAD:

Plot No. 839/E

Road No. 42,

Jubilee Hills,

Hyderabad-500 033

Mr. R.K. Hingorani

[email protected]

(STD:040)

23553272

23608218

23550183

(M)

09849038799

23543213

23543214

Andhra

Pradesh

KOLKATA:

27,B,Camac street

5th floor,

Kolkatta-700 016

Mr. P. K. Mukharjee

[email protected]

(STD:033)

22805046

22401302

22805043

to

22805046

22801192

(M)

9830051004

22440103

24567306

West

Bengal,

Orissa,

Bihar &

North

Eastern

States
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


40/76

MUMBAI:

Industry house

159,Churchgate Reclamation

P.B.NO No 11003

Mumbai-400 020

Mr. H.H. Goenka

[email protected]

(STD:022)

22027854

22026340

22023170

28935021

26842764

Maharastra

& All

Exports

NEW DELHI:

UCO Bank building

4th floor

Parliament street

New Delhi-110 001

Mr. Sandeep Chawla

Mr. Tarun Chugh

[email protected]

(STD:011)

23711561

23711195

23737121

(M)

09810036477

Punjab,

Haryana,

Chandigarh,

Rajasthan,

Delhi

Himachal

Pradesh

J & K
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


41/76

FINANCIAL PERFORMANCE

UCL - Where growth, profitability and market leadership is a way of life.

2nd Largest producer of power cables in M.P

Leaders in high-growth capacitor sector with marked rise in retail sales of brandedproducts.

First Indian company to own CIGRE , PARIS Recognition for securing raw materialsupply in cable market.

Publicly traded company in BSE.


42/76

Key Financials (Rs. in lakhs)

Net Revenues of UCL (Rs.lakhs)

EBDITA of UCL (Rs.Lakhs)

Net Profit of UCL (Rs.Lakhs)


43/76

EPS of UCL (In Rs.)


44/76

SALES (RS.LAKHS)


45/76

PROFIT AFTER TAX (RS.LAKHS)


46/76

BUSINESS OUTLOOK OF UCL FOR FY 2007-2008

PARTICULARS AMOUNT (RS L) YOY GROWTH

REVENUES 17500-1800 % 61-65 %

NET PROFIT 1,050-1,100 % 83-89 %

NET PROFIT MARGIN 6.1%

TO ACHIEVE THE ABOVE THE COMPANY WOULD NEED TO;

Expand manufacturing capacities.

Enter new markets. Implement a robust financial and control system. Put in place strong sales and marketing team supported by a skilled production team.


47/76

EXPORT PROCESS

Enquiry

Quotation

Order confirmation

Letter of Credit

Production planning

Production of material

Dispatch

Preparation of Pre-shipment documents

Goods Ready for Dispatch

Shipment/Consignment Sent


48/76

Preparation of Pot-shipment documents

Document negotiated with bank

Payment realization


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EXPORT DOCUMENTATION

It is important for two reasons:-1. as an evidence of shipment and title of goods

2. Obtaining payments

In addition to above the main purpose of documents accompany a shipment is to provide a

specific and complete description 'of the goods so that 'they can be assessed correctly for duty

purpose and meet the import licensing requirements or import quota restriction imposed on

goods and for clearance purposes,

Aligned documentation system

1. Commercial documents.

2. Regulatory documents.

Aligned documentation system is based on UN layout key under this system different forms

used in the international trade transaction are printed on a uniform and standard A4 size pages

in such a way that common items of information are given same slot. In each of these

documents the aligned documentation system makes it possible to prepare one master

document and embodying the common information.

The government of India has made it mandatory for every client to use aligned documentation

system with the effects from 1 September 1991.

Advantages of aligned documentation system

1. Bring in uniformity in documentation.2. Ensure economy, speed, accuracy and convenience.

The most important documents used by UNIVERSAL CABLES LTD are as follows:


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Commercial invoice- UCL uses a statement containing full detail of the goods

shipped. The general contents of a commercial invoice are :-

a) Name and addresses of the seller and the buyer.

b) Details of goods shipped-quantity, quality, description and value.

c) Packing details and packing marks.

d) Terms of trade - FOB, CFR, OR CIF etc.

e) Details of freight charges, insurance premium and other charges.

f) Price and amount payable by the buyer

g) Reference to the sale contract" in fulfillment of which the shipment is made

h) Name of the vessel in which the goods are shipped.

i) Reference to the license number under which the import is made.

An invoice is not a document of title to goods but is only a description of goods: It serves

the purpose of verifying that the goods shipped and the price charges are as per the

contract. Thought there is no specific proforma in which an invoice is to be prepared

certain countries may prescribe the format in which invoices for imports into their

countries have to be prepared. Such requirements have to be kept in view while preparing

the invoice.

Bill of exchangeUCL also uses B/E. it is an instruction by the client to the client or

the client's bank to make payment of the amount mentioned in it. A bill of exchange is a

negotiable instrument and is governed by the negotiable instruments act in India and by

similar enactments in other countries. The negotiable instruments act defines a bill of

exchange as "an instrument in writing containing an unconditional order. Signed by the

maker directing a certain person to pay a certain sum of money only to or to the order of

a certain person or to the bearer of the instrument"


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Types of bills of exchange used by the company:-

Sight and usance bills Document against acceptance Document against payment Inland bills Foreign bills

Proforma invoice: the company uses this specific to make a distinction between a

commercial invoice and a proforma invoice. A proforma invoice contains all the

particulars in a commercial invoice. It is distinguished from the letter by the words

proforma invoice appearing on it.

A proforma invoice does not evidence a sale. The profroma invoice is required in the

following cases:

1) It may be the basis on which the contract of sale is concluded later.2) When goods are sent on consignment basis, a proforma invoice may be used since the

goods are sent only to an agent of the seller, it serves as a guide as to the price at

which the agent should sell the goods.

3) It may be used to support a tender for sale contract.

Certificate of origin: A certificate of origin declares that the goods have been

produced in India. A country may place restrictions on imports from certain countries.

Or preferential treatment may be accorded in tariff for imports from certain countries.

For both these purposes certificate of origin becomes necessary. Usually such

certificates are issued by the chamber of commerce or trade associations in the

exporting country."

Packing list and packing note - packing note specifies the particular of the

contents of an individual pack while packing list is the consulate statement of the

contents of a number of cases or packets packing note should included.


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1. The packing note number2. The date of packing3. Name and address of the client and client4. Client and client order number5. Bill of lading number6. Date apart from the detail from the packing notes7. It should also include item wise detail

10 copies of both are prepared .the first is to be send with the shipping documents

two copies in advance to the buyer one to the shipping agent and the remaining is

retained by the company.

Certificate of inspection and quality control- it certifies the inspection of

the goods. It is issued by the export inspection agency certifying that the consignment

has been inspected as required under the export quality control and inspection act

1963 and satisfies the condition relating to quality control and inspection as applicable

to it and is certified export worthy.

Blacklist certificate - a country at war with or having a strained political

relationship with another country require a certificate that:

1. The goods are not of the origin of the particular country.2. The parties involved in the transaction are not blacklisted.3. The transport vessel will not touch the other country.


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Shipping bill/bill of export- shipping bill is prepared by the company through its

logistics counterpart .it is prescribed by the central excise authority and related to

shipment of goods. It is the main document on the basis of which the custom

permission for export is given. It contains:

1) Particular of the goods sends.

2) Name of the vessel, agent, and flag of the country.

3) The port at which the goods to be discharge the country of final destination.

4) The companys package of goods.

The custom authority at JNPT and KANDLA duly attests the shipping bill in 5

copies

1) Custom copy

2) Drawback copy

3) Export promotion copy

4) Port trust copy

5) Client s copy

Thefollowing 3 forms of the shipping bill is available to the custom authority:-

1) Dutiable shipping bill for goods for which there is export duties.

2) Pre-shipment bill number export duties on the goods.

3) Drawback shipping bill, who is required for claiming the custom drawback

against goods, exported.


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Letter of credit - when the company draws a bill of exchange on the client he

faces the risk of repudiation of the contract by the client. L/C could assure the client

that is he exports the goods as per the contract entered into with the client and

produces evidence to that effect, he would receive payment without default.

Letter of Credit is an undertaking by the clients bank that if the client exports

the goods and produces documents as stipulated in the letter, the bank would make

payment to the client. Thus the obligation of the client under the contract is

supplemented by a superior obligation of a bank to make payment. The client now

looks to the bank, which opened the letter of credit for payment instead of relying

on the client.

Contract type:-

1)Sale contract2)Contract between client and Indian bank undertaking credit3)Contract between Indian bank and advising bank4)Contract between advising bank and UCL


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Advantage of using Letter of Credit: LC offers advantages to the clients and the

company. Some of them are as follows:

To the Company:-

1. The LC provides the sort of assurance that company likes before he embarks onmanufacturing the goods for export. In an international deal. The company and the

client rarely meet and it is clinched only through exchange of correspondence. The

client therefore requires ensuring him that on shipping the goods he will receive the

payment promptly. There is always the risk of the client failing to pay. The risk is

greater if the antecedents of the client are not known. The LC protects the client

against failure of the client to pay. A superior undertaking of a bank under the letter

of credit assures the client that when the documents are tendered as per the terms of

the credit, payment would be made to him. Thus is also helps the seller to expand

the business by enabling him to conclude deal which in the absence of credit he

would be hesitant to do.

2. The LC helps easing the financial position of the client. The client can easilydiscount the bills under a LC with his bank, As such bil1s carry an undertaking to

pay by a bank, bills drawn under LC are readily discounted by banks thus the client

gets payment immediately on .shipping the goods. Moreover, on the strength of the

LC, the client may raise loans from his bank for procurement and processing of raw

materials and their exports.

To the Clients:-

1) The LC enables the client to purchase materials without making full advancepayment. Further on the strength of the superior credit of bank, he is able to finalize

contracts, which the seller may not agree had he rely only on the client.

2) If he takes certain safeguards, like calling for packing certificates etc. the quality andquantity of the goods consigned is assured.

3) Provided the buyer has a big credit with his bank he may get goods released by thebank under trust and pay for them on sale


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The company offers ;-

1) Payment credit2) Negotiation credit3) Acceptance credit4) Deferred payment credit5) Revocable and irrevocable credit6) Confirmed and unconfirmed credit7) With recourse and without recourse credit8) Fixed and revolving credit9) Transferable credit10) Back to back credit11) Red clause credit12) Green clause credit

Bill of lading the company uses B/L as a major document. In the international trade

shipping occupies an important place as a mode of transport. The document evidencing the

carriage of goods by sea is the bill of lading. A bill of lading is a document issued by theshipping company or its agent, acknowledging the receipt of goods for carriage, which are

deliverable to the consignee or his assignee in the same condition as they were received.

Mate receipt this receipt is issued by the commanding officer of the ship when the

cargo is loaded on the ship and contains information about name of the vessel, date of

shipment description of package marks a.11d number condition of the cargo at the time of

receipt.


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Using Bill of lading under a letter of creditcompany calls for full set clean on

board freight paid ocean bill oflading made to order and bland endorsed

1) Full set of bill of lading2) Clean and claused bill of lading3) Port of loading and port of discharge4) On board and received for shipment bill of lading5) Shipped on deck bill of lading6) Freight paid and freight collect bill of lading7) Ocean bill of lading straight or order bill of lading8) Ocean bill of lading straight or order bill of lading.

Transportation :-

Company is located at the heart of the heart of India that is Madhya Pradesh. Manufacturing units and warehouses are well connected through rail transport. Company has tie ups with several logistics companys Main purpose is served by the railways and roadways that is by trucks through which

cargo is transmitted in the neighboring countries.

Cargo is loaded with user manuals and machines as and when required or in case of bulk. Transport documents are prepared and maintained by the logistics counterparts. Cargo is dispatched to the ports as JNPT, KANDLA. From where it is shipped to the

further destinations.

Company has also contractual tie ups with international airlines.

In case cargo heavy capacitors or a/c parts are to be exported, company normally refers toairlines.

The nearest airport is KHAJURAHO which is used, when goods have to be deliveredwithin a short spam of time and the quantity is less.


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Transport Documents :-

So far following documents are used by the company for domesticTransportation and exports to Nepal and neighboring countries :-

Road:-

Transportation receipt Bilty Gate pass Bill Packing list and note ( in case required)

Railway:-

Railway receipt Lorry receipt Challan Central excise

Air:-

Air consignment note Airway bill


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Company uses following documents to make a transaction: (minimum):-

a) Bill of exchangeb) Bill of lading/ Airway bill (all negotiable copies plus one non-negotiable copy). Post

parcel receipt/ combined transport documents as the case may be.

c) Original L/Cd) Customs invoice/ consular invoicee) Certificate of origin GSP/ APR certificatef) Insurance policy/ certificate with complete set (broker cover note should not be sent)g) Packing listh) Foreign exchange declaration from i.e. GR form.i) Commercial invoice one copy duly certified by the customs.j) Other documents like certificate of analysis/ inspection certificate declaration to ECGC

etc.

Problems Faced In The Process Of Documentation:-

In the process of documentation, three have been often faced a number of problems

By the clients/importing parties or on the part of their respective agents or freight

Forwarders etc At times there has also been lack of through knowledge and

Misunderstanding between the parties involved in such transactions


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Problems related to the pre-shipment stage of documentation:

The most common and important problem in the documentation refers to the

Delay in the preparation of the documents due to various reasons, these are as

Follows:

1. Technical Problems- due to the failure of delay in either making a forwarding of

Exports documents and this can create a time lag between the actual and estimated

Time to perform a particular task

2. Delay Due To Stocking - If there is low level of stock in the warehouse or the stock

Available is not the usual condition or in case of a sudden hike in demands of

GoodThecompany may require some time in order to maintain the level of stock Accordingly

and this may cause a delay in the operations of the manufacturing which

Is turn affects the stuffing process of the container.

3. Delay Due To Over Volume - Sometimes it is seen that the inventory level of the

Company is much higher than the point of minimum requirements and this leads to

Piling Up of goods in the store. But at the time of containerization, the goods must be

Loaded in the order of their lots because the goods have been in excess quantity, they

Are randomly stored here and there which requires a lot of time to load them

Systematically Into the containers and hence there can be delay in shipment of goods

That may result in delay in submission of export documents

4. Non-availability of excise officer The government authorities appoint the excise

officer but expenses are borne by the company (E.g. - salary, accommodation, food, etc.) He is

the one in whose presence the goods are examined, checked, verified and then stuffed into

containers. The goods can move out of the company/plant premises only after his endorsement

and seal OD the container/goods and on the documents.

But in case of emergency there are times when excise officer's endorsement is required on the

Documents after the office hours and his availability becomes Questionable such cases may

also lead to the delay in shipment of goods and Thus delay in the process of documentation.


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5. 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

Production due to lack of material, information or some mechanical failures at

The plant these situations also indirectly affect the documentation process.

6. Non-Availability of Containers/Vessels- (In peak seasons) - Every business has

Its peak seasons in its business cycle. Specially at the end of the financial year

(April - March) every company wants to take full advantages of this period in order

To attain their pre determined targets/performance standards and so, there is heavy

Requirements of modes of transport to fulfill the set targets

The non-availability of containers, vessels may create some problem In documentation

indirectly.

7. Mistakes in Drafting & making Documents:-

Difference in the numeric values, omission of certain numbers, making wrong entry in

documents, errors due to repetition of numbers etc. Are some examples of mistakes made while

drafting/making of documents? These types of mistakes in drafting of documents require a lot

of time in corrections. This is also one of the reasons in delay of documentations.


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Problems related to the "post-shipment of the documentation

These problems are faced at the post-shipment stage. These mainly included:

1) Incorrect Information Received From the Head Office or the Plant

Sometimes due to the oversight of the persons preparing the documents, certain

Mistakes are committed and these are further carried in the making of other

Documents It is very difficult to trace such mistakes as only the person who has

Actually gone through the original documents can rectify those errors.

E.G. Bill of lading is prepared according to the LC. But, in case of dissimilarity

Between the details mentioned in the two documents, the company has to pay heavy

Penalties because of the mistakes committed in the bill of lading.

a) The shipping bill is prepared as per the specification of the invoice. Any oversight regarding

entry of rates per kg amount, quantity of goods being exported, and etc Causes a problem at the later

stages

b) At times same overseas buyer places an order, there are chances of mistakes occurring at the

6me of the LC number. (For the same party, there could be entered different LC number).

2) EDI (Electronic Data Interchange) Clearance Consumes a Lot of Time

3) 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 either planned is not able to ship the container then the branch office has

To arrange another vessel which means wastage of time aswell as money and

Unnecessary delay in the shipment of goods


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4) High Processing Time Required for Getting the Documents Cleared (From

Customs authorities) - Although, the pre-shipment documents (made at the plant)

Have been already gone through the excise inspector (at the plant) and endorsed

Thereafter, still the customs authorities require other post-shipment documents

(Which have been basically made with help of pre-shipment documents). This

Requires a lot of time and money (because the company has to bear the shifting

Charges from one vessel to another)


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SWOT ANALYSIS

STRENGTHS:-

1. Fully computerized setup.2. It has yearly contract.3. It can be used as a legal provision in future.4. It helps in maintaining the export-import records of the company.

5. Brand equity and early mover advantage.6. Entrepreneur led, professionally managed by an experienced team.7. Project execution and operations capabilities.8. Large base of customers9. Building confidence and strong trade relations

WEAKNESSES:-

1. Lot of space is required to keep documents.2. Unable to match quality with price.

3.

Unable to fulfill the needs of small scale customers.


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OPPORTUNITIES :-

1. The advanced technologies like E-commerce and online trading should be used by thecompany in order to expand its functions and future inbuilt transactions.

2. Increasing demand and purchasing power of the Indian consumers/ public.

THREATS:-

1. Information can be easily leaked from documents.2. Threat of theft, fire to documents.3. Entry of new Indian competitors.


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CONCLUSION :-

The above study makes it clear that a Universal cable Ltd. 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 Universal cables Ltd. is very bright because company has a

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

products.


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SUGGESTIONS :-

The company should actively keep track of the process and of the changes in theinformation in government formalities.

Company should improve its recruitment procedure. Interference of CHA should be reduced. Government should be helpful by reducing the complexity of exporting by reducing the

number of documents and formalities.

The client should be aware about the process and current informations of the changes inthe government formalities.


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IMPLICATION OF THE STUDY

For the company

It will help company to know their strengths 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.

For New Companies who want to deal with Universal cables Ltd,satna.

It will give overall knowledge about companys working procedure, its terms and conditions.


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BIBLIOGRAPHY

P K KHURANA (EXPORT MANAGEMENT) JEEVNANDANAM (FOREIGN EXCHANGE) INTERNATIONAL MARKETING (RAKESH MOHAN JOSHI) EXPORT MARKETING ( B.S RATHORE ) MARKETING MANAGEMENT ( P.KOTLER ) www.unistarcables.com(COMPANY WEBSITE)

ANNEXURE
http://www.unistarcables.com/http://www.unistarcables.com/http://www.unistarcables.com/


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Name and address of the insurance company

Logo

Survey : in the event of loss or damage which may invoice claim under issuing officethe certificate , notice of loss or damage should be given to :

Claim payable at :

Insured open policy/cover No. Certificate No.Date of issue

Rate premium date of issuance

MarineWar &/or S.R.C.CStamp duty

Vessel port of loadingIssued value Rs

Port of final destinationDischarge

Marks & No. & kind of pckgs; Description of goods importantNumbers

Terms of insurance:

This is to certify that insurance of the above mentioned goods has been affected with this company as per detailsspecified in the schedule herein above, subject to the terms and conditions of the relative open policy/cover.

For theAuthorized signatory

Marine insurance certificate


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Client B/L No. :

Name and logo ofshipping line/combined transport

operator

Consignee (if order notify

party & address )

Pre carriage by Place of receipt bypre carrier

Vessel/flight no. Port of loading

Port of dischargePlace of delivery(if on carriage)

Marks & nos No. & kind/container no of pkgs.

Description ofgoods

Gross weight(k.g)

Cube (m3)

Total no of container /packages received in apparent good order andcondition.

MovementFreight /charge indicator

Shipped on board for the (name of theShipping line/CTO)

For the

Date: Signature & initials Date:Signature &Initials

BILL OF LADING

Freight payable atNo. of original Bs/


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shipper No. :Name and logo of

shipping line

Vessel/flightno.

Port of loading

Port ofdischarge

Place ofdelivery

Marks & No. & kind/numbers of pkgs.

Description ofgoods

Gross weight(k.g)

measurement

The shipping order is issued and the goods to be received and carried subject toAll the clauses and conditions and endorsements on the company bill of lading

current at the the time of shipment as well as the conditions overleaf.

Carting Date .

Freight payable at place and date of issuance Freight brokerSignature

Client Invoice no. & date Clients ref

Buyers order no. & date

Other references (s)

consignee Documents being negotiated :

Commercial invoice


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Pre carriage by Place of receipt by

pre carrier

Packing list

Consular invoice

Bill of lading/airway bill

Insurance certificate/policy

Bill of exchange

Certificate of origin

GSP certificate of origin

Export certificate

Inspection certificate

Any other document (specify )

Vessel/flight no. Port of loading

Port of discharge Place of delivery

Marks &nos/container no.

No. & kindof pkgs

Description ofgoods

Quantitynos.

Rate US $ Amount US $

Net weight :Gross weight :

Total :

We have shipped the goods as per details given herein and are negotiating theabove listed documents under documentary credit....(name & address of the bank)

OrWe are sending the above listed documents for collection through (name & address of the bank)We have also dispatched the following documents through

(carrier)

Flt no,Date,.

( ) certificate of origin( ) export certificate

( ) invoice( ) packing list

SHIPPING ADVICE

Signature & Date