CHAPTER -1

1.1 INTRODUCTION

Meaning-:
EXPORT FINANCE

Finance is required by businessmen, industrialists and others for their day today activities. In export business also finance plays an important role. Export finance starts as soon as the exporter gets an order to export. An exporter needs finance for processing or manufacturing or assembling or procuring or packing the goods for export. Pre-shipment finance is provided to the exporter to meet such requirements. After the shipment is made, exporter will have to give credit to the importer for an agreed period. Even if he does not give credit the exporter has to payment.. it will take some more time before the advice of payment is finally communicated to the exporter. Post-shipment finance is therefore provided to the exporter to meet his needs for funds during the intervening period between the shipment of the goods and the receipt of payment therefore. In India commercial banks provide export finance to the exporters through various channels from time to time depending upon the nature of the contract entered into. The commercial banks offer export finance to exporters on the line or directions issued by the RBI. The export credit facilities have been provided to exporter since 1968 when the Reserve Bank of India introduced the concessional rate of interest scheme with active support from the ministry of commerce, which is very much interested in boosting up export from India. Export finance at concessional rate of interest is provided by commercial banks at preshipment or post shipment stage.

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1. PRE-SHIPMENT CREDIT OR PACKING CREDIT

Export packing credit or pre-shipment credit or pre-shipment credit is a loan or any other credit given by a bank to an exporter for financing (a) procuring raw materials and components to manufacture the product or (b) processing or packing the goods for export. The packing credit is given by the banks on basis of the following: (a) A letter of credit (L/C) opened in favour of the exporter by the importers bank. (b) A confirmed or irrevocable order for the export of goods from india having been placed on the exporter. (c) Any other evidence of an order for exports of goods from india having been placed on the exporter (d) Relevant policy issued by the ECGC (e) Personal bond in the case of party already known to banker.

How to apply for the packing credit? The exporter has to submit the following documents along with the completed packing credit loan application: (1) Firm order and/ or L/C received from the importer. (2) Partnership deed in case of partnership firm. (3) Memorandum of Association, Articles of Association, certificate of commencement of business, etc., in case of registered companies under the Companies Act. (4) Audited/Financial statement for the past 3 to 5 years. (5) Copies of income tax assessment orders for the past 2 to 3 years in respect of sole proprietary and partnership firms.

The bank giving the export credit should obtain a credit report from foreign correspondent bank / branch if the export orders not covered by an irrevocable letter of credit. The ECGC also gives confidential information to banks on overseas buyers. The bank should also obtain credit report from bank with whom the exporter borrowing arrangements if the exporter is not a regular customer of the bank.

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The bank takes into consideration a number of factors before making the necessary advance to the exporter viz: 1) 2) 3) 4) 5) 6) Honesty, integrity and the capital of the borrower Exporters experience in the line Security offered The margin and the rate of interest The banks experience about the exporter; and The standing of the foreign buyer.

Cost covered by pre-shipment finance

Pre-shipment finance would normally cover the following cost: 1) 2) 3) 4) 5) 6) Cost of purchase or production Packing including any special packing for export Cost of special inspection or test required by the importer Internal transport costs Port, customs and shipping agents charges Freight and insurance charges if the contract is either CIF contract or C&F contract, and 7) Export duty or tax, if any. In certain cases the pre- shipment advance is made to finance expected receivables such as drawback. Where domestic production cost are higher, pre-shipment finance may be higher domestic cost. Pre-shipment advance may take the form of loan overdraft or cash credit. The pre-shipment credit is offered by the banks at concessional rate of interest. These rate may change from time to time.

Pre-shipment credit in foreign exchange:

With a view to making export credit available at internationally competitive rates banks have been allowed to extend pre-shipment credit in foreign currency.

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Revolving Credit If an exporter is well known to the banker and his past performance has been satisfactory, the banks are usually prepared to grant revolving pre-shipment credit in connection with successive deliveries. This implies that upon repayment of the first loan, the exporter is automatically granted a corresponding loan on the same terms for the successive export orders received by the exporter. This procedure offers the advantages of saving time and cost as the original document serve as a basic for extended credit.

Adjustment of packing credit Packing credit is adjusting out of the post shipment facility provided by the banks.

Red Clause L/C Pre-shipment credit may also be provided under a letter of credit with a red Clause where advance is granted at the instance and, therefore, on the responsibility of the foreign bank establishing the credit.

Back to Back L/C In case the goods are to be procured or purchased from a supplier or a manufacturer, the banks may open a letter of credit in favour of the suppliers under what is known as Back to Back letter of credit. This procedure is usually adopted by export houses for getting letter of credit in favour of their suppliers. In such cases credit can be extinguished by drawing a bill on the export house.

Consignment sales In the case of consignment sales, banks usually establish a special post shipment credit account which is adjusted when the goods are sold abroad and the sale proceeds received.

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2. POST-SHIPMENT CREDIT

Post-shipment finance is required by the exporter to bridge the gap between the time of shipment of goods and the actual payment for the goods exported. Post-shipment credits are given by commercial banks against the security of approved shipping documents tendered against- letter of credit or otherwise. It is also provided at concessional rate of interest.

The banks normally finance the post-shipment credit in one the following ways: (a) Negotiating export bills under letter of credit (b) Discounting of bills drawn against shipment of goods i.e. discounting of usance bills (D/A bills) bills is usually done under limits sanctioned to different customers, and (c) An advance against bills under collection.

Banks charge a commission for discounting the bills, according to the rates prescribed by the Foreign Exchange Dealers Association of India. The rate of interest on post-shipment credit is also charged at concessional rate. Repayment of loan will generally take place when proceeds are received from importers in conformity with the terms of sale. The position is a little more difficult when document are to be delivered against acceptance. However, the exporter can take ECGC cover for such risks.

Types of Post-shipment Credit:

Post-shipment credit may be of three types: 1) Short term: The short term credit is usually for 6 months and provided by banks. 2) Medium term: medium term loan are offered for a period beyond 6 month and up to 5 year. These loans are also provided by commercial banks in collaboration with EXIM Bank of India. Medium term loans are provided for in the case of durable consumer goods and light capital goods. 3) Long term: long term loans are provided in the case of sale of capital goods, complete plants and turnkey jobs. The period of credit is usually more than 5 years.

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3. FORFATINIG
Forfaiting enables an exporter to convert an overseas credit sale into a cash through the process of discounting of export receivable. In this method the bill of exchange accepted by the importer is surrounded to the forfaiting agency which pays him in cash after deducting a fee. The understanding is that the forfaiting agency will collect the dues from the importer directly on expiry of the said period. The surrender of the receivables is without resources to the exporter. That means he is insulted against the possibility of default in payment by the importer. Thus, forfeiting provides an attractive to the existing modes of payment. Advantages of forfeiting: forfeiting has many advantages to the exporter and they are as follows: i) As against the traditional discounting of bills with the banker and losing a part of the export proceeds, the exporter receives the export value from the forfeiter sans the cost of forfeiting, which is loaded in the contract price and ultimately borne by the importer. Since the transaction under forfeiting is without recourse to the exporter he is absolved of all the risks attached to the transaction. Exporters liquidity position improves with the inflow of funds from forfaiter as he realises cash from the credit transaction. Thus forfeiting represent an additional sources of funding and does not impact his borrowing limit. Exporter is saved of all problems and straggles generally faced in collecting the dues. He is out of the transaction once it is sold to the forfeiter. Documentation procedure is simple and many document are not required. It frees the exporter from cross border political or commercial risk associated with export receivable. It provides hedge against interest and exchange risks arising from deferred export credit. Forfaiting is transaction specific. Therefore a long term banking relationship with the forfeiter is not necessary to arrange a forfeiting transaction. Exporter saves on insurance cost as forfeiting removes the need for export credit insurance.

ii) iii)

iv) v) vi) vii) viii) ix)

Even though forfeiting is an attracting one, yet all deals do not quality for this facility. Especially the international forfeiting agencies do not accept contract to forfait bills less than 0.5 million dollars on a single deal. This sometimes keeps the small Indian exporter out of the race even before it begins. However realizing this, some international agencies are now willing to consider small deals also.

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4. FINANCE FOR EXPORT ON DEFERRED PAYMENT TERMS

Our exchange control regulations stipulate that exporters should realize the foreign exchange form the date of shipment. Contracts for export of goods against payment to be received fully or partly after the expiry of the stipulated period for the realization of export proceeds are treated as deferred payment export contracts. Extention of long term export credit has become an accepted export market strategy and therefore, provisions has been made for the extention of medium and long term credit to finance the sale of Indian capital goods and related service. Any such contract in which payment is to be received after 6 month period, a specific permission should be obtained from the Exchange Control Department of the RBI. Any loan upto Rs.10cr. for financing export of capital goods is decided by a commercial bank which can finance itself from the Export Import Bank. In case of export contracts above Rs.10cr. but not more than Rs. 50cr., EXIM Bank has been given the authority to decide whether export finance could be provided. Contracts above Rs.50cr. need clearance by the working group. The EXIM bank conducts credit appraisal and take on the major share of financing. the credit appraisal includes assessing the nature of export, economic status of the buyer and the importing country, the period of evaluation of projects are:

i) ii)

Whether the proposed project can be justified on commercial consideration; Whether the foreign borrower is financially sound to repay the credit are economically viable.

There is no maximum limit for the finance to be provided.

Security for deferred credit could be provided by: i) ii) iii) iv) v) Letter of credit Pro-notes executed by government buyers/public sector undertakings. Acceptable bank guarantees Bills duly accepted by bank and Any other security considered adequate

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Under the present regulation, depending on the values of contracts the credit period can be extended up to 12 years. There are basically three different mechanisms for offering long term credit as follows:

i)

Suppliers credit: Under this system, the Indian exporter will offer credit to the overseas buyer. The exporter can on the other hand secure reciprocal credits from the commercial banks which in turn, can get refinance from the EXIM Bank.

ii)

Buyers Credit: In this case, EXIM Bank directly extends credit to the importer. Indian exporter can receive their payments straightway from the EXIM Bank.

iii)

Line of Credit: In this case the EXIM Bank extends credit to financial institute in the importing country.

The vital difference between the first two schemes lies in the fact that in the former, the exporter is assuming the credit risks, while in the latter, EXIM Bank does it.

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5. ROLE OF EXIM BANK OF INDIA

THE INSTITUTION Export-Import Bank of India is the premier export finance institution of the country, set up in 1982 under the Export-Import Bank of India Act 1981. Government of India launched the institution with a mandate, not just to enhance exports from India, but to integrate the countrys foreign trade and investment with the overall economic growth. Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. Commencing operations as a purveyor of export credit, like other Export Credit Agencies in the world, Exim Bank of India has, over the period, evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in their globalisation efforts, through a wide range of products and services offered at all stages of the business cycle, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.

THE INITIATIVES

Exim Bank of India has been the prime mover in encouraging project exports from India. The Bank provides Indian project exporters with a comprehensive range of services to enhance the prospect of their securing export contracts, particularly those funded by Multilateral Funding Agencies like the World Bank, Asian Development Bank, African Development Bank and European Bank for Reconstruction and Development. The Bank extends lines of credit to overseas financial institutions, foreign governments and their agencies, enabling them to finance imports of goods and services from India on deferred credit terms. Exim Banks lines of Credit obviate credit risks for Indian exporters and are of particular relevance to SME exporters. The Banks Overseas Investment Finance programme offers a variety of facilities for Indian investments and acquisitions overseas. The facilities include loan to Indian companies for equity participation in overseas ventures, direct equity participation by Exim Bank in the overseas venture and non-funded facilities such as letters of credit and guarantees to facilitate local borrowings by the overseas venture. The Bank provides financial assistance by way of term loans in Indian rupees/foreign currencies for setting up new production facility, expansion/modernization/upgradation of existing facilities and for acquisition of production equipment/technology. Such facilities particularly help export oriented Small and Medium Enterprises for creation of export capabilities and enhancement of international competitiveness.

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A. objectives of Exim Bank: The Export-Import Bank of India (EXIM Bank) was set up by the Government of India in 1982 as a public sector financial institution under an Act passed in the parliament for the purpose of financial, facilitating and promoting foreign trade of india. The EXIM Bank is managed by a Board of Directors with representation from government, financial institutions, banks and business community. B. Financial Resources of the Bank: Its authorized capital is Rs.500 crores but it can raise loans from government of india, RBI, the Indian capital market and the international market. The Banks resources as on 31st March 1998 amounted to a little more than Rs.5200cr. including paid up capital of Rs.500crores.

C. Functions of the Bank The EXIM Banks Export financing programmes may be summarized as under:

1. Lending Programmes to Indian exporters

a) Suppliers credit: this enables Indian exporter to extend credit to overseas importer of eligible Indian goods. b) Finance for consultancy and technology services: this enables Indian exporter of consultancy and technology services extend term credit to overseas importer. c) Pre-shipment credit: this enables Indian exporter to buy raw material and other inputs for fulfilling export contracts involving cycle time exceeding six months. d) Finance for deemed exports. e) Foreign currency Pre-shipment credit. f) Finance for EOUs and EPZ units. g) Foreign currency Lines of credit for imports: It enables eligible EOU to acquire imported machinery for export production. h) Export Vendor Development Finance: It enables vendors of EOU to acquire plant and machinery and other assets for increasing export capability. i) Export-Product Development Finance: It enables Indian firms undertake product development, R&D for exports. j) Overseas Investment Finance. k) Software Training Institutes. l) Export Marketing Finance. m) Production Equipment Finance: It enables EOU to acquire equipment.

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2. Services offered to Indian Exporters:

(a) Underwriting: This enables Indian exporters to raise finance from capital markets with the backing of EXIM Banks underwriting commitment. (b) Forfaiting: This enables Indian exporters to convert credit sale to cash sale on without recourse basis. (c) (d)

Guarantee Facility: To execute export contracts and import transactions. L/C Confirmation: For import of capital goods
It provides grants/loans financing for project

(e) Project Preparatory Services Overseas: preparatory studies in developing countries. (f) (g) (h) (i) (j)

Business Advisory & Technical Assistance Service Overseas. Cooperation Arrangement with African Management services Co.(AMSCO) Amsterdam. Africa Enterprise Fund. Africa Project Development Facility EC Investment Partners Facility

3.

For Commercial Banks

(a) (b) (c) (d) (e)

Refinance of Export (Suppliers) credit Small Scale Industry (SSI) Export Bills Rediscounting Relending Facility. Refinance of Terms Loans to EOUs. Bulk Import Finance Guarantee cum Refinance Suppliers Credit

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4.

For Overseas Entities

(a) (b)

Lines of credit Buyers credit

D. Other activities of the bank:

(1)Export Marketing Fund (EMF): The EXIM Bank has been operating since March 1986, a $ 10 million export marketing fund financed by the World Bank to assist Indian Exporters for effective marketing in industrialized countries. (2)Export Marketing Fund II: EMF II is aimed to promote exports of manufactures to development country markets by providing loan-cum-grant finance in support of strategic export development plans at a firm level. (3)The Bank helps Indian companies go global by setting up subsidiaries and joint ventures abroad. (4)It provides information to potential exporters about projects abroad specially about multilaterally funded ones. (5)It also helps companies in preparing bids according to strict conditions very often prescribed by multilateral agencies. (6)It arranges training programmes for exporters often by inviting foreign experts. (7)The Bank also provides term finance for developing and launching new products for exports. (8)It also entertains proposals for various facilities under the European Community Investment Partners (ECIP) like feasibility studies for setting up export units. (9)The Bank extends advisory and information services in respect of Multilaterally Funded Overseas Project & sponsors Indian experts for overseas assignments. (10)The Bank introduced the Clusters of Excellence programme for up gradation of quality standards and obtaining ISO certification. (11)The Banks Head Office is now on line with nearly 700 data bases in Europe and the USA equipped to access information on products, prices, competitor companies and credit reports. In views of the above services rendered to exporters in India the Bank can claim the title Export Facilitator to the nation.

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EXPORT ASSISTANCE AND EXPORT PROMOTION MEASURES

Export assistance has become an important tool in any developing country to motivate the manufacturer and businessmen to enter the international market. Most developing countries have resorted to a number of export promotion measures. India has also been providing export assistance for the past about forty years. From 1992, export incentive system in india his been made very simple. There are essentially three major incentives, and other facilities, available to exporter. These are

Market based Exechange Rate Fiscal Concession Facilities under the Foreign Trade policy Other Facilities

Market based Exchange Rate: Since March 1993 the exchange rate of the rupee is fully determined by the demand and convertible for export-import transactions in March 1993. Under exporters will get benefit when rupee depreciates while importers will lose. When rupee appreciates the balance of benefits will the just the reverse.

Fiscal concession: The different types of fiscal concessions are as follows: In the computation of total income Sec.80. HHC if the Income Tax Act allowed a deduction of the whole of the profit derived form the export of gods or merchandise. This benefit was also available to supporting manufacturers exporting through. Export/Trading Houses provided that the amount of deduction claimed was retained as a reserve for the purpose of the business of the assessee. However, the budget for the year 2000-2001 has reduced this exemption by 20% every year to be phased out in five years.

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To find out what is the export profits the following formula was followed:

Export Turnover *Total profits Export Profit = ---------------------------------------------Total Turnover

Exemption from taxation of the profits from overseas projects to the extent of 20 percent Exemption from taxation 50percent of royalty, Commission, fees or any similar payment obtained from the exports of technical know-how and technical services. A 10 year tax holiday for 100 percent export oriented units and for units located in Free Trade/Export Processing Zones was given.

Concessional rate of customs duty on imports of selected items of machinery for export production under EPCG Scheme.
Facilities available under the Foreign Trade Policy for Export of goods from India:

EPCG Scheme: For those firms which are willing to accept an export obligation, there is a
special facility known as Export Promotion Capital Goods Scheme. Capital goods including spare parts may be imported at a concessional rate of customs duty, according to the conditions given in the policy. The export obligation shall the fulfilled by the export of goods manufactured or produced by the use of the capital goods imported under the scheme.

Duty Excemption/ Remission scheme: The main objective of the duty exemption scheme is
to enable the registered exporter to import raw materials, components, intermediates, consumables, parts spares including mandatory spares and packing materials required for the purpose of export production without payment of import duties, for this purpose the following schemes have been introduced: (I) (II) (III) (IV) Advance Authorisation Scheme Duty Free Replenishment Certificate Duty Entitlement Pass Book Scheme (DEPB scheme) Duty Free Import Authorisation

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Export and Trading Houses: Merchant as well as Manufacturer Exporters, Service providers,
Export oriented Units (EOUs), units located in SEZs Agri Export Zones (AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks(BTPs) shall be eligible for applying for status as Export Houses, Trading Houses, etc. The applicant shall be categorized depending on his total FOB/FOR export performance. A star export house shall be eligible for a number of facilities as given in the Foreign Trade Policy.

EPZs and SEZs: There were seven processing Zones (Free Trade Zones) at Chennai,
Vishakhapatnam, Falta (Calcutta) Cochin, SEEPZ, Bombay, Kandla and Noida(near New Delhi where facilities were available far export production such as excemption from import duty, excise duty, corporate tax etc., However it was obligatory on these units to export 100% of their production with some relaxation. There were some EPZs inPrivate sector also. These EPZs have since been converted into Special Economic Zones (SEZs) These SEZ units are also given a number of facilities.

Export oriented units(EOUs): These units, located anywhere but approved by the
Government, are given all the facilities of duty free imports of capital goods, raw materials and components, concession in central excise and other central levies and more liberal foreign collaboration terms on the lines of facilities available in the EPZs.

Deemed Exports: Certain transactions in which goods supplied do not leave the country and the
payment for the goods which is received by the suppliers in india have been treated as deemed exports and are entitled some benefits such as duty exemption in respect of deemed export categories, deemed export drawback, refund of terminal excise duty, special import licence, etc.

Promotional Measures: As per the Foreign Trade Policy the following Export Promotion
Measures will help exporters boost up their exports;1. 2. 3. 4. 5. Assistance to States for infrastructure Development of Exports Market Access Initiative Towns of Export Excellence Brand Promotion and Quality Export House, Star Export House, Trading House, Star Trading House and premier Trading House 6. Services Exports 7. Special Agriculture and village Industry Scheme (VKGUY) 8. Focus Market Scheme 9. Focus Product Scheme 10. High- Tech Products Export Promotion Scheme.

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Other Facilities available to exporters

In addition to the above mentioned incentives, the Central Government is offering the following facility to exporters. (I)

Duty drawback: This is refund of import duty or excise duty paid on the raw

materials and components which hae gone into the production of exported products. (II) Rebate of excise duty: If the goods exported attract central excise duty either the duty is exempted or refunded if already paid. (III) MDA funds: The Government reimburses Indian firms 50 percent of the cost of preparation and submission of bids for turnkey and construction projects, consultancy contracts as well as operation and maintenance service contracts abroad out of the MDA funds. Exports Promotion councils also get funds for export promotion purposes from the MDA funds. (IV) Research Studies: A number of research studies are undertaken every year by organization such as IIFT, ITPO, EPCs and commodity Boards. These reports usually reveal the market potential for indias products and what could be done to exploit the available opportunities. (V) Buyer-seller meets: The India Trade Promotion Organization(ITPO) has been organizing buyer, seller meets. These meets enable the Indian exporters to expose their products and to know how they can be adapted to meet the requirements of the foreign buyers. The ITPO also participates in trade fairs and exhibitions abroad exhibiting Indian goads. (VI) Export Finance: Exporters are allowed to get export finance both pre-shipment and post shipment credit at concessional rate of interest. (VII) Insurance of credit risk: The ECGC is willing to cover 90% of the political and commercial risks of export operations. The commercial banks which give credit to exporters can also get guarantee from ECGC. (VIII) National awards for outstanding Export performance: Trophies and certificates of merit are awarded to exporters with outstanding export performance. These awards are given by the Government of India as well as by the individual Export Promotion Council.

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1.2 SCOPE OF THE STUDY:

The present study focuses on the international trade and its implications on the global scenario. The scope emphasizes on the need and necessity of the documentary credit to be used in the international or foreign trade. The scope brings about comparison of v a r i o u s t yp e s o f b i l l s / d o c u m e n t s w h i c h a r e f i n a n c e d i n t h e foreign trade and its important towards the export and import transactions The short-term finance is required to meet working capital needs. The working capital is used to meet regular and recurring needs of a business firm. The regular and r e c u r r i n g n e e d s o f a b u s i n e s s f i r m r e f e r t o p u r c h a s e o f r a w m a t e r i a l , p a ym e n t o f wages and salaries, expenses like payment of rent, advertising etc.

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1.3 CONCEPT OF EXPORT FINANCE:

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

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1.4 OBJECTIVES OF THE STUDY: To study about the international trade To understand about the export and import transactions in an international bank

To have an idea about the various export and import documents used
in international trade To cover commercial & Non-commercial or political risks attendant on granting credit to a foreign buyer To cover natural risks like an earthquake, floods etc.

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1.5 RESEARCH METHODLOGY

Purpose of the study
Research methodology is a way to systematically solve the research problem it may be understand as a science of studying of how research is done scientifically. The research was done scientifically to evaluate the EXPORT FINANCE AND ASSISTANCE IN CHENNAI PORT TRUST.

Sources of Data
Data refers to information or facts. Data could be broadly classified as:

Primary Source of Data

Primary data is known as the data collected from the first time through field survey. Such data are collected with specific set of objectives to assess the current status of any variable studied. In this project, the data were collected through structured questionnaire.

Secondary Source of Data

Secondary data refers to the information or facts already collected. Such data are collected with the objective of understanding the past status of any variable or the data collected and reported by some source is accessed and used for the objective of a study. In this project, secondary data were collected on the basis of the company profile, records, books and websites of Chennai port trust.

Research Design:
A research design is the arrangement of conditions for collection and analysis of data in a manner that aim to combine relevance to the research purpose with economy in procedure. Regarding this project, descriptive research design concern with describing the perception of each individuals or narrating facts on welfare measures and diagnostic design helps in determine the frequency with which something occurs or its associated with something else. These two research design help in understand the characteristic in a given situation. Think systematically about aspects in given situation, offers idea for probe and research help to make certain simple decision.

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Tools and Techniques:

The collected data was first codified and then crystallized in no tables, which are further elucidated by dint, pie-charts, percentage method, weighted average method, chi-square test and other summarized scores/ratings were put in linguistic nutshell of finding of the study and based on these findings that, appropriate suggestions and recommendations were made at the end of the report.

Percentage Analysis:
In this research, various Percentages are identified in the analysis and they are present pictorially by way of pie diagrams and bar diagrams in order to have a better quality. FORMULA: Number of respondents Percentage = Total number of respondent * 100

Weighted Average Method: Weighted Average Method is based on the assumption that all the items in the distribution are of equal importance. FORMULA: WEIGHTED AVERAGE =

WXI

Chi Square Test: The chi-square test is an important test among the several tests of significance developed by statisticians. The chi-square is a statistical measure used in the context of sampling analysis for comparing the variance to a theoretical value. As a non-parametric test , it can be used to determine whether categorical data shows dependency or the two classifications are independent FORMULA: 2 =(Oi-Ei)2/Ei Oi=observed frequency Ei=Expected frequency

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RANK CORRELATION: The Karl Pearsons formula for calculating r is developed on the assumption that the values of the variables are exactly measurable.
FORMULA: 6[d2+m(m2-1)/12] =1 -----------------------------------------------N(n2-1)

Sampling Design: The sampling design is a definite plan determined before any data are actually collected for obtaining sample for given population. The convenient sampling technique was employed during the data collection. A sample of 100 employees was questioned in order to collect the data. Sample size: The size of the sample chosen or study 8000 is out of 100 employees who were available during the execution of the project survey. The data has been collected from the both primary, secondary sources for the research work.

Sampling Frame: The sample can be collected from the employees of Chennai Port Trust.

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1.6 CHAPTERIZATION

Chapter-1 The First Chapter deals with the study A STUDY ON EXPORT FINANCE AND ASSISTANCE IN CHENNAI PORT TRUST Introduction that is out line of project, Need of the Study, Scope of the study, Objective of the Study, Research Methodology. Limitations, Literature Review Chapter-2 The Second Chapter includes the Industry Profile. Chapter-3 The Third Chapter includes the Company Profile. Chapter -4 The Fourth Chapter includes the Data Analysis and Interpretation; Statistical Analysis using Statistical tools like Percentage Analysis, Weighted Average, Chi-square and Rank Correlation. Chapter -5 The Fifth Chapter includes Findings, Suggestions and Conclusions.

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REVIEW OF THE LITERATURE

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REVIEW OF THE LITERATURE

We noticed during 2000 that export finance market activities faced a movement towards globalisation. This trend began several years ago but we have observed an acceleration in the past year. Furthermore, the harmonisation of export credit agencies (ECAs) has strengthened this phenomenon.( Frederic Genet, Head of SG Export Finance in Paris)

Financing availability for the GCC region is delicately poised as eurozone events begin to exert a wider toll, writes (Kevin Godier) Exporting can be a good opportunity for small businesses to enter foreign markets and raise their business globally. To exploit this possibility, it is often necessary to seek Export Financing.(Wade Henderson)

It provide for the sound development of export trade through quality control and preshipment Inspection. EIC(Export Promotion Council)

For Carrying out preshipment inspection of export goods the government of India has established Export Inspection Agencies, The EIAs have a network of 61 sub- offices located at important industrial centres and ports of shipment. To ensure that the export cargos meet the specific conditions prescribed in the Export Trade Policy. EIA (Export Inspection Agencies)

It concerned about the realization and repatriation of export proceeds to india within prescribed period and in the prescribed manner. FEMA (Foreign Exchange Management Act)

Financing availability for the GCC region is delicately poised as eurozone events begin to exert a wider toll, writes (Kevin Godier)

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Reference

1) Export-Import Theory, Practices, and Procedures, Second Edition [Belay Seyoum] 2) Export-Import Management.[Justin Paul, Rajiv Aserkar] 3) Import-Export.[Carl A. Nelson] 4) Managing Exports. [Frank Reynolds] 5) Export-Import Procedures Documentation And Logistics. [C.Rama Gopal] 6) Building an Import/Export Business.[Kenneth D. Weis] 7) Export Management.[Singh & Mahadevan] 8) Numerical Methods For Ordinary Differential Equations.[John Charles Butcher] 9) I.M. Pandey Financial Management Vikas Publishing House Pvt. Ltd., 1999. 10) Management Accounting, Tata McGraw Hill Publishing Company Ltd, 2004, 4 th Revised Edition.[ M.Y Khan& P.k Jain ]

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CHAPTER 2

INDUSTRIAL PROFILE

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CHAPTER- 2

INDUSTRY PROFILE
2.1 OUTLINE OF THE INDUSTRY:
Transport plays a major role in the commercial and non commercial activities. In ancient days every country cannot communicate widely and exchange goods. Every country was separate before transactions. Transportation not only connects the places but it also helps in exchange of the business, culture & behavior. The transaction are classified as follows Water ways Road ways Air ways

Ancient mode of transport is water ways. This transport has played a vital role in our history. Vaskodakama discovered India. Columbus discovered America through the sea. Therefore sea has been a main mode for foreigners transportation faster and easier. The place where water was transport takes place in called HARBOUR OR PORT.

2.2 CLASSIFICATION OF HARBOURS:

The harbour could be classified based on Natural Harbour Functional Harbour Natural harbour is further classified into: A. Natural Harbour Natural Harbour is one which is formed by natural calamities. Like wves, storms, land, etc. The entrance to such a Harbour is so formed as to permit navigation. E.g: Kandla port trust, Bombay B. Semi- Natural Harbour

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Semi- Natural Harbour is protected on sides by head bands and requires man made protection at the entrance. E.g: Harbour in Vishakhapatnam C. Artifical Harbour Artifical Harbour or manmade harbour is protected from storms and waves by brake waters or is created by dredging. E.g: Harbour in Chennai and Mangalore

CLASSIFICATION BASED ON FUNCTIONAL HARBOUR:

A. Commercial Harbour Commercial harbour is one in which facilities are providing for loading and unloading cargos. Docks and berths are provided for the purpose of handling goods. B. Military Harbour Military Harbour on Naval Base is one which is meant for the purpose of accommodating navel crafts and serving as a supply depot. C. Harbour refuge Refuge Harbour is one which is used to have ships in a stores o rit may be a part a commercial Harbour. The requirement of such a harbour is a good in charge to access the sea and easily from the land .

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2.3 STATUS OF THE CHENNAI PORT IN THE WORLD MARKET

Chennai Port to create capacity to facilitate car exports:

Chennai, Feb 22(IANS) The Chennai Port Trust has chalked out plans to expand its car parking yards to facilitate car manufacturers in shipping out their small cars to global markets from here. We have plans to demolish the old buildings in the port and develop those areas as the parking yard for car companies. We are also planning to build a new RO-RO (roll-on-rolloff) berth for easy berthing of car carriers, the trust chairman Sub hash kumar said Monday. Speaking at a function held at the Chennai Port to flag off the one millionth export car of Hyundai Motor India Ltd, he said there were plans to build two multi layered car parking facility with a capacity to park 12,000 cars at the port Car exporters can also use the vacant space available in the second container terminal that is currently being underutilized, he added. Indias largest car exporter Hyundai Motor India ships out its cars made at its plant near here out of Chennai port. Japanese Car Company Nissan, which is slated to inaugurate its plant located near here, next month, has signed up with Ennore port for exporting around 180,000 cars, Maersk Line, the worlds biggest container shipping company, has decided to shut its weekly direct service from the Chennai port toNorth America from 5 February. This was the only container shipping service directly connecting a port on indias eastern coast to the US.Customers in southern India shipping goods in steel containers to the worlds largest economy will have to route them via Colombo, Srilanka, from February. This entails extra transis days and costs, eroding Indias competitiveness in the global market. Maersks decision shows a major malaise afflicting most of Indias ports-the high marine charges that a ship has to pay to dock for loading and unloading cargo. Marine charges comprise three elements-port dues; berth hires and pilot ages-that are collected on the basis of the cargocarrying capacity of the ship. The charges at Chennai port are among the worlds highest.

The exorbitant marine charges collected by both government-owned and private ports are acting as a deterrent to growth in trade out of India. An average container ship calling at Indian ports can carry some 6,400 standard containers. The depth at Indian ports cannot accommodate ships bigger than that. Maersk, which was operating the Chennai North America service with ships capable of carrying 4,300-5,060 standard containers, had to pay marine charges of about $75,035 (Rs 35 lakh) for each vessel calling at the Chennai port. Thus, in a year, Maersk has to pay as much as $3.6 million just to make a call at Chennai.

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2.4 MAJOR PORT IN INDIA

We Indians should be proud of our coastline, which is one of the longest in the world. In this we have setup the major and vital resources for a port, It is an important commercial area, which enable, us to build a powerful naval force for india. The twelve major ports in India are; Kolkata Port Trust (West Bengal) Paraded Port Trust (West Bengal, Mahanadi Kolkata) Visakhapatnam Port Trust(Andhra Pradesh) Chennai Port Trust(Tamil Nadu) Coaching Port Trust (Kerala- queen of Arabian sea) New Mangalore Port Trust(Karrnataka) Mormugoa Port Trust(Goa) Bombay Port Trust(Maharashtra) Jawaharlal Nehru Port (New Mumbai) Kandla Port Trust (Kutch- Region of Gujarat) Ennore Port Trust (Tamil Nadu)

Major role of port in India Monetary Non-Monetary

Monetary: Foreign exchange values are determined by port activities The national foreign exchange sources are also increased Port plays a vital in industrial export and import Port shows a trend in the business National economy is increased by port activities It in imports & exports of the machineries & technologies causing industrial revolutions. Exports interest raises as income

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2.5 STATUS IN TAMIL NADU

Chennai, Jan 12- The shipping ministry has called a meeting of Chennai Port Trust and National Highways Authority of India(NHAI) Jan 18 to sort out the tangle and take forward the Chennai Ennore Port Road project, the cost of which has increased to Rs.600 crore now, a senior port official said Tuesday. The project was conceived in 1998 to improve the 30-km road in north Chennai to ease the traffic. The shipping ministry secretary has called a meeting Jan 18 to discuss the issues relating to the project. The main issue is the drastic increase in the project cost- from Rs.160 crore when it was announced 10 years back and Rs.600 crore now. Chennai Port Trust chairman Subhash Kumar told reporters here. He said new elements have got added to the original project like the service lane which increased the project cost. The shipping ministry is asking the reasons for the drastic jump in the project cost; Kumar added. Chennai Port Trust, NHAI and the Tamil Nadu government floated a special purpose vehicle called Chennai Ennore Port Road Company Ltd for the purpose. We have given Rs.38 crore as our share which shows our interest in the project, Kumar said. The Port lacking space for further expansion has got the state governments sanction for 125 acres on 99-year lease in Sriperumbudur near here for building an integrated dry port and multi-model logistics hub. Containers can be brought there where stuffing or destuffing of goods can be made for onward journey. We may also start a container freight station there. The total project outlay will be around Rs.100 crore, Kumar said. Chennai port is also planning development of additional berth facilities and has invited Expression of Interest for Development of a RO-RO (roll on, roll off) cum multi-purpose berth with a multi-level and a barge jetty-cum-liquid cargo terminal. Categorically ruling our shifting of coal terminal to Ennore Port, Kumar said: Coal can be handled in a manner that does not pollute the environment. World over ports handle coal. He said to contain the coal and iron ore dust improvised sprinkler systems, semi-mechanized closed coal conveyor systems have been commissioned last November. Chennai port has decided to have a 7.5 MW wind energy farm in Tirunelveli district at an outlay of Rs.49.31 crore. The port has earned Rs. 538 crore revenue during April-December 2009.

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Performance earns Ennore port Mini Ratna status CHENNAI: The Ennore port, which, for the first time, recorded a net of profit of Rs.41.46 crore and paid a dividend of 15 per cent, has received Mini Ratna status from the Centre. Talking to reporters here on Saturday, Union Minister of shipping G.K. Vasan said the Chennai Port trust has achieved the distinction of becoming the second biggest port in the country in container traffic and 87th at the international level by handling one million tanker units per annum. The Tuticorin port had also set a record by handling 17.63 million tones of cargo till December 31 last year as against 16.94 million tones suring the same period in the last financial year. At the current rate, the port could surpass the target of 22.01 million tones of cargo for the current financial year.

2.6 FUTURE OF THE CHENNAI PORT

Some of the projects that are in progress at the Chennai Port include: Bunkering of Oil, Supply of Fresh Water, Modern Navigational aids Telephone connection to vessels, Insurance light rage. Round the Clock Communications on the Marine VHF Channel Extension of container terminal by 290 m berth length, addition of 30,000 sq.m of parking yard and one CFS; Additional equipment to be provided under privatization include two container quay cranes, two RTG cranes, other infrastructure facilities like CFS, CPY etc. The total handling capacityon completion will be 4,72,000 TEUs. Modernization of West Quay and North Quay berth at an estimated cost of Rs. 47.50 crore; Capacity addition to the port will be 0.95 million tons per annum of general cargo. Project to be executed with Asian Development Bank (ADB) assistance. Integrated scheme of extension of South Quay III about 73m and modernization of East Quay about 452m at a cost of Rs 46.16 crore The capacity addition to the port will be 0.70 million tons per annum of general cargo. Project to be executed with ADB assistance. Modernization of iron ore berth to handle general cargo vessels and Construction of one multi-storied transit. Long term plan to handle containers and cars (four to five berths) by shifting Handling of thermal coal and iron ore to Ennore Port.

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CHAPTER 3

COMPANY PROFILE

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CHAPTER 3 COMPANY PROFILE PROFILE OF CHENNAI PORT TRUST

Chennai Port, the third oldest port among the 12 major ports, is an emerging hub port in the East Coast of India. This gateway port for all cargo has completed 128 years of glorious service to the nations maritime trade. Maritime trade started way back in 1639 on the sea shore Chennai. It was an open road -stead and exposed sandy coast till 1815. The initial piers were built in 1861, but the storms of 1868 and 1872 made them inoperative. So an artificial harbour was built and the operations were started in 1881.The cargo operations were carried out on the northern pier, located on the northeastern side of Fort St. George in Chennai. In the first couple of years the port registered traffic of 3 lakh tonnes of cargo handling 600 ships. Being an artificial harbour, the port was vulnerable to the cyclones, accretion of sand inside the basin due to underwater currents, which reduced the draft. Sir Francis Spring a visionary skillfully drew a long-term plan to charter the course of the port in a scientific manner, overcoming both man-made and natural challenges. The shifting of the entrance of the port from eastern side to the North Eastern side protected the port to a large extent from the natural vulnerabilities. By the end of 1920 the port was equipped with a dock consisting of four berths in the West Quays, one each in the East & South Quay along with the transit sheds, warehouses and a marshalling yard to facilitate the transfer of cargo from land to sea and vice versa. Additional berths were added with a berth at South Quay and another between WQ2 & WQ3 in the forties. Indias Independence saw the port gathering development, momentum. The topography of the Port changed in 1964 when the Jawahar dock with capacity to berth 6 vessels to handle Dry Bulk cargoes such as Coal, Iron ore, Fertilizer and non hazardous liquid cargoes was carved out on the southern side.

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In tune with the international maritime developments, the port developed the Outer Harbour, named Bharathi Dock for handling Petroleum in 1972 and for mechanized handling of Iron Ore in 1974. The Iron ore terminal is equipped with Mechanized ore handling plant, one of the three such facility in the country, with a capacity of handling 8 million tonnes. The Chennai ports share of Iron ore export from India is 12%. The dedicated facility for oil led to the development of oil refinery in the hinterland. This oil terminal is capable of handling Suezmax vessels. In 1983, the port heralded the countrys first dedicated container terminal facility commissioned by the then prime minister Smt.Indira Gandhi on 18th December 1983. The Port privatized this terminal and is operated by Chennai Container Terminal Private Limited. Having the capability of handling fourth generation vessels, the terminal is ranked in the top 100 container ports in the world. Witnessing a phenomenal growth in container handling year after year the port is added with the Second Container Terminal with a capacity to handle 1.5 M TEUs to meet the demand. To cater to the latest generation of vessels and to exploit the steep increase in containerized cargo the port is planning to welcome the future with a Mega Container Terminal, capable of handling 5 Million TEUs expected to be operational from 2013. The Chennai port is one among the major ports having Terminal Shunting Yard and running their own Railway operations inside the harbour on the East Coast. The port is having railway lines running up to 68 kms and handles 25% of the total volume of the cargo, 4360 rakes (239412 wagons) during 2009-10. The port with three Docks, 24 berths and draft ranging from 12m to 16.5m has become a hub port for Containers, Cars and Project Cargo in the East Coast. The port has handled an all time high of 61.06 Million tonnes of cargo registering an increase of 6.2% over previous year. An increase of 10.14% in handling of cars from 273917 Units in the year 2009-10 when compared with 248697 Units in the year 2008-09 and an increase of 6.39% in handling of containers from 1143373 TEUs in the year 2008-09 to 1216438 TEUs in the year 2009-10. The long term plan for Chennai Port envisages that the Port will mainly handle 4Cs i.e. Containers, Cars, Cruise and Clean Cargo.

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3.2 ORGANISATION MISSION AND VISSION

Mission: Achieve excellence in Port operations with State-of-the-Art technologies Enhance competence and enthuse workforce to maximize customer satisfaction. Anticipate and adapt to the changing global scenario Act as a catalyst for sustained development of the Region

Vision:

To be recognized as a futuristic Port with foresight

Quality Policy: Provide efficient, prompt, safe and timely services at optimum cost Ensure quick turn round of vessels by providing facilities for efficient handling of cargo Maintain total transparency in all our transaction of the and Continually improve our services to meet the expectations of the port users, employees and the society.

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3.3 ORGANISATION STRUCTURE AND DEPARTMENTS:

There are nearly 14000 employees of various catagories along with officers are working in various departments. There are 9 departments consisting of many sections working in Chennai port trust. There are

Chairman office Vigilance department Secretary Department Civil engineering department Electrical and mechanical Engineering Marine department Traffic Department Accounts department Stores department Medical department Central industrial security force department

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3.4 THE HIERARCHIES IN THE CHENNAI PORT TRUST

CHAIRMAN

DEPUTY CHAIRMAN

DEPARTMENT HEADS

DEPUTY CHIEF OFFICER

SUPERINTENDENT

LABOURERS

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3.4 THE CHENNAI PORT SURGES AHEAD WITH:

More than 100 years of tradition Commitment for efficiency thro innovation and continuous moderation Efficient Services at minimum cost Simple and integrated procedures User-friendly approaches Facilities to handle cars and containers matching to international standards

GRAPHICAL LOCATION:

Latitude Longitude Climate Time Temperature Annual Rainfall Spring Tides

: : : : : : :

130 06N 800 18 E Tropical +5 Hrs. 30Minutes 300 C Max, 180C Min About 125 Cms. 1.2 Meters

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NAVIGATIONAL CHANNEL :

Entrance Channel

Soil Length of Channel Depth of Inner Channel Depth of Outer Channel Depth of Outer Channel Swell Allowance Width of Channel

Predominantly sandy and silt About 7 Kilometers 19.6m at chart datum 19.2m at chart datum 19.2m at chart datum 3.00 Meters. The width of channel gradually increases From 244m to 410m at the bent portion, Then maintains a constant width of 305m.

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TOTAL LENGTH OF BREAK WATER

Inner Harbour Eastern Breakwater Northern Breakwater Outer Harbour Eastern Breakwater Northern Breakwater Outer Arm Upper Pitch Revetment Port Entrances Entrance in Bharathi Dock Entrance in Dr.Ambedkar Dock Storage Facilities Transit Shed/over flow shed Warehouse Container Freight Station Open space Container parking Yard 7 Nos. - 30,693 sq.mts 5 Nos. - 30,138 sq.mts 3 Nos. - 40,644 sq.mts 3,84,611 sq.mts 2,50,600 sq.mts 350m 125m 590m 460m 1000m 950m 1325m 575m

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3.5 BOARD DIRECTORS

Shri. ATULYA MISRA, IAS.., Chairman Shri. P.C.PARIDA Deputy Chairman

Shri.G. SRIVINASAN
PA(Tech) to Chairman Shri.V.K.MAHENDRA BABU P.S to Chairman Shri.C.L.DHANASEKARAN, P.A to Chairman Shri..S. SUNDARARAJAN, P.S to Dy. Chairman Smt.M. S. VIJAYA P.A to Dy. Chairman Shri. M. DANDAYUDHAPANI Chief Vigilance Officer

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3.6 HIGHLIGHTS OF PORT

Chennai Port is a ISPS Compliant Port Chennai Port Trust awarded with Certification of ISO 14001 : 2004 21 deep drafted berths All weather Port Round the clock operations Handling multiple cargo, Third position among all Major Ports Best efficiency indicators Pre berthing detention of 0.9 Hrs Average turnover 2.4 Days Berthing on arrival Passenger terminal of international standard First of its Indian Ports. Chennai Port has established the Marine Pollution Management to ensure Protection for Marine life.

EDI connectivity with Customs, Bank, Online Port users Portal established and various port activities under process.

Excellent Rail Connectivity Excellent Road Connectivity

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3.7 BUSINESS OF CHENNAI PORT TRUST

The various documents/forms used in the Commercial Division are

A. DOCUMENTS ON IMPORT SIDE:

1. Import General Manifest: A list of cargoes meant for unloading at the Chennai Port. A copy of IGM, as approved by the Customs Authority, has to be filled by the steamer Agents prior to the arrival of the vessel.

2. Import Tally Sheet: As per sec.42(2) of the Major Port Trusts Act, the Trust issues tally Sheet to the Stemer Agents as a token of receipt of the cargo/ Container from the Vessel. The various types of tally sheets used on the import side are as follows I. Import Tally Sheet for General Cargo Issued u/s 42(2) of the MPT Act 1963, for general Cargoes. Import Tally Sheet for Containers Issued u/s 42(2) of the MPT Act 1963, for general Cargos.

II.

III.

Import FCL container Destuffing Tally Sheet This Tally Sheet is not issued u/s 42(2) of the MPT Act, 1963 as the Trust is not responsible for cargo inside the FCL container. Import LCL Container Destuffing Tally Sheet Issued u/s 42(2) of the MPT Act, 1963 for the cargos dyestuff from LCL containers

IV.

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3. Imports Application: This document is to be filled by the consignee or this clearing agent along with the Delivery Order from the Steamer Agent in Triplicate, for clearance of cargo from the port.

4. Free Days Advice Slip: The section Spud. Of the area concerned issues a Free Days Advice Slip declaring the expiry of free days for the cargos landed from a particular vessel Vehicle Ticket is issued by the Trust for taking delivery of the cargo through customs manned gates.

The following Certificates are issued by the Trust on import side: A Certificate: This is a certificate issued by the trust in respect of the cargos, which are not readily available at the time of Delivery and subsequently traced out B Certificate: B Certificate is issued by the trust for the cargos, which are not manifested but not landed from for delivery. C Certificate: C Certificate will be issued by the Trust for the cargos landed but subsequently but available for deliver

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B. DOCUMENTS ON EXPORT SIDE:

1) Export General Manifest: EGM has to be filled by the Steamer Agents within one week after sailing of Vessel.

2) Export Application: Export application (EA) has to be filled by the exporter or his agent, in triplicate at the time of bringing the cargo inside the port for export purpose.

3) Export Tally Sheet: The Trust issues Tally Sheet for the cargo/containers received for the purpose of loading into the vessels. There are 3 types of Tally Sheets issued on export side as given below

I.

Export Tally Sheet for General Cargos Issued u/s 42(2) MPT Act 1963 for cargos received under Trusts custody Export purpose

II.

Containers Export tally Sheet u/s 42(2) of the PT MPT Act 1963 in respect of Containers received for export purpose

III.

Container stuffing Tally sheet (Export LCL) issued for Stuffed in the container at the Export Container Freight station

Mates Vessel: This is receipt issued by the Captain of the vessel for having taken the cargo on board the vessel.

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3.8 FUTURE PLANS

Second Container terminal with a capacity of 1 million TEUs per annum, developed by PSA SICAL.

Master plan for Port Railway, Realigning Rail and Road network. Dedicated Elevated Expressway from Chennai Port to Maduravoyal upto NH4 has been approved by the Government to enhance the hinterland connectivity. Development of Ro-Ro Terminal and a Multi level car parking facility with a capacity of 5000 cars. Mechanized conveyor system for Coal to handle 9 MT Chennai Mega Container Terminal with a continuous quay length of 2 km with 18-22m side along draft. Capable of handling ultra large container ships carrying over 15000 TEUs. The break water extension from existing outer arm will be utilized to develop deep draft oil berth for handling VLCCs.

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CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

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CHAPTER 4

TABLE 4.1 TABLE SHOWING THE GENDAR OF THE RESPONDENTS

Gender Male Female Total

Frequency 69 31 100

Percent 69.0 31.0 100.0

Valid Percent 69.0 31.0

Cumulative Percent 69.0 100.0

100.0

Source: Primary Data

INFERENCE: Table 4.1 clearly depicts the gender group of respondents. 69% of the respondents are male and the least of 31% were female. It is obvious from the table that a majority of the respondents are male and this may be related to the fact that the nature of the job preferred requires the service of male employees more than that of female employees.

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CHART 4.1

CHART SHOWING THE GENDER OF RESPONDENTS

Gender of Respondents
Female 31%

Male Female

Male 69%

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TABLE 4.2

TABLE SHOWING THE AGE OF THE RESPONDENTS

Age Up to 25yrs 25-30 35-40 Above 45 yrs Total Source: Primary Data

Frequency 67 24 8 1 100

Percent 67.0 24.0 8.0 1.0 100.0

Valid Percent 67.0 24.0 8.0 1.0 100.0

Cumulative Percent 67.0 91.0 99.0 100.0

INFERENCE:

Table 4.2 clearly explains the age of respondents 67% of the respondents fall under the age group 25, 24% of the respondents fall under the age group 25-30, 8% of the respondents fall under the age group 35-40 and only 1 respondent was under the age group of 45 & above. A majority of the respondent are aged up to 25yrs which indicates that they are basically freshers to the job. So, the changes in the polices can be easily incorporated accommodate the statutory provisions as the resistance to change will be much less than in this case.

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CHART 4.2

CHART SHOWING AGE OF THE RESPONDENTS

Age of the Respondents

Up to 25yrs 25-30 35-40 Above 45 yrs Total

33% 50%

12% 4%

1%

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TABLE 4.3 TABLE SHOWING THE SETTLEMENT OF WAGES DONE ON THE BASIS OF DISCUSSION BETWEEN LABOURS UNION AND MAJOR PORT

Opinion Strongly Agree Agree Strongly Disagree Disagree Neutral Total Source: Primary Data

Frequency 1 1 14 55 29 100

Percent 1.0 1.0 14.0 55.0 29.0 100.0

Valid Percent 1.0 1.0 14.0 55.0 29.0 100.0

Cumulative Percent 1.0 2.0 16.0 71.0 100.0

INFERENCE:

Table 4.3 Shows that 1% of the respondents strongly agree, 1% agree, 14% disagree, 55% strongly disagree, 29% of the respondents are neutral. Normally the wage band/structure is done by the management in consultation with the representatives. This helps the plight of workers to be put forward by trade union and see that adequate wage structure is accordingly designed.

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CHART 4.3
CHART SHOWING SETTLEMENT OF WAGES

The Settlement of Wages done on the basis of Discussion between the Labours Union and Major Port
120

100

80

60 Percentage 40

20

0 Strongly Agree Agree Strongly Disagree Disagree Neutral Total

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TABLE 4.4 TABLE SHOWING THE PAYMENT OF SALARIES, ALLOWANCE AND EXPENSES TO OFFICE BEARERS

Opinion Strongly Agree Agree Disagree Strongly Disagree Total Source: Primary Data

Frequency 1 11 40 48 100

Percent 1.0 11.0 40.0 48.0 100.0

Valid Percent 1.0 11.0 40.0 48.0 100.0

Cumulative Percent 1.0 12.0 52.0 100.0

INFERENCE: Table 4.4 pictures the payment of salaries, allowances and expenses to office bearers, 1% of the respondents strongly agree, 11% agree, 40% disagree, and 48% of the respondents strongly disagree. Majority of the respondents highly disagree that donations are not spent for these purposes. These funds of trade union are spent for political purpose for the promotion of the civic and other political objects.

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CHART 4.4 CHART SHOWING PAYMENT OF SALARIES, ALLOWANCES

Payment of Salaries, Allowances and Expenses to Office Bearers

100 90 80 70 60 50 40 30 20 10 0 Strongly Agree Agree Disagree Strongly Disagree Total Percentage

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TABLE 4.5 TO ENSURE FULL EMPLOYMENT

Opinion Strongly Agree Agree Disagree Strongly Disagree Neutral Total Source: Primary Data

Frequency 1 3 16 53 27 100

Percent 1.0 3.0 16.0 53.0 27.0 100.0

Valid Percent 1.0 3.0 16.0 53.0 27.0 100.0

Cumulative Percent 1.0 4.0 20.0 73.0 100.0

INFERENCE: Table 4.5 shows that 1% of the respondents strongly agree, 3% agree, 16% disagree, 53% strongly disagree and 27% of the respondents are neutral. It is obvious that majority of the respondent are strongly disagree that trade union not providing proper employment to its employees at CPT. Many vacancies are not filled by the recognized trade unions.

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CHART 4.5 CHART SHOWING TO ENSURE FULL EMPLOYMENT

TO ENSURE FULL EMPLOYMENT

Neutral

Strongly Disagree

Disagree

Percentage

Agree

Strongly Agree

10

20

30

40

50

60

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TABLE 4.6 TO IMPROVE CONDITIONS AT WORK

Opinion Strongly Agree Agree Disagree Strongly Disagree Total Source: Primary Data

Frequency 4 16 49 31 100

Percent 4.0 16.0 49.0 31.0 100.0

Valid Percent 4.0 16.0 49.0 31.0 100.0

Cumulative Percent 4.0 20.0 69.0 100.0

INFERENCE: Table 4.6 shows that 4% Strongly agree, 16% agree, 49% disagree and 31% of the strongly disagree. The conditions of work include the physical and Psychological conditions. The physical conditions include ventilation, adequate lighting and health measures like water, sanitation and canteen facilities. It is already found from the table that the trade union do not play any role in the employees development. Hence their contribution in providing better conditions of work is not feasible.

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CHART 4.6 CHART SHOWING IMPROVE CONDITIONS AT WORK

Improve Conditions at Work

120 100

80

60 Percentage 40

20

0 Strongly Agree Agree Disagree Strongly Disagree Total

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TABLE 4.7 TO DEVELOP UNITY AMONG WORKERS

Opinion Strongly Agree Agree Disagree Strongly Disagree Neutral Total Source: Primary Data

Frequency 3 2 28 46 21 100

Percent 3.0 2.0 28.0 46.0 21.0 100.0

Valid Percent 3.0 2.0 28.0 46.0 21.0 100.0

Cumulative Percent 3.0 5.0 33.0 79.0 100.0

INFERENCE: Table 4.7 shows that 3% of the respondents strongly agree 2% agree, 28% disagree, 46% strongly disagree and 21% of the respondents are neutral. The table implies that the trade union does not play a vital role in the employee development welfare. Although trade unions are normally formed to represent harmony and unity among workers in CPT, even without trade unions the work forces remain untitled.

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CHART 4.7 CHART SHOWING UNITY AMONG WORKERS

Unity Among Workers

120 100

80

60 100 40 46 28 0 3 Strongly Agree 2 Agree 21 Strongly Disagree Neutral Total Percentage

20

Disagree

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TABLE 4.8 TO PROVIDE VARIOUS SOCIAL SECURITY MEASURES

Opinion Strongly Agree Agree Disagree Strongly Disagree Total Source: Primary Data

Frequency 9 24 48 19 100

Percent 9.0 24.0 48.0 19.0 100.0

Valid Percent 9.0 24.0 48.0 19.0 100.0

Cumulative Percent 9.0 33.0 81.0 100.0

INFERENCE: Table 4.8 shows that 9% of the respondents strongly agree, 24% agree, 485 disagree and 19% of the strongly disagree. It is understood form the above that average 35% of the respondents have a positive opinion about the role of the trade unions in the provisions of social securitys measures. It is hence evident that the company organizational policies provides adequate for the welfare and security of its employees like free/subsidiaries loaning, water, education of the children, insurance facilities etc in respective of the existence of the trade unions.

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CHART 4.8 CHART SHOWING VARIOUS SECURITY MEASURES

SOCIAL SECURITY MEASURES

100 80 60 40 20 0 Strongly Agree Agree Disagree Series1 Strongly Disagree Total Series1

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TABLE 4.9 ENSURE THAT FESTIVAL BONUS /PERFORMANCE LINKED BONUS IS PAID TO MEMBERS

Opinion Strongly Agree Agree Disagree Strongly Disagree Neutral Total Source: Primary Data

Frequency 1 9 22 54 14 100

Percent 1.0 9.0 22.0 54.0 14.0 100.0

Valid Percent 1.0 9.0 22.0 54.0 14.0 100.0

Cumulative Percent 1.0 10.0 32.0 86.0 100.0

INFERENCE:

Table 4.9 shows that 1% of the respondents strongly agree, 9% agree, 22% disagree, 54% strongly disagree and 14% of the respondent neutral. Festival bonus is paid as a mandatory effort by the government authorities themselves. Performance linked bonus is also normally paid as a motivating force to the employees. It is part of the organizational policy to increase the morale of the employees and hence does not require the role of trade to intervene in this account.

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CHART 4.9 CHART SHOWING BONUS PAID TO THE MEMBERS

Performance Linked Bonus is paid to members

Neutral

14

Strongly Disagree

54

Disagree

22

Percentage

Agree

Strongly Agree

10

20

30

40

50

60

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TABLE 4.10

Particulars Fire Extinguisher Emergency Exit

Strongly Agree 30 40

Agree 45 36

Disagree 10 15

Strongly Disagree 10 7

Neutral 5 2

Weighted Average 12 27

WEIGHTED AVERAGE = WXI Xi

Calculation for the Fire Extinguisher

30*5+45*4+10*3+10*2+5*1 Fire Extinguisher = ----------------------------------------- = 5+4+3+2+1

385 ---------- = 12 15

Calculation for the Emergency Exit

40*5+36*4+15*3+7*2+2*1 Emergency Exit =

405 ---------- = 27 15

---------------------------------------- = 5+4+3+2+1

Interpretation: From the above table it is inferred that the awareness and provision of emergency exit is Rank I and awareness and availability of fire extinguisher is Rank II.

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CHI SQUARE : 4.11

Table Showing Relationship between the nominated hospital and permission for treatment.

Particulars Strongly Agree Agree Disagree Strongly Disagree Neutral Total

No. of. Respondents 34 40 11 12 3 100

Null Hypothesis [Ho): There is no significant between the nominated hospital and permission for treatment. Alternate Hypothesis [H1]: There is a significant between the nominated hospital and permission for treatment.

FORMULA 2 = (Oi Ei)2/Ei Oi = Observed frequency Ei = Expected frequency

Relationship between the nominated hospital and permission for treatment.

Oi 34 40 11 12 3 20 20 20 20 20

Ei 14 20 -9 -8 -17

(Oi Ei) 196 400 81 64 289

(Oi Ei)2

(Oi Ei)2/ Ei 9.8 20 4.05 3.2 14.45 51.5

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Calculated value of chi square test Number of Degree Of Freedom

= 51.5 = 5-1 =4

Table value of chi square test for 4 degree of freedom at 5% level = 9.488 Calculated value of Chi square test = 51.5

51.5<9.488 Calculated value < tabulated value

In ference:

Hence null Hypothesis (H0)is rejected and alternative Hypothesis (H1) is accepted.

Interpretation:

It is inferred that the Chi square is greater than the tabulated value. So, the null hypothesis is rejected and alternative hypothesis is accepted for the relationship between the nominated hospital and permission for the treatment.

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TABLE 4.12 Table Showing the Clean and Hygienic and the Quality of food in Canteen. Clean and Hygienic (X) 35 20 15 17 13 TOTAL Quality of Food (Y) 25 45 15 15 0

R1 1 2 4 3 5

R2 2 1 3.5 3.5 5

D 1 1 0.5 -0.5 0

D2 1 1 0.25 0.25 0 2.5

R = 1-6[d2+m(m2-1/12] ------------------------N(N2-1) = 1-6[2.5+6/12] ---------------------5(25-1) = 1-6[2.5+0.5] -------------5(24) = 1-6[3]/120 = 1-18/120 = 1-0.15 = 0.85

Interpretation: From the above table shows that there is a positive correlation between the clean and hygienic and the quality of food in canteen. When R is 0.85 there is a complete agreement in the order of the rank are in the same direction.

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TABLE 4.13 TABLE SHOWING THE HEALTH IMPROVEMENT AND AMBULANCE FACILITIES

Health improvement (X) 26 37 15 13 9

Ambulance facilities (Y) 45 12 30 13 0

R1 2 1 3 4 5

R2 1 4 2 3 5

D 1 3 1 1 0 Total

D2 1 9 1 1 0 12

R = 1-6 [d2+m(m2-1)] 12 N (N2-1)

1-6 [12+2(22-1) 12 5(52 - 1) 1- 6 [12+0.5] 5(24) 1 6 (12.5) 120

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1 75 120 = 1 0.625 = 0.38

Interpretation: From the above table shows that there is a positive correlation between the health improvement and ambulance facilities. When R is a complete agreement in the order of the rank are in the same direction.

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CHAPTER 5

FINDINGS AND SUGGESTIONS

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CHAPTER 5

5.1 FINDINGS
It is obvious from the table that a majority of the responds are male and this may be related to the fact that the nature of the job preferred requires the service of male employees more than that of female employees. A majority of the respondent are aged up to 25yrs which indicate that they are basically freshers to the job. So, the changes in the polices can be easily incorporated accommodate the statutory provisions as the resistance to change will be much less than in this case.

The most of the respondents have 10-15 years of experience, this indicates that the employees are freshers and can be molded to the organisations expectation. 33% of the respondentss remains neutral its may be constructed as the back of knowledge about the need, role and scope of the conciliation officers. Hence, adequate knowledge and this to be impacted to the respective employees.

Normally, the wage band/structure is done by the management in consultation with the representatives. This helps the plight of workers to be put forward by trade union and see that adequate wage structure is accordingly designed. It is obvious from the tables that funds collected towards trade union are not spent for educational, social or religious purpose for which funds are used.

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 Welfare of the employees is already looking after CPT does not require representation from trade union concerned. The conditions of work include the physical and psychological conditions. The physical conditions include ventilation, adequate lighting and health measures like water, sanitation and canteen facilities.

Festival bonus is paid as a mandatory effort by the government authorities themselves. Performance linked bonus is also normally paid as a motivating force to the employees. It is part of the organizational policy to increase the morale of the employees and hence does not require the role of trade unions to intervene in this account. It is understand from the table the cleaning process is not done properly in organization as the majority of respondents feel that the surrounding are not clean and hygienic.

It is interesting to note from the table there is a equal representation both in favor and against the provision of drinking water facilities. The researcher is hence to draw any appropriate interpretation from this conflicting and periodical response.

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5.2 SUGGESTIONS:

The general work place in Chennai Port Trust has been opined as being unclean. Hence, CPT to take initiatives to ensure that the word place is cleaned on a daily basis and disposes off the periodically. Similarly, appropriate lighting to be provided for the employees in the work place to avoid accidents and increase productivity.

Pure and hygienic water cooler facilities to be provided for the employees especially to face their needs in summer. Social Welfare measures like education and festivals allowances etc, to be given for the benefit of employees.

The canteen to be operating throughout the shift on a cost effective basis to the employees in a clean atmosphere. Dependents can also be entitled with the awareness of the medical facilities in Chennai Port Trust

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5.3 CONCLUSION

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APPENDIX

QUESTIONNAIRE

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EXPORT FINANCE AND ASSISTANCE QUESTIONNAIRE

1. NAME 2. AGE Upto 25 yrs 25-30 yrs 35-40 yrs Above 45 yrs 3. Gender: Male 4. Years of Experience: Upto 10 yrs 10-15 yrs 15-20 yrs Above 20 yrs

: :

Female

SA-Strongly Agree: A-Agree: DA-Disagree: SDA-Strongly Disagree N-Neutral

5. The settlement of wages done on the basis of discussion between labours Union and Major Ports. SA A DA SDA N

6. Payment of Salaries, allowance and Expenses to office bearers. SA A DA SDA N

7. The unions in Port Trust are recognized by the management SA A DA SDA N

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8. To ensure full Employment. SA A DA SDA N

9. To Develop unity among the workers. SA A DA SDA N

10. To improve the conditions at work SA A DA SDA N

11. To provide various social security measures. SA A DA SDA N

12. Ensure that festival bonus/performance linked bonus is paid to Members SA A DA SDA N

13. The Canteen is Clean and Hygienic SA A DA SDA N

14. The Food provided in priced economically/affordable. SA A DA SDA N

15. The quality of food in the canteen is up to with the standards. SA A DA SDA N

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16. First Aid SA A DA SDA N

17. Ambulance SA A DA SDA N

18. First Aid boxes are available for use always SA A DA SDA N

19. Awareness and availability of Fire Extinguisher. SA A DA SDA N

20. Awareness and provisions of Emergency Exit. SA A DA SDA N

21. Medical Allowance is Satisfactory SA A DA SDA N

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BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOK REFERENCE:
1. Kothari.C.R., Research methodology methods and techniques, New age International Publishers, 2nd edition, New Delhi, 2006. 2. Richard Levin and David., Statistical for management, Vikas Publications, 3rd edition, New Delhi, 2002. 3. Joseph F.Healey, Statistics, Wordsworth Publishing Company, 3rd edition. 4. P.R.Vittal, Business Statistics and Operations Research, Margham Publications, 3rd edition. 5. G.V.Shenoy and Madant Pant, Statistical Methods, Macmillan India Ltd., 1st edition.

WEBSITE REFERENCE:

SEARCH ENGINE
1. http://www.yahoo.com 2. http://www.ithrnow.com 3. http://www.workforce.com

CORPORATE WEBSITE
www.Chennaiporttrust.com

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