1. Study on foreign bank charges and nature of discrepancies Presented by: GursharanKaur MBA-2B 94972238270
2. Largest industry when it comes to employment Contributes about 34% of total exports India is the second largest producer of cotton yarns and fifth in production of synthetic fibres and yarns.
3. Segments of Textile Industry Processes used in Textile Industry Leading Textile mills
6. Vardhman aims to be world class textile organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and customer service based on creative combination of state-of-the-art technology and human resources. Vardhman is committed to be responsible corporate citizen.
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8. Largest exporter of cotton yarns. Largest range of textile products. Second largest producer of sewing thread in the country. First in Indian textile industry to get ISO certification in yarns and sewing thread.
21. Foreign Bank Charges Definition When Exporter sends documents to Customer’s bank in Foreign country,Certain charges are deducted by the customer’s bank on realization of documents.These are Foreign Bank charges
26. OBJECTIVES To understand each and every Foreign Bank Charge and to know their nature that is on which criteria are these charges levied.
27. CONT… . To understand the nature of discrepancies & their charges levied by foreign banks To justify amount paid as a bank charge and seek further saving potential of the paid expenses for future dealings of the Group with the banks
59. Hongkong market In cases of the discrepancy such as “late shipment”, it should be taken care of that the production schedules are met with and accordingly the shipment is made. In the case of“documentsnot as per LC”, the documentation team can be asked to be a little more vigilant and keep the customer abreast of various problems faced during the same.
60. Korean market High number of intermediaries was of main concern here, so it was recommended to open an LC through a bank having lesser number of intermediaries. Customer wise bank was recommended in the study in this light. In case of Sea-A-Trading,LC should be opened through Korean Exchange Bank, Citi Bank, as it levies the acceptance commission and discount charges on the buyer, less no. of intermediary banks.
61. In Handsome Textiles LTD., LC through Shinhan Bank, as it levies the acceptance commission and discount charges on the buyer, less no. of intermediary banks, less discrepancy charges. Hostar Company should open its LCs with CitiBank ,as it has less no. of intermediary banks,low acceptance commission.
62. China market In the case of discrepancies such as “documents not as per LC”, the documentation team can be asked to be a little more vigilant and keep the customer abreast of various problems faced during the same
