3. COMPANY PROFILE
Commenced on 1996
More than 200 consignments were sent to various countries.
and main Countries were Cananda, Switzerland, Germany and
Malaysia
the main objective of the company is to export various tradional
items to indian people in foreign countries for traditional and ritual
purposes
Annual Turnover: 60Lakhs
they export sarees, apparels, antiques ,ornaments, and for the
indians in foreign countries..
5. FOREIGN EXCHANGE MANAGEMENT
My role:
Operations related to exchange value of currency while exporting
the goods to the foreign countries and their hedging.
For Eg: If a Salwar khameez costs Rs.550,Convert it in to U.S$.
Suppose US $ rate is now Rs:62.11,
Rate in dollars for 1 Salwar khameez= 550/62.11
= 8.85 dollars
= 9. dollars.
When preparing invoice; Quantity U.S.dollar/piece Total amount
550 9.00 4950.00
6. CAUTIONS FOR PACKING
In Packing;Each and every bale(parcels) contents should be declared very
clearly without missing any content.
o Misdeclaration will be punishable.
Fumigation Certificate. It should be provided for each and every container
and loose cargo.
Numbers should be clearly mentioned on every package and package
list.(same).
Parcel name should be clearly mentioned on every package.
Total weight should be mentioned in the invoice(with Net Weight)
7. DEFINITION OF FOREIGN EXCHANGE RISK
Foreign Exchange Risk is commonly defined as
“The possibility of loss or profit resulted from
unexpected exchange rate changes.”
10. REASONS TO HEDGE
Hedging reduces the risk of the extraordinary costs
of extreme financial distress.
Hedging facilitates the execution of complex
operational and financial plans.
12. RISK MANAGEMENT IN EXPORT-IMPORT BUSINESS
Risk is a fact of business life, more so of international business.
The Management of International business is the management of risk.
No manager can make a strategic business decision or enter into important
business transaction without a full evaluation of the risks involved.
Many of the best business plans have been ruined by a miscalculation or a
mistake, or an error in judgment that could have been avoided with proper
planning.
Many types of risks can be insured against, including the risk of damage to
the goods at sea.
13. TRADING IN FOREIGN EXCHANGE
Currency Trading
Tradable
Currency
Non-Tradable
Currency
For a purchase of currency, there will be a tax of 0.1236%.
Restrictions while travelling.
14. ECGC
Export Credit Guarantee Corporation.
Insurance group.
Provides insurance to only high level
exports.
Insurance should be claimed for each and
every consignment for our safety.
15. PROFIT & LOSS IN CURRENCY
When the currency value is lower, we get extra
profit.
When currency value is higher, we will get less
money and end up in loss.
If riots occur in the country of destination, there is a
chance where the value of the currency falls. And
therefore we could gain profit.
16. FINDINGS
Name of the firm was not noticeable
Inadequate number of workers
Inadequate promotion
There was a delay on delivery of consignments
17. SUGGESTIONS
Nameboard of the should be made more
conspicuous.
More staff members are required in the firm
Promotional activities should be enhanced
Consignments should be delivered on proper time.
18. CONCLUSION
As an intern I would like to express my gratitude to ASAN BUSINESS
SCHOOL for giving an opportunity to work at Siva Silks Exports. And I
conclude my report by saying that Foreign Exchange Management and
Risk Management are the vital process in exporting. As there is a burden
of risk involved in exporting,we need to manage it efficiently.
19. BIBLIOGRAPHY
Siva Silks Exports,Chennai
Rafiz Foreign exchange
Foreign Exchange and Financing of Foreign Trade-
Dr.S.Sankaran