International Banking 4th unit notes of Principles and Practices of Banking As per VTU university syllabus

2. Types of BanksTypes of Banks
• Indian Banks Abroad
o Branches
o FEMA Act
o Foreign Subsidiary
o International Banking Facility
• Foreign Banks in INDIA
o Branches
o Agency Offices
o INDIAN Subsidiary

3. Regulating InternationalRegulating International
BankingBanking
• In the US, monitoring/regulating of US banks is done
by either the Fed, OCC or FDIC.
• British Banks in England are regulated by the Bank of
England.
• Who regulates British banks in the US or US Banks in
Britain?

4. Bank For InternationalBank For International
SettlementsSettlements
• Established in 1930 to handle German WWI
reparations, the BIS has become a center for
international cooperation.
o Played a central role in the Bretton Woods Exchange Rate System
o Integral in the Establishment of the Euro
• The BIS is like a central bank for central banks.

5. Defining The Foreign Exchange MarketDefining The Foreign Exchange Market
• The Foreign Exchange Market can be defined in
terms of specific functions, or the institutional
structure that:
• (1) Facilitates the conversion of one country’s
currency into another.
o Through the buying and selling of currencies.
o Allows global firms to move in and out of foreign currency as
needed.
(2) Sets and quotes exchange rates.
o This is the ratio of one currency to another.
o These rates determine costs and returns to global businesses.
• (3) Offers contracts to manage foreign exchange

6. Quick Review of Market CharacteristicsQuick Review of Market Characteristics
• World’s largest financial market.
o Estimated at $3.2 trillion dollars per day in trades.
• NYSE-Euronext currently running about $40 billion per day.
• Market is a 24/7 over-the-counter market.
o There is no central trading location.
o Trades take place through a network of computer and
telephone connections all over the world.
• Major trading center is London, England.
o 34% of all trades take place through London (New York
second at 17%).
• Most popular traded currency is the U.S. dollar.
o Accounts for 86% of all trades (euro second).
• Most popular traded currency pair is the U.S. dollar/Euro.
o Represents 27% of all trades (dollar yen second at 13%)
• Currencies are either traded for immediate delivery
(spot) or some specified future delivery (forward).

7. Foreign Exchange MarketForeign Exchange Market
• Organisational setting within which individuals,
governments and banks buy and sell foreign
currencies
• Only a small fraction of daily transactions in foreign
exchange involve trading of currency
• Most foreign exchange transactions involve transfer
of bank deposits

8. Definition of foreignDefinition of foreign
exchangeexchange
• Deposits, credits and balances payable in
foreign currency
• Drafts, travellers’ cheques, letter of credit or
bill of exchange expressed or drawn in Indian
currency but payable in foreign currency
• Drafts, travellers’ cheques, L/Cs, etc. drawn by
banks, institutions or persons outside India but
payable in Indian currency
• The above definition is as per FEMA (1999)

9. Exchange rate (1)Exchange rate (1)
• Denotes the price or the ratio or the value at which
one currency is exchanged for another
• Exchange rate is very dynamic
• The foreign exchange market is round-the-clock
market due to different time zones
• Major participants- central banks, commercial
banks, forex brokers, corporations, individuals

10. Factors affecting exchangeFactors affecting exchange
raterate
• Major banks that act as market-makers always give
two-way quotes; gives depth and volume to the
market
• Fundamental reasons
• Technical reasons
• Speculation

11. Fundamental reasonsFundamental reasons
• Balance of payments->surplus->appreciation
• Growth rate of the economy-> higher growth-
>depreciation of currency
• Fiscal policy-> financing of fiscal deficit influences
exchange rate
• Monetary policy->loose monetary policy->
depreciation of exchange rate

12. Technical reasonsTechnical reasons
• Freedom or restrictions on capital movements can
affect exchange rates to a large extent
• Among other factors there are:
o Huge trade surpluses of oil exporting
countries
o Capital moving from low-yielding
currencies to high yielding currencies
(interest differential)

13. SpeculationSpeculation
• Self-fulfilling prophecies
o Anticipation of depreciation of a currency can cause dealers to sell that
currency
• Speculation serves to provide depth and liquidity to
the forex market
• Acts as a cushion as well- contrarian traders exist in
the market

14. Types of exchange rate (1)Types of exchange rate (1)
• Ready/cash- Settlement of funds on the same day
(date of the deal).
• Tom- Settlement of funds takes place on the next
working day of the date of the deal
• Spot- Settlement of funds takes place on the
second working day following the date of the deal

15. Types of exchange rate (2)Types of exchange rate (2)
• Forward- Delivery takes place on any day after the
date of the deal
• In the forex market all rates that are quoted are
generally spot rates
• When delivery takes place beyond the spot date
then it is a forward transaction and the forward rate
is applicable
• Forward rate = Spot rate + Premium (- discount)

16. Forward rateForward rate
• If the forward value of a currency is higher
than the spot value the currency is said to be
at a premium
• If the above is reversed the currency is said to
be at a discount
• The forward premium/discount is based on
interest rate differentials of the two currencies
involved
• Direct and indirect quotes of exchange rate-
direct quote, local currency is variable

17. Quotes of Exchange RateQuotes of Exchange Rate
• Cross rates- To obtain rates for a particular currency
pair when they are not available directly
• Bid and offered rates- In USD/INR 64.40/65 the bank
is bidding for USD at Rs. 64.40 and offering to sell
USD at Rs. 65

18. Exchange ArithmeticExchange Arithmetic
• All foreign exchange calculations have to be
worked with care and accuracy and several
rules have to be kept in mind
• Chain rule- is used to attain comparison or
ratio between two quantities which are linked
together through another or other quantities.
Equation in the form of a chain is derived.

19. Example of a Chain RuleExample of a Chain Rule
(1)(1)
• Query: If we have to remit French Francs to France
from India how do we go about it? (We have to
arrive at cross rates between FRF and INR.)
• Mumbai interbank market:
o US $ 1 = Rs. 64.2550
• London Market
o US $ 1 = FRF 0.18/0.185

20. Chain rule (2)Chain rule (2)
• At what rate can one buy FRF against rupees?
• How many Rs----- = FRF 1?
• FRF 5.56 = US $ 1
• US $ 1 = 64.2650, therefore,
• FRF 5.56 = US $ 1 = Rs. 64.2650
• Hence, FRF 1 = 64.2650/5.56
• Or FRF 1 = Rs. 11.55

21. Forward Rate (1)Forward Rate (1)
• Value date: It is customary, in foreign
exchange market, to quote a rate to do the
deal but exchange the currencies not on the
same day but generally afterwards.
• Forward rate: Has two components
o Spot rate
o Forward points or forward differentials
• Forward rate is the rate when the value of the
deal is fixed beyond the spot date i.e. beyond
the second working day after the deal

22. Forward Rate (2)Forward Rate (2)
• Forward transactions are necessary in the
foreign exchange market as they serve
number of purposes like:
o One can hedge or cover an existing future financial,
commercial or trade related exchange risk
o These types of deals, in combination with spot deals,
are used for money market operations through
‘swap’ transactions
o Taking a view of the market, these can be used for
speculation

23. Forward rate (3)Forward rate (3)
• When a currency is costlier in the future
(forward) as compared to the spot, the
currency is said to be at a premium vis-à-vis
another currency
• In ‘direct rate’ premium is added to both the
buying and selling rate whereas discount is
deducted
• In ‘indirect rate’ premium is deducted and
discount is added to the buying and selling
rates

24. Foreign exchangeForeign exchange
transactions (1)transactions (1)
• Arbitrage: Is an operation by which one can make
risk free profit by undertaking offsetting transactions.
o Can be in interest rates: borrow in one centre and lend in another
o Can be in exchange rates: Buy a currency in one market and sell in
another
• Arbitrage keeps exchange rates uniform in all
markets

25. Foreign ExchangeForeign Exchange
Transactions (2)Transactions (2)
• Merchant rates: Quotes offered to merchants
(importers, exporters) by banks.
• Inter-bank rates: The rates quoted by banks
for dealing in the inter-bank market.
• Merchant quotations: In India all merchant
quotations for foreign currencies shall be in so
many rupees for one unit of foreign currency
except for Japanese Yen, Italian Lira and
Belgian Franc (Rs/100 units of the currency)
• All quotes are in four decimal places with the
last two digits in the multiple of 25

26. Modes of remittances (1)Modes of remittances (1)
• Telegraphic Transfers (TT) of funds are done
from one centre to another by way of
instructions through telex, telegram or SWIFT
(Society for Worldwide Interbank Financial
Transfer). Of late SWIFT is becoming popular
• Mail Transfer (MT) of funds is done by way of
instructions sent by mail. An MT is an order in
writing on the correspondent bank/branch
abroad to pay the beneficiary the sum
mentioned

27. Modes of Remittances (2)Modes of Remittances (2)
• Demand draft (DD): A DD is an order in writing
on the correspondent bank/branch abroad
to pay the beneficiary the sum mentioned
therein.
• Fedai prescribed types of rates of merchant
transactions:
o TT (buying)- clean inward remittances
o Bill (buying)- purchase/discount of export bills
o TT (selling) clean outward remittances
o Bill (selling) remittance for import bills

28. RBI/FEDAI GuidelinesRBI/FEDAI Guidelines
(1)(1)
• RBI has issued Authorised Dealers (AD) licences to
banks, all India financial institutions and a few co-
operative banks to undertake foreign exchange
transactions in India
• It has also issued Money Changer licences to a
large number of established firms, companies,
hotels, shops, etc.

29. RBI/FEDAI GuidelinesRBI/FEDAI Guidelines
(2)(2)
• Money changers help facilitate encashment
of foreign currencies of foreign tourists
• Entities authorised to buy and sell foreign
currency notes, coins and travellers’ cheques
are called full fledged money changers
• Those authorised only to buy are called
restricted money changers

30. RBI/FEDAI GuidelinesRBI/FEDAI Guidelines
(3)(3)
• FEDAI (Foreign Exchange Dealers’ Association
of India) is a non-profit making body formed
in 1958 with the approval of RBI
• Its members are authorised dealers and it
prescribes guidelines and rules of the game
for market operations, merchant rates,
quotations, delivery dates, holidays, interest
on defaults, etc.
• FEDAI also advises RBI on market related issues
and supplements RBI on strengthening the
market

31. 1/2004Anti-Money Laundering 31
DEFINITIONDEFINITION
CORRESPONANT BANKINGCORRESPONANT BANKING
• Accounts Maintained On Bank’s Behalf
• Between Domestic Banks
• Between Domestic Banks and Foreign Banks

32. 1/2004Anti-Money Laundering 32
o International trade and investment
o Settlement purposes
o Funds transfer activity
o Clearing of foreign items
o Jurisdictions where bank has no presence
Legitimate BusinessLegitimate Business
PurposesPurposes

33. 1/2004Anti-Money Laundering 33
POTENTIAL ANDPOTENTIAL AND
UNIQUE ISSUESUNIQUE ISSUES
• Non-Legitimate Purposes
o Conduit For dirty money
o Gateway to the US financial system
– Foreign bank
corrupt
poorly regulated
poorly managed
weak or nonexistent AML controls

34. 1/2004Anti-Money Laundering 34
MONEY LAUNDERINGMONEY LAUNDERING
VULNERABILITIESVULNERABILITIES
• Lax Due Diligence
• Nested Correspondents
• Correspondent Banker or Relationship Manager
• Bank Secrecy Laws
• Weak AML Laws
• Cross Border Difficulties

35. 1/2004Anti-Money Laundering 35
HIGH RISK PRODUCTSHIGH RISK PRODUCTS
AND SERVICESAND SERVICES
• Funds Transfer
• Pouch Activity
• Cash Letter
• Payable Through Accounts

36. 1/2004Anti-Money Laundering 36
HIGH RISK PRODUCTS ANDHIGH RISK PRODUCTS AND
SERVICES: FUNDS TRANSFERSERVICES: FUNDS TRANSFER
• Key Activity
• Failure to Monitor
• Manual Reviews
• High Volume

37. 1/2004Anti-Money Laundering 37
HIGH RISK PRODUCTS ANDHIGH RISK PRODUCTS AND
SERVICES: POUCH ACTIVITYSERVICES: POUCH ACTIVITY
• Common Carrier
• Currency
• Monetary Instruments
• Documents
• Financial Institution
• Individual

38. 1/2004Anti-Money Laundering 38
HIGH RISK PRODUCTS AND SERVICES:HIGH RISK PRODUCTS AND SERVICES:
PAYABLE THROUGH ACCOUNTSPAYABLE THROUGH ACCOUNTS
• Traditional Foreign Correspondent
Bank Account
o No access by foreign customers
o Differs from PTA sub-account holders
• Foreign Bank Uses Traditional Foreign
Correspondent Bank Account as PTA
o No information on ultimate users
o Potential for ML and OFAC violations

39. 1/2004Anti-Money Laundering 39
DUE DILIGENCEDUE DILIGENCE
• Noteworthy Due Diligence Failures
o Nested respondent banks
o Non-credit relationships

40. 1/2004Anti-Money Laundering 40
ENHANCED DUEENHANCED DUE
DILIGENCEDILIGENCE
• Factors to Consider
o Purpose
o Location
o Bank license
o AML programs
o Regulation and supervision

41. 1/2004Anti-Money Laundering 41
ENHANCED DUEENHANCED DUE
DILIGENCEDILIGENCE
• Risk Management
o Perceived risk
o Availability to third parties
o Compliance program
o SAR detection and reporting
o Monitoring

42. NRO –ACCOUNTNRO –ACCOUNT
• Ordinary none-resident account in rupees.
• The existing accounts of any Indian National can be
designated as Ordinary Non-Resident Accounts, upon your
NRI status.
• these accounts can also be opened with initial deposits paid
into any bank or post office (saving a/c) authorized to open
Non-Resident accounts.
• NRO account can be of any type: saving, current or Fixed
Deposit.
• Interest payable on NRO accounts is the same as on resident
accounts. They vary from bank to bank as they have been
freed from RBI regulation. You can also have a joint account
with residents in India.
• NRO accounts may be re-designated as resident accounts
when the account holder becomes a resident in India.

43. DISADVANTAGES OFDISADVANTAGES OF
NRO:NRO:
• Interest earned on balances in NRO Accounts is not
exempted from Indian Income tax. Instead income tax is
deducted at source (TDS) i.e. at the time of payment of
interest by the bank.
• Balance held in NRO account can neither be repatriated. No
remittance in foreign currency is allowed without prior
approval of Reserve Bank as well. So overall, the money stays
'as is' in India.

44. FCNR ACCOUNT:FCNR ACCOUNT:
• Foreign Currency (Non Resident) Account (FCNR A/C)
• FCNR A/C is maintained only in term deposit. The account
can be maintained only in Pound, Sterling, U.S. dollar,
Deutsche Mark and Japanese Yen.
• The interest and the repayment of the deposit is also made in
the same foreign currency in which the account is
maintained.
• The depositor may at his own will, obtain repayment in Indian
rupees, converted at the buying rate on the date of
repayment.
• Deposits under this scheme are held for the following period: 6
months and above, but less than 1 yr-1 yr and above but less
than 2 yrs-2 yrs and above but less than 3 yrs-3 yrs only.
• Premature withdrawal is allowed, but there will be a penalty.
• Non-Resident Account holders can grant power of attorney or
such other authority to residents in India for operating their
FCNR(B) accounts in India.

45. NRE ACCOUNTNRE ACCOUNT
• Persons of Indian nationality or origin resident abroad may
open, with authorized banks in India, Non-resident (External)
Accounts (NRE Accounts), designated in rupees.
• These accounts can be maintained in the form of savings,
current or term deposit accounts.
• Opening of NRE Accounts jointly in the names of two or more
non residents is permitted provided all the account holders
are persons of Indian nationality or origin.
• For opening these accounts, the funds are required to be
remitted to India through
a). proceeds of foreign exchange remittances from
abroad through banking channels in an approved manner.
b).proceeds of foreign currency notes and traveler
cheques brought into India by the non-resident while on a
temporary visit to India.
C).Transfer from an existing Non-Resident (External) FCNR
account of the same person.

46. o Proceeds of remittance arranged by the account holder
through banking channels from any country can be
credited to this account.
o Similarly, income from the account holder’s investment
from the funds in the account can be credited to it, except
in cases where the investments are permitted on non-
repatriable basis.
o Remittances from the account to the country of residence
of the account holder or any other country are freely
allowed.
o Authorized dealers may allow operations on NRE Accounts
by persons resident in India in terms of Powers of Attorney
(Annexure 14.5) or other appropriate authority granted in
their favor of non-resident account holders, provided the
powers are restricted to withdrawals for local payments.
o The resident power of attorney holder cannot repatriate
funds held in accounts outside India under any
circumstances or make payment of gifts on behalf of the
account holder.

47. o Immediately upon return of the account holder to India
and on his becoming resident in India, NR (E) account will
be redisignated as resident rupees account or converted
to RFC account as per the option of the account holder.
o However, if the account holder is only on a short visit to
India, the account will continue to be treated as NR (E)
account even during his stay in India.
o In respect of funds held in fixed deposits in NR(E) Accounts,
interest will be payable at the rate originally fixed, provided
the deposit is held for the full even after conversions into
resident account.
o The NRO account can't be converted into NRE. Also funds
can't be transferred from NRO to NRE account without a
special permission from RBI and proof of all existing funds
required, which is a complex procedure than opening a
new NRE account.

48. ADVANTAGES OF NREADVANTAGES OF NRE
ACCOUNTACCOUNT
1. Term deposits for one year and above made by non-
residents carry interest at rates higher than those available
to residents in India.
2. The interest on deposits and any other income accruing on
the balance in the accounts are free of Indian Income-tax.
3. The balances in the accounts are free of Wealth-tax.
4. The entire credit balance (inclusive of interest earned
thereon) can be repatriated outside India at any time
without reference to the Reserve Bank.
5. Local disbursement from the accounts can be made freely.
6. Purchases of Units of Unit Trust of India (UTI), Central and
State Government Securities and National Plan/Savings
Certificates can be made freely from the balances in these
accounts.

49. 7. Sale proceeds/maturity proceeds/repurchase price of Units
of UTI, securities or certificates originally purchased out of
the funds in the account can be freely credited to these
accounts by banks, without reference to the Reserve Bank.
8. Account holders are supplied special series of cheques
forms for operations on these accounts.
9. Account holders can avail of loans/overdrafts from banks
against security of fixed deposits in their NRE accounts.
10. No need to joint account with an Indian resident.

50. DISADVANTAGES OFDISADVANTAGES OF
NR(E) ACCOUNTSNR(E) ACCOUNTS
1. NR (E) accounts are opened in Indian rupees and all foreign
exchange remittances received for credit of those
accounts are first converted to Indian rupees at the buying
rates by the banks. Any withdrawal in foreign currency will
be permitted by the bank by converting Indian rupees in
the account to foreign currency at the selling rate. This
conversion loss is to be borne by the account holder.
2. Exchange rates are subject to fluctuation on day to day
basis and Indian rupee has depreciated against all major
foreign currencies in recent past. Balances held in Indian
rupees in NR (E) accounts are thus exposed to exchange
fluctuation risk

51. Comparison of threeComparison of three
account schemeaccount scheme
Particulars Non-Resident
Ordinary Rupee
Account Scheme
[NRO Account ]
Non-Resident
(External)
Rupee
Account
Scheme
[NRE Account
Foreign
Currency
(Non-
Resident)
Account
(Banks)
Scheme
[FCNR (B)
Account]
Who can
open an
account
Any person resident
outside India (other than a
person resident in Nepal
and Bhutan). Individuals /
entities of Bangladesh /
Pakistan nationality /
ownership as well as
erstwhile Overseas
Corporate Bodies require
prior approval of the
Reserve Bank.
NRIs (individuals /
entities of
Bangladesh / Pakistan
nationality/ownership
require prior approval
of RBI)
NRIs (individuals /
entities of
Bangladesh/
Pakistan nationality/
ownership require
prior approval of
RBI)

52. Joint account
May be held jointly with
residents
In the names of two
or more non-
resident individuals
provided all the
account holders are
persons of Indian
nationality or origin.
In the names of two or
more non-resident
individuals provided all
the account holders are
persons of Indian
nationality or origin.
Nomination Permitted Permitted Permitted
Currency in
which account
is denominated
Indian Rupees Indian Rupees Pound Sterling, US Dollar,
Japanese Yen, Euro,
Canadian Dollar and
Australian Dollar
Repatriablity Not repatriable except for
the following:
i) current income ii) up to
USD 1 (one) million per
financial year (April-March),
for any bonafide purpose,
out of the balances in the
account, e.g., sale
proceeds of assets in India
acquired by way of
purchase/ inheritance /
legacy inclusive of assets
acquired out of settlement
subject to certain
conditions.
Repatriable Repatriable

53. Type of
Account
Savings, Current,
Recurring, Fixed
Deposit
Savings, Current,
Recurring, Fixed
Deposit
Term Deposit only
Period for
fixed
deposits
As applicable to
resident accounts
At the discretion of the
bank
For terms not less than
1 year and not more
than 5 years.

54. OTHER IMPORTANTOTHER IMPORTANT
QUESTIONS AND ANSWERS.QUESTIONS AND ANSWERS.
1. How do NRE and NRO accounts differ?
 Funds remitted from overseas sources or local funds that
would otherwise have been sent to the accountholder abroad can
instead be transferred to NRE Accounts. On the other hand, local
funds that aren’t eligible to be remitted abroad must be credited to
an NRO account.
2. Can you transfer funds from an NRE to an NRO account and
vice versa?
 It’s easy to transfer funds from an NRE to an NRO
account. But it’s not possible to transfer funds from an NRO account
to an NRE account. Once you transfer funds from an NRE to an NRO
account, the amount is non-repairable. Consequently, you cannot
transfer it back.

55. 3. What’s the difference in the tax treatment for interest earned on an
NRE and an NRO account?
 The interest earned on any type of NRO bank as well as
the credit balances in this kind of account are taxed under the account
holder’s tax bracket. On the other hand, interest earned on the NRE account
is totally exempted from income tax, and the credit balances in the account
don’t attract any wealth tax. Any gift given to a close relative doesn’t attract
gift tax.
 NRE and NRO accounts are two different types of rupee
accounts permitted by the Government of India for NRIs. Have you tried
opening either of these accounts? With which bank did you open your
account? How did you decide which one to go for?

56. LETTERS OF CREDITLETTERS OF CREDIT
B. DEFINITION
1. a letter addressed to the seller,
2. written and signed by a bank,
3. who acts on the buyer’s behalf.
-Bank promises to pay drafts,
provided seller performs
exactly.
56

57. LETTERS OF CREDITLETTERS OF CREDIT
C. USUAL CONDITIONS:
1. Seller submits draft with documents.
a. Documents
1) negotiable bill of lading
- can be assigned
2) insurance certificate
3) commercial invoice
57

58. LETTERS OF CREDITLETTERS OF CREDIT
Advantages to the ExporterAdvantages to the Exporter
• Credit risk eliminated
• Reduces exchange
rate and political risk
• No Need for Credit
Check
• Requirements to pay
are well-known
• Preshipment risk
avoided
• Facilitates financing
• Immediate payment
58

59. L/Cs FacilitateL/Cs Facilitate
FinancingFinancing
59
Bankers Acceptances : require a time
draft from the exporter to the importer’s
bank
•Under Letters of credit, B/As are especially
easy to create
•With sound credit backing, banks ready to
provide needed financing
•an L/C is like a purchase order that allows
additional financing

60. LETTERS OF CREDITLETTERS OF CREDIT
Advantages to the Importer (less than the exporter)
• Expert Examination of Documents
• Sources of Supply expand
• Financing
• No cash tied up
• Payment only after compliance
o To ship by a certain date requires an on-board bill of lading
60

61. On-Board Bill of LadingOn-Board Bill of Lading
Definition: shipping waybill certifying presence of
goods: a document establishing that goods have
been loaded onto a particular vessel and that the
carrier is now responsible for their safe passage
61

62. LETTERS OF CREDITLETTERS OF CREDIT
II. PARTIES TO THE TRANSACTION
A. THE BENEFICIARY
B. ACCOUNT PARTY (usually
importer)
C. OPENING BANK
D. ADVISING BANK usually a
correspondent of opening bank
E. PAYING BANK
agent for opening bank
F. NEGOTIATING BANK
any bank who submits documents to the
opening bank
62

63. G. CONFIRMING BANK
• fee usually paid by opening bank
• bank charges a fee
• considered very safe from exporter’s
viewpoint, i.e. contains obligation to pay on
the part of two banks.
63

64. LETTERS OF CREDITLETTERS OF CREDIT
EXPORTER
BENEFICIARY
ADVISING
BANK
PAYING
BANK
64

65. OPENING LETTERS OFOPENING LETTERS OF
CREDITCREDIT
IV. OPENING A LETTER OF CREDIT
should be done as soon as contract signed
especially if there is a price decline
A. Credit Factors – involves:
1. beneficiary, account party and opening bank
2. promise by bank to pay whenever proper
documentation is presented
3. Requires analysis of creditworthiness
65

66. OPENING LETTERS OFOPENING LETTERS OF
CREDITCREDIT
1. Unsecured Credit
requires financial strength and integrity
bill of lading consigned directly to the
importer
underlying goods not used as collateral
66

67. 2. Secured Credit
requires security such as
cash-commercial credit
merchandise as collateral
factors:
export must be creditworthy
are goods readily marketable
adequacy of insurance coverage
67

68. OPENING AN L/COPENING AN L/C
Cash Collateral Credit in between
alternative
terms depend on the strength of the importer
B. REQUIREMENTS FOR THE ACCOUNT
PARTY
1. Application
importance of documents
disadvantage of too much detail
importance of insurance
68

69. OPENING AN L/COPENING AN L/C
C. REQUIREMENTS FOR THE OPENING
BANK
1. Receipt of Application
2. Advice to Beneficiary
3. Amendments
69

70. LETTERS OF CREDIT:LETTERS OF CREDIT:
CONTENTSCONTENTS
V. CONTENTS
A. Typical Information
1. Place/date
2. Names of Account
party/beneficiary
3. General description of
merchandise
4. Tenure of the draft
5. Paying bank
6. % amount of draft
70

71. LETTERS OF CREDIT:LETTERS OF CREDIT:
CONTENTSCONTENTS
CONTENTS (con’t)
7. Ports of origin/destination
8. List of exact documents to
attach to drafts
9. Maximum amount of drafts
10.Expiration date of credit
11.Irrevocable/revocable?
71

72. Credit analysis of foreignCredit analysis of foreign
loansloans
• Credit analysis for international loans
follow the same procedures adopted
for domestic loans:
oevaluation of the required loan
amount,
ouse of proceeds,
osource and timing of expected
payment,
oavailability of secondary collateral
sources.

73. Foreign exchangeForeign exchange
activitiesactivities
• Because different countries use different monetary
units, traders must be able to convert one unit into
another.
• Foreign exchange markets are where these
monetary units are traded.
o Foreign exchange
…currency other than the monetary unit of the
home country
o Exchange rate
…the price of one currency in terms of another
currency.

74. Risks unique to international lendingRisks unique to international lending::
• Foreign exchange risk
…the current and potential risk to earnings and
stockholders’ equity arising from changes in
foreign exchange rates
• Country risk
…default risk associated with loans to borrowers
outside the home country
• Economic risks
…quantifiable economic and business risks
(mostly examined under regular credit analysis).
• Political (sovereign) risks
…the likelihood that foreign governments will
unilaterally alter their debt service payments,
regardless of the formal repayment schedule

75. Foreign Exchange:Foreign Exchange:
…currency other than the monetary unit of the home…currency other than the monetary unit of the home
countrycountry
• Exchange Rate
…price of one currency in terms of another
currency.
• Spot Market:
…market for exchange of currencies for immediate
delivery.
• Forward Market
…market for transactions that represent a
commitment to exchange currencies at a specified
time in the future at an exchange rate determined
at the time the contract is signed.

76. Foreign exchange riskForeign exchange risk
…current and potential risk to earnings and stockholder’s equity…current and potential risk to earnings and stockholder’s equity
arising from changes in foreign exchange ratesarising from changes in foreign exchange rates
• Found when changing exchange rates affect a
bank’s cash inflows differently than cash outflows
associated with positions denominated in different
currencies
• Changes in values of foreign currency positions
(buying and selling foreign currencies for their own
account) due to changing foreign exchange rates
indicate price risk

77. Relationship between foreign exchangeRelationship between foreign exchange
rates and interest rates.rates and interest rates.
• Arbitrage transactions between countries
guarantee that interest rate changes produce
changes in foreign exchange rates, and vice versa.
• If the interest rate differential between securities in
two countries falls out of line with the spot-to-
forward exchange rate differential, a covered
interest arbitrage will take place and investors will
make net profits from the series of transactions.

78. Foreign exchange rates and interest ratesForeign exchange rates and interest rates
• Covered interest arbitrage
…exists when the interest rate differential between
securities in two countries is out of line with the spot-
to-forward exchange rate differential.
• Interest rate parity
…exist when covered interest arbitrage profit
potential is eliminated.

79. ECGC MissionECGC Mission
To support the Indian export
industry by providing cost effective
insurance and trade related
services to meet the needs of the
Indian exporters

80. OBJECTIVE of ECGCOBJECTIVE of ECGC
To PROMOTE EXPORTS Mainly by
• Protecting Exporters against
COMMERCIAL & POLITICAL RISKS In
realising export proceeds
• Protecting Banks against
RISK OF DEFAULT in export credit
• Protecting Investors against POLITICAL RISKS in Shareholders’ equity and
loan In overseas investments

81. ECGC Fact sheetECGC Fact sheet
• Established in 1957
• Fully owned by GOI
• Under administrative control of MOCI
• Capital Base
• Highest ICRA rating of IAAA
• 5 Regional Offices and 51 Branch Offices
• All Branches ISO 9001:2000 certified
• Member of Berne Union
• MOU with GOI

82. Key Performance HighlightsKey Performance Highlights
Sr.
No.
Description
Financial Years
( Audited Data)
2010-11 2011-12
1
Gross Premium
income
Rs.885.47 cr. 1004.80 cr.
2 Claims Paid Rs.620.53 cr. 712.96 cr.
3 Recoveries Received Rs.136.07 cr. 168.69 cr.

83. What is Risk?What is Risk?
Uncertainty about future outcome due to :
Unexpected occurrence of events
o Uncontrollable factors
o Lack of Information

84. Risk PerceptionsRisk Perceptions
• Industry risk
• Business risk
• Risk of contract frustration
• Risk of physical damage
• Credit risk
• Country Risk

85. What is Credit RiskWhat is Credit Risk
• Definition: The potential that a debtor will
fail to meet its payment obligations in
accordance with agreed terms.
• Export credit risk:
a) Buyer related problems
b) Country related

86. Risk ManagementRisk Management
Analysis, acceptance or mitigation
• Risk avoidance
• Risk Transfer
• Risk Sharing
• Risk retention

87. PAYMENT RISK
RISK MANAGEMENT IN EXPORTSRISK MANAGEMENT IN EXPORTS
Goods Receivables
Exchange
Risk
Loss or
Damage
Marine
Insurance
Hedging by
Authorized
Dealers
CREDITCREDIT
INSURANCEINSURANCE

88. LC
Payment Risks
POLITICAL RISK
COUNTRY
BUYER BANK
LC / NON – LC
COMMERCIAL RISK
Payment RisksPayment Risks

89. Role of ECGC as an Export CreditRole of ECGC as an Export Credit
InsurerInsurer
• ProvidingProviding export credit insurance coversexport credit insurance covers toto
ExportersExporters
against loss in export of goods & servicesagainst loss in export of goods & services
under ST & MLT (under ST & MLT (POLICY Scheme)POLICY Scheme)
• ProvidingProviding export creditexport credit insurance coversinsurance covers toto
Banks & FI’sBanks & FI’s
to enable exporters obtain better facilitiesto enable exporters obtain better facilities
from themfrom them (ECIB)(ECIB) (formerly known as(formerly known as
Guarantees)Guarantees)

90. War, Civil
war, Internal
disturbances
exchange
transfer
blockage
s/delay
New import
restrictions,
cancellation of
import licence, etc.
New import
restrictions,
cancellation of
import licence, etc.
Risks covered -PoliticalRisks covered -Political
Diversion of
voyage due
to war
Diversion of
voyage due
to war

91. Insolvency
of
buyer/bank
Non
acceptance
of exported
shipment
Default of
buyer/bank
Risks covered-Risks covered-
CommercialCommercial

92. Risks NOT considered Credit riskRisks NOT considered Credit risk
• Non fulfillment of contractual obligations by exporter
including quality dispute.
• Default or insolvency or any omission /commission of
any agent of exporter/ buyer
• Failure of buyer to obtain necessary approvals for
imports
• Causes inherent in nature of goods
• Exchange fluctuation risks
• Physical loss/damage to goods

93. Principles of Credit InsurancePrinciples of Credit Insurance
• Good Faith
• Co-insurance
• Spread of risks

94. Buyer & Country UnderwritingBuyer & Country Underwriting
• The 2 pillars of Export Credit Insurance :
and
BuyerBuyer
UnderwritingUnderwriting
that assessesthat assesses
buyer risksbuyer risks
Limit fixed on BuyerLimit fixed on Buyer
CountryCountry
UnderwritingUnderwriting
that assessesthat assesses
country riskscountry risks
Country classificationCountry classification

95. Products offered to ExportersProducts offered to Exporters
Declaration Based Policies
Whole Turnover
1) Standard (SCR) Policy
2) Small Exporters Policy
3) Export Turnover Policy
Specific transaction
1) Specific Shipment Policy
2) Specific Buyer Policy
3) Transfer Guarantee (for Banks)

96. Products offered to ExportersProducts offered to Exporters
Exposure Based Policies
1) Single Buyer Exposure Policy
2) Multi buyer Exposure Policy
3) SME Policy

97. Products offered to ExportersProducts offered to Exporters
Consignment Based Policies
1) Consignment Export Policy
2) Global Entity Policy

98. Products offered to ExportersProducts offered to Exporters
Covers for IT/ITES industry
1) Software project exports policy
2) IT enabled (single customer) policy
3) IT enabled (multi customer) policy

99. Premium Structure BasisPremium Structure Basis
• Country Grouping - 7 fold (237 countries)
( A1, A2, B1, B2,….. D)- Higher the country
group, lower the premum rates
• Terms of Payment- More superior the
payment terms, lower the premium rate
• Specific approval required for Restricted
Cover countries

100. Shipments (Comprehensive Risks) PolicyShipments (Comprehensive Risks) Policy
• Whole Turnover principle
• Selective options for exclusion-
LC/ Associates/
Consignments
• 90% cover
• Minimum premium of Rs.10,000/-
• Policy Period - 2 years
• Buyer wise Credit limit
• Discretionary limit
• Monthly declarations with premium
• No Claim Bonus – yearly 5%; max 50%

101. Small Exporters PolicySmall Exporters Policy
• Turnover not exceeding Rs.50 Lakhs p.a.
• Minimum Premium Rs.2000/-
• Policy Period - one year
• Higher percentage of cover-
Commercial risks 95%;
Political risks 100%
• No Claim bonus
• Quarterly Declarations

102. Specific Shipment Policy (SSP)Specific Shipment Policy (SSP)
• Covering one shipment or One contract
• Processing fee of Rs.1000/-
• 80% cover
• Premium higher than standard premium
rates
• Upfront premium before issue of Policy
• Commercial / Political risks and L/C
comprehensive risks covered
• Submission of Shipment Statement and
realisation report

103. SME POLICYSME POLICY
• For exporters with Export Turnover not
exceeding Rs10 Lakhs and registered
under MSME Act, 2006
• Cover available upto Rs10 lakhs.
• Annual premium Rs 5,000 and processing
fee of Rs1,000
• 90% cover
• Maximum claim payable is Rs3 lakhs on
any buyer
• No requirement of monthly declaration of
shipments

104. Benefits For ExportersBenefits For Exporters
• Protection for account receivable
• Reduction in Bad debt
• Improvement in quality of financial
planning
• Enhancement in risk taking capacity
• Easy access to bank finance on liberal
terms

105. ECIB’S TO BANKSECIB’S TO BANKS
• Contract of insurance between bank &
ECGC
• Protects banks against losses in export
credit due to
- Insolvency of exporter
- Protracted default of exporter

106. Benefits For BanksBenefits For Banks
• Protection For Pecuniary Liabilities Against
Funded and Non Funded Credit Facilities
To Exporters
• Enables To Waive Collateral Securities
• Lesser Capital Deployment requirement.

107. Reserve Bank Of IndiaReserve Bank Of India
• To regulate the issue of bank notes.
• To maintain reserves with a view to securing
monetary stability.
• To operate the credit & currency system of the
country.

108. Board of RBIBoard of RBI
• Bank affair’s are governed by Central Board of
Directors
• Central Board consists of Official and Non-Official
appointed by Govt. of India for a period of four
years.
• Official Directors include Governor and not more
than 4 Deputy Governor.
• RBI having four local boards in 4 regions to
represent territorial and economic interest of local
co-operative & indigenous banks.

109. Legal FrameworkLegal Framework
• Umbrella Acts which form the basis of its very
foundation.
• Acts which govern the specific function of apex
body.
• Acts which govern the Banking operation.
• Acts which govern the individual institutions.

110. Main Functions of Reserve Bank ofMain Functions of Reserve Bank of
IndiaIndia
• Maintenance of Price Level.
• Regulator & Supervisor of the financial system.
• Manager of Foreign Exchange.
• Issuance & Replacement of Currency.

111. Functions of Various Departments ofFunctions of Various Departments of
RBIRBI
• Urban Banks Department: RBI regulates the interest
rates on deposits & advances, also prescribing min
reserves & liabilities to be maintained. Also
refinance facilities to state co-operative banks.
• Rural Planning & Credit Department: Facilitating
credit to rural, agriculture & small scale industries,
Policy on priority sector lending, support to NABARD
etc.

112. Foreign ExchangeForeign Exchange
Department:Department:
• Timely realization of export proceeds and reviews
• Licensing banks to deal in foreign exchange,
collecting data related to forex transactions from
authorized dealers on daily basis for exchange rate
management.
• Also laying down policy guidelines for risk
management to forex transactions in bank

113. Department of Banking SupervisionDepartment of Banking Supervision
• Undertaking scheduled and on-site inspections of
banks
• Determining the criteria for the appointment of
statutory auditors and assessing audit performance
and disclosure standards.
• Dealing with financial sector frauds and attending
the complaints received against banks and FI’s
from public, banks & Government.

114. Department of Banking Operations
& Development& Development
• To promote & foster a sound & competitive banking
system.
• Laying down regulations relating to capital
adequacy, asset classification, provision for loan,
investment valuation, accounting & disclosure
standards and risk management systems.
• Licensing of new banks, expansion of foreign and
domestic banks, approval for setting up of
subsidiaries.

115. Functions of Various Departments ofFunctions of Various Departments of
RBIRBI
• Department of Information Technology:
Computerization in RBI
• Legal Department: To tender legal advice on
various matters referred by the operational
departments/offices/associates of the reserve bank.
• Department of Govt. and Bank Accounts: Acting as
a banker to the banks, administering public debt of
both central & state govt.

116. Functions of Various Departments ofFunctions of Various Departments of
RBIRBI
• Monetary Policy Department: Preparation of
monetary budget, periodic review of monetary,
review of CRR & SLR stipulations, analysis of data on
developments in money market.
• Internal Debt Management Dept.: Managing
Internal Debt, Auctioning the govt. Debt from time
to time, Introduction of new instruments,
smoothening the maturity structure of debt.

117. Department of Economic AnalysisDepartment of Economic Analysis
and Policyand Policy
• Analyzing the basic issues & problems affecting the
Indian economy.
• Serves as a primary source of data & information
relating to aspects of Indian economy.
• Prepares monetary & credit aggregates, balance
of payments and external debt statistics, internal
debt & govt. finance statistics, and flow of funds &
financial savings.

118. • SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981
• WHOLLY OWNED BY GOVERNMENT OF INDIA
• COMMENCED OPERATIONS IN MARCH 1982
• APEX FINANCIAL INSTITUTION
• OBJECTIVES:
“… for providing financial assistance to exporters and importers, and
for functioning as the principal financial institution for coordinating the
working of institutions engaged in financing export and import of
goods and services with a view to promoting the country’s
international trade…”
“… shall act on business principles with due regard to public interest”
(Export-Import Bank of India Act, 1981)
Exim Bank of IndiaExim Bank of India

119. Leadership and Expertise in India’s Export Finance
Comprehensive Range of
Products And Services
– All Stages of the Export Business
Cycle –
1982-85
1986-94
Export
Credits
Exim Bank TODAY
Export Capability
Creation
Product Centric
Approach
Customer Centric
Approach
“To develop commercially viable
relationships with a target set of
externally oriented companies by
offering them a comprehensive range
of products and services, aimed at
enhancing their internationalisation
efforts”
Evolving VisionEvolving Vision

120. OrganisationOrganisation
• Chairman and Managing Director
• 5 Directors: Government of India
• 3 Directors: Scheduled Banks
• 4 Directors : Professionals/Experts
• 1 Director nominated by RBI
• 1 Director nominated by IDBI
• 1 Director nominated by ECGC
Appointed
by
Govt. of India
* As per Exim Bank Act
BOARD OF DIRECTORS (16)* OFFICES
Domestic Offices: 9
 Ahmedabad
 Bangalore
 Chennai
 Guwahati
 Hyderabad
 Kolkata
 New Delhi
 Mumbai
 Pune
Overseas Offices:6
 London
 Dakar
 Durban
 Dubai
 Singapore
 Washington
D.C.

121. Operational PhilosophyOperational Philosophy
International Trade
FinancingFinancing PromotingPromoting FacilitatingFacilitating
Throug
h
Variety ofVariety of
FinancingFinancing
ProgrammesProgrammes
Value Added BusinessValue Added Business
Advisory ServicesAdvisory Services
Research &Research &
AnalysisAnalysis
Catalyst for Financing
ProjectsProjects ProductsProducts ServicesServices

122. Range of Products & ServicesRange of Products & Services
Presence Across All Stages of Business Cycle
INFORMATION
Advisory
Services
Knowledge
Building
SUPPLEMENTS FINANCING PROGRAMMES
Value Based Services
Pre-
Shipment
Export
Marketing
Export
Production
Export
Product
Developmen
t
Import
Finance
Advisory
Services
Investment
Abroad
Post-
Shipment

123. Financing Programmes
Financing Programmes (Various
Currencies)
Export CreditExport Credit Import CreditImport Credit Loans for Exporting UnitsLoans for Exporting Units
Medium / Long Term
- Lines of Credit
- Buyer’s Credit
- Supplier’s Credit
Short Term
- Pre/Post Shipment
Credit
- Import Loan for
capital goods
- Bulk Import Loan
for Raw Materials
- Term Loans for expansion/
diversification/ new projects/
export product development/
export marketing/ research &
development
- Term Loans for overseas
equity investment
- Direct equity stake in Indian/
Overseas ventures of
exporting companies

124. Export MarketingExport Marketing
FinanceFinance
• Administered an Export Marketing Fund from World Bank
• SMEs extended export marketing finance to implement strategic export marketing
plans aimed at entry into developed country markets and term loans for supply
side upgradation
• Exim Bank’s assistance resulted in generation of significant exports to developed
country markets
• Many of these companies have become large companies with high export
orientation
• Based on the successes achieved in the programme implemented by Exim Bank in
India, the Bank has shared its experience with other developing countries, with
World Bank funding
• Over 300 companies supported in variety sectors: Knitting
 Needles
 Polyester Ropes
 Home Appliances
 Herbal Products
 Textiles
 Software
 Castings
 Pharmaceuticals
 Jute Products
 Printing Machinery
 Auto Components

125.  Exim Bank’s extends export Lines of Credit (LOC) to overseas financial
institutions, regional development banks and foreign governments and
their agencies and Buyers’ Credits (BC) to foreign corporates
 LOCs also extended at the behest of Government of India
 LOCs serve as a market entry mechanism to Indian exporters and
provide a safe mode of non-recourse financing option to Indian
exporters
 LOCs/BCs are particularly relevant for Indian SME exporters as the
payment risk is borne by Exim Bank
 Bank has in place 117 operative LOCs covering more than 94 countries
of value of over US$ 3.85 billion
Lines of Credit

126. • Competency as Collateral :
 Development of Loan.Com an IT tool kit which will enable SMEs to develop
bankable business plans thereby enhancing their access to finance
 Tool kit will also enable lending institutions to screen viable projects
 Pioneering initiative for supporting SMEs and for providing term loans and
export finance facilities to identified units to help them in their globalisation
efforts.
 Learning from the programme to be transferred to other developing
countries; capacity creation and institution building in the global arena.
 Exim Bank has already financed select firms by way of term loans and export
finance facilities, using the tool kit
THIS INITIATIVE HAS BEEN LAUNCHED BY ITC FOR THE FIRST TIME WITH
EXIM BANK AS A PARTNER.
Enterprise ManagementEnterprise Management
Development ServicesDevelopment Services

127.  Agreement between Exim Bank and International Finance
Corporation (IFC)
 Envisages confirmation of Letters of Credit (L/Cs), Standby letters
of Credit, demand guarantees, promissory notes or bills of
exchange received by Indian exporters
 From 105 pre-approved banks in more than fifty countries of IFC’s
operation
 Covers the risk of non-payment by Issuing Bank to Negotiating /
Paying banks
Global Trade Finance under IFC

128.  Exim Bank has launched an ‘Export Marketing Services’ programme
 Seeks to help Indian SME sector to establish their products overseas and enter new markets through Exim’s
overseas offices and institutional partner network
 Helps Indian SMEs in their export efforts by proactively assisting in locating overseas buyers/partners for their
products/services
 No upfront fees, but operates on success-fee basis
 Some of the sectors assisted include :
Export Marketing Services
 Agricultural Equipments to Senegal
 Ayurvedic Products to Hungary
 Tiger Prawns to a leading restaurant chain in S.Africa
 Cotton fabrics to S. Africa
 Incense sticks to Singapore, S. Africa, USA
 Setting up of oil mill on turnkey basis in Senegal
(pipeline)
 Seting up of Solar City in Senegal(pipeline)
 Processed foods to Singapore & Italy
 Agarbathis to S. Africa and Singapore
 Natural Sandstone and Tiles to Hungary
 Lucknow Chikan Kurtas to Singapore
 Grapes and Pomegranates to Singapore

129.  Eximius Centres of Learning for knowledge building & capacity creation for
SMEs – Bangalore/Pune/ Ahmedabad
 Set up to organise seminars and workshops for the benefit of exporting
companies, particularly SMEs
 Subjects include:
Seminars / Workshops
 International trade & investment
 Export marketing
 Sector and country specific
programmes
 Quality
 Packaging
 Business opportunities in multilateral
agencies funded projects

130.  Exim Bank has brought out Research Papers pertaining to SMEs on policies,
institutional support and infrastructure
 Institutional Support to SMEs: A Study of Select Sectors
 Institutional Support Systems for SMEs in India and International Experiences
 Export Performance of Small and Medium Enterprises in India
 Others research papers on sectors that are predominated by SMEs include:
Research Publications
 The Bank has also brought out a publication on ‘Business Practices of
Successful Indian Exporters’, outlining the internationalisation strategies
adopted by successful Indian firms including SMEs
 ‘Agri Export Advantage’Agri Export Advantage’, a bimonthly publication in English, Hindi and 10
regional languages
 Sports Goods
 Indian Handicrafts
 Chemicals
 Leather

131. Agri Business GroupAgri Business Group
 The Bank has put in place an ‘Agri Business Group’
 The Group looks for viable projects and export transactions in agriculture
sector.
 The Bank has set up an agro-portal, in-house, which is an IT initiative to
promote knowledge-based agriculture enterprise. www.eximbankagro.in
 The Bank brings out a bi-monthly newsletter ‘Agri Export Advantage’ to
facilitate information dissemination in 10 regional languages.
 Brought out following study reports;
 Organic Farming
 Plantation Sector
 Agro & Processed foods –Export Opportunities
 Assisted a number of Small and Medium exporters in the Agro Sector
covering following products;
 Honey, Mango pulp, mushrooms, gherkins,fresh & processed fruits &

132. Promoting InvestmentPromoting Investment
Supporting two-way investment
 Comprehensive assistance:
 Pre investment advisory services
 Finance through debt and equity
 Finance available for:
 Greenfield projects;
 Brownfield expansion;
 Overseas acquisitions directly or through special purpose vehicles
 Direct equity participation in Indian ventures abroad
 Joint investments by Indian and overseas company in third country markets in
addition to facilitating investments into India.

133.  World Bank
 EBRD
 ADB
 African Development
Bank
 MIGA
 IFC
 UNCTAD
Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies
 Board of Investment
of Mauritius
 Netherlands Council
for Trade Promotion
 Board of Investment
of Sri Lanka
 Sharjah Chamber of
Commerce & Industry
 Caribbean
Association of
 Afrexim Bank
 National Bank of
Egypt
 Czech Export
Bank(CEB)
 Belvnesheconomban
k, Belarus
 Czech Export Bank
 Hungarian Exim
Institutional Linkages

134. Exim Bank: Partner in GlobalisationExim Bank: Partner in Globalisation
• Technology
• Capital
(Foreign
Investment)
• Raw Materials
• Capital Goods
 Final Products
 Capital Goods
 Capital
(Overseas
Ventures)
 Product
Development
 Production
 Marketing
 Pre shipment
 Post shipmentVALUE ADDITION
EXPORT
M
I
T
R
O
P