a project report on dlw export procedure to non railway customer by anand kumar tiwari

7/31/2019 A Project Report on Dlw Export Procedure to Non Railway Customer by Anand Kumar Tiwari

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SUMMER TRAINING PROJECT REPORT

ON

DLW EXPORT PROCEDURE TO NON RAILWAYCUSTOMER

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

POST GRADUATE DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF: UNDER THE SUPERVISION OF:

Prof. Dr. Anamika Pandey Mr. N.K Sinha

SUBMITTED BY

Anand Kumar Tiwari

11PGDM/M007 ( 2011-13)

Galgotias Business School

(APPROVED BY AICTE, MNSTRY OF HRD,GOVT. OF INDA) 1,KNOWLEDGE PARK,

PHASE II, GREATER NODA. (U.P.)

GBSClassified - Internal use


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ACKNOWLEDGMENT

This Project Report is a combined effort of many people who have contributed in their own ways in

making this report effective and purposeful. In my report, I would like to take the opportunity of

thanking all those who have been instrumental in preparing this report.

Firstly, I would like to thank Prof. Renu Luthra, Director GBS, and Mr. V.K Luthra, Director of CRC

for giving me an Opportunity to carry out this Project.

I would like to thank, Prof. Dr. Anamika Pandey (Mentor) and my seniors who always there to guide

and support me in my endeavor.

I specially wish to thank Mr. N.K Sinha, S.E.E., D.L.W. Varanasi (Diesel Locomotive Works

Varanasi) for his valuable suggestions & continuous support.

Last but not the least; I thank all the faculty members who helped me during the course of training.

ANAND KUMAR TIIWARI

11PGDM/M007



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PREFACE

It is great privilege for me to place this report before the reader. The report is concern about DLW

Export Procedure to Non Railway Customer. This report is presented in very simple &

understanding language on the basis of Primary and Secondary data.

ANAND KUMAR TIWARI

11PGDM/M007


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Declaration

I Anand Kumar Tiwari, Roll No. 11PGDM/M007, student of PGDM (Mkt.) of Galgotias BusinessSchool, Greater Noida, herby declare that my project report on DLW EXPORT PROCEDURETO NON RAILWAY CUSTOMER is an original and authenticated word done by me.

I Further declare that it has not been submitted elsewhere by any person in any of the institutes forthe award of any degree or diploma.

ANAND KUMAR TIWARI

11PGDM/M007


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TABLE OFCONTENT

ChapterNo. Chapters Name

PageNo.

1 EXECUTIVE SUMMARY

2 INTRODUCTION

3 PROFILE OF COMPANY

MANAGEMENT TEAM &

STRUCTURE PRODUCTS AND MARKETS

VISSION & MISSION

4 MARKETING DEPARTMENT IN DLW

5 EXPORT PROCEDURE IN DLW

ABOUT RITES

SERVICE PROVIDE BY RITES

RITES ROLE IN DLW CONTRACT BETWEEN RITES &DLW

DETAILS OF EXPORTEDLOCOMOTIVES

GENERAL PROCEDURE OFEXPORT

6 RESEARCH METHODOLGY

7 DATA ANALYSIS

8FINDINGS AND

CONCLUSION

9 RECOMMENDATIONS

10 LIMITATION


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11 LEARNING EXPERIENCE

12 BIBLIOGRAPHY

12 ANNEXURE

CHAPTER NO. 1

EXECUTIVESUMMARY


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EXECUTIVE SUMMARY

The Subject of my project is DLW Export Procedure to Non-Railway Customer.

Diesel Locomotive Works is a Production Unit of Indian Railways, manufacturing Diesel-electricLocomotives, Diesel Generating sets and their spares for Indian Railways, Non-Railway Customersand exports.

This Project has been taken to know about In DLW, How all the activity of EXPORT PROCEDURE

is done by RITES to their Non-Railway Customer. Usually in any Export House many steps are

followed to export, Aim behind this project is know the General Procedure of Export Trade that are

adopt by Diesel Locomotive Works.

The approach of research was survey and instrument used was questionnaire which was filled by

among departmental employees of company. Information gathered through interview and discussingwith departmental members. Primary Data is used.


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After the study based on employee response it has been analyzed the entire employee are

very well aware and satisfied with the facilities provided by the DLW. The response are quite

objective in nature.

At Conclusion, Very few improvement but important improvement is needed, which mentioned

above, is needed in welfare programmes, which make the employees more satisfied.

CHAPTER No. 2

INTRODUCTIO

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INTRODUCTION TO PROJECT

Diesel electric locomotives were introduced on Indian Railways in 1950's to exploit their versatility, better haulingcapabilities, low maintenance requirements and overall cost advantage as compared to steam locomotives. Diese

Locomotive Works (DLW) was established in 1961 in collaboration with M/s ALCO, USA in the ancient City of

Varanasi to undertake indigenous manufacture of diesel electric locomotives for meeting increasing transportation

needs of Indian Railways.

Over the years, DLW's production has progressively increased and it produced 267 locomotives, in the

year 2011-12 as against 4 locomotives in the first year of its production in 1963-64.

ALCO locomotives are now almost fully indigenous. Through in house development efforts, the original imported

design has been made 7% more fuel-efficient and has also been successfully uprated to deliver about 30% more

power, increasing it from 2600 HP to 3300 HP.

DLW is an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 Certified Organization covering Quality

Environment, Health& Safety Management Systems.



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Sewage Treatment Plant (STP) :

In-house STP treats domestic and industrial sewage of DLW township and workshop. The treated water is used

for irrigation purpose in DLW township and nearby village farms. The digested sludge is sent to sludge drying

beds, which is later used as manure. Methane gas mainly produced from the digester is collected in the gas holder

and supplied to the canteen.

Industrial Effluent Treatment Plant (IETP):

IETP does the job of treatment of industrial effluent which mainly

contains oil and grease. The treated water is sent to nearby villages for

farming and kitchen gardening at DLW.

Chromium Treatment Plant (CTP):

CTP treats industrial effluent from Chrome Plating Shop. This has

varying concentration of hexavalent chromium. This hexavalent

chromium is converted into trivalent chromium in acidic condition and is

precipitated for safe disposal.

Safety:

Safety of working personnel and of equipment is given prime importance in DLW. In compliance to statutory

requirements all safety aspects are subjected to intensive periodic inspections. Four full time safety officers are

engaged in the entire safety management of DLW including the function of overseeing compliance to all safety

regulations by Workshop personnel.

Safety Features in DLW Include :



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Fire fighting arrangements with suitably trained personnel and regular checks of fire hydrants and static

tanks etc.

System of checking/periodic inspection of wire ropes and lifting tackles

System of inspecting pressure vessels/air reservoirs

Provision of safety Guards on machines and over travel protection of material handling equipments

Protection of equipments from short-circuiting

Safety awareness training programme for supervisors and workers

Periodic maintenance of machinery and plant

Mock drills of emergencies for checking of emergency preparedness

Residential Facilities

A total of 3641 staff quarters are provided in a well-maintained township that provides maintained and green

providing excellent and pollution free environment.

Educational Facilities



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There are 04 schools for Primary and Secondary Education, run by DLW administration where more than 2600

students are being taught. 01 Post Graduate Girl's College also exists in DLW premises. Besides 02 Central

Schools, 01 Sr. Secondary School (Private) and 01 Bal-Niketan (run by DLW Women's Welfare Orgainisation)

are also running in DLW campus.

Medical Facilities

105 bedded well-equipped Railway Hospital, a Health Unit and a

First-Aid post in workshop are functioning, taking comprehensive

health care of around 20,000 employees and their family members.

A Homeopathic and an Ayurvedic dispensary have also been

provided.

Institute/Community Centre etc.

For various social needs of the staff Community Hall, Institutes, Barat Ghars, Kalyan Kendra, Rangshala and

Officer's Club are functioning in DLW township.

Cinema Club

For recreation of the staff a Cinema Hall of around 700 capacity is functioning in DLW Township since 1967.

Games and Sports

Facilities for various games like Cricket, Hockey, Basketball, Badminton,

Volley-ball, Football, Table tennis, Gymnastics, Athletics, Swimming,

Golf, and Rifle Shooting have been provided for the staff. World class

Swimming-Pool and well-developed Golf course are unique features.

Inter Railway Tournaments are being regularly arranged in DLW

premises.

ORGANISATION OF RAILWAYS



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DEFINITION OF RAILWAY

Railway means a railway or any portion of a railway for the public carriage of passenger, animals or goods andincludes.

(a) All land within the fences or other boundary marks indicating the limits of the land appurtenant to a

railway;

(b) All lines or rails, siding or branches worked over for the purpose of, or in connection with a railway;

(c) All stations, office, warehouse, wharves, workshop, manufactures, fixed plant and machinery and otherworks constructed for the purpose of or in connection with a railway;

(d) All ferries, ships, boats and rafts which are used on inland waters for the purpose of the traffic of a railwayand belong to or are hired or worked by authority administering the railway.

GROWTH OF RAILWAYS IN INDIA

IN 1849, the first contract was given to EAST INDIAN RAILWAY COMPANY for the construction of a railwayline for Calcutta towards Mirzapur. In the same year, another contract was made with the Great Indian PeninsulaCompany for the construction of another Railway line from Bombay to Kalyan.In pursuance of the contracts mentioned above, the first section from Bombay to Thane consisting of about 32kms. Was opened on 16th of April, 1853 and the other section from Howrah to Hooghly consisting of 35kms. Wasopened on 22nd August, 1854. The construction of Railway line, since then, continued and by the end of 1868, theRailway Kilometrage had increased to about 6043 kms.The great famine of 1878 stressed the need for further and rapid development of Railways, but due to paucity offunds, the Government had to resort to the company construction. The Indian States were also asked to undertakethe construction of Railways in their own territories and these States constructed about 7500 kms. Of Railways.

The railway lines were constructed at a faster pace after the advent of twentieth century and the railwaykilometrage increased from about 37130kms. In 1900 to about 51900kms. In 1913-1914 and now it exceeds60200 kms.In pursuance of recommendations by Railway Enquiry Committee of 1921, the management of Railways wastaken over by the Government and now all the Railways in India (except a couple of small branch line sections)are owned and managed by the State.

RAILWAY ZONES

Following are the different Zone of Indian Railways and their Headquarters:NAME OF THE ZONE HEADQUARTERS



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1. CENTRAL MUMBAI2. EASTERN CALCUTTA3. NORTHERN NEW DELHI4. NORTH-EASTERN GORAKHPUR5. NORTH-EAST FRONTIER MALIGAON6. SOUTHREN CHENNAI

7. SOUTH-EASTERN CALCUTTA8. WESTERN MUMBAI9. SOUTHERN CENTRAL SECUNDERABAD

Recently, six additional zones have been created by regrouping the existing nine zones:10. NORTH CENTRAL ALLAHABAD11. SOUTH WESTERN BANGALORE12. EAST CENTRAL HAJIPUR13. EAST COAST BHUBANESHWAR14. WEST CENTRAL JABALPUR

15. NORTH WESTERN JAIPUR16.SOUTH WEST CENTRAL RAILWAY BILASPUR

Organizational Set Up:

DLW has a design and development office responsible for all engineering functions related to diesel locomotivesEquipped with extensive designing tools, this office provides service support to Zonal Railways / DieseLocomotive Maintenance Sheds and Locomotive Overhauling Workshops. This office is also responsible forproduct development, vendor development and vendor approval. It also performs technical advisory functions andcoordination with RDSO/Railway Board on technical matters.Chief Design Engineer heads this office and is assisted by a team of technical experts.

Functional Responsibilities:

The functional responsibilities of Design and Development Office are:

Design development of new locomotives, Import substitution /indigenous development of loco component, multi-sourcing, day-to-day design matters raised by diesel sheds and workshops, liaison with Research Design andStandards Organisation of Indian Railways, liaison with supply chain partners in respect of technical matters.Technical matters connected with Loco Standards Committee, Diesel Maintenance Group etc., providing technical

clarifications in respect of design/specifications & important tenders. Failure investigations into majorassemblies/critical components.All design issues for Electrics and Bogie of EMD locomotives. Moreover, design upgradation of EMDlocomotives like power upgradation to 4500 BCV, incorporation of IGBT based technology, Distributed powerHotel Load, Development of twin cab WDG4 and development of 12 cylinder 3000 HP EMD locomotives withAC-DC traction are being dealt with by Design Office.Liaison with CQAM and RITES in respect of inspection and quality control standards.



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Details of Locomotive Exported (up to March'2012)

DLW has exported 105 locomotives to 11 countries. Details are as under:

S.No. Country Types of locomotives Qty.

1. Vietnam YDM4, MG 25

2. Bangladesh

YDM4, MG

WDM2,BG

10

133. Tanzania YDM4, MG 15

4. SriLanka

WDM2, BG

12 Cyl., BG

08

055. PCCL, SriLanka WDM6, BG 01

6. Myanmar YDM4 1350 HP 11

7. Sudan VDM4, 1350 HP, CG

2300 HP, CG

03

058. Mali 2300 HP, MG 039. Angola VDM4, 1350 HP,CG

2300 HP, CG

01

0210. Senegal YDM4, MG 01

11. Malaysia 2300 HP, MG 01

11. Mozambique 3100 HP, Cape Gauge 01

Total= 105

Details of Locomotive supplied to Non Railway Customers (up to March'2012)

DLW has supplied 395 locomotives to Indian NRCs up to March'2012. Major Non-Railway Customers and

locomotives supplied to them are as under:



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S.No. Customer's Name Types of

locomotives

Qty. Total

1. SAIL WDS6

WDG3A

180

01

181

2. VSP WDS6 33 333. NTPC WDS6

WDM2

WDG3A

15

42

31

88

4. Port Trusts WDS6

WDG3A

29

07

36

5. State Electricity Boards WDM2

WDS6

11

10

21

6. Others WDS6

WDG3A

YDM4

30

05

01

36

Total= 395



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CHAPTER NO.3CHAPTER NO.3

PROFILE OF THE COMPANYPROFILE OF THE COMPANY

ABOUT COMPANY

DIESEL LOCOMOTIVE WORK

Varanasi, one of the oldest populated cities in the world and has a promising place in the internationalground both as a hub of traditions and technology. One side the humming of divine and holy bells of the templesbrings the city to life; on other side Diesel Locomotive Works (DLW) Varanasi is one of the largest industrialunits in eastern part of the nation. DLW catch the attention of lot of foreign tourist students to observe on going



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amazing locomotive manufacturing process in Varanasi. Diesel Locomotive works Varanasi is located at theNorth end of the city and about 8 Km away from the Holy River Ganges Ghats.

DLW is an ISO 9002, ISO 14001 & OHS 18001 Certified Organization of diesel electric locomotive.

Diesel Locomotive Works, Varanasi (DLW) is one of the main manufacturing units run by the IndianRailways. This manufacturing unit came into existence in year 1961, as a Green Field Project in industrialassociation with ALCO, USA. This unit generates all the Diesel Electric Locomotives. In year 1964, the first

locomotive was manufactured and it was devoted to the country. Diesel Locomotive Works, Varanasi producesonly Electric Diesel locomotives and auxiliary parts of locomotives.

Though it is an Indian corporation but it has supplied locomotives to some foreign countries also, includes

Angola, Bangladesh, Malaysia, Myanmar, Sri Lanka, Vietnam, Tanzania, Sudan, Mozambique etc.

Diesel Locomotive manufacturing Works,

Varanasi works in three main sections viz:-1) Engine section2) Vehicle section and3) Block section

1) Engine section manufactures more than 2000 machinery, which comprises of ALCO turbo superchargers,cylinder heads, connecting rods, camshafts, lubricating oil pumps, chrome plated cylinder liners and manydifferent types of gears.

2) Vehicle section of DLW unit works on different fields that include Bogie Manufacturing, ComponentFabrication, Locomotive Assembly, under frame Fabrication, and many more.

Currently, Diesel Locomotive Works, Varanasi manufactures locomotives , DG sets. In locomotivessection, again it manufactures two different types of products, one is EMD and an other is ALCO.

BRIEF HISTORY OF DLW

Welcome to Diesel Locomotive Works, VaranasiAn ISO 9001, ISO 14001 & OHS 18001 Certified Organization.

August 1961 DLW set up as a green field project in technical collaboration withALCO, USA for manufacture of Diesel Electric Locomotives

January 1964 First Broad Gauge Locomotive (WDM-2) released by (Late) ShriLal Bahadur Shastri. First Locomotive rolled out and dedicated tothe Nation

November 1968 First Meter Gauge Locomotive (WDM-4) released by (Late) Shri



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GENERAL INFORMATION

Workshop Land 219.997 acre

Township Area 520.6 acre

Covered Area in Shop 26.37 acre

Covered area of other service building 19.13 acre

Total No. of Staff Quarters 3641

Total No. of staff on roll (as on March'2012) 5926

No. of beds in Hospital 105

Water consumption 223.82 Lakh Litres/day



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Electrical Power Requirement

Electrical Energy Consumption 262.07 Lakh Unit / Year

Workshop 4200 KVA

Colony 2600 KW

Administrative Building 1500 KW

Stand by Power Generation Capacity 5625 KW

MANAGEMENT TEAM

General Manager- Shri B.P. Khare

CEE- Shri R.J. Mehrotra

FA&CAO- Shri Atul Mohan

COS- Shri S.P Piplani

CME- Shri Rakesh Vatash

CPO- Shir L.B.RAI

CMS- Dr.Padam Singh

CE- Shri R.B Yadav

Secy. to GM/Dy GM- Shivendra Mohan

PRODUCTS AND MARKET

EDM

WDG4 - 4000 HP GOODS LOCOMOTIVE

Broad Gauge freight traffic Co-Co diesel electric locomotive with 16 Cylinder 4000 HP engine, AC-ACtransmission, microprocessor controlled propulsion and braking with high traction high speed cast steel trucks.

First turned out in 1999 with transfer of technology from General Motor (USA), this locomotive has



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exceptional fuel efficiency and very low maintenance requirements. It is specifically designed for heavy haulfreight traffic requirements of Indian Railways for the 21st Century.

The heart of loco Traction Control Converter uses the GTO devices (obsolete technology). Now theIGBT devices, has been introduced from Oct 2006. It is the latest technology and will be cost effective andgives higher reliability.

The locomotive power has been upgraded to 4500 BCV and the first Loco (Loco No 12114) wasmanufacturedin May 07

General Characteristic



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Installed Power

Axle Load

Gauge

Wheel arrangement

Wheel diameter

Height

Width

Overall Length (Over Buffer Beam)

Weight

Max tractive effort

Maximum speed

Fuel tank capacity

Locomotive Control

4000 HP

21 T

1676 mm

Co-Co

1092 mm

4201 mm

3127 mm

19964 mm

126 T

54 T

100 Kmph

6000 lts

EM 2000 with SIBAS-16 Traction Control

WDG4-4000 HP GOODS LOCOMOTIVE TRACTIVE EFFORT & POWER CHART

ALCO



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2300 HP CAPE GAUGE LOCOMOTIVE

TECHNICAL INFORMATION

2300 HP Main Line Locomotive, having fabricated cape gauge Co-Co bogies. These are provided with twodrivers cabs, one at each end. These locomotives have been supplied to Angola and Sudan.

Wheel Arrangement Co-Co

sTrack Gauge 1067 mm Cape Gauge

Weight 102 t

Overall Length 17620 mm

Wheel Diameter 921 mm

Gear Ratio 18 : 93

Maximum Speed 100 Kmph

Diesel Engine Type: ALCO 251-B 12 Cyl. V- Engine

HP 2300

Transmission Electrical AC/DC

Brake IRAB-1

Loco Air, Dynamic, parking

Train Air

Fuel Tank Capacity 3000 Liters

2300 HP METER GAUGE LOCOMOTIVE



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2300 HP Main Line Locomotive, having fabricated meter gauge Co-Co bogies. These are provided with twodrivers cabs, one at each end. These locos have been supplied to Malaysia, Senegal and Mali.


Track Gauge 1000 mm Meter Gauge

Weight 102 t

Overall Length 17620 mm


Gear Ratio 18 : 93


Diesel Engine Type: ALCO 251-B 12 Cyl. V- Engine

HP 2300

Transmission Electrical AC/DC

Brake IRAB-1

Loco Air, Dynamic, parking

Train Air

Fuel Tank Capacity 3000 Liters



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BROAD GAUGE MAIN LINE FREIGHT LOCOMOTIVE

WDG 3A


Diesel Electric main line, heavy duty goods service locomotive, with 16 cylinder ALCO engine and AC/DCtraction with micro processor controls.


Track Gauge 1676 mm

Weight 123 t

Length over Buffers 19132 mm


Gear Ratio 18 : 74

Min radius of Curvature 117 m


Diesel Engine Type : 251 B,16 Cyl.- V

HP 3100

Brake IRAB-1

Loco Air, Dynamic

Train Air

Fuel Tank Capacity 6000 liters



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MARKETING

Marketing Division of DLW provides a single window service to our non-Railway customers. It deals with:

Sale of locomotives and spares to Non Railway Customers

Supply / Sale of DG sets and spares to Railways and Non Railway Customers

Single window services to customers

Export of locomotive through intermediaries like RITES and IRCON

Availing of credit under MODVAT scheme.

Settlement of warranty claims and addressing complaints

Analysis of failure reports of NRC and Export locomotives and initiation of corrective and preventive

actions

Payment of excise duty and CST /VAT on sale of excisable goods and settlement of disputed cases



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Details of Locomotives Exported during last 5 years

SN PeriodNo of Export

LocosHorsepower Gauge Country

1 2002-2003 10 2600 HP BG Vietnam

2 2003-2004 03 2600 HP BG Bangladesh

3 2005-2006 03 1350 HP Cape Gauge Sudan

4 2005-2006 11 1350 HP MG Myanmar

5 2006-2007

01

02

05

1350 HP

2300 HP

2300 HP

Cape Gauge

Angola

Angola

Sudan

6 2007-2008

03

01

2300 HP

2300 HP

MG

Mali

Senegal

7 2008-2009 01 3000 HP Cape Gauge Mozambique

8 2009-2010 03

YDM-4

6374Dan Cross Mozambique

9 2010-2011 04

YDM-4

6706

Cape Gauge Mozambique



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VISION & MISSION

Vision & Mission

Our Vision -To be a world class manufacturer of Diesel - electric locomotives."

Our Mission - "We shall achieve our vision through Continuous Improvement in the areas of ProductQuality, Research and Development, Supplier Partnership, Human Resource Developmentand Team Work with emphasis on Core Competence leading to Customer Satisfaction and

Business Excellence."



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CHAPTER NO. 4

MARKETING DEPARTMENTIN DLW

Marketing Division was set up at DLW in August 1987 for sales and after sales service of locomotives to Non-Railway Customers. With the setting of this organization it has been possible to provide single window service toNon-Railway Customer for all activity connected with sale of locomotives, DG Sets and Spares.



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CHAPTER No. 5

EXPORT PROCEDURE INDLW



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EXPORT PROCEDURE IN DLW

ABOUT RITES

RITES Ltd., a Government of India Enterprise was established in 1974, under the aegis of Indian Railways.RITES are incorporated in India as a Public Limited Company under the Companies Act, 1956 and are governedby a Board of Directors which includes persons of eminence from various sectors of engineering andmanagement.RITES Ltd., an ISO 9001-2000 company, is a multi-disciplinary consultancy organization in the fields oftransport, infrastructure and related technologies. It provides a comprehensive array of services under a single roofand believes n transfer of technology to client organizations. In overseas projects, RITES actively pursues anddevelops cooperative links with local consultants / firms, as means of maximum utilization of local resources andas an effective instrument of sharing its expertise.

RITES are internationally recognized as a leading consultant with operational experience of 62 countries in

Africa, South East Asia, Middle East and Latin America. Most of RITES foreign assignments are for NationalGovernments and other apex organizations.

SERVICES BY RITES

Facilities Planning for Rolling Stock Maintenance

Technical Assistance for Workshop Modernization

Supply & Commissioning of Workshop Machinery and Plant

Supply, Commissioning and Maintenance of Locomotives & Rolling Stock

Leasing of Locomotives and Passenger Coaches

Supply of Spares

Supply of Signaling Equipment

Rehabilitation of Locomotives and Wagons

Rehabilitation of Traction Machines & Railway Bridges



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RITES ROLE IN DLW

In DLW, RITES is the representative of Export Division in Marketing Department. Through RITES all the locoare Exported.DLW is only the manufacture of loco, but the procedure of sending loco from DLW to another country is done by

RITES Ltd. The conclusion is that all the Procedure of Export is done by RITES Ltd. On the behalf of DLW.DLW provides free service to NRC and export locomotives up to warranty period and thereafter supplies spareparts and technical support on payment basis.

For Indian customers DLW directly deals with through marketing wing.

And For export locomotives, DLW deals through RITES ltd.

CONTRACT BETWEEN RITES & DLW

As we know that DLW has done export through RITES ltd. For maintaining this relationship, time to time as perrequirement a contract made, name as BACK TO BACK CONTRACT between both the organizations.This contract updates the relationship between RITES & DLW legally. Its also include the related informationabout loco and export procedure for further process



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DETAILED OF EXPORTED LOCO IN DLW

DLW built Locomotives have been successfully exported to all this country as mention above with their

no. & HP.:

SN PERIOD NO. OF

EXPORT

HORSEPOWER COUNTRY

1 2002-03 10 1350 HP Vietnam2 2003-04 03 2600 HP Bangladesh3 2004-05 03 1350 HP Sudan4 2005-06 11 1350 HP Myanmar 5 2006-07 01

0205

1350 HP2300 HP2300 HP

AngolaAngolaSudan

6 2007-08 0301

2300 HP2300 HP

MaliSenegal

7 2008-09 01 3000 HP Mozambique8 2009-10 03 3000HP Mozambique9 2010-11 04 3500HP Mozambique

At INTERNATIONAL LEVEL the main competitors of DLW (Asia Largest manufacturing of Locomotive) areCHINA, JAPAN,



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GENERAL PROCODURE OFEXPORT

NOTE: In DLW, all the activity of EXPORT is done by the RITES LTD.

GENERAL PROCEDURE OF EXPORT TRADE

Usually in any Export House following steps are followed to export

The goods. These steps are:-

Receipt of Enquiry and sending Quotation.

Receipt of order or indent

Assessing Importers credit worthiness and securing a guarantee

Obtaining Export License

Obtaining Pre-finance License

Production or Procurement of goods

Pre Shipment Inspection

Excise Clearance

Obtaining Certificate of Origin

Reservation of shipping space

Preparation of Invoice

Packing and Forwarding

Insurance of Goods

Custom Clearance



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Obtaining Mates receipt

Payment of Freight & Insurance of Bill of Lading

Securing Payment

EXPORT PROCEDURE IN SEVERAL STEPS

STAGE 1: Customer Search and Receiving of Order

This work is assigned to the marketing persons of the company (RITES) theyEstablish the relationship with customer. Usually the company getsThe order in three ways:-

Through Personal Visit:

Through International Trade Fair & Exhibition

Through Internet

Through Global Tender

STAGE 2: ORDER IMPLEMENTED

Once the order has been received, the export order is scrutinized with reference to the terms and condition of the

export contract. This is the most crucial stage of any export process. All subsequent action and reaction will

depend on the terms and condition of the export contract. It is ensured that contract has been entered into in

accordance with the prevalent export policies of the country and foreign exchange regulations like FERA, FEMA

The export order must specify the mode of payments such as:

Letter of Credit [L/C]

Documents on Payment [D/P]

Documents against Acceptance [D/A]

In this stage, the Company prepares all the necessary documents including Sales Contract required by the buyer

and submits to the negotiating bank in exact specified format and manner. The most important documents

demanded by the importer are:-

Bill of exchange

Commercial Invoice

Packing List

Marine Insurance Policy



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Certificate of Origin

Then Buyer Company sends the Sales Contract which is the declaration by them that all the terms and conditionsof order are accepted to them.STAGE 3: PERFORMANCE OF MARKETING DEPT.

As soon as the order has been confirmed the Buyer Company sends the Sales Contract putting their own sealwhich is the declaration by them that all the terms and conditions of order are accepted to them.

After the contract, the marketing dept. places the Manufacturing Order on the Production Manager & advice theMaterial Procurement. Department for insuring the availibity of purchase item required for the purchase of Goods.This note contains the description of the goods as has been given in export order along with the instructions givenby importer.The date by which the goods must be ready is clearly indicated in Manufacturing Order.On the basis of work order Manufacture start. After receiving MO Production of the goods are started.STAGE 4: PACKING & SENDING OPTION

Then as per the instructions given by importer goods are packed in Packing Department. Now these packed goodsare sent to shipping agent through transporters or through Courier.

STAGE 5: FINAL INSPECTION

After the stage of inspection, it is carried out by the Quality assurance dept. of DLW & the final inspection is done

by DLW, RITES & IMPORTER (If importer so desire)

WORKING OF COMMERCIAL DEPARTMENT

i.e. EXPORT DOCUMENTATION

Documentation Department is usually called as Commercial SectionAT DLW the export is done by the Marketing Dept. up to the stage of Manufacturing & Turning out from DLWthen after the other export formalities are carried out by the RITES.Commercial Section can be shown by following figure:-

COMMERCIAL SECTION COMMERCIAL MANAGER DEPUTY MANAGER ASSISTANT MANAGER CLERICAL STAFF & WORKERS

The main function of the commercial section is to prepare and maintain the documents of each and every activityinvolved in the Export procedure. Documentation is mainly done to give justification before Reserve Bank ofIndia of foreign exchange transaction which is carried out in Export Process. Thus, the Export Documents

represents the total Export Procedures.



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Mainly the Export Documents Can be divided into two types:-

(A) COMMERCIAL DOCUMENTS:-

These documents are used by Custom of Trade in International Commerce by exporters and importers indischarge of their respective legal and other incidental formalities under

Sales contract. Commercial Documents can be further divided into two types of documents which are as follows:-1) PRINCIPAL DOCUMENTS.

2) AUXILLARY DOCUMENTS.

1. PRINCIPAL DOCUMENTS:-These documents are required for effective physical transfer of goods and title thereto from exporter to

importer. Following documents come under this category:- Realization of Export Sale Proceeds

Commercial Invoice and Invoice prescribed by Importing Country

Packing List

Certificate of Inspection Certificate of Insurance/Insurance Policy

Bill of Lading or Combined Transport Documents

Certificate of Origin

Bill of exchange

Shipping Advice



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2. AUXILIARY DOCUMENTS:-

These documents are required in connection with preparation or procurement of Principal Expordocuments. Following documents are Auxiliary documents:-

Proforma Invoice

Shipping Instruction Insurance Declaration

Intimation for Inspection

Shipping Order

Mates Receipt

Application for Certificate of Origin

Letter to Bank for negotiation or collection of documents

(B) REGULATORY DOCUMENTS:-These documents are prescribed by different Government Department/Bodies for compliance of

formalities under relevant laws, rules and regulations governing export trade viz. FERA ,Import & Export(control) Act, Central Excise Rules,Export (Quality Control &Inspection) Act, Customs Act and Major Port Trusts Act etc. Following documents areof Regulatory nature:

Exchange Control Declaration-GR Forms

Freight Payment Certificate

Insurance Premium Payment Certificate

Gate Pass-I/II

ARE-1/ CT-1 Forms Shipping Bill/Bill of Export

Port Trust Copy of Shipping Bill/ Export Application/ Dock Challan

Receipt for Payment of Port Charges

Vehicle Ticket

Broadly we can classify the total working ofCommercial Section in the three stages. They are:-1) Pre Shipment Documentation2) Shipment Documentation

3) Post Shipment Documentation



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1. PRE-SHIPMENT DOCUMENTATION :

Pre shipment procedure starts from the very beginning i.e. receiving the order and it ends with handling over thegoods to the transporters. In the case of Advance payment following documents come under Pre shipmentdocuments:-

After receiving the export order, Sales Contract is sent to buyer his is resent by buyer after putting their seal alongwith the 30% of total Invoice value (in the case of advance payment) then after packing of goods, Packing Slip issent from the Packing Department, with that Slip ,Packing list is prepared in Commercial section.After checking Packing List thoroughly, Invoice is prepared and then both Packing List as well as Invoice is sentto buyer to get the remaining 70% of the payment. When they make total payment goods are sent to them.In this procedure, first of all goods are handled over to the transporter. Then transporter gives whole goods toClearing Agent.

2. SHIPMENT DOCUMENTATION :

After taking over the whole goods by Clearing Agent, Shipment Procedure is started. If Consignment is going tobe exported by Sea, goods are sent from the company to Mumbai. If goods are to be shipped by Air then goods aretransported to Delhi Airport. Shipping Instruction (3 Copies) is sent to Clearing Agent which contains theinformation about consignment. For e.g. Dimension of Cartons i.e. No. and Size of Cases, Detail of items, Nameof Transporter etc.When goods are loaded on to the Ship/Aero plane Challan is provided by the owner of Ship/Plane. Challan, Bilof Clearing agent (in the case of FoB), Invoice and ARE (Application for Removable of Excisable goods) are sentto Buyer.Terms of Delivery means in delivering the goods to the Buyer which cost will be included whether it will include

only cost of production or it will also include transportation costs. Mainly there are three terms of Delivery:

FOB (Free on Board):- It is also called as Freight on to-pay Basis that means freight charges will bepaid by Buyer.

C.I.F. (Cost including Insurance & Freight):- It is also called as Freight on Pre-Paid Basis tha

means Freight charges will be paid by Exporter and Goods will be insured.

C&F (Cost including Freight):- It means only Freight charges will be paid by exporter and Insurances

charges will be covered by buyer itself.



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3). POST SHIPMENT DOCUMENTATION:-

Post shipment Documentation start when goods are reached at their destination then to clear the goods from the

customs in the Importer Country some documents are needed. Which are as follows:-

Shipping Advice: - It is sent as covering letter. it contains details of Consignment and clearing agent .a). Invoice (2 copies)

b). Packing List (3 copies)

c). Bill of Lading (1 original & 1 Xerox)

d). Airway Bill (1 Xerox & 1 original copy)

e). Shipping Bill (Original):- Shipping Bill is provided by Customs of India to the Clearing Agentof the Company after checking of goods. Without Clearance of Customs no export can take place. It has

all the details of Export Order like details of items, Invoice value of total consignment, Foreign Currencyinvolved, Exchange Rate, Draw back details, Date of Export etc. This shipping Bill is needed at the

customs of Importers Country as well as Bank of Exporters to get the Payment. It is divided in the two

sections:

1. Exchange Control Copy: - First two Pages of Shipping Bill in which Exchange Rates and Freight chargesInsurance Charges (if applicable) are indicated, are called exchange control copy.

2. Export Promotion Copy: - Govt. give export incentive on certain items so, in Shipping Bill all details aregiven regard in Drawback like their rates and amounts.

DOCUMENTS SENT TO BANK:-

a). Invoice (2 Copies)

b). Packing List (original)

c). Exchange Control Copy of Shipping Bill (original)

d). Bill of Lading (2 Copies)

c). Copy of Original FIRC (Foreign Inward Remittance Certificate)



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When all the documents are sent to bank, whole transaction is justified and then Bank sends Reference No. withthat Ref. No. Bank Realizations Certificate is made in the Company which is again sent to Bank after 6-8 monthsBank sends that Certificate to the Company by putting their own seal. This is the last document in any ExportOrder.

DOCUMENT USED IN PRE-SHIPMENT

SALES CONTRACT

PROFORMA INVOICE

COMMERCIAL INVOICE

MARINE INSURANCE POLICY

SALES CONTRACT

It is a legal contract of exchange of goods, services or property to be exchanged from seller to buyer (in case ofexport: from exporter to importer) for a pre-decided value in money or money equivalent paid or promised to paysame. It is a specific type of legal contract in which all details regarding trade which is going to take placebetween any two countries. It contains:-

Contract No.

Invoice of Delivery Period

Date

Port of Loading

Port of Destination

Mode of Payment

Exchange Rate

Invoice

Packing Description

Freight Charges Insurance Charges

Name of Sellers Bank

Description of Goods



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PROFORMA INVOICE

A proforma invoice is a very common international document; despite its name, it is not an invoice at all but aquote. An international transaction includes so many variables that it is sometimes difficult for importer to have agood grasp of final cost of goods. For e.g. the cost of goods is increased by the cost of shipping, insurance and soforth. In order to determine these costs the import may request for a proforma invoice which helps in determiningthe accurate and precise preview of actual invoice which is usually prepared when a transaction is going to takeplace. In those cases when exporter requests payment on a letter of credit basis, the information contained inproforma invoice is used by issuing bank to open the letter of credit. It contains:-

Name & Address of the Seller

Name & Address of the buyer

Date

Delivery Time

Terms & Conditions

Port of Loading

Port of Discharge

Terms of Trade

Freight to be covered by

Insurance to be covered by

Bankers Name

Mode of Transport

Currency used


Signature

COMMERCIAL INVOICE

Commercial invoice is the basic document in any trade. It is also called document of contents because itgenerally contains all the information required for preparation of all other documents.A commercial invoice is the sellers bill of merchandise. There is no standard format for commercial invoice butusually it contains the following:



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Exporters Name & Address

Invoice No.

Date

Buyer order No.

Consignee Name

Buyer Name and Address

Country of origin of goods

Country of final destination

Terms of Delivery & Payment

Pre Carriage by

Vessel/Flight No.

Port of Loading

Port of Discharge

Final Destination of Goods

Marks & Nos.

Number of Packages


Container No.

Quantity

Rate

Amount

Declaration

Signature of Authority



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MARINE INSURANCE POLICY

It provides cover against perils of sea and other connected risks to which goods are exposed to. It is same asany other insurance and usually done to minimize the risk related to shipment of goods. It contains:-

Certificate No.

Open Cover No.

Open Cover Date

Assured Name

Address of the Assured Receipt Date

Effective From

Issued at

Net Premium

Name of the Issuing Company

Total Sum insured

Sum Insured in Foreign Currency

Basis of Valuation

Country of Destination

Mode of Transport

Packaging Description

Commodity Description

Terms of Insurance

DOCUMENT USED IN SHIPMENT



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PACKING LIST

CERTIFICATE OF ORIGIN

CERTIFICATE OF INSPECTION

MATES RECEIPT

BILL OF LADING

PACKING LIST

It is a document which shows nature and the number of goods etc.put in each package/container with distinctivenumber of marks. This is generally needed by the importer when he is importing different types or sizes ofmerchandise so that he may identify the nature of goods in each package. It is also used by custom for checkingthe goods on random basis or otherwise.Thus, packing list is mainly used to facilitate easy identification of goods in each package/container by theimporter or custom. It generally contains:-

Exporters Name & Address

Invoice No.

Date

Buyer order No.

Consignee Name

Buyer Name and Address

Country of origin of good

Country of final destination

Terms of Delivery & Payment Pre Carriage by

Vessel/Flight No.

Port of Loading

Port of Discharge

Final Destination of Good

Marks & Nos.

Container No.

No. & Kind of Packages

Description of Goods Quantity of Goods

Remarks, if any



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CERTIFICATE OF ORIGIN

This is a document which is mostly required by Common wealth Countries. It is a certificate of declaration by theshipper regarding origin of goods. The certificate is generally attested or certified by the Chamber of Commercefor industry or other agency designated for this purpose. The main aim of this certificate is to enable the importerto get concessional tariffs.It contains:-

Exporters business Name, Address & country

Consignees Name, Address & country

Means of Transport & Route

Item No.

Marks & Nos. of Packages

No. & Kind of Packages, description of goods

Origin of country

Gross Weight & other quantity No. & Date of Invoices

Certification & Signature by Chamber of Commerce

Declaration & Signature by Exporter

CERTIFICATE OF INSPECTION

For ensuring the quality government has made it compulsory for certain products that these should be inspected bysome authorized agency. EXPORT INSPECTION COUNCIL OF INDIA (EICI) is one such agency which carriesout such inspections and issues the certificate that the consignment has been inspected as required under theExport Quality Control and Inspection Act, 1963 and satisfies the conditions relating to quality control andinspections as applicable to it and is export worthy. Some countries have made it mandatory for the goods beingimported to their countriesIt contains:-

Beneficiary Name & Address

Applicant Description of the Goods

Bill of Lading quantity

For Transportation to

Remarks

Item wise/Size wise Break up of Quantity



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MATES RECEIPT

It is issued by the chief of vessel after cargo is loaded and it is duly signed and stamped by Chief Officer orMaster of vessel. The shipping company does not issue the bill of lading unless it receives the Mates receipt.It contains:-

Mate Receipt No.

Shipping Bill No. Date

Voyage

Exporters Name

CHA Name

Marks

Quantity of Goods


Cargo Weight

Consignee Name Terminal or Chief Officer signature

BILL OF LADING

The Bill of Lading is a document issued by the shipping company or the agent acknowledging the receiptmentioned in the bill for shipment on board of vessel and undertaking to deliver the goods as per the order andcondition as received by the consignee or according to his order. The Bill of Lading is issued in standardizedaligned document format.It contains:-

Shippers Name

Consignee

Notifying Party

Pre Carriage by

Place of Receipt by Pre Carrier



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Ocean Vessel

Port of Loading

Port of Discharge

Marks & Nos.

No. of Packages or Units

Kind of Packages, description of Goods

Weight of Goods

POST SHIPMENT DOCUMENT

SHIPPING BILL

BILL OF EXCHANGE

CONSULAR INVOICE

BANK CERTIFICATE OF EXPORT & REALISATION

SHIPPING BILL

The shipping bill is the main document on the basis of which customs office grants the permission for export.After loading the goods on ship it is prepared by clearing agent but it is mainly needed to justify the goods goingto be exported.It contains:-

CHA Name



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Date

State of Origin

Exporters Details

Consignee

Port of Loading

Port of Discharge

Gross Weight

Total Packages

Net Weight

Country of Destination

Nature of Cargo

Marks & Nos.

Foreign Exchange Bank A/C No.

RBI Waiver No.

Invoice Details

Exchange Rate

Insurance Charges

Freight Charges

Discount

Commission

Packing Charges

Draw Back Description

Nature of Payment

Buyer Name & Address

BILL OF EXCHANGE

It is a written instrument whereby the person issuing it directs the other party to pay a specified amount to acertain person or to bearer of the instrument i.e. bill of exchange.In the context of an export-import transaction, bill of exchange is drawn by the exporter. According to whichimporter are to pay a certain amount to a certain person or to the bearer of bill of exchange. Export consignment is

passed on to the importer only when the importers order contains bill of exchange.It contains:-

Amount of bill

Place

Name & Address of the Bank in which amount is to be paid



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Order by exporter

Invoice No.

Name & Address of the import

Exporters Signature

BANK CERTIFICATE OF EXPORT & REALISATION

This certificate contains the information of export consignment and as to be submitted to the bank for eachand every consignment.The information required for making bank certificate is obtained by various shipment documents named asInvoice, Shipping Bill, Bill of Lading, Airway bill, Insurance bill, Freight Memo etc Three copies of bankcertificate addressed to the JOINTDIRECTOR OF FOREIGN TRADE is prepared and submitted to bank. Copies of Export Invoice, custom

attested EP (Export Promotion) copy of Shipping Bill and other relevant documents are also submitted along withthe Bank CertificateThe Bank Certificate is declaration by the exporter that they have forwarded the documentary export bill to itsbank for the collection or negotiation or purchase as per particular given in Bank Certificate. The bank verifies theinformation given by the exporter and certifies the same. The bank passes the original copy with the relevant copyof attested documents to the exporter and duplicate copy to the Licensing Authority. Bank retains the triplicatecopy for its record.It contains:-

Invoice No.

Export Promotion Copy of Shipping Bill duly-authenticated by custom

Description of Goods as given in Custom Authenticated-Shipping Bill

Bill of Lading No.

Destination of Goods

Bill Amount

Foreign Exchange used

Freight Amount as per Bill of Lading

Insurance amount as per Bill receipt

Date of Realization of export proceeds

SDF (Sales Declaration Form) Form No. & Signature of Exporter

MODES OF PAYMENT



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There is a no. of different payment methods that can be used when importer deals with exporter. Mostly threeof them are used. Which are as follows? DOCUMENTS AGAINST PAYMENT LETTER OF CREDIT

DOCUMENTS AGAINST PAYMENT

The exporter makes the shipment and sends the shipping documents to the exporters bank for collection. Thebank then sends the shipping documents along with a collection letter to the importers bank, which then sends acollection notice to the importer. The importer makes payment upon receiving the notice, and only after paymentthe importer receive the original shipping documents with which they take the physical possession of the goods.The major advantage of the use of DP is the low cost as compared to use a Letter of Credit. But this is offset by

the risk that the importers sometimes reject the documents for some reasons (or when they are not in order).Sincethe cargo has already been loaded (to generate the documents) exporters have little recourse against the importerin case of non-payment. So a document against payment (DP) arrangement involves a high level of trust betweenthe exporters and importers.

LETTER OF CREDIT

A Letter of credit is very common and familiar document in setting payment between buyer and seller. It is asigned instrument embodying an undertaking by the bank of the buyer to pay the seller a certain sum of money onpresentation of documents evidencing shipment of specified goods and subject to compliance with stipulatedterms and conditions. The International Chamber of Commerce (ICC) has a published a set of universarecognized guidelines governing the issue of a Letter of Credit in Uniform Custom and Practice of DocumentaryCredit (UCPDC).Following parties are involved in issuing a letter of credit:-

1. APPLICANT: - The firm asking for a Letter of Credit is applicant. Usually the applicant is importer whois going to import goods but it is not in position to pay for the goods currently.

2. BENEFICIARY: - The firm named in a letter of credit as the firm to whom the bank is insuring payment

if the importer does not pay. Usually, the beneficiary of a letter of credit is the exporter.



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3. ISSUING BANK: - It is that bank which provides the letter of credit to the importer. It has the

contractual obligation to pay the beneficiary (exporter) on the presentation of necessary documents by

them when importer is unable to pay.

4. ADVISING BANK: - In a Letter of Credit transaction, the bank that determines whether the issuing bankis a legitimate bank and the terms of the Letter of Credit offered by the issuing bank on behalf of the

importer are appropriate. Generally, the advising bank is the exporters regular bank. But in some cases theexporters bank will delegate this role to another bank which is more experienced.

LETTER OF CREDIT

(PAYMENT PROCEDURE)

The Letter of Credit (L/C) payment procedure is usually as follows:-

The Importer applies to open the L/C to exporter through A bank that can open the L/C in their

country.

The opening Bank will inform the exporter that L/C has been established.

Exporter checks all the terms and conditions listed in the L/C. If all the terms and conditions are

acceptable the will arrange the shipment within the time specified in the Letter of Credit.

After the goods are loaded onto the ship without any damage, the captain of the ship will issue

clean Bill of Lading to the exporter. With clean Bill of Lading only they can claim the ownership

of goods.

Clean Bill of Lading and other relevant documents will be submitted to their bank to gather the

irrevocable Letter of Credit. It is an often used payment method. This is a formal payment methodthat offers a lot of protection to the parties. In simple words, a Letter of Credit is a letter written by

the importers bank to the exporter. It verifies that the payment will be guaranteed when bank is

presented with concrete documents (Bill of Lading, Freight documents etc.). Mostly Letters O

Credit are irrevocable once the importer has sent them.

A Letter of Credit usually includes applicant (the importer), beneficiary (I/E agent), opening bank,negotiating bank, specification and quantity of the goods, amount of money, loading port and

destination port, shipment date, the validity date of the L/C, terms and conditions agreed by boththe importer and exporter and details of the documents required by the importers (Bill o

Exchange, Commercial Invoice, Packing List, Insurance Certificate etc.)

The exporters bank will send the clean Bill of Lading and relevant documents to opening bank.



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Opening bank will inform them that all documents are received.

Then importer will go to the bank to make the payment to get the clear Bill of Lading and relevant

documents.

With all of these documents, they can clear the import customs and pick up the goods after the

goods have arrived on the destination sea port.

L/C is used for the larger quantity order shipped by the sea.

The typical L/C scenario takes 14-21 days to complete.

STEPS IN PROCESSING OF A LETTER OF CREDIT

The main steps in the processing of a Letter of Credit are as follows:- Issuance of a Letter of Credit Shipment under a Letter of Credit Payment under a Letter of Credit

1. ISSUANCE OF A LETTER OF CREDIT:-

We can understand the first and foremost step of processing of a Letter of Credit with the help of followingdiagram:-

a. First of all the exporter and the importer agree on a sale under Letter Of Credit terms. The exportersends a proforma invoice to importer.

b. Then importer takes the proforma invoice to its bank and requests for a Letter of Credit.


EXPORTERS BANK IMPORTERS BANK

EXPORTER IMPORTER


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c. The importers bank issues a Letter of Credit and sends it to the exporters bank.

d. The exporters bank receives and revises the Letter of Credit. Then it notifies the exporter that it is readyto ship the merchandise to the importer.

2. SHIPMENT UNDER A LETTER OF CREDIT:-

a. The exporter sends the merchandise to the importer but gathers all the documents and sends them to theexporters bank.

b. The exporters bank checks that whether the documents fulfill the requirement of Letter of Credit or notand then sends them to the importers bank.

c. The importers bank also verifies the documents that they match with the requirement of Letter of Creditand notifies the importer that everything is in order.

3. PAYMENT UNDER A LETTER OF CREDIT :


EXPORTERS BANK IMPORTERS BANK

EXPORTER IMPORTER

EXPORTERS BANK IMPORETRS BANK

EXPORTER IMPORTER


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a. The importer pays the importers bank in order to collect the documents that will be needed to collect themerchandise and clear the customs.

b. The importers bank sends the importers payment to exporters bank.

c. The exporters bank notifies the exporter that they have been paid by importer.

CHAPTER NO. 6

REASERCH METHODOLOGY



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The project on Dlw Export procedure to Non-Railway Customer is based on Two Researches.

1). Exploratory research design &

2). Conclusive research design.

The approach of research was survey and instrument used was questionnaire for quantifying whether the

organization employees are very well aware and satisfied with the facilities provided by the DLW.Before going through the questionnaire first one should understand the meaning of the terms used in the

project for better understanding of the project report. These are exploratory research and conclusive research

sampling plan and reliability of the questionnaire.

WHAT IS EXPLORATORY RESEARCH?

Investigation into a problem or situation which provides insights to the researcher. The research is meant to

provide details where a small amount of information exists. It may use a variety of methods such as trial studiesinterviews, group discussions, experiments, or other tactics for the purpose of gaining information.

WHAT IS CONCLUSIVE RESEARCH?

conclusive research is meant to provide information that is useful in reaching conclusions or decision-making. It

tends to be quantitative in nature, that is to say in the form of numbers that can be quantified and summarized. It

relies on both secondary data, particularly existing databases that are reanalyzed to shed light on a different

problem than the original one for which they were constituted, and primary research , or data specifically

gathered for the current study.

WHAT IS SAMPLE?



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Sample is defined as subgroup of elements of the population selected for participation in the study. Samplecharacteristics, called Statistics, are then used to make inferences about the population parameters

SAMPLING PLAN;

There is no sampling plan as such as the study involved in understanding the various processes and analyzing

them. The study involved in the detail analysis of secondary data gather from various sources and there for nosample size and plan has been considered.

Type of the Data

Sources of data:Data has been collected through literature survey and expert opinion. The part of data iscollected from various primary sources and secondary sources.

Primary Data Sources Information gathered through interview and discussing with departmentalmembers.

Secondary Data Sources Past Data

Type of Research Exploratory & Conclusive Analysis

Type of Sampling plan No Sampling plan

Sample Size No Sample Size



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CHAPTER NO. 7

DATA

ANALYSIS



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LOCOMOTIVE PRODUCTION

Varieties of management interventions, active co-operation of employees, and their high level of motivation

enabled DLW to increase its output significantly in the current decade. This is depicted below:

In current year, DLW has produced 267 locomotives (including 500 HP EMD locomotives) till MARCH2012.


10295 126

150 162222

222

267

258


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TYPE WISE LOCOMOTIVE OUT-TURN

2007-08 2008-09 2009-10 2010-11

Type of

LocoTargets Actual Targets Actual Targets Actual Targets Actual

ALCO 138 148 148 157 168 175 148 167

GM 62 59 80 80 62 59 80 80

EXPORT 04 04 0 01 04 04 0 1

NRC 16 20 22 19 16 20 22 19

Total 220 222 250 257 250 258 250 267

TURNOVER

Year Rs. in crores

2003- 04 558.00

2004 05 855.88

2005 06 934.65

2006 07 872.05

2007 08 984.65

2008 09 1297.54

2009-10 1560.28

2010-11 2404.38



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CHAPTER NO. 8

FINDING AND CONCLUSION



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After completing my project I familiarize with DLW, and I get that diesel locomotive works is a famous

technological temple, which came in existence, in 1964 by Late Shri Lal Bahadur Shastri. DLW export to the

following countries like Sri Lanka, Bangladesh, Angola, Tanzania, Vietnam,Sengal Mozambique, Malaysia

Sudan, Myanmar etc.

There are many facilities for the employees as hospital, health club, sports club, school and college, sewing center,

technical training center etc. In short we can say that all the facility which the ordinary employee needed is

provided by welfare department and the entire employee are very well aware with welfare programmes. They take

advantage with programme in any form. Very few improvement but important improvement, which mentioned

above, is needed in welfare programmes, which make the employees more satisfied.



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FINDINGS :

The above study helps to identify the positive and negatives of DLW, Varanasi. This is the major key area

the employees got benefited directly through direct & indirect way..

Although company is doing good at their business, as we can analysed from the above interpretation that

Locomotive turn out is constantly increasing.

Company is able to achieve its target

And if we compare the the actual turnover in year 2003-2004 i.e. 558 with 2010-2011 i.e. 2024.38

which is more than double.

It shows that company is in its growth stage.

But on the other hand,during this study I found few negative points which I personally will that company should

rectify for the effective production system.

The major problem that I found was Ineffective utilization of resources Companys input are more than

requirement, employees were wasting spare parts of mass production , and no one was their to take care of

it, which may cause loss to company in near future.

Excess wastage of raw material during transfer from one place to another.

Absence of proper supply of required equipments, due to which company facing high lead time and turnup time.

They dont have product inception process, during transportation or warehousing. Which me cause

question to their quality.

There was no proper schedule for employees, they were not sincere during work hours.

Employees were not cooperative and absence of proper coordination of work.

So, the company takes this study to rectify the problems in few above given areas areas due to which

production process get effected, So that company can play more better in upcoming future.



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CHAPTER NO. 10

LIMITATIONS



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There is the possibility of ambiguous replies from the respondents which can give untrue or misleading

result.

Few people did not have the time to fill up or answer the Questionnaire.

The responses are quite objective in nature.

There was low rate of return of the dully filled in questionnaire due to the biasness of the respondents.

Few people were not responding as expected from them and they were considering survey a useless

activity.



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CHAPTER NO. 10

LEARNING EXPERIENCE



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Learning Experience

Working on this project was a pleasure for me as I learned lot of things which was unknown to me before doingthis project. I worked In, Heavy Machine Shop (HMS) and Marketing Department and my job descriptionincludes regular updating status of exported locomotives, to know about all general export procedure andmaintaining other documents related to Production Unit, Diesel Generating sets and their spares for IndianRailways and Non-Railways customer. Apart from my project other work which I learned during this SIP includesregular details of Export materials, preparing data to know the availability of spares & maintenance olocomotives, regular updating attendance of all employees etc. All these works are most important part ofMarketing department and I learned lot of things doing them practically.

I tried to give my best effort on this project but it could be more better if I would have theoretical knowledge

about General Export Procedure and other Documentation works before taking this project. As this topic was new

to me and due to time constraint I was not able to through each and every Procedure.

Learned many things and those Marketing activities which are important part of every organization. Learning

experience was good as all the staff members were friendly and my mentor put his best to make me learn.

This Experience would help me in future as practical knowledge is much more important than theoretical one

Knowledge about Export procedure to Non Railway Customer was most important thing as every export concern

has to maintain all this documents related to Obtaining Export License, Pre Shipment Inspection, Excise

Clearance, Preparation on invoice, Packaging and forwarding, insurance of goods, Custom Clearance, Payment of

Freight & Insurance of Bill of Lading etc. Export procedure plays important part in every organization so this

project will be beneficial for me in future.



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CHAPTER NO. 11

BIBLIOGRAPHY



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Books-

C.K.Kothari - Research Methodology

DLW Year Book

Websites-

www.d.l.w.vns.com

www.wikipedia.org

www.google.com

www.ibnlive.in.com/generalnewsfeed/news/dlw-manufactures-

www.railnews1.blogspot.in

www.dailynews.aihra.org/diesel-locomotive-works



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CHAPTER NO. 12

ANNEXURE

Your valuable feedback will be appreciated. Please spend few minutes on this Questionnaire!



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Dear Sir/Madam:We are conducting a survey on Marketing division of diesel locomotive works in Varanasi city by governmentorganization. We hope for your kind co-ordination in filling the questionnaire.

Name: _________________________________ Gender:________Contact No._________________ Email id:________________________________

1: Age:a) 18-25 b) 26-35 c) 36-45

d) Above 45

2: What is your annual income?a) Below 3 Lakh b) 3-6 Lakh c) 6-9 Lakh

d) 9-12 Lakh e) More than 12 Lakh

3: Qualificationa)High school b)Intermediate c)Graduation

d)Post Graduate

4: how many years you work in d.l.w.?a)0-5 b)5-10 c)10-20

d)more than 20

5: What is your department name?

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6:What is the basic work of your department?

a)manufacturing b) buying raw materials c)selling locos

d)financial analysis e) auditing

7: Does dlw loco be insured?

a)Yes b)No

7. Which part is insured?a) Engine b) body c) Dg-set d) all

8: How many locos were manufacturing in last year 2010-2011?



79/79

a) Less than 10 b)10-25 c) 25-40

d) More than 40

9: What is the target of this year of manufacturing locos?

a) Less than 10 b)10-25 c) 25-40

b) More than 40

10: Which year the highest locos supplied?

a) 2007-08 b)2008-09 c) 2009-10

d) 2010-11

11:What is the basic work of dlw?

a) Provide loco to nrc b)provide loco to rc c)government usage

d) all of the above

12: What is the future of dlw?

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Thanks for your valuable feedback