PROJECT REPORT

ON

IMPORTS & EXPORTS OF ALL KINDS OF COMMODITIESRegistered Office:

11-2-7/4, Flat No 2A,Opp: Dasapalla Executive Court,

Ram Nagar,Visakhapatnam 530 003Andhra Pradesh, INDIALocation:11-2-7/4, Flat No 2A,

Opp: Dasapalla Executive Court,

Ram Nagar,Visakhapatnam 530 003Andhra Pradesh, INDIA

INDEX:

1. Project at a glance2. Company Profile

3. Product Introduction4. Scope of the Project

5. Constitution / Sector

6. Background of the Promoter

7. Marketing

8. Location Advantages

9. Licenses

10. Project Cost & Means of Finance

11. Notes on Project Cost

12. Notes on Means of Finance

13. Utilities

14. SWOT AnalysisProject at a Glance

1. Name of the UnitSHADVARNA COMMODITIES LTD.,

2. Office11-2-7/4, Flat No 2A,

Opp: Dasapalla Executive Court,

Ram Nagar,Visakhapatnam 530 003

3. Location11-2-7/4, Flat No 2A,

Opp: Dasapalla Executive Court,

Ram Nagar,Visakhapatnam 530 003

4. Line of ActivityImports and Exports of All Kinds of Commodities

5. SectorSmall

6. Constitution Limited

7. Name of the Promoters PILLA VENKATA RAMANA BABU

PILLA RAMA LAKSHMIPILLA VEERA SIVA KISHOREKARRI LALITHA SIVA JYOTHI

PILLA SURYA JANARDHANA RAO

POLIMERA VENKATA LAKSHMI

PILLA PADMA PYDIRAJU

Company Profile

The Limited Company M/s Shadvarana Commodities Limited is for carrying on business of exporters, importers, liaison agents, suppliers, stockiest, agents, buyers, sellers, C & F agents, dealers and distributors of all kinds of food, agricultural products, agro-herbal-horticultural, pisciculture, sericulture, floriculture and apiculture products, marine products, aqua seed and equipment etc.,

Carry on business of all kinds of selling and purchasing activities directly or indirectly both internal and external markets on its own or as commission, agents, to act as service agents for providing services etc.,

Carry on business as terminal port operators, cargo handling services, freight contractors, freight forwarding services, chatterers, clearing and forwarding agents and all kinds of merchandise, industrial, chemical and commercial goods containerized cargo and other goods and articles of every description and also to provide services of trans loading and transhipment operations.Name of the Promoters:

Mr. Pilla Venkata Ramana Babu Mrs. Pilla Ramalakshmi Mr. Pilla Veera Siva Kishore Mrs. Karri Lalitha Siva Jyothi

Mr. Pilla Surya Janardhana Rao

Mrs. Poilera Venkata Lakshmi

Mrs. Pilla Padma Pydiraju IntroductionImport:

The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country.The buyer of such goods and services is referred to an "importer

Export:

This term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country.The seller of such goods and services is referred to as an "exporter"

Balance of Trade:

Balance of trade represents a difference in value for import and export for a country.A trade deficit occurs when imports are large relative to exports.Imports are impacted principally by a country's income and it productive resources.

Types of Import:

There are two basic types of import:Industrial and consumer goods

Intermediate goods and services

Types of Export:

Physical Export : If goods physically go out of the country.

Deemed Export : If goods and services are supplied to another entity.

Export and Import Process:

Advantages of Import:Reduce dependence on existing marketsExploit international trade technologyExtend sales potential of existing productsMaintain cost competitiveness in your domestic market

Disadvantages of Import:

Importation ofitemsfrom other countries can increase the risk of getting them which is no more common in the warm weather.it leads to excessive competitionIt also increases risks of other diseases from which the country is exporting the goods.Advantages of Export:

Exporting is one way of increasing your sales potentialIncreasing sale& profitsReducing risk and balancing growthSell Excess Production Capacity.Gain New Knowledge and Experience

Disadvantages of Export:

Extra CostsFinancial RiskExport Licenses and DocumentationMarket Information

Modes of Payment:

In order to complete the export process, the payment of the exported goods has to be received by the exporters. An exporter can receive the export proceeds asADVANCE PAYMENTPAYMENT AGAINST DOCUMENTARY BILLSPAYMENT AGAINST DOCUMENTARY BILLS UNDER LETTER OFCREDITRole of Export Documentation:Export documentation plays a vital role in international marketing as it facilitates the smooth flow of goods and payments thereof across national frontiers.

Exporters are required to follow certain formalities and procedures, using a number of documents.

Each of these documents serves a specific purpose and hence carries its own significance.

A clear understanding of all documents and their purpose, how to prepare these, number of copies required, when and where to file, is a must for all export professionals.

Export Documentation in India has evolved a great deal of interest since 1990.

Efforts are on, at a faster footing to streamline and modernize the system further.

Prior to 1990, documentation was manual and it lacked proper co-ordination.

The result was lot of delays and mistakes, rendering the task very clumsy, tiresome, repetitive, and truly frustrating.

India adopted the ADS (Aligned Documentation System) in 1991 which is the internationally accepted documentation system Export documentation is complex in nature as the number of documents to be filled-in is very large, so also is the number of the concerned authorities to whom the relevant documents to be submitted.

It is, therefore, advisable to take the help of shipping and forwarding agents who will obtain and fill out the documents correctly as well as arrange for transportation.

There are buyers and exporters, buying agents, RBI, authorized dealers (where the exporter has his bank Account), buyers bank (foreign bank), DGFT, Customs and Port Authorities, VAT and Excise Authorities, EPCs, Insurance Companies, Inspection Agencies, Clearing and Forwarding Agents, Shipping Companies/Airlines and Inland Carriers etcProper Documentation will ensure smooth sailing with the requirements of the above agencies and the resulting transaction will be a successful one.

Inaccurate or incomplete documentation will result in serious financial and goodwill losses.

Such losses can be completely avoided by understanding clearly the documentation

requirements of all concerned parties and then meticulously planning to get the right documents in the right numbers, at the right places and at the right time.

Classification of Documentation:

Export Documents can be classified into following four categories:

(1) Commercial Documents

(2) Regulatory Documents

(3) Export Assistance Documents

(4) Documents Required by Importing Countries

(1) Commercial Documents: These documents are used by exporters/importers to discharge their respective legal and other incidental responsibilities under sales contract.

Commercial documents can be further sub-divided into:

(i) Principal Commercial Documents

(ii) Auxiliary Commercial Documents

(i) Principal Commercial Documents: These documents serves the following purposes:

(a) To effect physical transfer of goods and title of the goods from exporter to the buyer.

(b) To realize export sales proceeds.

Principal Documents include:

Commercial Invoice (and the invoice prescribed bythe importer)

Packing list

Certificate of Inspection

Certificate of Insurance/Insurance Policy

Bill of Lading/Airway bill/Combined Transport Documents

Certificate of Origin

Bill of Exchange

Shipment Advice

Auxiliary Commercial Documents: These Documents are required to prepare /procure the principal commercial documents and include:

Proforma Invoice

Shipping Instructions

Insurance Declaration

Intimation for Inspection

Shipping Order

Mates Receipt

Application for Certificate of Origin

Letter to bank for negotiation /collection of

Documents(2) Regulatory Documents: These are prescribed by various Government Departments/Bodies for compliance of formalities under relevant laws governing export transactions. These include:

(i) Exchange Control Declaration Form-GR Form

(ii) Freight Payment Certificate

(iii) Insurance Premium Payment Certificate

(iv) ARE I/ARE II Forms

(v) Shipping Bill/Bill of Export

(vi) Port Trust Copy of Shipping Bill/Export

Application/Dock Challan

(vii) Receipt of Payment of Port Charges

(viii) Vehicle Ticket.

(3) Export Assistance Documents: These are the documents which are required for claiming assistance under the various export assistance measures as may be in operation from to time. Currently, these refer to drawbacks of central excise and customs duties, packing credit facilities etc

(4) Documentation required by Importing

Countries: These are the documents which are required by the importer in order to satisfy the requirements of his Government. These include certificates of origin, consular invoice, quality control certificate etc.

Commercial Documents:

(1) Commercial Invoice:

It is the basic and most important document in an export transaction and extreme care has to be taken by the exporter to prepare this document.

This document requires the exporter to submit details such as his own details, Invoice number with date, details of the consignee and buyer (if the buyer is other than consignee), buyers order number with date, country of origin of the goods, country of final destination, terms of payment and delivery, pre-carriage details (Road/Rail), vessel/flight number, port of loading, port of discharge, final destination, container number, number and kind of packaging, detailed description of goods, quantity, rate and total amount chargeable etc

Therefore, a Commercial Invoice contains the complete details of the export order.

Normally, the trade practice is to raise and send a Proforma Invoice to the buyer for his approval, once the order has been finalized.

On receipt of the approved Proforma Invoice, the exporter can use it as a part of the export contract.

The Commercial Invoice then becomes easier to prepare on the basis of the approved Proforma Invoice.

(2) Packing List:

This document provides the details of number of packages; quantity packed in each of them; the weight and measurement of each of the package and the net and gross weight of the total consignment.

Net weight refers to the actual weight of the items and the gross weight means the weight of the items plus the weight of the packing material.

The packing list serves a useful purpose of the exporter while dispatching the consignment as a cross check of goods sent.

For the port personnel, it comes handy while planning the loading and offloading of cargo.

It is also an essential document for the customs authorities as they as they can carry out the physical examination of the cargo and conduct checks on the weight and measurements of the goods smoothly against the declarations made by the exporter in the packing list.

(3) Certificate of Inspection: This is the Certificate issued by the Export Inspection Agency after it has conducted the pre-shipment inspection of goods for export provided the goods fall under the notified category of goods requiring compulsory shipment of inspection.

(4) Certificate of Insurance/Insurance Policy:

Insurance is an important area in the export business as the stakes are usually very high.

Protection needs to be taken in the form of insurance cover for the duration of transit of goods from the exporter to the importer.

(5) Bill of Lading:

This is issued when the goods are shipped using ocean (marine) transport.

When the exporter finally hand over the goods to the shipping company for loading on board the ship for transport to their final destination, the shipping company issues a set of Bills of Lading to the exporter.

(6) Airway Bill:

Airway Bill is a bill of lading when the goods are shipped using air transport.

It is also known as air consignment note or airway bill of lading.

(7) Combined Transport Document:

This is also known as Multi-modal Transport Document.

Ever since containers have become popular, the concept of Combined Transport Document has gained solid ground.

(8) Certificate Of Origin:

This document serves as a proof of the country of origin of goods for the importer in his country.

Imported countries usually require this to be produced at the time customs clearance of import cargo.

It also plays an important part in computing the liability and the rate of import duty in the country of import.

This certificate declares the details of goods to be shipped and the country where these goods are grown, manufactured or produced.

Such goods needs to have substantial value addition so as to become eligible to certification of this nature.

(9) Bill of Exchange:

Also known as Draft, this is an instruments for payment realization.

It is a written unconditional order for payment from a drawer to a drawee, directing the drawee to pay a specified amount of money in a given currency to the drawer or a named payee at a fixed or determinable future date.

The exporter is the drawer and he draws (prepares and signs) this unconditional order in writing upon the importer (drawee) asking him to pay a certain sum of money either to himself or his nominee (endorsee).

This order could be made for payment on demand, called a bill of exchange at sight or payment at a future date, called a usance bill of exchange.

(10) Shipping Advice:

The exporter sends this document , called shipping advice, to the buyer soon after the shipment is made to provide him all the shipment details.

This serves as an advance intimation of the shipment and allows the importer to arrange for delivery of the same.

Risk Management in Export-import Business

Risk is a fact of business life, more so of international business.

The Management of International business is the management of risk.

No manager can make a strategic business decision or enter into important business transaction without a full evaluation of the risks involved.

Many of the best business plans have been ruined

by a miscalculation or a mistake, or an error in judgment that could have been avoided with proper planning.

If the risk cannot be reduced through advance planning and careful execution, perhaps it can be shifted to some other party to the transaction.

If the risk cannot be shifted to another party to the transaction, it might be shifted to an

insurance company.

Many types of risks can be insured against, including the risk of damage to the goods at

sea, the risk of loosing an investment in a developing country and many others.

(1) Risk Assessment and the Firms Foreign

Market Entry Strategy:

When a firm is considering its entry or expansion in a foreign market, it must consider all options and decide on a course of action commensurate with its objectives, capabilities and its willingness to assume risk.

Selling to a customer in another country results in less risk to the firm than licensing trademarks, patents and copyrights there.

(2) Managing Distance and Communications:

The risks of doing business in a foreign country are different from those encountered at home.

A firm doing business in a foreign country would encounter greater distances; problems in

Communications; language and cultural barriers; differences in ethical, moral and religious codes; exposure to strange foreign laws and government regulations; and different currencies. All these factors affect the risks of doing business abroad.

(3) Managing Currency and Exchange Rate Risks:

Currency risk is risk a firm is exposed to as a result of buying, selling, or holding a foreign currency.

Currency risk includes:

(i) Exchange Rate Risk

(ii) Currency Control Risk

(i) Exchange Rate Risk: Exchange rate risk results from the fluctuations in the relative values of the foreign currencies against each other when they are bought and sold on international financial markets.

(ii) Currency Control Risk:

Some countries, particularly developing countries where access to ready foreign reserve is limited, put restrictions on currency transactions.

In order to preserve the little foreign exchange that is available for international transactions, such as importing merchandise, these countries restrict the amount of foreign currency that they will sell to private companies.

This limitation can cause problems for a U.S or any other country exporter waiting for payment from its foreign customer who cannot obtain the dollars needed to pay for the goods.

(4) Special Transactions Risks in Contracts for the Sale of Goods:

Special risks are inherent in international transactions for the purchase and sale of goods.

These transactions present special risks to both the parties because the process of shipping goods and receiving payment between distant countries is riskier than within a country. Such risks are:

(i) Payment or Credit Risk

(ii) Property or Marine Risk

(iii) Delivery Risk

(iv) Pilferage and Theft Risk

(5) Managing Political Risk:

Political Risk is generally defined as the risk to a firms business interests arising form political instability or political change in a country in which the firm is doing business.

Political Risk includes risk derived from potentially adverse actions of Governments of the foreign countries in which one is doing business or whose laws and regulations one is subject to.

It also includes laws and Government policies instituted by the firms home country which adversely affect the firms that do business in a foreign country.

(6) Risks of Foreign Laws and Courts:

Many Acts that are perfectly legal in one country can be illegal in another. Indeed, most travelers to a foreign country could conceivably break a host of laws and not even be aware of it.

The same is true for the law of contracts, employment, competition, torts and other business laws.

It is virtually impossible to catalog all of the differences between these laws from country to country

(7) Commercial Risks: The risks arising from suitability of the product for the market or

otherwise change in supply and demand conditions and changes in price. Commercial risks arise due to:

(i) Lack of Knowledge

(ii) Inability to adapt to the environment

(iii) Different kinds of situations to be dealt with

(iv) Greater transit time involved

(8) Cargo Risk:

Transit disasters are an ever present hazard for those engaged in Export-Import business.

Every shipment runs the risk of a long list of hazards such as storm, collision, theft, leakage, explosion, spoilage etc. It is possible to transfer the financial losses resulting from perils of and in transit to professional risk bearers known as underwriters.

As most goods are transported by marine transport, every exporter should have an elementary knowledge of marine insurance to get the protection at the minimum cost.

Global trade relations

A map showing the global distribution of Indian exports in 2006 as a percentage of the top market (USA $20.9 billion).

Until the liberalisation of 1991, India was largely and intentionally isolated from the world markets, to protect its economy and to achieve self-reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, whileforeign direct investment(FDI) was restricted by upper-limit equity participation, restrictions on technology transfer, export obligations and government approvals; these approvals were needed for nearly 60% of new FDI in the industrial sector. The restrictions ensured that FDI averaged only around $200million annually between 1985 and 1991; a large percentage of the capital flows consisted of foreign aid, commercial borrowing and deposits ofnon-resident Indians. India's exports were stagnant for the first 15years after independence, due to general neglect of trade policy by the government of that period. Imports in the same period, due to industrialisation being nascent, consisted predominantly of machinery, raw materials and consumer goods.

India's exports (top) and imports, by value, in 2013-2014.

Since liberalisation, the value of India's international trade has increased sharply, with the contribution of total trade in goods and services to the GDP rising from 16% in 199091 to 47% in 200810.India accounts for 1.44% of exports and 2.12% of imports for merchandise trade and 3.34% of exports and 3.31% of imports for commercial services trade worldwide.India's major trading partners are the European Union, China, the United States of America and theUnited Arab Emirates.In 200607, major export commodities included engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewellery, textiles and garments, agricultural products, iron ore and other minerals. Major import commodities included crude oil and related products, machinery, electronic goods, gold and silver.In November 2010, exports increased 22.3% year-on-year to850.63 billion(US$14billion), while imports were up 7.5% at1251.33 billion(US$20billion). Trade deficit for the same month dropped from468.65 billion(US$7.4billion) in 2009 to400.7 billion(US$6.4billion) in 2010.

India is a founding-member ofGeneral Agreement on Tariffs and Trade(GATT) since 1947 and its successor, the WTO. While participating actively in its general council meetings, India has been crucial in voicing the concerns of thedeveloping world. For instance, India has continued its opposition to the inclusion of such matters as labour and environment issues and othernon-tariff barriers to tradeinto the WTO policies.[

Balance of payments

CumulativeCurrent Account Balance 19802008 based on IMF data

Since independence, India'sbalance of paymentson itscurrent accounthas been negative. Since economic liberalisation in the 1990s, precipitated by a balance of payment crisis, India's exports rose consistently, covering 80.3% of its imports in 200203, up from 66.2% in 199091.However, the global economic slump followed by a general deceleration in world trade saw the exports as a percentage of imports drop to 61.4% in 200809.India's growing oil import bill is seen as the main driver behind the large current account deficit,]which rose to $118.7billion, or 11.11% of GDP, in 200809.Indian economy has run a trade deficit every year over 2002-2012 period, with a merchandise trade deficit of US$189 billion in 2011-12.Its trade with China has the largest deficit, about $31 billion in 2013. India's reliance on external assistance and concessional debt has decreased since liberalisation of the economy, and thedebt service ratiodecreased from 35.3% in 199091 to 4.4% in 200809.In India,External Commercial Borrowings(ECBs), or commercial loans from non-resident lenders, are being permitted by the Government for providing an additional source of funds to Indian corporates. TheMinistry of Financemonitors and regulates them through ECB policy guidelines issued by the Reserve Bank of India under theForeign Exchange Management Actof 1999. India'sforeign exchange reserveshave steadily risen from $5.8billion in March 1991 to $318.6billion in December 2009.In 2012, the United Kingdom announced an end to all financial aid to India, citing the growth and robustness of Indian economy

Scope of the ProjectThe envisaged project is to Imports and Exports of all kinds of Commodities Door No: 11-2-7/4, Flat No 2A, Opp: Dasapalla Executive Court, Ram nagar, Visakhapatnam Dist.. The administrative office at Door No: 11-2-7/4, Flat No 2A, Opp: Dasapalla Executive Court, Ram nagar, Visakhapatnam 530 003. The Project cost is estimated of Rs Cr. The installed capacity is 2, 00,000 MTS per annum Constitution & SectorConstitution

Shadvarna Commodities Limited, unit is constituted as a company act for Imports and Exports of All Kinds of Commodities.Sector :

The proposed sector comes under Small Sector. The company has already obtained registration Certificate from District Industries Centre, Visakhapatnam.

Background of the Promoter Mr. Pilla Venkata Ramana Babu S/o P Surya Janardhana Rao aged 42 years, residing at 11-2-7/4, Ram nagar, Opp: Dasapalla Executive Court, Visakhapatnam. He is a graduate. He is having over 15 years experience in Transport Business. He is financially sound besides possessing good leadership qualities and vast experience in business dealing and solving labour problems. With his experience and influence he plays a key role in making this successful project Mrs. Pilla Ramalakshmi w/o Dadi Ramanjaneyulu aged 34 years, residing at 15-12-34(1), Gavarapalem, Anakapalli, Visakhapatnam. She is a graduate. She is having 3 years experience in dealing of Trading and financially sounds besides possessing the required competence and business skills to make the proposed project a successful and profitable venture. Mr. Pilla Veera Siva Kishore S/o P Surya Janardhana Rao aged 35 years, residing at 15-12-34(1), Gavarapalem, Anakapalli, Visakhapatnam. He is a graduate. He is financially sound besides possessing good leadership qualities and vast experience in business dealing and solving labour problems. Mrs. Karri Lalitha Siva Jyothi w/o Karri Appa Rao aged 38 years, residing at Flat No 310, Sobha Pavani Apts, Vidyanagar, Hyderabad, TG. She is a graduate. She is an income tax assesse. Mr. Pilla Surya Janardhana Rao S/o P Pramatayya Naidu aged 66 years, residing at 15-12-34(1), Gavarapalem, Anakapalli, Visakhapatnam. He is an income tax assesse. He is having over 30 years experience in other Businesses. He is financially sound besides possessing good leadership qualities and vast experience in business dealing and solving labor problems. With his experience and influence he plays a key role in making this successful project Mrs. Poilera Venkata D/o P Surya Janardhana Rao aged 42 years, residing at 15-12-34(1), Gavarapalem, Anakapalli, Visakhapatnam. She is a graduate. She is an income tax assesse. She is having some sort of experience in the same line of activity. Mrs. Pilla Padma Pydiraju D/o P Surya Janardhana Rao aged 39 years, residing at 15-12-34(1), Gavarapalem, Anakapalli, Visakhapatnam. She is a graduate. She is an income tax assesse. She is having some sort of experience in the same line of activityLocation & its Advantages

LAND: The proposed location of the Unit is situated at Door No: 11-2-7/4, Flat No 2A, Opp: Dasapalla Executive Court, Ram nagar, Visakhapatnam 530 003, Visakhapatnam Dist. The location of the company has considerable influence on the techno-economical facility. There are various factors contributing to the functioning of an company and following are the primary factors taken into consideration.

REASONS FOR THE SELECTION OF THE SITE:

1. Availability of labor at economically rate.

2. Adequate supply of electricity power.

3. Adequate supply of water throughout the year.

4. The site is well connected with road facility.

5. Banking facilities and Government supports.

6. Adequate Transport facilities for economical transportation of finished product and Spare parts.

7. Nearness to the Market.

8. As the area is developing area, the setting up of a unit in this will help the people to progress both socially and economically. There are several Engineering Colleges around the proposed unit.

Licenses

The following licenses will be required for the Starting up the Company:1. Part I

2. Memorandum of ArticlesMarket Potential

India's total merchandise trade has increased over three-fold from $252bn in 2006 to $794 in 2012 - both exports and imports have trebled during this period according to theExport-Import Bank of India(Exim bank). The bank is the premier export finance institution of the country and was set up for the purpose of financing, facilitating, and promoting foreign trade of IndiaExportsIndia's key exports in 2012 were petroleum products which generated $56bn, followed by gems and jewellery with $47bn. Pharma products, transport equipment, machinery and readymade garments are also big exports forIndia.

The 2012 data shows that the United Arab Emirates (UAE) was India's biggest export market, closely followed by the USA. The latest data available from the Indian Government'sMinistry of Commerce and Companycovering April-September 2012, shows the US to have slightly overtaken the UAE. Explore the graphic above to see India's imports and exports by value and year. The UK is the eighth biggest export market for India and held 2.9% of the market share in April-September 2012.

Imports:

Crude petroleum is India's biggest import with $155bn spent on it in 2012. Imports of gold and silver amounted to $62bn and electronic goods and pearls and precious stones are also top import items for the country.

India's top import source is China followed by the UAE, Switzerland and Saudi Arabia. The UK came in at 21st place in 2011-12 with India importing a total of $7.7bn. In the six months recorded so far for 2012-13, the UK has dropped a place and has a 1.4% share of the India's import sources.

Top ten exporters to India, by value of trade in US$m and share of total

Country2012-2013 (Apr- Sep)%Share (2012-2013 (Apr- Sep)

CHINA28025.5711.92

UAE19622.818.35

SAUDI ARABIA16094.836.85

USA12208.055.19

SWITZERLAND10779.454.59

IRAQ9803.794.17

QATAR8144.453.47

KUWAIT8134.733.46

GERMANY7154.413.04

INDONESIA6944.862.95

Top ten importers from India, by value of trade in US$m and share of total

Country2012-2013 (Apr- Sep)%Share (2012-2013 (Apr- Sep)

USA19704.0513.87

UAE18601.7113.09

SINGAPORE6652.774.68

CHINA6417.324.52

HONG KONG6137.94.32

SAUDI ARAB4636.293.26

NETHERLANDS4458.243.14

U K4112.262.89

GERMANY3491.772.46

BRAZIL3042.642.14

Notes on Project Cost

Land & Buildings:

The proposed unit is being set up at Survey No: 205/29,30, Koduru Village, Anakapalli Mandal, Visakhapatnam Dist and the administrative office at Flat No 104, Bhavana Heights, Sramik Nagar, Chinagantyada, Visakhapatnam 530 026. The promoter already acquired land for setting up the unit. The location is quite suitable for setting up the unit.

Plant & Machinery:-

The machinery and equipment worth of Rs. 668.00 lacs are required to run the unit. The promoter has already approached reputed suppliers, obtained quotations and enclosed the same for your reference.

Working Capital:-

An amount of Rs. 225.00 Lacs provided towards working capital facility to run the unit in smooth levels. The detailed working requirement placed as annexure.Notes on Means of Finance

1. CAPITAL:

The promoters capital was fixed at Rs.343.00 Lacs.

2. TERM LOAN:

The unit desires to avail Term Loan of Rs. 730.00 Lacs. from Bank/Financial Institute to meet part cost of the project cost, which works out to % of the total project cost of Rs. 1298.00 Lacs. The amount would be repayable in 28 quarterly installments of Rs. 26.07 lacs each with a moratorium of twelve months from the date of commencement of Commercial Production. However, the interest on the term loan would be payable as and when it is applied on the account. The detail of the repayment programmed is placed in this report.

Utilities & Services

POWER:

The Unit requires 150 HP power supply under L.T. Limit. No problems are anticipated with regard to obtaining of power supply.

WATER:

The unit requires 1,000 Liters of water per day.

EFFLUENTS:

There are no harmful effluents generated in the process.

TRANSPORTATION:

The proposed unit is located at Survey No: 205/29,30, Koduru Village, Anakapalli Mandal, Visakhapatnam Dist. There is no problem for transportation of raw material and finished goods.

MANPOWER REQUIREMENTS:

The unit will be employing 19 Nos. of workers besidesNos. of administrative staff. All the above persons can be recruited locally without any difficulties. SWOT AnalysisSTRENGTH:

The unit is located at Survey No: 205/29,30, Koduru Village, Anakapalli Mandal, Visakhapatnam Dist. The company is having some sort of experience in the same line of activity

WEAKNESS:

The unit has competition from the existing units as the proposed unit is having latest technology and by the government encouragements to start new company the units can competent with the old industries.

SHADVARNA COMMODITIES LIMITED

Understand Export Formalities and Responsibility towards sale Proceeds

Negotiate Terms of Sales

Register as an Exporter or Importer

AN IMPORTER OR EXPORTER

r

For Export, Complete Custom Formalities and obtain documentation

Understand Documentation and Incoterms

Submit to the bank for onward Transmission to Buyer

Receive Sale Proceedings