Performance Evaluation of Activities of Commercial Department on Supply Chain Management of BSRM Steels Group of Companies

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1.1 Origin of Report:
Bangladesh Steels Re-Rolling Mills is a private & international companies having head office
located in Chittagong, Dhaka & Kolkata. Now BSRM Steels Group of Companies try to open
another head office in China.
Internship program is the systematic gathering, recording and analyzing of data about the subject
that a student goes to learn on the program. The aim of the Internship program is to become
aware the student about the official correspondents, managerial behavior, decision-making
process, motivating system, supervision, interpersonal relations and many more. Now the world
is a competitive world. So everybody has to be expert in both practical and theoretical
knowledge.
Activities of Commercial Department is a part of Supply Chain Management. From the
perspective of the applicants and beneficiary, it works on the import and export products. Import
and Export activities process have few different activities but maximum process is almost same.
BSRM Steels Group of Companies departments of Commercial main work is import product,
material, machineries & parts of machines by following government rules and regulations. The
value of amount fixed by following requirements of Pro-Forma Invoice and H.S codes numbers.
Import and Export activities start two or more counties for sale & purchase products by
nominated bank. Without Banks helps commercial activities cannot work, for all types of import
& export product banks open LC & LCAF and support by paying fixed amount.
Commercial Department is a 2nd and main part of Supply Chain Management. Supply Chain
Managements start their works with Purchase Departments, after collecting IMP from & pro-
Forma Invoice Commercial Department start their works step by steps and submit their working
documents to Logistic Departments. After collecting all types of documents logistics department
start their works and collect information about shipment of products and movement of ship.
After ship shift products on Bangladesh land logistic department send import products to
companies Warehouse for store there. Warehouse is the last working process of Supply Chain
Management.

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BSRM Steels Group of Companies was incorporated on 1952 as a 1st steel re-rolling mills. The
manufacturing process and the products are proprietary in nature representing products that are
competitive from a durability, performance and price standpoint. The principal of the company
throughout the year continued to be manufacturing and marketing of steels and re-roiling
products.
1.2 Organization Object Recommendation:
General Objective:
As the report is a mandatory requirement for a BBA student and a part of the internship program
for that reason the general objective is to know about BSRM Steels Group of Companies
products & Qualities, It’s history, Producing & manufacturing process, trading process and
overall companies structure.
Specific Objective:
The study was concluding to achieve the following Specific objectives:
 To know about the activities of Bangladesh Steels Re- Rolling Mills Ltd.
 To know about the Supply Chain Management System of BSRM.
 To discuss about different departments of Supply Chain Management.
 To discuss about the Commercial Departments and different activities of this department.
 And to identify some problems of commercial department in the activities of BSRM & to
recommend some solution in order to overcome those problems with commercial
activities.

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1.3 Methodology of the Study:
In order to make the meaningful and presentable report, some significance methods and strategy
has been used here. In this part I try to clearly show these methods that are used in spontaneously
inside this report. Two sources of data and information have been collected during my internship.
Primary Sources of Data:
Primary data were collected through
 Collected information from BSRM Management.
 Face to face daily conversation with the officials of BSRM.
 Observation by practical deskwork.
 Informal interviews with the employees and staffs of the company.
Secondary Sources of Data:
Secondary data were collected personally from
 BSRM code of practice.
 Websites of BSRM Steels Group of Companies (www.bsrm.com).
 Corporate responsibility report on 2015.
 Annual report of BSRM 2015 to 2016-17.
 Various books related to Commercial activities & Foreign Exchange activities.
1.4 Scope of the Study:
This study revolves basically to the analysis of Commercial Activities of BSRM Steels Group of
Companies, and to analysis of the strengths and weakness of the system to recommend practice
for BSRM. Moreover, this study was conducted at head office of Ali Mansion, 1207/1099,
Sadarghat Road Chittagong, Bangladesh. It is the one of the corporate office of BSRM Steels
Group of Companies.

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1.5 Limitation of the Study:
The study has done in a short course of time, So it’s not free of limitations. Actually it only
focuses on the activities of Commercial Department not on the whole Supply Chain Management
of BSRM Steels Group of Companies. Limitation at the study faces are sport light below:
 The secondary information required for the report was not sufficient; especially
information regarding total company record & data about past employee performance
were classified as highly confidential information.
 The research is done based on an Import and Export activities / Commercial activities at
the time of 2 months. So, it is not much more representative.
 Employees of here are remain busy constantly during office hours. Therefore, it taken too
time to become familiar to the workers to get inner information.
 As the questionnaire was self-administered questionnaire the irresponsibility that the
respondents respond the questions based on their perception rather than the reality.
 As the data was subjective data it is difficult to generalize the findings.

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2.1Introduction of BSRM Steels Mill Limited:
BSRM is a Design, Development, and Manufacturing company that utilizes recycled materials to
develop innovative new products. We are targeted at improvement of equipment life and
minimization of the impact on the environment. Currently our targeted markets include the RV,
Commercial Marine, Railroad and HVAC/Heavy equipment industries. Our products are
comprised of reclaimed/recycled materials of crumb rubber, wood, plastics…etc. The products
we manufacture are real world solutions while contributing to minimizing the worlds growing
environmental issues.
“It is a rare occasion when a company can make a significant contribution to our environment as
well as create an important product that will provide substantial cost savings for its users and
allow them the opportunity to use and promote environmentally friendly, recycled products.”
BSRM is the leading steel manufacturing company and one of the prominent corporate houses in
Bangladesh. Over the years BSRM steel products has been chosen solely for building major
National landmarks and infrastructures. To name a few, the Hatirjheel Project, Zillur Rahman
Flyover, Mayor Hanif Flyover and Shah Amanat Bridge were made with BSRM Xtreme. BSRM
Xtreme is a product that was introduced when there was no graded steel. It was major change in
the steel industry. The core driver was the belief in evolution in steel products, which resulted in
bringing the first EMF tested rod, the first steel brand that passed 5 million cyclic loading
Fatigue testing in the U.K. and conformed to 10 global standards. With the largest steel
producing factory in the country and employing the best technology from Europe, the company
maintains volume with uncompromising quality. BSRM is dedicated to providing the best
solution for the construction industry. The first ever 50mm rod was specially designed and rolled
for the deep pilling requirements of Padma Bridge. Its recently introduced brands are
alsodesigned to meet special needs for the construction industry.
When we think of the effect of steel, we think of the pillars of strength, the roofs over our heads,
of metal that binds together the progress of humanity and its dreams. When we think of the steel,
we think of the ultimate symbol of strength, of endurance and of safety.

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The three corners of the trinity logo represent the three core essences of our products – Strength,
Safety and Sustainability. The number 3 itself is a symbol of totality, of being a ‘whole’. The
color is the representation of steel in both real and graphic form. The interlocked structure in the
logo symbolizes unbreakable strength and infinite sustainability.
We call it “The Trinity of strength, Safety and Sustainability”.
2.2Journeys of BSRM Steels Limited:
BSRM steels limited was incorporated in 1952 by two fearless businessmen named “Taherali
Africawala” and “Akberali Africawala”. They decided to set up first steel rolling mill of the
country in Nasirabad, Chittagong. At that time Bangladesh was known as East Bengal and after
the separation of 1947, this area was famous for steel and construction material sources. It was
very bold decision and in 1952, BSRM started first steel re-rolling mill in East Bengal.
At the year of 1984, BSRM introduces high strength cold twisted steel bars to the construction
industry. BSRM introduced ASTM six hundred and fifteen grade sixty reinforced steel bars in
1987. BSRM was running at a good pace after 1987, and in 1996, it commissioned the largest
billet-making plant in the country. Ten years later, BSRM acquainted micro-reinforcement wires
for low cost rural construction. BSRM Group contributed nearly hundred crore taka to the
national exchequer in taxes, levies, duties and VAT in the year of 2008, at the same year, they
had presented Grade 500 steel bars, the current international standard for modern construction –
BSRM Xtreme 500 W.
2.3Slogans of BSRM:

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2.4Missions of BSRM:
BSRM Inc. is a manufacturing and marketing company dedicated to providing to industries cost
effective and durable products made from recycled scrap tires, wood, and various other
materials. The manufacturing process and the products are proprietary in nature representing
products that are competitive from a durability, performance and price standpoint.
HVAC and Compressor manufacturers/installers on installation use base materials of wood,
concrete, and neoprene type rubber that allows for degradation with weight, vibration and
environmental conditions. We provide a more durable, better performing product in isolation of
vibration, and noise reduction then the typical wood, concrete or rubber isolation pads employed
presently.
RV Industry applications will initially be utilized to protect Level R Pad from cracking and for
5th Wheel RVs under stabilizer jack pads. This will prolong longevity of the Level R Pad
system made from plastics and crack after multiple uses from RV metal pads direct pressure.
Scrap tire stockpiles throughout the United States represent dangerous environmental hazards as
they are breeding grounds for mosquitoes, rodents, and snakes, and create potential hazards for
fires, which are extremely dangerous and expensive to extinguish. BSRM Inc. will assist in the
reduction of scrap tire stockpiles hazards and will help to utilize some of the 700-800 million
scrap tires discarded each year.

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Practice a set of core values to build competency in compliance, diversification and technology
so that an accessible platform, market confidence and wealth maximization scope can be
ensured.
Core Values:
 Value for people
 Transparency
 Excellence
 Harmony
 Commitment
 Integrity
Objectives:
 Increase business turnover
 Modernize trading system
 Ensure effective relationship management
 Achieve high level of confidence & professionalism
 Engage in product and market diversification
 Contribute to capital market policy development
 Ensure exchange related quality services
2.5VISION of BSRM:
 Maintain our leadership positions in the steel industry by-producing the best quality steel
products, continuously enhancing customer satisfaction and becoming a reliable business
partner of our customers and suppliers.
 Be an employer of choice, with focus on nurturing talent and developing future leaders of
the organization.
 Protect the interest of our shareholders through sustainable growth and value creation.

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 Preserve the trust of our stakeholders by adopting ethical business practices.
 Support the society through corporate social responsibility initiatives.
2.6VALUES of BSRM:
Bangladesh Steel Re-Rolling Mills (BSRM) follow some values, those are-
1. Sustainable Growth
2. Quality
3. Reliability
4. Trust
5. Leadership
6. Social Responsibility
7. Customer Satisfaction
 Sustainable Growth:
Consistent improvement in the quality of products and services, efficiency of processes and
profitability of business; continuously anticipating and responding to the changing business and
environmental needs using innovation; sharing knowledge and experience within the
organization.
 Quality:
Create products and services values by our customers; constantly improving our processes
through innovation and adopting best practices; reducing wastage; minimizing costs; investing in
systems and technology and timely service before, during and honoring all our commitments
despite challenges.

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 Reliability:
Be the preferred business partner of our customers and suppliers by offering quality products;
providing our best and after the business transaction and honoring all our commitments despite
challenges.
 Trust:
Preserve the faith and goodwill of all our stakeholders – Customers, shareholders, suppliers,
employees, regulatory bodies and society by-adopting ethical and transparent business practices,
building robust governance and risk management processes.
 Leadership:
Bea role model, setting benchmarks through our products, processes and people; constantly
moving ahead of competition by differentiating our products, innovating our processes,
increasing our market share and nurturing talent to develop leaders within the organization.
 Social Responsibility:
Acknowledge and fulfill our obligations towards the society by undertaking initiatives for the
general uplifting of the society, building capability and making facilities available to the
underprivileged.
 Customer Satisfaction:
Delight our external and internal customers at every stage of our interaction with them by truly
understanding their needs, offering them our best products and services, treating them with
respect and actively seeking and acting on their feedback.

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2.7History &Achievements of BSRM:
The BSRM saga began with the first steel re-rolling mills to emerge in the then East Bengal.
1984:
Introduced high strength cold twisted steel bars (TORSTEEL) to the construction industry.
1987:
Introduced high strength Deformed reinforcing steel bars conforming to ASTM 615 Grade 60 for
the construction industry.
1996:
Commissioned the then largest billet making plant in the country - Meghan Engineering Works
Limited, now known as Steel Melting Works (SMW) unit of Bangladesh Steel Re-Rolling Mills
Ltd.
2006:
Introduced micro reinforcement wires, below 8mm, for low cost rural construction.
2008:
BSRM Steels Limited commenced production of internationally recognized Grade 500 steel bars
branded as “Xtreme500W” conforming to ISO 6935-2.
2009:
Entrance in the Capital Market - Shares of BSRM Steels Limited, the flagship company of
BSRM Group was listed with the country’s premier bourses Dhaka Stock Exchange (DSE) Ltd.
and Chittagong Stock Exchange (CSE) Ltd. on 18 January 2009. Market Capitalization as on 30
June 2017 is Tk. 29,974 million. The public shareholding including institutional investors is
29.13%.

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2010:
BSRM Iron and Steel Co. Ltd. largest billet making plant in the country started commercial
production on June 01, 2010.
2012:
Production capacity of BSRM Steels Limited enhanced to 600,000 MT per year.
2013:
A syndicated term loan of US$ 40 million and BDT 5,908 million, raised by a consortium of 25
banks and financial institutions for BSRM Steel Mills Limited. It is the largest ever syndicated
loan facility arranged for a private company in Bangladesh. The Plant produces high quality M S
Billets.
2014:
Oracle e-BS -12 went GO LIVE on 1ST March 2014. Oracle Financials, Costing, Purchasing,
Manufacturing, EAM, Inventory & order management are now integrated on a single platform
which ensure the accuracy, accountability and reliability of the Group.
2015:
1. Enhanced capacity of BSRM Steels Limited from 600,000 MT to 700,000 MT per annum.
2. Announced a new product namely “BSRM Maxima”
3. Increased capacity of Bangladesh Steel Re-Rolling Mills from 120,000 MT to 450,000 MT per
annum which will be the first and largest merchant mill in Bangladesh.
4. Listing of Bangladesh Steel Re-Rolling Mills Limited with the stock exchanges (DSE & CSE).
5. Start of trial production of world’s largest induction furnace based billet casting project
“BSRM Steel Mills Limited”.

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2016-17:
1. BSRM Steel Mills Limited, a largest billet making plant in the country started commercial
production in June 2016.
2. Ultimo& EPOXY coated bars - CENTURA are introduced in the market.
3. Start to set up a new melting plant at Sonapahar, Mirsarai, Chittagong under BSRM Steels
Limited with a capacity of 430,000 MT.
4. For first time sales of BSRM has crossed ONE MILLION M. ton.

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2.8Corporate Structure of BSRM:
Director
(Finance)
Managing
Director
Group CFO &
Company Secretary
Executive Director
National Sales Head
Head of Supply Chain
Head of
Administration
Head of Finance &
Accounts and CFO
Head of Dhaka
Corporate Affairs
Country Director
Kolkata India
Head of
Marketing and
Product
Development
Plant Head
Head of HR
Head of IT
Head of Internal
Audit
Head of
Technical Project
Board of Director

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2.9Name& Details of Board of Directors in BSRM:
 Mr. AlihussainAkberali FCAChairman
The 3rd son of late Mr. Akberali A. Africawala was born in 1949. He is the most experienced
industrialists in steel sector and a seasoned business entrepreneur and always eager to harness
any unexploited opportunity in the industry. He was recognized as CIP from large scale industry
sector for ten times. Mr. Alihussain is a Chartered Accountant and a Fellow Member of the
Institute of Chartered Accountants of Bangladesh (ICAB).He is also engaged in various social
activities like Rotary Club, Ma O Shishu Hospital, Chirayata Shanti Society, Patient Welfare
Committee of Chittagong Medical College and Hospital and founder of a School at Nasirabad,
Chittagong which imparts free education to more than 350 underprivileged students. He is also
Vice Chairman of Chittagong Metropolitan Chamber of Commerce and Industry.
 Mr. Aameir Ali Hussain Managing Director
Mr. Aameir Ali Hussain He is the eldest son of the Chairman of the company was born in 1975.
He joined the family business in 2001 and aims to set high industry standards for the
performance of the company. He is active in the day to day operation of the company as the
Managing Director. He is introducing modern management practices in the company and
instilling a team spirit to excel in the industry. He graduated in Economics from McGill
University, Canada and did his MBA from LUMS University. Ensuring quality and focusing on
customers’ satisfaction are his top priorities.

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 Mr. Zohair Taherali Director
He was born in 1963 and involved for last 24 years in the steel business as a Director of the
company. He is responsible for the management of the Financial, and Administrative aspects of
the company. He is actively involved in various social activities. He is a commerce graduate and
also a member of the Audit Committee of the company.
 Mrs. TehseenZohairTaheraliDirector
Mrs. TehseenZohairTaherali was born in 1970. She completed her Bachelors of Arts and
Bachelors of English Language Teaching from Chittagong, Bangladesh. She guides and directs
the company regularly in strategic policy making decision as a Director. She is involved with
many charitable organizations and is a highly regarded personality in the society.
 Mr. Mono Ranjan Dey FCA Independent Director
A renowned Chartered Accountant Mr. M. R. Dey was born in 1954. He has 27 years of
experience in internal and external audit and assurance, developing internal control system,
company related matters and taxation and VAT matters. He is Qualified Chartered Accountants
and Fellow Member of the Institute of Chartered Accountants of Bangladesh (ICAB). Currently
he is the Managing Partner of reputed Chartered Accountancy firm namely MRH Dey& Co.,
Chartered Accountants. He was appointed as Independent Director of the Company in 2012 and
he is the Chairman of the Audit Committee of the Company.
2.10Names of Corporate Officer’s Advisers in BSRM:
 Tapan Sengupta, – Executive Director
 Kazi Anwar Ahmed, – Head of Corporate Affairs
 M. Firoze, – Head of Marketing & Product Development
 Shekhar RanjanKar FCA, – Group CFO & Company Secretary
 S. K. Das, – Country Director, India
 Shobhon Mahbub Shahabuddin, – Head of National Sales

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 Mohinder Singh Hanspal, – Plant Head (Re-Rolling Unit)
 Md. Nizamul Hoque, – Plant Head (Melting Unit)
 Jasim Uddin Ahmed, – Head of Technical Projects
 Jamil Ahmed, – Head of HR
 Mohammed Reazul Kabir FCA, – CFO & Head of Finance & Accounts
 Rajesh Banerjee, – Lead Operations
 Mohd. Imtiaz Uddin Chowdhury, – Head of Supply Chain
 Muhammad Ashiqur Rahman ACA, – Lead Compliance & Accounts – Dhaka
 Murtaza Zoher Bengali, – Head of Internal Audit
 A. K. M. Saifuddin Khan, – Head of Administration
 Mohammed Tamim Wahid Al-Helal, – Head of IT
Advisers:
 Moize Hussain, – Group Adviser
 Tapan K. Poddar FCA, FCMA, – Financial Consultant
2.11Details of ProducingProducts of BSRM:
BSRM is country’s first producer of 500 MPa yield strength re-bar, branded and marketed as
Xtreme 500W, proving BSRM’s quest for continuous innovation as nation building partner.
Beside re-bar production, BSRM rolls and markets sectional steels such as angles and channels
and ribbed wire which are manufactured in separate plants of BSRM. The bars, specially Xtreme
500 W and sectional products ranging in various sizes conforming to ISO 6935-2:2015 and ISO
630-3:2012(E) respectively which are the lawful standard of the country. BSRM’s steel products
are inside Buildings, Bridges, and National Infrastructures all of which are made to
internationally accepted construction codes. The codes in turn specify engineering materials
conforming to various global standards.

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2.11.1Xtreme:
Xtreme is a high strength reinforcing steel for general purpose construction of low and medium
rise commercial and residential buildings and bridges. It is the steel of choice among home
builders.
It is used in the design and construction of Ordinary and Intermediate moment frames of
reinforce concrete (RC) Buildings, whenever high strength for economy and high ductility for
safety is required.
The most common sizes for home builders are 8mm, 10mm, 12mm, 16mm, and 20mm. These
sizes are available with BSRM appointed dealers throughout the country. BSRM has the largest
steel dealer network, with over 628 Dealers in all the 7 administrative divisions of the country.
Larger diameters, 25mm, 32mm and 40mm are also available for use in the construction of very
tall buildings [25 story and beyond], Bridges and flyovers.
BSRM created history by becoming the only steel producer, in the Indian sub-continent; to roll
50mm rebar. The 50mm Bar was used in the pile foundation of the Padma Bridge.
BSRM’s Xtreme500W conforms to BS 4449 Grade 500 and BDS ISO 6935-2 Grade 500W. It is
the best-selling reinforcing product of BSRM since 2008.

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2.11.2 Maxima:
Steel is a ubiquitous and versatile construction material. It is the backbone of a nation’s
infrastructure and used in the tens of millions of tons to build cities, bridges, and factories. It is
either used as a structural material or as a composite in reinforced concrete (RC).
RC is usually the preferred construction method, in Bangladesh, due to its low cost and relatively
cheap labor cost, in the country. Most public infrastructure in the country such as bridges and
flyovers and transportation hubs, ports, airports, railway stations are built on RC. So are
commercial and residential buildings. Concrete reinforcing steel bars, or rebar in short, are used
in tens of millions of tons for RC construction.
The use of Grade 80 rebar instead of Grade 60 reduces steel consumption up to 25% in RC
structures.
Steel is also, the most costly construction material; any reduction in steel consumption has
immense appeal for private developers and builders. For planners and economists the appeal is
even higher as Life Cycle Costs of Infrastructure can be substantially reduced.
BSRM Maxima is exactly the material for construction of projects which needs extra strength
combined with an extra dose of safety. It has Yield strength exceeding 80, 000 psi [550MPa]
combined with Tensile strength exceeding 105, 000 psi [725MPa]. It has fantastic elongation
exceeding 16%, in all sizes.
BSRM Maxima is the perfect material which requires Strength and Safety in the same breath.
Nuclear power stations and large river crossing Bridges are perfect examples where BSRM
Maxima can be used.

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BSRM Maxima has undergone successful production in BSRM Steels Ltd. and extensive testing
in Bangladesh University Engineering Technology (BUET) Dept. of Civil Engineering.
2.11.3 Ultima:
“Earthquakes Don’t Kill People. Buildings Do”.
Susan Hough and Lucile Jones, U.S. Geological Survey, Pasadena, California
“A Safer World”
The Bangladesh National Building Code (BNBC) 2015 and the American Concrete Institute
(ACI) 2014 state” Buildings in earthquake prone areas should be built on Special Moment
Frames (SMF). The BNBC and ACI further state that special Moment Frames (SMF) should be
reinforced with high ‘strain hardening’ steel.
All vital installations anywhere in the country like hospitals, schools, airports, railway stations
and bridges cannot be allowed to fail in an earthquake. They have to be reinforced with ‘strain
hardening’ steel and designed with special moments frames as per the guidelines of the
Bangladesh National Building Code (BNBC).
Further any type of structure, commercial or residential, in Zone –IV which encompasses Sylhet
and Mymensingh in the Bangladesh National Building Code (BNBC) needs to be reinforced with
‘strain hardening’ steel and designed with special moment frames.
Strain hardening steel requires additional stress beyond its yield strength to produce additional
plastic deformation and the steel becomes stronger and more difficult to break.

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In a landmark innovation BSRM brings forth BSRM ULTIMA the reinforcing steel with the
unique ‘strain hardening’ property for the first time in the country.
BSRM ULTIMA conforms to the U.S. national reinforcing steel standard ASTM A-706 Grade
60 and ISO 6935-2 Grade 420 and recognized by the American Concrete Institute (ACI) of 2014
and the Bangladesh National Building Code (BNBC) of 2015.
2.11.4 Xtrong:
Xtrong is a high strength structural steel conforming to ASTM 572 Grade 50 and ISO 630 Grade
345 Channels and Angles section rolled out of this high strength steel provides an economical
alternative to steel fabricated structures compared to traditional ASTM A-36 steel. Structures
made out of Xtrong or Grade 50 steel requires 18% to 25 % less steel compared to Grade 36
steel.
BSRM makes Angles, conforming to Grade 50 Angles.

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APPLICATIONS: One of the promising applications of Grade 50 Angles is in the fabrication of
Open Web Joists (OWJ) for supporting concrete floors under profiled steel deck
OWJ supported floor systems is the universally accepted method of constructing floors in even in
tall buildings in North America and Europe. Floors supported by OWJ are much lighter and
reduces the dead weight of buildings making it lighter and safer.
2.11.5 Centura:
“Epoxy Coated Rebar for Corrosion Free Structures”
Corrosion induced failures causes severe distress to concrete structures is most common in any
chemically aggressive environments. Repair and rehabilitation of the affected structures not only
cost the exchequer with direct and indirect costs but also cause lot of inconvenience to the
public. Hence, it is essential to plan proper corrosion protection strategy to combat corrosion for
the durability of structures particularly in marine, coastal or industrially polluted areas.

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Fusion Bonded Epoxy (FBE) Coating is able to provide protection against corrosion for the
design life of the structures. It is to be noted that there is no comparable technology for over 45
years in actual service conditions in the most demanding environments in the world.
Today more than one million structures across the world stand in testimony to the long term
performance of FBE Coated Rebar. Around I5% of total rebar’s used in USA are FBE Coated
Rebar. And it is used in other ports of the world including Asia.
Technology introduced in India in 1990 there are several thousand structures across India,
particularly in the coastal areas. This proves the efficacy of the FBE Coating to prevent corrosion
in concrete structures. Application include highway and railway bridges, water storage &
treatment and waste water treatments facilities, refineries, fertilizer plants, jetties and marine
works, power plants, nuclear facilities, tunnels, reservoirs, multistory buildings, et al.
2.12Quality of Producing Products:
“Quality is our way of Life”, was a favorite exhortation of BSRM Group Founding Chairman
Late Akberali Africawala. Thus the Quality mindset was deeply ingrained in mindset of the
company at a very early stage.
BSRM produces steel for the construction industry, which has important product liability
implications. BSRM’s steel products are inside Buildings, Bridges all of which are made to
internationally accepted construction codes. The codes in turn specify engineering materials

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conforming to various global standards. The material standards are legal standards which are
enforced by a governmental authority in all countries. Therefore, all constructional materials
produced in a country are licensed by the Government. The License clearly defines the material
properties and standards to which it must be produced to be legally sold in the country.
The BSRM Group produces construction steel conforming to ISO 6935-2:2015 and ISO 630-
3:2007 which are the lawful standard in the country. There are 2 aspects of quality known as
Quality Control and Quality Assurance which must be clearly understood in order to understand
the various quality measures in place in the BSRM Group.
2.12.1 Quality Control:
A set of activities designed to evaluate a developed product. Quality control-through proper
production and quality inspections and testing prevents unsatisfactory products from being
delivered to customers. Quality control is primarily the responsibility of the production staff, and
is built into the manufacturing process.
2.12.2 Quality Assurance:
Quality assurance establishes written specifications and standards. This preventative measure is
the responsibility of corporate management, which must put in place the necessary programs for
producing a quality product each and every time. Quality Assurance begins with procurement of
primary raw materials for steel making and continues to set standards for intermediate products.
It further sets standards and benchmarks for the final finished products. The finished products are
tested against the prevailing legal standards valid in the country and become the basis of a
binding contract between a seller and buyer.
Important Discretion between Quality Control and Quality Assurance are listed below;
 QA is process oriented and QC is product oriented.
 Testing for quality is not assuring quality, it is controlling it.
 Quality Assurance makes sure we are doing the right things, the right way.
 Quality Control makes sure the results of what has been tested are what is expected.

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 Quality Assurance is the step taken before a product is manufactured.
 Quality Control are the steps taken after a product is manufactured.
The 9 attributes of quality
Describes the features of a product which lends credence towards its claim as a better or best
product.
ATTRIBUTES MEANING EXAMPLE
Performance Primary product feature Yield strength
Features Secondary features Ultimate strength, T/Y ratio,
Ductility
Conformance Industry standards ISO, ASTM
Reliability Consistency over time Narrow tensile properties
variation
Durability Useful / Shelf life Rusting on rebar
Service Resolution of problems Timely delivery
Response Human interface Courtesy of the dealer
Aesthetics Exterior finish Rib formation, Surface finish
Reputation Past Performance Ranking Number 1 in
innovation
2.12.3 Quality & Environment Policy:
We at BSRM group aspire to maintain our leadership position in the steel industry by producing
the best quality steel products, continuously enhancing customer satisfaction and becoming a
reliable business partner of our customers and suppliers. BSRM is also very much committed to
ensure safe environment by developing a culture of environmental awareness in its workplace
through adopting certain measures.

26
2.12.4 Protecting the Environment:
Industrial development is indispensable for creating employment opportunities, and by
extension, poverty reduction, in a country. Bangladesh is a densely populated country with
negligible natural resources and till recently with little industrial activity. Industrial investment is
being actively encouraged by Govt. policy and through private sector investment.
However, industrial activity has a dark side, as well. This is environmental degradation, mostly
caused by air and water population. All industrial production processes produce liquid effluent
and gaseous emissions as a bye product of converting raw materials in to finished products.
BSRM is a steel producer and steel melting and casting operations produces gaseous fumes
which has a huge quantity of suspended solid particles which are extremely harmful to human
life. Thus BSRM has employed a technologically advanced Air Pollution Control (APC) unit in
its billet melting and casting plants. The APC captures the harmful emissions by powerful
suction devices from which it is conveyed to a bag house filter. The filter retains all the solid
suspended particles and only clean, dust free air is discharged in to the atmosphere.
The next stage of steel production is rolling and heat treatment to produce finished construction
steel. This process requires vast quantities of pure water, which is pumped from underground
aquifers, deep below the earth. Clean, potable water is scarce and much needed for drinking and
agriculture. Conserving and recycling the used process water, in its manufacturing process, was
BSRM’s core aspiration value. To achieve it had to invest in a technologically complex and
costly European Water Treatment Plant (WTP) in its rolling mills.
The WTP’s installed in BSRM’s rolling mills ensure that 100% of the process water is recycled
indefinitely. Only the make-up water to compensate for the natural evaporation losses in the
process is pumped up from underground aquifer.

27
2.12.5 Test:
Any constructional material produced in a country has to be licensed by the Government. The
License clearly defines the material properties and standards to which it must be produced to be
legally sold in the country. To conform to ISO 6935-2:2015 and ISO 630-3:2007 standards,
BSRM tests all the steel produced in its factories to 10 most demanding tests before delivery to a
customer which are: fatigue test, elongation test, bend test, re-bend test. Yield strength test,
ultimate strength test, elongation at maximum force test, chemical test, diameter test and surface
geometry test.
2.12.6 Certification:
BSRM is the first steel company in Bangladesh to receive ISO 9001:2008 certification for
quality and ISO 14001:2004 certification for environment. The system has been continuously
modified and developed through many surveillance visits by the lead assessor and BSRM
continues to develop it in a manner consistent with International Certification Practices.
The aim is to work for the consistent assurance of quality and its implementation to ensure
product and service quality in all its processes with high level of customer satisfaction.
 BISCO EMS
 BISCO QMS
 BSRM Mill EMS
 BSRM Mill QMS
 BSRM Steels EMS
 BSRM Steels QMS
 BSRM SMW EMS
 BSRM SMW QMS
 BSRM SML EMS
 BSRM SML QMS
 BSRM Wires EMS
 BSRM Wires QMS

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 BSRM Steels (Melting) EMS
 BSRM Steels (Melting) QMS
2.13Annual Ratios of BSRM:
Ratios 2015 2014 2013 2012 2011
Gross Profit ratio - % 13.52% 7.28% 8.97% 4.94% 6.13%
Net Profit ratio - % 6.44% 2.82% 4.67% 2.26% 2.69%
EBITDA margin to
Sales - %
10.83% 5.50% 7.01% 3.61% 5.00%
Return on
Shareholders’ Equity -
%
22.93% 14.49% 24.49% 15.62% 28.22%
Return on Capital
Employed - %
19.80% 12.49% 21.05% 13.79% 21.82%
Current Ratio - Times 1.06 1.01 0.97 0.92 0.93
Quick / Acid test ratio 0.57 0.40 0.61 0.44 0.57
Inventory turnover ratio
- Times
4.69 3.42 6.37 4.87 4.84
Total Assets turnover
ratio - Times
1.31 1.42 1.52 1.70 1.45
Earnings per Share
(EPS) - Taka
6.09 3.18 4.95 2.53 2.46
Price/Earnings (P/E)
ratio - Times
15.81 27.58 13.87 26.82 48.26
Price/Equity ratio -
Times
9.63 8.77 6.87 6.79 11.85

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Dividend per share
(DPS) - Taka
3.00 1.50 1.50 1.50 1.50
Dividend Payout ratio 0.49 0.47 0.30 0.59 0.61
Dividend Cover ratio 2.03 2.12 3.30 1.77 1.72
Net Assets Value
(NAV) per share - Taka
26.57 21.93 20.23 17.02 9.14
Net Operating Cash
Flow per share - Taka
16.87 (8.76) 13.45 (2.24) (14.14)
Debt Equity ratio -
Times
1.48 2.36 1.99 2.81 5.20
Interest coverage ratio 5.37 6.32 5.83 3.98 3.39
Market price per share
at 31 December - Taka
96.30 87.70 68.70 67.90 118.50
Market Capitalization
at 31 December
(Taka million)
32,913 29,974 23,480 22,101 38,572
Contribution to
National Exchequer
(Taka million)
2,009 2,949 2,454 2,028 1,451
Average Number of
Employees
578 553 573 523 472

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2.14Operational Results of BSRM:
Operational Results 2015 2014 2013 2012 2011
Gross Profit 32,316,101 38,535,937 36,229,051 38,253,465 31,234,710
Profit from Operations 4,368,653 2,807,325 3,250,149 1,888,439 1,914,575
Profit before Interest,
Taxes & Depreciation
3,257,932 1,892,834 2,314,398 1,160,385 1,369,696
Allowances 3,500,737 2,119,630 2,538,472 1,382,576 1,560,701
Profit before Tax 2,593,949 1,510,680 2,318,924 1,296,810 962,121
Profit after Tax 2,081,877 1,086,208 1,693,469 865,331 839,205

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3.1Supply Chain Management:
Supply chain management does not involve only the movement of a physical product through
the chain but also any data that goes along with the product and the actual entities that handle the
product from stage to stage of the supply chain. It represents a conscious effort by the supply
chain activities cover everything from product development, sourcing, production and logistics
as well as the information systems needed to coordinate these activities.

32
3.1.1Activities of Supply Chain Management:
Supply chain business process integration involves collaborative work between buyers and
suppliers, join product development, common systems and shared information.
According to Lambert and Cooper, operating an integrated supply chin requires a continuous
information flow.
Supply Chain Management is a cross functional approach to managing the movement of raw
materials into an organization and movement of the finished goods out of the organization
toward the end consumer.
 Several models have been proposed to understand the activities required to manage
material movement across organizational and functional boundaries.
 SCOR is a supply chain management model promoted by the supply chain council.
Another model is the Supply Chain Management floated by the Global Supply Chain
Forum (GSCF).
 Supply Chain activities can be grouped into strategic, tactical and operational level of
activities.
A firm’s Supply Chain Management efforts start with the development and execution of a long-
term supply chain strategy. Among other things, this strategy should:
 Identify what supply chains the firm wants to compete in,
 Help managers understand how the firm will provide value to the supply chain,
 Guide the selection of supply chain partners, including suppliers, subcontractors,
transportation providers, and distributors.
On BSRM companies of SCM department follow those types of activities for easy to daily
works,
I. Collect Information’s & Technology
II. Purchase Raw-material for Produce Product
III. Value of Chain

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3.2Departments of Supply Chain in BSRM:
Supply chain management of BSRM working process start with purchase department. Purchase
department find out beneficiary for start our commercial activities. After collect or get pro forma
invoice commercial department start their working process by getting PO or PI and open L/C to
bank and finish their works after landing products in port. For shipment products in Bangladesh
commercial department handover all documents to logistics department. Logistics department
follow all work to safely and smoothly shift products port to warehouse. Warehouse is a last
steps of supply chain management. Before send products to factory we store it in warehouse.
Supply Chain
Management
Purchase
Department
Commercial
Department
Logistics
Department
Warehouse

34
3.2.1Purchase Department:
The purchase department plays a very important role in an organization because purchasing has
its effect on every vital factor concerning the manufacture, quality, cost, efficiency and prompt
delivery of goods to customers. Its function is to procure materials, supplies, services, machines
and tools at the most favorable terms consistent with maintaining the desired standard of quality.
Purchasing is the most important function of materials management as the moment an order is
placed for the purchase of materials, a substantial part of the company’s finance is committed
which affects cash flow position of the company. Thus, if the size of a business concern permits,
there should be a separate purchasing department and the responsibility for purchasing all types
of materials should be entrusted to this department. The head of this department is usually known
as the Purchase manager or the supply manager or the chief buyer.
Following are the basic objectives behind establishing a separate purchasing department:
a) To make continuous availability of materials so that there may be uninterrupted flow of
materials for production.
b) To make purchase competitively and wisely at the most economical prices.
c) To make purchase in reasonable quantities to keep investment in materials at minimum.
d) To purchase proper quality of materials to have minimum possible wastage of materials
and loss in production.
e) To develop good supplier relationship which will ensure the best terms of supply of
materials.
f) To develop alternate sources of supply so that materials may be purchased from those
alternate sources if a particular supplier fails to supply the materials.
g) To adopt the most advantageous method of purchase to ensure smooth delivery of
materials from suppliers and to avoid the risks of any disputes or financial loss.
h) To serve as an information center on the materials knowledge relating to prices, sources
of supply, specifications, mode of delivery etc.

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3.2.2Commercial Department:
Commercial organizations and activities are concerned with making money or profits, rather
than, for example, with scientific research or providing a public service.
Commercial means involving or relating to the buying and selling of goods and services. And
Based on the amount of profit that something earns by trading.
Commercial Departments work with two types of working process like
I. Import and
II. Export
3.2.2.1Import:
An import is a good brought into a jurisdiction, especially across a national border, from an
external source. The party bringing in the good is called an importer.[1][2] An import in the
receiving country is an export from the sending country. Importation and exportation are the
defining financial transactions of international trade.
In international trade, the importation and exportation of goods are limited by import quotas and
mandates from the customs authority. The importing and exporting jurisdictions may impose a
tariff on the goods. In addition, the importation and exportation of goods are subject to trade
agreements between the importing and exporting jurisdictions.
3.2.2.2Export:
The term export means sending of goods or services produced in one country to another country.
The seller of such goods and services is referred to as an exporter; the foreign buyer is referred to
as an importer.
Export of goods often requires involvement of customs authorities. An export's counterpart is an
import.

36
3.2.3Logistic Department:
The logistics department is entrusted with the responsibilities of ensuring that the entire process
of logistics is maintained and developed in accordance with the goals of the business at an
economical cost. The tasks of the logistics department involve storage, distribution,
warehousing, movement of goods from one place to another (internally or externally), tracking
and delivery of goods. It includes a complete process of planning, managing, controlling and
coordination to make sure that the goods reach the right place, at the right time, for the right cost
and in a right condition.
The various tasks performed by the department may be summarized as follows:
a) Ensuring all the requirements of the customers are met on time in an efficient and safe
manner.
b) That there is a safe and timely dispatch of goods.
c) To draft to coordinate with third party logistics.
d) To ensure plans, policies and procedures for successful implementation of logistics
system.
e) To ensure that the business goals of the organization are in synchronization with logistics
system.
f) To create and maintain customer support.
g) To maintain coordination with vendors, service providers and transport carriers.
h) To ensure that no fraud is committed.
i) To ensure timely supply and payment of goods and reduce inventories.
3.2.4Warehouse:
A warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are
usually large plain buildings in industrial areas of cities, towns and villages.
They usually have loading docks to load and unload goods from trucks. Sometimes warehouses
are designed for the loading and unloading of goods directly from railways, airports, or seaports.

37
They often have cranes and forklifts for moving goods, which are usually placed on ISO standard
pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials,
spare parts, components, or finished goods associated with agriculture, manufacturing and
production. In Bangladesh a warehouse may be referred to as a go-down.
3.3Wings of Commercial Department in BSRM:
Lead of Commercial
Department
Import Trade
In charge
Export Trade
In charge
Trade Finance
Team Member
Shipment control
cell Team
Members
Machineries,
Spares, Legal
& Liaison (In
Charge)
Raw-Materials,
Consumable &
Trading Item (In
Charge)
1 team
with 5
members
R.M &
Trading 2
teams with
7 members
Consumable
1 Team with
4 members
Machinery
Team:
>Rolling mill
machineries
>Melting
machineries
>Crane, Weigh
scull
machineries
Sponge Iron Team:
>Sponge Iron
>H. Beam
>I. Beam
>Channel
>Angle
Scrap Item
Team:
>Steel Plate
>PNS
>Bundle
>HMS 1
>HMS 2
>Silicon
Manganese
>Ferro Manganese
>Ferro Silicon
>Tarnish Board
>Quartz Powder
etc.
Local
Export
Foreign
Export
>Rod >Zink Ash
>Driest
>Plate

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3.4Commercial Department ofBSRM:
Commercial means involving or relating to the buying and selling of goods and services. And
Based on the amount of profit that something earns by trading.
BSRM company work for Government and industry as well as for private clines. BSRM
company work for inside and outside of Bangladesh. Commercial trade works is divided into two
main activities. Those are
A. Import and
B. Export
3.4.1Import:
Import means purchase of goods and services from one or more foreign company’s or country’s
especially for sale or trade by following legal activities. The term import is derived from the
conceptual meaning as to bring in the goods and services into the port of a country.
Commercial
Import Export
Machineries,
Spares, Legal
& Liaison
Raw-Materials,
Consumable &
Trading Item
Trade
Finance
Shipment
Control Cell
Local
Export
Foreign
Export

39
3.4.2Steps of Import in BSRM:
BSRM company main activity is import products or goods by following all types of govt. roles
and import polices. Those process are shortly describing:
 Commercial/Import activities started when we get pro forma invoice or purchase order
 Matching PI with PO
 Check H.S code
 Check Mushak 1
 Check L/C clauses carefully
 Send the L/C and PI to bank for Dummy L/C
 Send the dummy L/C to supplier for approval
 Check e-mail for supplier approval and correction
 Send correction to bank and get final L/C draft
 Prepare document for letter of Credit& Application
 Prepare full set of document for bank
I. 2 copy PI
II. LC Draft
III. LCAF
IV. L/C Application and
 Send signed L/C opening forwarding letter to bank
 For new supplier or supplier’s requirement send banks L/C draft to supplier for conformation
 After check or by getting supplier confirmation make correction or changes and ask to bank
for final draft
 Get transmitted SWIFT copy forward to supplier
 After transmission of L/C if any correction or changes need than go for L/C amendment
 Oracle Posting for L/C opening plan
 Wait for shipping documents
 Collect draft documents and check than conform supplier if any correction need or confirm
that draft documents are OK

40
 Collect copy documents from supplier via mail after making shipment
 Oracle Posting for per shipment plan only for Amendments
 For Land port & Airport shipment get NOC (No Objection Certificate) from bank and for
Sea port shipment E-mail copy of docs to C&F agent
 Send commercial invoice, packing list and consignment note (CN)/ bill of lading (BL) air
way bill (AWB) to insurance company and also release the insurance bill after receiving
marine certificate.
 Prepare NOC (No Objection Certificate) letter and also C&F Authorization From
 Send signed NOC letter to bank alone with commercial invoice, packing list certificate of
origin, material test certificate
 Getting bank NOC and bank Endorse all other shipping documents, PI, L/C, ACK copy,
Duplicate copy of LCAF along with signed C&F Authorization letter and marine certificate
of insurance handover to C&F agent
 For sea shipment provide commercial invoice, packing list & BL to C&F via mail to follow
up vessel position
 Ask supplier for submitting original documents to bank as early as possible before vessel
arrived at Chittagong seaport
 Collect original documents from bank by providing documents acceptance letter or
documents retirement letter
 After releasing payment collect payment acknowledged copy payment SWIFT (South Asia
Free Trade Agreement) from bank and inform supplier to collect their payment
 After completion of assessment duty & taxes to pay for Beanpolecustoms & Dhaka customs
duty & taxes paid via TT (Telegraphic Transfer). For Chittagongcustoms duty & taxes, port
charge, shipment agent charge depot charge, survey charge etc. paid via pay order
 Issue undertakings and risk bond in case of taking container from Chittagongport to our
factory or warehouse
 Inform Logistics department to take necessary action for transport consignment from port to
our factory or warehouse
 If accident or any kind of unaccepted occurrence happen during transportation need to claim
for insurance coverage

41
 Both insurance company and applicant/importer inspect the demurrage and according to the
inspection report insurance company compensate.
 After completion of taking delivery C&F agent submit their bill and we need to check the bill
as per work order and release the bill accordingly.
 If not shipped contact purchase dept. and supplier to re confirm L/C closure.
3.4.3 Import Documents of BSRM:
In import department different types of documents are essentially needed. the documents are:
 Pro-forma Invoice
 Letter of Credit
 Commercial Invoice
 Bill of Lading/ Air Way Bill
 Bill of Exchange
 Certificate of Origin
 Inspection Certificate
 Insurance Certificate
 Packing List
 Import Registration Certificate
 Shipment Advice
3.4.4Form of IMP:
The form-IMP contains the followings:
 Name and address of the authorized dealer.
 Amount of remittance to be permitted (UC amount).
 LCA form number, date and value in Taka.
 Description of goods and quantity.
 Invoice value in foreign currency (UC amount).
 Country of origin.

42
 Port of shipment
 Name of steamer / Airline (By Road, By Ship, By Air)
 Port of information, inventories name and addresses.
 Investor’s registration number with CCI & E and Bangladesh bank.
 Full name and address of the Applicant.
 Registration number of the applicant with CCI & E.
 Type of ICAF.
3.4.5 Pro-forma Invoice:
A pro-forma invoice is a document that states a commitment from the seller to provide specified
goods to the buyer at specific prices. It is presented for payment before the dispatch of goods. It
is often used to declare value for customs. It is not a true invoice, because the seller does not
record a pro forma invoice as an accounts receivable and the buyer does not record a pro forma
invoice as an accounts payable. A pro forma invoice is not issued by the seller until the seller and
buyer have agreed to the terms of the order. In few cases, pro forma invoice is issued for
obtaining advance payments from buyer, either for start of production or for security of the
goods produced. Clearly indicate the information in PI
 Exporter name, address, contact number and email
 Importer name, address, contact number and email
 Country of origin
 Place of loading
 Place of discharge
 Description of goods
 Quantity
 Rate on US $ & total amount
 L/C advising bank name, Account No. & bank swift code
 Others terms & conditions

43
3.4.6 H. S Code:
The Harmonized Commodity Description and Coding System, also known as the Harmonized
System (H.S) of tariff nomenclature is an internationally standardized system of names and
numbers to classify traded products. It came into effect in 1988 and has since been developed
and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation
Council), an independent intergovernmental organization based in Brussels, Belgium, with over
200 member countries. The H.S is organized logically by economic activity or component
material. For example, animals and animal products are found in one section of the H.S, while
machinery and mechanical appliances are found in another. The H.S is organized into 21
sections, which are subdivided into 96 chapters. The 96 HS chapters are further subdivided into
approximately 5,000 headings and subheadings. The H.S code consists of 6-digits. The first two
digits designate the H.S Chapter. The second two digits designate the HS heading. The third two
digits designate the HS subheading. HS code 1006.30, for example indicates Chapter 10
(Cereals), Heading 06 (Rice), and Subheading 30 (Semi-milled or wholly milled rice, whether or
not polished or glazed).
3.4.7Mushak 1:
Mushak 1declaredthe VAT price for imported product. BSRM company Import 30,000 and up
products form out of country. For this imported products custom fixed or discount some
percentage rate by using Mushak 1.
3.4.8Letter of Credit (L/C):
Letter of Credit can be defined as a credit contract whereby the buyer’s bank is committed to
place an agreed amount of money at the seller’s disposal under some agreed conditions. Since
the agreed conditions include amongst other things, the presentation of some specified
documents, the letter of credit is called Documentary Letter of Credit.

44
 Any arrangement however named or described, whereby a bank (issuing bank) acting at
their quest and the instructions of a customer (the applicant) or of its own behalf is to
make payment to or to the order of a third party (beneficiary), or is to accept and pay bill
of exchange (drafts) drawn by the beneficiary or
 Authorizes another bank to effect such payment, or to accept and pay such bill of
exchange (drafts).
 Authorizes another bank to negotiate.
3.4.9LCAF (Letter of Credit Authorization Form):
LCAF is the form by which the agreement between Bank and the Applicant is occurred. This is
the application and agreement for confirmed irrevocable without recourse to drawers‟ letter of
credit. In this agreement the details of LC are placed, like-
 Beneficiary’s Name and Address
 Applicant’s Name and Address
 Products Name and Details
 Sales types
 Draft Amount / Total Currency
 Country of Origin
 Insurance Coverage
 Last Date of Shipment
 Last Date of Negotiation
 L/C Amount
 L/C number
 Bangladesh Bank Registration no.
 Shipment is Allowed or not
 Transshipment is Allowed or not
 Exchange Rate
 Other Terms and Conditions, if any need.

45
LCAF (Letter of Credit Authorization Form) this is also an agreement form where some more
information about L/C are placed, like- IRC Number, Year of Renewal, Source of Financing,
List of items and their H.S(Harmonize Commodity Distribution & Coding System) Codes, etc.
3.4.10L/C Amendment:
After a credit has been issued, it may be felt necessary to alter some of the stipulations of the
credit or delete some or add some more.
Amendment can be done for various reasons under the guideline of foreign exchange the reason
is given below:
I. Extension of date of shipment.
II. Extension of draft amount within L/C limit.
Change of specification of commodities, price or quantity to be imported
3.4.11Applicant:
An importer is one who wants to import goods from other country. In terms of the importers
(Registration) Order- 1981 no person can import goods into Bangladesh unless he is registered
with the Chief Controller of Import and Export (CCI&E). He is also called applicant. The banks
can open L/C on the importer’s application.
3.4.12Beneficiary:
Beneficiary is the party in whose favor the L/C is issued. Usually he is the seller or exporter.
Generally, a beneficiary is a person who receives benefit from a particular entity (say trust) or a
person. The eligibility to be considered for the benefits is confirmed either as per the
specifications in the policy documents or by other legal norms such as that for a legal heir. The

46
insured person is usually asked to mention the name of the beneficiary (who he would like to
bestow the insurance proceeds upon his death) at the time of commencement of an insurance
policy. There are also provisions for making a contingent beneficiary in case the primary
beneficiary is no more or does not qualify the age criteria at that time.
3.4.13Issuing Bank / Opening Bank:
The bank which opens L/C on behalf of the importer is called issuing bank. Issuing bank’s
obligation is to make payment against presentation of documents drawn strictly as per terms of
L/C.
3.4.14Advising Bank:
The bank through which the L/C is advised/forwarded to the beneficiary. It is situated in the
beneficiary’s country. The most important function of this bank is to make sure the beneficiary
about the authenticity of the documents.
3.4.15Nominated Bank:
The bank that negotiates the bill of exporter drawn under the credit is known as negotiating bank.
If the advising bank is also authorized to negotiate the bill drawn by the exporter, he becomes the
negotiating bank.
3.4.16Conforming Bank:
Conforming bank is a bank that adds its confirmation to the credit and it is done at the request of
the issuing bank. It provides the credit report of the exporter of his country. If the advising bank
also adds its own undertaking to honor the credit while advising the same to the beneficiary, he
becomes the confirming bank, in addition, becomes liable to pay for documents in conformity
with the LIC’s terms and condition.

47
3.4.17Commercial Invoice:
A commercial invoice is document used in foreign trade. It is a document required by customs to
determine true value of the imported goods, for assessment of duties and taxes. Even though
there is no standard format it should identify the buyer and seller. Clearly indicate the
a) Date and terms of sale,
b) Quantity, weight and/or volume of the shipment,
c) Type of packaging,
d) Complete description of goods,
e) Unit value and total value, and
f) Insurance, shipping and other charges.
A commercial invoice must also include a statement certifying that the invoice is true, and a
signature.
3.4.18Bill of Lading:
Bill of lading is the bill given by the shipment company to the client. This document serves as
evidence of ownership of the goods being exported, and also specifies the responsibilities of the
transporting company.
3.4.19Air Way Bill:
Transport document issued by a carrier for air transportation. If issued by the actual carrier, it is a
master air waybill. If issued by an freight consolidator or forwarder it is a house air waybill. The
document is issued in three originals and is not negotiable so it cannot be issued to the order; it is
always nominative and non-endorsable. Since it is not negotiable, and it does not evidence title
to the goods, in order to maintain some control of goods not paid for by cash in advance, sellers
often consign air shipments to their sales agents, or freight forwarders’ agents in the buyer’s
country. The standard form was designed to enhance the application of computerized systems to
air freight processing for both the carrier and the shipper. Model of Air Waybill.

48
3.4.20Consignment Note:
A document a consignor and consigned agree to prove receipt of property. It is an alternate of
bill of lading but is not a contract or negotiable instrument.
3.4.21Bill of exchange:
A bill of exchange is a non-interest-bearing written order used primarily in international trade
that binds one party to pay a fixed sum of money to another party at a predetermined future date.
3.4.22Certificate of Origin:
A Certificate of Origin is a document which states the country where the goods were actually
manufactured. In certain cases, all the goods may not originate from one country. The raw
materials and the processes may be from another country. In such cases, if more than 50 per cent
of the goods originate from one country, that country is determined to be the country of origin. A
certificate of origin is used in international trade.
3.4.23Inspection Certificate:
A certificate of inspection is also called an inspection report or an inspection certificate. A
certificate of inspection is required for import of industrial equipment and perishable goods. It
certifies that the goods meet the required specifications in terms of quality and quantity when it
left the port of departure.

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3.4.24Packing List:
This highly involved document provides a detailed description of the contents being shipped. It
covers the material in each individual package, providing information such as individual net,
legal, tare and gross weights and measurements for each package. These data are typically
presented in both metric and U.S. measurement figures. Export packing lists are used by the
shipper (or the freight forwarder) to confirm the shipment's contents and figure the total weight
and volume of the shipment.
3.4.25Shipment of Goods:
The cargo that is transported under a single air way bill or bill of lading. Also known as a
consignment. FOB is a shipping term that stands for “free on board.” If a shipment is designated
FOB (the seller’s location), then as soon as the shipment of goods leaves the seller’s warehouse,
the seller records the sale as complete. The buyer owns the products on route to its warehouse
and must pay any delivery charges.
3.4.26Insurance Policy:
The insurance policy is a contract between the insurer and the insured, known as the
policyholder, which determines the claims which the insurer is legally required to pay. In
exchange for an initial payment, known as the premium, the insurer promises to pay for loss
caused by perils covered under the policy language.
3.4.27SWFTA Agreement:
SAFTA is a regional co-operation agreement signed between the member countries of SAARC
(Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka and Afghanistan), with the
commitment to strengthen intra-SAARC economic cooperation to maximize the realization of
the region's potential for trade and development for the benefit of their people, in a spirit of

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mutual accommodation, with full respect for the principles of sovereign equality, independence
and territorial integrity of all States, in line with the charter objective of promoting economic co-
operation.
The Agreement on South Asian Free Trade Area (SAFTA) was signed on 6 January 2004 during
the Twelfth SAARC Summit in Islamabad and entered into force on 1st January 2006. The
agreement outlines a 10-year schedule for trade liberalization, which aims at reducing and
eliminating customs duties on cross-border trade
Rules of Origin is the mechanism which is used to determine whether products imported into the
contracting country originate in the exporting country. These products listed in the respective
countries Margin of Preferences (MOP) Lists are entitled to the preferential treatments within
SAFTA rules of origin. Products wholly produced or obtained within the territory of the state of
the exporting country, or which conforms to the required valued-added test are deemed to be
regarded as originating from the respective country. The products in the No-concessions Lists are
not entitled to any preferential treatment.
3.4.28C&F Agents:
C&Fs (Customs Clearing and Forwarding Agent) grew out of the need to provide businesses
with smart shipping resources and provide up-to-date knowledge to get through customs quickly
and easily. One of the primary jobs of a C&F is to keep your shipping costs low, by providing a
range of available transportation modes with services related to shipping, like packaging, and
acting as experts in clearing customs.
The best service they can provide for you is tailoring shipping needs particularly suited for your
business according to the goods that you ship and where they are sourced. For importing clients,
they work to get the best mode of transportation from the manufacturer or wholesaler to the local
customs office upon arrival. For exporting, they choose the best method to take goods from your
doorstep to the destinations customs office. A C&F can greatly reduce shipping expenses and the
time you spend on customs forms, etc.

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C&F agents start their works after getting some documents like
a) Pro-Forma Invoice
b) Bill of Exchange
c) Country of Origin
d) Packing List.
With those documents C&F agent can relief import products from customs office.

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3.5Letter of Credit (L/C):
Letter of Credit can be defined as a credit contract whereby the buyer’s bank is committed to
place an agreed amount of money at the seller’s disposal under some agreed conditions. Since
the agreed conditions include amongst other things, the presentation of some specified
documents, the letter of credit is called Documentary Letter of Credit.
 Any arrangement however named or described, whereby a bank (issuing bank) acting at
therequest and the instructions of a customer (the applicant) or of its own behalfis to
make payment to or to the order of a third party (beneficiary), or is to accept and pay
billof exchange (drafts) drawn by the beneficiary or
 Authorizes another bank to effect such payment, or to accept and pay such bill of
exchange (drafts).
 Authorizes another bank to negotiate.
3.5.1 Types of L/C:
L/C can be either:
REVOCABLE L/C:
This type of L/C can be revoked or cancelled anytime without prior notice to the beneficiary. As
per article 8 (a) of UCPDC-600 “A revocable L/C may be amended or cancelled by the issuing
bank at any moment and without prior notice to the beneficiary.’’
IRREVOCABLE L/C:
An irrevocable L/C is a documentary credit, which cannot be revoked, varied or
changed/amended or cancelled without the consent of all parties- buyer (Applicant), seller
(Beneficiary), issuing Bank and the confirming Bank. As per Article 9 (a) of UCPDC-600, “An
irrevocable L/C constitutes a definite undertaking of the issuing Bank, provided that the
stipulated documents are presented to the Nominated Bank or to the issuing Bank and that the
terms and conditions of the credit are compiled with.

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3.5.2L/C Terms for Payment:
I. Sight L/C:
Sight L/C payment must be made within five working days.
II. Deferred L/C:
Deferred L/C payment must be made on or after the due date i.e. shipment date or bill of lading
date. Deferred L/C is usually opened for 90 days, 120days, 180days and 360days depending on
the goods.
BSRM trade finance team maximum time work with deferred L/C and find a bank or banks who
give lower interest rate more than other banks. On deferred L/C payment BSRM company pay
due by two ways like
Raw-materials deferred LC open for 180 days and
Capital materials deferred LC open for 360 days
III. Back to Back L/C:
Usually, this L/C is opened by the exporter. If exporter needs to import goods or equipment’s to
manufacture the ordered goods, then he may import those goods or equipment’s by opening a
L/C against this mother L/C. The value of the back to back L/C can be 80 percent of the mother
L/C.
3.5.3 LCAF (Letter of Credit Authorization Form):
LCAF is the form by which the agreement between Bank and the Applicant is occurred. This is
the application and agreement for confirmed irrevocable without recourse to drawers‟ letter of
credit. In this agreement the details of LC are placed, like-
 Beneficiary’s Name and Address
 Applicant’s Name and Address

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 Products Name and Details
 Sales types
 Draft Amount / Total Currency
 Country of Origin
 Insurance Coverage
 Last Date of Shipment
 Last Date of Negotiation
 L/C Amount
 L/C number
 Bangladesh Bank Registration no.
 Shipment is Allowed or not
 Transshipment is Allowed or not
 Exchange Rate
 Other Terms and Conditions, if anyneed.
LCAF (Letter of Credit Authorization Form) this is also an agreement form where some more
information about L/C are placed, like- IRC Number, Year of Renewal, Source of Financing,
List of items and their H.S(Harmonize Commodity Distribution & Coding System) Codes, etc.
3.5.4 L/C Amendment:
After a credit has been issued, it may be felt necessary to alter some of the stipulations of the
credit or delete some or add some more.
Amendment can be done for various reasons under the guideline of foreign exchange the reason
is given below:
i. Extension of date of shipment.
ii. Extension of draft amount within L/C limit.
Change of specification of commodities, price or quantity to be imported

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3.5.5 Parties Involved in L/C Operation:
3.5.5.1 Applicant:
An importer is one who wants to import goods from other country. In terms of the importers
(Registration) Order- 1981 no person can import goods into Bangladesh unless he is registered
with the Chief Controller of Import and Export (CCI&E). He is also called applicant. The banks
can open L/C on the importer’s application.
3.5.5.2 Beneficiary:
Beneficiary is the party in whose favor the L/C is issued. Usually he is the seller or exporter.The
Beneficiary is the person or company who will be paid under the letter of credit; this will
normally be the seller.
The beneficiary is the person or entity entitled to receive the claim amount and other benefits
upon the death of the benefactor or on the maturity of the policy.
3.5.5.3 Issuing Bank:
The bank which opens L/C on behalf of the importer is called issuing bank. Issuing bank’s
obligation is to make payment against presentation of documents drawn strictly as per terms of
L/C.
3.5.5.4 Advising Bank:
The bank through which the L/C is advised/forwarded to the beneficiary. It is situated in the
beneficiary’s country. The most important function of this bank is to make sure the beneficiary
about the authenticity of the documents.

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3.5.5.5 Nominated Bank:
negotiating bank.
3.5.5.6 Conforming Bank:

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3.6Trade Finance:
Trade finance relates to the process of financing certain activities related to commerce and
international trade. Trade finance includes such activities as lending, issuing letters of credit,
factoring, export credit and insurance. Companies involved with trade finance include importers
and exporters, banks and financiers, insurers and export credit agencies, and other service
providers.
Trade finance is through the issuing of a letter of credit, which is opened in the exporter's name
by the importer through a bank in his home country. The letter of credit essentially guarantees
payment to the exporter by the bank issuing the letter of credit upon receipt of documentary
proof that the goods have been shipped. Although this is a somewhat cumbersome process, the
letter of credit system is one of the most popular trade finance mechanisms.
3.6.1 Trade Finance Department of BSRM:
Trade finance signifies financing for trade, and it concerns both domestic and international trade
transactions. A trade transaction requires a seller of goods and services as well as a buyer.
Various intermediaries such as banks and financial institutions can facilitate these transactions by
financing the trade.
The same credit can be termed an import or export letter of credit depending on whose
perspective is considered. For the importer it is termed an Import L/C and for the exporter of
goods, an Export L/C.
3.6.2 Letter of Credit:
It is an undertaking/promise given by a Bank/Financial Institute on behalf of the Buyer/Importer
to the Seller/Exporter, that, if the Seller/Exporter presents the complying documents to the
Buyer's designated Bank/Financial Institute as specified by the Buyer/Importer in the Purchase
Agreement then the Buyer's Bank/Financial Institute will make payment to the Seller/Exporter.

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L/C can be further classified in terms of Payment
 Sight L/C
 Deferred L/C
 Back to Back L/C
Sight L/C:
Sight L/C payment must be made within five working days.
Deferred L/C:
Deferred L/C payment must be made on or after the due date i.e. shipment date or bill of lading
date. Deferred L/C is usually opened for 90 days, 120days, 180days and 360days depending on
the goods.
BSRM trade finance team maximum time work with deferred L/C and find a bank or banks who
give lower interest rate more than other banks. On deferred L/C payment BSRM company pay
due by two ways like
Raw-materials deferred LC open for 180 days and
Capital materials deferred LC open for 360 days
3.6.3 Steps of Trade Finance in BSRM:
 Trade finance team find bank for L/C open
 This team provided information to commercial team members about L/C opening bank/
Advising bank/ negotiating bank/ discounting bank and conforming bank.
 We shall negotiate to offshore banking unit (OBU).
 OBU discounting pricing with our local bank in case of deferred L/C opened for 90days
/ 180 days/360 days.

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 Negotiating with foreign bank/ conforming bank for conformation and discounting rate.
 Collect bank rate for deferred L/C more than one conforming bank. We chose better rate
of them.
3.6.4 Relationship with Banks & BSRM:
BSRM & banks relation like two part of one currency. Without banks help BSRM company’s
activitiescan’t move. Trade finance teams of BSRM helps to create good relations with banks.
BSRM company work with 30 or 30up banks. Trade finance team open policy in bank for 1 year
with a fixed amounts of exchange and give percentage of per annum. This policy will be changed
every year and percentage will be changed after few times or days.
3.6.5 LIBOR:
The London Interbank Offered Rate (LIBOR) is the average of interest rates estimated by each
of the leading banks in London that it would be charged were it to borrow from other banks.
Libor rates are calculated for five currencies and seven borrowing periods ranging from
overnight to one year and are published each business day.
Discount rate fixed roles are given bellow;
LIBOR + discounting rate
I. 1 day
II. 1 week
III. 1 month
IV. 2 months
V. 3 months
VI. 6 months
VII. 1 year

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3.7Shipment Control Cell:
Shipping Control or Shipment Control Cell supports the automotive requirements necessary to
ship to customers, such as bar-code integration, returnable container, advanced shipping
notifications and export documents. It further reinforces our position as the premier automotive
web-based demand management, shipping control, and release accounting system available to
automotive suppliers.
3.7.1Shipment Control Cell Documentation of BSRM:
Shipment control cell is a relatively new wings in commercial department. It objective is not yet
finalized. But now this wings just doing those types of activities
 Tracking the Bill of Leading
 Upcoming material statement prepares
 Uncleanness material statement prepares
 Follow-up to ship movements and collect all information’s
 After inform logistic department for clearance shipping products.
3.8 Export:
Export means selling and sending out of goods or services to other countries.
Export are goods that are produced in our own country and shipped to another country forsale.
They can also be used for trade with another country if the home country needs a product from
the country are exporting to. Exports are often referred to when speaking about international
trade, which is simply the exchange of goods and services with others country.
BSRM Company of export department export their products by following those types.
 Direct Export and
 Dream Export

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3.8.1 Export Procedure of BSRM:
In BSRM companies export procedures started by sales department. Sales departments find
applicants for sale products. And inform export departments about finding applicants.
 Export department create pro-forma invoice or purchase order for export products in inside
and outside of country.
 EPZ base created for directly export products for out of country.
 Sales contract (Buyer & Seller agreement) is a mixed work of export product in inside &
outside of country. This contract creates together with applicants and beneficiaries help.
 Local L/C opened only for inside of Bangladesh.
 Join venture is a mixed working process, and work together with few foreign countries. But
this work done must be in Bangladesh.
Pro-
forma
Invoice
EPZ Base
Sales
Contract
Local LC
Joint
Venture

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3.8.2 Steps of Export in BSRM:
 Export works start after getting sales contract or PI
 Sales contract time we get advance payment or TT (Telegraphic Transfer)
 After getting sales contract we start to L/C opening process
 After get L/C from advising bank check all trams and condition
 Check amendment. After amendment we get EXP. form from bank
 If everything OK. Then we ready documents for custom assessment with
I. Commercial Invoice
II. Packing list
III. Delivery challan
IV. EXP form
 Fill up carefully all commitment of EXP. form and send it to bank
 Bank send EXP. form back to us with signature and seal
 Now send 1set document handover to sales person to provide buyer for getting import
permit
 Buyer send 1 document set to BEPZA (Bangladesh Export Processing Zone Authority)
for import permit
 Another document we handover C&F agent for vetting and assessment
 C&F send clearance information of all document for shipping
 After sales department inform logistic department and export department
 Now export department inform C&F
 C&F agent work with mushak 11 for vat and mushak20 for collect customs clearance
certificates under 24hours
 Beneficiary C&F agent contact with applicant C&F agent for clearing products
 Now both C&F agent matching all documents and clear customs work
 As per L/C we shall prepare documents L/C trams and condition
 Now we prepare delivery challan as per L/C
 After we send it to sales person and get seal & signature from authorization
 For getting payment we send documents to negotiation bank with

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I. Commercial Invoice
II. Packing list
III. Delivery challan
IV. EXP. form
V. Bill of exchange
VI. Bill of export or Bill of entry
VII. Forwarding letter
 Negotiation bank send all documents to opening bank
 Opening bank inform to applicant after got all documents
 Buyer give acceptant and permit to bank for give payment
 negotiation bank informing us for collect the payment
 Bank give us payment advice. After getting payment advice we shall provide to account
department for issuing MR (Money Received)
 Now work for duty drop back
 Close L/C
3.8.3 Export Documents of BSRM:
Export departments follow those types of activities for export products-
I. Price Query (Buyer)
II. Price Offer (Seller)
III. Pro forma Invoice
IV. Commercial Invoice
V. Packing list
VI. EXP Form
VII. Bill of Exchange
VIII. Bill of Lading
IX. Certificate of origin
X. Delivery Challan
XI. BEPZA for import permit
XII. Payment Collection or Money Received

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3.8.4 Export Registration Certificate (ERC):
The exports from Bangladesh are subject to export trade control exercised by the Ministry of
Commerce through Chief Controller of Imports and Exports (CCI&E). No exporter is allowed to
export any commodity permissible for export from Bangladesh unless he is registered with CCI
&E and holds valid. Export Registration Certificate (ERC). The ERC is to be renewed every
year.
3.8.5 Export Permit (EXP):
After having the registration, the exporter applies with the trade license, ERC, and the Certificate
from the concerned Government Organization to get EXP. If the bank is satisfied, an EXP is
issued to the exporter.
An EXP contains the following Particulars:
 Name and address of the authorized dealer
 Particulars of the commodity to be exported with code
 Country of destination
 Port of destination / Quantity
 L/C value in foreign currency
 Terms of sales
 Name & address of the importer
 Bill of lading
 No & date
 Port of shipment
 Land custom post
 Shipment date
 Name & address if the exporter

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3.8.6 Applicant:
The Applicant is the person or company who has requested the letter of credit to be issued; this
will normally be the buyer.
3.8.7 Beneficiary:
The Beneficiary is the person or company who will be paid under the letter of credit; this will
normally be the seller.
3.8.8 Bangladesh Export Processing Zone Authority (BEPZA):
The Bangladesh Export Processing Zone Authority (BEPZA)is an agency of the Government of
Bangladesh and is administered out of the Prime Minister's Office. Its objective is to manage the
various export processing zones in Bangladesh. BEPZA currently oversees the operations of
eight export processing zones (EPZ). A ninth zone is scheduled to open in the future. Recently
government has announced that in 15 years 100 new EPZ and SEZ will be established.
The Government provides numerous incentives for investors for opening factories in EPZs. For
example, new factories enjoy tax holidays for 5 years. Also, labor unions and other activities that
are often viewed detrimental to productivity, are banned inside the EPZs.
3.8.9 Mushak 1ga, 11, 20:
On Mushak 1ga fixed products price& tax by following H.S code number.
On Mushak 11 fixed VAT for every exported product.
On Mushak 20 exporter clear all types of exported documents from customs under 24 hours.
3.8.10Letter of Credit:
A letter of credit is a method of payment that is an important part of international trade. They are
particularly useful where the buyer and seller may not know each other personally and are
separated by distance, differing laws in each country and different trading customs.

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It is generally considered that Letters of Credit offer a good balance of security between the
buyer and the seller, because both the buyer and seller rely upon the security of banks and the
banking system to ensure that payment is received and goods are provided.
In a Letter of Credit transaction, the goods are consigned to the order of the issuing bank,
meaning that the bank will not release control of the goods until the buyer has either paid or
undertaken to pay the bank for the documents.
3.8.11 Advising Bank:
The Advising Bank is the bank that will inform the Beneficiary or their Nominated Bank of the
credit, send the original credit to the Beneficiary or their Nominated Bank, and provide the
Beneficiary or their Nominated Bank with any amendments to the letter of credit.
3.8.12Nominated Bank:
negotiating bank.
3.8.13 Conforming Bank:
3.8.14 Pro-forma Invoice:
A pro-forma invoice is a document that states a commitment from the seller to provide specified
goods to the buyer at specific prices. It is presented for payment before the dispatch of goods. It
is often used to declare value for customs. It is not a true invoice, because the seller does not
record a pro forma invoice as an accounts receivable and the buyer does not record a pro forma
invoice as an accounts payable. A pro forma invoice is not issued by the seller until the seller and

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buyer have agreed to the terms of the order. In few cases, pro forma invoice is issued for
obtaining advance payments from buyer, either for start of production or for security of the
goods produced. Clearly indicate the information in PI
 Exporter name, address, contact number and email
 Importer name, address, contact number and email
 Country of origin
 Place of loading
 Place of discharge
 Description of goods
 Quantity
 Rate on US $ & total amount
 L/C advising bank name, Account No. & bank swift code
 Others terms & conditions
3.8.15 Commercial Invoice:
A commercial invoice is document used in foreign trade. It is a document required by customs to
determine true value of the imported goods, for assessment of duties and taxes. Even though
there is no standard format it should identify the buyer and seller. Clearly indicate the
i. Date and terms of sale,
ii. Quantity, weight and/or volume of the shipment,
iii. Type of packaging,
iv. Complete description of goods,
v. Unit value and total value, and
vi. Insurance, shipping and other charges.
A commercial invoice must also include a statement certifying that the invoice is true, and a
signature.

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3.8.16 Bill of Exchange:
Bill of exchange is an instrument in writing containing an unconditional order sighted by the
maker directing a carting person to pay a certain person sum of money only to on to the
instrument. It may be either at sight on certain day sight. At sight means making payment
whenever documents will reach in the issuing bank.
3.8.17 Air Way Bill:
Transport document issued by a carrier for air transportation. If issued by the actual carrier, it is a
master air waybill. If issued by an air freight consolidator or forwarder it is a house air waybill.
The document is issued in three originals and is not negotiable so it cannot be issued to the order;
it is always nominative and non-endorsable. Since it is not negotiable, and it does not evidence
title to the goods, in order to maintain some control of goods not paid for by cash in advance,
sellers often consign air shipments to their sales agents, or freight forwarders’ agents in the
buyer’s country. The standard form was designed to enhance the application of computerized
systems to air freight processing for both the carrier and the shipper. Model of Air Waybill.
3.8.18 Bill of Lading:
Bill of lading is the bill given by the shipment company to the client. This document serves as
evidence of ownership of the goods being exported, and also specifies the responsibilities of the
transporting company.
3.8.19 Certificate of Origin:
A Certificate of Origin is a document which states the country where the goods were actually
manufactured. In certain cases, all the goods may not originate from one country. The raw
materials and the processes may be from another country. In such cases, if more than 50 per cent
of the goods originate from one country, that country is determined to be the country of origin. A
certificate of origin is used in international trade.

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3.8.20 Packing List:
This highly involved document provides a detailed description of the contents being shipped. It
covers the material in each individual package, providing information such as individual net,
legal, tare and gross weights and measurements for each package. These data are typically
presented in both metric and U.S. measurement figures.
3.8.21 Insurance Policy:
International transactions provide to the insurance on the shipment. The insurance certificate
describes the type and amount of merchandise contained in the shipment, and confirms that the
shipment has been insured.
3.8.22 Delivery ChallanReceipt:
This paper is the international carrier's acknowledgment that goods have been received. It serves
to transfer responsibility for those goods from the domestic to the international carrier.
3.8.23 Signing of the Contract:
After communicating with buyer, the exporter has to get contract for exporting exportable items
from Bangladesh detailing commodity, quantity, price, shipment, insurance and bank, custom
etc. exporter accepts the order from importer. Both the parties agree on terms and conditions of
the sale. Then the exporter instructs its bank to open a L/C incorporating previously agreed terms
of sale. Indent Invoice is the outcome of the agreement between exporter and importer. This is
prepared by the exporter.
3.8.24 Procuring the Materials:
Before the export forms are lodged by the exporters with the customs authorities, they should get
all the copies endorsed by Bank. Before shipment, exporter submits export form (EXP) with
commercial invoice. Then Bank officer checks it properly, if satisfied, certifies the export form.
Without it exporter cannot make shipment. The customer must declare all exports goods on the
EXP issued by the authorized dealers.

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3.8.25Shipment of Goods:
After certification of EXP forms are issued, the next steps for the exporter to make necessary
arrangements for shipment of goods.
3.8.26 Payment Collections:
After shipments of the goods, the exporters prepare the required documents and submit it to
advising bank for payment. Later than shipment, exporters submit the following documents for
negotiations.
a) Bill of exchange
b) Bill of Lading
c) Commercial invoice
d) Pro-forma Invoice
e) Certificate of Origin
f) Inspection certificate.
g) Insurance policy
h) Packing list
i) Dock Receipt
j) Cleaning & Findings or C&F.
3.8.27L/C Procedure for Local Export of BSRM:
Local L/C is different from EPZ L/C,
 EXP never required for local L/C.
 No involvement of custom authority
 Mushak 11& 20 not required
 After receiving L/C from buyer duly signed and sealed.
 After getting sign and seal send a copy to BSRM companies sales person
 Sales person communicate with logistics department for the delivery of product
 A copy of L/C documents send to our issuing bank
 Issuing bank send all the documents to the buyers issuing bank

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 After receiving the payment advice from buyers issuing bank
 Now issue M/R(Money Received) for accounts department

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4.1 Finding:
During my internship I have found some problems of Commercial Activities at BSRM:
 Lack of sufficient manpower in the Commercial Department.
 Slow information process.
 Slow working methods and employees are not serious and careful about their training
classes.
 National tax authorities are pursuing tax pursuing tax system reform and pressing harder
for strict compliance with tax regulation, driven by change in the external tax
environment, changing economic and business condition, and heightened demands from
governments for tighter tax management and additional revenues.
 Ineffective VAT management framework to identify, quantify and manage transactions
and cross-border movement of goods, throughout the end-to-end supply chain.
 Slow internet server which is hampered while working in E-Business.
 Costs and risks related to using non-compliant customs agents for importation.

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4.2Recommendations:
 Information process of Commercial and Supply Chain Management should be quicker so
that Supply in the Commercial Department can work smoothly.
 Centralizing VAT compliance in global or regional shared services centers.
 Routing Cross-Broader movements of goods to make best use of import & export VAT
departments, free trade zones, reverse charge accounting, etc. to improve cash flow and
avoid irrecoverable VAT.
 The working methods would be more reliable, If BSRM Steels Group of Companies uses
off the job training. But, Employees should more careful about company’s confidential
matters when they attend off the training.
 Adopting an effective VAT management framework to identify, quantity and manage
transactions and cross-border movements of goods, throughout the end-to-end supply
chain.
 BSRM Steels Group of Companies should make proper schedule in terms of time to
ensure participative workshop program. Besides, safety training supposed to be arranged
once in 2 months.
 Select the workers who are more loyal, helpful and committed to the organization.
 Handouts given by the resource persons need to be rich and most updated ensuring better
working program.
 The room environment should be healthier.
 Need to focus on E-Business technology.
 Internet server should be more effective.

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4.3 Conclusion:
BSRM Group of Companies has earned a good reputation around Bangladesh. BSRM Group of
Companies has made remarkable progress, practically in every sphere of its activities. But they
have their competitors who actively striving to take the advantages in every side. They should
aware about this. It must be a concerning fact. They try to satisfy their customer through
providing different service. So, they should improve their service quality to attract more
customers. None the less, they have launched new Steels or products. For sustainable growth, by
implementing new technology and innovation in factories and work with the time.
Moreover, it needs to take aggressive sales promotion program to increase sales.
In the time it can be said that BSRM Steels Group of Companies has created leadership position
in steels field through its high quality products, services and research and development
programs. However, it should maintain its existing goodwill as well as improve its share market
to compete with the competitions.
Internship duration of two months was an industrial training program for me which was the
opportunity to coincide my theoretical knowledge in Commercial Departments working process,
operation with practical observations, I am hopeful that this internship program has certainly
broadened my theoretical knowledge, the practical observation of Commercial activities and
using documents in BSRM which will help me in my career life a lot in future.

76
4.4 Reference:
The available source that helped to piracy this report includes the following:
4.4.1 Bibliography:
 Annual Report of BSRM Steels Mill Limited (2016-2017)&(2015)
 Works with commercial department
 Collect Information’s
4.4.2Books and Articles Reference:
 Chowdhury, L, R. (2002) “A Text Book on Foreign Exchange”, 5thedition,
AnataProkashoni Bangladesh. Dhaka.
 Andley, K.K. &Matto. VI (1997). “Foreign Exchange Principles and Practices”, Sultan
Chand & Sons, New Delhi.
4.4.3 Web References:
 Email: mail@bsrm.com
 Website: www.bsrm.com
 www.comrnerce,govt.bd

Performance Evaluation of Activities of Commercial Department on Supply Chain Management of BSRM Steels Group of Companies

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