An analysis of raw material importing from various stakeholder and the process of total outcome of PHP prospective.

CONTENTS
PHP INTEGRATED STEEL MILLS LTD.
Nizkunjara, Feni.
Faculty of Business
AdministrationUniversity of Science and Technology
Chittagong.
Assignment on
An analysis of raw material importing from various stakeholder and the
process of total outcome of php prospective.
Submitted to...
Syeda Nusrat
Lecturer, FBA, USTC.
Submitted by...
Name: A. Z. M. Mosla Uddin
Roll No: 906
Batch: 37
th
EMBA
Cell: 01939573099
Subject: Material Management

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An analysis of raw material importing from various stakeholder and the process of total outcome of php perspective.
Contents:
 Introduction
 Company Profile
 Factory Flow Chart
 Responsibility
 Import Materials purchasing procedure of PHP perspective
 Commercial Operations
 List of Raw Materials
 Pickling line
 Raw Materials & suppliers details of Pickling Line
 Cold Rolling Mill
 Rewinding cum Trimming Line
 Continuous Galvalume & Galvanizing Line
 Raw Materials & suppliers details of CGL
 Advantages and Disadvantages of Galvanizing & Galvalume Steel
 Conclusion

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Introduction:
PHP Family, one of the biggest manufacturers of cold-rolled steel in Bangladesh, has contracted
Belgium-based CMI (Cockerill Maintenance & Ingénierie) to build and install a high-capacity
push pull pickling line (PPL), a fully automated 6-HI cold rolling mill plus a state-of-the-art
continuous galvanising line (CGL) and two finishing lines for a new cold rolling mill facility.
The finishing lines will be supplied by an Indian affiliate of CMI.
The plant in question is based in Feni, a district of South Eastern Bangladesh, and will be
operational by mid-2019.
PHP Integrated Steel Mills is the name of the new complex, which is being built to satisfy growing
domestic steel demand and enable increased exports.
The PPL will be capable of processing up to 500kt/yr. of steel strip with a width of 1,670mm and
thicknesses ranging from 1.6mm to 4mm. The line’s maximum speed will be 150mpm and, says
CMI, it will be equipped with double Unicolor (for increased flexibility), a pre-wash and pre-rinse
section and an edge trimmer.
The single stand 200kt/yr. 6-HI cold rolling mill will, it is claimed, meet tight tolerances for strip
quality, flatness and thickness and boast speeds of up to 1,400mpm. It will process strip widths of
up to 1,370mm and will offer automated coil loading and threading. Other attributes include a
customised inspection station with online x-ray gauge, automatic flatness control, air-oil
lubrication of mill stand bearings, modular mill stand piping and level 2 automation.
A 200kt/yr. continuous galvanising line is designed to process galvanised and Al-Zn coated coils.
It features a high-performance cleaning section, horizontal annealing furnace and an air wiping
system equipped with a patented APC Blow stab cooling system, inline skin pass mill, tension
leveller and chemical anti-finger roll-coater.
There will also be a rewinding line and tension levelling lines with edge trimming facilities.
PHP has worked with CMI before. It contracted the company to equip its first CRM complex in
Chittagong, a coastal seaport and financial centre in the South East of Bangladesh.
CTL/ROLLFORMIN
G/CORRUGATION/
RIDDING
CRM
DELIVERY/CSD PICKLING LINE
CGL REWINDING
LINE
PHP INTEGRED
STEEL MILLS
LTD

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Company Profile:
PHP Integrated Steel Mill Ltd.
PHP, have set the pace of STEEL industry and holds the largest manufacturer of Cold rolled coils
(CR coils) and Galvanized Steel Coils/sheets/corrugated sheets in Bangladesh. Back in October
1999, PHP started its journey with FLAT STEEL Products by establishing PHP Cold Rolling Mills
Ltd. with a production capacity of 120,000 TPA and minimum thickness of 0.098 mm.
It is Steel, which gives PHP the identity of leading industrial conglomerate of Bangladesh. Situated
in the port city Chittagong, PHP Steel Complex was operating 4 (Four) separate industries that are;
PHP Cold Rolling Mills Ltd., PHP Continuous Galvanizing Mills Ltd., PHP NOF Continuous
Galvanizing Mills Ltd., and the captive power plant- PHP Power Generation Plant Ltd. Which
consists of 2 nos. gas turbines that produce 7.5 MW each. The total 15 MW power unit ensures
the uninterrupted operational capability of Steel Complex comprising of 2 Cold Rolling Mills, 3
Galvanizing Lines and Bell Annealing Furnaces and other auxiliary plants.
For better interest and achievement of administrative benefits and to minimize the administrative
costs and expenses of these companies, management decided to amalgamate 03 companies with
PHP NOF Continuous Galvanizing Mills Ltd., that sanctioned by the order of the High Court
Division of the Hon’ble Supreme Court of Bangladesh and has been come into action from 01-
December-2019. The current total production capacity is 0.25 Million TPA.
Vision of PHP:
To see beyond future, the spirit to do what no one has thought before and the belief that sincerity,
honesty and hard work supported with divine blessings and backed by good intentions can make
miracles, to bring Peace, Happiness & Prosperity (PHP).
Policies: -
INTEGRATED QUALITY, ENVIRONMENT, MANAGEMENT SYSTEM POLICY,
OCCUPATIONAL, HEALTH & SAFETY
PHP Integrated Steel Mill Ltd. commits to produce cold rolled and galvanized steel sheets of world
class quality in a safe, healthy and clean environment by involving employees with continual
improvements in system implementation, technological advancement, operational integration,
prevention of pollution & hazards maintaining.
PHP CRML and PHP NOF CGML have achieved the ISO 9001:2008 on Quality Management
System certified by Bureau VERITAS and certification by SNI of Indonesia. PHP steel products also
certified by BSTI of Bangladesh.

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Flow Chart of Factory:
PHP ISML
PICKLING
CTL/ROLL
FORMING/CORRUGATION/
RIDDING
CRM
Delivery/CSDREWINDING
CGL

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Responsibilities:
 Inventory Manager Job Responsibilities:
 Maintaining & updating records
 Counting materials, Equipment, Merchandise, or Supplies in stock.
 Compiling balance, Price & Cost reports.
 Manages inventory tracking system to record deliveries, shipments and stock levels.
 Evaluates deliveries, shipments and product levels to improve inventory control
procedures.
 Analyzes daily product and supply levels to anticipate inventory problems and shortages.
 Manages schedules of employees, deliveries and shipments to optimize operations.
 Communicates with inventory employees to meet business goals and address personnel
issues.
 Develops business relationships with suppliers and clients.
 Proposes strategies to reduce costs and improve procedures of supply chain logistics.
 Monitors demand and analyzes data to anticipate future supply and logistical needs.
 Reports on inventory levels, supply chain progress, procedural efficiency and personnel
issues to upper management.
 Manages the recruitment and training of new inventory employees.
 Contributes to team effort by accomplishing related results as needed.

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Import Materials Purchasing Procedure:
 Import Materials purchasing procedure of PHP perspective:
Purchase Requisition from department
↓↓↓
Present Stock checking
↓↓↓
Consumption History verification (Inventory Analysis)
↓↓↓
Management Approval
↓↓↓
Send Inquiry to supplier
↓↓↓
Received offer/Quotation from various supplier
↓↓↓
Price comparison
↓↓↓
Place Purchase Order-PO (Manual/ERP)
↓↓↓
Received Proforma Invoice-PI
↓↓↓
“TT” payment against PI or “LC” Open against PI
↓↓↓
Received materials in factory after shipment or after customs clearing
↓↓↓
Inspection the Goods at factory as per packing list
↓↓↓
Faulty goods return to supplier (if any)
↓↓↓
Make MRR

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Commercial Operations:
Import, Export, C & F, Customs and Port Formalities:
Introduction and Background
In the modern world no country is self-sufficient in her economy. She needs to import to meet the
demand necessary for their economic growth and export the surplus to other countries for which
she has comparative advantage. The transaction that leads to import and export of goods is called
Foreign Trade. Mere production of goods doesn’t satisfy human wants. To meet the needs, goods
from the producer must go to the consumers. The process of sending goods from producer to
consumer is called Trade. This trade within the country is Internal Trade and outside the country
is called International Trade.
Causes of Foreign Trade:
1) Difference in production capacity:
Production capacity differs in different countries and that causes Foreign Trade. All the
countries in the world are not equally rich in mineral resources nor the soil is conducive to the
growth of all kinds of agricultural products. On the other hand, no country has all the factors
of production. A country may have comparative advantage in producing a particular product.
For instance, Bangladesh has favorable factors for producing jute and Egypt for cotton.
Therefore, Bangladesh should concentrate on Jute and Egypt on cotton. In this way,
International Trade can occur Bangladesh and Egypt by exchanging Jute and Cotton for each
other resulting from difference in production capacity between the two countries.
2) International labor division:
Every individual according to his capacity and facility engage himself in those works where
he has relative efficiency. Accordingly, he uses his time and energy in producing product and
gets other product exchanged of his own to meet the necessaries. Thus creates a division of it
labor and that advocates for International Trade. Like every individual a country also produces
those goods that favors her and gets the product from other country which she needs
exchanging of his own. International trade thus takes place between the two sovereign
countries.
3) Modern Concept:
According to modern concept trade takes place only for the best use of technological
advancement. A country may have comparatively in a better position than other in technology.
Two countries may have equal physical resources but a country can exceed the other having
better technological progress. So applying technology a country may export more and more
goods leading to better economic progress.
Necessity of Foreign Trade:
International trade has taken shape for the following reasons:

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1) Exchange advantage: Generally internal price of product of a particular country is higher than
the price of same product of another country. Thus international trade takes place between the
two countries.
2) Consumers benefit: International trade helps a country who cannot produce a particular
product by importing the same where it is available.
3) Increase of production: International trade helps a country to produce more to export the
same to other country meeting her own needs.
4) Full use of natural resources: International trade helps extension of market by utilizing full
capacity of her natural resources.
5) Effective use of product: International trade facilitates effective use of product as surplus can
have the access into the foreign countries through exports.
6) Reduction of cost of product: Due to division of labor, cost price of product can be reduced.
7) International friendship: International trade helps build friendly relations with each other.
Prevalence of economic transaction between the two or more countries makes mutually
dependent on each other and it grows cordial relationship among the countries.
Relation between foreign trade and foreign exchange:
Like foreign trade foreign exchange is also within the purview of economics. Foreign exchange
helps getting right over another country’s currency through conversion. A foreign exchange market
is predominantly a whole sale, interbank market whereby buyers and sellers transact in convertible
currencies and there is no central place between buyers and sellers. Normally foreign currency
notes, traveler’s cheque, bank draft etc. are purchased and sold in a foreign exchange market. The
rate of exchange is determined by the interaction of demand and supply. When supply exceeds
demand rates of exchange become low and on its opposite side it becomes high. The rate at which
exchange takes the shape is the actual rate of foreign exchange. The component of foreign
exchange market:
1) Bank and its client.
2) Different banks in the same foreign exchange market.
3) Banks of different countries.
4) Commercial bank and central bank in a country.
5) Central bank of different countries.
Definition:
Letter of credit (L/C) can be defined as a “Credit Contract” whereby the buyer’s bank is committed
(on behalf of the buyer) to place an agreed amount of money at the seller’s disposal under some
agreed conditions. Since the agreed include, amongst other things, the presentation of some
specified documents the letter of credit is called Documentary letter of credit. In simple terms a
documentary credit is a conditional bank undertaking of payment. Therefore, a documentary credit
is
(1) the written assurance of a bank
(2) On the instructions
(3) Of the applicant (purchaser)
(4) To the beneficiary (seller)

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(5) To pay a specified amount
(6) In the agreed currency provided the beneficiary submit documents in conformity with the
documentary credit.
(7) Within the prescribed deadlines.
These documents are likely to include those required for commercial regulatory, insurance and
transport purposes such as Bill of Exchange, commercial invoices certificate of origin and
transport documents of a type appropriate to the mode of transport used.
Therefore, letter of credit constitutes a definite undertaking of the issuing Bank since it cannot be
amended or cancelled without the agreement of all parties thereto. Provided that the stipulated
documents are presented and the terms and conditions satisfied by the seller. It can be either
confirmed or unconfirmed depending on the desire of the seller.
Any arrangement, however named or described, whereby a bank (the “Issuing bank”) acting at the
request and on the instructions of a customer (the “Applicant”) or on its own behalf.
i) is to make a payment to or to the order of third party (the beneficiary) or is to accept
and pay bills of exchange (Drafts) drawn by the Beneficiary or
ii) authorizes another bank to effect such payment or to accept and pay such bills of
exchange (Drafts),
iii) authorizes another bank to negotiate, against stipulated document(s), provided that the
terms and conditions are complied with
Irrevocable Credit:
An irrevocable credit constitutes a definite undertaking of the issuing bank (since it cannot be
amended or cancelled without the agreement of all parties thereto), provided that the stipulated
documents are presented and the terms and conditions are satisfied by the seller. An irrevocable
credit can be either confirmed or unconfirmed depending on the desire of the seller. This sort of
credit is always preferred to revocable letter or credit.
Sometimes, letter of credits is marked as either “with recourse to drawer” or “without recourse to
drawer”.
Special Documentary Credit:
i) Transferable Credit: A transferable Credit is one that can be transferred by the original
beneficiary in full or in part to one or more subsequent beneficiaries. Such credit can be
transferred once only. Fractions of a transferable credit can be transferred separately,
provided partial shipment are not prohibited.
ii) Back to Back Credit: The back to back credit is a new credit opened on the basis of an
original credit in favour or another beneficiary. Under to back to back concepts, the seller
as the beneficiary of the first credit offers it as “security” to the advising bank for the
issuance of the second credit. The beneficiary of the back to back credit may be located
inside or outside the original beneficiary’s country.
iii) Anticipatory Credits: The anticipatory credit make provision for pre-shipment payment,
to the beneficiary in anticipation of his effecting the shipment as per L/C conditions.

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Red Clause:
When the clause of the credit authorizing the negotiating bank to provide pre-shipment advance3
to the beneficiary is printed/typed in red, the credit is called “Red clause letter of credit”.
Under the above mentioned clauses, the opening bank is liable for the pre-shipment advance made
by the negotiated bank, in case the beneficiary fail to repay or deliver the documents for
negotiation.
Green Clause:
The green clause L/C is one which is printed in green ink is an extension of Red clause and such
clause authorizes the negotiating bank to grant advance to the beneficiary for storage facilities at
the port in addition to the earlier stated pre-shipment advance.
Parties to a Letter of Credit:
There are a number of parties involved in a L/C and the rights & obligations of the different
involved parties also differ from each other.
The involved parties can be named below:
i) Importer/Buyer
ii) Opening/Issuing Bank
iii) Exporter/Seller/Beneficiary
iv) Advising/Notifying Bank
v) Confirming Bank
vi) Negotiating Bank
vii)Paying/Reimbursing Bank
Importer/Buyer is the person who requests/ instructs the opening bank to open a L/C. He is also
called Opener or Applicant of the credit.
Opening/Issuing Bank is the bank which opens/issues a L/C on behalf of the importer. It is also
called the importer’s/buyer’s bank.
Exporter/Seller/Beneficiary is the party in whose favour L/C is established.
Advising/Notifying Bank is the bank through which the L/C is advised to the exporter. It is a bank
situated in the exporting country and it may be a branch of the opening bank or a correspondent
bank. It may also assume the role of confirming and/or negotiating bank depending upon the
conditions of the credit.
Negotiating Bank is the bank which negotiates the bill and pays the amount to the beneficiary. It
has to carefully scrutinize the documentary credit before negotiation in order to see whether the
documents apparently are in order or not. The advising bank and the negotiating bank may or may
not be one and the same. Sometimes it can also be the confirming bank.
Paying/Reimbursing Bank is the bank or whom the bill will be drawn (as per conditions of the
credit). It is nominated in the credit to make payments against stipulated documents complying
with the terms of the credit. It may or may not be the issuing bank.
Steps involved in operation of documentary L/C
The following five major steps are involved in the operation of a documentary letter of credit:
i) Issuing
ii) Advising

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iii) Amendment (if necessary)
iv) Presentation, and
v) Settlement
Issuing a letter of credit
Before issuing a letter of credit, the buyer and seller located in different countries, concludes a
sales contract providing for payment by documentary credit. As per requirement of the seller, the
buyer then instructs the bank the issuing bank to issue a credit in favour or the seller (beneficiary).
Instruction/Application for issuing a credit should be made by the buyer (importer) in the issuing
bank’s standard form. The credit application which contains the full details of the proposed credit,
also serves as an agreement between the bank and the buyer. After being convinced about the
“necessary conditions” contained in the application form and “sufficient conditions” to be fulfilled
by the buyer for opening a credit, the opening bank then proceeds for opening the credit to be
addressed to the beneficiary.
Advising a letter of Credit
Advising through a bank is a proof of apparent authenticity of the credit to the seller. The process
of advising a credit consists of forwarding the original credit to the beneficiary to whom it is
addressed. Before forwarding, the advising bank has to verify the signature(s) of the officer(s) of
the opening bank and ensure that the terms and conditions of the credit are not in violation of the
existing exchange control regulations and other regulations relating to export. In such act of
advising, the advising bank does not undertake any liability.
Amendment of credit
Parties involved in a L/C particularly the seller and the buyer, cannot always satisfy the terms and
conditions in full as expected due to some obvious and genuine reasons. In such a situation, the
credit should be amended.
Presentation of Documents:
The seller being satisfied with the terms and conditions of the credit proceeds to dispatch the
required goods to buyer and after that, has to present the documents evidencing dispatching of
goods to the negotiating bank on or before the stipulated expiry date of credit. After receiving all
the documents, the negotiating bank then checks the documents against the credit. If the documents
are found in order, the bank will pay, accept or negotiate to the issuing bank. The issuing bank also
checks the documents and if they are found as per credit requirements, either
a) effects payment, or
b) reimburses in the pre-agreed manner
Procedure for opening L/C:
An importer desirous to have an import L/C limit must have accepted to the designated bank in
prescribed forms for sanction of margin, L/C limit etc.
For L/C limit following information’s are to be furnished by the applicant.

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 The full particulars of bank account.
 Types of business (Proprietorship, partnership, Limited Co.) in case of Ltd. Co. Balance
sheet of last 3 years and the names of directors.
 Historical back ground.
 Amount of limit required.
 Terms of payment: - whether the import documents would be retired against payment on
receipt or against acceptance or whether post import finance is required in the form of
MPI/LTR etc.
 Goods to be imported.
 Security to be offered.
 Re-payment schedule and source of fund.
 Other liabilities of the customer with the bank.
 Statements of Assets and liabilities.
 Account position (Balance)
 Trade License and import registration number with renewal date.
On receipt of above particulars, the import section of the bank will prepare credit report of the
concerned importer. The report should be collected from the previous banker of the party also.
Preparation of credit report:
Bank prepares credit report in prescribed forms. Character, capacity and capital which are
known as the three C’s of credit. Instead of the three C’s some mentions the three R’s i.e.
reliability, responsibility and resources. To these three C’s we may add two more C’s i.e.
collateral and conditions.
How a banker should obtain the necessary information regarding these fundamentals of credit?
No doubt, bankers have to make inquiries from those of their customers and other people and
inquired the report by the banker. Sometimes information’s are gathered by deputing marketing
officer or credit officer.
Position of the A/C:
Import section will see whether there is sufficient fund available in the account to cover the
margin to be sanctioned, commission, postage, cable or telex charge etc. If it is found O.K,
L/C will be sanctioned.
In all cases the sanction must be informed to the importer for acceptance. On receiving
confirmation from the client, the terms and conditions of the sanction are acceptable, the
subsequent documentation/ charge document are taken up.
Following papers/documents to be submitted by the importer before opening of the L/C:
a. Trade License (Valid)
b. Import Registration certificate (Must be kept in the bank custody).
c. In-Come Tax declaration with TIN.
d. Membership certificate.
e. Memorandum of Articles (In case of Ltd. Co.)
f. Registered deed (In case of partnership firm)
g. Resolution

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h. Photo one copy of the importer
i. VAT Registration Certificate
Bank will supply the following paper/documents before opening of the L/C.
i. L/C application form
ii. LCA form
iii. IMP form
iv. Murabaha agreement
v. Charge documents papers
vi. Guarantee form
The above papers must be duly filled in and signed by the part y and must be verified the
signature(s).
Maintenance of Register:
The sanction must be recorded in the following registers:
 Document execution register. All the charge documents must be recorded in this register.
 Limit register.
 Liability ledger.
L/C application:
For opening L/C the client is to submit to the bank an application in the printed format of the
designated bank. This is called L/C application form which is also an agreement between the
importer and the bank. The form is to be stamped under Stamp Act. in force in Bangladesh. The
importer must submit the LCA & IP and Indent or contract/purchase order/proforma invoice (duly
accepted by the importer) along with L/C application.
The L/C application must be completed/filled in and signed by the authorized person of the
importer giving the following particulars: -
i. Full name and address of the supplier or beneficiary and importer.
ii. Brief description of the goods.
iii. L/C value for US$, £ etc. (CFR value) which must not exceed the LCA
value.
iv. The unit price, quantity, quality of the goods.
v. Origin of the goods, port of loading and port of destination must be
mentioned.
vi. Mode of shipment (Sea, Air, Truck or Rail etc.)
vii. Last date of shipment and negotiation time (must not be beyond 30 days
from the shipment date).
viii. Insurance cover not number and name or the company.
ix. Tenor of draft (i.e. sight/usance/deferred etc.)
x. Mode of advising L/C (i.e. airmail/full telex/short cable etc.)
xi. Opening of L/C under UCPDC publication No. 500-ICC revision 1993.
xii. Whether shipment/transshipment is allowed

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xiii. Instruction to add confirmation if required
xiv. LCA number.
xv. Any other relevant information and instruction if any, must be mentioned
in the L/C application form.
To check the following:
a) To check H.S. Code if the description of goods tally with the H.S. Code as per H.S. Code
schedule and if the item is a banned or restricted item as per import policy and if papers
submitted as required for restricted item.
b) To verify the importer’s signature in Application and Agreement form LCA form, IMP
form and approach letter.
c) To check if pro-forma invoice or indent has any validity period, and if validity has been
expired or not
d) To check in the pro-forma invoice or indent, if there is any term which cannot be accepted
to the Bank as per Import Policy, Bangladesh Bank circular or Bank’s internal policy.
e) To check if Application and Agreement form has been filled in as per Indent/Pro-forma
Invoice, particularly if expiry date has been mentioned as per period of negotiation from
the date of shipment.
f) To see if Bangladesh Bank registration is required and arrange registration before opening
L/C.
g) To ensure Head Office approval and deposit of required balance in the current account of
the party and realization of margin with other charges on the date of opening L/C.
h) To check if Pre-Shipment Inspection (PSI) is to be carried out or not and ensure inclusion
of PSI clauses in the L/C and ensure sending all necessary papers including all amendment
copies to PSI company office.
i) To check if confidential Credit Report of beneficiary is to be required/to be obtained and
arrange to procure the report accordingly.
j) To check if the subject L/C is within the revolving L/C limit of the party, if any and send
proposal to Head Office, if not within the limit or beyond discretionary power of the
branch.
k) To obtain required charge documents.
l) Customer’s liability on L/C should be debited on the date of L/C opening with contra
voucher of credit on Banker’s liability on L/C.
m) To check if shipment period exceeds nine months in case of items except capital machinery
and seventeen months in case of capital machinery
n) To check if period starting from the date of opening L/C up to the date of expiry exceeds
first quarter and realize L/C commission accordingly.
o) To check and ensure that credit value does not exceed LCAF value and in case of tolerance,
LCAF value is in accordance with the tolerance.
p) While checking the particulars of L/C, the following should be checked minutely:
i) Address of applicant, beneficiary, advising bank and amount of the credit.
ii) Shipment and expiry date, insurance cover note and date

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iii) L/C number, LCAF number, H.S. code, Bangladesh Bank Registration number, IRC
number and Bangladesh Bank permission number and Indentor’s registration number
in case of Indent, Performa Invoice/Indent number and date.
iv) Description of merchandise as per Performa Invoice Indent and also as per Application
and Agreement.
v) Payment clause as per client’s instruction and Bank’s policy with exact number of
Nostro account or SWIFT address of Reimbursing Bank.
vi) Pre-shipment Inspection (PSI) clauses as applicable.
vii) Clauses inserted as required by Import Policy, Head Office instruction.
viii) If any clause is given without seeking any paper/certificate statement if cannot be
proved otherwise.
Procedure to be followed in case of lodgment of shipping documents?
1) Receipt seal should be given on the forwarding schedule mentioning date of receipt.
2) To check the documents preferably by the same day of receipt or within 48 hours of receipt.
3) In case of discrepancy (ies) is/are found, telex/fax/swift/telegram massage be sent to
Negotiating Bank immediately and reimbursement authority should/may be cancelled.
4) Message of receipt of documents should be intimated to the importer intimating the details
of discrepancy (ies) immediately.
5) Lodgment should be made immediately within 72 hours of receipt of documents at the
latest and payment should be made if not reimbursed earlier. In case of discrepancy, if
discrepancy is accepted by the applicant, lodgment be made and payment is to be made if
not reimbursed earlier.
6) PAD seal with PAD No. and date be given on each sheet of documents and intimation of
lodgment be made to the customer.
7) Original and duplicate sets of documents should be kept together in the file in the custody
of the In charge of Foreign Exchange Department, preferably under the joint custody of
two officers including In charge of Foreign Exchange Department.
8) Customer’s liability on L/C be adjusted and PAD liability is to be debited and created with
adjustment of L/C opening margin amount. In case of partial shipment, customer’s liability
on L/C be adjusted partially taking into consideration of B.C. selling rate of foreign
currency on the date of opening of the L/C.
Procedure to be followed for delivery of shipping documents?
For Assessment purpose:
1) Delivery of documents for assessment purpose may be given provided the client accepts
the discrepancy (ies) and make commitment for retirement of documents and submit
undertaking to the bank that if any defect is detected in terms of quality of goods, they
would not raise any objection as a pre-condition of not releasing the documents, since as
per UCP 600, Article 5 Bank does not deal with goods, services and or other performances
to which the documents may relate, rather bank details with documents only.

Page | 16
2) Seal particularly mentioning that, “only for assessment purpose not for delivery” be given
in Invoice, copy of transport document and other documents.
3) In case documents are received by any person other than the proprietor/authorized
signatories, documents can be handed over to the bearer of a letter if specimen signature
has been attested by the proprietor/authorized signatories, documents can be handed over
to the bearer of a letter if specimen signature has been attested by the proprietor/authorized
signatories.
For clearance of consignment.
1) Endorsement should be given in Invoice certifying the value of goods as per shipment and
credit value both in figure and words with seal and signature mentioning PA No. of
authorized officials of the Bank.
2) Endorsement should be given on the back of the original B/L and on any page in case of
Truck Receipt, R/R. Air way Bill mentioning to deliver to the order of the Importer or C&F
Agent accordingly in case of cash retirement or LIM/LTR basis.
3) Documents are to be dispatched on getting written intimation on the letter head of Importer
authorizing the representative for receiving the documents, if documents are to be received
by anybody other than proprietor authorized signatories.
4) Ensure realization of dues before delivering the documents for clearance of consignment,
even in case of copy documents delivered for clearance of goods from customs authority.
Realized amount may be kept in margin on L/C head or by creating LIM/LTR whatever is
applicable.
Characteristics & classification of Bills of Lading
Bill of Lading
Bill of Lading is a transport document. It gives the proof of shipment/carriage of goods from port
of loading to port of destination. B/L has 3 (three) functions: -
01. Evidence of contract:
It is an excellent evidence of contract but it is not a contract. The contract was made before the
B/L was given. However, when shipper/exporter has accepted a particular B/L, without protest,
for some time the B/L will be the contract.
02. As a document of Title:
The contract assigned by the endorsement is that which is expressed in B/L unaffected by any
alternations which may have been agreed upon between the shipper & the ship owner.
03. As a receipt:
a) As to quantity:
The amount stated in the B/L is prime facie evidence of quantity shipped and the ship
owner will deliver the full amount B/L generally contains description of goods and the
number of packages or weight.
b) As to condition:

Page | 17
The general statement in the B/L that the goods have been shipped “in good order and
condition” amounts to an admission by the ship owner that in so far as he had the
opportunity of judging the goods were so shipped.
Characteristics of Bill of Lading:
According to Guide to documentary credit operation – an ICC Publication – B/L should carry the
following information:
- It must be issued by a named carrier with date.
- Description of goods consistent with that in the credit.
- Identifying marks and numbers.
- The name of the carrying vessel.
- It stipulates the port of loading & port of discharge.
- The name of shipper, consignee and the notify party.
- Freight prepaid or to collect.
- Number of original issued to the consignor.
- It is signed by the master or authorized person.
Classification of Bill of Lading:
01. Trough of Transshipment B/L.
It covers the whole voyage from the part of shipment to final destination.
02. Short form/Blank back B/L:
B/L in which the detailed conditions of transportation are not listed in full.
03. Negotiable/order and Non-Negotiable/Straight B/L.
It the words “to order” are used under the space meant for consignee of the B/L is called
order/Negotiable B/L. On the other hand, if the goods are consigned to the specific party
omitting “to order” is called straight/Non-Negotiable B/L.
04. Stale B/L:
A B/L is considered stale where the goods reached to the port of destination long before the
arrival of relative B/L. Again a stale B/L may be defined which dated subsequent to the
shipment date or expiry date in the L/C.
05. Port or Custody B/L:
Bill issued by the port officer stating that the goods have been received for shipment.
06. On Board B/L:
It is issued after the goods have been received on board ship.
07. Clean and claused B/L:
B/L which acknowledge receipt of goods in apparent good order and condition is called clean
B/L. But on a B/L where it is somehow expressed that goods are not in order, it is called claused
B/L
08. “On Board”/shipped & Received for shipment B/L.
When the goods are actually received on board at the time of issuing B/L is called “On board
or shipped” B/L. On the other hand, when a B/L is issued before the goods are actually placed
on board of the ship, it is called received for shipment.

Page | 18
09. Freight paid & Freight collect B/L:
When freight is prepaid at the time of shipment or in an advance, the B/L is called freight
prepaid. If the freight is not paid in advance & it is to be collected from the consignee on arrival
of goods, the B/L termed is freight collect. Freight prepaid is meant for CFR value while freight
collect is meant for FOB value.
10. Charter party B/L:
A contract between ship owner & the charterer against which ship owner handed over the ship
to the charter for the carriage of goods from one place to other.
11. Liner party B/L:
It is issued by the shipping companies in respect of goods carried on regular line vessels with
scheduled runs, and reserved berths at destination.
12. Group age B/L:
Forwarding agents are permitted to “group” together from individual consignee & dispatch
them as one consignment, the ship owner will issue a group age B/L while the forwarding
agent will issue “House B/L”.
List of Raw Materials:
1. Pickling Line
 HR Coil
 HCL
2. Galvanizing & Galvalume Line
 Zinc Ingot (SHG)
 Zinc Alloy
 Silicon Aluminium Alloy
 Premix Zinc Aluminium Alloy Ingot
 Antimony Ingot
 Tin Ingot

Page | 19
Pickling line:
Mainly pickling of coil is used to remove corrosion or rust, which is produced on coil surface due
to interaction of coil surface with air and moisture. This may form an oxide layer on coil Surface,
which may cause of reduction of metal and improper surface finish.
Pickling in a solution of hydrochloric or sulphuric acid. The acid dissolute the oxide scale from
the strip surface according to the reaction: Fe2O3 + 6HCl = 2FeCl3 + 3H2O.
Rinsing and passivation of the strip. At this stage the acid residuals are washed by water from
the strip. Passivation film is formed on the strip surface providing corrosion protection.
Drying. Edge Trimming. Oiling.
Specification:
Type of Line Push - Pull.
Material Hot Rolled M.S.
Strip Thickness 1.6 mm to 4.0 mm..
Strip Width 700 mm to 1670 mm.
Coil O.D. 2250 mm.
Coil Wt. 35 MT.
Pickling Cascade with 1 / 2 / 3/ 4 / 5
Tanks.
Rinse Multi Stage Cascade Hot Rinse.
Pickling Medium HCL.
Line Speed 150 mpm
Capacity 6 Lacks Ton/ annum
Additional Features: - Online Side Trimming. Oiling.
Roll Bending.
Quick Work Roll Change.

Page | 20
These pickling lines can process strips varying from 1.0mm to 12.0mm thick and 200mm to
2000mm wide. Picking lines process one coil at a time, therefore eliminating the need for joining
strips. This process allows immense flexibility of operation & also ensures easy operation and
maintenance. As accumulators are not required in these lines, thus making them cost effective in
nature. These pickling lines are capable of producing between 200,000 to 1,000,000 Tons per
annum.
Hot Rolled Slitter:
This process is performed for removing unwanted material, giving fatness, side cutting to get
desired shape or width, remove side bending, defects like notches etc.
Various process involved are-
• Loading of coil
• Feeding of coil
• Setting of cutter
• Trimming
• Recoiling
• Removal of coil
• Stepping & labelling of output material
• Storage of output material
Slitting Lines
Slitting Lines, Slitting Lines have been successfully put into operation in well-known production
plants & service centres. These lines have the capability to meet client's demand for minimum
burr, no damage to the surface, high production capacity etc., to the fullest. The high automation
level of the lines reduces the need for operator attendance and ensures economy of operation.
Characteristic Features:
• High automation level to achieve high economic efficiency
• Minimum burr on strip edges due to high running accuracy of knife arbors
• No manual interferences required as the edge scrap baller is pit mounted
Additional Features:
o Quick Slitter Head Change with Standby Slitter Head.
o Dual speed lines to cover wider range of thickness.

Page | 21
Raw Materials & suppliers details of Pickling Line:
 Item (HR Coil)
 Suppliers & Quantity:
- Nippon Steel- 65497.29MT
- JSW Steel Ltd- 9656.026MT
- Chung Hung Steel Corporation- 9526.59MT
- Baoshan Iron & Steel Co- 9847.89MT
- Posco International Corporation- 6961.930MT
- China Steel Corporation- 2829.245MT
-
 HCL
 Suppliers & Quantity:
- New Sun Chemical- 3000 MT
65497.29
9656.026
9526.59
9847.896961.932829.245
104318.971
Raw Materials of Pickling
Suppliers Name: Nippon Steel
JSW Steel Chung Hung Steel

Page | 22
Cold Rolling Mill:
There are two types of Cold Rolling Mills operates, which are 6 Hi Cold Rolling Mill. Pickled Hot
Rolled Coils of higher gauges are reduced to required thinner gauges by passing through the Mills.
In 6 Hi Mill the reduction achieved is up to 0. 12mm.The computer controlled rolling process
ensures closure thickness tolerances and perfectly flat strips.
The installed production capacity of 6 Hi Mill is 2 Lack Tons /annum per annum.
Cold Rolling Mills Our cold rolling mills are specifically designed for breakdown rolling of
ferrous/non-ferrous sheet & strip. The rolls are manufactured from alloy steel, having high
hardness of about 60-62 HRC. The produced steel is considered to be "full hard". Cold-rolled steel
products begin as hot rolled pickled and oiled coils. These coils are "cold-reduced" by passing
them through a cold reduction process on a reversing mill under high tension and pressure.
Mill Specification:
Type 6HI.
Material HR to CR Coil
Input Thickness 1.6 MM to 4.0 MM
Output Thickness 0.12 MM to 2 MM.
Width 700 to 1350 MM.
Coil O.D. 2100 MM.
Coil Wt. 27 MT.
Mill Speed 1400 MPM.
Mill Capacity 2 Lacks Tons/Year
 Hydraulic Automatic Gauge Control.
 Thickness Gauges.
 Roll Bending.

Page | 23

Page | 24
Rewind cum Trimming Line:
Built from the basic elements of the compact trimming line, the modular line mechanically trims
the edges through chip removal process. Any desired dimension is possible depending on strip
width and thickness. The number of tools operating simultaneously is variable. It is frequently
used in the welded tube production.
Specification:
Type of Line Rewinding Cum Trimmer.
Material CRFH
Strip Thickness 0.12 mm to 0.80 mm.
Strip Width 700 to 1350 mm.
Coil O.D. 2100 mm.
Coil Wt. 27 MT.
Line Speed 500 mpm.
Capacity 150000 tons/Year
Additional Features: Two - speed arrangement.
Coil build-up Lines:
The coil build-up lines are used for side-trimming of the strips and also provide the coils with
leader strips that can be reused for optimization of the yield. With suitable inclusion of welder,
these lines can be used for building up bigger coils from small coils, with roll-able weld.

Page | 25
Continues Galvalume & Galvanizing Line:
Galvalume & Galvanizing Line: -We offer hot-dip galvanizing lines. The lines manufactured by
us are furnace type, heat to coat type or wet flux type. Efficient air-knives control the thickness of
coating with great precision, either through manual settings or through automatic coat control
systems. The materials can be pickled hot rolled steel, cold-rolled steel of CQ, DQ quality & full
hard in nature.
Type of Line Continuous Hot Dip Galvanizing
Cum Galvalume Line
Material C.R. full hard.
Strip Thickness 0.12 mm to 0.80 mm.
Strip Width 700 mm to 1350 mm.
Coil O.D. 1800 mm.
Coil Wt. 15 MT.
Line Speed 180 mpm.
Coating 60 - 250 gms/m2.
Capacity 150000 Tons/Year
• On Line Skin Passing.
• On Line Tension Leveling.
• Double Recoiler on Exit Side
 Raw Materials Suppliers of CGL
Item, Suppliers & Quantity:
 Zinc Ingot (SHG)
-Welcome Trading Co- 793.184MT
-Tokyo Kinsho CO- 1188.831MT
-Posco International Corporation- 201.793MT
 Zinc Alloy
-Posco International Corporation- 196.727MT
 Silicon Aluminium Alloy
-Woo Jin Enterprise Co- 1567.87MT
-Sorin Corporation- 49.973MT
 Premix Zinc Aluminium Alloy Ingot
- Woo Jin Enterprise Co- 209.95MT
-
 Antimony Ingot
-New Siam Mineral Resources Co- 11.6MT
 Tin Ingot
-G- Steelmet Pte Ltd- 5.490MT

Page | 26
Advantages and Disadvantages of Galvanizing & Galvalume Steel:
Since its introduction, hot-dip galvanized steel has been widely used in various industries such as
construction and home appliances. Due to the continuous expansion of the scope of use, the
product's formability and various properties of the steel sheet are continuously improved, and the
resulting aluminum-zinc plated steel sheet is superior to the hot Galvanized Steel Sheet in some
properties. Aluminized zinc-plated steel sheet is a cold-rolled hardened steel sheet with various
strengths and thickness specifications as the base material, and is obtained by hot dip plating. Its
coating composition is composed of 55% aluminum, 43.5% zinc, 1.5% silicon and appropriate
trace elements.

Page | 27
1.Processing performance
In terms of processability, aluminized zinc steel sheet is similar to hot-dip galvanized steel, which
can fully meet the requirements of rolling, stamping, bending and other forms of processing.
2.Corrosion resistance
The test is under the premise of hot-dip galvanized steel and aluminized zinc steel with the same
thickness, coating and surface treatment. Aluminized zinc has better corrosion resistance than hot-
dip galvanized, and its service life is 2-6 times that of ordinary galvanized steel.
3.Light reflection performance
Aluminized zinc has twice the ability to reflect heat and light than galvanized steel, and its
reflectivity is greater than 0.70, which is better than 0.65 specified by the EPA Energy Star.
4.Heat resistance
Ordinary hot-dip galvanized products usually do not exceed 230 degrees, and 250 degrees will
change color, while aluminized zinc plate can be used for a long time under 315 degrees. In the
300-degree environment for 120 hours, Baosteel's heat-resistant passivated aluminum-zinc plated
steel has a much lower color change than aluminum and aluminum-plated plates.
5.Mechanical properties
The mechanical properties of aluminized zinc steel sheet are mainly manifested in yield strength,
tensile strength and elongation. Ordinary DC51D grade 150g / sq. Galvanized steel plate generally
has a yield strength between 140-300mpa, a tensile strength between 200-330, and an elongation
between 13-25. The grade of DC51D + AZ aluminized zinc-plated aluminized zinc steel plate with
a yield of 150 g / square is between 230-400mpa, the tensile strength is between 230-550, and the
extension rail is between 15-45.
Because aluminized zinc is a high-density coated alloy steel, in addition to the above advantages,
there are some defects:
(1) Welding performance
Due to the increase of mechanical properties, the surface of the inner substrate has a better coating
density and a relatively high manganese content. Therefore, the aluminum-zinc coating cannot be
welded under ordinary welding conditions and can only be connected by other parties such as
rivets. In terms of welding, hot-dip galvanized steel performs better without welding problems.
(2) Applicability of tide temperature concrete
The composition of the aluminized zinc coating contains aluminum, and the aluminum component
is prone to chemical reactions in direct contact with acidic wet concrete. Therefore, it is not very
suitable for floor boards.

Page | 28
(3) Coating thickness and steel plate thickness restrictions
Most of the domestic aluminized zinc production units are converted from hot galvanized units,
and there are certain restrictions on the thickness of aluminized zinc steel plates. The thickness of
the steel plate is limited to 0.27 to 2.5. In terms of coating, it can only achieve a minimum of 30
grams per square and a maximum of 220 grams per square.
Galvalume Steel:
It worth considering the advantages of hot galvanizing in comparison with the most popular
methods of metal treatment – painting and cold galvanizing. The advantages of hot galvanizing
are:
 Galvalume is new technology of coating with more product life as compared of
Galvanizing.
 Coating of Almunium 55%, Zinc 43.5% & Silicon 1.5%.
 Light coating weight & less cost of production life is 4 & 5 time more than Galvanizing
 Minimum coating 90 gram/m2.
 Double corrosion protection - cathodic and barrier.
 High coating strength.
As you can see this method shows rather impressive quality indicators. Here are some
disadvantages.
Galvanizing Steel:
As in case of advantages the disadvantages are considered in comparison with the methods of
metal treatment mentioned above:
 Traditional way to protect steel products.
 More widely used in house construction.
 Minimum coating standard 120 gram/m2
 Coating of Zinc- 99%, Al- 0.3%, Antimony- 0.1%, Tin- 0.1%
 Cost of production is high as company to GL but market demand is high.
Disadvantage:
 Impossibility of metal treatment manually, industrially only;
 Rather complex technological process;
 Impossibility of galvanizing the element separately without dismantling it;
 Deformation of thin structures because of heating;
 Damaged coating cannot be repaired only the whole structure galvanization is required;
 The transportation of structure to the treatment site is needed.
Even despite the insignificant disadvantages this method was previously and remains today one of
the most relevant methods of metal treatment.

Page | 29
Conclusion:
Process Flow Diagram of PHP ISML:
A dynamic model of the cold-rolling process has been presented. It consists of coupled sub models
of the mill’s electromechanical system and the deformation zone and allows most quite accurate
analysis of the process taking into account the nonstationary and stochasticity of its parameters.
The dynamic model allows solving various problems in designing efficient technologies for the
production of thin wide cold-rolled strips.
This study was carried out in the framework of project part of State Assignment No.
11.3943.2017/PCh of the Ministry of Education and Science of the Russian Federation.
Cold Rolling MillContinuous PicklingLine Rewinding Delivery/CSDCGL

Page | 30

An analysis of raw material importing from various stakeholder and the process of total outcome of PHP prospective.

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