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CRITERIA FOR SELECTION OF AWARD WINNERS
As per the decision of Committee of Administration of the Council in its 123rd meeting the Export Award will be determined for two categories namely SME (Small and Medium Enterprises) and other Non-SME category. The SME status will be with regard to Investment and not Turnover. The details of new categories of Award are given in the Council’s circular dated 21st November 2008
The weightage will be as under:
- 70% weightage for export turnover
- 20% weightage for growth in export in the previous year and
- 10% weightage for new market penetration
Weightage for Export Turnover:
Export by any company equivalent to the average export performance of the top 5 exporters would earn a maximum of 70 points and weightage was determined by dividing the average export volume by 70.
FORMULA:
- The Turn over of the top five companies were taken. Let it be “X-1, X-2, X-3-, X-4, X-5”
- The average turn over of these five top performing companies will be arrived at. Let it be “Y”
- Therefore the turn over to be achieved for getting one mark is equal to Y/70. A hypothetical situation of 5 companies is given below:
(Rs. in Million)
Sl.No.
Name of the Company
2006-07
2007-08
% Growth
New
Market
1.
A
850.00
870.00
2.35
1
2.
B
650.00
820.00
26.15
Nil
3.
C
630.00
663.00
5.24
Nil
4.
D
510.00
580.00
13.73
1
5.
E
450.00
470.00
4.44
2
Total
3403.00
51.91
- Total Turnover of Top 5 Companies is Rs.3403 Million. Therefore Y will be 3403/5 = Rs. 680.60 million. The turn over to be achieved for one mark equals Y/70 = ‘Z’. Therefore Z = 680.60/70 = 9.72.
Therefore for every Rs.9.72 million will get a weightage of one mark with a maximum of 70 marks.
By this the weightage for Turnover is much more rationale and logical in the sense that Companies with more than Rs.70 Crore would stand to get more weightage unlike in the past.
Weightage for Export Growth:
Similarly the growth percentage over the previous year of the top five performing Companies were taken. Their average is taken and the growth that would fetch them one mark was calculated. The total growth of the 5 companies is 51.91%. Therefore the average growth is 51.91/5 = 10.38. The growth to be achieved for getting one mark = 10.38/20 =0.52
Thus for every growth of 0.52% over the previous year, the company would get one mark in the category growth for a maximum of 20 marks.
If the average growth is negative, those who are having positive growth will get full 20 marks for growth.
If there was a tie between Companies at Sl.Numbers.1 & 2. Both got the same number of Marks when the formula for calculating the Export Award Ranking was applied. The company with higher Export Turn Over has been given the first prize.
Weightage for New Market Penetration:
The New Market is re-defind as, a market in any one of the focus counties identified by the Department of Commerce, Ministry of Commerce & Industry. The four focus country blocks are Common Wealth of Independent States (CIS), Latin American Countries (LAC), Africa and South East Asian Countries (ASEAN). Exports more than Rs.10 lakhs would earn a member One Mark under Focus Market exports. A maximum of One mark would be assigned for one focus country subject to a maximum of 10 marks for 10 focus countries within the four focus blocks.
SAMPLE CALCULATION OF DETERMINATION OF AWARD:
The details of top five companies and the growth are as follows:
Figures are imaginary and does not represent any company
(Rs. in Million)
Sl.No.
Name
of the
Company
2006-07
2007-08
%
Growth
New
Market
1.
A
850.00
870.00
2.35
1
2.
B
650.00
820.00
26.15
Nil
3.
C
630.00
663.00
5.24
Nil
4.
D
510.00
580.00
13.73
1
5.
E
450.00
470.00
4.44
2
Total:
3403.00
51.91
Ranking on basis of Calculation:
Sl.No.
Name
of the
Company
Calculation
Rank
1.
A
(870.00/9.72) + (2.35/0.52) + 1 = 70 + 4.52 + 1 = 75.52
4
2.
B
(820.00/9.72) + (26.15/0.52) + 0 = 70 + 20 + 0 = 90
1
3.
C
(663.00/9.72) + (5.24/0.52) + 0 = 68.21 + 10.08 + 0 = 78.29
3
4.
D
(580.00/9.72) + (13.73/0.52) + 1 = 59.67 + 20 + 1 = 80.67
2
5.
E
(470.00/9.72) + (4.44/0.52) + 2 = 48.35 + 8.54 + 2 = 58.89
5
Company A - 4th Position
Company B - 1st Position
Company C - 3rd Position
Company D - 2nd Position
Company E - 5th Position
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