JINDAL STEEL & POWER LIMITED

Transcription

1 JINDAL STEEL & POWER LIMITED ORDER BOOKING & CREDIT POLICY FOR THE YEAR A. Objective : To have a dedicated Clientele, estimate Market potential and to draw up Production Plan on a continual basis. B. Eligibility: PRODUCTS HRC/PLATES/RUBM/MLSM RAILS/TMT MINIMUM BOOKING QTY(T) 6000t 1 CUSTOMERS WHO CAN BOOK PROJECTS,INFRA COMPANIES,ETC REMARKS WR COILS/ 3000T OEMS MOU RUBM/MLSM 6000t PROJECTS/OEMS/TRADE MOU HRC/PLATES 6000t OEMS,TRADE MOU CAST ROUNDS/HT SEMIS & Special Quality Note: 6000t TLT,SEAMLESS TUBE MFRS,REROLLERS 1. In WR Coils stress would be on Special Grades 2. In MLSM-stress on High Tensile grades MOU-All products or One or more in combination MOU 3. In Semis some quantities in MS/MMn grade may be agreed to as per requirements of PGCIL though it would primarily cater to HT and other Spl Grades C. TURNOVER DISCOUNT (TOD) Products Annual lifting(t) TOD(Rs/t) HRC/PLATES/RUBM/MLSM RAILS/Crane Rails/TMT >54001

2 MLSM/RUBM 3000t-6000t >11 WR COILS >9601 HR COILS/PLATES > ROUNDS/SEMIS >01 50 TOD will be paid on flat rate and not on incremental basis. D. CONSISTENCY INCENTIVE: Consistency 50/-pmt subject to monthly lifting of Minimum 5% of MOU booked quantity and Rs 75/-pmt on minimum 6.5% of MOU booking quantity. Consistency Incentive will be payable subject to successful completion of MOU quantity any time during the year and shall be paid along with TOD at the end of the MOU period. E. General Terms and Conditions: 1. All MOU s shall have duration of One year starting from to MOUs with Project Customers/Infra Companies can be entered into any time during the year for a period of 12 months 2

3 3. MOUs can be entered into with Big Companies/Companies of Strategic Importance with special terms/differential terms of Credit/TOD with the approval of DMD&CEO/CMD. 4. Single MOU can be signed with companies /firms having units/sites in different locations operating under the same name and Style. 5. Single MOUs can be signed with Group Sister Companies. 6. Supply may be allowed to any location /site of the customer including to Consignee. 7. Enhancement of MOU qty may be considered by JSPL for customers who have lifted % of MOU qty by In case there is no request for enhancement the maximum variation allowed will be +10% beyond which the TOD benefits will not be permissible. 8. Customer has option of reducing MOU qty by 10% by Customer should lift min 15% MOU qty in each quarter and minimum 40 % in first 6 months of the MOU period failing which the MOU stands terminated and no MOU benefits will be allowed. 10. The TOD & Consistency Incentives shall not be applicable to quantities sold under NCO s / Auctions and material returned under quality complaints. 11. Any variation in Statutory duties and levies Excise/ Service Tax, Railway Freight, VAT, Octroi/ Entry tax or any other duty as applicable and at prevailing rate on date of dispatch shall be payable by the customer. 12. Supply can be either on Direct dispatch or through Stockyard or both. 13. Quantity of supply in a month will normally be reckoned with reference to RR/Invoices raised during the month for Direct Dispatch/Stockyard deliveries. 14. MOU s will be signed for standard Tested qualities /special grades only. 15. Price: - Prices agreed upon shall be valid till execution of Order quantity subject to customer making the necessary financial arrangements in time. 16. TOD and Consistency incentive shall be paid within Ninety days after the expiry of the MOU period as above. The TOD shall be released after receipt of all dues & statutory forms (including C-Forms, ARE-1 Forms, I forms etc) for supplies made during the period of MOU. 3

4 17. Weighment :JSPL shall mention the number of pieces, packets, bundles in their Invoices. If the delivery scope in the Purchase Order is ex-jspl Plant/Warehouse the weight recorded in JSPL Invoices shall be final.if the delivery scope is F.O.R project site, if the number of pieces/packets/bundles tally with the number indicated in Invoice the weight indicated in Invoice is Final and payment will be made by customer accordingly. Any weight shortage has to be supported by weighment slip.. In case weight recorded at site is not mentioned in the receipt, then weight recorded by JSPL will be final and no deduction in payments in such cases. However, where the difference between invoice and actual weight recorded at site is within 0.5% of the invoice weight, Buyer shall release the payment for the invoice weight and no deductions shall be made. For supplies made from any of the JSPL Plants by Rail to the desired Public Booking Point, the entire quantity supplied by rake or a group of wagons is to be considered for computing the receipt of Materials at site and not on individual lorry/truck/trailer basis receipts, and the shortage is to be calculated accordingly. 18.Freight: JSPL shall be responsible for arrangement of transportation including transit insurance up to site if requested by customer. The cost of such transportation and insurance shall be charged extra at actual but excluding unloading component at site which shall be arranged by customer. JSPL shall provide initial rates for transportation costs for both projects. At customers request party transport may be allowed. In case the customer fails to place vehicles within 3 days upon intimation of readiness of material holding charges as fixed by Logistics Deptt will have to be borne by customer. 18. Quality Complaints: JSPL shall provide necessary test certificates with each consignment. In case the Materials is reported to be defective, the same shall be checked by QC department of both parties and shall be finalized accordingly in line with the prevailing QC policy of JSPL. 19. Inspection: Material is normally inspected by JSPL Quality team before shipment at JSPL works and dispatched. In case material are to be Inspected 4

5 by Customer /Customer s authorized representatives the same shall be arranged at JSPL Works. However,the cost of Inspection shall be borne by Customer. Test Certificates will be provided by JSPL as per Standards. 20. Force Majeure:- No Party shall be liable for damages because of failure of performance (except payment obligations) when the failure is due to acts of God, acts of civil or military authority, fire, flood, hurricane, tornado, explosion, earthquake, tidal waves, strikes, war (declared or undeclared), terrorism, piracy, sabotage, epidemics, acts of government (including import and export restrictions and embargos) or other cause beyond Party s reasonable control and without its fault or negligence and the MOU/Contract/Purchase Order shall remain suspended till cessation of Force Majeure condition. The Party claiming the Force Majeure condition shall give fifteen (15) days written notice to the other Party bringing to its notice the cause for the claiming the Force Majeure condition. Upon cessation of the Force Majeure condition, the Party shall endeavor to complete its obligations within a time frame as may be mutually agreed between the Parties and in case the Force Majeure conditions continues for more than one hundred twenty (120) days, the Parties shall discuss the further course of action for performance of their respective obligations. 21. Central Sales Tax Forms:- For direct despatches from any of the Seller s plant and from locations outside the State, Central Sales Tax Declaration Form C must be submitted for each invoice / Purchase Order for each Quarter. Such declared Form C must be submitted within one (1) month of completion of supplies for each Quarter. In case of failure / delay in receiving the Form C, the Seller reserves the right to recover the financial liabilities along with interest and penalty, if any, as may be levied by the respective Government agencies, by raising a Debit Note. 5

6 MEMORANDUM OF UNDERSTANDING (MOU) (To be signed on Plain Paper) This Memorandum of Understanding (MOU) is entered into this day of the Month and year between Jindal Steel and Power Limited (JSPL), and (name of customer) to enable JSPL to assess market potential,plan production and make supply of Steel materials from time to time. This MOU is valid for a period of one year with effect from to and shall cover the following categories and Quantities of materials with indicative Quarter wise breakup: CATEGORY Special Qlty (if any) Qtr-1 Qtr-2 Qtr-3 Qtr-4 Total That this is clearly understood between JSPL and (customer) that this MOU is not an enforceable contract and contract(s) will be entered between the parties to the MOU at the Region level for supply of Iron & Steel materials through Direct/Stockyard supply. ( ) ( ) Name and Designation of JSPL Executive Name and Designation of authorized signatory of Customer 6