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TERMS AND CONDITIONS FOR TRANSPORTATION OF CERAMICS & VITRIFIED TILES

TO VARIOUS LOCATIONS IN INDIA

1. Material to be transported is Ceramics & Vitrified Tile packed in corrugated boxes.

2. You will collect the list of destinations from our Logistics department and accordingly place the truck at
our plant for transporting tile to these destinations on a daily basis.

3. We shall inform about requisite number of trucks and arrangement should be made to provide trucks as per
following. The requirement regarding capacity of the truck and whether Full body or half body will be
clearly informed to you and trucks should be placed accordingly.

Information regarding Trucks placement Trucks to be placed on/by

If informed during 10AM~2PM Same day latest by 11 PM

If informed during 2PM~8PM Next day latest by 2 PM

Penalty for non-placement of trucks

If you fail to place trucks within 24 hours of information to you then the company may impose penalty upon
you and/or trucks will be placed from open market and difference shall be debited to you for the same. You
will have to inform regarding placement or non-placement of truck within 8 hours of receipt of truck
placement plan.

4. The transporter will have to collect the material from our following plant & transport the same to specified
location as directed in loading slip/Invoice.

1. Kajaria Ceramics Ltd, Gailpur plant, 19 Km stone, Bhiwadi-Alwar Road Distt. Alwar, Rajasthan.

2. Kajaria ceramics Ltd - Sikandrabad, A-27 to 30, Industrial Area, Sikandrabad, Dist. Bulandshahr.

3. Kajaria ceramics Ltd - Malutana, 500 mtr ahead from Alwar higway, Village Malutana, Thanaghazi, Dist.
Alwar.

5. All trucks should be in good road worthy condition only. The truck body should be strong enough to carry
the load up to the destination. In case of any deviation from the above, the same shall be informed
specifically.

(2)

In case of unsuitable truck body, such trucks will be returned without any charges payable for the same and
you shall immediately send another truck on the required specification. In case truck will cancelled/returned
back it will be treated as non-placement of truck.

6. All trucks should be cleaned prior to loading.

7. You should keep and hold the materials in safe custody & protect and prevent from any
contamination/damage during transit and take all responsible care for unloading the same at the place of
delivery. In case of damage of any sort to material due to the transporters negligence, value of material will
be recovered from the transporter.

All the trucks should compulsorily carry the following documents:

Valid Drivers Licence.

Valid Insurance Certificate.

Valid PUC Certificate.

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Vehicle Registration documents.

In case any or all documents are missing the truck is liable to be returned back.

8. Loading of Material will be in KCL Scope & unloading at destination will be in customer scope. The
loading of goods will take place between 6 AM to 10 PM on all working days, and on public holidays on
case to case basis.

9. You should give necessary directions to your drivers to hand over the original and duplicate copy of
invoice, together with the customer copy of Lorry Receipt (LR) and other accompanying documents at the
destinations on delivery of goods to enable them to avail CENVAT/VAT Credit. Any loss incurred by us due
to non-submission of relevant documents by you at the destination will be recovered from your bills.

(3)

10. Any loss or damage to goods or assets in our plants/warehouse or any injury or damage to human beings
due to your personnels fault inside Company premises shall be recovered from transporter.

11. The transporter has to ensure that no other material is loaded on to our material in the trucks in transit. If
it is found that the truck was loaded with other materials the transporter will be liable to penalized and any
damage/loss to our goods due to the same will also be recovered from you. Repeated incidents will lead to
termination of contract and forfeiture of security deposit.

12. Before taking the loaded trucks out of the factory, you have to ensure that all the relevant documents/road
permits are filled correctly and any incomplete documents received can be returned back to billing section.
Due to deficiency in documents if any, statutory agency penalizes in transit, KCL will not be responsible for
the same. It is your responsibility to ensure that all documents necessary for statutory purpose are collected
and available with the driver during transit. Once truck dispatch from plant its responsibility of transporter to
deliver material in safe condition at customer end.

In case your driver loses documents like invoices/road permits etc. in transit then you will lodge an FIR with
the jurisdictional police station and submit us a copy of the same to enable us to issue duplicate copies.

13. The material should be completely covered by the transporter with 2 nos. of good quality tarpaulin to
protect from rain water. The transporter shall arrange to keep good quality rope and tarpaulin with every
truck at his cost. The transporter shall take all the necessary care to transport it safely and in dry condition
and any damages/loss to tiles due to rain shall be recovered from the transporter.

14. In case the truck is detained by the Financer or confiscated by any statutory authority due to reasons
attributable to the transporter penalty @ Rs. 1000 per day will be imposed.

15.

a) All truck drivers should have mobile no. In case of any problem in transit it must be informed to our
Commercial department and the Customer immediately. Driver should give advance intimation to the
customer

(4)

prior to reaching destination to enable the customer to arrange unloading of the truck.

b) Transporter will have to ensure that their drivers, cleaners, etc. must follow safety guideline of Company
while entering Plant.

16. The transporter may be required to make multi point deliveries within a given destination for which
additional payment as agreed shall be made. However if the diversion occurred after clearance of goods and
is more than 25 Kms from the location mentioned in invoice then additional payment will be done on prorate
basis. The diversion should be authorized by Commercial department only.

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17. The tiles boxes are loaded vertically and rest on sidewalls of the truck. The side body of the truck
provided by you should be strong enough to carry the load up to the destination. Please note our major
requirement of trucks will be on full body type. Due to weak body of the truck, if truck body bulges out
during transit due to weight of the tiles or breakdown of truck, the transporter will arrange for shifting the
material in another truck safely in the presence of an Insurance surveyor approved by us or Company
employee on transporter cost. If the material is damaged during the said trans-shipment the cost of such
damage goods will be recovered from the transporter.

In case of accident of lorry in transit it may be required to brought back material in the plant. In such cases
freight will be paid for only up to accident location. Value of the damages will be assessed & decision to
recover damages will be made on receipt of materials at our plant.

18. Weighment will be done at our weighbridge, which will be treated as final. If for any reason our
weighbridge is not working, the weighment will be done at third party weighbridge approved by KCL or our
system weight will be considered.

19. Transshipment

a) Transshipment en-route till the final destination is not allowed. A penalty of Rs. 5000 per truck shall be
levied if full load truck is transshipped except in case of vehicle breakdown/accident which too

(5)

with prior approval of KCL. A repeat case of transshipment without reasonable cause will lead to
cancellation of contract.

b) Any break down/accident of truck en-route shall be intimated in writing within 24 hours of such break
down. Information on break down is essential in writing.

c) In case of accident proper documents must be submitted to commercial department while reporting the
factory gate along with accidental material.

20. Minimum weight Guarantee will be as follows :

6 tyre trucks - 9 MT

10 tyre trucks - 15 MT

12 Tyre trucks - 20 MT

21. Penalty for late delivery of consignment of customer :

a) The transit time as agreed excludes the days of vehicle loading at plant and the date of vehicle reporting at
consignee end.

b) Sunday/Holidays will not include for both detention and delay in transit. The liability to pay liquidated
damages in terms of this clause may be waived at the sole option of KCL if proper and genuine information
is given by the service provider timely in writing about cause of delay, such as accident, natural calamities,
or abnormal circumstances.

If the truck does not reach the destination within the specified time, the company may impose a reasonable
penalty on the transporter.

22. Detention Charges

(a) If truck is detained at customer end a reasonable amount of detention may be paid to the transporter on
mutual understanding.

(b) Above Detention will be calculated after 24 hours of reporting at customer end. The reporting must be on
working hours (9 am to 5 pm) and reporting on holidays will not be taken in account. Detention charges, if
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any per truck/consignment wise to be billed separately.

(6)

For truck/container detained at Plant beyond 24 hours of reporting, a reasonable detention charges may be
paid on the sole discretion of the management.

More than 20 MT Wt. truck = @Rs. 1500 per day.

(b) Above Detention will be calculated after 24 hours of reporting at customer end. The reporting must be on
working hours (9 am to 5 pm) and reporting on holidays will not be taken in account. Detention charges per
truck/consignment wise to be billed separately.

For truck/container detained at Plant beyond 24 hours of reporting, detention charges shall be paid @ Rs. 500
per day.

23. Price basis

The rates quoted by you should not include detention or unloading charges.But should be inclusive of other
charges such as dala charges, varai charges etc.

Octroi Charges are to be paid by the customers/consignees. However the transporter may be required to pay
on their behalf/which may be reimbursed by Customer/Consignee to the transporter against payment/receipt
at the time of delivery.

a) The rates are to be quoted on perton basis subject to minimum of 9 MT, 15 MT, 16 MT, 20 MT, 21 MT, 28
MT and 30 MT as the case may be for different-different destination. However if the transporter is required
to carry a tonnage which is higher than 9 MT/15MT/16MT/20MT/21MT/ 28MT /30MT then payment will
be released on pro rata basis.

b) In case of material rejection or damage at destination due to your own logistics/transportation problem,
freight is payable on settlement of claim with the dealer/consignee onlyand if rejected material due to
breakage or wet in transit is returned back to plant, no freight will be paid for the same.

24. In case the truck does not deliver the goods or there is inordinate delay in delivering of the goods to the
customer due to fault of the transporter then damages for delayed delivery shall be recovered from the
transporter.

(7)

25. The Company (KCL) and its dealers want to track all the Trucks from plant to destination for which
proper GPS system should be there in lorriesto be provided by you for transporting goods.

a) a. Each Transporter should provide GPS enabled Vehicles only.

b) b. Following GPS models are recommended.

S.No. Model

1 SVT1202/ FM1202

2 SVT1200/ FM1200

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3 SVT1110 / FM1110

4 SVT1100 / FM1100

5 SVT2200 / FM2200

6 ECO4

7 TK-103

8 TK-06

9 GT-06

10 i-Core

If you any of the above mentioned GPS device already installed into your vehicle. Please contact Kajaria
administration and they will help to integrate your vehicle on KAJARIAs tracking Panel.

c. If you have any other GPS model in your vehicle then it is mandatory for each transporter to provide
tracking login details (tracking URL, login id and password) for each vehicle before sending to the plant.

d. Transporter can also get new GPS installed from KAJARIA. Please contact to plant administration to get
the GPS installed.

26. GST

Please mention GST no in your offer as well as all other documents such as GR, freight bills etc.

(7)

DECLARATION

I /We have not availed the credit of duty paid on input or capital goods used for providing this transporting
service under the CENVAT credit rules 2004 or I/We have not availed the benefit under notification GOI No.
12/2003 dated 20.06.03

27. Diesel Escalation

Fuel Price reference will be based on the prevailing fuel price in Dharuhera (Haryana) on the date of bidding.
During the contract period, the freight rate revision due to fuel price variations will be based on the moving
fuel price reference as below:

Up to 3% cumulative increase or decrease: There will be no change in the transportation rate.

More than 3% cumulative increase or decrease in a contract period: Any fuel price changes would lead to
a revision as per the following calculation.

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%age change in freight =40% X Percentage Change in Diesel Rate in nearby states i.e. Rajasthan, Haryana,
Punjab, Chandigarh,U.P., Uttarakhand, Himachal and local stations.

------------do..60% for remaining states.

Fuel component is considered to be 40% for destination of the state of Rajasthan,Haryana, Punjab,
Chandigarh, U.P., Uttarakhand, Himachaland local stations and 60% for other statesof the total freight rate.

Frequency of Review: as & when HSD rate is increased/decreased. Effective date: immediate.

(8)

Example

Rev Fuel Price Fuel rate Cumulative Increase or Remark

No Reference percentage Decrease in
Change freight rate

1 50.00 50.00 NIL NIL

2 51.00 50.00 2.00% NIL

3 51.50 50.00 3.00% NIL

4 52.50 50.00 5.00% 2.00% Raj., HR., Punjab ,

Chandigarh, U.P., U.K.,
3.00% Himachal and local stations.

. Other states.

5 51.00 52.50 -2.85% NIL Fuel Price Variation<5% of

New reference.

6 50.50 52.50 -3.80% -1.52% Raj., HR., Punjab ,

Chandigarh, U.P., U.K.,
-2.28% Himachal and local stations.

Other states.

7 50.50 New Fuel Price reference.

The rate shall be valid for the period of contract and no escalation of any nature shall be entertained except
for increase/decrease in diesel price as explained above.

28. Contract Period :

The contract will be for a period of 3 months from Aug, 2017 to next qtr bidding. However for the
transitional period if any between the end of previous quarter and the date of finalizing the bid of next
quarter you may require to continue the supply of lorries on the previous quarter rates.

29. Payment Terms

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You will raise bill on Weekly basis. Payment shall be released after 30 days by way of NEFT Transfer, after
receipt of bills together with proper acknowledged copy of LR with Rubber Stamp of the purchaser & date of
receipt subject to taxes deducted at source. Your freight bills along with necessary supporting should be
submitted within 30 Days from the date of dispatch. No interest shall be paid on delayed payments.

(9)

30. Transit Shortage/Losses due to accident of lorry

Reason and explanation for shortage in transit should be provided by the transporter in writing to KCL and
claim for shortage to be bear by transporter.

KCL may arrange for Inspection of the damaged goods from a surveyor authorized/approved by us or by
authorized person/employee of the company.

You will take instructions from our Commercial Department regarding disposal, diversion or return to our
factory with regards to the damaged goods. You will make necessary arrangements to return the salvaged
goods to our plant and the one side freight if any for returning the material from the place of accident to our
plant will be paid by the Company.

However, if it is observed that the goods have reached in wet condition at the customers premises, claim
value of material shall be recovered from the transporter.

Photographs of the accident truck (one of the photographs should compulsorily bear the vehicle registration
number) should be submitted to factory commercial department.

31. Earnest Money Deposit

a) The transporter shall submit deposit of Rs. 5,00,000/- (Rs. Five Lac Only) for Gailpur, 2.5 Lakh for
Sikandrabad and 2.5 Lakh for Malutana plant respectively. by way of D/D before registration/bidding. The
interest (8%) will be paid on security amount for contract period only.

b) If contract is awarded to the transporter then the same EMD shall be converted as part of security deposit.

c) Existing transporters whose security already deposited will be returned back and a fresh security of above
described amount respective to plant to be submitted before bidding.

(10)

32. In case TDS is applicable the same will be deducted as per statutory rules and necessary certificate will
be issued. We shall issue consolidated TDS certificate at the end of each Financial Year.

33. The EMD submitted by unsuccessful bidders shall be returned to them within one month from the date of
completion of the bidding process. No interest will be paid in case of any delay.

34. In case during negotiations you accept our rate, terms & conditions and subsequently refuse to accept our
work contract the EMD submitted by you will be forfeited.

35. Every transporter who is awarded the contract should depute their representative to place truck against
indent given both in Ceramics & Vitrified for managing daily operations at our factory.

36. Further after release of Work Contract if you fail to place the trucks on regular basis the Security Deposit
will be forfeited & contract will be terminate.

37. Discipline is to be maintained within Factory Premises. In case of any damage to our property or
machinery, same will be recovered from your bills.

38. After finalization of award, transporter & KCL will execute an agreement incorporating the terms &
conditions of Work Order.

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39. Termination of Work Contract :

a) In case work contract is awarded to you, the same is liable to terminated by giving 30 days notice without
giving any reason, of whatsoever nature. No Compensation of any nature will be paid by us due to premature
termination of this contract.

b) We reserve the right to review the rate & terms and condition and if required opt for alternative transporter
during validity of the order if your performance level/placement level goes down beyond our expectation
level.

(11)

c) Destinations or States where your performance is found to be poor will be deleted from your contract and
the same will be awarded to other transporters.

40. IN WITNESS WHERE OF, the parties hereto have caused this Agreement to be executed by their
respective authorized officer effective from..

41. Disputes

In case of any disputes, differences between the parties hereto, the court at TijaraDistt.Alwar (Raj.) shall
have jurisdiction to entertain the suit to the exclusion of all other courts.

For KAJARIA CERAMICS LTD. :

(AUTHORISED SIGNATORY) :

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