A

Summer Training Report

On

A STUDY OF SUPPLY CHAIN MANAGEMENT AND INTERNATIONALMARKETING at Pacific fire controls

Submitted in partial fulfillment of the requirements of

Master of Business Administration (MBA)

Amity University, Gurgaon (Manesar)

Under the Guidance of: Submitted by:

Mr. Gaurav Arora Singh Rahul Sharma

Assistant Professor MBA- IB: 3rd Semester

Amity Business School Roll. No.: A50002014006

Amity Business SchoolAmity UniversityGurgaon (Manesar)SESSION 2014 – 2016

Pacific Fire controls TRAINING CERTIFICATE

PREFACE

As a part of the MBA curriculum and in order to gain practical knowledge in the field of the

management, this report was prepared on the topic ‘A STUDY OF SUPPLY CHAIN

MANAGEMENT AND INTERNATIONAL MARKETING at pacific Fire Controls The

basic objective behind doing this project report is to gain knowledge regarding the domestic

documentation work that is required to be prepared for a startup firm and also having some

discussions and meeting with various officials of other company like the vendors, clients,

clearing and forwarding agents and warehouse service providers.

In this project report all the documents that have prepared are attached in the annexures for

review. Doing this project report helped me enhance knowledge regarding doing meetings

with the professionals and gave me an idea about the documents to be prepared after

starting a new company in order to conduct smooth business operations without the occurrence

of any disputes in the future.

ACKNOWLEDGEMENT

This training at Pacific has been a very insightful and learning but exciting experience. The

satisfaction and euphoria that accompany the successful completion of this project would be

incomplete without the mention of the person who made it possible and whose constant guidance

and encouragement heads all efforts with success.

I extend my heart felt gratitude to the industry guide Mr. Mr. Rakesh Arora (Firm Founder,

an Engineer (B.E. Civil) from SVNIT Surat) who believed in my capabilities and gave me the

opportunity to complete my internship in his esteemed organization.

I would also like to give great thanks to my mentor Mr. Gaurav Arora Singh, Asstt. Professor

ABS, who constantly supported me and provided guidance during my internship period. A

very great thanks to all the Faculty members of Amity Business School, especially those of

International Business course who encouraged and supported me in the completion of this

project.

It is a great pleasure to extend my heartfelt thanks to everybody who helped me through the

successful completion of this project.

Rahul Sharma

MBA IB

LIST OF FIGURES/ TABLES

FIGURE NO. FIGURE TITLE PAGE

Figure 1.............................................. Pacific verticals...................................................................3

Figure 2...............................................Organizational Structure......................................................5

Figure 3...............................................Home Lighting Systems......................................................7

Figure 4...............................................Solar pumps.........................................................................7

Figure 5...............................................Solar Water Heating Systems..............................................8

Figure 6...............................................LED indoor portfolio............................................................8

Figure 7...............................................LED outdoor portfolio..........................................................8

Figure 8...............................................SWOT analysis of company................................................9

Table 1.......Roadmap set by Indian Government to achieve 100GW solar power..........................2

CONTENTS

CHAPTERS PAGES

TITLE PAGE

SUMMER TRAINING CERTIFICATE

PREFACE

ACKNOWLEDGEMENT

LIST OF FIGURES/ TABLES

Chapter 1 Introduction...................................................................................................................1

1.1 Overview of the Industry...........................................................................................1

1.2 Profile of the Organization........................................................................................2

1.2.1 Management team........................................................................................4

1.2.2 Core Values..................................................................................................5

1.2.3 Clients...........................................................................................................6

1.2.4 Products..............................................................................................................7

1.3 Competition Information...........................................................................................9

1.4 SWOT Analysis.........................................................................................................9

Chapter 2 Objective and Methodology..........................................................................................10

2.1 Methodology..............................................................................................................10

Chapter 3 Literature Review..........................................................................................................11

Chapter 4 Data analysis.................................................................................................................12

4.1 Supply Chain practices in Pacific Fire Controls........................................................12

4.2 Documentation Work.................................................................................................12

4.3 Vendor Selection Criteria..........................................................................................14

4.4 Memorandum of Understanding................................................................................16

4.5 Exhibition Visit..........................................................................................................16

4.6 Import Issues..............................................................................................................16

4.6.1 Outsourcing and Buyer Identification...........................................................16

4.6.1 Clearing and Forwarding Agent...................................................................17

4.6.2 Letter of Credit.............................................................................................18

4.6.3 Incoterms......................................................................................................19

4.6.4 Some other terms..........................................................................................22

Chapter 5 Findings and Recommendations...................................................................................23

5.1 International Level..................................................................................................23

5.2 National Level.........................................................................................................24

Bibliography..................................................................................................................................26

Annexures..............................................................................................................................................27

Annexure 1.........................................................................................................................28

Annexure 2.........................................................................................................................30

Annexure 3.........................................................................................................................31

Annexure 4.........................................................................................................................32

Annexure 5.........................................................................................................................33

Annexure 6.........................................................................................................................34

Annexure 7.........................................................................................................................35

Annexure 8.........................................................................................................................36

Annexure 9.........................................................................................................................40

Annexure 10.......................................................................................................................43

Annexure 11.......................................................................................................................44

Annexure 12.......................................................................................................................47

Annexure 13.......................................................................................................................51

Annexure 14.......................................................................................................................52

Annexure 15.......................................................................................................................53

Annexure 16.......................................................................................................................54

Annexure 17.......................................................................................................................58

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CHAPTER 1 - INTRODUCTIONThis sections includes a complete introduction about the company, its profile, products portfolio,

core values, clients, competition information, SWOT analysis, during its journey of the last two

years.

1.1 OVERVIEW OF THE INDUSTRY AS A WHOLE

Established in 1987, Pacific Fire Controls is a pioneer and a diversified leader in the field of

Passive Fire Protection & Evacuation Systems, serving customers with fire security equipments

and services for buildings, industries, Shopping malls, hospitals etc with a dedication to protect life

and property from fire hazards 24 hours a day.

They are the manufacturers of Fire Doors & distributors of renowned fire safety and evacuation

products like Coopers Fire & Smoke Curtains UK, Evac + Chair UK & many more...

The commercial office is located in a well associated area of Karol Bagh. The manufacturing plant

is located in one of the most prominent industrial sector.

Our Fire Doors are manufactured as per BS: 476 part 22 & IS 3614 part & are duly approved by

CBRI, Roorkee. All products offered by us strictly follow the applicable norms and standards to

their respective country of Origin and are acceptable in Indian market.

We seek partnership that adds value to our every employee and customer.

Our friendly and professional staff is expertise to fully meet the individual requirements & needs of

the clients

2015 has been a year of growth for Indian Solar Industry. At the end of an eventful 2014, the

Ministry of New and Renewable Energy (MNRE) announced that India’s total grid-connected

solar capacity crossed 3 GW in December 2014. A total of 886 MW was added during the

calendar year 2014, which made it another year of less than 1 GW installation. The MNRE

started the process for allocation of 3 GW of solar projects under the state specific

programme. Several Central Public Sector Undertakings (USA) and government organizations

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are also in the process of setting up solar plants. 3 southern states – Karnataka, Andhra

Pradesh and the newly carved Telangana – allotted 500 MW of solar projects each, and if all

goes well, a majority of these projects will be commissioned by end of 2015/early 2016.

Apart from that, several projects that were started in 2014 will be completed in 2015. These

projects include the 750 MW of solar projects allotted under the Phase 2, Batch 1 of JNNSM,

allocation under the state policies of Uttar Pradesh, Punjab and Madhya Pradesh. Overall, it is

expected that around 2 GW of solar capacity will be added in 2015.

While the 2 GW growth prospects give immediate relief to the industry, what excites and

sometimes overwhelms the industry is the ambitious revision of solar targets by the new

government. The government is proposing a 5-fold increase in the JNNSM targets and is

planning to revise it from 20 GW of grid-connected solar to 100 GW by 2022 or even earlier.

The government has nonetheless gone ahead and released the year-wise roadmap to achieve the

goal of 100 GW by 2020:

Table 1: Roadmap set by Indian Government to achieve 100GW solar power

Overall, 2015 promises to be a good year for the Indian solar sector and the start of a golden

era for solar if all the government is able to convert good intentions to reality.

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1.2 PROFILE OF THE ORGANISATION

In order to provide the requisite focus to the Renewable Energy Business, Pacific Fire

Controls. was incorporated as an entity in 2013. The company generates the ideas,

technologies and solutions that meet the planet's demand for smarter, cleaner & better energy by

creating a sustained value.

Pacific is structured around 3 business verticals:

i. Pacific solar solutions vertical:

The company’s Solar energy based solutions are designed to last long and serve a variety of

purposes, under the brand name “Pacific Solar”.

Solar Lighting portfolio - Solar led lanterns, Solar home lighting systems, Solar street

lighting systems.

Solar Thermal portfolio - Solar water heating systems (ETC & FPC)

Solar Miscellaneous portfolio - Solar water pumps, Solar road flashers, Solar signages

and much more.

The core strength lies in making need-based quality products and providing prompt after-

sales service.

i. Pacific energy consulting services vertical:

The company is committed to provide our clients with all the information and

resources you need to ensure you have access to high quality consulting services

for residential, commercial, industrial applications especially solar specific &

LED specific.

ii. Pacific LED solutions vertical:

PACIFIC offers various solutions for LED, both for Indoor and Outdoor applications.

PACIFIC Led Portfolio comprised of:

LED Bulbs: 5 Watts, 7 Watts, 10 Watts

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LED Panels: Of various configurations (edge lit / back lit)

LED Downlighters: Of various shapes, sizes and Watts

LED Street Lights: Of different Wattages

LED Focus Lights: Of all configurations

PacificSOLAR SOLUTIONS

PACIFIC LED SOLUTIONS

PacificENERGY CONSULTING SERVICES

Pacific Fire Controls and energy Solutions

5

Moreover, Pacific is flexible to provide any customization for any type of LED products.

Figure 1:Pacific Verticals

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1.2.1 MANAGEMENT TEAM

MR. RAKESH ARORA

The Managing Director and CEO of Pacific Fire controls who guides the company in

strategy and promotions. With innovative ideas he oversees the marketing activities & heads the

product development. He is passionate about Solar Energy and envisions it to take a lead in

Renewable Energy Sources in India. The potential for Solar Energy to become a trillion-watt

energy market in the world excites him and it has driven him to start this venture with much zeal

and enthusiasm. He is also a member of IEEE.

PROF. K.R. CHARI

He is the Advisory Board Member. Former Vice President Development, Unique Computing

Solutions India (A subsidiary of Unique Computing Solutions, USA). Currently he is Senior

Professor at Birla Institute of Management Technology (Greater Noida) and is also Chief

Mentor of Center for Innovation and Entrepreneurship Development CIED. His area of expertise

are: Energy Management, System Design, Value Engineering.

R&D TEAM

Pacific do have a team of skilled and experienced workforce, which works diligently to offer

an excellent SOLUTION AND SERVICES to our clients. Pacific team is dedicated to deliver

a range of products that can meet the dynamic needs of the clients in this ever-changing era.

Our team comprises the following members:

Quality Analysts

Sales Managers

Operations Managers

Packaging experts

Warehousing experts

Skilled employees

Supervisors

(Prashant Sharma)M.D/CEO

R& D MarketingDept.

OperationsDept.

FinanceDept.

HR Dept. TechnicalDept.Packaging

MarketingHeadSales

FinanceManager

(Vinod Jain)

HRManager

Pooja Sharma

AssistantManager

Supervisor(Amit Kumar)

AssistantManager

AssistantManager(Jagdish Kumar)

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Figure 2:Organizational Structure

1.2.2 CORE VALUES

OUR VISION

To be a globally recognized organization that provides innovative, cost effective and the best

green energy solutions to our customers. The company has been serving industries, commercial

complexes, mall of private as well as government sectors in the field of Active and Passive Fire

Protection throughout India and abroad since 1987.

OUR MISSION

To continually strive to provide the highest quality, most reliable, and affordable green energy

products and services globally by applying our scientific, technical and management

expertise for the benefit of people and the planet.

QUALITY POLICY

Customer is center for what we do. We enhance value to customer by innovating high

performance solar products and “build in” industry-leading quality consistently. We strive

continually to improve customer satisfaction.

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INTEGRITY: We work with highest ethical standards and demonstrate a behavior that is honest,

decent and fair. We are dedicated to the highest levels of personal and institutional integrity.

INNOVATION: We constantly support development of newer technologies, products, improved

processes, better services and management practices.

COMMITMENT: We set high performance standards for ourselves as individuals and our teams.

We honor our commitments in a timely manner.

EXCELLENCE: We are committed to deliver and demonstrate excellence in whatever we do.

TEAM WORK: We work together as a team to provide the best solutions and services to our

customers. Through quality relationships with all stakeholders we deliver value to our customers.

OUR PHILOSOPHY

Our clients should know us, as a solution provider, they can trust with technology to lead them

into the future. Our system is based on our client’s real needs, not the latest industry fad or

buzzword. We offer solutions that make sense for our customers, now and in the future.

1.2.3 CLIENTS

i. Residential

ii. Commercial

iii. Hospitals & healthcare facilities

iv. Large corporate & SME business houses

v. Industrial

vi. Petrol pump stations

vii. Telecommunication towers (BTM)

viii. Government

ix. Remote village electrification

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x. Retail

xi. FMCG

xii. Logistics

xiii. Automative

xiv. Builders & developers

xv. Colleges

xvi. Universities

xvii. Schools

xviii. Architects

xix. Interior designers

xx. Banking services

xxi. Government buildings

xxii. RWA

xxiii. Government contractors

xxiv. Hospitals

xxv. Electrical consultants

xxvi. Lightning consultants

xxvii. Carbon footprint services

xxviii. Corporate offices / Shopping complexes

xxix. Industrial units

xxx. Government Buildings / Courts / Jails

xxxi. Townships / depots

xxxii. Housing societies

xxxiii. Reports / guest houses / hotels

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xxxiv. Farm houses / bungalow.

xxxv. Defence establishments

xxxvi. Rural electrification

1.2.4 PRODUCTS

Figure 3:Home Lighting Systems Figure 4: Solar Pumps

EVACUATION CHAIR Figure 5: Solar Water Heating System

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Figure 6: LED indoor portfolio

Figure 7: LED outdoor portfolio

STRENGTHSExisting player in the marketMarket well segmentedRestructuring based on real life issuesAggressive Marketing Strategy

WEAKNESSLow brand visibilityFailure to penetrate the market first time aroundRequirement to build a new teamLimited capacity to launch a big marketing campaign

Business engine for fiscal growth

OPPURTUNITIES• Value for money an essential component inmarket scenario

THREATCompetition from existing player in similarmarketCompetition from new entrants in the market

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1.3 COMPETITION INFORMATION

Various competitors prevail in the market for PACIFIC based on the marketing of Led lights.

These are:

1.4 SWOT ANALYSIS

Figure 8: SWOT Analysis of the company

i.

ii.

Philips

Osram

viii.

ix.

Oreva

Moser Baer

iii. Havells x. Surya

iv.

v.

Wipro

Bajaj

vi.

vii.

Eveready

SYSKA

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CHAPTER 2 - OBJECTIVE AND METHODOLOGY

The primary objectives of the project are:

i. To prepare the documentary framework for Indian market for a startup company to be used

in supply chain management and for day to day business operations.

ii. To study the role of Clearing and Forwarding agents and Warehouse service providers in

providing the services that can be availed by Pacific for its involvement in the EXIM

business in the near future.

iii. To identify the buyers in the international market.

2.1 METHODOLOGY

The methodology adopted for the completion of the project will be totally based on the secondary

data provided by the company. The secondary data will be used to find the various formats and

the information to be used and included respectively for the preparation of the documents.

The secondary data will also be used to find out the questions and matter of the discussion to be

used while doing meeting with the officials.

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CHAPTER 3 - LITEATURE REVIEWThe popularity of the supply chain concept has been stimulated from many directions including

the quality revolution, notions of materials management and integrated logistics, a growing

interest in industrial markets and networks, the notion of increased focus and influential

industry-specific studies. The term ‘supply chain management’ was originally introduced by

consultants in the early 1980s and has subsequently gained tremendous attention. Analytically, a

typical supply chain is simply a network of materials, information and services processing links

with the characteristics of supply, transformation and demand. The term ‘supply chain

management’ has not only been used to explain the logistics activities and the planning and

control of materials and information flows internally within a company or externally between

companies. It has also been used it to describe strategic, interorganizational issues, to discuss

an alternative organizational form to vertical integration, to identify and describe the

relationship a company develops with its suppliers, and to address the purchasing and supply

perspective. Various subject areas such as purchasing and supply, logistics and transportation,

marketing, organizational behavior, network, strategic management, management information

systems and operations management have contributed to the explosion of SCM literature.

In order to address the various import issues of a business, the various types of Incoterms,

preparation of documents, modes of payments and the different types of officials involved in the

executing the EXIM business have been studied. A thorough study of these issues can help a

business which is new to the EXIM in order to identify the appropriate choice among these terms

and get well versed with the different policies included in the execution of the export orders.

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CHAPTER 4 - DATA ANALYSIS

This section includes the secondary data collected for various sources over the internet. This data

will be used to create various documents for the supply chain management and for the

international marketing purposes.

4.1 SUPPLY CHAIN PRACTICES IN Pacific Fires controls

Various supply chain practices are followed in Pacific starting from procuring products from

vendors, adding value by green packaging, providing insurance and transportation facilities and

finally delivering quality products to the clients.

These practices include documents preparation, various policies, terms and conditions regarding

various operations and finally signing Memorandum of Understanding (MOU) with various

business entities. These practices help Pacific to carry out smooth and hindrance free day to day

operations.

Pacific will also market the solar and LED products at international level. For this purpose, the

company has its IMPORT EXPORT CODE (IEC) and will be availing the facilities of clearing

and forwarding agents along with the preparations of documents required in EXIM business.

There are various INCOTERMS involved which Pacific have to keep in mind while engaging in

the import export business.

4.2 DOCUMENTATION WORK

There are various documents required which are required at various stages while marketing the

solar and LED products to the clients. In the absence of these documents, there can be

communication gaps which can give rise to the disputes between PACIFIC and the other party

involved in the business. Two copies of ach document has been prepared (for Delhi and UP

Office). These documents include:

i. Quotation: A formal statement of promise (submitted usually in response to a request for

quotation) by the potential supplier to supply the goods or services required by a buyer, at

specified prices, and within a specified period. It may also contain terms of sales and

13

payment and warranties.

ii. Purchase Order: This is the document by which PACIFIC will place orders according to

its requirement describing the various products to be purchased from the supplier. This

document will include product description, their unit prices and the total amount to be paid

by PACIFIC . Some terms and conditions are also included in this PO which the

supplier has to comply with thereby eliminating any arising of disputes.

iii. Delivery Challan Form: It shows the issue of items or goods by PACIFIC. When

these goods are sold to the customer, then delivery challan is prepared consisting the

description of the goods, its unit price and the total quantity to be delivered along with

their total amount. It is very useful for accounts department because accounts

department will raise the sales invoices on the customers only when it is confirmed by the

sales department. Finally, the accounts department matches all the items according to the

purchase order of customers and delivery challan. By doing this practice cross check of

all the transactions are done. The chances of errors are minimized due to this practice.

iv. Dispatch Note: A dispatch note is a short note which will be used by PACIFIC to

inform the buyer that the goods he has ordered have been sent. This document contains

vital information about the items ordered and other relevant order details.

v. Annual Service Contract Proposal: This form will be used by PACIFIC to sign the

contract with its clients for providing the annual service and maintenance of the products

delivered by PACIFIC. This includes the clients’ details and the total charges involved in

providing the services.

vi. Service completion report: This report will be filled by the PACIFIC official, who will

be visiting the client’s place for providing service to any fault faced by the client, after the

completion of the report. The report includes detail about the description of the fault,

the remedies applied and the overall customer feedback for the service obtained.

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4.3 VENDOR SELELCTION CRITERIA

Selecting a vendor is probably one of the most crucial activities PACIFIC must undertake. So

selecting a potential vendor means selecting a partner in business that will be trustworthy to work

in a professional as well as profitable manner. Thus, it is important to choose a company that can

supply the PACIFIC’s requirements now and for the near future.

Some of the factors should be kept in mind while selecting a vendor. These are:

i. Years in business

PACIFIC need to know that the company is established and ready to service its

requirements.

ii. Ability to constantly supply products or services.

PACIFIC need its products and services on a regular basis. A vendor that has supply

issues will affect PACIFIC’s ability to supply its customers.

iii. Flexibility to allow changes in orders or product lines.

All businesses need to change their orders sometimes. So if the vendor heavily penalizes

PACIFIC for doing this, that vendor is not the appropriate one.

iv. Substantial catalogue of products or range of services.

This not only indicates an established vendor of size, but also means that PACIFIC can

have flexibility in its ordering. As the business grows, PACIFIC can keep with the

same vendor. It also means that PACIFIC is able to minimize the number of vendors it is

dealing with.

v. Testimonials and references.

These are valuable if PACIFIC can check that the vendor is reliable and as they claim to

be.

vi. Sustainability and financial stability.

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vii. Prices.

Discounts on the price list are always negotiable, but they are an important part of selecting

a vend

viii. Delivery times.

PACIFIC need to know that deliveries can be made where and when it wants them to be

delivered.

Thus considering the above mentioned criterion, PACIFIC has developed a document

named Procurement policy.

A successful vendor selection process also needs to be established in order to do business with

best available vendor right from the beginning.

i. An Evaluation Team analyzes the business requirements and prepares the necessary

policies. The team publishes these documents to the areas relevant to this vendor selection

process and seek their input.

ii. List of Possible Vendors is compiled who will be able to deliver the material, product or

service. Write a Request for Information (RFI) to be sent to the listed vendors. Evaluate

their responses and Create a "Short List" of Vendors.

iii. A Request for Proposal and Request for Quotation is prepared and sent to the short listed

vendors.

iv. After getting various proposals, the preliminary review of these proposals is done. The

proposals with benefit to the company are selected and are then approached for further

negotiation.

v. The final stage in the vendor selection process is developing a contract negotiation

strategy. In this the company lists its priorities along with the alternatives. The time

constraints and the benchmarks are defined. The potential liabilities and the risks while

making the contract are assessed. The negotiation is done according to the suitability of

both the company and the vendors.

vi. The prepared Procurement Policy is presented to the selected vendor that will enable the

vendor to understand the terms of the company while procuring from any vendor.

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4.4 MEMORANDUM OF UNDERSTANDING

A Memorandum of Understanding (MoU)is a formal agreement between two or more parties.

Companies and organizations can use MOUs to establish official partnerships. It is often used in

cases where parties either do not imply a legal commitment or in situations where the parties

cannot create a legally enforceable agreement. Thus PACIFIC has prepared many MOUs

with suppliers, distributors, courier service providers, mentors and colleges.

4.5 EXHIBITION VISIT

I visited an exhibition on 2nd July, 2015 in Pragati Maidan namely INDIAN MATERIAL

HANDLING SHOW &LOGISTICS SHOW and INDIA WAREHOUSING SHOW 2015. A

large number of companies (around 150) exhibited in the show some of which are JASO India,

Tat Blue Scope Steel, Stallion Systems and Solutions, Honeywell, Godrej etc. These companies

included manufacturers of conveyors, warehouse structures and facilities, packaging material,

forklifts, racking systems, barcode scanners and printers, tracking devices, automated doors,

warehouse or factory under-roof insulation materials and some were Clearing and Forwarding

agents providers. In all, the exhibitor companies are the large manufacturers of all types of

material handling and warehouse service providers that will be needed in supply chain

management and for exports and imports.

4.6 IMPORT ISSUES

These issues like Incoterms, Letter of Credit, Clearing and Forwarding Agent services, CBU,

CKD, SKD, are important for any company engaged in the EXIM business. Thus PACIFIC

should keep in mind these issues and review them properly before stepping into an EXIM

business.

4.6.1 OUTSOURCING AND BUYER IDENTIFICATION

Since PACIFIC is a service providing company, it is procuring from the OEM suppliers. For the

procurement of more innovative products such as solar panels, solar backpacks, solar caps,

solar chargers, solar curtains, LED street lights, LED garden lamps which are in turn to be sold to

17

the international clients is done through the outsourcing from the Chinese suppliers from the e

18

portal Alibaba.com.

For this, a mail including the company’s profile and the international procurement policy has

been sent in order to receive the quotation from the Chinese vendors. Then according to the

vendor selection criteria, the appropriate vendor is selected.

The buyer has been identified by screening out the countries which are deprived of power and

have recently suffered from any natural calamity.

So, PACIFIC is focusing more on the power needy nations rather than exporting to all the

countries. PACIFIC has plans to make clients in most of the South African nations and

recently earthquake suffered nation, Nepal

PACIFIC will also be outsourcing with the help of Customs House Agents (CHA) in order to

do transactions of any business relating to the entry or departure of conveyances or the import

or export of goods at any Customs station.

4.6.2 CLEARING AND FORWARDING AGENTS

Clearing and forwarding (C&F) agents are authorized by the Government of India to not only

help the importers and the exporters but also to bring it to the notice of the custom officials

about any irregularities in the customs rules and regulations updated by the customs, importer

and exporter. The clearing agent should be converse with customs act rules and regulations.

The essential services which PACIFIC can avail from C&F agents are:

i. Warehousing facility for the solar and LED products before their transportation to the

docks/port.

ii. Transportation of solar and LED products to the docks and arrangements of warehousing at

the port.

iii. Arrangement of containers required for shipment of the solar and LED products.

iv. Booking of shipping space or air freighting.

v. Advising PACIFIC regarding the relative cost of sending its products by different

airlines/shipping lines as well as selection of the route of the flight/ sea route.

vi. Making arrangements for shipment of goods to be on board the ship/plane.

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vii. Arranging for marine/cargo insurance of the shipment.

viii. Preparation and processing of shipping documents required for custom clearance.

ix. Arranging for various endorsements/issue of certificates from various agencies.

x. Providing assistance in the packing of the consignment.

xi. Making arrangements for local transportation of goods to the port/docks.

xii. Forwarding the documents to PACIFIC for their negotiation with the bank.

xiii.

The following services can be provided by the leading C&F agents at the specific request of the

PACIFIC:

i. Providing warehousing facilities abroad at least in some of the major international markets in

case the importer refuses to take the delivery of the goods for any reason.

ii. Providing assistance to bring the goods back to India if the situation so demands.

iii. Providing assistance to locate the goods in case of shipment is misplaced or the cargo is

stranded at some port.

iv. Making arrangements for assessment of damage to the goods to title claim with the insurance

company.

Thus for smooth and timely shipment of cargo, PACIFIC should appoint a suitable Clearing and

Forwarding agent.

4.6.3 LETTER OF CREDIT (L/C)

It is a written commitment to pay for the shipped consignment, by an

iŵpoƌteƌs bank (called the issuing bank) to the exporter's bank(called the accepting

bank, negotiating bank, or paying bank) i.e. PACIFIC’s bank.

L/C guarantees payment of a specified sum in a specified currency, provided PACIFIC meets

precisely-defined conditions and submits the prescribed documents within a fixed timeframe.

These documents almost always include a clean bill of lading or air waybill, commercial invoice,

20

and certificate of origin.

21

To establish a L/C in favor of PACIFIC (called the beneficiary) the buyer (called the

applicant or account party) either pays the specified sum + service charges up front to the

issuing bank, or negotiates credit. L/C is a formal trade instrument and will be used usually

where PACIFIC is unwilling to extend credit to the buyer. In effect, a L/C

substitutes the creditworthiness of a bank for the creditworthiness of the buyer.

Since the unambiguity of the terminology used in writing a letter of credit is of vital importance,

the International Chamber Of Commerce (ICC) has suggested specific terms (called Incoterms)

that are now almost universally accepted and used.

A letter of credit is a non-negotiable instrument but may be transferable with the consent of the

applicant i.e. the importer. Although L/C comes in numerous types, the most basic ones are:

i. Revocable-credit letter of credit

ii. Irrevocable-credit letter of credit, which comes in two versions

iii. Confirmed irrevocable letter of credit

iv. Not-confirmed irrevocable letter of credit.

Procedure under letter of credit at sight:

Opening a Letter of Credit at sight is common practice in the export business. Under sight LC,

the payment of export proceeds will be sent to PACIFIC’s bank by buyer’s bank on receipt of

the original shipping documents as per the terms and conditions mentioned on LC.

i. Once after completion of export customs clearance procedures, PACIFIC has to prepare all

the required documents as per the terms and conditions mentioned in the L/C.

ii. These documents will be submitted in PACIFIC’s bank, along with the original LC. The

bank will verify all documents and make sure, the documentation is in order as per LC

conditions.

iii. These documents will be sent to buyer’s bank and in turn to the buyer after necessary

approval in documentation by PACIFIC’s bank.

iv. Once the buyer’s bank receives the documents, the export sales amount as per the said

20

documents will be sent to PACIFIC’s bank.

4.6.4 INCOTERMS

These are the set of three letter standard trade terms most commonly used in international

contracts for the sale of goods. It is essential for PACIFIC to be aware of these terms while

engaging into EXIM business and prior to the shipment of the products to various countries

especially power deprived nations of Africa. The latest INCOTERMS 2012 are mentioned

below:

i. EXW- EX WORKS

The Seller’s only responsibility is to make the goods available at the Buyer’s premises. The

Buyer bears full costs and risks of moving the goods from there to destination.

ii. FCA – FREE CARRIER (… named place of delivery)

The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The

Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the

Buyer bears the costs and risks of moving the goods to destination.

iii. CPT – CARRIAGE PAID TO (… named place of destination)

The Seller pays for moving the goods to destination. From the time the goods are transferred

to the first carrier, the Buyer bears the risks of loss or damage.

iv. CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination)

The Seller pays for moving the goods to destination. From the time the goods are transferred

to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however,

purchases the cargo insurance.

v. DAT – DELIVERED AT TERMINAL (… named terminal at port or place of

destination) The Seller delivers when the goods, once unloaded from the arriving means of

transport, are placed at the Buyer’s disposal at a named terminal, at the named port or place

of destination. “Terminal” includes any place, whether covered or not, such as a quay,

warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks

20

involved in bringing the goods to and unloading them at the terminal at the named port or

place of destination.

21

Under DAT incoterms exporter must be unloading the goods from the arriving means of

conveyance at the terminal at the named port or place of destination.

vi. DAP – DELIVERED AT PLACE (… named place of destination)

The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of

transport ready for unloading at the names place of destination. The Seller bears all risks

involved in bringing the goods to the named place. Under DAP incoterms importer must be

unloading the goods from the arriving means of conveyance at the named place of destination.

vii. DDP – DELIVERED DUTY PAID (… named place)

The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller

bears all costs and risks of moving the goods to destination, including the payment of

Customs duties and taxes.

MARITIME-ONLY TERMS

i. FAS – FREE ALONGSIDE SHIP (… named port of shipment)

The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and

risks of loss or damage.

ii. FOB – FREE ON BOARD (… named port of shipment)

The Seller delivers the goods on board the ship and clears the goods for export. From that

point, the Buyer bears all costs and risks of loss or damage.

iii. CFR – COST AND FREIGHT (… named port of destination)

The Seller clears the goods for export and pays the costs of moving the goods to destination.

The Buyer bears all risks of loss or damage.

iv. CIF – COST INSURANCE AND FREIGHT (… named port of destination)

The Seller clears the goods for export and pays the costs of moving the goods to the port of

destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the

cargo insurance.

22

Differences between DAT and DAP:

i. Delivery Place

Under DAT incoterms delivery place must be a terminal. Incoterms 2010 rules

defines terminal as follows “Terminal” includes any place, whether covered or not,

such as a quay, warehouse, container yard or road, rail or air cargo terminal.

Under DAP incoterms delivery place could be any place, which is located further deep

in the arriving country comparing the terminal as described in DAT incoterms.

ii. Unloading of the goods from the means of conveyance

Under DAT incoterms exporter must be unloading the goods from the arriving means

of conveyance at the terminal at the named port or place of destination.

Under DAP incoterms importer must be unloading the goods from the arriving means

of conveyance at the named place of destination.

4.6.5 SOME OTHER TERMSSince solar and LED products contain various parts and are need to be assembled to form a

complete product, while shipment of these parts or complete assembly is done to other countries,

these terms come into picture.

i. CBU: Completely Built Unit

Export the complete product to the customer's country directly, without any processing or

assembly.

ii. SKD: Semi Knocked Down

Shipment in the form of semi-finished products to be assembled by the factories in clients’

country, which is suitable for SKD import tariff and lower than CBU countries.

iii. CKD: Completely Knocked Down

Shipment in the form of all knocked down, and patch, to be assembled by the factories in

clients’ country, which is suitable for CKD import tariff and lower than SKD, CBU and have

better ability to be manufactured in the clients’ countries.

23

CHAPTER 5 - FINDINGS AND RECOMMENDATIONS

Based on the analysis done in the previous chapters, my contributions to the company are:

5.1INTERNATIONAL LEVEL

i. I found and suggested some Incoterms that will be required when PACIFIC will be get

involved in the EXIM business.

ii. I suggested PACIFIC about the importance of Letter of Credit to be used by the

company while receiving payments for the shipped consignment to foreign countries.

iii. I had meetings with two Clearing and Forwarding agents and one domestic warehouse

facility provider at PACIFIC. Having interaction with them I learnt about the services

that they can provide and asked some questions about the services that will be suitable for

PACIFIC’s products. Based on the discussion carried in the meetings, I suggested some

services that will be suitable for PACIFIC to procure from these agents and service

providers.

iv. As a part of sourcing, I contacted some Chinese suppliers through mail on the online

B2B portal i.e. Alibaba.com regarding the procurement of various innovative

products that PACIFIC deal in. These products include solar garden led, solar caps,

window solar chargers, solar caps, solar backpacks and flexible thin film solar cells. As a

result, many of these suppliers have replied back. Now PACIFIC will short-list these

vendors based on its International Procurement Policy and will contact the short listed

ones for procurement of these above mentioned products.

v. Challenges faced by the company

Brand visibility

Requirement to build a new team

Limited capacity to launch a big marketing campaign

Competition from existing player in similar market

24

Competition from new entrants in the market

vi. Overcoming the challenges

Proper segmenting, targeting and positioning

Adding value to the procured products

Building strong distribution networks in the international market

Organizing events, campaigns, exhibitions

Market penetration

5.2 NATIONAL LEVEL

i. Various formats for different types of documentation work and quotation have been

prepared. The final formats for all the documents and the quotation were prepared

containing all the important clauses, which will be further used for operations. These

documents include Quotation, Delivery Challan, Dispatch Note, Goods Transfer

Challan, Payment Receipt, Annual Service Proposal, Service Completion Report.

(Annexure 1-7)

ii. The general Trade Terms and Conditions for both UP and Delhi office including various

clauses such as pricing, product, payment, insurance and delivery have been prepared.

This document is finalized which is to be used for dealing with any company doing

business with PACIFIC. (Annexure 8)

iii. The various criterion for the selection of vendors from whom PACIFIC will be

procuring goods for further sale have been found. Based on these found criterion, a

document called Procurement Policy have been developed for vendor selection which

will help the vendors to comply with this policy while doing business with PACIFIC.

(Annexure 9)

iv. The terms and conditions for tie ups with the Courier Services Providers whose services

will be availed for the carrying of the goods from PACIFIC to the clients have been

prepared. (Annexure 10)

25

v. The Supplier Assessment Form have been prepared for the company. This form includes

various parameters will be used to assess the performance of a supplier. This will help us

to judge the appropriate supplier with whom more goods will be procured in the coming

years. (Annexure 11)

vi. The terms and conditions and a proper format for Purchase Order have been prepared

which includes many terms related to delivery, dispatch, packing, mode of shipment,

documents required etc. The clauses of Quality control, Confidentiality and Inspection

have been solely contributed by me. (Annexure 12)

vii. The Client’s Enquiry Form have been prepared. This form will be used to collect all the

necessary information regarding a client with whom PACIFIC will be dealing with.

(Annexure 13)

viii. The terms and conditions for Insurance and Transportation have been prepared. These

terms and conditions will be used as a basis for availing any transport service as well as

insurance terms which can be applied to the products involved in transition from or to

PACIFIC. (Annexure 14-15)

ix. The formats for MOU (Memorandum of Understanding) with the courier companies

and suppliers including various terms have been prepared. These MOUs will be signed

between PACIFIC and the above stated parties after dealing with them once. These

MOUs will be renewed after a tenure of one year. (Annexure 16-17)

x. During my visit to the exhibition I interacted with many professionals and shared ours

company portfolio with each other. I also gained knowledge regarding their company’s

operations and products. This interaction helped me to relate their products and services

with PACIFIC’s requirement and made many contacts that can be useful for PACIFIC

in order to procure their products and services in the near future.

26

BIBLIOGRAPHY

1. ‘Business in a Box’ software for finding the document formats, accessed on 26th May, 2015

2. An article on ‘Selecting A Vendor: Your Vendor Selection Criteria’ http://www.purchasing-

procurement-center.com/selecting-a-vendor.html, accessed on 1st June, 2015.

3. An article on ‘The Successful Vendor Selection Process’,

http://operationstech.about.com/od/vendorselection/a/VendorSelectionHub.htm, accessed on

1st June, 2015.

4. A report on ‘BMS@VES EXIMROLE OF CLEARING AND FORWARDING AGENTS’

accessed on 1st July, 2015.

5. A pdf on ‘Incoterms 2012’, http://www.batf.uk.com/en/international/membership-

offers/incoterms-2015.cfm, accessed on 10th July, 2015.

6. A webpage on CBU, SKD, CKD, http://www.ktc.com.cn/Sales/dghz/cjch/, accessed on 12th

July, 2015.

7. A news on ‘2015 - A Year of Growth for Indian Solar Industry’,

http://www.intersolar.in/en/for-press/news/industry-news/2015.html, accessed on 24th July,

2015.

8. PACIFICenergy.com, accessed on 24th July, 2015.

27

ANNEXURES

Quotation

Delivery Challan Form

Dispatch Note

Goods Transfer Challan

Cheque/ Cash/ DD Receipt

Annual Service Contract Proposal

Service Completion Report

Trade Terms and Conditions

Procurement policy

Terms and conditions for tie ups with courier companies

Supplier Assessment Form

Purchase Order

Client’s Enquiry Form

Insurance terms and conditions

Transport terms and conditions

MOU with courier service provider

MOU with supplier

Validity: 30 Days Payment: Payment term will be 50% advance and balance againstdelivery.

Price quoted for Ex-Works Delhi Packing &forwarding: 3% Freight, Transit, Insurance, Courier charge will be extra.

2.00 % AgaiŶst foƌŵ C oƌ full tadž @ 5.0 %

QuotationRef.:

Date:

Your Ref. No.:

Kind Attn. :Phone: Date:

Email: TIN No.:ECC No.: PAN No.:

Dear Sir,We thank for your above enquiry and are pleased to quote as under:

Sr. No.

28

ANNEXURE 1

PACIFIC ENERGY SOLUTIONS PVT. LTD.

Mob:

Email:

Item Description Item Qty. Unit Price (Rs.) Disc. Delivery

29

There is a warranty of two years from the date of invoicing on the LED module and electronic hardware against any manufacturing defects.The light fitting housing and other hardware do not have any warranty. All warranties will be serviced at our works in Delhi only. The

defective modules will have to be sent to our Works at Delhi and collected from our Works at Delhi specifications / Photos are subject to change without any prior notice. This warranty is limited to furnishing of replacements found defective by us and does not extend to claims

for any labor, consequential damages, downtime or any other loss, damage or expense of any kind arising out of the defect. We do not allow claims for unauthorized repairs, labor or material.

INSTRUCTION: When ordering please mention mode of Dispatch and state, the applicable sales tax, and your Registration No. and date.

Note:

Yours faithfully,

For PACIFIC ENRGY SOLUTIONS PVT. LTD.

(Manager Sales &Operations)

1. Delivery period given above is applicable for technically and commercially clear orders only.2. Please send road permit and Form – C aloŶg ǁith the puƌchase oƌdeƌ foƌ tiŵelLJ dispatch. ;If

applicable)3. Our offer and terms of business are subject to Standard Force Majeure Clause. In the unlikely event

of dispute, the same will be subject to Delhi Jurisdiction only.4. Bank Details: -

Bank Name: VIJAYA BANKBank A/C No.: 601900301000768IFSC CODE / RTGS / NEFT: VIJB0006019

MICR Code for Branch: 1100290165. Delivery will be in 1-2 weeks from the receipt of confirm P.O. and advance payment.6. Prices are ex-works Delhi.

Thanking and awaiting of your valuable order.Regd. Office: B – 282, Yojana Vihar, Delhi – 110092 (INDIA)

Mob: +91-9643479104 Email: info@ www.pacific-india.net/about-us.html Website www.pacific-india.net

30

ANNEXURE 2

DELIVERY CHALLAN FORM(Returnable / Non-Returnable)

ORIGINAL DUPLICATE OFFICEWHITE PINK YELLOW

Party Name:

Address :

Mobile : LST / CST / TIN No. :

ChallaŶ No.: …………… Dt.: ………. IŶvoice No.: …………… Dt.: ……... Dispatch Through: ………………… Vehicle No.: …………………G. R. / L. R. No. : ……………………

Sr. No. Description No. of Units No. of Packages Estimated Value

E & O.E.GRAND TOTAL

Prepared by Approved by Receiver Signature & Stamp For PACIFIC Energy Solutions Pvt. Ltd.

Authorized Signatory

Regd. Office: B – 282, Yojana Vihar, Delhi – 110092 (INDIA)Mob: +91-9643479104 Email: info@ www.pacific-india.net/about-us.html Website www.pacific-india.net

31

ANNEXURE 3

PACIFIC ENERGY SOLUTIONS PVT. LTD.

DISPATCH NOTEORIGINAL DUPLICATE OFFICE COPYWHITE PINK YELLOW

DN Code: DN Date:Consignor: PACIFIC Energy Solutions Pvt. Ltd. Consignee:

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102,U.P. (INDIA) Address: Mobile: +91-9643479104Contact Person: LR No.:Contact Phone No.: LR Date:Transporter: Vehicle No:Requisition Date: Challan No:Requisition Time: Challan Date:Requisition Type: Req. Remark:CST No.: TIN No.:VAT No.:Sr. No. Description No. of Units No. of Packages Estimated

Value

Dispatch Note Remarks:……………………………………………………………………………………………………………………………………………………….……………………………………………………………………………………………………………………………………………………….V.A.T. No.:09788831532 w.e.f. 22/04/2015 C.S.T. No.:09788831532 w.e.f. 22/04/2015 T.I.N. No.:09788831532 w.e.f. 22/04/2015

We acknowledge receipt of above materialCreated by : Approved by : Receiver Signature & Stamp For PACIFIC ENERGY SOLUTIONS PVT.

LTD.

Authorized Signatory

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102, U.P. (INDIA)Mob: +91-9643479104 Email: info@ www.pacific-india.net/about-us.html Website www.pacific-india.net

32

ANNEXURE 4

PACIFIC ENERGY SOLUTIONS PVT. LTD.

GOODS TRANSFER CHALLAN

ORIGINAL DUPLICATE OFFICEWHITE PINK YELLOW

Token No:GTN Code: GTN Date:Consigner: Consignee:

Delivery Address: LR No.: LR Date:Contact Person:Contact No: Requisition Type:Trans. Name: Vehicle No:Requisition Date: Requisition Type:Dispatch Date: Dispatch Time:V.A.T. No: C.S.T. No:T.I.N. :Sr. No. Description of

GoodsProduct Code

Serial No. Item Type Qty. Packaging In Crate

Rate Value (Rs.)

Rupees (in words): GTN Remarks: Reference GTN Code:V.A.T. No.:C.S.T. No.:T.I.N. No.:09788831532 w.e.f. 22/04/2015

We acknowledge receipt of above materialPrepared by Approved by Receiver Signature &

StampFor PACIFIC ENERGY SOLUTIONS PVT. LTD.

Authorized Signatory

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad – 201102, U.P. (INDIA)Mob: +91-9643479104 Email: info@ www.pacific-india.net/about-us.html Website www.pacific-india.net

Rs. Bill No.

33

ANNEXURE 5

PACIFIC ENERGY SOLUTIONS PVT. LTD.CASH / CHEQUE / DD RECEIPT

TIN NO.: Dated: / /

Receipt No.:

Received with thanks from Mr. / Ms. / M/s………………………………………………………………………………………….…………………………………………………………………….

…………………………………………………………………………………………………………………………………………………………………..…………………………………………………………….

the suŵ of ‘s…………………………………………. OŶ accouŶt of ………………………………………………………………………… BLJ Cash / CheƋue / D.D. No. …………………………………………………………….

Dated: ………….…………….

Prepared by Approved by Receiver Signature & Stamp

For PACIFIC Energy Solutions Pvt. Ltd.

Authorized Signatory

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102,U.P. (INDIA)

Mob: +91-9643479104 Email: info@ www.pacific-india.net/about-us.html Website www.pacific-india.net

34

ANNEXURE 6

PACIFIC ENERGY SOLUTIONS PVT. LTD.ANNUAL SERVICE CONTRACT PROPOSAL

ORIGINAL DUPLICATE OFFICEWHITE PINK YELLOW

Quot. No.: Date: / /Customer Ref: Product Code:Call No.:Details: ANNUAL SERVICE CONTRACT CHARGES FOR YOUR ………………………………….……………………………………….Serial Number:CoŵpaŶLJ’s Service Tadž No.: AAHCP0914ASD001Customer Details: Name:Address: Contact No.: Email ID :

Contract Amount

Kind Att. Name: Contact No. :Dear Sir/Madam,TOWARDS THE NON-COMPREHENSIVE ANNUAL SERVICE CONTRACT CHARGES FOR RENEWAL OFYOUR………………………………………………………………………………………………………………………………………………….

Sr. No. Serial Number

Description Qty. Unit Charge Amount

Service Tax 14%Subtotal AmountRounding offTotal Amount

Amount (in words) Grand TotalTerms & Conditions:

1. Payment – 100% in advance along with confirm purchase order.2. Duties & Taxes – As per applicable at the time of delivery.3. Validity – 30 days.

For any query please call Mobile: +91-9643479106Prepared by Approved

byReceiver Signature & Stamp

For PACIFIC Energy Solutions Pvt. Ltd.

Authorized Signatory

Branch Office: Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102, U.P. (INDIA)Mob: +91-9643479106 Email: info @ www.pacific-india.net/about-us.html Website: www.pacific-india.net

35

ANNEXURE 7

PACIFIC ENERGY SOLUTIONS PVT. LTD.

SERVICE COMPLETION REPORT

ORIGINAL DUPLICATE OFFICEWHITE PINK YELLOW

Customer Name: Address:

Contact No.: Email:

Date & TimeService Request No.Type of ProductProduct CodeSerial No.

Nature of Fault Reported

Resolution Details

Customer Feedback: A-Poor B-Ok C-Good D-Very Good E-ExcellentWe request you to rate service experience so as to serve you better on

Our Engineer was helpful & courteous

Overall Quality of Fault Repair Are you satisfied with the time taken to repair the fault

EŶgiŶeeƌs Ability to understand fault accurately and quickly

Engineer briefed you on basic troubleshooting & preventive measures

Appearance and present ability of the Engineer visited

Any other Remarks / Findings:

EŶgiŶeer’s Naŵe: Employee ID: Signature:

Customer Name: Signature :

Prepared by Approved by Remarks from Manager For PACIFIC Energy Solutions Pvt. Ltd.

Authorized Signatory

Branch Office:Office A1 & A2, Satyam Theatre Campus, Main Johripur Road, Loni Border, Ghaziabad-201102, U.P. (INDIA)Mob: +919643479106; Email:customercare@ www.cebupacificair.com; Website: www.pacific-india.net

36

ANNEXURE 8

TERMS AND CONDITIONS (FOR UP OFFICE)

Payment Terms:

1. All prices are inclusive of excise duty whenever applicable at prevailing rates, but are

exclusive of Freight, Cartage, Loading and Unloading charges, Octroi, taxes and other local

levies, if any, shall be charged extra as applicable at the time of dispatch.

2. All prices are subject to change without any prior notice as per company discretion.

3. All prices are subject to our general terms and conditions of business.

4. Maximum Retail Price (MRP) whenever mentioned are inclusive of excise duty and sales

tax as per the prevailing rates.

5. Kindly contact our authorized PACIFIC representatives for prices marked.

6. The price list attached to any product, supersedes all earlier pricelist.

7. Local payments are to be made through A/c payee cheque / DD in 100 % advance, before

delivery. Outstation payments are to be made through a Demand Draft payable at Delhi or a

Cheque payable at Delhi at par.

8. 100 % advance along with full taxes and duties should be paid along with Purchase Order

(PO).

9. Interest will be charged at 24 % per annum if payment not made by due date.

10. The consignment will be sent only when cheque will be cleared.

11. CST will be calculated @ 5.5 % without Form C and @ 2 % with Form C (Mandatory to

submit the C form to get the 2 % tax input).

12. MRP is the Maximum retail price. Products cannot be sold above the MRP prices mentioned

(for Dealers, Distributors and Incentive Teams)

13. Dealers may sell at prices lower than the list price. (for Dealers and Distributors)

37

Transportation Terms:

1. PACIFIC ENERGY SOLUTIONS PVT. LTD.is not responsible for any shortage,

damage, breakage etc. once the goods are in the custody of the transporter.

2. Maximum liability limited to the value of goods under any circumstances.

3. Transportation as actual paid by the buyer against actual based on transportation receipt.

Insurance:

1. Force Majeure Conditions: The deliveries are subject to force majeure conditions &

unforeseen circumstances.

2. PACIFIC ENERGY SOLUTIONS PVT. LTD. is responsible for arranging insurance

coverage for the consignment and the amount will be charger from the client of PACIFIC.

Packing and courier terms:

The packing and courier charges will be extra as per actuals.

Warranty and Replacement terms:

1. No warranty for physical damage/ burnt.

2. Warranty void, if sticker is removed.

Delivery:

1. Delivery within 2-3 weeks from the date of receipt of technically & commercially clear PO

along with 100 % advance payment. (LED)

2. Delivery within 1-2 weeks from the date of receipt of confirmed PO and payment. (Solar)

Installation:

1. Cost of unloading, shifting and installation is extra.

2. Insurance, transportation, unloading and installation are exclusive of selling price of

PACIFIC Energy Solutions Pvt. Ltd.

38

3. Installation: on to pay basis strictly.

Dispute:

1. In case of any dispute related to Performa invoice / invoice than the matter will be referred by

Managing Director of PACIFIC ENERGY SOLUTIONS PVT. LTD. for the sole

arbitration of person nominated / appointed by him in this regards and the person so

appointed will act as an Arbitrator in terms of Indian Arbitrator and Conciliation Act, 1996.

2. Goods once sold they will not be taken back nor exchanged.

3. All disputes are subject to UP jurisdiction only.

4. If you want us to follow any Statutory or regulatory requirements related to the products to be

supplied by us, please let us have that information at the time of issuing Purchase Order itself.

5. Kindly note that in case of any of the government levies undergo a change during the

currency of the contract, the same shall be accordingly amended in our Contract or Purchase

Order as well. (For Imports and Exports)

6. The goods remain the property of PACIFIC ENERGY SOLUTIONS PVT. LTD. till the

receipt of the invoice value.

7. Continuous design improvement is a routine practice at PACIFIC ENERGY

SOLUTIONS PVT. LTD. Technical Data provided may change without any prior

intimation. Customers are advised to reconfirm the data or product dimensions before

purchase with our local office’s representative.

8. Product photos is for illustration only and may not reflect actual products. Company has

all rights to change product shape, model and specifications.

9. The image depicted in the price list may vary from the actual product.

10. Any additional facility, if provided will be charged extra.

Pricing:

1. The products mentioned in the same pricelist are subject to the discounts as per the prevailing

PACIFIC’s trade policy from time to time. (For Dealers, Distributors and Incentive Teams)

2. For any additional features, please contact the nearest PACIFIC branch representative for

revised pricing.

39

Payment Table:

Sales Tax UPVAT 14.5 % or 2 % against form ‘C’ charged Extra. 2 % C.S.T. against ‘C’ form extra. In case the value of the invoice is less than Rs. 5,000 you may submit Rs.500 in lieu of the ‘C’ form and the same will be refunded after you submit the ‘C’ form to us. Alternatively, for the Invoice less than Rs. 5000 please confirm acceptance to 14.5 % VAT while placing your purchase order. Rate ruling at the time of supply will be charged irrespective of due PAN No. / TIN

No.Our PAN No. : AAHCP0914A, Our VAT TIN NO: 09788831532

Payment 100% along with purchase order / Proforma Invoice. 100 % payment in advance against Proforma Invoice by demand draft / cheque payable at Delhi along with C Form in advance , prior to dispatch of goods.Packing and

FreightCharge extra as applicable

Delivery Within 1-2 weeks from the date of receipt of confirmed PO and payment ( Solar only ) & 2-3 Weeks for LEDWarranty Every product is warranted for different duration of months against defective workmanship. In case of any manufacturing defect, you will have to return it to our works, Freight paid for repair/ replacement. No advance replacement will be made. It does not cover fuses, test leads, battery, damaged IC’s and burned PCB.

Bank details VIJAYA Bank. A/c No: 601900301000768, IFSCCode: VIJB0006019, Branch: 109, Shrestha Vihar, Delhi-1100092

Validity Upto one month from the date of quotationCompany service tax no AAHCP0914ASD001

40

Prices Ex Works Ghaziabad

Packing, forwarding, freight, insurance, Octroi / town

duty etc.Minimum Order Minimum Order should be for Rs. 10,000/-, otherwise

Handling Charges of Rs. 200/- will be charged extra.

Specifications Specifications of the offered products as per

PACIFIC’S catalog available at our website

www.pacific-india.net/Guarantee All products are guaranteed against defective

workmanship as per our standard guarantee policy.

This transaction is subject to UP Jurisdiction only.Validity Up to one month from the date of quotation.

We hope you shall find the above in order. Should you require any further information /

clarification, we will be pleased to assist you.

Hope you will consider our offer favorably and let us have your valued orders.

Please feel free to contact us in case you need any more information.

Thanks and Regards

PACIFIC ENERGY SOLUTIONS PVT. LTD Team

40

ANNEXURE 9

PROCUREMENT POLICY

STAGE 1

1. PRODUCTS PORTFOLIO

Solar and led.

2. TECHNICAL SPECIFICATIONS

Detailed technical specifications along with in-house test reports and testing certificates.

3. OEM PRICE LIST

Should be nominal in price less than the price offered to distributors as its OEM.

4. PRICING TERMS

It has to differential pricing i.e. slab wise (means different prices as per quantity slabs) /

discounting slab as per quantity.

5. TRADE TERMS & CONDITIONS

Which can be a win- win situation for both the entities.

6. LOCATION OF OFFICE

Near to Delhi – NCR would be more preferable.

7. QUANTITY TO BE ORDERED

Looking for an adequate quantity i.e. safety stock so as to minimize the inventory holding,

carrying and spoilage costs.

8. PRODUCTION CAPABILITY

How much quantity can be produced per day and per month?

9. SUPPLY LEAD TIME: [TIME TAKEN TO DELIEVER (AS PER QUANTITY ORDER)

FROM THE DATE OF SENDING PURCHASE ORDER]

Time should be nominal so as to fulfill, even the urgent need of any client.

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10. PRICE BASIS

F.O.R. site (duly packed)

11. PAYMENT TERMS

Scheduled for payment 30 days from the date of goods received.

12. LOCATION OF FACTORY

To visit your integration unit just to cross verify whether PACIFIC'S

PROCUREMENT POLICY is in accordance or not for e.g. standards maintained, processes

involved, material used in manufacturing, to carry out quality checks.

13. QUALITY OF STOCK SUPPLIED

That should be as committed / discussed earlier.

14. TRANSPORTATION COST

In the scope of OEM supplier.

15. PERSON FOR HANDLING QUALITY CONTROL AT YOUR FACTORY / OFFICE

One person should be appointed by your organization, so as to coordinate with us on techno-

commercial parameters and to cross verify the quality of the lot before sending to PACIFIC.

16. DESIGN COLLABORATION CAPABILITY

So that PACIFIC'S technical dept. could suggest for improvisation in efficiency, design and

can reduce the costs by applying reverse engineering concepts too.

17. GUARANTEE

The material supplied against the order should carry a comprehensive onsite warranty against

all manufacturing defects for a period of 24 months from the date of Invoice to PACIFIC.

The standard response time should be within 48 hours.

18. PACKING: (As per your standard packing procedure to avoid damages in transit)

Goods shall be securely packed to avoid loss or any damages such as breakage, pilferage etc.

during transit. Any loss due to improper packing, shall be to your account.

19. COMPLETENESS:

Supplier confirms that the complete requirements as contained in the Drawings/ Specifications

/ Clarifications submitted are understood and all items of Project whether specifically

mentioned or not in Technical Specifications, but are necessary for completeness.

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20. WARRANTY CLAUSE ON YOUR PRODUCT:

21. TYPE OF WARRANTY COVERED (Vary from product to product)

22. WARRANTY ISSUES: POST SALES

Provision of extended warranty should be there: as for key projects it will be a crucial factor.

The warranty period will start from the date of billing done by PACIFIC.

23. REPLACEMENT TERMS AND CONDITIONS FOR FAULTY PRODUCTS

Replacement time: should be 2 days; for safe & efficient operation & maintenance. Guaranteed

performance shall be supplied by the supplier at no extra cost. (N/A) (Vary from product to product)

24. TAXATION: DELHI / UP BILLING, ANY SEZ / EXCISE ZONE

25. PRODUCT RECALL

Expenses incurred in a whole process of taking the product back from client's side and repair / replace

it and then send it back to client will be done by supplier if it’s in warranty phase.

26. RANDOM SAMPLING

If the product fails, the minimum requirement the whole lot won’t be acceptable by PACIFIC.

27. INSURANCE (NEGOTIABLE)

In the scope of supplier.

28. PACKAGING

Individual box along with volume based boxes.

29. PRINTING / LABELLING

Pad printing /seal printing / stickers / transparent impression leaving stickers has to be provided by

supplier so that PACIFIC can fulfill the client’s order ASAP.

30. INSPECTION / PLACE OF INSPECTION

Internal test / warranty reports shall be provided (as per manufacturer standard).

31. PRE SALES SUPPORT

Providing initial technical support; to train PACIFIC’s representative.

32. POST SALES SUPPORT

Guarantee, warranty, upgrade and repair services.

33. GREEN PACKAGING

34. GREEN SUPPLY CHAIN PRACTICES

35. CUSTOMIZATION (IF REQUIRED)

Could be provided by the supplier as per key client’s requirement.

36. FROM DATE OF SALES

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Mapping by PACIFIC.

37. QUALITY

Should be optimum; so as to have maximum customer satisfaction.

38. SERVICE BACK UP

PACIFIC requires training support of PACIFIC'S team member at no additional cost.

39. MAINTENANCE ISSUES (IF ANY)

40. DISCOUNTS

Bulk order quantity, cash discount.

41. AVAILABILITY OF SPARES PARTS

PACIFIC requires spare parts from supplier side, as if warranty gets expired client will be requiring

spare parts. Therefore, in order to retain the client and to acquire more clients service backup factor in

terms of spare parts is crucial.

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42. STANDARIZATION

The supplied lot should be strictly same in every aspect as of the sample passed by PACIFIC.

43. CERTIFICATIONS

ISO9001:2008; ISO 14001: 2004, CE, MSME, SSI, NSIC, MNRE, NABARD, DGS&D

44. One technical person from PACIFIC shall visit your site before dispatch; so as to cross

check the processes involved.