RASHTRIYA ISPAT NIGAM LIMITED (A Government of India Enterprise) VISAKHAPATNAM STEEL PLANT

Regional Office-Andhra Room No.261, C-Block, Main Administrative Building, Visakhapatnam-530 031

Ph.No.0891-2518016; e-mail:roandhra@vizagsteel.com

No.VSP/Mktg/2009-10/AR/Advt-02 Date:14.10.2009

Registration as District Level Dealer for Sale of Steel Materials. 1. RINL invites applications for Registration as District Level Dealers (DLD) for sale of Steel items at the

following Locations.

Location of DLD Category

Time & Last date for

submission of

application

Opening time & Date of

bids

Name & Address of the Controlling Branch

District Place

* Srikakulam Tekkali OBC

3.00 P.M. on 04.11.09

3.30 P.M. on 04.11.09

Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant Branch Sales Office Room No.55, D-Block, Project Office Complex Visakhapatnam-530031 Ph.No.0891-2518026/2518446 email:vizag.bso@vizagsteel.com

Narasannapet General Palasa General

Prakasam Markapur General Kanigiri General Chirala OBC

Sri Potti Sriramulu Nellore

Kavali OBC Atmakur General Gudur General

Chittore Madanapalli General Puttur OBC Venkatagiri General

Cuddapah Rajampet OBC

3.00 P.M. on 25.11.09

3.30 P.M. on 25.11.09

Jammalamadugu General Rayachoti General

Anantapur Tadipatri SC/ST Kadiri General Guntakal General

Kurnool

Adoni General 3.00 P.M. on 04.11.09

3.30 P.M. on 04.11.09

Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant Branch Sales Office 6th Floor, NMDC Building, Masab Tank Hyderabad-500028 Ph.No.040-23535179/23535750 email:hyd.bso@vizagsteel.com

Atmakur OBC

Nandyal General

* 2 nd Call for these districts

2. The DLDs are registered to service the requirements for development of Public Utility and Housing in

rural sector. Accordingly, the product range includes TMT Rebars of various sizes and grades, Structurals as marketed by RINL.

3. The existing LTC customers, CA, CSA, DLD or Handling Contractors of RINL are not eligible to apply

as DLD. The applicant can apply for registration at multiple locations. However, the applicant shall only be registered as DLD for one location, as selected by him, even if the applicant becomes eligible at multiple locations.

4. Application format, instructions to applicant and terms and conditions can be downloaded from our

website (www.vizagsteel.com) or can be obtained free of cost from the Sr. Branch Manager of

controlling Branch mentioned above upto 5.00 PM one day before the last date to submit the application.

5. Filled in application forms should be submitted in the Box provided in the Controlling Branch latest by

3.00 PM on the dates as mentioned above for each location, which shall be opened by 3.30 PM on the same day.

6. Interested parties may contact the Sr. Branch Manager concerned for further details or visit our web

site as mentioned above. Sr. Branch Manager concerned shall be available for this purpose on 30.10.09 and 20.11.09 between 3.00 p.m. and 4.00 p.m.

7. Applicants belonging to the specified category shall only apply for the locations advertised for specific

category. However, SC/ST & OBC category can also apply to the locations advertised for general category, for consideration on merit basis.

(P.S.Gupta)

Regional Manager-Andhra

Annexure –II

Instructions to the Applicant.

1. The applicant shall carefully go through the application format and Terms & Conditions and fully

understand the terms and conditions governing their registration as RINLs District Level Dealer.

2. The applicant shall acquaint themselves about the operations to be done by meeting the Sr.Branch Manager or his designated officer of Controlling Branch. The applicant also to visit the stockyard and acquaint himself with the location and working of RINL stockyard from where materials will normally be delivered during the period of dealership. The Applicant by the very act of applying will be deemed to have fully understood the terms and conditions governing their registration and also familiarized themselves with the location of Branch and stockyard at the time of submission of their application.

3. The details shall be filled in as per the format and the documentary proof is to be attached wherever applicable. The claim made in the application and the documents submitted along with the application shall only be considered. No additional documents or claims shall be entertained later.

4. The DLD is expected to operate an exclusive outlet for RINL products and cater to small and tiny

demands of users/Consumers within the territorial jurisdiction assigned by the controlling Branch. RINL will however, retain the right to sell any of the products within such jurisdiction directly or through other means and ways.

5. The application form shall be deposited in the box provided for in the controlling Branch office

with in the indicated date & time. No application shall be accepted beyond the specified date and time.

6. Incomplete applications, applications not accompanied by the required documents, and conditional applications are summarily rejected. RINL may, at its convenience, finalise the registration with in a period of 90 days.

7. RINL will not be responsible for any delay, loss or non-receipt of application by post etc. Applications received by Fax, E-mail, Telegram/Telex etc., will not be considered.

8. The applications shall be evaluated on various attributes like experience in the field, Infrastructure facilities, Financial capabilities and any other criteria, which the company considers necessary to take into account while evaluation of the application. The applicant shall provide weigh scale, computer, internet & telephone connection at the office/warehouse before registration as dealer. Such provisions are obvious requirements and shall not be considered for evaluation of the application at the evaluation stages.

9. As a minimum qualifying criteria, the applicant should posses an office/retail outlet (more than

200 Sq.ft) besides a storage space of suitable capacity (not less than 4000 Sq.ft) at the location advertised for. The applicants are advised to select the best suitable site for operation of the yard as they will not be permitted to change the site indicated in the application for the first one year of operation. Office space can be provided with in the wear house site, immediately after selection of the applicant.

10. The applicant shall submit a copy of the title deed/lease agreement/consent to lease on stamp-paper. The yard shall be developed, for use as stockyard, as directed by RINL, with in 30 days from the date of LOI.

11. RINL shall inspect the infrastructure facilities indicated in the application if necessary. The applicant shall produce all the relevant documents etc., substantiating the details made in the application to the inspecting team of officers on their visit to the premises of the applicant.

12. Assessment made by RINL shall be final & binding. RINL reserves the right to accept or reject

any and or all applications without assigning any reason whatsoever.

Checklist for submission of the documents by the applicant along with the application form for registration as DLD

1. Warehouse: (all the documents shall be on the stamp paper) i. Copy of the Title Deed in case of own land ii. Copy of Lease Agreement and copy of the Title Deed of the owner in case of lease iii. Copy of the Consent to Lease and Copy of the Title Deed of the owner in case of Consent to Lease 2. Category: i. Copy of the Caste Certificate in the format prescribed in case of Reserved Destinations 3. Turnover: i. Copy of the audited Profit & Loss A/c and Balance Sheet ii. Certificate from the Chartered Accountant iii. Copy of the Income Tax Returns 4. Experience: i. Copy of the firm’s registration certificate ii. Copy of the Income Tax Returns indicating the turnover for the respective years. 5. Solvency: i. Banker’s Reference ii. CC Limits from the bank iii. Solvency Certificate Submit at least one of the documents listed for each items for claiming the eligibility under the item.

Annexure – III

Format of Application for Registration as District Level Dealer For use of Branch only

RASHTRIYA ISPAT NIGAM LIMITED (A Government of India Enterprise) VISAKHAPATNAM STEEL PLANT

##address of the Branch Sales Office##

Application form for District Level Dealer for Sale of Steel Materials.

1. Name of the applicant/Firm :

2. Status of the applicant : Proprietor/Partnership/Pvt. Ltd.Firm/Public Ltd. Firm / Co-operative

3. Category (Tick Mark applicable category) : SC/ST OBC General (Please furnish documentary evidence if belong to SC/ST/OBC from competent authority, as per the format providedin our website at www.vizagsteel.com. Copies of formats are placed in the Annexure-VIII and IX, for ready reference)

4. Address :

5. Contact Details : Telephone No. Fax No.

6. Contact Person : Name Designation Details of Partners/Directors (Please enclose a copy of Partnership Deed/Memorandum and Articles of Association, Company Registration Details along with latest Balance Sheet and P&L Statement ) Weather any of the applicant/proprietor/Partner/Directors are LTC Customers/CA/CSA/Handling Contractors for RINL Products: Yes/No Whether any of the applicant/proprietor/Partner/Directors are related to Employees of RINL : Yes/No (if yes, Please furnish the details there off)

7. Sales Tax Details : CST No. & Date VAT/SST No. &Date: ECC No.

8. Nature of the Business : Manufacturing/Trading

9. Type of Products handled

Date & Time of Opening No of the application Total applications Received

10. Turnover Details: 2006-07 2007-08 2008-09 Total Sales Turnover Turnover of Steel Products (If any)

11. Total Equity Capital or Investment in Business. (Rs. in Lakhs)

12. Bankers Name & Address: (Please enclose Bankers Reference indicating the credit worthiness and solvency)

13. Details of Proposed infrastructure Facilities: Own/leased/Consent to lease

Office/Sales counter Area in Sq.ft: (Indicate whether existing in the proposed yard or available/will be made. will be made immediately after selection of the applicant Warehouse/stockyard Area in Sq.ft: Address

Any other information wish to provide: (Please provide a location map indicating the distances from the main centre of the place along with a copy of title deed, lease agreement or consent to lease)

14. Proposed off take per Month (in MT):

15. Areas/places to be covered in the proposed business:

16. Declaration: I/We have gone through the terms and conditions contained in Instructions to Applicants and Draft agreement of Registration as District Level Dealer and accord my/our acceptance of the same I/We declare that the information given above is true and correct. I/We am/are fully aware that if any information given above is found to be incorrect, I/We would be disqualified and/or our registration may be terminated at any point of time. Place: Date: Signature of Authorised signatory With Seal Note: This application form shall be attached to the covering letter in the applicant firms’ letterhead.

Annexure –V

Format of Agreement with Registered District Level Dealer (To be executed on non-judicial Stamp paper of value as applicable in the concerned state)

This agreement No._____ dated _______ for purchase and marketing of steel products from RINL, entered into between Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, _____(Branch sales office address) having its registered office at Main Administration Building Visakhapatnam Steel Plant, Visakhapatnam 530 031 represented by its Sr.Branch Manager (herein after called RINL) and M/s _____________________(Name & address of District Level Dealer) *having its registered office at ___(*applicable in case of a registered company) hereinafter called as “District Level Dealer (DLD)”. WHEREAS RINL is desirous of registering DLDs at various locations and accordingly invited applications from various eligible parties, ANDWHEREAS the DLD has been dealing in Iron & Steel products or related products and has applied for registration for its operation at ____________(location) vide his application dated _____ and enclosing terms and conditions for registration as per this agreement duly signed by him as a token of acceptance for such terms and conditions. AND WHEREAS RINL after scrutiny of applications has been pleased to register M/s______, the DLD on the terms and conditions set out hereunder, for a period of one year. NOW THIS AGREEMNT WITHNESSETH AS UNDER: 1. Products covered : TMT Rebars of size 8mm to 16mm. The other sizes & grades of TMT Rebars and Structurals as marketed by RINL can be included as per the request of DLD. Any other product can be added at the discretion of RINL 2. Committed offtake of Materials from RINL: The DLD can take the materials as per his requirement, subject to the availability. RINL agrees to sell and DLD commits to purchase a minimum quantity of 50T (per month) as offered to them. RINL extends the freight subsidy at the percentage as decided by it from time to time, to this quantity only. The DLD shall plan his purchase and place the indent on RINL so that the material is available with the DLD to avoid stock out situation. The quantities not purchased by the DLD in a month shall not be made good in the subsequent months. However, in case of failure of RINL to offer the quantity upto the agreed quantity, RINL shall makeup the shortfall in subsequent month depending on the availability of material. The terms and conditions of sale shall be as per the terms in the offer letter and the delivery order issued by RINL. The DLD is required to lift a minimum of 50% of the annual quantities as committed above in case of General Category and 25% in case of SC/ST & OBC Category. All the DLDs who could fulfill this criteria shall be considered, for continuance as DLD at the sole discretion of RINL in the subsequent year.

3. Purchase Price of DLD: The price chargeable for the material being purchased by the DLD shall be RINLs ex-stockyard price (inclusive of excise duty and education cess). VAT/Local Sales Tax, Octroi and any other levies applicable on the date of delivery shall be charged extra. The DLD has to make payment against offer letter for the material in the form of DD or PO payable at the location of the designated Branch. 4. Delivery of Material: BSO,_______RINL will arrange for the transportation of material to the DLDs premises. A subsidy on Transport, if applicable, shall be extended to the DLD as mentioned at para 2 above. All costs or service charges after material reaches the premises of DLD shall be to the account of DLD. Further transportation done by the DLD to his customers shall be borne by DLD subject to the conditions mentioned below. The weight recorded in the weighbridge of RINL HQ/Stockyard or any other nominated weighbridge and the weight shown in the invoice issued by RINL shall be final and binding upon the DLD. 5. Sale of Material to DLD’s Customers:

The DLD shall sell the materials at a price not exceeding the Maximum Recommended Retail Price (MRRP) per MT or per standard bar, announced by RINL. However, the local levies like ST/VAT, Octroi etc shall be extra as applicable. The DLDs are required to display the MRRP in the location of sale as per the format as prescribed by the branch.

The DLD shall deliver the material free of cost towards transportation to the premises/site of his/their customers with in a radius of 50KM from their yard. A part of the dealers margin (upto Rs.200) is allowed in view of this service. The Tax concessions, if any, to the customers of DLDs, shall be the responsibility of DLD and RINL shall not be liable for refund of such levy/tax from the authorities concerned. The DLD shall operate an exclusive outlet for RINL products. The DLD shall serve the requirement of the customers within the territorial jurisdiction to which he is registered. The decision of RINL is final and binding in this regard. 6. Security Deposit:

The DLD shall furnish the Security Deposit of Rs. 50000 (Rupees Fifty thousand only) through DD/PO payable at the designated branch location. No interest shall be paid by RINL on this SD. The SD shall be forfeited in the eventuality of termination of registration of DLD. The SD shall be refunded on successful completion of registration period in case of no further renewal. 7. Termination Clause:

RINL may at its discretion, terminate the registration of DLD giving a notice of 15 days, in the event of adverse and repeated customer feedback, repeated complaints on sale outside the jurisdiction, unsatisfactory performance, sale of material at prices higher than MRRP circulated by VSP and any other aspect considered detrimental to the interest of RINL.

8. Arbitration Clause: All disputes or differences whatsoever arising between parties out of or relating to the construction, meaning and operation or effect of this agreement or breach thereof shall be settled by arbitration in accordance with the rules of arbitration of the Indian Council of Arbitration and the award made in pursuance thereof shall be binding on the parties. Jurisdiction: (Branch Locations) IN WITNESS WHEREOF the parties hereto have set out their hands on the day, month and year above written. Signed and Delivered on behalf of Within the named Visakhapatnam Steel Plant through ______________ in the presence of RINL WITNESS: 1. Branch Finance Manager/BSO/RINL 2. Signed and Delivered on behalf of The within names ___________ Through ____________ in The presence of DLD WITNESS: 1. 2.

Annexure – VIII

Annexure -IX

FORM OF CASTE CERTIFICATE