Ispaat Parivahan Limited: Additional Fleet Acquisition

Abstract

This case focuses on the issue of additional fleet acquisition by Ispaat Parivahan Limited (IPL) for its contract obligation fulfilment with Solid Steel Limited. As per contract, IPL was to transport overall 15,000 tons per month (tpm) till July 31, 2015 to the North and West. But IPL failed to uphold its part of the contract and fell short of the target for the North. IPL could transport only 12,800 tpm, leading to a penalty payment. To avoid this, the company proposed acquisition of more fleet. One of the issues was additional time due to return loads. The Board wanted IPL to assess scenarios with and without return loads.

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Resources

Exhibit 1: Contract Between IPL and SSL

The ‘Operational Terms and Conditions’ and ‘Commercial Terms and Conditions’ of this Contract have been accepted as set forth hereunder as Part A and Part B.

Scope of Work

This contract is valid from August 01, 2013 to July 31, 2015, for the transportation of Steel by road from our Jamshedpur Works and Jamshedpur/Adityapur based External Processing Agents (EPAs) to destinations Delhi, Ghaziabad, Faridabad, Gurgaon & Kushkhera in North region and Nagpur in West region. IPL service will to transport Steel material for Solid Steel from their Jamshedpur Works to customers located at Delhi, Ghaziabad, Faridabad, Gurgaon & Kushkhera in North and Nagpur in West. IPL will manage all aspects of transport service, including supply of trailers, provide MIS reports, scheduling, day-to-day logistics and supervisory function. IPL will restrain and secure load to the standards required and will conduct all loading within the legal limits.

Validity

The new contract shall be valid for a period of 24 months from the date of August 1, 2013 until July 31, 2015 with a provision of extension for three years at mutually agreed terms and conditions subject to satisfactory performance by IPL as per details mentioned in clause no VI in Part A of this agreement.

Minimum Requirement of the Contract
  • IPL will ramp up to achieve required volume within three months from the date of the receipt order.
  • IPL will submit a Demand Draft of `10 lakhs in favour of Solid Steel Limited before commencement of the contract which may be forfeited in case of failure to fulfil vehicle commitment within three months from the date of receipt of the order. If reasons of failure to fulfil the commitment are beyond control of IPL, the same will be considered on case to case basis.
Transportation Rates

The transportation rates in `per ton payable shall be as per the rates given below. The rates shall be fixed and firm for entire period of contract except the revisions under clause nos. VI and X in Part A below. All payment will be made in Indian rupees and will be payable in India from our Jamshedpur Office. The rate table is as follows:

Jamshedpur to Delhi/Ghaziabad/Faridabad/Gurgaon/Kushkhera:

  • Volume upto 8,500 tpm – `3,795 per ton (from August 1, 2013 till October, 2013)
  • Volume 8,501 to 11,700 tpm – `4,230 per ton (from August 1, 2013 till October, 2013)
  • Single rate effective post ramp up or three months (whichever is later) – `3,934per ton

Jamshedpur to Nagpur:

  • Volume upto 1,500 tpm – `2,723 per ton (from August 1, 2013 till October, 2013)
  • Volume 1,501 to 2,300 tpm – `3,687 per ton (from August 1, 2013 till October, 2013)
  • Single rate effective post ramp up or three months (whichever is later) – `3,134per ton

The base freight rate as mentioned in Sl. No. 3 (`3,934 per ton for Delhi and `3,134 per ton for Nagpur) are subject to revision as per the Price Variation Clause (PVC) as mentioned in Clause X below after ramp up period.

Freight rate (`per ton) is based on the distance i.e., 1,375 Km for Delhi and 1000 km for Nagpur from Jamshedpur to destination cities as mutually agreed by both parties.

IPL is free to operate with/without backhaul for the specialised vehicles deployed for Solid Steel’s transportation job subject to fulfilment of service level requirement of Solid Steel.

In the event that a new destination, other than the destinations mentioned above, is requested by Marketing & Sales team of Solid Steel, IPL will arrange the movement maximum within one month time after completion of all necessary formalities/establishments.

Part A – Operational Terms and Conditions
I. Despatch Units

The Steel materials shall be transported direct to customers/stock-points/EPAs from Jamshedpur Works & Jamshedpur based EPAs. It may be noted that new EPAs/stock-points may be added and existing ones may be deleted depending upon company’s arrangements. Similarly, other destinations may be added to the list of customers as and when required by Solid Steel.

II. Tonnage to Be Despatched

Expected average volume to be dispatched will be 12,500 tons per month (tpm) for Delhi/Ghaziabad/Faridabad/Gurgaon/Kushkhera (North) and 2,500 tons per month for Nagpur (West) respectively. The volume mentioned above is indicative volume and does not amount any commitment from Solid Steel.

III. Fleet Requirement

Fleet requirement and load building for individual trip will be the responsibility of IPL to facilitate an average payload of 28.5 ton. IPL will provide vehicles of different carrying capacities (Model 4923: 33–34 tons, Model 4018: 27–28 tons & Model 3516: 22–23 tons) to arrive at the desired average payload of 28.5 tons. IPL will start deploying vehicles after receiving the order and will ramp up fully with additional vehicles which will be adequate to dispatch minimum 15,000 tpm [12,500 tpm for North (Delhi NCR & Kushkhera) and 2,500 tpm West (Nagpur)] from date of receiving the order by three months. Till such time that the ramping up of vehicle is not complete i.e., within 3 months of getting the order, IPL will forego the KPI review and any amount payable to them by Solid Steel on account of KPI movement. The actual ramp up is to be initiated after receiving due clearance from CSD-SSL.

IV. Transit Time

The allowed transit time from Jamshedpur to Delhi/Ghaziabad/Faridabad/Gurgaon/Kushkhera will be 4 days and for Nagpur will be 3 days, which is sacrosanct and will not be considered as a negotiable factor. However, performance of IPL in transit compliance would be reviewed against stipulated 3 days (refer Clause VI). Transit times are arrived at by subtracting GRN date & time from the invoice date & time. The lorry arrival date and the GRN date & time should be noted in IPL copy of lorry receipt by consignee representative. Penalty for non-adherence to the transit time will be as per clause no XI 1.

V. Service Level Requirements
  • 100% materials must be delivered within the specified transit time i.e., 4 days for Delhi/Ghaziabad/Faridabad/Gurgaon/Kushkhera and 3 days for Nagpur.
  • IPL has to place the vehicles for loading within 24 hrs of issue of stock transfer order (STO)/delivery order (DO).
  • 100% materials must be transported in Prairie Wagons type trailer approved by Solid Steel and should be fully covered during transit. Transporter shall follow the loading norms of Solid Steel and shall maintain the load restrain as given in the SOP issued by CSD.
  • All vehicles will be equipped with GPS from Solid Steel approved service provider for online consignment tracking.
  • Quality of service delivered should be such that the material delivered to Solid Steel’s customers/stockyard should be in the same condition as it was loaded at Jamshedpur.
  • IPL should ensure that materials are packed and covered as per norms defined by Solid Steel before leaving the Works/EPAs until it reaches the consignee. Any deviation in product packaging during loading at the loading points at Jamshedpur shall be brought to the notice of Head (Surface Transport) Customer Service Division (hereinafter referred to as “Head (ST)”) immediately.
  • IPL shall comply with all statutory compliance including the loading of the vehicles in accordance with the prescribed statutory limit or as notified from time to time under the Indian Motor Vehicles Act and the rules made there under or any other applicable provision. IPL will be solely responsible for any violation of the same.
  • Trans-shipment of any material enroute would not be allowed, unless a specific prior written approval from Head (ST) is obtained.
  • IPL should ensure that their adequate numbers of representatives are available for co-ordination with Solid Steel round the clock. Their representatives should be adequately trained and competent to carry out the duties and perform the function in relation to the provision of the services in an efficient, safe and environmentally conscious manner. Representative should collect the revised/latest Code of Conduct, safety norms, loading norms, etc., from Head (ST) and ensure compliance to the same.
  • IPL will provide uniform and safety items to their drivers as per the safety norms of Solid Steel.
  • Unless specifically asked by Solid Steel, all coils have to be transported in eye-horizontal condition to prevent edge damage during transit. Coils can be loaded eye-perpendicular to the trailer axles with prior approval of Head (ST).
  • IPL shall inform Head (ST), as well as the consignee within 12 hrs in the event of enroute breakdown about the nature of breakdown and likely number of hours of delay for further delivery of the consignment. In case delay is expected to be more than 24 hrs, IPL shall arrange alternative vehicles at their own cost for despatching the materials, subject to all service level requirements as per clause V.
  • Vehicles loaded with Solid Steel material shall not carry any other material/third party’s materials.
  • IPL shall provide information to Head (ST) about the incoming vehicle in next 48 hrs in advance.
  • IPL should comply with all Solid Steel’s operating requirements such as entry of vehicle details in VTS, advance information of vehicles, delivery report, etc., as per the advice of Head (ST) from time to time.
  • In case of product damage enroute, information should be given to Head (ST) immediately, and as per his advice should be delivered to nearest stockyard. In no case damaged material should reach directly to the customers.
  • All documents meant for customers should be carried properly in plastic folder.
  • Names, addresses, e-mail ID and contact phone numbers of the authorized representatives duly attested by IPL shall be submitted to the Head (ST) & Head, Logistics & EPA-Commercial, Procurement Division (hereinafter referred to as “Head (LEPAC)”).
VI. Key Performance Indicators & Performance Review

Performance of IPL will be reviewed jointly on a six monthly basis, based on the following Key Performance Indicators (KPIs), which are segregated into two separate sets:

  • Monetary KPIs – Performance variation from agreed target level for these KPIs will have monetary impact on either IPL or Solid Steel.
  • Non-Monetary KPIs – Performance variation from agreed target level for these KPIs will have no monetary impact on either IPL or Solid Steel, but will be reviewed for the further course of action.

Till such time that the vehicle ramp up is not complete (six months from the date of receipt of the order), KPI based performance review will be foregone by IPL.

1. Monetary KPIs

The parameters which will be considered as monetary KPIs, base target levels for those parameters, monetary impact for performance variation & other details are given below:

a. Daily lifting capacity: 500 tons (North – 415 tons & West – 85 tons)

  • Daily lifting capacity for IPL would be 500 tons which will be applicable after three months from the date of work order/LOI given to IPL or when IPL reaches full capacity as per ramp up plan provided, whichever is later.
  • If the material is not lifted within 24 hours after issue of STO/DO (within daily lifting capacity, as per ramp up plan) would be penalized @ `40/ton/day for each incidence.
  • Penalization for daily lifting capacity on the basis of 500 tons/day would start after 3 months from the date of order/LOI or volume ramp up to 15000 tpm.
  • Example: IPL lifts only 320 tons in a day after 6 months of starting the operation against issued volume of 360 tons for the day. Balance 15 tons (= 335 − 320) has been lifted by IPL after 3 days. So total amount to be deducted from freight bill of IPL for this incident = 15 × 40 × 3 = `1800. Additional volume issued to IPL for the day, i.e., 25 tons (= 360 − 335), would be carried over to next day’s issued volume.

b. Transit time (3 days)

  • Though performance of IPL in transit compliance would be reviewed against stipulated 3 days (for all destinations mentioned earlier), however IPL would be penalized @ `40/ton/day per incidence for late delivery beyond 4 days of transit period (through SAP system).
  • Penalization for this KPI will start volume ramp up of 14000 tpm or 3 months from IPL receive order for the contract.
  • Example: For any incidence when material is delivered after 6 days, where stipulated transit time is 4 days (without any specially assignable reasons beyond control), then total amount to be deducted from freight bill of IPL = `40/tons/day × 31.87 tons × (6 − 4) days = `2,550, where payload for that specific shipment is 31.87 tons.

c. Average loading time (9 hours – base)

  • The average loading time at various loading points inside Solid Steel works/EPAs under the proposed contract will be 9 hours.
  • This KPI will be monitored on a six monthly basis.
  • Variation in freight rate due to variation in average loading time will be `9/ton/hr. Loading time will be calculated from the time vehicle reported at the transport park/EPAs for loading to vehicle exit from the gate after completing all formalities. The loading data may be verified from GPS system.
  • Compensation/penalization for this KPI will be start after vehicle ramp up period, i.e., after three months of IPL receiving the work order/LOI.
  • If average loading time for the past 6 months is found to be greater than 9 hours in the half yearly review, then Solid Steel will compensate IPL by credit note. However, if average loading time is less than 9 hours, then IPL would give rebate to Solid Steel and Solid Steel will raise a debit note on IPL for the same. The debit/credit note would be based on new rate and actual volume transported for the period. The compensation/rebate mechanism is explained below with examples.
  • Example: If IPL starts operation from August 1, 2013, then first six-monthly performance review will be held in February 2014 for the six month period, August 2013 to January 2014.

Case I: If average loading time for the review period is found to be 9.5 hours against base average loading time of 9 hours, then IPL would be compensated back by issuing credit note as per the calculations given below:

Increase in average loading time over base loading time = (9.5−9) = 0.5 hours.

Adjustment in base freight rate for all destinations except Kushkhera for the next six months = 0.5 × 9 = `4.5/ton.

Thus freight rate for review period (6 months) for Delhi NCR will change from `3934/ton to `3939.5/ton.

Finally, Solid Steel to issue a credit note to IPL for the amount = 4.5 (`/ton) × Actual volume dispatched (ton) in the review period.

Case II: However, if during review it was found that average loading time for the past 6 months is 8.2 hours, then IPL would give rebate to Solid Steel for lower average loading time and a debit note will be issued on IPL as per the following calculations:

Reduction in average loading time over base average loading time = (9−8.2) = 0.8 hours.

Adjustment in base freight rate for Delhi NCR for the next six months = 0.8 × 9 = `7.2/ton.

Thus base freight rate for next 6 months will reduce from `3934/ton to `3926.8/ton.

Finally, Solid Steel to issue a debit note to IPL for the amount = 7.2 (`/ton) × Actual volume dispatched (ton) in the review period.

d. Average Payload (26 ton to 28.5 ton)

  • Base average payload will be 26 ton.
  • There will be a dead band between quarterly average payload of ≥26 tons to ≤28.5 tons for which no bonus-penalty provision will be applicable.
  • Average payload will be reviewed on a six-monthly basis and if average payload is less than 26 tons, then IPL would be compensated back or if average payload is more than 28.5 tons,then IPL will pay back to SSL through a mechanism of issuing debit/credit note based on the following formula:
    • For increase/decrease in average payload by 1 ton from base payload of 26 tons/28.5 tons, the transportation rate will increase/decrease by 4% of base rate or part thereof.
    • Compensation/penalization for this KPI will start after vehicle ramp up period, i.e., after three months of IPL receiving the work order/LOI or volume ramp up whichever is later. The following equation can be used for calculating impact of variation from base level for avg. loading time and avg. payload:

      R1 = R0 + [(L1−L0) × 9] + [(W0−W1) × 4% × R0],

      where,

      R0 = Base transportation rate (i.e., 3795 `/ton),

      R1 = Revised transportation rate for the review period,

      L0 = Base loading time (i.e., 9 hours),

      L1 = Average loading time for the review period,

      W0 = Base average payload (i.e., 26 tons if W1 < 26 tons and 28.5 tons if W1 > 28.5 tons),

      W1 = Average payload for the review period.

2. Non Monetary KPIs

The parameter(s) which will be considered as non monetary KPIs, base target levels for those parameters & other details are given below:

  • Average unloading time – 6 hours (base)
  • Base average unloading time at stock points/customer premises would be 6 hours.
  • Unloading time would be reviewed on a six-monthly basis.
  • If average unloading time increases beyond 6 hours, then next course of action would be mutually decided between Solid Steel & IPL.
VII. Basis of Freight
  • Unit for freight rates will be `/ton and would be inclusive of all applicable duties, taxes and levies/tolls, insurance, permits, etc., except service tax. Service tax will be applicable as per law and Solid Steel shall avail the cenvat credit. Freight rates have been derived on the basis of the KPIs detailed in clause VI above which will be reviewed on a half yearly basis except transit time.
  • Loading and unloading of Steel material would be done by the consignor & consignee respectively. In specific cases where IPL required undertaking the unloading of material at the stock yard or consignee, payment of the unloading charges, if any, will be done by the office of Head (Sales & EPA Accounts) of Solid Steel based on the certification of expenses by the respective Customer Account Manager (CAM)/Hub Manager of Solid Steel/EPA Manager. IPL needs to submit all supporting documents while claiming such expenses.
  • Any octroi payable for inward material to a hub/customer’s premises/EPAs shall be paid for by the customer and shall be to the customer’s account. Wherever IPL is required to make payment for octroi, the same shall be claimed by IPL from Solid Steel based on invoices raised by them enclosing the original receipt issued by the octroi authorities (to be certified by the respective Hub managers/CAMs/RFMs).
  • All transit risks shall be to the account of IPL.
VIII. Rates and Transit Times for New/Add on Destinations

Rates and transit times will remain same for the destination falling within a radius of 50 Km from the destinations mentioned in this contract subject to location of the new destination within the same state. The rates finalised shall be converted to ` per ton per Km and shall be used for calculation of rates for destinations beyond 50 Kms within same state. For destinations which are not in the same state, rate shall be finalized mutually.

IX. Diversion/Change in Destination as Mentioned in Invoice

Due to changed market conditions and/or any other unavoidable reasons, it might become necessary for Solid Steel to divert a consignment moving towards any destination to an alternate destination. IPL shall accordingly ensure delivery to the revised destination. Based on the change of destination indicated, IPL shall intimate Head (ST)/Regional Hub Manager regarding the revised destination and claim additional charges for the revision in destination, which shall be settled in contract administration process. If at all, there are any handling charges in such change over in destination, the same shall also be indicated by IPL duly supported by documentary evidence, for consideration. The concerned CAM has to certify the diversion as well as any handling charges paid by IPL.

X. Revision of Freight Rates Due to Price Variation Clauses (PVCs)

The negotiated base transportation rate (mentioned above) will be reviewed once in a quarter to adjust for the variation of the price of High Speed Diesel (HSD). Transportation rate will also be reviewed once in a year based on the variation of Wholesale Price Index (WPI). The details of both of these price variation clauses are given in the subsequent sections. Revised transportation rate based on PVCs will be determined as per the following formula: Revised Transportation Rate = Base Transportation Rate + Adjustment for diesel price variation (quarterly) + Adjustment for WPI variation (annually).

1. Price variation clause for diesel

It has been agreed between Solid Steel & IPL that average diesel consumption factor for the vehicles in the proposed contract will be 3.25 km/litre, considering both onward and return journeys. Base average diesel price has been agreed to be `51.38/litre for Delhi & NCR and `54.05/litre for Nagpur, which is simple average of the available high speed diesel (non-branded) prices at locations listed below as on June 1, 2013 (Source: IOCL website, www.iocl.com as on June 1, 2013).

Base Diesel Price for North (Delhi & NCR and Kushkhera)

Ranchi

– 52.50 `/litre

Lucknow

– 54.42 `/litre

Delhi

– 50.25 `/litre

Raipur

– 55.59 `/litre

The mechanism for transportation rate adjustment based on diesel price variation has been explained below:

  • Transportation rates shall be reviewed every quarter and shall be made effective from the first of the following months (April, July, October & January) for suitable adjustment based on the actual price (increase/decrease) of diesel and diesel consumption at the end of the quarter. The new rates would be rounded-up to the nearest whole number in `/ton and shall be made effective from the first day of the month for the following three month period (i.e., for the quarter). The new rates so finalized shall remain effective for a period of 3 months.
  • In case there is no change in the actual diesel price for period under review, the rate review will be done at the end of next quarter.
  • For a distance of 1375 km, diesel consumption for onward and return journey with average diesel consumption of 3.25 km/litre = 1375 × 2/3.25 = 846.15 litres.
  • At `51.38/litre base diesel price, diesel cost for one round trip = 51.38 × 846.15 = `43,575.
  • Diesel component in transportation rate considering average payload of 26 ton and base diesel price of `51.38/litre = 43,575/26 = `1672/ton.
  • For Kushkhera, `135/ton will be added to the freight rate obtained after adjusting for diesel price variation to base freight rate.
  • Example:
    • Simple average of non-branded high speed diesel prices for Ranchi, Lucknow & Delhi as on October 1, 2013 (sourced from IOCL website) is `55.05/litre (assumption).
    • Thus diesel cost for one round trip for the quarter July – September 2010 will be = 55.05 × 846.15 = `46,581.
    • Considering average payload of 26 ton, diesel component in freight rate will be = 46,581/26 = `1791.5/ton, which is greater by (1791.5−1672) = `119/ton from the base diesel cost component. So the freight rate for Delhi will be `4053/ton (`3934/ton + `119/ton)
    • For Kushkhera, effective transportation rate for the same period after adjusting for diesel price increase will be (4053 + 135) = `4188/ton. These rates will be effective from November 1, 2013.

2. Price Indexation with WPI

The following cost drivers would get an annual increase/decrease based on the variation of Wholesale Price Index (WPI) from a base WPI level:

  • Tyre cost,
  • Driver salary,
  • Establishment & administrative expenses.

The above mentioned components constitute approximately 15% of the base freight rate i.e., `3934/ton which would be subject to adjustment due to variation of WPI. Other details of this price variation clause are given below:

  • WPI in consideration is monthly WPI for “All Commodities”, published by the Office of the Economic Adviser, Ministry of Commerce, Govt. of India (Website: http://eaindustry.nic.in/).
  • WPI for the month of April 2013 will be considered as base WPI, which is 171.5 and this will be considered as base reference figure during the entire tenure of the contract.
  • Adjustment for WPI variation in transportation rate will always be done separately from the adjustment for diesel price variation.
  • It is to be noted here that for WPI adjustment, which will be done once in a year, calculation will always be done considering `3934/ton as the base transportation rate for all destinations during the tenure of the contract.
  • Most recently published WPI that is available one month prior to the anniversary date of contract will be considered for determining movement of WPI from the base WPI of 171.5 (WPI of April 2013).
  • Example:
    • First anniversary of the contract started on August 1, 2013 would be on August 1, 2014.
    • WPI for July 2014 is 180.41 (assumed).
    • Percentage increase in WPI from base level = (180.41−171.5)/171.5 = 5.19%.
    • Adjustment factor for variation in WPI from base in this case = 15% × 5.19% = 0.779%.
    • Adjustment in transportation rate for WPI variation (over base transportation rate) = 0.779% × 3934 = `30.65/ton.
    • The revised transportation rate for all destinations (except Kushkhera) from August 2014 will be (3934 + 30.65 ) = `3965/ton.
    • Revised transportation rate for Kushkhera from August 2014 = (3965 + 135) = `4100/ton.
XI. Penalty Provisions

The following penalty provisions will be in force during the tenure of the transportation contract.

  • Late delivery: For delay in delivery compared to the stipulated Transit time, unless the delay in delivery arises from an event of force majeure or any other cause beyond the reasonable control of IPL, there shall be a provision of penalty as mentioned in the table below:

    Delay (in days) Late Delivery Penalty from the date of invoice

    Beyond 4 days `40/– per ton per day for Delhi & NCR

    Beyond 3 days `40/– per ton per day for Nagpur

  • Indemnification: IPL will be solely liable and responsible for any violation of any statutory provision including that mentioned in the above clause V-8 as well as breach of any terms and condition of this Agreement and shall indemnify Solid Steel against all claims, demand made and/or any penalty/interest imposed by any authority or claimed by any third party/customer on Solid Steel including all expenses incurred or to be incurred or loss suffered by Solid Steel.
  • Solid Steel reserves the right to collect/gather information in any manner, which it may, deems fit and monitor on a periodic basis towards the compliance of the above by IPL. In case of non-compliance by IPL, Solid Steel may take appropriate action against any such breach/violation of the terms and conditions of this Agreement, against IPL after serving due written notice in this regard.
  • Damage to consignment: In case of damage to all or part of the consignment, IPL shall compensate Solid Steel for that damage up to a maximum of the invoice value of the consignment.
  • Lost consignments: Subject to clause 8 in relation to weigh scale variations, where part or all of a consignment is lost between the time of loading and unloading IPL shall compensate Solid Steel for that damage @ 1.5 times of invoice value of the consignment.
  • Loss/wrong delivery of documents: There would be penalty of `2000/– for any instance of loss of documents, wrong delivery of document (e.g., wrong vehicle no. in way bill and TC copy of other party etc.). In addition, the excise value as appearing in the invoice would be recovered from the bills of IPL till the revised documentation enables the consignee to credit to its account the relevant CENVAT amount. Adequate care shall be taken by IPL to ensure cautious carriage of documents in transit since these would be ownership documents along with excise documents, which are very important for subsequent transactions.
  • Unauthorized trans-shipment: Unauthorized trans-shipment of material will attract a penalty of `20000/– per incident.
  • Weigh scale variation: Permissible weigh scale variation shall be limited to a maximum 0.2%. For shortages beyond permissible limits, the value of shortfall in tonnage at 1.5 times the rate mentioned in the invoice document (CAI) plus the applicable taxes & duties and proportionate freight amount shall be recovered from IPL’s freight bill.
  • Violation of safety COC and security Norms: In case of violation of any safety/COC/security norms, the penalties will be applicable as per the Solid Steel rules circulated from time to time and all subsequent updating.
  • Risk purchase: In the event of failure to place the vehicles for lifting the material issued to IPL as per advance information, Solid Steel shall be at liberty to engage any other agency to transport the material by any mode of transportation and recover the differential amount from IPL’s bill.
  • Third party’s material: In case vehicle loaded with Solid Steel material carry any other material/third party’s material, in addition to the penalty for damage caused to the product, the freight bill for that consignment will not be payable to the transporter.
  • Non use of GPS: In case of vehicle running without GPS, a penalty of `100/– per day shall be levied. In case of break-down or non functioning of GPS, no complaint with regards to higher unloading time and detention shall be entertained.
  • Improper/inadequate covering: Covering/collapsible hood should be in proper condition at all times. Violation on this account will attract a penalty of `5000/– per incident.
Part B – Commercial Terms and Conditions
I. Certification of Receipt of Material

In case of direct dispatches to customers, the receipts will have to be certified by the customers and scanned copy of LR will have to be sent to Customer Account Manager (CAM) through mail for approval. The Goods Receipt Note (GRN) will be raised by the office of Head (Sales & EPA Accounts) based on the certification of receipts by the customer. In case of Stock transfer to the stockyards/EPAs, the transportation bills would require to be certified on the bill format by the Hub Manager/authorized signatory of Solid Steel, who will also raise the GRN.

II. Submission of Bills

Freight bills will be computed on the net weight of the consignment as mentioned in the CAI (Combined Advice-cum-Invoice) except for Cold Rolled (CR) sheets/packets which would be paid on gross weight (i.e., inclusive of weight of packing material). The bills should be submitted to Head (Sales & EPA Accounts) through Solid Steel web site along with scanned copy of the LRs and hard copy in the format finalized by them or as directed by them.

III. Terms of Payment

Payments would be made within 15 days from the date of receipt of bills, duly supported by consignment receipt note, to the office of Head (Sales & EPA accounts), Jamshedpur.

IV. Security Deposit

IPL will arrange to furnish a bank guarantee (BG) of `25 lakhs or 1% of yearly order value whichever is higher from any of the Nationalized bank/Scheduled Banks (approved by RBI) in favor of Solid Steel Limited in the format to be provided by Solid Steel, directly from their banker to be sent to Head (Sales & EPA accounts), Solid Steel, General Office Building, Commercial Centre, Jamshedpur which should be valid till the validity of contract plus six month claim period. In case of failure in respect to any of the terms & conditions, BG will be forfeited in full or in part depending on the severity of failure as per Solid Steel’s discretion.

V. Contract Administration

Grievances for genuine claims pertaining to various operational issues such as waiver of penalty, deduction on account of shortage, accidents, etc., shall be resolved on half yearly basis through a contract administration committee defined as under:

  • SSL representatives – Chief Procurement, Chief CSD, Chief (MRO & SS), Head (LEPAC), Head (ST), Head (SS)
  • IPL representatives – Director, Proprietor, Senior Executives of IPL must put their grievance in writing to Head (ST), who would be the convener of the above committee, within one month from the date of delivery otherwise their request will not be entertained. Decision of the committee shall be binding on both IPL and SSL.
VI. Compliance to Safety, Security & Statutory Norms
  • IPL must comply with the Solid Steel’s Safety, Security, and Statutory norms and abide by the same.
  • All representatives of IPL who enter Solid Steel premises should undertake appropriate induction and training programs in respect of the relevant safety and Security and Statutory standards as may be required from time to time.
  • All vehicles should comply with the safety and environmental standards as per statutory norms and as defined by Solid Steel. Order Continuation Sheet
VII. Code of Conduct

IPL will sign the “Code of Conduct” formulated by Solid Steel. In case of violation, the penalties (including suspension/blacklisting) will be applicable as per the Solid Steel rules and any subsequent up dation for performing contractual obligations under this contract.

VIII. Termination of Contract
  • Termination for cause: Solid Steel will monitor the performance of IPL against the Key Performance Indicators (KPI’s) which shall be agreed by the parties from time to time. Where IPL fails materially to meet the KPIs in any quarter (having regard to the frequency, impact and nature of the failures) the parties agree to meet to discuss the reasons for the failures and the steps that can be taken to improve compliance with the KPI’s. In the event that, subsequent to these discussions and implementation of any agreed remedial steps, IPL fails to implement a performance improvement plan Solid Steel may give IPL notice of termination for cause. Solid Steel will monitor the compliance to fundamental service level requirement. On failure to adhere to fundamental service level requirement for two consecutive reviews Solid Steel may give notice of termination for cause.
  • Termination for convenience: Solid Steel acknowledges that IPL will make a significant capital investment in order to provide services to Solid Steel pursuant to this contract. Where the scope of work contemplated by this contract is affected by changes to the operations of Solid Steel such as the closure or relocation of any plants or termination of contracts with Solid Steel customers, the parties will meet and Solid Steel must provide alternate vehicle utilization within its business so that there is no detriment to IPL.
  • Termination in case of bankruptcy/insolvency/winding up: If transporter becomes insolvent and bankrupt, faces with winding up proceedings by appointment of official liquidator; Solid Steel is at liberty to terminate the contract forthwith without assigning any reason. In such cases, Solid Steel shall have the right to receive damage/compensation from IPL.
IX. Arbitration
  • All disputes and/or differences that might at any time arise by and between the parties hereto or in relation to or touching upon any aspect of this agreement shall first be settled mutually by negotiations between themselves.
  • In case no settlement can be arrived at within the period of 30 days from the date of raising the dispute in writing by any party, the dispute or difference shall be referred to a Sole Arbitrator, if both the parties agree upon the same. In case it is not agreed to, the dispute or differences will be referred to three arbitrators, each party appointing one on its behalf and the two arbitrators so appointed by the parties shall, before entering upon the reference, appoint the third arbitrator who shall act as the presiding arbitrator. The provisions of Arbitration and Conciliation Act, 1996 and the amendments made from time to time and the rules prescribed there under shall be applied. The venue of arbitration shall be at Jamshedpur, Jharkhand, India.
X. Jurisdiction

Solid Steel and IPL hereby agree that any dispute or difference of any nature in this agreement, whether implied or explicit, shall be adjudicated upon by a competent Court at Jamshedpur, in the State of Jharkhand. The applicable laws of India shall be binding between parties.

XI. Force Majeure

The failure or delay to perform any obligations under this agreement by either party solely by reason of Act of God, acts of government, riots, wars, revolts, fire, flood, sabotage, strike (including Bandh), lockout, closure of plant (part or full) for economic or other reasons or other causes beyond its reasonable control (Force Majeure) shall not be deemed to be a breach of this agreement. Either party failing to perform its obligation due to the reason of Force Majeure shall serve notice in writing to other party of such Force Majeure as soon as possible within 3 (three) days after its concurrence. Party failing because of Force Majeure to perform its obligation will, upon the cessation of Force Majeure, take all reasonable steps within its power to resume, with the least possible delay and comply with its obligations. If the Force Majeure continues for more than 180 days then both the parties shall decide in writing to short close the contract settling their respective dues in terms of the agreement.

XII. Non Assignment and Non Subcontracting

IPL shall not assign or sublet or subcontract this agreement or any part thereof or any of their obligations to any other party without prior written approval obtained from Solid Steel. However the agreement between IPL and Solid Steel is non exclusive and Solid Steel may assign its obligation under this contract or part thereof to any other party due to financial reasons or unsatisfactory performance of IPL.

XIII. Consequential Loss

Neither party shall be responsible to other party towards any consequential, indirect loss or loss of profit under this Agreement.

Contract Item Service Conditions:

Unit Price/Tons INR

Item Charges

Delivery Terms: For each unloading point you need to give separate challans.

Payment Term: 100% within 15 days of submission of Challan & Invoice to department head

Order Ceiling Value: 593,500,000.00 INR

Collection Centre:

To bring about improvements in the logistics system inside Works, and strengthening the road safety standards, following safety measures are implemented for any work inside the steel works, with effect from September 1, 2008:

  • All 4 wheelers must have seat belts on the rear seat, and persons sitting on the rear seats must fasten the seat belts.
  • The speed limit on main roads reduced to 35 kmph. Accordingly, the speed monitoring camera shall be set at 35 kmph. The existing speed limit of 16 kmph on the other roads shall remain unchanged.

Plant: 9000 Miscellaneous Plant

General Instructions: Sales tax in no case will be borne by the Steel Company.

SA8000 (Social Accountability) Norms: It is mandatory for you as Contractor/Transporter/Supplier/any other kind of service provider to Solid Steel to comply with SA 8000 norms as per the check list submitted by you to us. Non-compliance of the same, detected at any point of time may lead to cancellation of order or any other action or both as deemed fit by Solid Steel.

For Solid Steel Limited

Mr X; Authorised Signatory

Print Date: August 21, 2013

Source: Company data

Exhibit 2: Tata LPS 4018

Engine

Model

Tata Cummins B 5.9 BSIII

Max. Engine Output

179 HP @ 2500 rpm

Max. Torque

675 Nm @ 1400–1600 rpm

Clutch

Type

Single plate Dry friction Push type

Size

380 mm Diameter

Gear Box

Model

Tata G – 750 with Twin Synchro cone

No. of Gears

6 Forward, 1 Reverse

Rear Axle

Model

Heavy Duty Single reduction Axle

Front Axle

Type

Heavy Duty Forged I Beam, Reverse Elliot Type

Steering

Type

Hydraulic assisted Power Steering

Ratio

20.2:1

Brakes

Service Brakes

Full Air S Cam Brake System

Chassis Frame

Type

Best-in-class ladder type Heavy Duty Frame with riveted/bolted cross members

Size

Frame 285 mm × 65 mm × 7 mm

Suspension

Front

Semi Elliptical Leaf Spring

Rear

Semi Elliptical Leaf Spring

Tyres

Size

10.00 R 20 – 16 PR Radial Tyres – Primover

Fuel Tank

Capacity

400 ltrs Single Rectangular Tank

Cabin/Cowl

Cabin

All Steel Full Forward Control Sleeper Cabin

Electrical System

System Voltage

24 Volts

Alternator Capacity

45 Amps

Performance

Max. climbing ability

19.69%

Max. speed in top gear

70 kmph

Weight

Max. permissible GVW

40200 Kgs

Vehicle Kerb Weight

14150 Kgs (Appox.): 24 Cum

15620 Kgs (Appox.): 28 Cum

Cost

`34,00,000

Figure

Source: Retrieved from http://www.construck.tatamotors.com/tip-trailers/lps-4018.aspx on November 04, 2014

Exhibit 3: Tata LPS 4923

Engine

Model

Tata Cummins B 5.9 BSIII

Max. Engine Output

215 Hp @ 2400 rpm

Max. Torque

835 Nm @ 1300–1500 rpm

Clutch

Type

Single plate Dry friction Push type

Size

380 mm Diameter

Gear Box

Model

Tata G – 1150 9 Speed Gearbox with CRAWLER gear

No. of Gears

9 Forward, 1 Reverse

Rear Axle

Model

Heavy Duty Single Reduction Axle

Front Axle

Type

Heavy Duty Forged I Beam, Reverse Elliot Type

Steering

Type

Hydraulic assisted Power Steering

Ratio

20.2:1

Brakes

Service Brakes

Full Air S Cam Brake System

Chassis Frame

Type

Best-in-class ladder type Heavy Duty Frame with riveted/bolted cross members

Size

Frame 285 mm × 65 mm × 7 mm

Suspension

Front

Semi Elliptical Leaf Spring

Rear

Bogie Suspension

Tyres

Size

10.00 R 20 – 16 PR Radial Tyres – Primover

Fuel Tank

Capacity

600 Ltrs (2 × 300)

Cabin/Cowl

Cabin

All Steel Full Forward Control Sleeper Cabin

Electrical System

System Voltage

24 Volts

Alternator Capacity

45 Amps

Performance

Max. climbing ability

23.00%

Max speed in top gear

82.6 kmph

Weight

Max. permissible GVW

49000 Kgs

Vehicle Kerb Weight

17900 Kgs (Appox.): 28 Cum

18320 Kgs (Appox.): 32 Cum

Price

`43,20,000

Figure

Source: Retrieved from http://www.construck.tatamotors.com/tip-trailers/lps-4923.aspx on November 04, 2014

Exhibit 4: Proposal to the Board of IPL

(i) Approval Note in Connection With Purchase of 45 New Special Vehicles to Support Return Load From Delhi NCR to Maximize the Profitability

(Source: Annexure forming part of the Board agenda for the meeting dated September 5, 2014, IPL)

“Background: On May 1, 2010, we were awarded by Solid Steel to lift 10,000 ton through special vehicles. This contract was valid upto July 31, 2013. This contract was renewed further upto July 31, 2015 for lifting of 15,000 ton per month. On past performance and with mutual understanding, it is agreed for further extension of this contract for three more years with increased rate and quantity.

We had to lift 15000 ton per month but with existing 174 special vehicles we could only manage to lift 12800 ton (based on average from April 2014 to July 2014). To cope up with shortage of 2200 ton (15000 ton–12800 ton) we need more special vehicles. Presently we plan to go for 45 new vehicles and we may proceed further with more buying considering the performance and handling pressure from Solid Steel.

An investment of `19.44 Crore is required to execute the project. To describe further, `18.90 Crore is needed for purchase of vehicles and `54 lakh will be paid for Insurance & Registration of these vehicles.”

(ii) Proposal for Purchase of 45 Number of 4923 Special Vehicles With Investment of `18 Crores for Deployment With SSL to Ensure Maximum Return Load

(Source: Minutes of Board Meeting dated September 5, 2014, IPL)

“The Company Secretary apprised that the projection sheet has been deliberated to the Capital Expenditure (Capex) Committee as well as to the Board Members. Capex proposal is the Reserved Board matter wherein approval of Private Equity (PE) partner is required. The Board was apprised that the query has been raised by Shri AB as to the past performance under the contract as compared to the projection, Project IRR, Payback period, ROCE, Cash flow analysis, Debt Equity ratio post approval of the Capex. The Chairman desired that there is the Work order term in the Work order issued by SSL wherein Company has to carry load of 15,000 tpm. However, due to inadequate fleet strength full load was not being carried resulting which Company has to pay penalty on monthly basis.

The Company Secretary apprised that Capex Committee and the Board had already approved Capex in last FY. However the same was not incurred due to recessionary trend and thereafter there was the discussion in the Fleet Committee, Capex Committee and the Board to take decisions for new Capex post review of the Fleet performance. The Chairman desired that apart from PE members, other members should share their views to which Shri CD desired that the fleet data based on the project including consignment margin and profit through hired vehicles as part of the work order should be shared. All Independent Directors shared their views in favour of the proposal keeping in view the work order requirement; however desired that the financial viability as sought by PE should also be evaluated. The Company Secretary was advised to share the financial viability with the Capex Committee as well to the Board.

It was decided that the proposal of Capex will be put up in the next Board Meeting.”

After the aforementioned meeting on September 5, 2014, one of the Independent Directors asked the following questions (questions in bold and answers received in standard font):

1. Basis for current fleet deployment of 174 vehicles, with planned time for each circuit. What is the actual time for each circuit, with reasons for variation?

Reply: All these 174 vehicles are deployed on Jamshedpur to Delhi – NCR & Nagpur route. Month wise brief description of vehicle’s deployment on these routes has been displayed in below chart. Scheduled time for each route is fixed for 4 days. Based on above chart average Timely Delivery percentage for JMS – Delhi NCR route is 84% & for JMS-NGP route is 68%.

Jamshedpur (JMS) to Delhi NCR

Month

Timely Delivery

Not Timely Delivered

Total Consignments

Timely Delivery (%)

April 2014

322

51

373

86

May 2014

271

38

309

88

June 2014

311

52

363

86

July 2014

291

68

359

81

August 2014

298

88

386

77

JMS to Nagpur (NGP)

Month

Timely Delivery

Not Timely Delivered

Total Consignments

Timely Delivery (%)

April 2014

100

20

120

83

May 2014

66

34

100

66

June 2014

60

28

88

68

July 2014

62

32

104

60

August 2014

60

34

94

64

2. Price we get from SSL, our operating cost on fleet and investment cost for the current fleet.

Reply: We are operating at two routes; detail for both the routes is as follows:

  • JMS to Delhi NCR. Price @ `4,110, Operating cost: @ `39,150 for 4018 & @ `44,550 for 4923
  • JMS TO NGP. Price @ `3,238, Operating cost @ `34,550 for 4018 & @ `39,550 for 4923
3. Do we need more fleet to meet our commitment, even if we return empty?

Reply: SSL’s work order is manageable with 174 vehicles but we will have to compromise with empty return resulting loss of `1.57 Crore.

4. If return load is an opportunity, what is the additional time for the circuits? Hence, additional fleet required? Additional income, costs and investment?

Reply:

  • Opportunities at Gurgaon, Panipat, Haridwar and Rudrapur.
  • As far as additional time is concerned, Panipat and Gurgaon will be managed on same day while Haridwar and Rudrapur may take one day extra time.
  • Presently we are managing 174 vehicles doing 474 trips per month, of which 160 trips had a return load. After addition of new fleet of 45 vehicles 4923), total vehicles will be 219. We plan to retain the 174 vehicle’s schedule unchanged and 100% return load for 45 new vehicles.
  • Revenue generation, additional income, cost and investment for current and next FY (already circulated and discussed in earlier meetings.
5. What are the risks on the return load assumption? Feasibility of guarantees?

Reply: Opportunities at Gurgaon, Panipat, Haridwar and Rudrapur was widely discussed in fleet meeting and it is resolved that there is plenty of opportunity of getting full load every time.

6. Are there long term issues which will affect the vehicle productivity?

Reply: The prospects are positive:

i. RTO Issue Might Be Sorted Out Soon

RTOs will be scrapped soon, says Gadkari 1

Posted on August 19, 2014 by TNN

PUNE: Union minister of road transport and highways Nitin Gadkari on Monday said the central government was in the process of bringing in a law to scrap regional transport offices (RTO) and replacing them with an efficient alternative system in the next few months. Gadkari, who was delivering the J. S. Karandikar memorial lecture organized by the Pune Union of Working Journalists (PUWJ) here, said, “There are some outdated laws and systems which need to be scrapped. Systems like RTOs will soon be abolished; there is no need for RTOs. We have prepared a law which will be introduced soon to replace RTOs.” Alleging harassment of citizens at the RTOs, Gadkari said, “Tithe Laxmi darshan acha khel chalto (money rules there).”

ii. GST Implementation Would Ease Operations

India makes progress on GST implementation 2

Posted on August 22, 2014 by India Briefing

DELHI: India moved closer towards implementing a Goods and Services Tax (GST) with the conclusion of the latest meeting by the Empowered Committee of State Finance Ministers this Wednesday. While numerous hurdles remain, central and state Finance Ministers agreed on several important items that are expected to speed up the implementation process. The proposed GST will replace several existing taxes, including the central level excise tax and service tax, and state level VAT, entertainment tax, lottery tax and electricity duty, with one single tax, thus facilitating the consolidation of a single market across the country and allowing for greater supply chain efficiency and economies of scale. Full implementation of GST could raise India’s GDP growth by 0.9 to 1.7 percent, according to the National Council of Applied Economic Research (NCAER).

Exhibit 5: Load Transported by IPL

April to July 2014

Destination

Vehicle

No. of vehicles

Weight carried (per tripper vehicle) from Jamshedpur (tons)

No. of trips per vehicle per month

Total weight carried per month (tons)

RL

North

4018

10

24

2

480

North

4923

38

30

2

2,280

West

4018

31

24

2

1,488

West

4923

1

30

2

60

NRL

North

4018

35

24

3.4

2,856

North

4923

46

30

3.4

4,692

West

4018

13

24

3

936

Total

174

12,792

Hurdles to increasing the number of round trips in a month

(Source: Observations by IPL from daily tracking)

  • On the trip up north, vehicle held and delayed by RTO at Uttar Pradesh
  • The route to the west passes through a hilly area, for around 250 km in Chhattisgarh, traversing which causes delay
  • Night driving is avoided in Chhattisgarh because of Naxal threat
  • Drivers’ personal issues

Source: Company data

Exhibit 6: Route Details

Jamshedpur to Faridabad to Rudrapur to Jamshedpur

From

To

Load per vehicle (tons)

Distance (km)

JMS

FBD

30

1350

FBD

RDR

280

RDR

JMS

30

1250

Total distance – 2880

Jamshedpur to Faridabad to Rudrapur to Kolkata to Jamshedpur

From

To

Load per vehicle (tons)

Distance (km)

JMS

FBD

30

1350

FBD

RDR

280

RDR

KLK

30

1375

KLK

JMS

250

Total distance – 3255

Jamshedpur to Faridabad to Panipat to Kolkata to Jamshedpur

From

To

Load per vehicle (tons)

Distance (km)

JMS

FBD

30

1350

FBD

PNP

150

PNP

KLK

30

1600

KLK

JMS

250

Total distance – 3350

Jamshedpur to Faridabad to Gurgaon to Kolkata to Jamshedpur

From

To

Load per vehicle (tons)

Distance (km)

JMS

FBD

30

1350

FBD

GGN

80

GGN

KLK

30

1550

KLK

JMS

250

Total distance – 3230

Source: Annexure forming part of the Board agenda for the meeting dated November 5, 2014, IPL

Exhibit 7: Route Map

Figure

Exhibit 8: Routewise Monthly Gross Margins

1

2

3

4

5

6

7

8

9

10

11

From

To

Load carried per trip (tons)

Distance (km)

Freight rate per ton (`)

Total freight per trip (`) (col 3 × col 5)

Variable cost 1 per km (`)

Total variable cost (`) (col 4 × col 7)

Gross margin per trip (`) (col 6 – col8)

No of trips per month

Monthly gross margin per vehicle (`) (col 9 × col 10)

Jamshedpur-Faridabad-Rudrapur-Jamshedpur

JMS

FBD

30

1,350

4,110

1,23,300

33.0

44,550

FBD

RDR

280

21.5

6,020

RDR

JMS

30

1,250

2,600

78,000

33.0

41,250

Total

2,01,300

91,820

1,09,480

2

2,18,960

Jamshedpur-Faridabad-Rudrapur-Kolkata-Jamshedpur

JMS

FBD

30

1,350

4,110

1,23,300

33.0

44,550

FBD

RDR

280

21.5

6,020

RDR

KLK

30

1,375

2,600

78,000

33.0

45,375

KLK

JMS

250

21.5

5,375

Total

2,01,300

1,01,320

99,980

2

1,99,960

Jamshedpur-Faridabad-Panipat-Kolkata-Jamshedpur

JMS

FBD

30

1,350

4,110

1,23,300

33.0

44,550

FBD

PNP

150

21.5

3,225

PNP

KLK

30

1,600

2,600

78,000

33.0

52,800

KLK

JMS

2,50

21.5

5,375

Total

2,01,300

1,05,950

95,350

2

1,90,700

Jamshedpur-Faridabad-Gurgaon-Kolkata-Jamshedpur

JMS

FBD

30

1,350

4,110

1,21,500

33.0

44,550

FBD

GGN

80

21.5

1,720

GGN

KLK

30

1,550

2,600

78,000

33.0

51,150

KLK

JMS

250

21.5

5,375

Total

2,01,300

1,02,795

98,505

2

1,97,010

1. Variable Cost includes fuel and expenses for driver.

Source: Annexure forming part of the Board agenda for the meeting dated November 5, 2014, IPL

Exhibit 9: Other Costs of Operation

Monthly route characteristic based semi variable cost per vehicle (`)

Vehicle

Carrying

Destination

No. of trips per vehicle

General expenses

Tyre cost

Total

4923

RL

North

2

15,000

27,000

42,000

West

2

12,000

18,000

30,000

NRL

North

3.4

15,000

30,900

45,900

West

12,000

20,200

32,200

4018

RL

North

2

15,000

20,000

35,000

West

2

12,000

15,000

27,000

NRL

North

3.4

15,000

24,700

39,700

West

3

12,000

16,200

28,200

Monthly fixed costs per vehicle (`)

Vehicle

Driver salary

Maintenance cost

Insurance

Tax

Interest

Depreciation

Total

4923

20,000

15,000

5,600

4,200

22,750

42,000

1,09,550

4018

20,000

11,800

4,400

3,300

17,900

33,000

90,400

Source: Company data

Notes

1. Source: Excerpted from an article dated August 19, 2014 on the Times of India website – http://timesofindia.indiatimes.com/india/RTOs-will-be-scrapped-soon-says-Gadkari/articleshow/40383360.cms – Retrievedon November 6, 2014

2. Source: Excerpted from an article dated August 22, 2014 on the India Briefing website – http://www.india-briefing.com/news/indian-gst-deal-paves-tax-reforms-8938.html/ – Retrieved on November 6, 2014

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