Annexure 1 Contract Specifications of Sugar M -30 ... - Cmlinks.com

DeliveryDelivery unit 10 MT (with tolerance limit of (+/-5%)Delivery center Designated warehouse within 50 km. Of Delhi MunicipalLimits.Additional Delivery Muzaffarnagar, Kanpur, Sitapur, Gorakhpur, Ludhiana,CentersKolkata, Belgaum, Solapur and Pune up to 50 km ofmunicipal limits and Kolhapur up to 100 kms radius.Including all taxes and expenses as and where applicable.Delivery at Belgaum, Solapur, Pune and Kolhapur will beat a discount of Rs 150 per quintal. While delivery atother centers will be at par.Delivery periodmarginQualityspecificationsAdditional DeliveryGrade15% on the quantity marked for delivery.Sugar in crystal form manufactured by vacuum pan process.Grade MGrain Size Medium as determined by themethods prescribed in IS:498-2003ICUMSA Maximum of 200 ICUMSA asdetermined by ICUMSA GS 9/1/2/3-8, prescribed in Sugar AnalysisICUMSA Methods BookPolarization 99.80% minimum on dry basisMoisture 0.08% maximumForeign Less than 0.20%MatterCrop year Only sugar of current year is allowedreference for deliveryGrade SGrain Size Small as determined by themethods prescribed in IS:498-2003ICUMSA Maximum of 150 ICUMSA asdetermined by ICUMSA GS 9/1/2/3 -8, prescribed in Sugar AnalysisICUMSA Methods BookPolarization 99.80% minimum on dry basisMoisture 0.08% maximumForeign Matter Less than 0.20%Crop year Only sugar of current year isreference allowed for deliveryDiscount of Rs 50 per quintal is applicable for deliveringSugar of S GradePackingDelivery option10 MT net basis packed in 50 kgs new A Twill Bags/PP bags.Also deliverable in 100 kgs new A Twill/jute bagsCompulsory

Delivery and Settlement Procedure of Sugar M -30 (Medium Grade)Annexure 2Delivery logicDelivery ModeTender PeriodDelivery periodTender notice /Delivery Pay-inMode ofcommunicationIncremental MarginDelivery PeriodMarginExemption fromDelivery PeriodMarginDelivery allocation- Date- RateDelivery pay-inPay-in of fundsDelivery pay-outPay-out of fundsPenal provisionCompulsory DeliveryCompulsory DematLast 5 working days of the contract expiry and 1 st working dayafter expiry of the contractTwo working days after expiry of the contractThe Seller Clearing Member will have to send a request to hisDP to deliver the commodity to the exchange as per thescheduled delivery pay in day.Any outstanding positions will be marked for delivery at theexpiry of the contract.Fax or courierDuring last 5 days of the contract, tender period margin will beincreased by 3% every day (a total of 15% margin on last day).Such margin will be imposed on both buy & sell open positionsand will be in addition to the initial/daily margin, special and/ orany other additional margins, if any.15% on quantity marked for delivery.Delivery Period Margin is exempted after delivery pay in isreceived by the exchange in its CC pool account during thetender period.On contract expiry dateAt DDR (Due date rate)E+1 working day by 5.00 p.m. (E – Expiry date).(Accordingly,the members are required to submit the delivery instructions totheir DPs well in advance so as to adhere to the pay-in time ofdelivery)E+2 working days by 11.00 a.m.E+2 working days by 5.00 p.m.E+2 working days after 2.00 p.m.In case the buyer opts for second sampling the funds pay-outwill be done only after completion of sampling procedure butnot later than 2 working days after the delivery pay-out.I – Seller DefaultAny seller having open position on the expiry date fails todeliver on the next day then a penalty of 3% of DDR shall beimposed on such defaulting seller.Out of which 1.75% will be deposited to IPF, 1% of penalty willbe given to the buyer & balance 0.25% will be retained by theExchange.Additionally, the difference between the DDR & the average ofthe three highest last spot prices of the five succeeding daysafter the Exp iry of the contract (E+1 to E+5 days) if the averageprice so determined is higher than DDR.

II – Buyer DefaultThe buyer will have to compulsorily take the delivery of goods.Default on taking delivery by the buyer is not permitted andtherefore, the amount due from the buyer for delivery obligationshall be recovered from the buyer as pay-in of funds onstipulated pay-in day. Failure to discharge the pay-in amountwill be treated as pay-in default which may lead to deactivationof the trading terminal/s of the member and will also be liablefor such other actions as Exchange deems appropriate.Exchange, as deemed appropriate, shall have the right tosell/dispose the goods through auction (or through otherappropriate mechanism as and when required) on account ofsuch defaulting buyer to recover the dues.Penalties & charges to be debited to defaulting Buyer:S. Where AuctionNo is fullyconducted1 Penalty @ 3%on DDRAND2 Differencebetween DDR &Auction price ifAuction price islower than DDR(includingproportionatequality andquantitydifferences)Where Auctionis partlyconductedPenalty @ 3%on DDRANDDifferencebetween DDR &Auction price ifAuction price islower than DDRto the tune ofauctionedquantity(includingproportionatequality andquantitydifferences)ANDAND3 NA Differencebetween DDRand the averageof the threelowest last spotprices of the fivesucceeding daysafter the Expiryof the contract (E+1 to E+5 days) if the averageprice sodetermined islower than DDR.Where noAuctionis conductedPenalty @ 3% onDDRANDNAANDDifferencebetween DDRand the averageof the threelowest last spotprices of the fivesucceeding daysafter the Expiry ofthe contract ( E+1to E+5 days ) ifthe average priceso determined islower than DDR.

Taxes, Duties, Cessand LeviesDue Date RateOdd lot TreatmentLocation Premium/DiscountWarehouse,fumigation,insurance andtransportationChargesBuyer’s option forlifting of DeliveryDelivery CenterAdditional DeliveryCenterDelivery OrderDelivery GradesOut of penalty of 3%, 1.75% will be deposited to IPF, 1% ofpenalty will be given to the seller & balance 0.25% will beretained by the Exchange.Whereas, out of the close out amount for un-auctioned quantityas mentioned above, 90% will be credited to the counter partyand 10% of the same will be retained by the Exchange towardsadministrative expenses.The seller will pay Entry Tax or Sales Tax or VAT, whichever isapplicable and the seller will issue invoice in the name of thebuyer, reflecting the Entry Tax or Sales tax or VAT paid by him.Post lifting delivery charges are borne by the buyer. Includingall taxes and expenses as and where applicable.Due Date Rate is calcu lated on the last day of the contractmaturity. This is based on last day’s spot price. For obtainingthe prices of spot market, the Exchange will take the pricesfrom a panel of mills, dealers and brokers and take the averageof such prices.Not applicableDelivery at Belgaum, Solapur, Pune and Kolhapur will beat a discount of Rs 150 per quintal. While delivery at othercenters will be at par.-Borne by the seller up to commodity pay-out date-Borne by the buyer after commodity pay-out dateBuyer will not have any option about choosing the place ofdelivery and will have to accept the delivery as per allocationmade by the Exchange.Designated warehouse within 50 km of Delhi Municipal LimitsMuzaffarnagar, Kanpur, Sitapur, Gorakhpur, Ludhiana,Kolkata, Belgaum, Solapur and Pune up to 50 km ofmunicipal limits and Kolhapur up to 100 kms radius.Including all taxes and expenses as and where applicable.Good delivery order will be submitted in specified format givingdetails of Members / Registered Non-Members who shallperform delivery.Each delivery order (ICIN) issued shall be in multiples ofminimum delivery lots and shall be designated for only onedelivery center and one location in such center.Further, the goods being delivered under the said ICIN shouldbe valid at least for a period of 15 days after the expiry / payoutof the contract.Delivery order once submitted cannot be withdrawn orcancelled or changed unless so agreed by the Exchange inwriting.The members tendering delivery will have the option ofdelivering such grades of goods as permitted by the Exchangeunder the contract specifications. The buyer will not have anyoption to select a particular grade and the delivery offered bythe seller and allocated by the Exchange shall be binding onhim.

Evidence of Stock inpossessionEndorsement ofDelivery OrderSampling andAnalysis at the timeof DeliverySampling ProcedureFailure of FirstSampleFinal Surveyor’sReportAt the time of issuing the delivery order, the member mustprove to the Exchange that he holds stocks of the quantity andquality specified in the delivery order at the declared deliverycenter. This should be substantiated by way of producingwarehouse receipt.The buyer member can endorse delivery order to a client orany third party with full disclosure given to the Exchange.Responsibility for contractual liability would be with the originalassignee.In case the buyer does not agree to the Surveyor's report as tothe quality of the commodity, he shall desire for secondsampling and intimate the Exchange in writing within 72 hoursof the pay-out date.The system of drawing of samples tendered for delivery will beas prescribed in the Bureau of Indian Standards procedure..Three Samples shall be drawn as under:• First Sample - for the buyer• Second Sample - for the seller• Third Sample - for final reference, if it becomesnecessaryIf the first sample collected by the buyer and analyzed by thesurveyor appointed by him, conforms to the specifications, thenthe goods tendered for delivery shall be accepted and nosubsequent claims from the buyer regarding quantum of rebateor any other indemnification shall be admissible nor sellersshall be obliged to pass any sealed samples to the buyer ifrequested subsequently. The sampling methods to be adoptedfor analysis will be decided by the Exchange.If the first sample as examined by the buyer's surveyor fails toconform to the quality standards specified, the buyer shallintimate the seller within 72 hours of collection of sealedsample along wi th a copy of the analyst's report. The sellershall immediately send the second sealed sample to anapproved laboratory, which is also agreed by the buyer. Theresult of the same shall be binding on both the parties. In theevent the buyer and seller do not mutually reach agreementwith the results of the second sample test, then the Exchangeshall send the third sealed sample to any one of the approvedlaboratories / surveyor, as decided by the Exchange.The analyst's report of the approved and agreed independentlaboratory shall be forwarded by the Exchange to the partiesimmediately on receipt of the same. In such case, the finalpayment to the seller will be made on the basis of test reportreceived by the Exchange pursuant to th e third test. TheExchange will also direct the party, in whose favour the resultis declared to collect the cost of tests and detention chargesfrom the other party. In case the commodity stands rejectedthen it will tantamount to failure on the part of the seller to givedelivery, which shall be closed out as per the due date ratetreating the same as shortage.

Obligations of theIndependent AnalystLegal ObligationExtension ofDelivery PeriodApplicability ofBusiness RulesIn order to ensure that tests are exactly comparable and thatthe results are consistent, the independent analyst shalldetermine the particular analytical test by applying the methodsspecified in relevant IS. The analyst shall be required toappend a certificate to that effect to the analysis report issuedby him.The member will provide appropriate tax forms whereverrequired as per law and as customary and neither of the partieswill unreasonably refuse to do so.As per the Exchange decision due to a force majeure orotherwise.The general provisions of Byelaws, rules and Business Rulesof the Exchange and decisions taken by Forward MarketsCommission, Board of Directors and Executive Committee ofthe Exchange in respect of matters specified above will form anintegral part of this contract. The Exchange or FMC as thecase may be further prescribe additional measures relating todelivery procedures, warehousing, quality certification,margining, risk management from time to time.The buyer shall have to lodge their claim against quality ofgoods / delivery allocated to them, if any, within 48 hours fromthe date of scheduled pay out of the Exchange and failingwhich, no claim shall be entertained by the Exchangethereafter. (The interpretation or clarification given by theExchange on any terms of this contract shall be final andbinding on the members and others.)