TENDER DOCUMENT

FOR

HAULING PHOSPHORIC ACID FROM

CHENNAI PORT TERMINAL TO

MFL PLANT AT MANALI

2009-2010

PRODUCTION DEPARTMENT MADRAS FERTILIZERS LIMITED

MANALI, CHENNAI 68

Ph: 25941001 / 25941201 (10 lines) Fax: 25940005 / E-mail: dgmprodnsec@madrasfert.com

Tender No HPAT/2009

May 27 2009

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MADRAS FERTILIZERS LIMITED MANAL.I : CHENNAI – 600 068

TENDER FOR HAULING PHOSPHORIC ACID THRU PRIVATE CONTRACTOR

TABLE OF CONTENTS Sl.No. Description Page No.

1 PRESS AD 2 2 WEBSITE 3-4 3 TENDER SUBMISSION FORM 5 4 PART I INVITATION TO TENDER 6 5 PART II GENERAL INSTRUCTIONS 7-10 6 PART III TERMS AND CONDITIONS 11-16 7 PART IV DUTIES & RESPONSIBILITIES 17-18 8 APPENDIX I INFORMATION ABOUT TENDERERS 19 9 APPENXIX II SPECIMEN AGREEMENT 20-21

10 APPENDIX III SPECIMEN BANK GUARANTEE 22 – 24 11 APPENDIX IV SPECIMEN OF RATE BID FORM 25

ISSUED TO : M/s DATE ISSUED ; SIGNATURE OF MFL OFFICIAL :

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PRESS AD

MADRAS FERTILIZERS LIMITED

(Govt. of India Undertaking) MANALI, CHENNAI – 600 068

Ph: 25941001 / 25941201 (10 lines) Fax: 25940005 / Email:

Tender Notice for Hauling Phosphoric Acid (54% P2O5) thru Private Contractors

Sealed tenders are invited from reputed transport contractors for Hauling Phosphoric Acid from Chennai Port Terminal to MFL Plant, Manali, Chennai – 600 068. Tenders will be received upto 14.00 hrs. on 2nd December , 2009. For further details, please refer our website

Dy.General Manager (Production)

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For insertion in MFL Website:

MADRAS FERTILIZERS LIMITED (Govt. of India Undertaking)

MANALI, CHENNAI – 600 068

Tender Notice for Hauling Phosphoric Acid (54% P2O5) thru Private Contractors

Sealed tenders are invited for appointment of contractors for Hauling Phosphoric Acid from Chennai Port Terminal to MFL, Plant Site, Manali, Chennai – 600 068. The approximate to and fro distance from MFL site to Chennai Port Terminal is 40 km. The quantity to be hauled will vary and will be in the range of 800 to 1000 MT/day. Tender documents containing scope of work and other terms and conditions can be had from the Office of the undersigned before 2nd December , 2009, on any working day between 0800 a.m. and 4.45 p.m. on payment of Rs.500/- (non-refundable) by way of Cash / Demand Draft drawn on Scheduled Bank in favour of Madras Fertilizers Limited, payable at Chennai. Tender document may also be downloaded from the website and submitted along with Cash / Demand Draft for Rs.500/-as application fee without which the tender will be rejected. Successful tenderers shall have to furnish a security deposit (10% of the annual contract value) which will be intimated at the time of award of contract (Security Deposit will be by way of Demand Draft or Bank Guarantee). Only those tenderers who own a minimum of 2 road tankers registered in their name of SS 316 or MS rubberlined with necessary facilities in excellent condition for unloading need to apply. Selection will be based on tenderers organizational / financial strength, experience in hauling phosphoric acid or any other corrosive chemicals and capacity to carry out prompt, efficient, uninterrupted and safe service. MFL’s decision in this respect will be final. The tankers used for this service must be in excellent road worthy condition and duly certified for pressurized unloading with FC/valid insurance with drivers having valid licence. Tenderers who fulfill the above requirements can either collect or download the tender form from MFL website and apply to Dy.General Manager (Production), Madras Fertilizers Limited, Manali, Chennai - 600 068, in three separate sealed covers as below:

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Cover – 1 Should contain Earnest Money Deposit (EMD) for Rs3,00,,000/- (Rupees three lakhs

only) which is collected from each tenderer by Demand Draft drawn in favour of Madras Fertilizers Limited, or Bank Guarantee (BG) covering validity period of 45 days beyond the validity of offer in the MFL approved BG format. EMD is exempted for bidders who are Registered with National Small Industries Corporation (NSIC) on production of acceptable relevant Certificate with validity in lieu of DD or BG. Tenders not accompanied with either EMD or the relevant NSIC Certificates shall be rejected. The confirmation letter from the Bank for the BG issued should be delivered to MFL directly by the issuing Bank before opening of the EMD cover . EMD does not carry any interest. Cover – 2: Should contain the tender documents duly signed and along with copies of the required testimonials. The cover should be superscribed “Tender document and testimonials for Hauling Phosphoric Acid”. Cover – 3: Should contain only the competitive and firm offer per MT. The cover should be superscribed “Rate bid for Hauling Phosphoric Acid”. Tender complete in all respects and accompanied by Earnest Money Deposit of Rs.3,00,000/- (Rupees three lakhs only) must reach the undersigned on or before 1400 hrs.2nd December 2009. Tenders will be opened at 15.00 hrs. on 2nd December, the last day of submission in the presence of those tenderers present or their authorized representative, covers will be opened in seriatim and if conditions of the previous envelopes are not satisfied, then the succeeding envelope(s) shall not be opened. Rate bids of the eligible tenderers will be opened in the presence of the tenderers /representatives at a date/time to be notified later.

DY. GENERAL MANAGER (PRODUCTION)

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TENDER SUBMISSION FORM From --------------------------- --------------------------- To The Dy General Manager (Production) Madras Fertilizers Limited Manali, Chennai 600 068

Dear Sir

1. I/We submit the sealed Tender No.HPAT/2009 dated …May 27,2009…………. for appointment as contractors or Hauling Phosphoric acid from Chennai Port Terminal to MFL site by Road Tankers to MFL Plant site.

2. I/We have thoroughly examined and understood the instructions, terms and conditions, services, duties and responsibilities contained in all the parts of tender and agree to abide by them.

3. I/We agree to work at the rates quoted by me/us in the tender for the entire period of the contract. And I/We understand that MFL may appoint others as contractors at the same or different rates.

4. I/We hereby declare that all the details given in the tender comprising all parts and appendices are true and correct.

5. The following documents are attached to the tender: Cover - 1: A Crossed Account Payee Demand Draft payable at Chennai in favour of Madras Fertilizers Limited (No……………………….dated……………….on………………..Bank for Rs.3,00,000/- (Rupees three lakhs only) / Bank Guarantee (BG) covering validity period of 45 days beyond the validity of offer in the MFL approved BG format towards Earnest Money Deposit / Registration Certificate with National Small Industries Corporation (NSIC) in lieu of DD or BG. Cover - 2: (a) Information about Tenderer (Appendix I) (b) Constitution of the Tenderer

I. Registered Power of Attorney – Original / Attested II. Registered Partnership Deed or Memorandum and Articles of Association – Original /

Attested III. Income Tax Certificate showing the Assessee’s status in case of Hindu Undivided Family

(c) Copies of fitness certificates, Photostat copies of RC books and Motor Vehicle Insurance for own truck / tankers notified.

(d) Terms and conditions without indicating rate. Cover - 3: Only Rate Bid form in letterhead, duly filled in and signed.

Yours faithfully,

(Signature of the Tenderer)

Place : Date : WITNESS : (1) WITNESS: (2)

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MADRAS FERTILIZERS LIMITED

Manali, Chennai 600 068 TENDER FOR APPOINTMENT OF CONTRACTORS FOR HAULING PHOSPHORIC ACID THRU PRIVATE ROAD

TANKERS TO MADRAS FERTILIZERS LIMITED PLANT AT MANALI, CHENNAI 600 068

Issued to: M/s ------------------- ------------------------ ------------------------

PART 1 - INVITATION TO TENDER

For and on behalf of Madras Fertilizers Limited (MFL), the Dy.General Manager (Production), Madras Fertilizers Limited, Manali, Chennai - 600 068, invites sealed tenders for appointment of contractors for hauling phosphoric acid by Private Road Tankers from Chennai Port Phosacid Terminal to MFL Plant Site, Manali.

1. One copy of the tender is to be retained by the tenderer.

2. Tenders will be received upto 14.00 hrs. on…2nd December 2009……………

Cover 1: Should contain EMD for Rs.3,00,000/- (Rupees three lakhs only) which is collected either by Demand Draft or furnishing Bank Guarantee (BG) covering validity period of 45 days beyond the validity of offer in the MFL approved BG format. EMD is exempted for bidders who are registered with National Small Industries Corporation (NSIC) on production of acceptable relevant certificate with validity in lieu of DD or BG. Tenders not accompanied by this deposit or NSIC will be rejected. The Bank issuing the BG may send the confirmation letter directly to MFL before opening of the EMD cover. Cover 2: Should contain the tender document duly signed along with copies of the required testimonials The cover should be superscribed “Tender document and testimonials for Hauling Phosphoric Acid”. The covers will be opened on the same day at 1500 hrs.

Cover 3: Should contain only the competitive and firm offer per MT in the prescribed form per Appendix - IV. The cover should be superscribed “RATE BID for Hauling Phosphoric acid thru Private Road Tankers”.

Rate bid of the eligible tenders will be opened in the presence of those tenderers at a date/time to be notified later.

3. The offers of the tenderers should be valid for a minimum period of 3 months from the date of submission of the tender.

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PART II - GENERAL INSTRUCTIONS TO TENDERERS 1.0 Brief description of work:

Madras Fertilizers Ltd is having four Phosphoric acid storage tanks at Chennai Port Terminals (CPT) with a capacity of 33500 T. The tenderer is required to deploy either Stainless Steel (SS-316) or MS Rubber lined road tankers for hauling Phosphoric acid from Chennai Port Terminal to MFL Plant premises at a distance of 20 km approx. The sequence of operation to be followed is as follows:

1.1 Parking the Road Tanker at the loading station at CPT. Filling up will have to be done under MFL

staff supervision. 1.2 Hauling Phosphoric Acid from Chennai Port Terminal to Manali Plant without any loss, adulteration

or pilferage. 1.3 Weighing the loaded tanker at MFL weighbridge while coming in and going out of MFL premises. 1.4 Positioning the loaded tanker at MFL site unloading station for unloading. 1.5 Unloading will be done under MFL staff supervision either by pressurizing the tanker or by gravity

flow according to the condition of the tank. 1.6 Ensuring adequate safety precautions for the Road Tankers/their staff while loading/

unloading/transportation from Port to Site and vice versa by appropriate insurance. 1.7 Maintaining the trip sheets for each road tanker with proper signature of the authorized MFL

personnel for loading and unloading operations. 1.8 This job description is only illustrative and not exhaustive. 2.0 Volume of work

2.1 MFL cannot guarantee any definite volume of work to be performed by the hauling contractors or the number of road tankers required during the currency of contract. However, generally the hauling rate required is 800 – 1000 MT/day subject to various factors like production schedule, raw material availability etc. The contractor shall increase/decrease the hauling, as directed by MFL to meet Production/Inventory requirement and as directed by MFL.

2.2 The tenderers are advised to acquaint themselves with the jobs involved and quote their rate in the form per Appendix IV.

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3.0 Earnest Money Deposit

3.1 Each tender shall be submitted along with a deposit of Rs.3,00,000/- (Rupees three lakhs only) which is collected either by DD or furnishing Bank Guarantee (BG) covering validity period of 45 days beyond the validity of offer in the MFL approved BG format. EMD is exempted for bidders who are registered with National Small Industries Corporation (NSIC) on production of acceptable relevant certificate with validity in lieu of DD or BG. Tenders not accompanied by EMD or the relevant NSIC certificate shall be rejected. The confirmation letter from the Bank for the BG issued should be delivered to MFL directly by the issuing bank before opening of EMD cover.

3.2 The tenderer is not entitled for any interest on the deposit or for any right for award of the contract. 3.3 The EMD shall be forfeited if the tenderer, after submitting his tender, resiles from his offer or

modifies the terms and conditions thereof or fails to enter into agreement and take up the work upon awarding of the contract.

3.4 The EMD shall be returned to unsuccessful tenderers after decision on tenders and to the

successful tenderer, after he has furnished a security deposit as per Clause 4.0. If he does not desire refund, this amount will be adjusted towards the security deposit.

4.0 Security deposit 4.1 Successful tenderer shall furnish the company within ten days on intimation by MFL of his selection,

a security deposit which will be equivalent to 10% of the annual contract value, by way of DD or BG valid for 60 days beyond the completion of the contract issued by a Nationalized Bank to the satisfaction of MFL as laid down in item No.8.0 of Part III of tender. If the successful tenderer has previously held any contract and furnished security deposit, the same shall not be adjusted against this tender and a fresh security deposit shall be furnished.

5.0 Information about tenderers. 5.1 The tenderers shall furnish at the time of submission of the tender, complete, correct and precise

details about themselves, viz. name and address, composition of the firm / company, their main business, experience, Road Tankers owned, hired / leased, Income-tax paid, Service Tax Registration, etc. in the form in Appendix-I. Incomplete information may lead to rejection.

6.0 Signing of the tender and documents

6.1 The tender, duly filled in all respects, shall be signed on each page by the tenderer(s) in the manner hereunder specified:

6.2 The tender and all connected documents shall be signed by all the Partners/Directors/ Members

of the tenderers or any such person who has the full authority to bind all the Partners/Directors/Members of the tenderers.

6.3 Person or Persons signing the tender shall state in what capacity he is or they are signing the

tender, i.e., as Sole Proprietor or Partner/Managing Partner of a firm or as Secretary/Manager/Director, etc of a Limited Company.

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6.4 In the case of partnership firms, the names of all the partners should be disclosed and the tender shall be signed by all the partners or their duly constituted attorney having authority to bind all the partners in all the matters pertaining to the contract including the arbitration clause.

6.5 In the case of a private limited company, the names of all the directors shall be mentioned and it

shall be certified that the person signing the tender is empowered to do so on behalf of such private limited company. A copy of the Memorandum & Articles of Association of such private limited Company must be forwarded.

6.6 In the case of Hindu Undivided family, the names of the family members should be disclosed and

the Karta who can bind the firm should sign the form and indicate his status below his signature. 6.7 The person signing the tender form or any documents forming part of the tender on behalf of

another or on behalf of a firm shall produce a proper and registered power of attorney duly executed in his favour stating that he has authority to bind such other person or the firm as the case may be in all matters pertaining to the contract, including the arbitration clause.

7.0 Documents to be attached to the tender: 7.1 Income-tax Return for the previous 3 years separately in respect of tenderers Individual

Partners/Directors/Members.

7.2 Attested copies of Partnership deed and power of Attorney or Memorandum and Articles of Association. Original shall be submitted for inspection within one week of acceptance of tender.

7.3 Copies of certificates of fitness, fitness for pressurized unloading RC books and Motor Vehicle

Insurance for each of the Road Tankers offered for MFL work. Original RC books shall be produced within ten days of advice to the tender.

7.4 Copies of Service Tax Registration details.

8.0 Delivery of tender

8.1 The tender attachments shall be filled in by the tenderer neatly, completely and accurately. Any alteration, erasure or over-writing shall be neatly carried out and duly attested by the full signature of the tenderers.

8.2 The tenderers should submit the tender documents including 'Invitation to Tender' intact without detaching any page or pages, duly filled in/completed and signed on each page of tender form.

8.3 Tenders not accompanied by EMD (in Cover 1), all the appendices (in Cover 2) and Rate Bid (in Cover 3) duly filled in and signed shall be rejected.

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8.4 The tender shall be submitted in three separate sealed covers to be put together in one cover as mentioned below addressed to the Dy. General Manager (Production), Madras Fertilizers Limited, Manali, Chennai - 600 068or may be deposited in the box kept near North-gate, Madras Fertilizers Ltd., Manali, Chennai - 600 068 on or before 1400 hrs.2nd December 2009.

Cover 1: Earnest Money Deposit Cover 2: Should contain the tender document duly signed along with copies of the required testimonials. The cover should be superscribed “Tender document and testimonials for hauling Phosphoric Acid”. Cover 3: Should contain only the competitive offer per MT in the prescribed form per Appendix – IV. The cover should be superscribed “Rate bid for Hauling Phosphoric Acid thru private Road Tankers”.

9.0 Opening and acceptance of tenders 9.1 The Cover – 1 containing EMD and Cover – 2 tender documents will be opened on the last day of

receipt of tenders at 15.00 hrs. in the presence of tenderers who are present. 9.2 The covers containing the rate bids of the eligible tenderers will be opened in the presence of those

tenderers or their authorized representatives, at a date/time, to be notified later. 9.3 MFL reserves the right to accept or reject any or all the tenders or any part thereof without

assigning any reason and MFL reserves the right to appoint one or more persons at the same or different rate. MFL is also not bound to accept the lowest or any other tender and reserves the right to negotiate the rates with any or all the tenderers.

9.4 MFL reserves the right to enforce the minimum number of Road Tankers and condition of Road

tankers to be deployed or quantity to be hauled now and then. 9.5 Tenders not conforming to the instructions shall be liable to be rejected at the sole discretion of

MFL. 9.6 The tenderers should be prepared to come to MFL Plant at Manali, Chennai - 600 068, if called

upon to do so, for discussions with the MFL authorities at their own expenses and without any obligation on the part of MFL

9.7 The successful tenderer shall enter into an agreement within 10 days with Madras Fertilizers

Limited on a stamped paper of appropriate value, incorporating the terms and conditions of the contract (per Appendix II), failing which the earnest money deposit will be forfeited as specified in Clause 3.3 above and the tenderer shall also be liable to compensate MFL in terms of Clause 7.2 of Part III.

10.0 Eligibility Criteria: 10.1 Tenderers must possess in their own name, minimum two road tankers of SS 316 or MS rubber

lined with gravity unloading facility, registered in their name. 10.2 Tenderers must have experience in hauling phosphoric acid or other corrosive chemicals.

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PART III - TERMS AND CONDITIONS 1.0 Definition: 1.1 The term "Contract" shall mean and include the entire tender and the agreement signed by the

contractor and Madras Fertilizers Limited. 1.2 The “Contractor" shall mean and include those who entered into agreement with Madras Fertilizers

Limited, their heirs, executors, administrators, successors and their permitted assignees, as the case may be.

1.3 "MFL" shall mean and include “Madras Fertilizers Limited", Manali, Chennai - 60068 or any of its

authorized offices. 1.4 The "Services" shall mean and include all items of work duties of the contractor and/or any other

item of work not specified but consistent with general terms of the contract and entrusted by MFL.

1.5 The term "Contract rates" shall mean the rates of payment negotiated between MFL and the

tenderer. The rates quoted by the tenderer shall be final and binding. No increase shall be allowed for any reason except diesel escalation charges.

2.0 Criteria for appointment of Contractors and for revision in Rate 2.1 The rate inclusive of Service Tax quoted should include all the incidental charges connected with the

contract and MFL will not pay any amount other than the contract rate(s) and diesel escalation. Any variation in diesel price above 5% of the prevailing rate at the time of quote will be enforced for increase/decrease in rate by 50 paise/T. Other than this, no other revision will be considered on any account whatsoever including idle hours, halting.

2.2 Contractor should discuss with MFL, and ascertain the nature, responsibilities, and scope of the job

involved and field conditions before quoting the tender. This is necessary so that the tender quoted will be realistic and practical.

3.0 Object of the contract 3.1 The contractor shall render all or any of the services given under Part IV at the schedule rate as and

when required by MFL and as directed from time to time by the authorized/specified officers of MFL together with such auxiliary and incidental duties, services and operations as may be required by MFL and are consistent with these terms and conditions. These services shall be carried out promptly, diligently, efficiently and safely by the contractor without causing any damage/loss to the product/property of MFL or third parties or the reputation of MFL.

3.2 The company not insisting upon strict performance of any provision herein shall not constitute a

waiver of the right to require such performance by the contractor and a waiver in one case shall not constitute a waiver with respect to a later breach whether of a similar nature or otherwise.

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3.3 In the event of any doubt as to the interpretation of any of the clauses herein contained, the interpretation or clarification provided by MFL shall prevail which shall be final and binding.

4.0 Constitution of the Contractor 4.1 The contractor shall not change the composition during the currency of the contract without the prior

written approval of MFL. Any happenings like death/resignation of Partner/Director/Member shall be notified within 24 hours of such happenings by Registered letter to the Company - The Dy.General Manager (Production), MFL, Manali, Chennai - 600 068. On receipt of such notice, MFL reserves the right either to terminate or continue the contract.

4.2 In the event of any alteration in the constitution/composition of the contractor, without the prior written

consent of the company, this contract shall automatically terminate and the contractor shall be liable for all consequences arising therefrom including all costs, expenses or losses resulting from award of work to some other party or parties, consequent to termination of agreement.

4.3 The contractor shall produce the original power of attorney granted in favour of the signatory of the

tender and the partnership deed and/or any other documents required for verification. 4.4 In the event of any dispute, legal or other proceedings by any party or parties concerning the

constitution or composition of the contractor, MFL reserves the right to take such necessary action as it deems fit including termination of the contract, withholding payments due or accrued to the contractor.

4.5 The contract shall be awarded on the basis of 'Principal-to-Principal' contract and the contractor shall

be deemed to be an independent contractor engaged for the performance of services/work/job in the manner and to the extent provided in these presents.

5.0 Liability for personnel and property 5.1 The contractor shall comply with the provisions of the Factories Act, 1948, Contract Labour

(Regulation & Abolition) Act, 1970, ESI Act, 1948, Workmen's Compensation Act, 1923, Employees Provident Fund and Miscellaneous Provisions Act, 1952, Payment of Bonus Act, 1965, Payment of Gratuity Act, 1972, Minimum wages Act, Payment of Wages Act, Tamil Nadu Industrial Establishments (National & Festival Holidays) Act, 1958 and any other law applicable to the Contract Workmen as amended from time to time.

5.2 The contractor shall fully indemnify MFL for any default or non-observance by the contractor or any of

his representatives of any of the provisions of the above- mentioned enactments and the rules framed thereunder. Even though the contractor shall be solely liable for settlement of any claim made by any person due to the non-observance by the contractor of any of the provisions or otherwise of the enactments cited, MFL reserves its right to settle directly any amount due by the contractor as mentioned above and to recover such amounts from any of the amounts payable by MFL to the contractor or in the absence of the same as debt due to MFL by the contractor.

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5.3 In the case of non-coverage of people under ESI Scheme/EPF besides the recovery of the amounts due by any contractor towards their contribution, penal interest and/or damages as may be levied by the ESI Corporation or EPF Authorities, a penalty of 20% of the above amount would also be levied and recovered from their bills. In the event of cessation of the contract due to any reason whatsoever, the security deposit will be refunded only after due satisfaction as regards the payment of ESI/EPF dues by the contractors. However, MFL reserves the right to release the security deposit on execution of an indemnity bond and or other documents to MFL as may be required by the Company.

5.4 The contractor shall, whenever required by the company or Government officials authorised under

the Statutes, produce for inspection, all Forms, Registers and other papers required to be maintained under various Statutes.

5.5 While executing the work, the contractor shall ensure that all the rules and regulations in force in MFL

from time to time regarding security, safety, hygiene, sanitation and prohibited activities are complied by his employees. Unauthorised / Prohibited materials should not be carried by the tankers supplied by the contractor.

5.6 If the contractors while entering or leaving and/or in the process of delivering goods in any premises

causes any damage to any property/person, such losses shall be reimbursed by the contractor and the quantum of loss as fixed by MFL shall be final and shall not be disputed.

5.7 Any accident/injury to his contract personnel should be dealt by the contractor himself and compensation if any, is to be paid by the contractor using his ESI payments and relevant documents

6.0 Period of Contract 6.1 The contract shall commence from a date to be notified by MFL and shall remain in force for a period

of one year .. 6.2 In the event of regular termination of the contract by either side, one month notice shall be given. 7.0 Summary termination 7.1 Notwithstanding anything contained in the Clause 6.0 Supra, MFL reserves the right to terminate the

contract due to any failure on the part of the contractor in discharging the services under the contract, or in the event of his becoming insolvent or going into liquidation. The decision of Madras Fertilizers Limited about the failure on the part of the contractor shall be final and binding on the contractor and shall not be called into question.

7.2 MFL shall also have, without prejudice to any other rights and remedies, the right in the event of breach by the Contractor of any of the terms and conditions of the Contract, or due to the Contractor's inability to perform as agreed for any reason whatsoever, to terminate the contract forthwith and get the work done for the unexpired period of the Contract at the risk and cost of the Contractor and recover the losses, damages, expenses or costs that may be suffered or incurred by MFL besides forfeiture of security deposit. The decision of Madras Fertilizers Limited about the breach/failure on the part of the Contractor shall be final and binding on the contractor and shall not be called into question.

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8.0 Security Deposit

8.1 The successful tenderer shall pay within 21 days from the date of intimation of his

selection, a sum equivalent to 10% of the annual contract value which will be intimated at the time of award of contract by way of DD in favour of MFL or in the form of a Bank Guarantee (Appendix – III) valid for sixty days beyond the completion of the contract, issued by a Nationalized Bank to the satisfaction of MFL, payable and enforceable at Chennai. The issuing Bank may send confirmation letter to MFL directly.

8.2 Failure to pay the security deposit as per clause 8.1 above shall be treated as failure to discharge

the duties under the contract and shall result in cancellation of the offer of the contract and the tenderer shall be liable to compensate MFL for any losses incurred by MFL besides forfeiture of EMD.

8.3 No interest shall be paid on the security deposit. 8.4 The security deposit shall be refunded within a reasonable time after the date of expiry of the

contract subject to the contractor fulfilling all obligations/operations as required under the contract. 8.5 MFL reserves the right to forfeit any part or the whole of the amount of the security deposit without

prejudice to other claims against the contractor for losses suffered by MFL due to failures on the part of the contractor or due to termination of contract or contractor becoming disqualified because of liquidation/insolvency or change of composition. The decision of MFL in respect of such losses, damages, charges, expenses or costs, shall be final and binding on the contractor and shall not be called into question.

8.6 Whenever the security deposit falls short of the specified amount, consequent to any adjustment

towards shortages/damages/losses, the contractor shall make good the deficit within 7 days from the date of receipt of intimation from the Company so that the total amount of security deposit shall not at any time be less than the specified amount.

8.7 In the event of the security deposit being insufficient or if the security deposit has been wholly forfeited, the balance of the total sum recoverable from the contractor as the case may be, shall be deducted from any sum then due or which at any time thereafter may become due and payable to the contractor under this or any other contract with MFL. Should that sum also be not sufficient to cover the full amount recoverable, the contractor shall pay to MFL on demand the remaining balance due.

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9.0 Nature of work (subject to Clause 2.0 of Part II)

The jobs that will be generally performed by the Phosacid Hauling Contractor are: 9.1 Parking the Road Tanker at the loading station at CPT. Filling up will have to be done under MFL

staff supervision. 9.2 Hauling Phosphoric Acid from Chennai Port Terminal to Manali Plant without any loss, adulteration

or pilferage. 9.3 Weighing the loaded tanker at MFL weighbridge while coming in and going out of MFL premises, at

random or otherwise as decided by MFL from time to time. 9.4 Positioning the loaded tanker at MFL site unloading station for unloading. 9.5 Unloading will be done under MFL staff supervision either by pressurizing the tanker or by gravity

flow according to the condition of the tank. 9.6 Ensuring adequate safety precautions for the Road Tankers/their staff while loading / Unloading /

transportation from Port to site and vice versa. 9.7 Maintaining the trip sheets for each road tanker with proper signature of the authorized MFL

personnel for loading and unloading operations. 9.8 This job description is only illustrative and not exhaustive. The tenders are advised to acquaint

themselves with the jobs involved, quote the rate per Appendix IV and submit it in a separate sealed cover (Cover 3) superscribing “Rate bid for hauling Phosphoric acid thru Private Road Tankers”.

10.0 Remuneration 10.1 The contractor shall be paid remuneration in respect of the services described in Part IV and

performed by him at the contracted rates. The rates herein provided shall not be subjected to any escalation except diesel for any reason whatsoever.

10.2 The rate quoted should include all the incidental charges and taxes connected with the contract and

MFL will not pay any amount other than the contract rate. Any increase/decrease in diesel price above 5% of the prevailing rate at the time of quote will be enforced for increase/decrease in rate by 50 paise/T. Other than this, no other revision will be considered.

10.3 The contractor shall submit his bill once in a fortnight. The Company will endeavour to settle the bill

within 15 working days of receipt of the bill after due verification. The applicable rate of income tax at source will be deducted from the bill. The contractor shall not be entitled to any interest on the outstanding bills.

10.4 The weight of acid as obtained from MFL weighbridge or any other mode of weight determination as

may be decided by MFL shall form the basis for payment.

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11.0 Delays, strikes etc. 11.1 Strikes or cessation of work by contractor's labour owing to any dispute with the contractor or

pertaining to wages or otherwise will not be deemed to be a reason beyond the contractor's control and the contractor shall pay a penalty of Rs.10000/- (Rupees ten thousand only) per day for each day of work stoppage and shall, in addition, also be responsible for any loss/damage which MFL may suffer on this account. Penalty will also be levied per clause 14 of Part III for shortfall in acid hauling.

12.0 Arbitration 12.1 All disputes shall be settled in accordance with the Laws of India for the time being in force and as

amended from time to time. 12.2 Any or all disputes arising out of or in relation to this agreement shall be settled by mutual

discussions and in the event of failure such dispute(s) shall be referred to the General Manager (Plant), MFL, who will be the Sole Arbitrator for settlement of such dispute(s) and whose decision shall be final and binding on the parties.

12.3 Subject as aforesaid, the Arbitration and Conciliation Act 1996 shall apply to the arbitration

proceedings under this clause and such arbitration in English shall take place in the city of Chennai 13.0 Subletting and transfer 13.1 The contractor shall be solely responsible for rendering any or all the services described in Part IV.

He shall not sublet/transfer/assign the contract or any part thereof to others. All his dealings with third parties shall be as between two principals without any reference in any way to MFL. The contractor shall also undertake to make third parties, if any, fully aware of the position aforesaid.

14.0 Penalty

14.1 MFL shall prescribe the quantity to be handled over a specified period (say once in a week/fortnight/month). In case of any shortfall on the part of the contractor in hauling this quantity for reasons not acceptable to MFL, then MFL shall levy a penalty of Rs.25/T for the deficit quantity.

14.2 In case of failure on the part of the contractor to haul the specified quantity within the specified period, MFL shall have the liberty to engage any other agency/party to carryout the job. The expenses incurred in this regard will be recovered from the contractor.

14.3 Penalty for non-performance will be levied to the maximum 10% of the value of the contract.

15.0 Others MFL shall reject any Tanker, if, in the opinion of MFL, the same is not in good condition or unfit for

the purpose for which is intended.

16.0 Laws governing the contract: The contract will be governed by the laws of India for the time being in force and as amended from time to time and the jurisdiction of the court shall be that of the place where the Registered Office of MFL is situated.

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PART IV

DUTIES AND RESPONSIBILITIES OF THE CONTRACTOR

1.0 The contractor has to engage his own driver and a cleaner and other personnel required to

load/unload/operate/maintain the road tankers. 1.1 The rate quoted is all inclusive and no claim for payment in respect of any items including

driver/cleaner other workers Wages / Bata, overtime, PF, Gratuity, Workers compensation/Claims, wage increase/revision etc., if any, road tanker maintenance, cost of diesel, spares, consumables, vehicle tax, comprehensive insurance, port entry passes to the vehicles and to their staff, etc. shall be allowed for any reason.

1.2 The road tankers shall be maintained in good working condition at all times. Any road tanker, on

breakdown, shall promptly be hauled by another tanker. 1.3 The contractor shall carry out all items or services assigned or entrusted to him and shall abide by

all instructions issued to him from time to time by the Officer acting on behalf of MFL together with such auxillary and incidental duties/services and operations as may be indicated by the said Officer(s) that are not consistent with the terms and conditions of the contract.

1.5 The contractor shall be responsible for the good conduct of his employees and shall compensate MFL for the losses arising from neglect, carelessness, want of skill or misconduct of himself, his employees, agents or representatives.

1.6 The contractor shall strictly ensure that each Road tanker deployed for use in MFL is manned by a

driver and a cleaner duly licensed therefore by the prescribed authorities. 1.7 The contractor shall advise MFL, the name of one or more representatives authorized to act on his

behalf in each shift and provide their specimen signatures. It shall be the duty of these representatives to call at the office of the Deputy General Manager (Production) or his authorised representative every shift and generally remain in touch with him to obtain information about the program of work and also supervise/report progress of work.

1.8 The contractor shall give the company in writing from time to time names and specimen signatures

of his employees in duplicate, who are authorized to act on his behalf. The signing of the Company's documents by the contractor's driver or agent shall be deemed to be sufficient acknowledgement for the receipt of goods on behalf of the contractor.

1.9 The contractor shall be responsible for rendering any or all the services required of them round the

clock. He shall not be entitled to any extra remuneration on this account.

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1.10 The contractor shall provide the company with sufficient number of road tankers with valid road permits, fitness, Insurance certificates, and all other documents within 24 hours of demand by the authorised MFL representatives. Each such road tanker shall be manned by the driver holding valid driving licence and he as well as the cleaner shall have the experience in transportation .

1.11 The contractor shall ensure that in the event of breakdown of road tankers within plant premises,

the road tankers are removed from the premises within a reasonable time and in any case within 24 hours from the time of breakdown at the contractor's own expenses.

1.12 The contractor shall report to the Senior Production Engineer of the concerned Plant immediately

about any accident/damage caused to any person by road tanker. 1.13 The contractor should report to the Dy.General Manager (Production), within four hours from the

time of receipt of information for discussion on day-to-day problem faced by MFL. 1.14 The tanker, after loading, shall be sealed which should be in tact when it arrives at the unloading

area. It will be the responsibility of the contractor to ensure safe transportation to MFL Plant without any loss/their adulteration enroute. Any loss incurred by MFL on this account shall be recovered from the Contractor. The amount equivalent to the loss incurred by MFL due to direct loss or adulteration will be adjusted from the Security Deposit or/and the bill amount claim towards Phosacid hauled. MFL decision on this will be final and binding on the Contractor.

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APPENDIX I INFORMATION ABOUT TENDERERS

S.No. Information required To be filled in by tenderer 1 Name of the tenderer

2 Address of Registered Office and Branches

3 Telegraphic Address and Phone No.

4 Composition of tenderer (here state whether it is Hindu Joint Family business, Proprietorship Concern or Registered Partnership or a Limited Company)

5 Nature of normal business of the tenderer

6 Experience of, similar working (Certificate to support statement must be enclosed)

7 Any other experience (attach separate sheet, if necessary). Copies of certificates to support statements must be attached

8 PF/ESI/Labour Licence Code No.

9 Name and address of Partners, Directors, Proprietor, as the case may be

10 Name of the person with whom Company may correspond

11 Name of the Bank and the branches with which tenderer has dealings

12 Income Tax demanded and paid for Assessment year

2007-2008 2008-2009 2009-2010

Demanded Paid

13 No. of road tankers owned with make, year of manufacture and the Registration Nos. (attach copies of RC books)

• In the name of the Firm/Company

• In the name of Partners of the Firm/Company

• Total

14 Service Tax Regn.No. with detail Place: Signature of tenderer Date :

Capacity in which signing

Tender No HPAT/2009

May 27 2009

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APPENDIX II

AGREEMENT (To be executed on a non-judicial stamp paper of the value of Rs.20/-)

Agreement made this ____________________ the day of 2009 between Madras Fertilizers Limited, Chennai - 600 068 hereinafter called "Company" of the one part. AND M/s / Sri____________________, No ___________________ Chennai hereinafter called "Contractor" of the other part.

1) Object of Agreement

The Company has accepted and selected the Contractor for the performance of the work based on his quotation contained in tender No HPAT/2009 dated 2nd December 2009.

The Contractor having thoroughly understood the details of Tender No HPAT/2009 dated 2nd December 2009 willingly agreed to render any or all of the services listed under Parts III and IV of the tender promptly and efficiently to the best satisfaction of the Company as per the terms and conditions specified in the said Tender and the Company on its part has agreed to compensate the Contractor in consideration of the services at the rates as mutually agreed and appended to this agreement.

2) It is agreed between the Company and the Contractor that Tender No HPAT/2009 dated 2nd

December, 2009 submitted by the Contractor comprising Parts I to IV with all its changes, additions, deletions, alterations, modifications, etc. resulting from discussions between the Contractor and the Company as are mutually agreed to shall form part and parcel of this agreement.

3) It is agreed that while performance of the contract shall be in pursuance of the terms and

conditions contained in tender No HPAT/2009 dated 2nd December 2009 forming part and parcel of this agreement, the following are agreed to between the parties:

i) The Contractor will be paid a consolidated (including all allied costs) amount of

Rs__________ as mentioned below. There shall be no escalation in the rates during the tenure of the contract.

Ii) The rate quoted should include all the incidental charges connected with the contract and MFL will not pay any amount other than the contract rate. Any increase/decrease in diesel price above 5% of the prevailing rate at the time of quote will be enforced for increase/decrease in rate by 50 paise/T. Other than this, no other revision will be considered.

iii) Any expenditure that the Company may be forced to incur as a result of the Contractor's negligence, inefficiency or for any other reason whatsoever will be recovered from the Contractor.

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iv) MFL will have the exclusive right to appoint one or more Contractors for any or all the services mentioned hereunder at identical or different rates and to divide the work between such Contractors in any manner and no claim shall lie against MFL on this account.

v) Adequate number of Tanker shall be deployed as required by MFL from time to time. vi) Strikes or cessation of work by contractor's labour owing to any dispute with the contractor

or pertaining to wages or otherwise will not be deemed to be a reason beyond the contractor's control and the contractor shall pay a penalty of Rs.10000/-(Rupees ten thousand only) per day for each day of work stoppage and shall, in addition, also be responsible for any loss/damage which MFL may suffer on this account.

vii) MFL shall prescribe the quantity to be handled over a specified period (say once in a week/fortnight/month). In case of any shortfall on the part of the contractor in hauling this quantity for reasons not acceptable to MFL, then MFL shall levy a penalty of Rs.25/T for the deficit quantity.

viii) In case of failure on the part of the contractor to haul the specified quantity within the specified period, MFL shall also have the liberty to engage any other agency/party to carry out the job. The expenses incurred in this regard will be recovered from the contractor.

ix) a) The contract shall remain in force for a period of one year from the date of award of contract. MFL reserves the right to extend the period of contract for a further period of one year at the same rates, terms and conditions as herein mentioned with mutual consent

b) In the event of regular termination either side will give one month prior notice in writing

c) Notwithstanding the above, MFL reserves the right to terminate the contract in case of breach of contract by the Contractor. The action of Dy.General Manager (Production), MFL under this Clause shall be final, conclusive and binding of the contractor and shall not be called in question.

d) The quantum of material to be handled may be regular or irregular and tenderers shall have no right to claim compensation for shortfall in quantity allotted/indicated in the order.

e) The rates quoted by the tenderer shall be final and binding. No increase shall be allowed for any reason except diesel escalation charges.

f) Penalty for non-performance will be levied to the maximum 5% of the value of the contract.

g) In case of breach or failure of contractual provision by the contractor, the security deposit will be forfeited.

In witness whereof, this agreement is executed this day, month and year first above written by the Dy.General Manager (Production) for and on behalf of the Company and by Sri _________ for and on behalf of the Contractor. Signed by (1) WITNESS: for MADRAS FERTILIZERS LIMITED WITNESS: Signed by (2) For CONTRACTOR

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APPENDIX III

BANK GUARANTEE FORMAT FOR EARNEST MONEY DEPOSIT To be executed on a non- judicial stamp paper of the value of Rs. 100.00)

WHEREAS________________________________________________ (hereinafter called the “tenderer”) has submitted their offer dated ______________________________ for the supply of ______________________________ (hereinafter called the “tender”) against the purchaser’s tender enquiry No.__________________________________________ KNOW ALL MEN by these presents that WE ________________________________________of ________________________________ having our registered office at ___________________________ are bound unto ______________________ (hereinafter called the “Purchaser”) in the sum of __________________________________________ for which payment will and truly to be made to the said Purchaser, the Bank binds itself, its successors and assigns by these presents. Sealed with the Common Seal of the said Bank this _____________ day of ____________ 20_____. THE CONDITIONS OF THIS OBLIGATION ARE: 1) It the tenderer withdraws or amends, impairs or derogates from the tender in any respect within the

period of validity of this tender. 2) If the tenderer having been notified of the acceptance of his tender by the Purchaser during the period

of its validity – a) If the tenderer fails to furnish the Performance Security for the due performance of the contract. b) Fails or refuses to accept / execute the contract.

WE undertake to pay the Purchaser up to the above amount upon receipt of its first written demand, without the Purchaser having to substantiate its demand, provided that in its demand the Purchaser will note that the amount claimed by it is due to it owing to the occurrence of one or both the two conditions, specifying the occurred condition or conditions. This guarantee will remain in force upto and including 45 days after the period of tender validity and any demand in respect thereof should reach the Bank not later than the above date. ______________________________________ (Signature of the authorized Officer of the Bank)

______________________________________ ______________________________________ Name and Designation of the Officer

______________________________________

(Seal, Name and Address of the Bank and Address of the Branch)

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BANK GUARANTEE FORMAT FOR SECURITY DEPOSIT

To be executed on a non-judicial stamp paper of the value of Rs. 100.00)

WHEREAS________________________________________________ (name and address of the supplier) (hereinafter called “the supplier”) has undertaken, in pursuance of contract No. __________________________________________________ dated_____________________ to supply (description of goods and services) (hereinafter called “the contract”). AND WHEREAS it has been stipulated by you in the said contract that the supplier shall furnish you with a bank guarantee by a scheduled commercial recognized by you for the sum specified therein as security for compliance with its obligations in accordance with the contract;. AND WHEREAS we have agreed to give the supplier such a bank guarantee; NOW THEREFORE we hereby affirm that we are guarantors and responsible to you, on behalf of the supplier, upto a total of _________________________________________________ (amount of the guarantee in words and figures), and we undertake to pay you, upon your first written demand declaring the supplier to be in default under the contract and without cavil or argument, any sum or sums within the limits of (amount of guarantee) as aforesaid, without your needing to prove or to show grounds or reasons for your demand or the sum specified therein. We hereby waive the necessity of your demanding the said debt from the supplier before presenting us with the demand. We further agree that no change or addition to or other modification of the terms of the contract to be performed thereunder or of any of the contract documents which may be made between you and the supplier shall in any way release us from any liability under this guarantee and we hereby waive notice of any such change, addition or modification. This guarantee shall be valid until ____________day of ____________ , 2009. (Signature of the authorized Officer of the Bank) ______________________________________ Name and Designation of the Officer

______________________________________ ______________________________________

Seal, Name and Address of the Bank and Address of the Branch)

Tender No HPAT/2009

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BANK GUARANTEE FORMAT FOR PERFORMANCE SECURITY To be executed on a non-judicial stamp paper of the value of Rs. 100.00)

WHEREAS________________________________________________ (name and address of the supplier) (hereinafter called “the supplier”) has undertaken, in pursuance of contract No. __________________________________________________ dated_____________________ to supply (description of goods and services) (hereinafter called “the contract”). AND WHEREAS it has been stipulated by you in the said contract that the supplier shall furnish you with a bank guarantee by a scheduled commercial recognized by you for the sum specified therein as security for compliance with its obligations in accordance with the contract;. AND WHEREAS we have agreed to give the supplier such a bank guarantee; NOW THEREFORE we hereby affirm that we are guarantors and responsible to you, on behalf of the supplier, upto a total of _________________________________________________ (amount of the guarantee in words and figures), and we undertake to pay you, upon your first written demand declaring the supplier to be in default under the contract and without cavil or argument, any sum or sums within the limits of (amount of guarantee) as aforesaid, without your needing to prove or to show grounds or reasons for your demand or the sum specified therein. We hereby waive the necessity of your demanding the said debt from the supplier before presenting us with the demand. We further agree that no change or addition to or other modification of the terms of the contract to be performed thereunder or of any of the contract documents which may be made between you and the supplier shall in any way release us from any liability under this guarantee and we hereby waive notice of any such change, addition or modification. This guarantee shall be valid until ____________day of ____________ , 2009. (Signature of the authorized Officer of the Bank) ______________________________________ Name and Designation of the Officer

______________________________________ ______________________________________

Seal, Name and Address of the Bank and Address of the Branch)

Tender No HPAT/2009

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APPENDIX IV

TENDER NO.HPAT/2008 DATED May 27, 2009 FOR HAULING PHOSPHORIC ACID FROM CHENNAI PORT TO MFL PLANT AT MANALI THROUGH PRIVATE ROAD TANKERS

SCHEDULE OF RATE

Description Rate in Rs. Per MT acid solution (In Figures and in

Words) Hauling Phosphoric Acid from MFL Port Terminal at Chennai Port to MFL Plant Site at Manali, Chennai – 600 068

Note:

• This is an all-inclusive rate

• We have gone through MFL Tender Document (Tender No HPAT/2009 dated May 27, 2009) and the rate quoted above is based on complete understanding and acceptance of the terms and conditions contained therein.

Name of the Tenderer : Address :

Signature

Designation