GOVERNMENT OF INDIA MINISTRY OF DEFENCE CANTEEN STORES DEPARTMENT Ref No.5/LIF/GP-VI/ -B/594 M/s.

___________________________ _______________________________ _______________________________ _______________________________ _______________________________ Dear Sirs, SUB ADDITIONAL BANK GUARANTEE (BG) Feb 2011

1. Reference circular No. 5/GP-VI/LIF/1403 dated 28.06.2010 followed further by circular No. 5/LIF/GP-VI/ -B/ dated 12.01.2011 informing firms for additional BG (Copy enclosed). 2. Adequate orders cannot be placed due to insufficient BG held with the Department. In order to calculate the amount of additional BG to be furnished by the firm you are requested to visit CSD Website, where PRGOs of your products indicating all details are uploaded. 3. In case you are unable to access the CSD PRGO, you may contact CSD (EDP Branch) for Pass Word and User I/D, for accessing PRGO of your product. Accordingly, you may submit BG based on the offtake for each index. Since, as per CSD policy, stocks, dues in and orders to be placed are to be covered by BG, further orders are only placed based on sale and stock held of your product. 4. Similarly, the PRGO on the Website would reveal products of your company/firm which are Slow/Non moving, which need to be analysed at your end and action to improve the sale through Consumer Promotion Schemes be addressed, to avoid raising of Debit Note against such stocks. Thanking you,

Yours sincerely,

(N CHANDRASEKAR) DY GEN MANAGER (LIF) FOR GENERAL MANAGER

GOVERNMENT OF INDIA MINISTRY OF DEFENCE CANTEEN STORES DEPARTMENT Ref No.5/LIF/GP-VI/ M/s. ___________________________ _______________________________ _______________________________ _______________________________ _______________________________ Dear Sirs, SUB ADDITIONAL BANK GUARANTEE 2011

1. It is seen that adequate orders, considering offtake of your products, could not be placed due to insufficient Bank Guarantee related to sale of your products. BG is required to cover all assets (stock + Dues in + Orders). 2. You are once again requested to submit Additional Bank Guarantee to cover all assets. Bank Guarantee is required from Nationalized Banks with validity of 3 years. 3. It is reiterated that submission of Additional Bank Guarantee does not imply that additional orders will be placed. Thanking you. Yours faithfully

(MARIA DSOUZA) MANAGER GP-VI (LIF) FOR GENERAL MANAGER

GOVERNMENT OF INDIA MINISTRY OF DEFENCE CANTEEN STORES DEPARTMENT Ref. No. 5/GP VI/LIF/1403 M/s.______________________ _________________________ _________________________ _________________________ _________________________ Dear Sir, SUB: CHANGE IN ORDERING TERMS 1. As per the policy of the Department, as stated in the letter of introduction 28 Jun10

of your products in CSD inventory range, all firms are required to provide Bank Guarantee for their items. Therefore, in order to safeguard Govt. Funds held up in stocks, purchase orders for all items covered under BG will be placed by Head Office henceforth. CSD Depots, therefore will not place local supply orders for items under BG w.e.f. 1st July 2010. 2. Hence, to ensure that the supplies are continuous, you are requested to

provide additional Bank Guarantee to cover the stocks and orders awaiting execution. Adequate BG is essential to ensure that orders are placed commensurate to the sale potential of your products. to plan for your further orders by CSD HO. 3. Kindly forward the additional BG at the earliest. Hence, the BG amount should cover five times the average all India monthly sales of the products so as

(N CHANDRASEKAR ) DY GEN MANAGER (LIF) FOR GENERAL MANAGER