Detailed terms & conditions for customer representative

1) Eligibility criteria

The person should be of age minimum 18 years, educated, having driving license of three-wheeler and good reputation in the market. The experienced person of marketing will be preferred.

2) Financial background

Initial Rs.1.10,000/- (Rupees one lac ten thousand) only or more as per requirement. Margin money for three-wheeler is included in Rs 1.10 lac. For details, refer to projected profitability.

3) Infrastructure

There is no need of godown. The applicant can do business without godown & shop by keeping 100 Kg. LPG at his room. Three-wheeler for supply of cylinders.

4) Security deposit

Rs. 20,000/- (Rupees Twenty thousand) only against 5% simple interest per annum at the time of maturity of agreement.

5) Franchisee fee

The Customer Representative will pay Franchisee fee ₹. 10,000/- (Rupees ten thousand) only one time with security deposit.

6) Terms of appointment

The appointment of the customer representative will be initially for three years and can be further renewed/extended on mutual consent. However, the company may terminate the contract before the expiry of the contractual period of three years, if it is brought to its notice that the customer representative violated any of the terms & conditions of the agreement. In that case, the security deposit will also be fortified.

7) Jurisdiction/area

The appointment of customer representative will be for the area prescribed by the company with mutual consent.

8) Quantum of business

There will be no limit of connection/supplies. However, the company can appoint other customer representatives in the area if he cannot cover his area properly.

9) Statutory provisions

The company has complied with mandatory requirements required for LPG business as per gazette notification no 293 dated 24th May, 2000. He will comply with applicable statutory requirements i.e. shop establishment, GST registration and insurance of the stock in trade, etc. However, the copies of following documents will be provided by the company to customer representative:-

  1. Customer representative certificate;
  2. Copy of gazette notification issued by the Govt. of India allowing LPG business to parallel marketer;
  3. Copy of valid rating certificate issued by ICRA to the company as per provision in the act by the Govt. of India;
  4. Copy of valid licenses of plants of company issued by the Chief Controller of Explosive, Nagpur.
  5. Copy of agreement executed with the company on stamp paper of Rs. 100/- (Rupees one hundred) only containing detailed terms & conditions duly notarized from the “Notary Public”.

10) Rate list 

The rate of LPG will be changed as per international market every month. The circular will be issued by the company by 1st of every month. The other items will also be sold as per rates fixed by the company from time to time. Changes, if any in rates will be communicated by the company in advance.The issue of circular at the address or email given by the customer representative will be sufficient to implement the rates of supply. The rates will be charged applicable on the date of supply from plants/distributor/dealer’s godown. Refer customer price list.

11) Procurement

To start supply, customer representative will book new connections and start accepting orders for other products stipulating that delivery will be made of order placed with payment within 3 days 1st time & thereafter within day or two. On closing of the day, he will prepare list of total bookings on the indented format (PF-5) in triplicate, i.e. 1st copy for company/associate & 2nd copy for receiving as token of confirmation of the order placed & 3rd for record and forward to company/associate to whom he has been attached as ‘customer representative’ through mail/whatsapp or inform on telephone by 5.00 p.m. positively to get supply next day. He should keep in mind that supply will be made only on receipt of original copy of indent with payment at godown/plant

12) Supply

Supply van of ‘customer representative’ will carry the stocks as per indent for the day from the godown/plant of the associate/company and the ‘customer representative’ will visit house to house and shop to shop to make delivery of the cylinders to all consumers and in the evening, he will return the empties at godown/plant from he lifted the material and will get receipt for the same immediately. The customer representative can keep100 kgs. LPG in cylinders at his room and the balance, if any, can be kept in his vehicle & transshipped the next day also.

13) Maintenance of stock

The ‘customer representative’ is responsible for the stock of cylinders in their custody and also for proper monitoring and maintenance of accounts of cylinder to individuals under their jurisdiction. It is necessary to impress on proper accounting of cylinder's stock with him and consumers. It is not a difficult job, the ‘customer representative’ can maintain his record manually or on computer package (tally+ excel) for which the company provides training to the customer representative or his Staff.  The gas is sold to the consumer, the cylinder, however, is not sold to anyone. Its use is hired against security obtained by the company as per security voucher. Cylinders are returnable to the company and the company will refund security as per terms of security voucher with the consumers, as printed on the reverse of the voucher to be issued with the new connection.

14) Return on investment

In this statement, to sum up average, the investment on 15/12/4 kg. Cylinders and rates of LPG for the month of January 2018 have been considered (refer to customer price list). profitability on refill has been calculated on 15 kg. Cylinder. The 1st order will be delivered @18% GST considering commercial rates but Customer Representative can supply @5% GST to domestic user and in next order, he can include the quantity of domestic cylinder @ 5% GST as per policy of the company. i.e. 2 refill per month against one connection issued for domestic use

On sale of domestic connection : Rs. 310/- each
On sale of mini connection : Rs. 220/- each
On sale  of  commercial connection : Rs.190/- each
On sale of refill in LPG : Rs. 04/- per kg. for big cylinder

Rs. 05/- per kg. for mini cylinder

15)    Support from the company

  1. Training to sales representative, accountant, clerk and any other staff to be appointed by the customer representative at business associate/company’s office.
  2. Provide printed stationery at reasonable rates, if desired by the customer representative.
  3. Allow customer representative to recommend mini retailer in his area on the terms and conditions framed by the company to boost his sale.
  4. Loan to consumer for connection @ Rs. 1000/- only on submission of documents mentioned in the consumer loan scheme.
  5. Allow customer representative to search the industries for providing gas bank in any area at very reasonable terms against the commission in installation and supply of LPG.
  6. Provide cylinders against 50% security in case customer representative supply in commercial/Industrial units without security of cylinder as per policy of the company.
  7. Support in arranging funds from the banks/financial institutions against collateral for purchase of cylinder and vehicle for loading unloading & working capital. However, in any case, the company can introduce his associate concern in partnership.

16) Publicity

  1. Initially, publicity material as per list enclosed will be supplied by the company to the customer representative along with first order at concessional rates against the payment made by him as publicity expenses. Indent for further requirement should be made by the customer representative to the company with payment. For details, refer to our guidelines for publicity on our website under head “publicity”.
  2. He can arrange further local publicity including cable TV in consultation with the PRO/BDM as per policy of the company. The company will reimburse 50% of the expenses in such advertisement if he got approval from the Head office of the company in writing.
  3. The company will also provide maximum support in organizing road show, public campaign and exhibitions in his area. The customer representative has to lift the sufficient quantity of material as prescribed by the company to meet the demand of consumer during campaign/exhibition in his area.
  4. National & zonal level publicity, national newspaper, T.V., hoardings on highways, etc. will be arranged by the company as and when company felt the need of it.
  5. However, he cannot compel the company for any type of publicity. Even at his cost, he cannot make any publicity without permission of the company.

17) Submission of report/returns

He will submit periodical reports/returns required by the company from time to time.

18)Surrender of association-ship

Either party shall give at least 3 month's notice in writing in case it wants to dissolve the agreement before maturity but not before the period of one year from the date of agreement. The notice to be given to either party shall be deemed to have been served if sent by registered post at the address entered in this agreement or the changed address duly communicated. In case of notice prematurity, no interest on security deposit will be given.

19)    Arbitration clause

In case, any differences or dispute arises between the parties, it will be referred to the sole arbitrator to be appointed by managing director of the company. The arbitration proceedings shall be governed by the provisions of arbitration and conciliation act as applicable at the prevailing time. Language of the proceedings shall be in English and venue for arbitration shall be in Delhi. The decision of the arbitrator will be binding on both the parties. Courts of Delhi only shall have jurisdiction to adjudicate upon the findings of sole arbitrator.

20)    Miscellaneous provisions

  1. These are general terms and conditions; the contract/agreement executed between the parties after negotiations shall be final and have an overriding effect on these general terms and conditions.
  2. These terms and conditions may be changed, altered, modified depending upon the change in governing rules and regulations issued by the Government of India from time to time.
  3. The acceptance or rejection of the application is at the sole discretion of the company. After rejection, no correspondence will be entertained in this regard.
  4. The company reserves the right to change, amend, add or delete any/all clauses at any time without prior notice.
  5. All disputes are subject to jurisdiction of Delhi courts only.

He will return the duplicate copy of these detailed terms and conditions duly signed in token of acknowledgement and acceptance to the company.

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