DIES INDIA LIMITED (DIL) BANGALORE - 2021

1. Dies India Limited (DIL) is a manufacturing company located in Bangalore. DIL is an assessee under GST and Customs.

2. GRINDING WHEELS is one of the important requirements in the manufacture of Dies

3. DIL invited tenders from India & abroad by Fax & replies were received on the same day.

4. MINIMUM ORDER QUANTITIES: For Imports 1,000 units & For local 500 units

5. DILs monthly requirements are only 200 units. As on date they have only 400 grinding wheels in stock

6. DIL has received 6 quotations. Grinding Wheels are available off-the-shelf. Quality and reliability are the same for all the suppliers. Each grinding wheel can be used for 100 hours. There are no other over-riding technical considerations

THE QUOTES FROM THE INDIAN SUPPLIERS ARE AS FOLLOWS: (valid for 12 months)

PARTY	UNIT PRICE (EXW)	GST	PAYMENT TERMS	REMARKS
Mumbai Abrasives - Mumbai	633		3 Months DA	Turnover less than 20Lakhs
Grind Ltd - Hyderabad	612	18%	1 Month DA
A1 Abrasives - Bangalore	615		COD	Composition Scheme 1%

QUOTES FROM FOREIGN SUPPLIERS: (Despatch immediate off the shelf) (valid for 24 months)

Party	Unit Price FOB for 1000 Nos.	Freight & Insurance for 1000 Nos.	Local Agency Com.		Terms of Payment		Delivery Time incl. Customs Clearance in India	Bank/ Forward Rates
SANDSIL U.S.A.	$ 7700 BOSTON	$ 1000 BOMBAY	NIL		L.C.		3 MONTHS AT BOMBAY	$ = 60 / 61
SILICON GERMANY	6600 HAMBURG	1500 ICD BLORE		10% FOB		3 Month D/A	2 MONTHS AT BANGALORE	= 80 / 81
ABRAWEEL U.K.	5500 PLYMOUTH	500 BOMBAY		NIL		D/P	2 MONTHS AT BOMBAY	= 90 / 91

7. Cost of transportation from Bombay Rs.6/- per unit, Hyderabad Rs.4 per unit, Bangalore flat Rs.1000 per shipment (any quantity). The transport time would be 30 days except for Bangalore. This freight is payable at Bangalore.
8. Customs Duty on Imports: 10 % Basic Customs Duty + Applicable IGST
9. Customs Rate of Exchange under Sec.14 (3): $ = 60/-; = 80/-; = 90/-.
10. Bank interest rates for working capital: 12% p.a.
11. No supplier foreign or Indian charges interest. Ignore LC opening charges.

ADDENDA:

SILICON, GERMANY is also offering a tool and know how which can enhance the life of the grinding wheel by another 100 hours. Following are the conditions for acquiring this:

1. Tool cost 10,000 CIF Bangalore
2. One time Know how fee 10,000
3. Customs duties: BCD 25%; +12% IGST
4. No Local Agency Commission is payable on the tool cost + know how.
5. Both will be made available along with order for first consignment of 1000 wheels.
6. Terms of payment for the tool and know how: LC.
7. This tool and knowhow can be used for their (SILICON, GERMANY) grinding wheels only.
8. The tool can be used for 5000 grinding wheels
9. ITC is available on this in full.

WILL THE ABOVE ALTER YOUR DECISION ON SOURCING?

You are requested to decide on the supplier for immediate delivery and for long term delivery. Your decision has to be supported by proper calculation data.

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