Date: 11.09.

2023

Memo of Understanding

This Memo of Understanding (hereinafter referred to as “MOU”) is executed on 11.09.2023. by and between.

M/s DAIPL, having its registered office at ……………………………………... Through its duly authorized
representative Mr. P. venkateshkumar’ authorized person from M/s SGI AUTOMOTIVE PVT LTD (Herein after
referred to as “Supplier”).

AND

DAIKIN AIRCONDITIONING India Pvt. Ltd., having its Registered Office at 12th Floor, Building No. 9A, DLF
Cyber City, DLF Phase III, Gurgaon – 122 002 and Registered office at 210,1 st Floor, Okhla Industrial Area,
Phase - III, New Delhi 110020, and its Factory at 9650, Central Express Way, SriCity 517646 Dist. Tirupati,
Andhra Pradesh, India (herein after referred to as “DAIPL”).

This MOU is mainly for various points related to Pre-dispatch inspection & 4M change. Major Point are as
follows,

Pre-Dispatch Inspection:

1. Supplier Agreed that PDI (Pre-dispatch Inspection Process) will be followed by taking care of following
important points.
a. PDIR activity will be performed by QC Members only & by using standard format (which is
approved by DAIPL during the PPAP Approval Process).
b. PDIR will be reviewed by QC Engineer & Approved by at the level of Manager / HOD (Sign).
c. Measurement of all PDIR dimensions will be as per the PPAP Guidelines only & In case, if
there is change supplier will highlight the same in the report positively. .
d. Packing & Visual inspection is also part is part of the PDIR. Supplier will add the points at the
end of the PDIR, if any. Also, if the issue is Major, Supplier will take written approval before
dispatch of the goods.
e. Mill certificate must attach with PDIR. Mill certificate will be reviewed & Approved by QC
Engineer, Manager respectively along with seal of the company (No Email communication or
any other Way). After implementation of Vendor Portal, we will start tracking the same by
uploading the document directly on the website).
i. Regarding the Mill certificate, please monitor the Qty & consumption proactively. If
possible, please mention the qty. consumed & Qty balance on the corner of the Mill
certificate for reference.
f. Discuss the lead time for Pre-dispatch inspection to avoid the Last min rush & avoid the
surprise to all members.
g. Please check the vehicle condition before loading the goods & in case of issue, please stop the
loading of goods.

1
4M Change:

DAIPL & Supplier mutually agreed to follow the 4M change process strictly during the regular production of
various components developed at Supplier.

Related major points are as follows,

1. This is mainly related with 4 M i.e., Man, machine, Material & Method. Supplier will strictly follow & no
change is allowed without written confirmation from DAIPL. Supplier agrees to submit the change in the
enclosed format & single point contact will PU member. After Approval from DAIPL Procurement
members, 4M change will be forwarded to DAIPL QC Members for Approval.
2. The following are the important changes included in 4M change.
a. Machine Location.
b. Packing Method change.
c. Transport Method.
d. Less than minimum pack size & dispatch.
e. Major Break Down on Machine
3. In case of trials on existing production line, Supplier agrees to inform DAIPL before starting the trials at
least three working days in advance. Based on Production conditions & changes required for trials,
DAIPL will give permission. Without permissions, Supplier will not conduct the trials.
4. Supplier agrees to adopt any 4M change only after written approval from DAIPL by respective authority.
Adaptation of change with verbal communication will not be accepted & component produced will may
get reject without any justifiable reason.

All of the above terms and conditions are accepted by Supplier & DAIPL. DAIPL is expecting the supplier will
follow the process strictly & Deviation to above points will be treated as part of NG. All material received against
this will get rejected & scraped at DAIPL.

For Daikin Airconditioning India Private Limited For M/s,

Mr. ________________

Head Quality assurance