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04 -02-2012 To MANAGING DIRECTOR FLAX HYDRO ENERGY PVT LTD, Kachiguda, X Road,opp.

Vaysya Hostel 3-3-26 & 27, Kakathiya Properties, Hyderabad 37

Dear Sir, Sub: Our offer for the work of fabrication, transportation, erection, testing and Commissioning service, Intake, Draft tube, Gates with Embedded parts Hoisting structure and Hoist mechanism---reg.

Ref: A. Your visit to our Work shop On 31.01.2012 B. Your Enquiry dated 30.01.2012 With reference to your Enquiry cited above we like to submit our offers as follows 1) Price schedule duly filled & signed as per your format enclosed in Annexure

2) Terms & Conditions

a) Payment terms :

1. Fabrication 10% initial payment of ex-works value, shall be paid along with the order against indemnity bond. 2. 85% on pro rata ex work value inclusive of 100% taxes shall be paid after inspection of parts at our works & kept ready for dispatch 3. Balance 5% after receipt of parts at site of work.

b) Transportation : 100% transportation value upon delivery of parts at site on pro rata basis

c) Erection : 1. 20% of erection value towards mobilisation shall be paid against indemnity bond, before starting of erection at site of work. 2. 75% of the erection value with 100% service taxes shall be paid on completion of each vent . 3. Balance 5% shall be paid on completion of vents in all respect.

d) All the payments shall be made with in 15 days after receipt of proforma invoices. e) Taxes: - Vat & Services taxes shall be paid 100%, as and when invoices are raised The Proof for the payments towards taxes will be submitted later. f) Break up of prices will be submitted after award of work for regulations of payment. c) Performance security:Security deposit/ performance security will be submitted in the form of indemnity bond or corporate undertaking, for a period of one year from the date of completion of erection & no recovery shall be made in our running bills. d) Facilities at site of erection:a) Necessary Power supply at the point of erection shall be made available at free of Charges near the erection front. b) Necessary approaches & dry front for the movement of men, mechanical equipments & Cranes shall be arranged from your end. c) Necessary accommodation with facility of water& electricity, for our workmen & supervisors at site of erection shall be provided at free of charges d) Land for stacking the finished goods/ raw materials has to be provided from your end at site of work at free of charges.

e) Technical:a) For hydraulic hoist of service out let gate & intake gate we have provided local control panel near the hoist supports only. Permanent wiring from source of supply to local control panel and remote control arrangement are not included in our scope. Purchase items like Hydraulic cylinders, Power pack and under slung hoist as supplied by the venders only will be considered against items of hoist & all accessories such as supports etc, will be considered under MS

Structural only and to be paid at rate / tonnage basis against items A of price schedule. b) Draft tube gate :- During the discussion it is informed that no. of draft tube gates is one only against 2 sets. Therefore instead of lift beam permanent lifting links fixed to the gate may be provided. c) Validity of the offer: - 30days from the date of our offer. The terms and conditions what you have included in the enquiry is applicable only to ICB tender where 100% LOC is opened by the purchaser to ensure payments to contractor Here for this small and emergency work such terms and conditions are not suitable for smooth flow of funds & speedy progress of work .Hence we have proposed modified terms & conditions which are practicable. Thanking you & assuring you our Best Services always Yours faithfully For NARYAN ENGINEERS R.NAGABHUSHAN