JOB-WORK / CONTRACT MANUFACTURING AGREEMENT
This Agreement is made at Chandigarh on 2 April 2026.
BETWEEN
Sethi Cycle Components Private Limited, of Plot 18, Focal Point, Ludhiana 141010, GSTIN 03AKJPI4432R1Z9, acting through Ravinder Sethi, Director (the "Principal");
AND
Sharma Forgings and Machining, of Unit 7, Industrial Area, Mandi Gobindgarh 147301, PAN AKJPI4432R, GSTIN 03AKJPI4432R1Z9, acting through Mohit Sharma, Proprietor (the "Job Worker").
- 1. THE WORK
1.1 From 1 April 2026 the Job Worker shall make or process for the Principal the following goods (the "Goods"): Machining and finishing of forged bicycle crank arms to the Principal's drawing no. SCC-114.
1.2 The Goods shall meet this specification: Drawing SCC-114 revision C, tolerance as marked, surface finish as on the approved sample kept with the Principal. The Job Worker shall not change the specification, the process or the material without the Principal's written approval.
1.3 The Principal expects to give about 5,000 pieces each month, by written work orders. That figure is an estimate to plan by. Only the quantity in an accepted work order binds the Principal.
1.4 The Job Worker shall deliver each work order within 15 days of receiving it, unless the work order states a different date.
- 2. MATERIAL, TOOLS AND WASTAGE
2.1 The Principal supplies the raw material and parts, which stay the Principal's property throughout, and the rate is a processing charge only.
2.2 All material, parts, dies, moulds, jigs, drawings and tools that the Principal gives the Job Worker remain the Principal's property. The Job Worker shall keep them separate and marked, use them only for the Principal's work, keep them insured or at its own risk against loss, theft and fire, not pledge, sell, lend or hold them against any claim, and return them on demand and on ending this Agreement. The Job Worker shall keep a stock register of them and let the Principal inspect it and the material on reasonable notice.
2.3 Wastage up to 2 per cent of the material issued for an order is allowed. The Job Worker shall account for any shortfall above that, caused by its fault or loss, at the Principal's cost price of the material, and scrap and offcuts belong to the Principal and shall be returned.
- 3. QUALITY, DELIVERY AND PAPERS
3.1 The Principal may inspect the Goods at the Job Worker's premises or on delivery. The Principal may reject Goods that do not meet the specification by written notice within 7 days of delivery, giving the reason. The Job Worker shall at its own cost rework or replace rejected Goods within a reasonable time, and the Principal need not pay for Goods that cannot be brought up to the specification.
3.2 Every movement of material or Goods between the Parties shall go with a proper delivery challan and the other papers the tax and transport laws require. The Parties shall follow the rules on goods sent for job work that are in force, including the time within which goods sent must be returned or accounted for, and each shall keep the records those rules require.