Battery Trade Policy FY 2020-21 (Q2)

Date: 01 July 2020
Dear Channel Partners
Trade Policy 2020-2021 (Q2)

We take this opportunity to thanking you for your contribution and the support extending
towards sales & service of “Lucas Long Life Batteries”
To support our channel partners for better distribution and increase the retailer base in
view of mutual growth ..….….
We are pleased to announce the following trade policy for the Q2 (July – Sep) of Financial
Year 2020-2021 which provides multiple option to channel partners according to their
choice
Auto Batteries - Quarterly TOD & One-time purchase (OTP) Scheme

TOD - Automotive Batteries OTP Scheme (Discount on invoice)
ECONOMY & Other Other than
ECONOMY & NEW
Quarterly Slab - Qty NEW Range of than ECO OTP-Order Qty ECO &
Range of Batteries
Batteries & NEW NEW
55 – 99 3% 4% 10- 24 4% 5%
100 – 249 6% 6% 25 – 59 6% 7%
250 - 349 6% 8% 60 - 99 8% 8%
350 & above 7% 10% 100 & above 8% 12%
2W Batteries - Quarterly TOD & One-time purchase (OTP) Scheme

OTP Scheme
TOD - 2W Batteries (LEO & LEO PLUS) OTP Order Qty
(Discount on invoice)
Quarterly Slab – Qty TOD 30 – 59 6%
90 -179 5% 60 – 124 8%
180 -400 8% 125 – 174 10%
400 & above 10% 175 – 274 13%
275 & above 15%
Other Terms & conditions Scheme eligibility criteria for OTP (One time purchase)
* All existing and new dealer can participate in this Scheme
- TOD amount is calculated on the basic * This scheme is applicable only on advance payment (cash & carry)
price only * CD will be applicable as per the company CD Policy
* Existing dealer should not have any outstanding to avail OTP
- TOD applicable on actual billing only, not * Dealer can avail the same discount of previous OTP for subsequent
on the orders billing in the same month on advance payment.
However, Min order qty will be 40 in case previous OTP billed in top slab
- TOD rewards will be given in the form of (100& above) for Auto batteries
credit note only Similarly for subsequent billing in 2wh, minimum order qty is 75 in case
previous OTP billed in 175 & 275 slab category.
- Quantities of Special price transactions are * Quantities of OTP transactions will not be counted in regular TOD policy
not counted in the TOD slabs * Order qty is subject to availability only, no carry forward of pending
Orders
1. TOD shall be disbursed only after clearing the outstanding of respective quarter
transactions within the credit terms. However, considering the market situation
management may consider another maximum 30 days grace period else the TOD
will be seized / will not be paid (For Ex: Invoice raised on 30 September should be
cleared within 30 of November or maximum by 31 of December)
2. Disbursement of TOD is in the form of credit note only, TOD will be disbursed in
in 3 stages based on the payment status, TOD will be permanently seized if
payment not cleared within 90 days from the Quarter ending date for the
respective quarter.
3. Note: Rights to withdraw the policy or modify the policy is rests with Company.
Company shall withdraw or revise the TOD & OTP policy at any time during the
year subjected to market conditions.
Other Terms
1. Achieving the sales possibilities and qualifying for all the aforesaid incentive/TOD
will be based on actual purchase and not on placement of orders.
2. All the above incentive/TODs will be computed at net value of the invoices (all
statutory levies and scheme benefits will not be accounted) and is payable after
the completion of Quarter as per eligibility and announced terms.
3. All the incentives / TOD will be paid in the form of credit note only.
Payments Policy
1. As a policy, all our Channel Partners are to operate as per the agreed
payment policy. (Within 30 days from the date of invoice or maximum by 45
days from date of invoice.)
2. All our channel partners are advised to adhere to the payment discipline as
Per agreed terms.
3. Any payment received beyond stipulated period (60 days) would attract interest
as per the company policy. The Company reserves the right to levy interest and
debit the same in the respective account.
CD Policy
1. 1.5% CD applicable on basic invoice value (without GST) if the payment made in
advance or within one day from the date of invoice for Local dealers (All the dealers
located within the city limits of respective LIS branches are treated as local dealers)
2. 1% CD applicable on basic invoice value (without GST) if the payment made within
three days from the date of invoice for Local dealers (All the dealers located within
the city limits of respective LIS branches are treated as local dealers)
3. 1.5% CD applicable on basic invoice value (without GST) if the payment made in
advance or within seven days from the date of invoice for outstation dealers (All the
dealers located away from the city limits of respective LIS branches are treated as
outstation dealers)
4. 1% CD applicable on basic invoice value (without GST) if the payment made within
fifteen days from the date of invoice for Local dealers (All the dealers located away
from the city limits of respective LIS branches are treated as outstation dealers)
5. We once again thank you for your excellent support extended to us in 2019-2020
and look forward to a mutually beneficial future. We would work as a team to reach
newer heights.
Yours Faithfully
President
Lucas Indian Service Ltd.

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Date: 01 July 2020

Dear Channel Partners

Trade Policy 2020-2021 (Q2)

Auto Batteries - Quarterly TOD & One-time purchase (OTP) Scheme

2W Batteries - Quarterly TOD & One-time purchase (OTP) Scheme

Lucas Indian Service Ltd.

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