1. Offer, Acceptance & Purchase Orders
All price estimates, formal Requests for Quotation (RFQs), and preliminary price lists issued by Shri Mahadev Handlooms constitute invitations to treat. A legally binding manufacturing contract is established only upon:
- Issuance of a formal Proforma Invoice (PI) or Sales Contract countersigned by both SMH and the Buyer.
- Receipt of the agreed advance deposit or issuance of an Operative Irrevocable Letter of Credit (L/C).
2. Manufacturing Tolerances & Quality Specifications
Textile manufacturing involves natural fiber variations and mechanical finishing tolerances:
- Fabric Weight & Dimensions: Standard commercial tolerance of ±3% on GSM fabric weight, ±2% on finished dimensions (length and width).
- Colorfastness & Lab Dips: Production dye lots are matched to approved Pantone codes or physical strike-offs within standard Delta-E industrial spectrophotometer variances (≤ 1.0).
- Fabric Shrinkage: Finished commercial woven linens adhere to ≤ 3% residual shrinkage for pre-shrunk / sanforized specifications.
3. Incoterms & Delivery Terms
Unless explicitly stipulated otherwise in writing, all commercial transactions are executed under Incoterms® 2020:
- FOB (Free on Board): Inland haulage to nominated Indian ports (Nhava Sheva JNPT, Mundra, ICD Dadri/Patparganj) and export customs clearance are borne by SMH. Ocean freight and destination risks transfer to Buyer upon loading.
- CIF / CFR: Freight costs to the destination port are arranged by SMH. Risk transfers to the Buyer once cargo crosses ship's rail at loading port.
- EXW (Ex Works): Cargo made available at SMH Pilkhuwa Mill Facility. Buyer arranges all haulage and customs filings.
4. Payment Terms & Financial Instruments
Standard export payment terms accepted by SMH include:
- Telegraphic Transfer (T/T): 30% advance deposit upon order confirmation; 70% balance against presentation of scanned Bill of Lading (B/L) and shipping documents.
- Letter of Credit (L/C): 100% Irrevocable Letter of Credit at Sight issued by a prime international commercial bank.
5. Inspection, Acceptance & Claims
Buyers have the right to conduct pre-shipment inspections at our Pilkhuwa mill through authorized third-party agencies (e.g., SGS, Bureau Veritas, Intertek). Any claims regarding quantity discrepancies or manufacturing defects must be submitted in writing within 14 calendar days of container discharge at the destination port, supported by independent inspection survey reports.
6. Force Majeure & Governing Law
Neither party shall be held liable for delivery failures resulting from acts of God, labor strikes, embargoes, port blockades, pandemics, or government export restrictions. These terms are governed by the substantive laws of the Republic of India. Any unresolved disputes shall be subject to the exclusive jurisdiction of the competent courts in Hapur / Uttar Pradesh, India.