1. DEFINITION AND INTERPRETATION: 

Farmer: Actual producer of cotton or who is registered in our website as Farmer with all the required details.

 

Ginner: Ginner is a person or group of persons having TMC standard Ginning mill by own/ lease/ hiring basis and is able to produce good quality lint bales as per international standards by procuring good quality raw material with quality conscious in each and every stage of Ginning process and deliver the goods as per agreed time.

 

Spinner: Spinner is a person or group of persons having standard Spinning mill by own/ lease /hiring basis and is able to produce good quality yarn as per international standards by procuring good quality raw material with quality conscious in each and every stage of Spinning process and deliver the goods as per agreed time.

 

TReDS: TReDS means Trade Receivables electronically Discounting System. It is an electronic platform for facilitating the financing / discounting the trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).

 

Factoring: Factoring is a financial service in which the business entity sells its bill receivables to a third party at a discount in order to raise funds. Factoring involves the sale of all the account receivables to an outside agency. Such an agency is called a factor.

 

FOS Option Lint Bales: Farmer Option Sale is part of Normal market Option sale system. It is also called as SOS (Seller Option Sale). Here on every Monday, Wednesday and Friday [popularly known as MWF days] the farmer puts up his quote/ price and the buyer shall accept the said price if he wants to buy the stock on that particular day. Here, the seller can change his quote any time of that day and the buyer shall agree to the said quote.

 

SOS Option Lint Bales: Seller Option Sale is part of Normal market Option sale system. Here every Monday, Wednesday and Friday [popularly known as MWF days] the farmer shall put forth his quote/ price and the buyer shall accept the said price if he wants to buy the stock on that particular day. Here, the seller can change his quote any time of that day and the buyer shall agree to the said quote.

 

BOS Option Lint Bales: Buyer Option Sale is part of Normal market Option sale system. Here on every Tuesday, Thursday and Saturday [popularly known as TTS days] the buyer shall put forth his quote and the seller shall agree to sell the stock for the quoted price if he wants his stock to be sold on that day. Here, buyer can change his quote any time of that day and the seller shall agree to the said quote.

 

Trading day: The day on which the actual trade transaction occurs between seller and buyer. The trading date including time is specified in our TTN number.

 

Farmers’ Franchise: Farmers’ Franchise is appointed by ADMIN of ICSINDIA with security deposit to care of day-to-day activities in villages particularly collecting kappas from all farmers and adding the crop in the ADMIN website. He helps farmers in registration, adding crop, payment follow up, quality complaints and any other services required by the farmer and ADMIN. He will be paid salary and incentive by the ADMIN for his services.

 

Farmers Testing Franchise: Farmers Testing Franchise consists of a group of 5 members and one driver who were appointed by ICSINDIA ADMIN. It shall contain one mobile cotton lab roaming around the area of villages allotted to them with radius of 100 kms. They will do testing of kappas (as per charge decided by the ADMIN) and upload reports in website. and also guide farmers about live estimated crop rates work so that farmer will have better idea how to sell and when to sell.

 

Ginner’s Franchise: Ginner’s Franchise is appointed by ADMIN of ICSINDIA with security deposit to care of day-to-day activities in Ginning Clusters particularly Guiding & Supervising to all Ginners during the adding the crop in the ADMIN website. He helps Ginners in registration, adding crop, payment follow up, quality complaints and any other services required by the farmer and ADMIN. He will be paid salary and incentive by the ADMIN for his services.

 

Ginner’s Testing Franchise: Ginners Testing Franchise consists of a group of 5 members and one driver who were appointed by ICSINDIA ADMIN. It shall contain one mobile cotton lab roaming around the area of Ginners Cluster allotted to them with radius of max 100 kms. They will do testing of kappas (as per charge decided by the ADMIN) and upload reports in website. and Test Ginners LYP% and calculate live estimated crop rates work so that Ginners can add farmers and their own crops with better idea how to sell and when to sell.

 

Spinner’s Franchise: Spinner’s Franchise is appointed by ADMIN of ICSINDIA with security deposit to care of day-to-day activities in Spinning Clusters particularly Guiding & Supervising to all Spinners during the buying of cotton bales in the ADMIN website. He helps Spinners in registration, buying of bales, payment follow up, quality complaints and any other services required by the farmer and ADMIN. He will be paid salary and incentive by the ADMIN for his services.

 

Spinner’s Testing Franchise: Spinners Testing Franchise consists of a group of 5 members and one driver who were appointed by ICSINDIA ADMIN. It shall contain one mobile cotton lab roaming around the area of Ginners Cluster allotted to them with radius of max 100 kms. They will do testing of Lint (as per charge decided by the ADMIN) and upload reports in website. and Test Spinners lots for any complaints raised by Spinner and report to ADMIN, so that ADMIN can take appropriate action.

 

Yarn selling Franchise: Yarn selling Franchise is appointed by ADMIN of ICSINDIA with security deposit to care of day-to-day activities in Spinning & weaving Clusters respectively particularly Guiding & Supervising to all Spinners & Weavers during the selling & buying of cotton yarn in the ADMIN website. He also helps Spinners & weavers in registration, selling & buying of cotton yarn, payment follow up, quality complaints and any other services required by the farmer and ADMIN. He will be paid salary and incentive by the ADMIN for his services.

 

Yarn Testing Franchise: Yarn Testing Franchise consists of a group of 5 members and one driver who were appointed by ICSINDIA ADMIN. It shall contain one mobile yarn lab roaming around the area of Spinners Cluster & weavers clusters allotted to them with radius of max 100 kms. They will do testing of yarn (as per charge decided by the ADMIN) and upload reports in website and Test weaver’s lots for any complaints raised by Weaver and report to ADMIN, so that ADMIN can take appropriate action.

 

Cotton seed Franchise: Cotton Seed Franchise is appointed by ADMIN of ICSINDIA with security deposit to care of day-to-day activities in Ginning Clusters particularly Guiding & Supervising to all Ginners during seed sales in the ADMIN website. He helps Seed buyers in registration, buying of seed, payment follow up, quality complaints and any other services required by the farmer and ADMIN. He will be paid salary and incentive by the ADMIN for his services.

 

Traders Franchise: Traders Franchise is appointed by ADMIN of ICSINDIA with security deposit to care of day-to-day activities in Spinning Clusters particularly Guiding & Supervising to all Spinners during buying of bales in the ADMIN website. He helps Traders in registration, buying of cotton lint bales, Yarn, seed and Waste , payment follow up, quality complaints and any other services required by the farmer and ADMIN. He will be paid salary and incentive by the ADMIN for his services.

 

Exports Franchise: Exports Franchise is appointed by ADMIN of ICSINDIA with security deposit to care of day-to-day activities in Ginning and Spinning Clusters particularly Guiding & Supervising to all Ginners, Traders & Spinners during the selling of the cotton lint bales, cotton yarn and waste in the ADMIN website. He himself do or helps Importers(foreign buyers) in registration, buying of cotton Lint bales, cotton Yarn, and waste, payment follow up, quality complaints and any other services required by the farmer and ADMIN. He will be paid salary and incentive by the ADMIN for his services

 

2. SCOPE AND CONDUCT OF WORK: The Franchisee shall register in indiancottonsolutions.com or www.icsindia.com website and shall provide Security deposit as specified by ICSINDIA either by way of RTGS / FDR or Irrevocable Bank Guarantee or Letter of credit in the name of ADMIN. ICSINDIA provides the Incentives in following ways for their services.

 

1). Normal Business Franchise: a) For Member registration, as per minimum target fixed by ADMIN. b) For every sale and purchase by the members of Franchise allotted in the area as per ADMIN fixed charges.

 

2. Testing Franchise: a) For every Individual member registration, as per minimum target fixed by ADMIN. b) For each & every testing, as per ADMIN fixed charges. c) For each and every sale and purchase by the members allotted in the area as per ADMIN fixed charges. All the business franchisees shall fulfill their duties mandatorily as per target fixed by ADMIN.

 

Duties of various franchises are specified hereunder:

 

A. Farmer Franchise: The franchisee shall register a minimum of 1000 farmers in his allotted area. Normally such allotted area consists of 10000-25000 cotton acres or 2 franchisees per Taluka or mandal as per the basic rule. In some places, it may be more or less, as per convenience of ADMIN and franchisee. Once the franchisee registers 1000 farmers, he shall receive fixed monthly salary. Further, he shall receive business incentives as soon as he starts business by submitting security deposit. For Farmer Franchise minimum business target here is 12 lots per month franchise.

 

B. Farmer Testing Franchise: The franchisee shall register farmers in the website of ICSINDIA and shall submit security deposit along with original certificates to the ADMIN of ICSINDIA. Hereafter, he shall undergo physical training by the supplier of machines at Coimbatore or any other place, as specified by ICSINDIA, for one week. Further, he shall undergo training for one more week with the ADMIN regarding the NABL standards and procedures to be followed. One Farmer Testing Franchise shall be allotted for every 30 Farmer Franchises or 30,000 farmers and such Franchisee shall visit 5 Farmer Franchises per day from Monday to Saturday. Sunday shall be considered a holiday, however, the Franchisee, if required, can continue his work on Sunday also as and when the business/ workload increases, more number of Farmer Testing Franchises shall be allotted and the same shall be decided by the ADMIN. Testing franchise will get their fixed salary after they submit required security deposit and original certificates to admin, and business incentive will get automatically when their area Farmer Franchises starts business activity.

 

C. Ginner Franchise: The franchisee shall register a minimum of 15 ginners in his allotted area. In, some places it may be more or less, as per convenience of ADMIN and the franchisee. Once the franchisee registers 15 ginners, he shall receive fixed monthly salary. Further, he shall receive business incentives as soon as he starts business by submitting security deposit/ Bank Guarantee. For Ginner Franchise minimum business target here is 10 lots per month franchise.

 

D. Ginners Testing Franchise: The franchisee shall register in the website of ICSINDIA and shall submit security deposit along with original certificates to the ADMIN of ICSINDIA. Hereafter, he shall undergo physical training by the supplier of machines at Coimbatore or any other place, as specified by ICSINDIA, for one week. Further, he shall undergo training for one more week with the ADMIN regarding the NABL standards and procedures to be followed. One Ginner Testing Franchise shall be allotted for every 2 Ginner Franchises or 30 ginners and such Franchisee shall visit 5 ginners per day from Monday to Saturday. Sunday shall be considered a holiday, however, the Franchisee, if required, can continue his work on Sunday also. As and when the business/ workload increases, more number of Ginner Testing Franchises shall be allotted and the same shall be decided by the ADMIN. . Ginner Testing franchise will get their fixed salary after they submit required security deposit and original certificates to admin, and business incentive will get automatically when their area Ginner Franchises starts business activity.

 

E. Spinners Franchise: The franchisee shall register a minimum of 30 spinners in his allotted area or through his contacts. In, some places it may be more or less, as per convenience of ADMIN and the franchisee. Once the franchisee registers 30 spinners, he shall receive fixed monthly salary. Further, he shall receive business incentives as soon as he starts business by submitting Bank Guarantee or Letter of Credit. For Spinner Franchise minimum business target here is 12 lots Sales per month franchise.

 

F. Spinners Testing Franchise: The franchisee shall register in the website of ICSINDIA and shall submit security deposit along with original certificates to the ADMIN of ICSINDIA. Hereafter, he shall undergo physical training by the supplier of machines at Coimbatore or any other place, as specified by ICSINDIA, for one week. Further, he shall undergo training for one more week with the ADMIN regarding the NABL standards and procedures to be followed. One Spinner Testing Franchise shall be allotted for every 2 Spinner Franchises or 60 Spinners and such Franchisee shall visit 10 spinners per day from Monday to Saturday. Sunday shall be considered a holiday, however, the Franchisee, if required, can continue his work on Sunday also. As and when the business/ workload increases, more number of Spinner Testing Franchises shall be allotted and the same shall be decided by the ADMIN. . Spinner Testing franchise will get their fixed salary after they submit required security deposit and original certificates to admin, and business incentive will get automatically when their area Spinner Franchises starts business activity.

 

G.Yarn selling Franchise: The franchisee shall register a minimum of 30 spinners or weavers in his allotted area either in Spinning Cluster or Weaving Cluster or through his contacts. In, some places it may be more or less, as per convenience of ADMIN and the franchisee. Once the franchisee registers 30 spinners or weavers, he shall receive fixed monthly salary. Further, he shall receive business incentives as soon as he starts business by submitting Bank Guarantee or Letter of Credit. For Yarn Franchise minimum business target here is 6 yarn lots or containers sales per month franchise.

 

H. Yarn Testing Franchise: The franchisee shall register in the website of ICSINDIA and shall submit security deposit along with original certificates to the ADMIN of ICSINDIA. Hereafter, he shall undergo physical training by the supplier of machines at Coimbatore or any other place, as specified by ICSINDIA, for one week. Further, he shall undergo training for one more week with the ADMIN regarding the NABL standards and procedures to be followed. One Yarn Testing Franchise shall be allotted for every 2 Spinner/ Weaver Franchises or 60 spinners/ weavers and such Franchisee shall visit 10 spinners/ weavers per day from Monday to Saturday. Sunday shall be considered a holiday, however, the Franchisee, if required, can continue his work on Sunday also. As and when the business/ workload increases, more number of Yarn Testing Franchises shall be allotted and the same shall be decided by the ADMIN. .Yarn Testing franchise will get their fixed salary after they submit required security deposit and original certificates to admin, and business incentive will get automatically when their area Yarn Franchises starts business activity.

 

I. Cotton seed Franchise: The franchisee shall register a minimum of 10 cotton seed buyers in his allotted area or through his contacts. In, some places it may be more or less, as per convenience of ADMIN and the franchisee. Once the franchisee registers 10 cotton seed buyers, he shall receive fixed monthly salary. Further, he shall receive business incentives as soon as he starts business by submitting security deposit or Bank Guarantee or Letter of Credit. Cotton seeds can be tested in Ginners Testing franchise for Moisture report. For Farmer Franchise minimum business target here is 12 crop seed lots each 325 quintals per month franchise.

 

J. Traders Franchise: The franchisee shall register a minimum of 30 Lint Bale traders/ Yarn traders/ Waste traders in his allotted area or through his contacts. In, some places it may be more or less, as per convenience of ADMIN and the franchisee. Once the franchisee registers 30 Lint Bale traders/ Yarn traders/ Waste traders, he shall receive fixed monthly salary. Further, he shall receive business incentives as soon as he starts business by submitting security deposit or Bank Guarantee or Letter of Credit. Lint bales can be tested in any of Ginner Testing Franchise or Spinner Testing Franchise or Yarn Testing Franchise of ADMIN as per their convenience. For Farmer Franchise minimum business target here is 12 lots of either any of cotton bales or cotton yarn or cotton seed or waste per month franchise.

 

K. Exports Franchise: The franchisee shall register a minimum of 10 Lint Bale importers/ Yarn importers/ Waste importers in his allotted area or through his contacts. In, some places it may be more or less, as per convenience of ADMIN and the franchisee. Once the franchisee registers 10 Lint Bale importers/ Yarn importers/ Waste importers, he shall receive fixed monthly salary. Further, he shall receive business incentives as soon as he starts business by submitting security deposit or Bank Guarantee or Letter of Credit. Lint bales can be tested in any of Ginner Testing Franchise or Spinner Testing Franchise or yarn can be tested in any Yarn Testing Franchise of ADMIN as per their convenience. For Farmer Franchise minimum business target here is 6 lots per month of either any of Cotton Lint bales or Cotton yarn or Waste per franchise.

 

3. ICSINDIA AGREES TO:

 

i. Ensure smooth flow of business from all Stake Holders and Franchise Seller and Buyer and vice versa.

ii. The same shall be informed to all Stake holders and Franchisee by SMS and mails and the same shall be updated in the homepage of Stake holders in their website.

iii. Update standard live rates of cotton lint bales [28.5mm] rate in Rs/candy and cotton seed rate in Rs/quintal daily before 11.00AM.

iv. Cotton yarn standard MSP rates can be viewed by using with Yarn MSP calculators.

v. Ensure that the standard values of cotton Moisture, trash, length, strength, Mic, Rd, CG, +b will be available on their website. vi. Ensure that the standard values of cotton yarn as per Uster Statistics of 5%, 25%, 50%.75% and 95% U%,-50%, +50% ,+200%, H, RKM, Yarn Breaks/ lac mtrs,, will be available on their website. 

vii. Update the ruling ocean freight rates based on required destination ports on daily basis and whenever it required.

viii. Update the service charges of ADMIN and franchisee service charges.

ix. Update the currency value twice daily from Monday to Friday

x. Ensure and fix quality claims, penalties and compensations as and when required. xi. Ensure smooth payments system for all stakeholders.  

 

4. THE FRANCHISEE AGREES TO:

 

i. Register in the website of ICSINDIA, i.e., www.indiancottonsolutions.com or www.icsindia.com

ii. Know the procedure of Normal Business Franchise and Testing Franchise as to how they work.

iii. Know the procedure of activity of your Stake holders and ADMIN standards Operation Procedures through ADMIN demo videos or website.

iv. Know the procedure of margin money or down payment for your stake holders business activity.

v. Ensure proper dispatch/ deliver the goods on time to the allocated buyers from your stake holders.

vi. Ensure and know the compensation or penalty clause up to 20% if sold online and not delivered the goods to the buyer in right time

 

5. PAYMENT TERMS: Ensure and know the standard payment terms and guidelines for different stake holders and different traders and commodities as per website.

 

6. PENALTIES: In case of omission of any act as mentioned above or commission of any wrongful act by any person, he shall be punished as per the provisions of Information Technology Act, 2000. In case of any other omission of act as mentioned in this agreement, the penalty shall be specified on the website of ICSINDIA.