NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON BANK GUARANTEES AND OTHER NON CASH SECURITIES

NOVEMBER 2002

A.F.FERGUSON & CO.

NEW DELHI
1

CONTENTS Process No
01 02 03 04 05 06

Process
Introduction Receipt, confirmation and custody of Securities Monitoring and extension of validity of securities Amendment to Securities Release of Securities Invocation/ Encashment of Securities Physical verification of securities

Page No
1 2 6 9 11 14 16

LIST OF FORMATS
Description Checklist for bank guarantees (BG) Receipt note Security Register Letter seeking confirmation Section-wise list of securities confirmed Securities entered in system but not received in F & A Dept. Pro forma of Conditional Claim Letter for release of security Letter for invocation /encashment List of securities for physical verification MIR FORMATS List of securities pending for confirmation. Report on list of securities expiring within next 90/60/30 days Report on conditional claims lodged, but extension not received Report on securities for which letters of invocation issued but proceeds not received. Legends used in the manual: I Input O Output R Report/Register MIR Management Information Report Format No. BG/CH BG/01 BG/02 BG/03 BG/04 BG/05 BG/06 BG/07 BG/08 BG/09 BG/MIR/01 BG/MIR/02 BG/MIR/03 BG/MIR/04

INTRODUCTION This manual outlines the procedure to be followed in respect of bank guarantees and other non-cash securities. The non-cash securities may be in the form of Fixed Deposit Receipts (FDRs), Post Office certificates such as National Savings Certificates (NSCs), National Defence Deposit Certificates, NTPC Bonds etc. The word Securities has been used for bank guarantees as well as other non-cash securities, unless otherwise mentioned. The manual covers the processes for: Receipt of securities Obtaining confirmation from issuing bank Monitoring the validity of the securities Obtaining amendments of securities Release of securities Invocation and encashment of securities Custody of securities and Physical verification of securities The custody of the securities is the responsibility of the Cash and Bank section. In addition to retaining custody of the securities, the Cash and Bank section should also carry out all the related activities such as verification of the securities, seeking confirmation from the issuing bank, monitoring validity dates, lodging claims with banks and maintaining database of the securities. It is needless to emphasise the importance of keeping the securities valid at all times in order to protect NTPCs interest.

Process: Receipt, Confirmation and Custody of Securities. Process brief

Process No.: 01

This process lays down the procedure to be followed for receipt, confirmation from issuing bank and safe custody of securities that are received from the bidders / vendors / contractors. While discharging this function, it is to be ensured that: The securities are received through the Purchase department, Contracts department/Executing Department and not directly from the bidders/vendors/contractors. In case a security is received directly in Finance department, the same is to be forwarded to the department concerned /-executing department for necessary action. The BGs are verified by the department concerned/executing department for factual details and the prescribed format/text and that the BGs are in confirmity with the checklist issued by the law department from time to time. The securities are checked for validity. The securities are kept in safe custody i.e. under lock and key in fireproof environment. Confirmation of issue of security by the issuing bank is received directly in F&A department.

Departments involved in the process Purchase department Contracts department Executing Department Finance and Accounts department (cash and bank section)

Procedure : Receipt, Confirmation and Custody of securities S. Activity Person No Responsible 1 Receive securities from the bidder Purchase Dept / vendor/contractor. / Contracts Dept / Check the security for Executing acceptability as per Department circulars/checklist issued by the law department from time to time in this regard and for factual details. Enter the details of the security in 2 Frequency As and when Remarks

Same day

S. No

Activity the Security Register. Write the system generated serial number(security type wise) on the reverse of the security. Generate three copies of Receipt Note (RN) Forward the security along with two copies of the RN to the Cash and Bank section and receive back one copy of RN duly acknowledged.

Person Responsible

Frequency

Remarks

Same day

Forward one copy of the RN to the bill processing section concerned in F&A Dept. Receive the security along with Cash and RN from the department Bank section concerned / Executing Department. Acknowledge receipt on office copy of the RN and return the same to the Executing Deptt/ Deptt concerned Check details of the security received with the RN. Check the security for acceptability, as per the checklist. In case of any mis-match, return the BG to the department concerned/ Executing Department for necessary corrections. Verify the details of the security on the system and update the register. Generate a JV to account for the non-cash security. (JV to be generated only for securities other 3

As and when

Immediately

Within a day of receipt

S. No than BG).

Activity

Person Responsible

Frequency

Remarks

Follow the procedure as per Books manual for generation and authorisation of JV. 3 Generate three copies of the letter Cash and seeking confirmation for the Bank section security received. Send the letter in duplicate, to the issuing bank for obtaining confirmation of the security issued by it. 4 5 File the third copy File the securities serial no. wise Cash and and keep them under lock and key Bank section Receive the confirmation from Cash and Bank section the bank concerned. Update the Security Register. File the confirmation along with the relevant security. Generate section-wise list of Cash and securities confirmed and send to Bank section the section concerned in Finance Dept and to the department concerned/Executing Department Generate a list of securities pending for confirmation for more than 15 days and send a copy to the department concerned/ Executing Department. Follow up with the bank for obtaining confirmation. 7 Generate a list of BGs entered in Cash and the system but not received in the Bank section F & A Department and send to the department concerned. 4 Weekly Same day As and when Same day Same day Daily Same day

S. No

Activity Follow up and obtain the securities from the department concerned.

Person Responsible

Frequency

Remarks

Documents - Records Document Title Checklist for BGs Receipt note Security Register Letter seeking confirmation Section-wise list of securities confirmed Securities entered in system but not received in F & A Dept. List of securities pending for confirmation Document Type I O O O Format Ref Frequency Distribution

BG/01 BG/02 BG/03

As when Within day receipt security Daily

and a of of -

Section concerned Cash and Bank section Bank concerned

BG/04

BG/05

Weekly

Department concerned Section concernedF&A department Engineer In Charge

MIR

BG/MIR/01

Daily

Department concerned Section concerned F&A Department

Accounting Entries Cash and Bank Section EMD-Other than cash EMD-Other than cash as per contra (Cap works) EMD-Other than cash as per contra (O&M works) S.D.- Other than cash as per contra Deposits-Other than cash as per contra(Cap works) Deposits-Other than cash as per contra(O&M works) Dr Cr Cr Dr Cr Cr

Process: Monitoring and extension of validity of securities Process brief

Process

No.:

02

At times the securities may need to be extended beyond their original validity period. This process lays down the procedure to be followed for monitoring the validity of the securities and seeking extensions thereto. While discharging this function it is to be ensured that: . Departments involved in the process Purchase department Contracts department Executing Department Finance and Accounts department (cash and bank section) That under no circumstances a security is allowed to lapse. A conditional claim is lodged with the bank concerned at least 60 days before the date of expiry of the validity of the BG. A conditional claim is lodged invariably for all BGs except where specific approval is obtained for not lodging conditional claim. In case the extension is not received within the BG expiry date the BG is encashed with the approval of the competent authority. (Refer process 5) In the case of a security other than in the form of a Bank Guarantee, the security is to be encashed on its maturity and the proceeds of the same are to be accounted for in the books of accounts. (Refer process 5)

Procedure: Monitoring and extension of validity of Security S. Activity No 1 Generate a report of securities that are due to expire within the next 90 days. Send the report in duplicate to the department concerned/Executing Departments. Send one copy to the concerned bill processing section in F&A. 6 Person Responsible Cash and Bank section Frequency At the end of every month Remarks

S. Activity No 2 Review the report sent by the Cash and Bank section for the action to be taken with reference to the securities whose validity is expiring in the next 90 days. Generate and send a letter to the bidder/vendor/ contractor for extending the validity of the security, if required. Send a copy of the letter to the bank concerned. Mark a copy to Cash and Bank section. Intimate Cash and Bank section in case extension is not required. Receive copy of letter seeking extension from department concerned / Executing Department. Generate a conditional claim on the bank concerned in quadruplicate. Send the conditional claim in duplicate to the bank concerned. Send one copy to the Executing Department. 4 File one copy. Receive extension of the security from the bank. Ensure that the extension is as per the requirement. Update the Security Register for the extended validity of the securities. Generate three copies of the Receipt Note (RN). Follow the procedure detailed in Process No.1 for receipt, verification and confirmation of the securities. 5 Generate a list of securities for which extension has been asked for but not received. 7

Person Responsible Department concerned/ / Executing Department

Frequency Within 3 days

Remarks

Cash and Bank section

Within a day of receipt of the letter(In any case not later than 60 days before the date of expiry of the security)

Executing Department Executing Department Executing Department Executing Department / Cash and Bank Cash and Bank section

As and when

Same day Same day Within a day of receipt Weekly

S. No

Activity Follow up with the Department concerned/ Executing Department for necessary action. Generate a report of the securities whose validity is expiring during the month for which conditional claims have been lodged with the bank, but extensions have not been received. Send the list through HOD (F) to the department concerned with a copy to the GM of the project.

Person Responsible

Frequency

Remarks

Cash and Bank section

First working day of the month i.e. for the securities expiring within the month.

Obtain approval of the competent authority for the action to be taken.

Department concerned/ Executing Department Cash and Bank section

Within 3 days

In case a security is to be encashed, follow the procedures specified in Process No. 5. Document - Records Document Title Letter Extension seeking Document Type I Format Ref -

Immediately

Frequency Within a day of receipt of report from Cash and Bank section Within a day of receipt of report from Executing Department At the end of every month -

Distribution Cash and Bank section Contractor/ Supplier Bank Executing Department Executing Department Section Concerned HOD(F) Deptt. Concerned GM(Project)

Proforma of Conditional Claim Report on securities expiring within next 90/60/30 days Report on conditional claims lodged, but extension not received

BG/06

MIR

BG/MIR/02

MIR

BG/MIR/03

At the beginning of every month -

Process: Amendment to Securities Process brief

Process No.: 03

At times the securities need to be amended for change in terms/value This process lays down the procedure to be followed for amendments to securities. While discharging this function it is to be ensured that: Any amendment to a security is duly approved. The amended security is routed through the department concerned for updating the system. Departments involved in the process Purchase department Contracts department Executing Department Finance and Accounts department (cash and bank section)

Procedure: Amendment to Securities S. Activity No 1 Obtain approval of competent authority for seeking amendments to the security. 2 Generate and send a letter to the bidder/vendor/contractor concerned seeking amendment to the security. Mark a copy to cash and Bank section and bill processing section concerned. Receive the amendment from the bank and ensure that the amendment is as per the requirement. Update the security register for the amendments. Follow the procedure detailed in process 1 for receipt, verification and confirmation of the securities 9 Person Responsible Department concerned/ Executing Department Department concerned/ Executing Department Frequency As and when Remarks

Same day

Department concerned/ Executing Department

As and when

Same day

S. Activity No 4 File the amendment along with the original security. Document - Records Document Title Letter seeking amendment to the security

Person Responsible Cash and Bank section.

Frequency

Remarks

Document Type I

Format Frequency Distribution Ref Within a - Bank day of - Department concerned/ receipt of Executing IOM Department

10

Process: Release of securities Process brief

Process No.:

04

This process lays down the procedure to be followed for release of securities as per approval of the competent authority. While discharging this function it is to be ensured that: . Departments involved in the process Purchase department Contracts department Executing Department Finance and Accounts department (cash and bank section and bills section concerned) The bill processing section concerned in the Finance and Accounts department reconciles all financial transactions with respect to the LOA / PO. The verification for compliance with the terms of the LOA/PO for release of security is complete. The security is released only upon receipt of the duly approved Release Order.

Procedure: Release of securities Sl No. 1 Activity Obtain approval of competent authority and prepare a release order and send to the bill processing section concerned. Receive release order for release of security Verify compliance with terms of PO / LOA. If found in order endorse for release and forward to the Cash and Bank Section. If not return the same to the department concerned / Executing Department. 11 Person Responsible Department concerned/ Executing Department Frequency As and when Remarks

2 3

Bill processing As and when section concerned Bill processing As and when section concerned With in a day

Receive the duly endorsed Cash and Bank Section release order. Update the system for release of the security. In case of BG, generate a letter to the Bank intimating the release of the security and send the original security to the bank along with the letter. In case of other non-cash security, generate a JV for release of the security and a forwarding letter. Follow the procedure as per manual on Books section for generation and authorisation of JV. Forward the security alongwith the forwarding letter to the department concerned for returning to the party. Send a copy of the release letter to the department concerned and to the section concerned in F&A Department.

As and when Within a day of receipt Same day

Document - Records Document Title Security Order Release Document Type I Format Ref Frequency As and when Distribution Section Concerned Cash and Bank Bank Section concerned in F&A. Department concerned/ Executing Department

Letter for release of security

BG/07

Within a day of receipt of approval -

12

Accounting Entries Cash and Bank Section EMD-Other than cash as per contra (Cap works) EMD-Other than cash as per contra (O&M works) EMD-Other than cash Security Deposits-Other than cash as per contra (Cap works) Security Deposits-Other than cash as per contra (O&M works) S.D.- Other than cash as per contra Dr Dr Cr Dr Dr Cr

13

Process: Invocation/ Encashment of securities Process brief

Process No.: 05

At times securities may have to be invoked/encashed due to non-compliance of the terms of one or more PO / LOA/ LOI by the supplier / contractor. This process lays down the procedure to be followed for invocation/ encashment of a security. While discharging this function it is to be ensured that: Approval of competent authority exists for invocation/ encashment and accordingly necessary action for realising the proceeds is taken. The letter signed by the POA holder along with the security is sent to the bank by registered AD post/speed post. If necessary, the security is carried to the bank, by hand, by the authorised person. The HOP and HOD(F) makes all efforts to encash the security in time.

Departments involved in the process Purchase department Contracts department Executing Department Finance and Accounts department (cash and bank section) Procedure: Invocation/ Encashment of security S. Activity Person No Responsible 1 Receive approval from the F&A Deptt department concerned/ Executing Section Department for invocation/ Concerned encashment of security. Frequency As and when Remarks

Same day Forward an advice to the Cash and Bank Section for invocation/ encashment of security Receive the advice for invocation/ Cash and Immediately encashment of security. Bank section on receipt of approval Update the security register and generate two copies of the letter to the banker concerned/issuing authority requesting for liquidation of the bank guarantee/encashment 14

S. No

Activity of other securities. Send one copy to the bank concerned/issuing authority along with the security. File the other copy of the letter along with the supporting documents in a separate file. Receive the proceeds of the security and account for the same as per procedure outlined in Cash and Bank manual. Generate a report of securities for which letters of invocation/encashment have been sent but proceeds have not been received from the bank.

Person Responsible

Frequency

Remarks

Cash and Bank Section Cash and Bank Section

As and when

Weekly

Cash and Forward the report to the HOD(F) Bank Section for review and taking the necessary follow up action Document - Records Document Title Letter invocation /encashment for Document Type O Format Ref BG/08

Weekly

Frequency Immediately on receipt of note sheet Weekly -

Distribution Bank Section concerned Department concerned/ Executing Department HOD(F)

Report on securities for which letters of invocation issued but money not received Accounting Entries

MIR

BG/MIR/04

Bank A/c EMD- forfeited account S.D. - forfeited account Other relevant Accounts (In addition to the above, reverse the original contra entry)

Dr Cr Cr Cr

15

Process: Physical verification of securities Process brief

Process No.: 06

This process lays down the procedure to be followed for physical verification of non-cash securities. While discharging this function it is to be ensured that: Bank guarantees / other non-cash securities are physically verified on a quarterly basis by an official from a section other than Cash and Bank section. Necessary action is taken to remove the deficiency, if any found on verification.

Procedure: Physical verification of securities S.No 1 Activity Generate a list of the securities from the security register. The list should contain the following information: Date and number of the security. Date of expiry Details of all extensions Amount Name of the contractor/vendor Name of the issuing bank. Purpose for which received LOA/PO no. and date Person Responsible Cash and Bank section Frequency As when and Remarks

Sign the list and forward it to the official identified for physical verification. Carry out the physical verification Official identified to as detailed below: carry out the Compare the securities physical physically available with the list verification prepared by Cash &Bank section Record on the list that the securities 16

On the day of the physical verification

S.No

Activity have been physically verified and are found to be in order as per the records. In case of any discrepancy, make a note on the list and sign. Obtain signature of the person in charge in Cash and Bank section on the list. Indicate the date of verification in the security register. Forward the report to the HOD (F) for information and necessary action. Review the list and take necessary action.

Person Responsible

Frequency

Remarks

HOD(F)

Within a day of receipt of the report

Document - Records Document Title List of securities physical verification for Document Type O Format Frequency Ref BG/09 Quarterly Distribution Official appointed for physical verification Section Concerned

17

INDEX OF FORMATS Format

Checklist for bank guarantees (BG) Receipt note Security Register Letter seeking confirmation Section-wise list of securities confirmed Securities entered in system but not received in F & A Dept. Proforma of Conditional Claim Letter for release of security Letter for invocation /encashment List of securities for physical verification MIR FORMATS List of securities pending for confirmation. Report on list of securities expiring within next 90/60/30 days Report on conditional claims lodged, but extension not received Report on securities for which letters of invocation issued but proceeds not received.

Format No.
BG/01 BG/02 BG/03 BG/04 BG/05 BG/06 BG/07 BG/08 BG/09 BG/MIR/01 BG/MIR/02 BG/MIR/03 BG/MIR/04

CHECKLIST FOR BANK GUARANTEES (BG) BG No ---------------Dated -----------Issued by --------------------------- on behalf of ----------------------------------For Amount ---------------Nature---------------PO/LOA reference no. and date----------Engineer-in-charge -------------------------Checklist Yes/ No Non-judicial stamp paper on which the BG is typed is purchased in the name of the bank The BG is executed on the non-judicial stamp paper of the appropriate value, within the validity period of the non-judicial stamp paper The BG is furnished as per NTPCs approved pro-forma. The BG is typed on both sides of the non-judicial stamp paper. Alternatively, the reverse side of the stamp paper is cancelled and signed. The Bank Officer executing the Bank Guarantee has furnished the number and date of power of attorney /delegation of Authority by which he has been authorized to issue the BG The person executing the BG has written his full name and designation All pages of the BG are signed by the persons executing the Bank Guarantee All cuttings/addition/writings in inks are authenticated by the person executing the BG by his signature and seal of the bank Execution of the BG is witnessed by two persons Witnesses have mentioned their full name and address Whether the BG is valid for the required period Confirmation sent on (date) Prepared by ---------------------------------------------

BG/01

RECEIPT NOTE Sl. No. Date NIT/PO/LOA No --------------------Date ------------------------------Bidder / Supplier/ Contractor ---------------------------------------Type of Security (BG/BONDS/FDR/NSC/OTHERS) ---------Nature of Security (EMD/IA/INA/CPG/ OTHERS)----------Particulars: (*) Details of security No. Date of issue Issuing authority Amount (Rs) Expiry/MaturityRemarks date

Checked and found to be in order

Engineer-in-charge --------------------------------------Comments/Instruction to F&A Deptt (if any) Note : In case of extension/ modification of the BG the same should be specified in the Particulars

BG/02
SECURITY REGISTER
Security S.No 1 Date 2 Executi ng Deptt 3 Receipt Note No 4 Date 5 Type 6 Security Nature 7 No 8 Date 9 NIT/PO/LOA No 10 Date 11 Bidder/Vendor/ Contractor Name Code 12 13 Issue Date 14 Authority 15 Amount (Rs/FC) 16 Date of expiry/maturity 17 Extension Date 18 Period upto 19

BG/02
Amendment Date Particulars 20 21 Release Date 22 SECURITY REGISTER (contd) Encashment Date Cheque No Amount and date (Rs) 23 24 25 JV reference No. Date 26 Remarks 27

BG/03

Letter seeking confirmation

Ref No Dated :

To,
The Manager (Address of bank) Subject: Bank Guarantee No. --------------- dated----------For_____________________ Dear Sir, We have received a Bank Guarantee issued by your bank bearing no. _________ dated _________ for (Rs)___________ ( in words Rs.) on behalf of ______________ as Bid Guarantee/ advance payment Guarantee/ Bank Guarantee towards successful performance of the Contract No. ____________ dated __________ .The captioned guarantee is valid upto ________________. You are kindly requested to return the second copy of this letter by registered post certifying under your Banks seal that the above mentioned Bank Guarantee has been properly executed and issued by you or by an authorised officer of the Bank. Yours faithfully, ) Name________ Designation________ CERTIFICATE Certified that the aforesaid Bank Guarantee has been properly executed by and issued by___________ as an authorised officer of the Bank with the particulars mentioned above, which are verified to be correct. 1. Signature:_________ 2. Name_____________ 3. Designation with Banks seal ________________ 4. Power of Attorney Signing Power No._____ REGD. Mail to Shri _______________ (Designation) National Thermal Power Corporation Ltd. (

BG/04 SECTION WISE LIST OF BGs CONFIRMED BY BANK As on ---------------Section :

Security
S.No 1 Date 2

Executi ng Deptt 3

Receipt Note No 4 Date 5

Security No 6 Date 7

NIT/PO/LOA No 8 Date 9

Bidder/Vendor/ Contractor Name Code 10 11

Issue Date 12 Authority 13

Sent confirmation Amount bank on (Rs/FC) (date) 14 15

Confirmation received from bank (date) 16

Remarks

17

Prepared By ----------------------------------------------

Approved By --------------------

BG/05 SECURITIES ENTERED IN THE SYSTEM BUT NOT RECEIVED IN F&A DEPTT As On ---------------------------------------

Section : Security
S.No 1 Date 2 Executi ng Deptt 3 Receipt Note No 4 Date 5 No 6 Security Date 7 Type 8 Nature 9 NIT/PO/LOA No 10 Date 11 Bidder/Vendor/ Contractor Name Code 12 13 Issue Date 14 Authority 15 Amount (Rs/FC) 16 Date of expiry 17 Remarks

18

Prepared By ----------------------------------------------

Approved By --------------------

BG/06

PROFORMA FOR LODGING CONDITIONAL CLAIMS UNDER THE BANK GURANTEE Ref No . To, The Branch Manager, (Address of bank) Subject: Conditional claim under Bank Guarantee No. valid upto ----------Dear Sir, Please refer to your Bank Guarantee No._______ Dated_______ for Rs ( in words Rs_______) valid upto______ which was issued by you in favour of National Thermal Power Corporation Limited -------------------- (Unit Address) for and on behalf of M/s._______________________(hereinafter called the contractor) towards the contractor no. ______ dated _____ awarded by National Thermal Power corporation Limited in favour of the contractor being advance guarantee/ contractor performance guarantee, security deposit / earnest money deposit guarantee. The captioned Bank Guarantee is going to expire on ________ (date). We do hereby request you to consider this letter as demand /claim lodged by us in terms of Bank Guarantee forthwith without any further notice in case you do not receive any instruction from ___________(Contractor), for extending the validity of the aforesaid captioned Bank Guarantee by period of next_______ month or you do not wish to extend the same on such instruction for any reason whatsoever. In such event you are requested to remit the guaranteed amount in terms of the guarantee in its letter and spirit by means of Bank Draft in favour of National Thermal Power Corporation limited payable at New Delhi. In the event of non receipt of the extended Bank Guarantee on Non Judicial stamp Paper of Appropriate value before the expiry of the validity of Bank Guarantee or Non Receipt of the guaranteed amount, National Thermal Power Corporation Limited shall be constrained to take appropriate legal action in the matter in terms of the guarantee. This is without prejudice to our rights under the guarantee and under the law. Kindly acknowledge receipt of the letter. Thanking You, Yours faithfully, For and on behalf of National Thermal Power Corporation Limited (Authorised Signatory) Dated for Date :

BG/07 Ref No. Date:

PERFORMA FOR RELEASE OF BANK GUARANTEE

To, The Branch manager, (Address of bank) Subject : Release of Bank Guarantee No.______________________ ____________valid upto_______________ Dear Sir, Please refer to your Bank Guarantee(s) No._________ dated _________for Rs._____________(in words ------------) and its extension thereof issued by you in favour of National Thermal Power corporation limited, --------------------------(Unit Address) for and on behalf of M/s. _______________________ (herein after called the contractor as an advance Guarantee / as contract Performance Guarantee / as security Deposit / Earnest Money Deposit. In terms of the aforesaid guarantee (s) we do hereby release the guarantee (s). Kindly acknowledge receipt of this letter. Thanking you, Your faithfully, For and on behalf of National Thermal Power Corporation Limited (Authorised Signatory) dated _____________ for

BG/08 Ref No. (To be issued before expiry of BG) To, The Branch manager, (Address of bank) Subject : Invocation of Bank Guarantee No.______________________ for ____________valid upto_______________ Dear Sir, Please refer to your Bank Guarantee(s) No._________ dated _________for Rs._____________(in words ------------) and its extension thereof issued by you in favour of National Thermal Power corporation limited, --------------------------(Unit Address) for and on behalf of M/s. _______________________ (herein after called the contractor as an advance Guarantee / as contract Performance Guarantee / as security Deposit / Earnest Money Deposit. In terms of the aforesaid guarantee (s) we do hereby make a demand on you to remit a sum of Rs.______________ (in words------------) together with interest to us immediately by means of Bank Demand Draft in favour Of National Thermal Power corporation limited payable at -------------- (specify the place). This supercedes our conditional claim letter No.__________ dated_______________. Kindly hand over the Bank Demand Draft to the bearer of this letter, whose signature is attested below. Your co operation in the matter is solicited. Kindly acknowledge receipt of this letter. Please treat this matter as Most Urgent. Thanking you, Your faithfully, For and on behalf of National Thermal Power Corporation Limited (Authorised Signatory) dated _____________ Date:

PERFORMA FOR INVOCATION OF BANK GUARANTEE

BG/09 LIST OF SECURITIES FOR PHYSICAL VERIFICATION

As on -------------------Security
S.No 1 Date 2 3 Executing Deptt No 4 5 Security Date Type 6 Nature 7 NIT/PO/LOA No 8 Date 9 Bidder/Vendor/ Contractor Name Code 10 11 Issue Date 12 Authority 13 Amount (Rs/FC) 14 Date of expiry 15 Extension Date 16 Period upto 17 Remarks

18

BG/MIR/01 LIST OF SECURITIES PENDING CONFIRMATION As On --------------------------------------Section :

Security
S.No 1 Date 2

Executi ng Deptt 3

Receipt Note No 4 Date 5

Security No 6 Date 7

NIT/PO/LOA No 8 Date 9

Bidder/Vendor/ Contractor Name Code 10 11

Issue Date 12 Authority 13 Amount (Rs/FC) 14 Date of expiry 15

Request for Remarks confirmation s to bank on (date) 16 17

Prepared By ----------------------------------------------

Approved By --------------------

BG/MIR/02 LIST OF SECURITIES EXPIRING IN THE NEXT 90/60/30 DAYS As On -------------------

Security
S.No 1 Date 2

Executi ng Deptt 3

Security No 4 Date 5 Type 6 Nature 7

NIT/PO/LOA No 8 Date 9

Bidder/Vendor/ Contractor Name Code 10 11

Issue Date 12 Authority 13 Amount (Rs/FC) 14 Date of expiry 15

Remarks

16

Prepared By ---------------------------------------------Note:

Approved By --------------------

The action taken in respect of the above securities say extension requested for/ release order to be issued should be indicated in the Remarks column by the E-I-C and a copy returned to Cash & Bank Section The report is to be generated monthly for securities expiring in the next 90 days, 60 days as well as 30 days

BG/MIR/03 LIST OF CONDITIONAL CLAIMS LODGED, EXTENSION NOT RECEIVED As On -------------------

Section : Security S.No

1 Date 2

Executi ng Deptt No 3 4 5

Security Date Type 6 Nature 7

NIT/PO/LOA No 8 Date 9

Bidder/Vendor/ Contractor Name 10 Code 11 Date 12 Authority 13

Issue Amount (Rs) 14 Date of expiry 15

Conditional Claim Letter Date No 16 17

Remarks

18

BG/MIR/04 REPORT ON LETTERS OF INVOCATION ISSUED BUT PROCEEDS NOT RECEIVED

As on -------------------Date : Executi Security ng

Deptt S.No 1 Date 2 3 No 4 5

Security Date Type 6 Nature 7

NIT/PO/LOA No 8 Date 9

Bidder/Vendor/ Contractor Name 10 Code 11 Date 12 Authority 13

Issue Amount (Rs/FC) 14 Date of expiry 15

Invocation Letter No 16 Date 17

Remarks

18