Para 10.5 — GOODS_MANUAL

2. Determining Reserve Price: In any mode of disposal, material should not be sold at rates per lot, but bids should be registered by rate per unit (number, length, or weight) so that a complete check on the quantity delivered can be exercised at any time. The Head of Office holding the stock may determine the reserve price with the concurrence of the Associated/Integrated Finance and approval of CA. In case of large value disposals, a Reserve Price Committee may be appointed to recommend the reserve price. The use of external costing experts, price databases, price indices and data sharing may be done in the same manner as detailed in Chapter 2, para 2.1-2-f) relating to the estimate of procurement cost. Large newspapers and economic dailies have dedicated sections dealing with rates in the scrap market. The reserve price should be recorded on a pagenumbered register before the date of disposal. This register should be sealed immediately after the reserve prices of all lots are recorded in the register and kept in safe custody. The sealed register should be opened just before the e-auction creation/tender opening. Some methods for determining reserve prices are given below. However, these methods are neither exhaustive nor mandatory. These methods should not be followed blindly, and there should be an application of mind in judging the reserve price:

a) Book value with depreciation. In case the Book value is not available or has become insignificant, the reserve price may be based on 5% of the Original or Market cost of the new item; b) Last sale price moderated by quantity, quality, location, market condition, price trend of various metals, and so on; c) The prevailing market price ascertained through a market survey d) Costing analysis based on costs of various elements of the item (discounted for melting losses), labour charges, transportation costs, etc. e) In cases where the reserve price cannot be fixed as per the procedure, a registered value may be engaged in the valuation of such material, and the Reserve Price Committee may consider the valuation given by the valuer while recommending the reserve price. However, the use of a valuer is not mandatory and is optional.

10.5. Preparation for Disposal 1. Scrap recommended for disposal should be segregated from other materials into an identifiable lot. It should be marked as such with a board indicating the lot number and a brief description. Valuable scraps such as non-ferrous metals should be secured in lockable rooms.

10.6. Conditions of Disposal Applicable to all Modes of Disposal 10.6.1 ‘As-Is-Where-Is’ basis. Notwithstanding anything contained in the e-auction or advertisement issued on the description and particulars of material for sale, the sale is on an ‘as-is-where-is’ basis only, and the principle of caveat emptor (let the buyer be aware) will apply. ‘As-is-where-is’ means that the description/quality/quantity indicated is approximate, and the seller does not give any assurance or guarantee that the material will strictly adhere to the details given in the advertisement or e-auction. All items shall be taken delivery of from the site by the successful bidders, with its faults and errors in description, if any. Neither can the sale be invalidated, nor can the bidder make any claim/compensation whatsoever on account of any defect in description or deficiency in the quantity and quality. No plea of misunderstanding or ignorance of conditions put forth after confirmation of sale shall be accepted.