TERMS OF PAYMENT

REQUEST TO DEFER PAYMENT

KHANNA ENTERPRISES
82, D. B. Gupta Road,
Karol Bagh,

New Delhi (India).

To
Dhara
E-18, Surajpur
Dadri Road
Noida (India)

Dear Sirs,
We have received your letters of 15th July 1999; reminding us that payment of the amount of March 1999 statement is overdue. we we under under the impression that payments was not due until the end of this month ,when we would have no difficulty in seetling your account .it would seem,however that we misunderstood your terms of payments
If u could allow us to differ the payments for a further three weeks our present difficulty
Is purely temporary.before the end of this month payments are due to us from a number of our regular costumers who are notably prompt payers.
We very much regret having to make this request but hope you will be able to grant it.

Yours faithfully,
Abhishek.j.
(Proprietor)

Dated: 28th July, 1997

REPLY OF THE LETTER

Dear Sir,

Having carefully considered your letter of 28th July 1997 we have decided to allow you to defer payment of the amount standing in your name.
We grant the request because yours is an exceptional case, you were very prompt in settling your accounts in the past and hope that in future dealings you will be able to honor our terms of payment. As you do not seem to have been clear about them we take this opportunity to remind you that are as follows.
(a) We allow credit for 60 days from the date of invoice.
(b) 4% extra discount will be admissible if payment is made within 15 days.

Yours faithfully,
S. K. Madan
(Sales manager)

Dated: 4th Sept., 1997

REPLY TO THE LETTER DECLINIG REQUEST FOR DEFFERING PAYMENT

HI-FI ELECTRONICS
6/1, Nehru Place,

New Delhi.

To
Bindra Electronics
4/1, Chowrangee centre
Calcutta.

Dear Sirs,
I am replying to your letter of 28th August 1997 asking for immediate payment of Rs. 18000 due on your invoice no. P1/3224/97-98 dated 26th July 1997.
When we wrote promising to pay you in full by 12th of this month, we expected to do so, but unfortunately we were called upon to meet an unforeseen and unusually heavy demand earlier this month.
We are therefore enclosing a cheque for Rs. 10, 000 on account and ask you to be good enough to allow us a further three weeks to pay you the balance. We now have no special commitments outstanding and fully expect to be able to settle your account in full by the end of November. If you could grant the deferent we would be obliged.

Yours faithfully,
K. P. Singh
(Proprietor)

Dated: 4th Sept., 1997

REPLY OF THE PREVIOUS LETTER

BINDRA ELECTRONICS
4/1, Chowrangee Centre
Calcutta.

To
Hi-Fi Electronics,
A-19/1, Nehru Place
Delhi (India).

Dear Sir,
Thank you for your letter dated 4th September 1997 sending a cheque of Rs. 10000 on account and asking for time to pay the balance.

Your account is now more than two months overdue we find your present cheque quite insufficient and it is hardly reasonable to expect us to wait for another three weeks for the balance particularly as we invoiced the goods at an especially low price and told you so at that time.
We realize your difficulties, but need hardly remind, you it is in our customers
Long-term interests to pay their accounts promptly and thus quality for discount and at the same time build a reputation for financial reliability. We hope therefore in your own interests you will make arrangements to clear your account without further delay. We look forward to receive your cheque for the balance within the next few days.

Yours faithfully,
Peter John.
(Sales Manager)

Dated: 14th September, 1997