policya&hcentres

8/11/2019 PolicyA&HCentres

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DOC: HM/AHC/Policy/1

May 2014

APPENDIX A

BUREAU OF INDIAN STANDARDS

POLICY FOR RECOGNITION & OPERATION OF ASSAYING & HALLMARKING CENTRES

SCOPE OF RECOGNITION

1.

An Assaying and Hallmarking Centre (AHC) set up in accordance with requirements specified in IS

15820:2009 for assaying and hallmarking of gold and/or silver jewellery/artefacts will be recognized by Bureauof Indian Standards (BIS) subject fulfillment of the stipulated terms and conditions. The policy for recognition

and operational issues shall be as detailed in this document.

PRE-REQUISITES FOR GRANT OF RECOGNITION

2. The promoter(s) of AHC shall not have any linkage with any jeweler as stated under clause 4.1.1 of IS15820:2009.

3. The promoter(s) or any of their close relatives should not have earlier been convicted for any criminal

offence, or should not have been involved in any serious irregularity in the running of any other AHC during thelast five years. If the promoter(s) or any of his/their close relative(s) has been a convicted under the BIS Act orde-recognized by BIS due to any unethical practices, he/they shall not be eligible to apply for grant ofrecognition of the AHC for a period of five years from the date of such conviction/de-recognition. Each centrewhere actual assaying and Hallmarking is being done shall be required to create assaying facilities and obtain

independent recognition.

AHC operating presently with recognition and having off-site operation(s) shall convert such off-site unit(s)into full-fledged AHC(s) before next renewal of recognition. Otherwise, BIS shall de-recognize such off-siteoperation.No fresh recognition to off-site centre shall be given.

PRE-RECOGINITION PROCEDURE

4. Any promoter(s) wishing to establish an AHC shall apply to the concerned RegionalHallmarking Coordinating Officer (HMO) at the concerned Regional Office of BIS for grant of a Letter ofIntent (LOI) to recognize the AHC. The application shall be made on a form downloaded from BIS website.The application shall indicate whether recognition is required for assaying and hallmarking of gold and/orsilver. The application shall be submitted online as soon as such a facility is made available by BIS.

5. The downloaded application form duly filled in or a print-out of the online submission of applicationfor grant of LOI and supporting documentation shall be submitted in the form of a spiral bound document,

along with the prescribed processing fees. The Quality Manual, clearly indicating the details of deviations theywish to make from the Generic Quality Manual, also in the form of a spiral bound document, shall also besubmitted with the application.


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6. The following shall be verified before the grant of LOI:

i. Eligibility of the promoter(s);ii. Suitability/title of premises where AHC is proposed to be established (as per clause 4.1.1 of IS

15820:2009);iii. Acceptance of the Quality Manual with deviations from the Generic Quality Manual;

iv. Acceptance of the terms and conditions for the Recognized AHC.

7. An application for grant of LOI may be rejected by HMO with the approval of Deputy Director Generalof the Region (DDGR), with the reasons of rejection being clearly explained in the letter communicating suchrejection,for any one or more of the reasons below:

i.

If the application is found not complete;

ii. Promoter(s) is/are found not eligible for setting up a recognized AHC (as per clauses 2 and 3above);

iii. Premises where the AHC is proposed to be established is not found suitable as per the requirements

of accommodation and environmental conditions as specified under clause 5.3 of IS 15820:2009;iv.

The proposed deviations from the Generic Quality Manual are found not acceptable;

v. The promoter(s) do not accept the terms and conditions of a BIS Recognized AHC.

8. The applications that are found suitable for grant of LOI shall be forwarded through the DDGR to Head,Hallmarking Department in BIS Headquarters. The LOI shall be granted by Deputy Director General,(Hallmarking) [DDG(HP)].

9. The Processing Fees paid with application for grant of LOI will not be refundable in case ofrejection of the application.

PROCEDURE FOR RECOGNITION

10. The LOI as above shall be valid for a period of 6 months. The promoter(s) shall be required to complywith following requirements within the given period of six months and obtain recognition for the AHC:

i. Ensure availability of required infrastructure as per clause 5.5 of IS 15820:2009;ii. Appoint qualified and trained manpower for testing and Hallmarking as per clause 5.2 of IS

15820:2009;iii. Prepare and submit final Quality Manual for approval;iv.

Professional Indemnity Insurance as per clause 4.9.3 of IS 15820:2009;v. Payment of Application and Initial Assessment fees as per Para 21 below;

vi. Indemnity Bond in the format given at Annex A;

vii. Bank Guarantee in the format given at Annex B; andviii. Payment of Recognition Fee (optional at the time of submission of application for recognition. Can also be

paid once the decision to recognize the AHC is taken by BIS).

11.

BIS shall record the application and arrange for Pre-recognition Initial Assessment of the AHC (of 4

man-days duration) preferably within 15 days of recording the application to determine whether the AHC hascreated the necessary wherewithal for assaying and hallmarking according to IS 15820:2009.

12.

I f t he assessment report is found in order, HMO shall prepare the proposal for grant of recognitionsubject to fulfillment of respective requirements and put up to the DDGR. Recognition will be granted by the

DDGR in respect of gold and/or silver hallmarking.


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13. HMO shall thereafter advise the applicant to deposit the recognition fees, if the same has not alreadybeen deposited. The grant of recognition shall be done only after receipt of fees. The effective date ofrecognition shall be the date the grant of recognition by BIS. The recognition will be granted for a period ofthree years.

14. As soon as such a facility is made available, the letter of recognition would be generated from the BIS

website by the HMO once he has uploaded the complete particulars of the recognized AHC.

15.

The logo of each AHC will be displayed on BIS website. The logo on the website will be of lowerquality to avoid any misuse of the same.

RENEWAL / EXPIRY OF RECOGNITION

16. A notice will be issued by BIS three months before the date of expiry of recognition, advising the AHC

to submit application for renewal of recognition. The application should be submitted to BIS two monthsbefore the last date of validity along with requisite fees. A reminder will be issued by BIS one month before

expiry of validity of the recognition in case the application is not received.

17.

The recognition of an AHC will be renewed by DDGR subject to receipt of renewal application withprescribed fees, satisfactory performance observed during surveillance assessments and renewal assessment, nofailure reported on testing samples of articles hallmarked by the AHC in current operative period, no complaint

of any nature against the AHC is pending with BIS either from jewellers or consumer and dues, if any havebeen cleared. An assessment as specified under para 11 above shall be carried out before the renewal ofrecognition. HMO will process the case and obtain the approval of DDGR to the proposal.

18. Recognition of the AHC shall become non-operative after the last date of its validity if renewal has not beendone by BIS due to one or more of the following reasons:

i. Renewal application with fees not submitted till last day of validity of recognition;ii. Royalty or any other dues has not been cleared;

iii.

Failure to pay penalty;iv. Suspension of hallmarking is continuing;v.

Multiple failures on independent testing of articles hallmarked by the AHC;vi. Unsatisfactory performance observed during last surveillance assessment/renewal assessment.

19. A notice for expiry of recognition shall be issued under signature of DDGR, preferably by e-mailfollowed by Registered Post or by Speed Post, informing that renewal has not been considered, citing thereasons of such decision with advise to complete actions within one month. The provision for hearing will bementioned in the notice. If no response is received within the stipulated period, the recognition granted to theAHC will be expired.

20.

If submission of application for renewal has been delayed by the AHC, such application will be

accepted by BIS along with delayed payment charges calculated @ 2% per month or part of delay upto threemonths from last date of validity of recognition. Renewal of recognition will be considered with retrospectiveeffect by BIS subject to compliance with all requirements by the AHC as have been explained under para 18including corrective actions on observed discrepancies, reported failures and their verification.

21.

If renewal of recognition is pending with BIS due to any reason which cannot be assigned to the AHC,

though renewal application along with requisite fees, dues have been received before the expiry date ofrecognition, the AHC shall be allowed to function as a recognized centre till a decision on the renewal

application is taken by BIS.


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APPLICABLE FEES

22.

The applicable fees shall be as follows:

Processing Fees for Letter of Intent Rs 5000/-

Application Fees Rs 5000/-(for grant of recognition or renewal)

Assessment Fee Rs 5 000/- per man-day

Recognition/Renewal Fee (for three years)

For AHCs located in Metros and cities Rs 60 000/-

with population more than 10 lakhsas per 2011 census

For AHCs located in other cities Rs 40 000/-

23. The travel and stay expenses of the auditors shall be borne by the AHC for Pre-recognition InitialAssessment and Renewal Assessment. In case of Special Assessment on request of AHC, travel and stay

expenses of the auditors shall also be borne by AHC

24.

Applicable taxes as per prevalent rates shall be payable in addition to above.

CHARGES FOR HALLMARKING, BIS SHARE AND PAYMENT THEREOF

25. The charges for Hallmarking payable by jeweler to AHC shall be fixed by BIS from time totime. Applicable taxes as per prevalent rates shall also be payable.

26.

A sum of Rs 5.00 for each hallmarked article, with a minimum of Rs 30.00 per consignment ofjewellery/artefacts, shall be payable as BIS share of Hallmarking charges by AHCs located in Metros and citieswith more than 10 lakh population as per 2011 census. The sum payable by AHCs located in other cities/towns

shall be Rs 2.50 per article with a minimum of Rs 15.00 per consignment of jewellery/artefacts. Taxes asapplicable shall also be paid to BIS.

27.

The AHC shall furnish BIS with details pertaining to each jeweler-licensee about quantity of jewelleryreceived, assayed and hallmarked and rejected along with hallmarking charges collected from such jeweller

during preceding month positively along with the BIS share and applicable tax by 5thof the next month to BIS.The share of BIS of the hallmarking charges collected from jewellers shall paid on actual basis as per the ratesmentioned under Para 28.

28.

Simple Interest @ 2% per month shall be payable by AHC if payment of BIS share is made after duedate. Interest shall be calculated on full month basis. If an AHC does not make payment for two months on acontinuous basis, administrative action of de-recognition shall be taken, followed by legal action as maydeemed necessary.

29. AHC shall submit its statement of accounts as audited by Chartered Accountant once a year for the

previous financial year by 30 September of next financial year. The statement shall also confirm that servicetaxes collected on hallmarking charges from licensed jewelers have been deposited with the concerned

Government authorities.


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OBLIGATIONS OF RECOGNIZED AHC

General

30. The AHC shall not use the logo of BIS on any of its documents such as letter heads, receipts, invoices,

test reports, etc. However, use of words BIS Recognized Assaying & Hallmarking Centre is permitted onsuch documents and also for publicity through print and/or electronic media about the recognition granted to it

by BIS.

31. A recognized AHC shall neither use its recognition in any manner so as to bring disrepute to BIS nor

shall make any statement relevant to its recognition which may be considered misleading by BIS.

32.

BIS shall be kept informed of changes in machinery, equipment, assaying personnel, non-availability ofcertified reference materials and break-down of any major equipment affecting sampling, assaying, hallmarkingactivities.

33. The AHC shall not subcontract any of its activities including sampling, assaying and hallmarking to any

other agency as specified under clause 4.5 of IS 15820:2009.

34. Auditor(s) of BIS will carry out assessments of recognized AHC usually without giving any prior

intimation. The AHC shall cooperate with auditor(s) and provide all facilities for carrying out such assessment.

Assaying and Hallmarking

35. The AHC shall accept gold/silver jewellery/artefacts only from licensed jewelers for assaying and

hallmarking on chargeable basis. The request of jeweler for hallmarking shall be reviewed as per clause 4.4.6 ofIS 15820:2009.

36. The AHC shall be fully responsible for accurate determination of precious metal (gold/silver) content in

jewellery/artefact and marking of the BIS Hallmark on the jewellery/artefact. The testing shall be carried out inaccordance with clause 5.4 of IS 15820 using only calibrated equipment and certified reference materials.

37. The AHC shall not accept such jewellery/artefact which bears any marking including KDM orfineness/caratage. No other mark shall be applied on Hallmarked jewellery/artefact.

38. The AHC shall not use hallmark on such medallions/coins which resemble with currency of anycountry.

39. Jewellery/artefacts, which on analysis by XRF machine found to have a negative variance of more than5 parts per thousand (ppt) from the declared value of fineness, shall not be accepted for further assaying. Such

item(s) shall be returned to the jeweller without assaying and hallmarking.

40.

The check assay gold cornets shall be retained with proper identification and traceability till such timethey are melted as per direction issued by BIS. The cornet left after assaying along with hallmarked/rejected

jewellery/artefacts shall be returned to the jeweler. All cornets shall be properly identified ensuring traceability.

Appropriate record such transaction shall be maintained at least for 3 years.

41.

All technical records shall be retained for a period of minimum three years as specified under clause

4.13.3 of IS 15820:2009.


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Other Obligations of AHC

42. The AHC shall also accept hallmarked jewellery from a consumer for verification of purity and issue

report of assaying giving proper identification as marked on the article.

43. The AHC shall authorize the person carrying out the assay of jewellery to appear as witness before theConsumer Forum, if required to testify an assay report issued by the AHC.

PENALTIES IN CASE OF INCORRECT HALLMARKING

44. If the fineness in a jewellery/article hallmarked by the AHC is found lower thandeclared/specified fineness upon testing by BIS during its assessments of the AHC or by independenttesting in a notified referral laboratory of a sample drawn by BIS from the market/customer sample, the

AHC shall be liable to pay a penalty as calculated below:

For first failure

Penalty amount = Difference in fineness observed on testing X Weight of Gold/Silver

article X Gold/ Silver rate X 2

For second failure (within 6 months from the date of drawl of first sample )

Penalty amount = Difference in fineness observed on testing X Weight of Gold/Silver


For third failure (within 12 months from the date of drawl of first sample)

Penalty Amount = Difference in fineness observed on testing X Weight of Gold/Silver


Gold/Silver rate (spot rate at MCX) as applicable on the day of testing of the sample.

The above shall be applicable for a recognition period of three years. However, In addition to payment of

the penalty, the AHC shall be de-recognized if three failures are observed in one year.

45. If Iridium, Ruthenium and/or Cadmium is detected in a sample of hallmarked gold article or Leadand/or Cadmium in a silver hallmarked article, the AHC shall be liable to pay a penalty as mentioned

below:

For first failure = Rs 500

For second failure (within 6 months = Rs 1000

from the date of drawl of first sample)

For third failure (within 12 months from = Rs 1500

the date of drawl of first sample)

46.

The above shall be applicable for a recognition period of three years. However, In addition to payment

of the penalty, the AHC shall be de-recognized if three failures are observed in one year.


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SUSPENSION OF HALLMARKING/DE-RECOGNITION

47. Suspension of recognition of the AHC shall be done with approval of DDGR on observation of any ofthe discrepancies as follows, which may occur in a AHC during its operation and as have been classified intofour categories, namely category I, II, III or IV. Each category may have one or more issues as stated below:

Category I: (issues affecting the eligibility to be recognized)

i. Occurrence of any natural calamity that affects the operations of AHC;ii. Prolonged closure of AHC due to any reason;

iii. Shifting of premises;iv. Non-intimation of significant changes in AHCs management;v. Non-availability of valid power supply;

vi. Non-payment of the BIS share of hallmarking charges.

Category II: (issues likely to affect the ability to conduct proper testing of samples)

i.

Inadequate maintenance and calibration of test equipment, namely XRF machine, weighingbalances, furnaces (cupellation, annealing);

ii. Inadequate trained and competent testing personnel;iii.Breakdown of proper quality control systems as observed during audits;iv.Failure to take corrective actions within stipulated timeframe on discrepancies reported during

assessments.

Category III: (improper operation of AHC, possibility of incorrect test results)

i. Prima-facie evidence suggests that test results reported by AHC are not genuine / valid;ii.

Repeated occurrence of discrepancies as reported earlier;iii. Failure to observe terms and conditions of the agreement;

iv.

Non-maintenance of updated check gold consumption record and cornets of check gold;v. Lack of cooperation with BIS in conduct of assessments or in resolving issues;vi.Non-availability of proper record for a particular lot(s) of hallmarked articles;vii.

Re-test of a sample on the request of a consumer in a referral lab shows significant deviationin test results.

Category IV (unethical practices)

i. Hallmarking done without testing and assaying;ii.

Testing and issuing test reports for precious metal which is beyond scope of recognition,without seeking formal inclusion of the precious metal in their scope of recognition;

iii.Application of unauthorized Hallmark;

iv.

An article of lower purity is Hallmarked with higher purity;v. Hallmarking done on article containing prohibited elements;vi.

Hallmarking for non-licensee jeweler;vii.

Hallmarking done for non-licensee jeweler using logo of licensed jeweler;

viii.Hallmarking done applying without BIS logo and AHC's logo;ix.Hallmarking done using logo of another Centre;x. AHC found indulging in any other un-ethical practices.


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48. The order of suspension of recognition of the AHC, on observation of any of the discrepancies statedunder Category I, shall be communicated by email followed with a letter by registered post or speed post. The

AHC will be required to take necessary corrective action. Suspension shall be revoked once AHC intimatesabout the corrective action taken and after a paid Special Assessment has been carried out to verify the same

and testing.

49. The order of suspension of recognition of the AHC, on observation of any of the discrepancies statedunder Category II, shall be communicated along with quantum of penalty being imposed, by email followedwith a letter by registered post or speed post. The AHC will be required to take necessary corrective action.Suspension shall be revoked once AHC intimates about the corrective action taken, verification of the same by a

paid Special Assessment and testing and payment of penalty amount as imposed. The penalty as explained inTable 1 shall be imposed for any one or more of the discrepancies mentioned under para 47 pertaining toCategory II.

50. The order of suspension of recognition of the AHC, on observation of any of the discrepancies statedunder Category III, shall be communicated along with quantum of penalty being imposed, by email followed

with a letter by registered post or speed post. The AHC will be required to take necessary corrective action.

Suspension shall be revoked once AHC intimates about the corrective action taken, verification of the same bya paid Special Assessment and testing and payment of penalty amount as imposed. The penalty as explained inTable 1 shall be imposed for any one or more of the discrepancies mentioned under para 47 pertaining toCategory III.

51.

The order of suspension of recognition of the AHC, on observation of any of the discrepancies stated

under Category IV, shall be communicated along with quantum of penalty being imposed, by email followedwith a letter by registered post or speed post. Steps shall be initiated for derecognition of the AHC afterfollowing the due procedure of issuing a notice and a hearing if requested by the AHC. The AHC, or any other

AHC where any of the directors / owners or the family members of the derecognized AHC have any stake, willnot be eligible to apply for fresh recognition for a minimum period of 5 years from the date of such de-recognition. HMO shall communicate the decision of de-recognition to the AHC, informing that subsequent to

de-recognition it is not a u t h o r i z e d to u s e hallmark o n gold/silver jewellery/artefacts.

Table 1 : Category of Discrepancy vis--vis Penalty

Category Penalty

Category II 1st Instance Rs 10 000/- of recognition fee;

2nd Instance Rs 20 000/- of recognition fee; 3rd Instance - Derecognition.

Category III 1st Instance Rs 20 000; 2nd Instance Rs 50 000; 3rd Instance - Derecognition.

Category IV Derecognition;

Forfeiture of Performance Bank Guarantee; Ineligibility to apply for fresh recognition for minimum 5 years.

52.

The AHC after de-recognition shall not claim in a d ve r t i s e me n t nor in any other publicity material

that it is a BIS recognized Assaying and Hallmarking Centre. All such publicity material which claims that theAHC is a BIS recognized Assaying and Hallmarking Centre should be destroyed or such markings

obliterated/defaced immediately.


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53. Any action taken by BIS concerning suspension and/or de-recognition of an AHC shall be immediatelynotified on BIS website.

PROVISION OF APPEAL IN CASE OF DE-RECOGNITION

54. The AHC may appeal within a period of ninety days against the decision of de-recognition to Director

General, who may admit the appeal e v e n after ninety days, provided sufficient cause for not preferring theappeal earlier is submitted by the appellant.

55. Appeal on plain paper shall be lodged in duplicate, accompanied by a copy of the de-recognition order

and a fee of rupees one thousand in the form of a Demand Draft drawn in favour of BIS. The Director Generalmay call for relevant papers and after such inquiry in the matter as it considered necessary and after giving an

opportunity to parties to be heard, pass speaking orders and any such order shall be final.


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1.

ANNEX A

INDEMNITY BOND

This Indemnity Bond is executed on this _____ day of ____________, 20____at______________by M/s__________________________________, a company / firm having its Assaying & Hallmarking Centreat_____________________and registered / corporate office at ______________________ and

represented through Shri/Smt _____________________________, son/wife/daughter of Shri___________________, its duly authorized representative (hereinafter referred to as the A & H Centre),

in favour of Bureau of Indian Standards, having its headquarters at Manak Bhavan, 9 Bahadur Shah ZafarMarg, New Delhi - 110 002 (hereinafter referred to as the Bureau) :

WHEREAS the A & H Centre has approached the Bureau for grant of recognition of the A&H centre forassaying & hallmarking of the gold jewellery/article which conforms to Indian Standard IS 1417:1999.

AND WHEREAS as per the hallmarking scheme of the Bureau under which the recognition is granted to

the A & H Centre by the Bureau on being satisfied that the A & H Centre fulfills the requirements forcompetence of assaying & hallmarking centres as laid down in IS 15820 merely gives a recognition to theA & H Centre to carry out assaying and hallmarking on gold jewellery/article conforming to the IndianStandard;

AND WHEREAS the responsibility of accuracy of the purity marked on jewellery/article is the soleresponsibility of the A & H Centre, and in case of non-conformance, the recognition of A & H Centre isliable to be cancelled by the Bureau;

AND WHEREAS the A & H Centre has entered into an Agreement with the Bureau in connection with

grant of recognition, wherein it is stipulated that the A & H Centre shall execute the present IndemnityBond to hold the Bureau indemnified and harmless against any third party claims in respect of non-conformity of the jewellery/article hallmarked by the A & H Centre.

NOW THEREFORE this Deed witnesses and it is agreed to and undertaken by the A & H Centre to

safeguard the interests of the Bureau and to keep them harmless against any claim or demand made orproceedings initiated by any one against the Bureau in respect of non-conformity of the jewelleryhallmarked by A&H Centre on which the Hallmark is used, and indemnify the Bureau in that regardincluding damages, interest or cost thereof.

IN WITNESS WHEREOF this Deed has been executed at _______________ by the aforesaid A & HCentre through its Authorized Representative, in the presence of witnesses.

A&H Centre:

Witnesses:

1.


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ANNEX B

PERFORMANCE BANK GUARANTEE

The Director General

Bureau of Indian Standards

Manak Bhavan

9 Bahadur Shah Zafar Marg

New Delhi - 110 002

In consideration of Bureau of Indian Standards (hereinafter called BIS or the Bureau) having

agreed to exempt _______________________________ (hereinafter called the A & H Centre) from thedemand under the terms and conditions of an agreement bearing No. _______________ dated

____________ entered into between the Bureau and the A & H Centre in respect of grant of BISRecognition of the A & H Centre (hereinafter called the agreement), of security deposit for the duefulfillment by the A & H Centre of the terms and conditions contained in the said Agreement, on

production of the bank guarantee for _____________________________, we,_____________________________ (hereinafter referred to as the bank) at the request of M/s__________________________ (A & H Centre), do, hereby, undertake to pay to the Director General ofthe Bureau by Cheque/ Demand Draft, on behalf of the Bureau, an amount not exceeding Rs 5 00 000(Rupees five lakhs only) against any loss or damage caused to or suffered or would be caused to or

suffered by the Bureau by reason of any breach by the said A & H Centre of any of the terms orconditions contained in the said Agreement.2. We, _________________, do hereby undertake to pay the amounts due and payable under thisguarantee without any demur, merely on a demand from the Bureau by reason of breach by the said A &H Centre of any of the terms or conditions contained in the said Agreement or by reason of the A & H

Centres failure to perform the said Agreement. Any such demand made on the bank shall be conclusiveas regards the amount due and payable by the Bank under this guarantee where the decision of the Bureauin these counts shall be final and binding on the bank. However, our liability under this guarantee shall berestricted to an amount not Rs 5 00 000 (Rupees five lakhs only).3. We undertake to pay to the BIS any money so demanded notwithstanding any dispute or disputes

raised by the A & H Centre in any suit or proceeding pending before any court or tribunal relating thereto,our liability under this present being absolute and unequivocal. The payment so made by us under this

bond shall be valid discharge of our liability for payment thereunder, and the A & H Centre shall have noclaim against us for making such payment.

4. We ______________________further agree that the guarantee herein contained shall remain infull force and effect during the period that would be taken for the performance of the said agreement and

that it shall continue to be enforceable till all the dues of the Bureau under or by virtue of the saidAgreement have been fully paid and its claims satisfied or discharged or till the Bureau certifies that theterms and conditions of the said Agreement have been fully or properly carried out by the said A & H

Centre and accordingly discharges this guarantee. Unless a demand or claim under this guarantee is made


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on us in writing on or before _________________, we shall be discharged from all liabilities under thisguarantee thereafter.

5. We _______________________________further agree with the Bureau that the Bureau shall

have the fullest liberty without our consent and without affecting in any manner our obligations hereunderto vary any of the terms and conditions of the said Agreement or to extend time of performances by thesaid A & H Centre from time to time or to postpone for any time or from time to time any of the powersexercisable by the Bureau against the said A & H Centre and to forbear or enforce any of the terms and

conditions relating to the said agreement and we shall not be relieved from our liability by reason of anysuch variation, or extension being granted to the said A & H Centre or for any forbearance, act or

omission on the part of the Bureau or any indulgence by the Bureau to the said A & H Centre or by anysuch matter or thing whatsoever which under law relating to sureties would, but for this provision, haveeffect of so relieving us.

6. This guarantee will not be discharged due to the change in the constitution of the Bank or theLicensee.

7. We _______________________________ lastly undertake not to revoke this guarantee duringand even after its currency except with the previous consent of the Bureau in writing.

Dated: this ______________ day of ____________ of 20____ for __________________________Bank.

Place: Signature:

Name:

For & on behalf of:

Seal:

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