NDCC/IRS /24-25 /02 Mar’25, 2025

All Dealers
Sub: - Inventory Relief Scheme (IRS- FY 25 & 26)

Dear Channel Partners,

TML continuously introduces new vehicle models or refreshes the existing range
with an intent to remain a dominant CV player and to address changing customer
needs. This leads to increase in variety of parts at channel end which is also
necessary to support the maintenance requirement of new models launched by
Tata Motors. Our NPI policies, TOPS and sales return policies largely takes care of
unwanted buildup of parts inventory, however, the situations of buildup of slow
moving / nonmoving parts at channel cannot be completely avoided.
IRS scheme offers another opportunity to channel to renew their spares inventory
by adding more moving parts into TOPS for better availability & serviceability.

As announced in the revised annual marketing policy dated 25.03.2025, we are

pleased to announce the Revised Inventory Relief Scheme for FY 25 & 26. This IRS
Scheme is valid from 1st Apr’24 to 31st Dec’25. The scheme eligibility and claim
procedure is attached with the covering letter.

IRS- FY 25 & 26
(I)The scheme is applicable as announced in the revised Annual Marketing Policy
for FY 24-25 to the tune of declared percentage values in policy and gives
opportunity to scrap maximum 8% & 4%( basis date of COB) of Apr’24-Mar’25
( FY25) offtake
(II)Payouts would be at 50% value of scraped material at NTA or maximum
eligibility, whichever is lower.

We are confident that this scheme and related process will help in optimizing the
spares Inventory and working capital which should improve the overall service
levels as well as financial health of the Channel Partners.

With warm regards,

Vikram Agrawal
(Senior General Manager- Spares & NVB, TMCV)

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 IRS FY25 & 26
Eligibility:
a) Parts not consumed for more than 2 years from the Invoice date, will qualify for IRS.
b) The scheme is applicable only for TGP (PG1-PG5) purchased from Tata Motors. Parts purchased
from any other source will not be considered under this Proposal.
c) Each part in the list offered for scrapping shall be supported with valid TML Invoice.
d) All details must be captured in Excel and duly verified by respective APM and Network team (NDCC).

Non - Eligible Parts Categories:

a) Scrap & Unusable parts: Parts which appear to be deformed or damaged, rusted, or damaged due
to flood, fire, rain etc. won’t be considered for IRS.
b) Warranty failed parts: Parts which have been claimed or exchanged under warranty and /or under
Spare Parts Claim (parts discrepancy claims) will not be entitled for IRS Scheme.
c) Aggregates offered by Tata Motors on Free of Cost (FOC) parts or Float Aggregates or Prolife.
d) Aggregates which have been dismantled and/or partially incomplete and/or cannot be used are not
covered under this proposal.
e) Parts falling under PG6 and are consumables viz. Grease, Coolant, Brake Fluid, Steering Fluid, DEF
and lubricants will not be eligible under this scheme. Parts with self-life like rubber parts are also
excluded.
f) Parts with ageing less than 2 year will not qualify for IRS Scheme.
g) Parts directly supplied from TML plants (paid as well as FOC) shall not be considered.
h) Parts purchased under inventory clearance offer at a special price would not be considered.

Process to Claim IRS:

a) The list of proposed parts should be submitted to the respective Area Parts Manager
(APM)/Customer Support Manager (CSM) who would certify that parts required for running vehicles
are not scrapped and have been purchased from TML. APM to forward the final list to TML NDCC.
b) The stock certified as Non-moving, needs to be properly kept aside with proper tagging.
c) An external agency will be deputed to conduct 100% stock audits and after then count all the Dead
stock physically and accordingly verify it with the list provided to them by TML. Parts not matching
with the list will be removed. Parts as per available physical quantity will be considered under IRS.
d) Stock Audit of all Parts and Scrapping will happen in the presence of APM/ CSM.
e) The agency will check the stock in the system as well before scrapping. It need to tally with the
physical stock. In case of any discrepancy, the lower quantity (physical or system whichever is lower)
will be considered under the IRS.
f) Cost of scrapping activity would be 100% with respective dealer/distributor. TML would not share
any cost.
g) After scrapping or gas cutting of the Dead Stock, the system stock should be corrected accordingly
with the outward of the Dead stock. The same need to be certified by the APM and the external agency
with Screen Shot proof at summary level.
h) Accepted Parts List (APL) should be scraped with the help of TML appointed agency, within 30 days
from the date of acceptance by TML and issue a certificate stating parts have been scrapped and gas
cut under the supervision of the APM/CSM Refer Annexure B.
i) The duly verified claims by APM /CSM should be submitted to Parts head office with Annexure A
and Channel Authorized person signatory and firm seal. Page2of5
General Terms and Conditions:

1. This Proposal is given at the sole discretion of TATA Motors. By submitting a list of parts for
acceptance, the Channel hereby irrevocably accepts all the terms and conditions of this IRS
Policy FY 25 & 26.
2. IRS FY25& 26 scrap and credit eligibility would be calculated basis Apr’24-Mar’25(FY25) annual
offtake from Tata Motors. However, policy execution would happen in FY26 (latest by 31 st
Dec’25).
3. All calculations will be done on NTA value only as per the original TML Invoice.
4. Channel Partner must ensure 100% adherence to the prescribed format only. Any deviation
will call for rejection of the claim.
5. In case the declared stock is found to be tampered, the whole case would be rejected.
6. Any unethical practice followed to get the claim settled or any wrong data will call of rejection
of claims and will lead to strict action under TCOC.
7. TML will also run a check report for the CRM stocks and sale. If not found in line, such cases
will be removed.
8. TML reserves the right to change or modify any or all terms and conditions of this proposed
scheme, including total withdrawal of the scheme.
9. Dealer/distributor need to declare the old inventory details as per Annexure A
10. Channel partners need to go for 100% stock audits through TML recommended third party
agency and update CRM accordingly at the time/before IRS audit.

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 Annexure A
(To be given on the CPs letter head)
To,
Senior General Manager Spares & NVB,TMCV
TATA Motors Ltd.
Gyan Sadhana College Service Road
Teen Hath Naka, Thane (West).
Thane - 400 604

Sub: Request for liquidation of obsolete stock

As a Channel Partner of TML, we have been buying and stocking genuine parts
from Tata Motors Ltd. For the After-Sales support of the Tata Commercial Vehicles
in our workshop/ warehouse (address)

Over the period, the stocks have got obsolete due to various reasons like
modifications, supersession, or due to dwindling population of certain models etc.
This has resulted in holding of non-moving or dead stock, blocking our working
capital in unused assets.

We hereby confirm that the old parts have been identified and kept ready for gas
cutting. We agree and confirm that the stock value will be written off from the
books of accounts, supported by an Auditors certificate.

We are enclosing herewith the data on part number, part description, stock
quantity, Invoice Value, Invoice number and Invoice date in requisite format. The
list is duly verified by your Area Parts Manager /Customer Care Manager
Mr. _

M/s ___________________________ Confirms and agrees to the terms &

Conditions of IRS Policy and Marketing Policy. This confirmation letter can be
treated as agreement to IRS 25&26 &Revised Annual Marketing policy.

We would be thankful for your one time support.

PART NO OF NON MOVING PART CURRENT INVOICE INVOICE
SL NO PART >2 YEARS IN STOCK DESCRIPTION STOCK QTY TML INVOICE NO DATE VALUE

Authorized Signatory Checked / Verified

(Signature & seal) (APM/Customer Care Manager)

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 Annexure B : Inventory Relief Scheme FY 25&26: Declaration and Scrap Certificate Format
(On Channel Partner Letter Head)
To,
Head -Network and Credit Control TMCV Parts
Tata Motors Ltd
Gyan Sadhana College Service Road
Teen Hath Naka, Thane (West) – 400604

Dear Sir,
We submit herewith the spare parts liquidation Certificate as detailed below
1. Location : __________________________________
2. Period of Liquidation : From : _____________ To : _____________
3. No of Line items
>2 year non & Slow moving : ___________ (number of lines)
4. Value of items at Purchase : ___________ (value in ₹Lakhs)
Price
5. No of Items Scrapped : ___________ (number of lines)
6. Value of Scraped item at
Purchase Price : ___________ (value in ₹Lakhs)
I hereby confirm, agree and declare that:
a) We agree that maximum 50% of NTA value of original offtake Invoice, scrap value would be
eligible for reimbursement.
b) We will not place Manual orders for items on TOPS & inadvertently generate non-moving /
slow moving stock in future.
c) Items as declared under above point no 5 has been scrapped and gas cut and are not in a
saleable condition.
d) Stock correction has been done in CRM system and from our books of accounts in presence
of third party auditor within 24 hours of scrapping of parts. This correction has been approved
by our accounts department and management. Out total inventory alongwith SIT is
₹________(Lakhs)
e) Oldest non-moving stock has been liquidated and latest non-moving stock is of the year
______
f) Material maintained in stock prior to year ________ is bare minimum maintained in
anticipation of old model vehicle support and will not be reported as non-moving stock for
inventory value consideration
g) We also confirm that the damage/ rusted / non saleable stock value is ₹ ______ and we will
scrap this material by period ______. Incase these category of items is not scrapped for some
reason, we will not report this material as non-moving inventory in future
h) For items having No TML Invoice / TGP packing torn / MRP Sticker torn, stock value is ₹______,
will also not be reported as non-moving inventory in future

Yours sincerely,

Dealer Owner (Sign & name)

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