Hi Dev,
Thank you for the response. Our client is quality conscious and any deviation in quality standards by the vendor will be dealt severely. In this case, as per their penalty clause in terms & conditions with subcontracting vendor, the vendor should absorb all the cost including finished product price, component price & service cost. I am aware that the component price will be added to FG product price. But customer insists to include component price separately since their T&C and penalty clauses are written in that way.
Regards,
Sat