MYCLOTH INDIA ARMY : PRODUCT CONTRIBUTION SCHEDULE & FACTOR POLICY

 

MYCLOTH INDIA ARMY LONG-TERM SOCIAL MEDIA ACCOUNT OWNER & BRAND PARTNER PROGRAM

OFFICIAL PRODUCT CONTRIBUTION SCHEDULE & PRODUCT CONTRIBUTION FACTOR POLICY


Program: MYCLOTH INDIA ARMY — LONG-TERM SOCIAL MEDIA ACCOUNT OWNER & BRAND PARTNER PROGRAM

Commercial Model: 10% LOYALTY ANNUAL NET PROFIT SHARE

Brand: MYCLOTH INDIA

Official Website: MyCloth.in

Document Type: Official Product Contribution Schedule & Product Contribution Factor Policy

Document Version: 1.0

Effective Date: 18 September 2026

Last Updated: 18 September 2026

Policy Status: Official Program Policy

IMPORTANT POLICY NOTICE

This Official Product Contribution Schedule & Product Contribution Factor Policy (“PCF Policy”) establishes the methodology through which MyCloth India determines and applies the Product Contribution Factor (“PCF”) for eligible products, SKUs, product categories or product groups under:

MYCLOTH INDIA ARMY — LONG-TERM SOCIAL MEDIA ACCOUNT OWNER & BRAND PARTNER PROGRAM

The Program's current commercial model is:

10% LOYALTY ANNUAL NET PROFIT SHARE

The 10% is one collective annual Partner Pool.

It is not 10% for every participant.

This PCF Policy does not itself create an additional percentage payable to any participant.

Instead, PCF is one component used in determining an eligible participant's Attributable Contribution Score (“ACS”).

The general financial structure remains:

ADNP → APP → QNR → PCF → ACS → TACS → INDIVIDUAL PARTNER SHARE

The PCF Policy must be read together with:

    1. the MYCLOTH INDIA ARMY — Master Program Terms & Conditions;

    2. the Social Media Account Owner & Brand Partnership Agreement — Annual Loyalty Net Profit Share;

    3. the Official Annual Loyalty Net Profit Share Calculation & Accounting Policy;

    4. the Attribution & Tracking Policy;

    5. the Fraud Prevention & Disqualification Policy;

    6. the Tax / Withholding & Payment Policy;

    7. the Privacy Policy;

    8. applicable product records;

    9. applicable accounting records; and

    10. any other expressly incorporated Program schedule.

Nothing in this Policy overrides mandatory applicable law or any right, remedy, statutory protection or liability that cannot lawfully be excluded, restricted or waived.

PART 1 — PURPOSE OF THIS POLICY

1. PURPOSE

The purpose of this Policy is to establish a consistent and documented methodology for determining:

    1. which product/SKU is eligible for a PCF;

    2. the PCF applicable to a product;

    3. the effective date of a PCF;

    4. the product economics relevant to the PCF;

    5. how QNR interacts with PCF;

    6. how PCF contributes to ACS;

    7. how product-level changes are handled;

    8. how new products are added;

    9. how discontinued products are handled;

    10. how discounts affect the calculation;

    11. how returns/refunds/chargebacks affect the calculation;

    12. how product costs may be considered;

    13. how direct/variable costs may be considered;

    14. how PCFs are reviewed;

    15. how PCF changes are documented;

    16. how PCF information is maintained for auditability; and

    17. how the PCF methodology interacts with the Annual Partner Pool.

PART 2 — CORE PRINCIPLE

2. PCF IS A CONTRIBUTION MEASUREMENT FACTOR

The Product Contribution Factor is intended to measure the relative contribution of a qualifying product or product group for purposes of the participant contribution calculation.

PCF is not:

    • a commission rate;

    • a participant payment percentage;

    • a guaranteed return;

    • a product profit margin automatically payable to a participant;

    • a share of Company ownership;

    • an equity interest;

    • a royalty;

    • a fixed payout;

    • or a guarantee of participant income.

PCF is a calculation factor.

3. SELLING PRICE DOES NOT EQUAL CONTRIBUTION

A product's selling price does not automatically represent its contribution to the Company's business.

A product selling for ₹2,000 may have a materially different contribution profile from another product selling for ₹2,000.

Likewise, a product selling for ₹1,000 may have a different contribution profile from another product selling for ₹1,000.

The PCF methodology may therefore consider relevant product economics.

4. NO AUTOMATIC HIGHER PCF FOR HIGHER PRICE

A higher selling price shall not automatically result in a proportionately higher PCF.

The Company may consider the economic characteristics of each product.

PART 3 — DEFINITIONS

5. PRODUCT

“Product” means a product sold by MyCloth India and included within the applicable Program product records.

6. SKU

“SKU” means the applicable Stock Keeping Unit or other unique product identifier used by the Company.

7. PRODUCT CATEGORY

“Product Category” means an approved category used by MyCloth India for grouping products with sufficiently similar commercial characteristics.

Examples may include, where applicable:

  • T-Shirts;

  • Oversized T-Shirts;

  • Hoodies;

  • Sweatshirts;

  • Women's Clothing;

  • Men's Clothing;

  • Premium products;

  • Limited drops;

  • or another Company-defined category.

The examples above do not automatically establish a PCF.

8. PRODUCT CONTRIBUTION FACTOR

“Product Contribution Factor” or “PCF” means the approved numerical factor assigned to a product, SKU, category or product group for the purpose of calculating attributable contribution.

9. QUALIFYING NET REVENUE

“QNR” means the revenue attributable to a participant that remains eligible after application of the applicable qualification rules and exclusions.

10. ATTRIBUTABLE CONTRIBUTION SCORE

The general participant calculation is:

ACSᵢ = Σ(QNR × PCF)

For each eligible transaction:

Contribution = QNR × Applicable PCF

11. TOTAL ATTRIBUTABLE CONTRIBUTION SCORE

“TACS” means:

TACS = Σ ACS of all eligible participants

Only eligible and verified contribution is included.

PART 4 — PRODUCT CONTRIBUTION SCHEDULE

12. OFFICIAL PRODUCT CONTRIBUTION RECORD

For each product or product group included in the Program, the Company may maintain a Product Contribution Schedule containing:

Field Required Information
Product ID Unique Company product identifier
SKU Applicable SKU
Product Name Official product name
Category Approved product category
Variant Size/colour/other variant where relevant
Listed Price Published/listed price
Actual Selling Price Actual transaction price
Discount Applicable discount
QNR Basis Applicable qualifying-revenue methodology
Product Cost Applicable product cost
Direct Costs Approved direct/variable costs
Contribution Amount Applicable contribution measurement
PCF Product Contribution Factor
Effective Date Date PCF becomes applicable
End Date Where applicable
Status Active / Suspended / Discontinued
Approval Reference Internal approval/reference
Revision Schedule revision number

PART 5 — PCF DETERMINATION PRINCIPLES

13. OBJECTIVE FACTORS

The Company may consider objectively measurable factors including:

    1. product cost;

    2. manufacturing cost;

    3. procurement cost;

    4. raw material cost;

    5. packaging cost;

    6. logistics cost where appropriately classified;

    7. product category;

    8. product economics;

    9. actual selling price;

    10. discounts;

    11. product mix;

    12. quantity;

    13. applicable direct costs;

    14. variable costs;

    15. expected or historical return profile;

    16. product lifecycle;

    17. promotional pricing;

    18. limited-drop characteristics;

    19. contribution margin characteristics; and

    20. other objectively measurable commercial factors.

14. NO UNDISCLOSED SUBJECTIVE FACTOR

The Company shall not insert an undisclosed subjective factor merely to increase or decrease a participant's contribution score.

A PCF should have a documented commercial or accounting basis.

15. CONSISTENCY

Where products have materially similar economic characteristics, the Company should apply a reasonably consistent methodology.

Where products differ materially, different PCFs may be appropriate.

PART 6 — PRODUCT ECONOMIC DATA

16. PRODUCT COST

The Company may consider the applicable cost of acquiring, manufacturing or otherwise supplying the product.

Depending on the Company's accounting methodology, relevant cost may include:

  • manufacturing cost;

  • procurement cost;

  • raw materials;

  • production;

  • packaging;

  • product-specific processing;

  • other directly attributable product costs; and

  • approved variable costs.

17. DIRECT AND VARIABLE COSTS

The Company may consider direct or variable costs that are appropriately attributable to the product.

The applicable Product Contribution Schedule shall identify the relevant methodology.

18. COMPANY-LEVEL EXPENSES

Company-level expenses shall not automatically be assigned to an individual product merely because they are Company expenses.

Such expenses may instead be reflected through the ADNP calculation where appropriately recognised.

Examples may include:

  • general administration;

  • general management;

  • broad corporate overhead;

  • general legal expenses;

  • general accounting;

  • general technology;

  • general office expenses;

  • other Company-level expenses.

The same expense should not be arbitrarily deducted twice.

PART 7 — SEPARATION OF PCF AND ADNP

19. TWO DISTINCT CALCULATION STAGES

The Program uses two distinct financial stages.

Participant contribution stage:

Participant Attribution

↓

QNR

↓

PCF

↓

ACS

↓

TACS

Company financial stage:

Company Accounting Records

↓

ADNP

↓

APP

The two systems interact through the final allocation formula.

20. NO DOUBLE COUNTING

A cost or exclusion already applied under the approved QNR methodology should not automatically be deducted again through PCF unless the written methodology expressly provides for that treatment.

Likewise, a Company-level expense already reflected in ADNP should not automatically be deducted again from a participant's attributable transaction.

PART 8 — QNR BEFORE PCF

21. QNR IS DETERMINED FIRST

The normal calculation order is:

STEP 1 — ATTRIBUTE ORDER
↓
STEP 2 — VERIFY ORDER
↓
STEP 3 — DETERMINE QNR
↓
STEP 4 — APPLY PCF
↓
STEP 5 — CALCULATE ACS

PCF should not be applied to an order that has already been determined to be non-qualifying.

22. EXCLUDED TRANSACTIONS

The following may be excluded from QNR under the applicable rules:

  • cancelled orders;

  • returned orders;

  • refunded orders;

  • chargebacks;

  • fraudulent transactions;

  • artificial transactions;

  • participant-funded transactions;

  • participant-reimbursed transactions;

  • prohibited transactions;

  • invalid attribution;

  • invalid discount manipulation;

  • unauthorised transactions;

  • applicable taxes where required;

  • applicable discounts where required; and

  • other written exclusions.

PART 9 — STANDARD PCF RECORD

23. OFFICIAL PCF REGISTER

The Company should maintain an internal PCF Register.

A model structure is:

PCF ID SKU Product Category PCF Effective Date End Date Status
PCF-001 [●] [●] [●] [●] [●] [●] Active
PCF-002 [●] [●] [●] [●] [●] [●] Active
PCF-003 [●] [●] [●] [●] [●] [●] Active

The actual PCF values shall be established through the Company's approved product analysis and shall not be inferred from this Policy alone.

PART 10 — PCF VALUE

24. PCF VALUE IS A CONTROLLED DATA FIELD

The PCF assigned to a product shall be treated as controlled Program data.

The Company should maintain:

  • PCF value;

  • calculation basis;

  • effective date;

  • approval record;

  • revision history;

  • applicable SKU;

  • applicable category;

  • supporting product economics; and

  • reason for change.

25. NO AUTOMATIC PCF ASSUMPTION

If a product has not yet received an approved PCF, the Company shall not invent a PCF merely to complete a participant calculation.

The Company should determine the applicable methodology before including the product in the relevant final calculation.

Where necessary, the Company may temporarily classify the transaction as:

Pending PCF Review

until an approved determination is made.

PART 11 — NEW PRODUCTS

26. NEW PRODUCT ONBOARDING

Before a new product is included in a completed Program calculation, the Company may establish:

    1. Product ID;

    2. SKU;

    3. category;

    4. product cost;

    5. applicable direct/variable costs;

    6. pricing information;

    7. QNR treatment;

    8. PCF;

    9. effective date; and

    10. approval reference.

27. NEW PRODUCT EFFECTIVE DATE

A PCF for a new product shall have a documented effective date.

The Company should not retroactively apply a new PCF to completed transactions merely because the product methodology was later changed, except where a lawful correction is required because of an error or another documented basis.

PART 12 — EXISTING PRODUCTS

28. EXISTING PRODUCT REVIEW

The Company may periodically review existing PCFs.

A review may occur because of:

  • material cost changes;

  • supplier changes;

  • manufacturing changes;

  • pricing changes;

  • product redesign;

  • discount changes;

  • product category changes;

  • material return-rate changes;

  • business strategy;

  • tax changes;

  • logistics changes;

  • product lifecycle; or

  • other legitimate commercial reasons.

PART 13 — PCF CHANGES

29. FUTURE PCF CHANGES

The Company may change a PCF for:

  • future orders;

  • future transactions;

  • future calculation periods; or

  • future effective dates.

30. NO ARBITRARY RETROACTIVE CHANGE

A new PCF shall not automatically rewrite completed and finalised transactions.

A retrospective change must have a documented basis such as:

  • demonstrable data error;

  • incorrect product classification;

  • accounting correction;

  • fraud;

  • incorrect original PCF;

  • legal requirement; or

  • another objectively identifiable basis.

31. CHANGE RECORD

Each material PCF change should record:

    1. Old PCF: [●]
    2. New PCF: [●]
    3. Effective Date: [●]
    4. Reason: [●]
    5. Approval Reference: [●]
    6. Affected SKU(s): [●]
    7. Affected Calculation Period: [●]

PART 14 — DISCOUNTS

32. DISCOUNT TREATMENT

Discounts may affect QNR and may therefore affect ACS.

The exact treatment shall follow the applicable QNR methodology.

33. PROMOTIONAL DISCOUNTS

Where MyCloth India conducts:

  • seasonal discounts;

  • promotional discounts;

  • coupon campaigns;

  • flash sales;

  • clearance pricing;

  • creator-specific discounts;

  • bundle offers; or

  • other promotions,

the applicable QNR methodology shall determine the qualifying amount.

34. INVALID DISCOUNT MANIPULATION

A discount shall not be treated as valid merely because a code was technically accepted by the online store.

Transactions involving:

  • unauthorised discount manipulation;

  • abuse;

  • technical exploitation;

  • participant-funded discount schemes;

  • fraudulent discount activity; or

  • other prohibited conduct

may be excluded.

PART 15 — QUANTITY

35. MULTIPLE PRODUCTS IN ONE ORDER

Where one order contains multiple eligible products, each applicable product/SKU may be separately evaluated.

Example:

Order:

  • SKU A — Quantity 2

  • SKU B — Quantity 1

  • SKU C — Quantity 3

The calculation may separately determine:

    1. QNR A × PCF A
    2. QNR B × PCF B
    3. QNR C × PCF C

to determine the order's contribution.

36. PRODUCT MIX

Product mix may therefore affect a participant's ACS.

Two participants generating the same gross order value may not necessarily generate the same ACS if their qualifying product mix is different.

PART 16 — PRODUCT VARIANTS

37. VARIANTS

Where size, colour, material, edition, design or other variant materially affects product economics, the Company may:

  1. assign one PCF to the entire product family; or

  2. assign different PCFs to individual SKUs/variants.

The selected method should be documented.

PART 17 — BUNDLES AND COMBOS

38. PRODUCT BUNDLES

Where MyCloth India sells products as:

  • bundles;

  • combos;

  • multi-product packs;

  • sets; or

  • promotional packages,

the Company may establish a specific bundle methodology.

39. BUNDLE ALLOCATION

A bundle may be assigned:

  • a dedicated bundle SKU and PCF; or

  • an objectively determined allocation across component products.

The method should be documented before final calculation.

PART 18 — FREE PRODUCTS AND PROMOTIONAL PRODUCTS

40. FREE OR ZERO-PRICE ITEMS

Products supplied at ₹0 or otherwise provided without qualifying customer consideration may be excluded from QNR unless the applicable written methodology expressly provides otherwise.

41. FREE-GIFT PRODUCTS

Where a customer receives a free promotional product with a qualifying purchase, the treatment of that item shall follow the applicable QNR and product methodology.

A free item shall not automatically create additional contribution merely because it appears as a product line in an order.

PART 19 — RETURN AND REFUND TREATMENT

42. RETURNED PRODUCTS

If a product sale is later returned and the applicable QNR methodology requires exclusion, the associated QNR shall be removed or adjusted.

The associated ACS shall be recalculated where necessary.

43. PARTIAL RETURNS

Where only part of an order is returned, only the affected product/quantity may be adjusted where the underlying transaction records permit such treatment.

44. REFUNDS

Where a product is refunded, the QNR treatment shall follow the applicable refund rules.

45. CHARGEBACKS

A chargeback may cause the relevant transaction to become non-qualifying.

The associated contribution may therefore be reversed or adjusted.

PART 20 — FRAUD AND ARTIFICIAL ACTIVITY

46. FRAUDULENT PRODUCT TRANSACTIONS

A fraudulent transaction shall not be included merely because:

  • the order was technically placed;

  • payment initially appeared successful;

  • the affiliate system recorded attribution; or

  • the transaction temporarily appeared in sales data.

47. ARTIFICIAL PERFORMANCE

Transactions designed primarily to inflate Program performance may be excluded.

Examples include:

  • participant-funded purchases;

  • participant reimbursement;

  • fake customers;

  • coordinated artificial purchases;

  • repeated circular transactions;

  • manipulated orders;

  • fraudulent payment methods;

  • attribution manipulation;

  • fake accounts; and

  • other prohibited conduct.

PART 21 — SHOPIFY COLLABS AND PCF

48. SHOPIFY COLLABS ROLE

Shopify Collabs may provide order-attribution information used as an input to the Program's calculation.

It does not determine PCF.

It does not determine ADNP.

It does not determine APP.

It does not determine the participant's final contractual allocation.

49. DATA RECONCILIATION

Where Shopify Collabs data differs from MyCloth India's internal records, the Company may investigate and reconcile the discrepancy.

Relevant records may include:

  • Shopify order data;

  • payment records;

  • return/refund records;

  • discount records;

  • customer/order records;

  • internal attribution records;

  • product/SKU records; and

  • fraud/compliance records.

PART 22 — ATTRIBUTION AND PCF

50. PCF DOES NOT CREATE ATTRIBUTION

A product's PCF does not establish that an order belongs to a participant.

Attribution must be established separately.

The correct order is:

Attribution First

then:

Qualification

then:

QNR

then:

PCF

then:

ACS

PART 23 — CONTRIBUTION CALCULATION

51. STANDARD FORMULA

For an eligible transaction:

Transaction Contribution = QNR × PCF

For participant i:

ACSᵢ = Σ(QNR × PCF)

52. EXAMPLE

Assume Participant A has:

Product QNR PCF Contribution
Product A ₹10,000 1.00 ₹10,000
Product B ₹5,000 0.80 ₹4,000
Product C ₹8,000 0.50 ₹4,000

 

Participant A's ACS:

₹10,000 + ₹4,000 + ₹4,000

ACS = ₹18,000

This example is illustrative only.

It does not establish actual MyCloth India PCF values.

PART 24 — COMPARATIVE EXAMPLE

53. SAME SALES VALUE, DIFFERENT PRODUCT MIX

Participant A:

₹1,00,000 QNR entirely from Product Group A.

PCF = 1.00

ACS = ₹1,00,000

Participant B:

₹1,00,000 QNR entirely from Product Group B.

PCF = 0.60

ACS = ₹60,000

Both generated: ₹1,00,000 QNR

But their contribution scores differ because the applicable product contribution differs.

This illustrates why:

SALES VALUE ≠ CONTRIBUTION SCORE

PART 25 — ADNP AND PCF EXAMPLE

54. SEPARATE COMPANY PROFIT AND PRODUCT CONTRIBUTION

Assume:

ADNP = ₹1,00,00,000

Therefore:

APP = ₹10,00,000

Suppose:

Participant A ACS = 60,000

Participant B ACS = 40,000

TACS = 1,00,000

Then:

Participant A:

= 60% × ₹10,00,000

= ₹6,00,000

Participant B:

= 40% × ₹10,00,000

= ₹4,00,000

The product contribution score determines the allocation percentage.

The Company-wide ADNP determines the size of the collective pool.

PART 26 — PCF AND COMPANY PROFIT ARE NOT THE SAME THING

55. IMPORTANT DISTINCTION

PCF is not the Company's annual profit.

PCF does not replace ADNP.

PCF does not determine the Partner Pool.

PCF only contributes to the participant's ACS.

The financial structure is:

COMPANY FINANCIAL PERFORMANCE

ADNP

↓

APP

and:

PARTICIPANT COMMERCIAL CONTRIBUTION

QNR

↓

PCF

↓

ACS

The final allocation combines these two components.

PART 27 — PRODUCT COST CHANGES

56. COST INCREASE

If a product's cost materially increases, the Company may review its PCF.

Potential reasons may include:

  • supplier price increase;

  • raw material increase;

  • manufacturing cost increase;

  • packaging increase;

  • logistics change;

  • procurement change;

  • other material cost increase.

57. COST DECREASE

Likewise, a material reduction in relevant product costs may justify review of the applicable PCF.

PART 28 — PRODUCT PRICING CHANGES

58. PRICE CHANGE

A change in listed or actual selling price does not automatically require an identical proportional change in PCF.

The Company shall assess the applicable product economics.

59. DISCOUNTED SELLING PRICE

The applicable QNR methodology shall determine the qualifying revenue resulting from a discounted sale.

The PCF shall then be applied according to the applicable Product Contribution Schedule.

PART 29 — DISCONTINUED PRODUCTS

60. DISCONTINUED PRODUCT

If a product is discontinued:

  • its PCF may remain applicable to qualifying historical transactions;

  • its status may be changed to “Discontinued”;

  • its end date may be recorded; and

  • it may be removed from future transactions.

61. HISTORICAL PCF

A discontinued product's historical PCF shall not automatically disappear from the records.

Historical calculations should remain traceable.

PART 30 — PRODUCT RECLASSIFICATION

62. CATEGORY CHANGE

If a product is moved from one category to another, the Company should record:

  • previous category;

  • new category;

  • reason;

  • effective date;

  • previous PCF;

  • new PCF; and

  • affected transactions/periods.

PART 31 — PCF APPROVAL GOVERNANCE

63. APPROVAL

A PCF should be approved by an authorised Company representative or authorised financial/operational process before becoming an official Program calculation input.

64. SEGREGATION OF RESPONSIBILITIES

Where reasonably practicable, the Company may separate:

    1. product-data preparation;

    2. cost analysis;

    3. PCF proposal;

    4. approval;

    5. implementation;

    6. calculation; and

    7. final reconciliation.

This is intended to reduce accidental or unauthorised manipulation.

PART 32 — PCF REVISION CONTROL

65. REVISION NUMBER

Each Product Contribution Schedule revision may have a unique revision number.

Example:

PCF Schedule v1.0

PCF Schedule v1.1

PCF Schedule v2.0

66. CHANGE LOG

A change log may record:

Revision Date Change Affected Products Effective Date Approved By
1.0 [●] Initial Schedule [●] [●] [●]
1.1 [●] PCF Revision [●] [●] [●]
2.0 [●] Methodology Revision [●] [●] [●]

PART 33 — EFFECTIVE DATE CONTROL

67. TRANSACTION DATE

Unless an applicable written schedule provides otherwise, the PCF applicable to a qualifying transaction shall generally be the PCF effective for that transaction at the relevant time.

68. ORDER DATE VERSUS PAYMENT DATE

The Company may define whether PCF is determined by:

  • order date;

  • fulfilment date;

  • payment date;

  • dispatch date; or

  • another objectively defined date.

The applicable method should be stated in the active Product Contribution Schedule.

PART 34 — CANCELLATION

69. CANCELLED ORDER

A cancelled order shall generally not produce QNR where the applicable qualification methodology excludes cancelled orders.

Therefore:

No QNR → No PCF Contribution → No ACS from that transaction

subject to applicable written rules.

PART 35 — REFUND AFTER CALCULATION

70. LATE REFUND

If a product was initially included and later refunded:

    1. QNR may be reversed;

    2. ACS may be recalculated;

    3. TACS may be recalculated where necessary; and

    4. the participant's allocation may be adjusted under the Post-Period Adjustment mechanism.

PART 36 — PARTIAL REFUND

71. PARTIAL REFUND

Where only part of a transaction is refunded, the Company may adjust only the affected qualifying amount where the records support that calculation.

PART 37 — MULTIPLE PARTICIPANTS AND SAME CUSTOMER

72. ATTRIBUTION

A customer transaction should be attributed according to the applicable Attribution & Tracking Policy.

PCF does not determine which participant receives attribution.

73. DUPLICATE ATTRIBUTION

The same qualifying transaction shall not ordinarily generate duplicate participant contribution unless the applicable written attribution methodology expressly provides a valid allocation mechanism.

PART 38 — DATA QUALITY

74. PRODUCT DATA ACCURACY

The Company should seek to maintain accurate:

  • SKU;

  • product name;

  • category;

  • price;

  • cost;

  • PCF;

  • effective date; and

  • product status.

75. DATA ERROR

If a product record contains a demonstrable error, the Company may correct it.

A correction should record:

  • what was incorrect;

  • what is corrected;

  • reason;

  • effective date;

  • affected transactions; and

  • approval/reference.

PART 39 — AUDIT TRAIL

76. MINIMUM PRODUCT AUDIT TRAIL

The Product Contribution record should be capable of showing:

→ SKU

→ Product

→ Category

→ Product Cost

→ Direct/Variable Costs

→ Selling Price

→ QNR

→ PCF

→ Contribution

→ ACS

→ TACS

→ Participant Allocation

PART 40 — FOUR-LEDGER RECONCILIATION

77. SALES LEDGER

The Sales Ledger records:

  • order;

  • SKU;

  • quantity;

  • selling value;

  • participant attribution; and

  • order status.

78. QUALIFICATION LEDGER

The Qualification Ledger records:

  • qualifying status;

  • return;

  • refund;

  • cancellation;

  • chargeback;

  • fraud;

  • exclusion reason; and

  • other qualification information.

79. PROFIT LEDGER

The Profit Ledger determines:

ADNP → APP

80. PARTNER DISTRIBUTION LEDGER

The Partner Distribution Ledger determines:

APP → Individual Participant Allocations

PART 41 — NO SECRET PRODUCT FACTOR

81. TRANSPARENCY PRINCIPLE

The Company should maintain sufficient internal documentation to explain why a PCF was assigned.

The Company may protect confidential commercial information, supplier pricing and sensitive internal information.

However, confidentiality shall not be used as a basis for inventing arbitrary participant-specific PCFs.

PART 42 — PARTICIPANT INFORMATION

82. PARTICIPANT'S OWN CALCULATION

Subject to confidentiality and commercial sensitivity, the Company may provide a participant with relevant information concerning their own:

  • qualifying transactions;

  • QNR;

  • applicable PCF;

  • ACS;

  • TACS;

  • allocation percentage; and

  • calculated share.

83. OTHER PRODUCT INFORMATION

The participant does not automatically have a right to receive:

  • confidential supplier contracts;

  • confidential product costs;

  • confidential Company margins;

  • proprietary pricing strategy;

  • another participant's data;

  • commercially sensitive information; or

  • other protected information.

PART 43 — MANAGEMENT DISCRETION

84. PERMITTED DISCRETION

The Company may determine product methodology based upon legitimate commercial factors.

85. LIMITATION ON DISCRETION

Management discretion shall operate:

WITHIN THE WRITTEN PCF METHODOLOGY

and not:

IN PLACE OF THE WRITTEN PCF METHODOLOGY.

A PCF should not be changed merely to favour or disadvantage an individual participant.

PART 44 — NO FAVOURITISM

86. PROHIBITED SUBJECTIVE FACTORS

PCF should not be changed merely because of:

  • friendship;

  • family relationship;

  • personal relationship;

  • participant popularity;

  • follower count;

  • participant status;

  • personal influence;

  • management preference; or

  • another subjective preference.

PART 45 — FUTURE BUSINESS CHANGES

87. COMMERCIAL CHANGES

The Company may change product economics because of:

  • suppliers;

  • manufacturers;

  • pricing;

  • inventory;

  • logistics;

  • customer demand;

  • product strategy;

  • product lifecycle;

  • technology;

  • taxes;

  • regulations; or

  • other legitimate business factors.

The PCF methodology may therefore evolve for future periods.

PART 46 — TAX AND STATUTORY CONSIDERATIONS

88. TAX TREATMENT

The PCF itself does not determine the participant's tax liability.

Tax treatment of the final payment shall be determined according to applicable law and the applicable Tax / Withholding & Payment Policy.

89. INDIRECT TAX

Where applicable, GST or other indirect tax considerations may affect the Company's financial records or QNR methodology.

The specific treatment shall follow applicable law and professional advice where required.

PART 47 — EXAMPLE PCF TABLE

90. ILLUSTRATIVE ONLY

The following is an illustration of how a PCF register may appear.

These numbers are examples only and are NOT official MyCloth India PCF values unless separately approved and published.

Product Group Illustrative QNR Illustrative PCF Illustrative ACS
Group A ₹50,000 1.00 ₹50,000
Group B ₹50,000 0.80 ₹40,000
Group C ₹50,000 0.60 ₹30,000
Group D ₹50,000 0.40 ₹20,000

This demonstrates that equal QNR can produce different contribution scores where the approved PCFs differ.

PART 48 — OFFICIAL CALCULATION EXAMPLE

91. COMPLETE ILLUSTRATION

Assume Participant A has three qualifying transactions.

Transaction 1

QNR = ₹20,000

PCF = 1.00

Contribution: ₹20,000 × 1.00 = ₹20,000

Transaction 2

QNR = ₹15,000

PCF = 0.80

Contribution: ₹15,000 × 0.80 = ₹12,000

Transaction 3

QNR = ₹10,000

PCF = 0.50

Contribution: ₹10,000 × 0.50 = ₹5,000

Therefore: ACS = ₹37,000

This ACS is then included in TACS together with the ACS of other eligible participants.

PART 49 — FULL PROGRAM EXAMPLE

92. COMPANY AND PARTICIPANT CALCULATION

Assume: ADNP = ₹1,00,00,000

Therefore: APP = ₹10,00,000

Participants:

Participant ACS
A ₹50,000
B ₹30,000
C ₹20,000
TACS ₹1,00,000

 

Allocation:

Participant A

= 50% × ₹10,00,000

= ₹5,00,000

Participant B

= 30% × ₹10,00,000

= ₹3,00,000

Participant C

= 20% × ₹10,00,000

= ₹2,00,000

Total: ₹10,00,000

The PCF affects ACS.

ADNP determines APP.

The two should not be confused.

PART 50 — PCF REVIEW FREQUENCY

93. PERIODIC REVIEW

The Company may review the PCF Schedule:

  • annually;

  • before a new Program calculation period;

  • after significant product-cost changes;

  • after material pricing changes;

  • after major product changes; or

  • whenever reasonably required.

PART 51 — EMERGENCY PCF REVIEW

94. URGENT REVIEW

The Company may conduct an urgent review where:

  • a material pricing error is discovered;

  • a material cost error is discovered;

  • a product is incorrectly classified;

  • fraud is identified;

  • a technical system creates incorrect product data;

  • a legal requirement changes; or

  • another material issue affects calculation integrity.

PART 52 — PCF FREEZE

95. CALCULATION-PERIOD FREEZE

The Company may establish a PCF freeze date before final annual calculation.

After the freeze, changes should ordinarily be limited to:

  • demonstrable errors;

  • fraud;

  • returns/refunds/chargebacks;

  • accounting corrections;

  • legal requirements; or

  • another documented correction basis.

PART 53 — FINALISATION

96. PCF FINALISATION

Before an annual allocation is finalised, the Company may verify:

    1. active PCFs;

    2. historical PCFs;

    3. effective dates;

    4. SKU mapping;

    5. product costs;

    6. QNR treatment;

    7. returned/refunded products;

    8. chargebacks;

    9. fraud exclusions;

    10. ACS;

    11. TACS;

    12. APP; and

    13. participant allocations.

PART 54 — ERROR CORRECTION

97. PRODUCT DATA ERROR

If the Company discovers that an incorrect PCF was used because of a demonstrable data or administrative error, the Company may correct the affected calculation.

The correction shall identify:

  • affected product;

  • old PCF;

  • correct PCF;

  • affected period;

  • affected transactions;

  • calculation impact; and

  • correction date.

PART 55 — NO RETROACTIVE MANIPULATION

98. PROTECTION OF COMPLETED CALCULATIONS

The Company shall not use a future PCF change simply as a mechanism to retroactively reduce an already completed participant calculation.

A retrospective adjustment requires an identifiable basis.

PART 56 — RELATIONSHIP WITH MASTER TERMS

99. MASTER TERMS

The Master Program Terms establish the overarching commercial framework.

This PCF Policy provides the detailed product-contribution methodology contemplated by that framework.

The Master Terms establish that PCF may be used in calculating ACS and that product contribution may be documented through a Product Contribution Schedule.

PART 57 — RELATIONSHIP WITH ACCOUNTING POLICY

100. ACCOUNTING POLICY

The Official Annual Loyalty Net Profit Share Calculation & Accounting Policy establishes:

ADNP → APP

and:

QNR → PCF → ACS → TACS → Individual Share

This PCF Policy provides the detailed operational rules for the PCF component.

PART 58 — RELATIONSHIP WITH PARTICIPANT AGREEMENT

101. PARTICIPANT AGREEMENT

The participant-specific Social Media Account Owner & Brand Partnership Agreement establishes the contractual relationship with the individual participant.

This PCF Policy provides the product-contribution methodology incorporated into that relationship where expressly applicable.

PART 59 — ORDER OF PRECEDENCE

102. DOCUMENT PRECEDENCE

If documents conflict, the general order shall be:

    1. mandatory applicable law;

    2. participant-specific definitive agreement;

    3. expressly incorporated participant-specific financial schedule;

    4. expressly incorporated financial/accounting schedule;

    5. this Product Contribution Schedule & PCF Policy;

    6. other applicable Program policies;

    7. Master Program Terms & Conditions;

    8. general promotional or informational material.

A participant-specific provision shall govern only to the extent legally valid and expressly applicable.

PART 60 — DATA SECURITY

103. PRODUCT AND FINANCIAL DATA

Product costs, supplier information, contribution calculations and other commercially sensitive information may be treated as confidential business information.

Access should be restricted according to the Company's internal access controls.

PART 61 — RECORD RETENTION

104. PCF RECORDS

The Company may retain:

  • Product Contribution Schedules;

  • PCF Register;

  • product-cost records;

  • approval records;

  • revision history;

  • effective dates;

  • affected transaction records;

  • correction records;

  • audit records; and

  • related accounting information.

Records shall be retained according to applicable law and the Company's record-retention requirements.

PART 62 — PARTICIPANT DISPUTES

105. PCF CALCULATION QUERY

If a participant believes that an applicable PCF was incorrectly applied to their qualifying transaction, the participant may submit a written query identifying:

    1. Participant ID;

    2. order ID;

    3. SKU;

    4. product;

    5. transaction date;

    6. QNR;

    7. PCF used;

    8. claimed correct PCF;

    9. reason for the dispute; and

    10. supporting evidence.

106. REVIEW

The Company may review:

  • the applicable Product Contribution Schedule;

  • SKU;

  • effective date;

  • transaction date;

  • QNR;

  • product status;

  • return/refund status;

  • PCF history;

  • calculation records; and

  • applicable Program rules.

PART 63 — NO AUTOMATIC ENTITLEMENT

107. PCF DOES NOT GUARANTEE PAYMENT

A participant's knowledge of a product's PCF does not guarantee:

  • sales;

  • orders;

  • QNR;

  • ACS;

  • TACS;

  • APP;

  • individual allocation; or

  • payment.

The final amount depends upon the entire Program formula.

PART 64 — CORE FORMULA

108. OFFICIAL FORMULA

The PCF Policy operates through:

STEP 1

Qualifying Net Revenue

↓

STEP 2

Apply Product Contribution Factor

↓

STEP 3

Calculate Contribution

QNR × PCF

↓

STEP 4

Aggregate Participant Contribution

ACSᵢ = Σ(QNR × PCF)

↓

STEP 5

Aggregate Eligible Participants

TACS = Σ ACS

↓

STEP 6

Determine Annual Partner Pool

APP = ADNP × 10%

↓

STEP 7

Determine Individual Allocation

Individual Partner Share = APP × (ACSᵢ ÷ TACS)

PART 65 — OFFICIAL AUDIT TRAIL

109. MINIMUM TRACEABILITY

The product-contribution calculation should be capable of tracing:

→ Participant ID

→ Social Media Account

→ Tracking Method

→ Order ID

→ SKU

→ Product

→ Quantity

→ Actual Selling Price

→ Discount

→ Return / Refund / Chargeback Status

→ Qualification Status

→ QNR

→ PCF

→ Transaction Contribution

→ ACS

→ TACS

→ APP

→ Individual Allocation

→ Tax / Withholding

→ Net Payment

The Accounting Policy identifies this type of traceability as the Program's intended audit trail.

PART 66 — GOVERNANCE PRINCIPLE

110. VERIFIED PERFORMANCE

The PCF methodology is intended to support:

VERIFIED PERFORMANCE

111. OBJECTIVE CONTRIBUTION

The PCF methodology is intended to support:

OBJECTIVE CONTRIBUTION

112. ACCOUNTING TRANSPARENCY

The PCF methodology is intended to support:

ACCOUNTING TRANSPARENCY

113. CONSISTENT APPLICATION

The PCF methodology is intended to support:

CONSISTENT APPLICATION

These principles are consistent with the Accounting Policy's stated governance framework.

PART 67 — BUILD WITH US. GROW WITH US.

114. PROGRAM PHILOSOPHY

The PCF methodology forms part of the broader Program philosophy:

BUILD WITH US. GROW WITH US.

The purpose is not merely to reward raw sales volume.

The intended objective is to recognise verified commercial contribution within the overall Program's written financial methodology.

The Accounting Policy expressly states that the Program seeks to connect long-term participant contribution with a documented collective annual allocation mechanism.

PART 68 — OFFICIAL POLICY ACKNOWLEDGEMENT

115. ACKNOWLEDGEMENT

The Company acknowledges that:

    1. PCF is a calculation factor;

    2. PCF is not a separate participant payment percentage;

    3. PCF does not create equity or ownership;

    4. PCF does not create guaranteed income;

    5. PCF does not independently determine ADNP;

    6. PCF does not independently determine APP;

    7. attribution must be established separately;

    8. QNR must be determined before PCF is applied;

    9. invalid transactions should not generate contribution;

    10. product economics may differ;

    11. higher selling price does not automatically mean higher PCF;

    12. PCFs should have an objective documented basis;

    13. future PCF changes may apply to future transactions;

    14. completed calculations should not be arbitrarily rewritten;

    15. legitimate corrections may be made where an identifiable basis exists;

    16. PCF records should be maintained for auditability;

    17. PCF shall operate consistently with the Accounting Policy;

    18. PCF shall operate consistently with the Master Terms;

    19. PCF shall operate consistently with applicable participant agreements; and

    20. all calculations remain subject to applicable law.

PART 69 — PARTICIPANT ACKNOWLEDGEMENT

116. PARTICIPANT UNDERSTANDING

Where this Policy is incorporated into a participant's agreement, the Participant acknowledges:

    1. I understand that Product Contribution Factor (“PCF”) is a calculation factor used to measure the contribution of qualifying products to my Attributable Contribution Score.
    2. I understand that PCF is not a commission rate, guaranteed payment, equity interest, ownership right, investment, deposit or guaranteed return.
    3. I understand that my attributable transaction must first qualify under the applicable rules before PCF is applied.
    4. I understand that Qualifying Net Revenue (“QNR”) and PCF are used to calculate my contribution score.
    5. I understand that my final allocation depends upon the Annual Partner Pool, my Contribution Score and the Total Contribution Score of eligible participants.
    6. I understand that a higher product selling price does not automatically mean a proportionately higher PCF.
    7. I understand that product costs, product economics, direct/variable costs, discounts and other objectively measurable factors may affect the PCF methodology.
    8. I understand that PCFs may change for future transactions or calculation periods.
    9. I understand that completed transactions should not be arbitrarily changed merely because a future PCF changes.
    10. I understand that legitimate corrections may be made where there is a demonstrable error, fraud, accounting correction, legal requirement or other documented basis.
    11. I understand that this Policy does not guarantee any particular income or payment.

PART 70 — OFFICIAL DOCUMENT CONTROL

117. DOCUMENT CONTROL

Document Name:

MYCLOTH INDIA ARMY — OFFICIAL PRODUCT CONTRIBUTION SCHEDULE & PRODUCT CONTRIBUTION FACTOR POLICY

Program:

MYCLOTH INDIA ARMY — LONG-TERM SOCIAL MEDIA ACCOUNT OWNER & BRAND PARTNER PROGRAM

Commercial Model:

10% LOYALTY ANNUAL NET PROFIT SHARE

Brand:  MyCloth INDIA 

Official Website: MyCloth.in

Document Version: 1.0

Effective Date: 18 September 2026

Last Updated: 18 September 2026

Policy Status: Official Program Policy

 

PART 71 — FINAL PCF POLICY STATEMENT

121. FINAL STATEMENT

The Parties acknowledge that the Product Contribution Factor is one component of the MYCLOTH INDIA ARMY financial allocation methodology.

The current Program structure is:

ADNP → APP → QNR → PCF → ACS → TACS → INDIVIDUAL SHARE

The Annual Distributable Net Profit determines the size of the collective Partner Pool.

The Qualifying Net Revenue and Product Contribution Factor determine the participant contribution score.

The Total Attributable Contribution Score determines the participant's proportional share of the collective Partner Pool.

Accordingly:

COMPANY PROFIT DETERMINES THE SIZE OF THE POOL.

VERIFIED PARTICIPANT CONTRIBUTION DETERMINES THE ALLOCATION OF THE POOL.

PCF is therefore a contribution measurement mechanism and not an independent payment promise.

FINAL PROGRAM PRINCIPLE

" BUILD WITH US ,

GROW WITH US "

VERIFIED PERFORMANCE + OBJECTIVE CONTRIBUTION + ACCOUNTING TRANSPARENCY + CONSISTENT APPLICATION

The Company shall administer this Policy together with the Master Program Terms & Conditions, the participant-specific Social Media Account Owner & Brand Partnership Agreement, the Official Annual Loyalty Net Profit Share Calculation & Accounting Policy, applicable attribution rules, fraud-prevention rules, tax/statutory requirements, accounting records and applicable law.

Nothing in this Policy shall be interpreted as excluding any right, remedy, liability or statutory protection that cannot lawfully be excluded.