DEPOT MANUAL

2009-2010

BHARAT ALUMINIUM COMPANY LIMITED

(A VEDANTA GROUP COMPANY) SUBJECT: DEPOT MANAGEMENT S.O.P. REV

OBJECTIVE: TO ESTABLISH GUIDELINES & POLICY FOR

OPERATIONS OF VARIOUS DEPOTS OF B.A.L.C.O.

AUTHORIZED BY: 1. 2. SEAL DATE

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ROLE OF CONCERNED PERSONEL IN DEPOT MANAGEMENT

1. 2. 3.

REGIONAL MANAGER

PRIME OWNER OF DEPOTS OPERATING IN HIS REGION.

PRODUCT MANAGERS

RESPONSIBLE FOR MANAGING SALE OF PRODUCTS FROM THE DEPOTS.

DEPOT INCHARGE

RESPONSIBLE FOR OVERALL OPERATIONS AT DEPOTS STARTING FROM RECIEPT OF MATERIAL, STORING & DESPATCH OF MATERIALS.IN ADDITON TO ABOVE HE WILL BE RESPONSIBLE FOR MEETING THE STATUTORY REQUIRMENTS TO BE DONE FOR THE RESPECTIVE DEPOT OPERATION.

THE GROUP PHILOSOPHY OF VEDANTA GROUP IS TO OPERATE DEPOT ACTIVITIES TO SERVE SMALL THEIR CUSTOMERS PRODUCT. AT BY MAKING WE ANY ARE GOVERNMENT AGENCIES AS CUSTODIAN OF PRESENT OPERATING THROUGH CWC/NSIC/HWC.

PREFERENCE IS BEING GIVEN TO CWC AS THEY

HAVE

THEIR

OWN

PREMISES.

CUSTOMERS

SATISFACTION SHOULD BE THE MAIN SOURCE OF CONCERN BUT SIMALTANEOUSLY THE INTREST OF VEDANTA CANNOT BE OVER LOOKED.

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TABLE OF CONTENTS

1.RECIEPT OF MATERIAL. 2.ISSUANCE OF C.O./D.O. 3.BILLING/INVOICING & DESPATCH. 4.COMPLIANCE OF STATUTORY REQUIRMENTS.

5.DEPOT M.I.S. 6.GENERAL GUIDELINES.

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1. RECIEPT & STORAGE OF MATERIAL

TO ENSURE THAT TRUCK DRIVERS SWIPE THE E-TRANS SWIPE

CARD ONCE THE TRUCK REACHES THE DEPOT. (NOTE: SWIPING IS NOT REQUIRED IN CASE OF SALES DESPATCH & SALES RETURNS). i) TO CHECK THE QUANTITY, No. OF PACKETS & SPECIFICATIONS OF MATERIAL WITH THE INVOICE DOCUMENTS. ii) TO CHECK QUALITY OF MATERIAL.IN CASE OF ANY PHYSICAL DAMAGE (INCLUDING WATER DAMAGE) VISIBLE FROM OUTSIDE. iii) TO CHECK MIXUP OF INGOTS OF VARIOUS GRADES.

ALL THE ABOVE CASES MUST BE RECORDED ON THE L.R. & REFFERED TO THE PRODUCT MANAGER, FOR FURTHER ACTION, IN FORM OF E-MAIL FORMAT GIVEN IN ANNEXURE-I. NO MATERIALS RECEIVED IN ABOVE CONDITION SHPULD BE SOLD TO ANY

CUSTOMERS RATHER IT SHOULD BE RETURNED BACK TO THE PLANT. . i) INCASE S.A.P. IS NON FUNCTIONAL, IT CAN BE UPDATED AS SOON AS S.A.P. GETS OPERATIONAL. ii) THERE SHOULD NOT BE ANY OVERWRITING/ CUTTING AT THE TIME OF RECIEPT/DISPACTH OF MATERIALS. A STOCK REGISTER FOR MANNUAL ENRTY ITEM WISE/INVOICE WISE AND UPDATED CLOSING STOCK IN ORDER TO CROSS CHECK PRODUCT WISE. RG23D & INWARD/OUTWARD REGISTERS AND S.A.P. (M.I.G.O.)

SHOULD BE UPDATED AFTER UNLOADING

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2. ISSUANCE OF C.O. /D.O.

PRODUCT MANAGERS WILL ISSUE D.O., AS PER THE

FOLLOWING PROCEDURE. i) IT MUST BE ISSUED ONLY AFTER AVAILIBLITY OF VALID FINANCIAL ARRANGEMNET, UNDER CONFIRMATION FROM REGIONAL FINANCE. THE DELIVERY ORDER IS TO BE SIGNED BY REGIONAL FINANCE OFFICER AS WELL. ii) IN CASE OF PRICE REVISION, ALL OPEN & UNEXECUTED D.O.s SHOULD BE CLOSED. DEPOT INCHARGES ARE NOT AUTHORIZED TO DESPATCH MATERIAL ON ANY SUCH D.O.

iii)

IN CASE OF L.C., ORIGNAL L.C. TO BE SENT TO REGIONAL OFFICE/S.A.G. D.O. WILL BE ISSUED ONLY AFTER CONFIRMATION FROM REGIONAL FINANCE/S.A.G. AS PER L.C. NEGOTIATION CENTRE.

iv)

IN CASE OF NON-AVILAIBLITY/FAILURE OF S.A.P., PRODUCT MANAGER CAN ISSUE MANUAL D.O. INTIMATING THE CONCERNED EXCISE OFFICE WITHIN 24 HRS.

v)

NO MATERIALS SHOULD BE HANDED OVER TO CUSTOMER UNLESS A SPECIFIC AUTHORITY LETTER ALONG WITH T/R IS SUBMITTED BY THE CUSTOMER.

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3. BILLING/INVOICING & DESPATCH.

ALL INVOICING SHOULD BE DONE IN S.A.P AS PER PROCEDURE. THE SUPPORTING DOCUMENTS i.e. TEST CERTIFICATE,

PACKING LIST AND BILL OF EXCHANGE, SHOULD BE PREPARED SIMULTANEOUSLY.

i)

IN CASE OF L.C. TRANSACTIONS, IT SHOULD BE INSURED THAT ALL REQUIRED DOCUMENTS ARE PREPARED TO SATISFY L.C. CONDITIONS.SPECIAL CARE MUST BE TAKEN IN PREPARING L.R. FOR THE SAME. IT HAS TO BE A BANK APPROVED L/R MADE TO THE ORDER OF THE ISSUEING BANK AND A/C CUSTOMER MARKED FREIGHT TO-PAY OR PAID AS THE CASE MAY BE.

ii)

NO INVOICING WILL BE DONE TILL MATERIAL IS PHYSICALLY RECEIVED & RECORDED IN RG23D REGISTER.

iii)

IN CASE S.A.P. IS NON OPERATIONAL, MANUAL INVOICES CAN BE MADE WITH PRIOR INTIMATION TO S.A.G., AS PER FORMAT GIVEN IN ANNEXURE-IV.

iv)

AS SOON AS S.A.P. GETS OPERATIONAL, INVOICE ENTRIES SHOULD BE MADE IN THE SAME.

vi)

INVOICES PREPARED FOR STOCK TRANSFER FROM ONE DEPOT TO ANOTHER, SHOULD BE CLEARY MARKED AS NOT FOR SALE.

vii)

IN CASE MATERIAL IS SOLD ON C.S.T BASIS, CARE MUST BE TAKEN TO COLLECT C-FORMS.

viii)

ALL THE P.G.I.s SHOULD BE CANCELLED WITHOUT FAIL, IF THE INVOICE FOR THE SAME COULD NOT BE PREPARED. PAGE-6

ix)

NO TRUCKS SHOULD MOVE OUT OF DEPOT PREMISIES WITHOUT PROPER INVOICE & OTHER DOCUMENTS.

AT THE TIME OF DESPATCH, BOTH RG23D & INWARD/OUTWARD REGISTER SHOULD BE UPDATED TO REMOVE STOCK. RG23D REGISTER SHOULD BE UPDATED ALONG WITH DVAT REGISTER ON DAILY BASIS AND PHYSICAL AVAILABLITY OF MATERIAL. SHOULD MATCH THE

4. COMPLIANCE OF STATUTORY REQUIRMENTS

IN CASE OF SAP FAILURE, MANUAL INVOICING IS PERMITTED, PROVIDED THE INVOICE STATIONERY CONTAINS PRE-PRINTED SL. NOS. F-FORMS ARE TO BE PROVIDED TO WORKS ON QUARTERLY BASIS WITHIN ONE MONTH AFTER THE END OF THE QUARTER. FURTHER, A MONTHLY REPORT IN THE FORMAT AT ANNEXURE-ST, MAY BE PROVIDED TO TAXATION DEPARTMENT OF CONCERNED WORKS.

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SALES TAX:

MONTHLY SALES TAX COLLECTION AMOUNT IS TO BE DEPOSITED TO SALES TAX AUTHORITIES AND COPY OF CHALLAN TO BE SENT TO S.A.G.

ALL THE SALES TAX QUARTERLY RETURNS ARE TO BE SUBMITTED WITH THE TAX AUTHORITIES WITHIN 30 DAYS OF COMPLETION OF THE QUARTER.

YEARLY TAX RETURNS ARE TO BE SUBMITTED UPTO 31ST OCTOBER OR AS DETERMINED BY THE STATE GOVT, FROM TIME TO TIME.

F-FORMS ARE TO BE OBTAINED AND SENT TO WORKS ON REGULAR BASIS.

YEARLY SALES TAX ASSESSMENT IS TO BE COMPLETED WITHIN DUE DATE FIXED BY TAX AUTHORITIES.

SUBMISSION OF EXCISE DOCUMENTS SHOULD BE DONE ON TIME AND DEFACING ACTIVITIES SHOULD BE COMPLETED EVERY MONTH.

DEPOT CHECKLIST IS TO BE SUBMITTED TO CMKT WORKS EVERY MONTH BEFORE 10TH AS PER FORMAT GIVEN IN ANNEXURE-V.

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EXCISE:
SUBMISSION OF QUARTERLY RETURNS TO BE ENSURED WITHIN 15

DAYS OF QUARTER ENDING.

SERVICE TAX:
REGIONAL MANAGER HAS TO ENSURE THAT ALL THE SERVICE ECC NO. AAACB 1290 NXM 002.THIS IS

PROVIDERS RAISE A PROPER INVOICE ON M/S.BHARAT ALUMINIUM COMPANY LIMITED, KORBA REQUIRED FOR TAKING CREDIT OF SERVICE TAX.

5.DAILY M.I.S.
CONCERNED PRODUCT MANAGERS & DEPOT INCHARGES SHOULD PREPARE DAILY M.I.S. AS PER ANNEXURE-VI.

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GENERAL GUIDELINES-

DEPOT INCHARGE SHOULD HAVE FOLLOWING DOCUMENTS

READILY AVAILABLE WITH THEM i) CONTRACT AGGREMENT FOR THE DEPOT BETWEEN SERVICE PROVIDER & BALCO/MALCO WITH TERMS & CONDITIONS. ii) PAYMENT DETAILS OF CURRENT AND PREVIOUS SALES TAX FILED. iii) iv) AUTHENTICATED PRICE LIST. LATEST CALIBERATION CERTIFICATE OF WEIGHTS AND

MEASURMENTS. v) A COPY OF THE AND ECC TIN CERTIFICATE NO. ISSUED BY EXCISE BY

DEPARTMENT

CERTIFICATE

ISSUED

COMMERCIAL TAXES DEPARTMENT. vi) A SIGN BOARD FOR BALCO/VEDANTA STATING THE AGENCY AS CUSTODIAN OF THE STOCKS. vii) DEPOT INSURANCE DOCUMENTS. DEPOT INCHARGE/PRODUCT MANAGER SHOULD MONITOR

THE TRUCK ARRIVAL TIME, IN CASE OF DELAY BEYOND 2 DAYS FROM NORMAL TRANSIT TIME, ALARM IS TO BE RAISED TO LOGISTICS & CMKT WORKS, VIA E-MAIL, ADDRESSED TO, HEAD (CMKT), HEAD (LOGISTICS), PRODUCT MANAGER & R.M., AS PER THE FORMAT GIVEN IN ANNEXURE-VII.

DEPOT INCHARGES SHOULD RECORD THE DOWNTIME

OPERATION DUE TO S.A.P. FAILURE AND OTHER CONDITIONS SUCH AS POWER FAILURE, LINK FAILURE ETC AND PROVIDE THE SAME IN FORM OF A REPORT TO G.M. (MARKETING), G.M. (SYSTEMS) & HEAD (CMKT) AS PER THE FORMAT GIVEN IN ANNEXURE-VIII. 10 DEPOT INCHARGE SHOULD ENSURE AVAILABLITY OF FIRE PAGE-

EXTINGUISHERS & OTHER SAFETY EQUIPMENTS SUCH AS HELMETS AND GLOVES. SEND RMs SHOULD VISIT ALL DEPOTS ONCE EVERY MONTH AND THEIR REVIEW REPORT TO G.M. (MARKETING)/V.P.

(MARKETING), ON THE COMPLIANCE OF THIS DEPOT MANUAL. F.I.F.O. (FIRST IN FIRST OUT) PRACTICE SHOULD BE

ADOPTED AT ALL THE DEPOTS. PHYSICAL VERIFICATION OF STOCK MUST BE DONE ON

MONTHLY BASIS AND THE REPORT IS TO BE SIGNED BY THE DEPOT INCHARGE & PRODUCT MANAGER.

AGEING OF STOCKS: THIS HAS BECOME A VERY SERIOUS ASPECT AND NEEDS PROPER FOLLOW UP. INSURANCE UNDERTAKES RISKS FOR THE STOCKS AT DEPOT FOR A MAXIMUM PERIOD OF 120 DAYS. ANY MATERIALS SPECIALY ROLLED AND ANY OTHER PRODUCTS IS KEPT FOR MORE THAN 120 DAYS BECOMES AN HIGH RISK MATERIALS WITHOUT ANY INSURANCE COVER . PROPER SURVELENCE IS REQUIRED. SO THAT STOCKS MOVES OUT AS PER FIFO RULES.

WEIGHING SCALE A WEIGHING SCALE OF APPROX. 3.5MTS CAPACITY IS A ABSOLUTE NECESSARY EQUIPMENT REQUIRED IN THE DEPOT. SOME OF THE WAREHOUSING PROVIDERS DO HAVE THE ARRANGEMENTS BUT PROPER CALIBERATION IS NOT DONE. IN SUCH CASES A NEARBY COMMERCIAL WEIGH BRIDGE SHOULD BE CONTACTED AND ALL THE RECIEPT AND DISPATCHES SHOULD BE WEIGHED SO THAT ACTUAL RECIEPT/DISPATCH IS VERIFIED. LOADING/UNLOADING OF MATERIALS ALL LOADING /UNLOADING SHOULD BE DONE IN A PROPER WAY BY USING HYDRA/ FORK LIFTERS OR BY MANNUAL LABOURS. STRICT VIGILENCE IS REQUIRED DURING THIS STAGE AND ANY LAPSES BY THE SERVICE PROVIDER SHOULD IMMEDIATELY BROUGHT TO THE NOTICE OF THE CONTROLLING AUTHORITIES. PHISICAL VERIFICATION THIS IS MANDATORY AND HAS TO BE DONE LAST DAY OR FIRST DAY OF THE ENSUING MONTH. A COPY HAS TO BE SENT TO SAG DULY SIGNED BY THE AUTHORISED SIGNATORY.