SOP - Standard Operating Procedure for Purchase Operation

STANDARD OPERATING PROCEDURE For PURCHASE OPERATION XYZ University 1|Page Prepared by Kaushik Dasgupta

Preface Purchasing is one of the basic processes common to all organizations. It is the process of acquiring goods, services, and equipment from another organization in a legal and ethical manner. Purchasing was initially a tactical contributor to the organization, focusing on transactional relationships and low price. However, over time, the role of the purchasers and the purchasing department has got changed significantly and the function has become strategic towards organizational competitiveness. This SOP for Purchase Operation has been developed keeping focus on standard universal purchase practice of XYZ Group and the operational nature of XYZ University. This is to be noted that this SOP is not permanent in nature and can be updated/edited from time to time depending on the necessity, XYZ Group/XYZ University’s norms and Government policies. The procedure included in this SOP supersedes all previous procedures issued on the subject. The procedures covered in this SOP are meant to be exhaustive. Those not specified here should be dealt within the terms of general policy guidelines and conventions already established. 2|Page Prepared by Kaushik Dasgupta

Table of Contents SECTION HEADLINES PAGE NO 1.0 Click the page number to reach to the individual headline 4 2.0 4 3.0 Introduction 4 4.0 Purpose 5 5.0 Objective 6 6.0 Scope 6 7.0 Exceptions 9 8.0 Policies 10 9.0 Purchase requisitions and Indents 11 10.0 Scrutiny of purchase requisitions and Indents 12 11.0 Floating of enquires 13 12.0 Receiving of quotations and allocation of orders 14 12.1 Release of Supply Order (PO/WO) 15 Terms and Conditions for PO/WO Proposed Procurement Process 13.0 Conclusion 19 A SPECIAL NOTE ON INVENTORY CONTROL SYSTEM 20 Formats showed in the below mentioned Appendixes are supposed to get generated in ERP system. Formats are shown for ready references only. Paper free transactions could only be achieved in ERP. App-I Appendix I: Purchase Flowchart - Total Process 23 App-II Appendix II: Requisition Format for PO 24 App-III 25 App-IV Appendix III: Requisition Format for WO 26 App-V 27 App-VI Appendix IV: Indent Format for AMC 28 App-VII Appendix V: Requisition Format for Library 30 App-VIII 31 Appendix VI: Specimen of Comparative Study Report/ Comparative Statement of Quotations (CSQ) Appendix VII: Inventory Checking Format Appendix VIII: Requisition to Draw items from Stores & Requisition Form Filling-up Guidelines. ** CLICK THE INDIVIDUAL HEADLINE TO COME BACK TO THIS PAGE 3|Page Prepared by Kaushik Dasgupta

1.0 INTRODUCTION: Purchase function is described as the business activity directed to securing the materials and/or services required in the operations of an organization. It has a long- range objective of ensuring continuity of cost-effective supplies of materials and services. Purchase function operates within a framework determined by the management. Like ‘Purchasing’, no other functions have such wide range of inter-department-relationships within an organization and relationships with outside supplier organizations. It is a managerial activity that includes planning and strategy which covers activities such as: Market research for new materials and development of new sources of supply. Follow up to ensure proper delivery. Inspection of materials for quality and compliance with specifications. Development of proper systems and procedures to enable the purchase function to be carried out efficiently. Coordination with other activities within the materials department like Transportation, Receipt Bay, Stores, Inventory-Control, Accounts, Salvage (disposal of scrap) etc. 2.0 PURPOSE: To provide a framework for managing the purchase function in an ethical, effective and uniformed manner by: Defining the Objectives and Scope of the purchase function Establishing the Purchasing Policies Describing the Procedures to be followed in the implementation of the policies Issuing Authority Level / Limits / and Guidelines to purchasing officials/ Purchasing Department. 3.0 OBJECTIVES: Make purchase commitments for materials, equipment and services at the lowest possible price, consistent with quality and delivery requirements. Ensure deliveries of purchased materials are materialized to meet Training, 4|Page Prepared by Kaushik Dasgupta

Operational and Maintenance requirements and also the requisite services, if any are performed as required and agreed by the user, buyer and supplier. Explore on all legally permissible opportunities for cost reduction on purchase of materials. Ensure suppliers adhere strictly to brand or make and test specifications and those receipted materials and equipment should meet specified quality standards and all stated performance criteria. Develop local suppliers. Establish and maintain good relationship with the suppliers. 4.0 SCOPE: This Standard Operating Procedure (SOP) covers all the purchasing activities of the following: All materials required for the University as a whole. Construction materials and machinery including spares, parts, tools and equipment. All civil projects including tenders for civil and electrical work. All capital equipment / items. All Academic project purchases. Office equipment and stationery. Housekeeping materials. Advertising services/ Marketing Needs like Hoardings, Signage, Sandwich Displays etc. Computer, Computer Peripherals, Software Purchasing (Excluding High Value Software License Purchase/Renewal) Uniforms for students/ staff (Gp-D) if any. Firefighting equipment. Vehicles/Equipment for Transportation. All other purchases of goods and / or services relevant to the execution of a University. 5|Page Prepared by Kaushik Dasgupta

5.0 EXCEPTIONS: Personnel services Mementos, souvenirs and gifts to employees High Value Software License Purchase/Renewal like Microsoft, Adobe etc. Hiring officespace 6.0 POLICIES: Except as otherwise specified under Exceptions entire purchasing for the University shall be made by the designated purchasing officials only. Purchasing official will have the following responsibilities: - Identify suppliers, obtain appropriate information, such as quality, delivery, pricing etc. and make all purchasing commitments after obtaining approval from Purchase Committee (PC) of the University. The constituent of PC has been given below: PURCHASE COMMITTEE CONSTITUENTS Chairperson - Chancellor/ Vice Chancellor/ OSD to Chancellor Members Secretary - Registrar/ CFO/ Purchase Head XYZ Group Members - Dean / Head of the Related Department - Accounts Officer, - Store Officer - Purchase Officer - Dy Registrar/ Asst Registrar - Librarian (For Book and Library related Procurement) -Any other member nominated by the Chancellor/ Vice Chancellor. -Other member(s) nominated by the Academic Council of XYZ University particularly for academic needs. - Other member(s) nominated by the Project Deptt. of XYZ Group particularly for Civil/Electrical/ Constructional needs. This committee needs to justify the requirement and must vet the required quantities also, from different angles as per the prescribed regulations of UGC or any other governing 6|Page Prepared by Kaushik Dasgupta

bodies’ compliance. The inventory/ stock needs to be taken into consideration during this judgement process. The following points are also advised for better practicing of Procurement Process : Solicit quotations only from suppliers who are qualified or can be qualified to meet all requirements. An approved supplier must possess ESI/PF and GSTIN. Examination of (1) financial status of the particular company and (2) its facilities and abilities to perform and meet the commitments timely, should be the prime part of the criteria considered at the time of selecting a supplier. The user and purchase officials shall be jointly responsible for identifying the acceptable suppliers. The user would be responsible for the technical evaluation and purchase officials for financial and service evaluation. Once acceptable suppliers have been identified, purchasing officials will recommend to the Purchase Committee for the selection of a supplier who can respond best towards the organizational requirements. The materials specifications shall be taken into consideration and also the price and availability factors without compromising the quality factor. The quality standard also shall not be unnecessarily rigid to preclude competition or economic purchasing. All items and service purchases must be properly covered by an appropriate and duly authorized purchase requisition or/and indent setting forth all the required information including date, specifications, delivery instructions and available budget provisions/ fund allocations. Items of regular consumption and services in recurring nature/regular needs shall be bought on a contract basis (Rate Contract for Items and Lumpsum Contract for Service) by sending annual/bi-annual enquiries every year. Other items shall be purchased by inviting quotations as and when the approved indents are received. Enquiries shall indicate the approximate quantity likely to be purchased to take advantage of bulk purchases. The quantities to be indicated in the enquiry letters/ mails/forms shall first be cleared by the authorized purchasing official with the indenter. 7|Page Prepared by Kaushik Dasgupta

Sealed Quotations/Bids shall preferably be obtained for all purchases. Official Mail Ids on XYZ Group/XYZ University domain also may be used for this purpose. But personal mail id in this regard may be discouraged. 1. Items cost below Rs.10,000/- can be directly purchased by paying cash after a rough price comparison/ market valuation is carried out. 2. Minimum one written quotation shall be obtained for items less than Rs.15,000/- and more than Rs.10,000/- after proper assessment of market rates. 3. Purchasing officials are responsible for obtaining at least three written/ printed quotations for purchase of materials, services or equipment in excess of Rs.15,000/- If quotations from less than three suppliers are obtained, appropriate justification should be recorded in the Comparative Statement and purchase approval form as to mention the reasons why three quotations are not obtained. All Purchase Orders / Service Orders shall normally be awarded to the lowest bidder. In case of deviations from this policy, proper justification must be recorded in the CSQ (Comparative Statement /Study on Quotations). No delivery of goods or work should begin without approved PO/WO in place. In exceptional cases such confirmatory orders have to be approved by the PC/ Competent Authorities set by the Chancellor/Vice Chancellor/OSD to Chancellor. Hence, Purchase Orders should not be issued after delivery of goods or work has started or services rendered merely to facilitate payment. In exceptional cases such confirmatory orders for “Post Facto” cases must be approved by the Chancellor/ Vice chancellor/ OSD to Chancellor. A normal credit period of 30 days from the date of receipt of materials shall be obtained from suppliers. Advance payments against orders, cash against delivery and documents through bank shall be restricted to the barest minimum. The prices quoted by any supplier and his identity shall not be disclosed to other suppliers until finalization of the supplier and release of supply order. All suppliers participating in the deal, shall be informed that the process has been completed and an award made. Settlement of suppliers bills for procurement of materials and / or services shall be by the way of NEFT/RTGS and cheque crossed Payees Account only. Cash 8|Page Prepared by Kaushik Dasgupta

disbursements up to Rs.15,000/- per transaction of a non- recurring nature may be permitted as an exception. All rejections and returns of the suppliers shall, as far as possible, be at the suppliers cost and risk. Purchase Official shall inform the supplier of such rejection for replacement or return within 7 days from the date of delivery/installation (as applicable). Other things being equal, local suppliers shall be given preference over outstation suppliers. Development of alternate suppliers should be pursued as an objective to reduce costs, disallow monopoly, provide flexibility and improve quality. Relationship of any personnel of XYZ University with the suppliers and their representatives should be in a manner that will only promote public goodwill in every respect and at all the times. Dealings with suppliers will be conducted with utmost integrity, adhering to the highest standards of ethical conduct. Gifts, entertainment or consideration of any kind or value from any source will not be accepted unless recognized as proper. (Inexpensive advertising / promotional items carrying the supplier’s logo like calendars, diary etc. are not considered as gifts within the definition of this policy). All vendors should be encouraged to come out with their best and competitive rate and also to let them play a fair game in the core process of procurement so as a healthy but tough competition could easily be generated among all to win the bid. Thus, on win-win process a fair deal could be expected. All hard copies of supportive documents like PR, Indents, floating of enquiry emails, Quotations/ Offers of the vendors, Budget Statement and CSQ should be filed properly along with a file copy of PO/WO against each case of procurement for future reference and Audit needs. 7.0 PURCHASE REQUISITIONS AND INDENTS: All procurement of materials and / or services covered by this policy shall be initiated through a Purchase Requisition duly approved by HOD. Designated Stores official is empowered to act only on the basis of an approved purchase requisition to raise Indent after scrutinizing the stock level. 9|Page Prepared by Kaushik Dasgupta

The indent thus prepared by Stores dept should be approved by the PC (Purchase Committee) or designated member appointed by the PC after getting vetted technically from department concerned. Indents must be accompanied by the approved Purchase Requisition and also be covered by adequate approved budget provisions. The requirement of stores to be procured through local purchase must be properly assessed by the Purchase Officer and should only cover the minimum inescapable requirement based on the proper inventory optimization process. Once the need has been established, after taking into consideration of available stock and availability of budget provisions, action will be initiated Purchase requisition / indent shall not be sent to purchase after work is started or materials are delivered or services have been rendered merely to facilitate issue of purchase order and for payment. In exceptional cases, such confirmatory indents must be approved by the PC or designated staff member appointed by PC. 8.0 SCRUTINY OF PURCHASE REQUISITIONS AND INDENTS: Purchase Department shall scrutinize the approved indents on its receipt with specific reference to: Completeness of indent including specifications, delivery schedules adequate approved budget coverage etc. Approved Purchase Requisition. Quantity availability status in stores to be certified by stores. Whether any special permission required for purchase / storage Indent Approved by PC or designated staff member appointed by PC. Specifications it should include quality, quantity and brand / trade name or make, where applicable. Sample to which supplier is required to conform to, if the make is not available, alternate to be specified. Drawing / sketches where needed. Specifications should not be given to suit a particular supplier. 10 | P a g e Prepared by Kaushik Dasgupta

9.0 FLOATING OF ENQUIRIES: A Database/Record of Suppliers under various categories be maintained in the office of the Purchase Officer authorized to invite quotations. The suppliers should be categorized according to the nature of the supply, the credential of the suppliers and on a whole, based on the ‘vendor evaluation’ process. This Database/Record must be reviewed once in a year by the Purchase Committee. Items required to be purchased will be grouped category - wise for the purpose of enquiry/ inviting of quotations i.e. separate enquiry for Computer, Laboratory Equipment items, Chemicals Items, Stationery Items and so on. A clear description of items and specifications should be given. The quantity also to be specified. The name of suppliers / firms from whom the quotations may be invited will first be defined by the Purchase Committee or member appointed by the PC. Reasonable time will be allotted to enable the suppliers to deliver/send the quotations. All quotations are preferably be sent by courier and a proper record be maintained. However, for emergency and rush orders, quotations can be obtained through Fax/ by hand, but in sealed envelope. The quotation enquiry/invitation form must clearly elaborate the following:- √ Name of the consignee. √ Place of delivery of items. √ Supplier’s rates required to be indicated in figures and words. √ Whether rates quoted be for free delivery to the consignee or transportation charges being levied. √ Whether rates quoted are inclusive or exclusive of CGST / SGST, discount etc. √ The time allowed for making supplies should be specified. In case of large supplies, a phased delivery programme or piecemeal delivery schedule may be planned and specified. 11 | P a g e Prepared by Kaushik Dasgupta

10.0 RECEIVING OF QUOTATIONS AND ALLOCATION OF ORDERS: The ideal approach is that - A Quotation Box/ Bid Box duly locked will be kept in the office of an officer nominated by the officer/ Purchase Committee (PC) authorized to place the order for local purchase. The key will also be kept with this officer/PC. The slit at the top of the box will be designed to prevent any removal of the quotations already inserted. Quotations will be put into the box by the local suppliers directly and not through any of the departmental staff. Quotations received by post will be initialed and dated on the envelop by an officer so designated and kept in safe custody till opening date. Considering the current mode of faster operation, Quotations can be collected through Email also. But the Quotations must reach to the official email of Purchase Officer and/or Purchase Head. Quotation coming through anybody else’s email ID will not be considered. An officer nominated by the officer/PC authorized to place the order will open the quotations on the due date and time. Quotation due for the date of opening will be sorted out and balance quotations received on subsequent time and date will not be opened and recorded. Quotations received through Email would be taken into consideration under the direct control of PC/ Purchase Head. All corrections / overwriting will be also initialed. These will then be entered in the comparative statement with complete details of the offer made specifications, delivery period offered, terms / place of delivery, terms regarding GST or any other conditions enumerated. In case the rate against certain items is not quoted, the opening officer shall insert a remark to that effect and initial. The officer will also initial every correction / overwriting made in different inks / handwritings. Each correction / over writing will be written in words by the officer before putting in his initial. The quotations will be scrutinized thoroughly by the officer dealing with the purchase. The Comparative Statement will then be submitted with the case on file to the PC or an official nominated by the PC and authorized to place the supply order. 12 | P a g e Prepared by Kaushik Dasgupta

An endorsement on the Comparative Statement to be made by Serial No. M/s. with rates approved being lowest / suitable to the requirements while processing the case on file. In case of suitability of an offer which is higher than the lowest quoted, reasons for its acceptability will be recorded on file. The recommendations will cover the suitability of materials offered, delivery period and reasonableness of rates based on past experience. The total cost of the order, the cost of the order against each supplier recommended for placing the order and the availability of budgetary support to meet the proposed expenditure will also be indicated. Budget approval and fund allocation for procurement of materials/services through Expenditure Sanction should be obtained prior to the procurement. For selecting the right source of supply, quotations obtained along with the Comparative Statement will be sent to the PC or person nominated by the PC for final approval before placing the Supply Order. Accounts Department also to be notified for fund involvement information and allocation of fund thereon. 11.0 RELEASE OF SUPPLY ORDER (PO/WO): Based on the approval of the Purchase Committee, the Purchase Officer will prepare the purchase/work order and submit the same for the signature of the official nominated by the PC to release the supply order, certifying the correctness of the supply orders, as approved both in terms of actual, price and supply order amount. The supply order can be dispatched by courier/postal/Email/Fax. It is the responsibility of the signing authority to ensure that there is no ambiguity in the supply order. A reasonable period should be allowed to the supplier to remove and replace the rejected supplied item(s). In the event of failure, action for return of such stores will be done at the risk and cost of the supplier. Any discrepancy in the quality and quantity in items received will promptly be brought under the notice of the supplier in writing including any damage that might have occurred during transit. Receipted item which have been inspected and accepted will promptly be Brought On Charge (BOC) in stocks record by the respective stores authorities. 13 | P a g e Prepared by Kaushik Dasgupta

12.0 TERMS AND CONDITIONS FOR PO/WO: The standard terms and conditions require to be printed on the purchase orders/ work orders. As per normal policy, purchasing officials shall negotiate for FOR (Free on Road) Destination terms and ensure that suppliers to send the materials on freights pre-paid basis. In exceptional cases freight may be paid in cash, on the approval of PC/CFO. These terms should always be insisted upon and acceptance of the same by the supplier has to be obtained on the supply order acceptance copy. All other terms would be applicable unless otherwise stated depending upon the nature of supply order. Supply order shall not be released after the work has started, or materials delivered or services rendered merely to facilitate payment. In exceptional cases such confirmatory supply orders may be approved by PC or a competent authority. A Specimen Proforma for PO/WO is given below: Offer No.: Date of Issue of PO/WO/SO: Requirement for: Address of Delivery: Payment: Within 30 days after receiving the bill. GST : As Applicable. Freight: Inclusive (Preferably) Warranty : 1 (One) Year onsite warranty against any manufacturing defects from the date of Installation. Note : 1. Please sign the duplicate copy as token of acceptance of order. 2. Materials delivered at our University campus must be recorded at security gate for SECURITY CHECKED-IN STAMP, before reporting to store. Challan / Bill will not be accepted without Original Security CHECKED-IN STAMP. 3. RECEIVING TIME FOR INCOMING MATERIALS FROM 10:00 A.M. TO 5:00 P.M. [IN ALL WORKING DAYS] 4. Inspection Procedure: Material will be inspected at site as per existing procedure by our authorised person and his decision will be final and binding on you. Inspection Documents : You are to submit following documents along with your bill : (a) Warranty Certification, (b) Any other documents if required. 5. L.D. / Cancellation :- In case of failure in supply of part/full materials within the stipulated 14 | P a g e Prepared by Kaushik Dasgupta

delivery schedule, this will attract liquidated damages a sum equivalent to 1% per week of the price of non-executed portion (including taxes, duties, freight etc.) subject to maximum 5% of the total value. In case of failure even after a reasonable period, we will reserve the right to cancel the order. 6. The rate quoted by you must be competitive in comparison to prevailing market rate and in case any rate is found higher than the prevailing rate the difference of amount may be deducted from your outstanding dues. 7. In case of any dispute in supplies the decision of our University Controlling Authority will be final and binding on you. 8. Price: Firm during the pendency of the contract. 9. Bill will be submitted along with the receipted original challan & Photocopy of Order at Our University Campus Reception, XYZ University, Rajarhat, Kolkata-700156 10.All legal disputes are subject to be Kolkata's Jurisdiction. 11.Please contact to our official Landline number for any difficulties experienced by you in dealing with us. 12.1 PROPOSED PROCUREMENT PROCESS: All procurement of materials and / or services shall be initiated through a Purchase Requisition. Designated person from a department shall submit the requisition along with specifications like quality, quantity and brand / trade name or make (if any), in case of proprietary items in the ERP. Designated authority preferably HOD will approve the requisition in ERP system after checking the feasibility, actual Requirement, current stock at Inventory level etc. Items required to be purchased will be grouped category - wise for the purpose of calling of quotations i.e. separate quotations for Computer, Laboratory Equipment items, Chemicals Items, Stationery Items, books and so on. The Store authority will verify the available stock, if the requested materials are not in stock or stock doesn’t permit to issue further, the store will raise the indent. If any material is available in store, they will not raise any indent and will inform the concerned department to draw the items from store and thus to nullify the PR. Likewise, for service procurement all relevant actions will be same as mentioned above. Only the Requisition to be submitted to the Project Department for feasibility check and if found feasible for further procurement of rendering services, then Project department would raise relevant indent for Work Order (WO) and will forward the 15 | P a g e Prepared by Kaushik Dasgupta

same to PC for further approval and onward processing. For AMC (Annual Maintenance Contract), a separate indent needs to be raised against service requisition, format of which is placed on Appendix-IV to this write-up. For Books and Journals requirement, PR to be raised and approved by the concerned departmental Library and to be submitted to Central Library. Further the Central Library will raise the indent quoting and ensuring the GOC Rate (Good Office Committee rate, which gets changed every after 6 months) and will then forward it to the PC for approval and onward processing. For its own operation, if Cetral Library needs procurement for books and journals then they only have to raise an Indent directly and may send to PC for approval and onward processing. It is to be kept in mind that for Books and Journals procurement, the Purchase department only has to look for actual discount % on the GOC rates on invited quotations. Person nominated by Purchase Committee shall check the Indent with requisition. If the Indent approved by him the Indent will then be sent to Purchase Department for floating of enquiry. On receipt of approved Indent, the Purchase Department then float the enquiry to collect Tender/Quotations from at least three authorized / enlisted vendor / supplier. A list of registered suppliers under various categories should be maintained by the Purchase Committee/ Purchase Department. The suppliers should be categorized according to the nature of the supply. These Registered suppliers will be reviewed once in a year by the Purchase Committee. Reasonable time will be allotted to enable the suppliers to dispatch the quotations. All quotations will be sent by courier/email and a proper record to be kept. But the Quotations must reach to the official email of the authorized purchase professional/ member nominated by purchase committee. Quotation coming through anybody else’s email ID will not be considered. The quotation form will clearly elaborate the following:- √ Name and Address of the consignee. √ Place of delivery of items. √ Supplier’s rates required to be indicated in figures and words. √ Whether rates quoted be for free delivery to the consignee or transportation charges being levied. 16 | P a g e Prepared by Kaushik Dasgupta

√ Whether rates quoted are inclusive or exclusive of CGST/SGST/IGST, discount etc. √ The time allowed for making supplies should be specified. In case of large supplies, a phased delivery/piecemeal delivery may be programmed to complete the supply. A person/officer nominated by the Purchase Committee for academic needs and purchase professional from Purchase Department for general procurement who is authorized to place the order will open the quotations on the due date and time in the Purchase Committee meeting. Quotation due for the date of opening will be sorted out and recorded. No corrections / overwriting will be allowed in the final quotation submitted. The Comparative Study Report from accepted quotations with full details of the offer made specifications, delivery period offered, terms / place of delivery, terms regarding applicable taxes or any other conditions enumerated will be prepared. The Comparative Study Report or Comparative Statement on Quotations (CSQ) should be generated through the ERP (supported by the justification). In case of suitability of an offer which is higher than the lowest quoted, reasons for its acceptability must be recorded. The recommendations will cover the suitability of materials offered, delivery period and reasonableness of rates based on the past experience. The total cost of the order against each supplier recommended for placing the order and the availability of budgetary support to meet the proposed expenditure will also be indicated. The available quotations along with the CSQ will be scrutinized by the Purchase Committee/ a designated member appointed by the PC. Based on the recommendation mentioned in CSQ and after scrutiny, the PC will select the Vendor for the deal and also will give final approval to the CSQ, thus to direct Purchase Department to place the order on the selected vendor(s). Accounts Department will also be notified for fund allocation. Generation of PO / WO will be done by the purchase department basis on the recommendation of Purchase Committee and approved CSQ. The PO/WO now to be submitted for the signature of the officer (OSD to Chancellor/Registrar /Purchase Head) authorized to place the PO/WO, certifying the correctness of the PO/WO, as approved both in terms of actual, price and PO/WO amount. 17 | P a g e Prepared by Kaushik Dasgupta

The PO/WO can be dispatched by courier/postal/Email/Fax. To ensure that there is no ambiguity in the PO/WO. Further, the following points / conditions may also be fully covered:- Materials delivered as per PO/WO to be received by store. Store will prepare the Inspection Report. Inspection & Installation Report to be completed and finally be submitted by the concerned department. The Store shall prepare the GRN within 1 day after submission of Inspection & Installation Report by the concerned department. No delivery of goods or work should begin without approved PO/WO in place. In exceptional cases such confirmatory orders must be approved by the PC/Designated Authority/Competent Authority. For better vendor management, ‘vendor rating’ and ‘vendor evaluation’ process must be exercised. One of the important matters to know is the legal aspects of purchasing. Every buyer should know the legal implications of the acts which he/she performs in the name of the organization. Without this essential knowledge he/she may unconsciously commit acts which are more expensive to the organization than the savings made by careful buying. He/she should have a thorough knowledge of the Law of Contracts and the Sales of Goods Act. He/she should also know the extent of his personal liability. The purchase and stores professional also should know the basic technical details of the items they are dealing with. It would help them to take proper decision for better procurement process. 18 | P a g e Prepared by Kaushik Dasgupta

13.0 CONCLUSION: There are many advantages in standardizing procedures and laying them down in detail. However, flexibility is desirable, and changes should be adopted whenever an improved method can be thought of. Buyer’s function categorically be made more strategic and continuous efforts to be given to promote efficiency and economy. 19 | P a g e Prepared by Kaushik Dasgupta

A SPECIAL NOTE ON INVENTORY CONTROL SYSTEM As of now, the Inventory Control system of XYZ University is not at all in good shape, rather it is missing actually. The competent authorities must give much focus on this area to develop good Inventory optimization process immediately. We should not forget that Inventory always incurs costs in terms of Inventory Cost, Inventory Carrying Cost, Ordering Cost etc. To curtail such cost, a proper Inventory control or Inventory Optimization is very much required. Proper stores department with proper bins location system and storing process is to be established. In the ERP system, a thorough process of proper Inventory control needs to be added and to be taken into effect where stock positions like Min-Max level of establishment needs to be defined with a provision of buffer or reserve stock system. Projection of requirement also to be made transparent at every level. Improper authorisation and wrong delegation of power i.e. stock controlling authorities with many people may attract improper accounting, misuse of inventories, huge wastages and incurring project cost. Also, for waste materials which have got resale values, should be accounted properly and a separate salvage store needs to be made in a secured place which may bring some profits for the organization. The following points may be followed for proper inventory control and also to optimize associated cost: 1. As per the nature of items, dedicated Stores (but not Godown) to be established with good infrastructure to protect the items from untimed deterioration and pilferage. A proper manning with dedicated staff members to be appointed for stores and also for strong Inventory control process to develop in coming days. 2. Proper binning and storing needs to be done. Bin-Stock-Location system needs to be maintained. 3. Till the time the ERP is customized to give utmost output, a parallel manual process like maintaining Asset Register, Stock register, Vehicle In- Out Register, Inspection Register, Bin Stock Location Register, Indent Register, Issue Register (Based on FIFO/ FEFO) etc. to be maintained properly with proper routine check which needs to be carried out by the competent authority. 4. Stock-Taking to be initiated every month. 5. Proper slotted angle racks to be installed in the stores premise as sole, independent and non-transferable properties ( not to be shifted anywhere/ issued to any concerns under any obligations) and items to be stored 20 | P a g e Prepared by Kaushik Dasgupta

properly on those racks as per the types, categories of transaction and nature of items. 6. Proper pest control and fire protection needs to be introduced to protect the items. 7. A reserve/ buffer stock level for fast moving items needs to be maintained, basis on the past consumption and forecast factor. For stock level maintenance of such recurring items, separate procurement needs to be initiated to get rid of sudden crisis and also to attend urgent requirement. 8. All measuring units must be calibrated properly within specified timeframe. 9. All indents and its quantities need to be vetted properly and cautiously till the time ERP is properly customized up to certain level from where this process would automatically be controlled by the ERP itself. 10. Details of all vehicles, carrying the supplied materials needs to be entered in the Vehicle In-Out register for future reference if required. 11. All documents like Delivery Challan, Warranty Certificate, Test Certificate, Installation Certificate, Transportation copy, Tax Invoice/ Bills etc. to be properly kept and entered in the register/ ERP (when emerged) 12. On receipt, preliminary visual inspection (V.I.) for nomenclature (as mentioned in P.O.), quantity and condition of the receipted item needs to be carried out at stores level. Also needs to arrange a quality inspection by the authorized technical bodies/ end users without delay. 13. Items once rejected by the competent bodies/ Inspectors/End Users, action of returning the same to the vendors needs to be initiated without delay with the active involvement of Purchase Department and particularly in the case of Advance Payment remittance scenario, replacement of the rejected item(s) should urgently be informed to the purchase department without a single moment delay. Further communication with the vendor would be executed by the Purchase Department of their own. Such cases to be recorded and documented in stores for future reference. 14. On correct receipt of the items at Stores, raising of GRN in ERP should be initiated within the specified timeframe. A parallel recording may also be done to update the stock manually in stock register, till the time ERP comes out with more customized features to make the inventory level optimized. 15. The Stores should not issue materials, physically without raising GRN in the system. For exceptional cases, proper permission should be accorded from the competent authorities. 21 | P a g e Prepared by Kaushik Dasgupta

16. Proper quantity checks like Dipstick Reading/ Dip Reading should be executed before receiving Petrol / Diesel consignments, if any in future consequences/ transactions. 17. Ethical practices in every respect should be adhered all the time to add values to the organization. 18. For Waste Materials those are having resale value, must be stored in a separate salvage stores/ yard and proper accountability should also be taken care of. A practice of ‘Return to store as Un-serviceable’ against all repairable/ obsolete/ obsolescent items require to be introduced for better Inventory Control process. For disposing off those materials time to time auction process to be carried out with proper authentication and documentation. 19. For all capital assets and tangible inventories like Furnitures, Equipments & Instruments, Tools, Electronic Goods, Computers & Printers etc. to be allotted with unique Inventory Numbers prefixed by XYZ University/INV which are to be maintained in a dedicated register viz. ‘Inventory Numbers allotment Register’. Inventory Check in a regular interval particularly for the Lab equipments require to be carried out to monitor and keep proper accountability over the available inventories used in academic needs. A format to carry out the same exercise is placed on Appendix-VI as a ready reference. *** For regular issues and drawing of items from XYZ University Stores, a requisition format is placed on Appendix-VII followed by a guideline for filling up the said requisition form. These two documents are also available in the dropbox of our University intranet which may be accessed at \\\\10.10.15.11\\Common\\Requisition (Stores). ********************End of the Write-up. ************************ 22 | P a g e Prepared by Kaushik Dasgupta

APPENDIX- I HOW AN ITEM IDEALLY BE PROC To be done at ERP Verify current stock and raise Indent If any material is available in store, supply and don’t raise indent As per PO/WO Prepared by Kaushik Dasgupta

CURED AT XYZ UNIVERSITY Check the feasibility Actual Requirement Current stock etc. YES NO At least 3 quotations for each item From authorized / enlisted vendor / 23 | P a g e a

APPENDIX-II PURCHASE R (To be submitted to Stores REQUISITION NUBER P DATE : PR A DEPARTMENT DELIVERY TO BE MADE BY (DATE) D ITEM DESCRIPTION WITH FULL SPECIFICATIONS INCLUDING SL COLOUR, MAKE/BRAND, SIZE, DOQ/ QTY PRIORITY PURPOSE F NO. UOM DEMANDED THE RE MATERIALS ETC. (WHERE APPLICABLE) Prepared by Kaushik Dasgupta

REQUISITION Deptt. for raising of Indent) PR RAISED BY DESIGNATION APPROVED BY APPROVER'S DESIGNATION INVENTORY LAST PURCHASE ONLY FOR THE USE OF STORES BALANCE (IF ANY) PRICE / DEPARTMENT FOR PROJECTING APPROXIMATE STOCK REMARKS BY STORES IF EQUIREMENT COST (IF DETAILS ITEM IS AVAILABLE AND TO BE MAY BE ISSUED TO NULIFY NEW / U/S AVAILABLE) FOR GIVEN BY USABLE FINANCIAL STORES THIS PR OR IMPLICATION MENTION INDENT NUMBER IF STOCK IS N/A 24 | P a g e a

APPENDIX-III SERVICE RE REQUISITION NUBER (To be submitted to Project D DATE : PR RAISED DEPARTMENT BY JOB TO BE COMPLETED BY DESIGNATION (DATE) PR APPROVED BY APPROVER'S DESIGNATION JOB/SERVICE DESCRIPTION WITH FULL DETAILS OF JOB SPECIFICATION INCLUDING QTY DEMANDED CATEGORIES OF WORK LIKE: FOR FINISH PURPOSE FOR SL PETTY WORK – (UPTO Rs. 20,000/- UOM PRODUCTS/ PRIORITY PROJECTING NO. ) AREA OF CIVIL THE MINOR WORK – (Rs. 20,000/- to JOB AS SOUGHT REQUIREMENT 1lakh) FOR MAJOR WORK – (Above Rs. 1Lakh) Prepared by Kaushik Dasgupta

QUISITION Deptt. for raising of Indent) D N D S ONLY FOR THE USE OF PROJECT DEPARTMENT N LAST INVENTORY BALANCE CONTRACT (FOR REQUIRED FINISH PRODUCTS RATE / ESTIMATED ONLY, IF AVAILABLE). NOT FOR THE CIVIL COST (IF CONSTRUCTION JOB AVAILABLE) NEW / U/S FOR READYMADE REMARKS BY PROJECT IF JOB USABLE (COULD BE FINANCIAL STOCK, IF COULD BE ACCOMPLISHED WITHIN REPAIRED IMPLICATION AVAILABLE (FOR THE ESTABLISHMENT BY AND REQUIRED FINISH ARRANGING READYMADE ITEMS ISSUED) FROM STOCK OR RENDERING IN- PRODUCTS HOUSE SERVICE TO NULIFY THIS PR ONLY, NOT FOR OR/ IF NOT THEN CIVIL THE INDENT NUMBER FOR CONSTRUCTION FURTHER PROGRESSION JOB) 25 | P a g e a

Appendix - IV XYZ UIVERSITY INDENT FOR ANNUAL MAINTENANCE CONTRACT (AMC) _________________________________ (Name of the Lab./Instrument/Equipment) PR/SR. No. ___________________PR/SR RAISED BY (DEPARTMENT) ____________________ Indent No. &Date__________________ Name of Indenter ______________________________ Designation ___________________Department ._____________________________________ Annual Maintenance Contract for the item / equipment / instrument / software, details of which are appended below, may kindly be finalized. 01. Name of the Goods 02. Model and Serial Number 03. Name of the manufacturer/firm 04. PO No. & Date of purchase of goods 05. Total cost / Book value in Rupees 06. Date of installation 07. Period of warranty in years 08. Date of expiry of warranty 09. Present condition of the goods 10. If any repairs have to be carried out before commencement of AMC 11. Requirement of spare parts, critical, non- critical or essential calibration, if any 12. Whether AMC required is Comprehensive/Non-comprehensive 13. Whether User Logbook is maintained Yes / No / Not Applicable 14. Whether AMC is to be entered with OEM/ First time / Renewal Authorized Dealer/Service Provider/Third Party Supplier 15. Whether AMC is being done for 16. Details of Last AMC (In case of renewal) 17. Duration of the AMC now required a. No. of Preventive & Break down Calls required b. Any specific requirement 18. Scope of work/ maintenance including inclusions & exclusions 19. Name of the Firm(s) with whom the AMC may be entered with 20. The estimated cost of AMC 21. Full Address of the Service Provider 22. Budget Provision details ____________________________________ _________________________________ Signature of the Intender Signature of the Project Head/ Director Date: Date: ____________________________________ Approval of PC/ Official nominated by PC Date: 26 | P a g e Prepared by Kaushik Dasgupta

Appendix - V PURCHASE REQUISITION FOR BOOKS/ J (Departmental Library has to submit this PR to REQUISITION PR RAISED NUBER BY DATE : DESIGNATION LIBRARY CONCERNED PR TO DEPARTMENT APPROVED BY DELIVERY TO BE MADE APPROVER'S BY (DATE) DESIGNATION NAME OF BOOKS/ QTY HELD JOURNALS VOLUME/ PURPOSE FOR WITH SL ALONG PUB DOQ/ QTY PRIORITY PROJECTING NO. WITH YEAR UOM DEMANDED DEPARTMENTAL THE LIBRARY (IF AUTHOR'S REQUIREMENT ANY) NAME Prepared by Kaushik Dasgupta

JOURNALS o Central Library) ONLY FOR THE USE OF CENTRAL LIBRARY IF PURCHASED REMARKS BY PREVIOUSLY, CENTRAL LIBRARY IF L QUOTE THE THE SAME AVAILABILITY LAST CURRENT BOOK/JOURNAL IS IN CENTRAL DISCOUNT GOC AVAILABLE AND MAY LIBRARY RATE RATE BE ISSUED TO NULIFY OFFERED THIS PR OR THE AND BOOK INDENT NUMBER IF SUPPLIER'S STOCK IS N/A NAME 27 | P a g e

APPENDIX- VI SPECIMEN OF A COMPARATIVE STUDY REPORT / COM XYZ UNIVERSIT STORES DEPARTM Comparative Statement o Purpose - Requirement of SLOTTED ANGLE SL. ITEM NAME DOQ TOT NO. Slotted Angle Rack open type of size. 6.5 ft. H x 3 ft. L Each 3 x 18'' (D) having 6 shelves making 5 comp. without 1 bracing. Made out of Angle of 14 gauge & shelves will be 18 Swg. Powder Coated Finish. Payment Terms:- 18% Total GST (%) Extra Transportation & Misc. Charges Grand Total Prepared by Kaushik Dasgupta

MPARATIVE STATEMENT OF QUOTATIONS (CSQ) TY MENT of Quotations CSQ No. STORES/ 0005 E RACK FOR STORING HEAVY ITEMS TAL Price quoted by M/s Meghdoot Price quoted by M/s Nundys Total Price of M/s Meghdoot Total Price of M/s Nundys 3 ₹ 5,400.00 ₹ ₹₹ 4,710.00 16,200.00 14,130.00 100 % 100 % Credit Credit ₹ ₹ 16,200.00 14,130.00 ₹ 2,916.00 ₹ 2,543.40 FOR FOR ₹ ₹ 19,116.00 16,673.40 ₹₹ R/O 19,116.00 16,673.00 28 | P a g e

Appendix- VI (Contd.) STORES I/c XYZ Un 14-Mar-19 1 Requirement Projected by 2 Requirement projected date to Purchase Department IMMEDIATE 3 Requirement needs to be fulfilled by date & time 1 DAY 4 Lead time of the job accomplishment M/S NUNDY'S 5 Selection of vender (Based on L1) URGENT 6 Priority Enquiry Floated a Enquiry Floated among how many vendors? State the reasons if floated less 1. Demand than 3 vendors 2. Exiting r 7 with M/s Selection of vender other than L1 (If any)/ 3. Purchas 8 Reason(s) of selection 9 Last Purchase rate and with 10 Last Payment Terms ready to 11 Last Purchase held with Vender (Name) 12 Stock In Hand N/A N/A 13 Total Amount N/A N/A NIL In Figures In words RUP Recommended by Purchase Committee Sl. No. Name of the Members, Purchase Committee 1 2 Prepared by Kaushik Dasgupta

niversity among 2 vendors as: ded on utmost urgency rate /Last Purchase Rate available s Meghdoot (L2 in this case) se to be made on complete credit hin 1 day no other vendors became o make the delivery. ₹ 16,673.00 EES SIXTEEN THOUSAND SIX HUNDRED AND SEVENTY-THREE ONLY Signatures 29 | P a g e

Appendix- VII XYZ UNIVERS Department : Inventory Check: Lab Instrument Details INVENTORY / STOCK STATU Sl.No. Funded by Actual XYZ Required Qty Qty Make/ University or (Governed by Available Instrument's Manufacturer's Assembled Brought by a XYZ (As per Name (Yes/ No) Faculty University/UGC/ Physical Name (Name to be AICTE Etc. if Stock) mentioned) any) Prepared by Kaushik Dasgupta

SITY b Instruments US Purchase Details Room No. Inventory No. (XYZ Course / Lab No/ University/INV/UG/PG/) (UG/PG) Location e P.O No. P.O. Price (In Rs.) Suppliers' Name Year 30 | P a g e

Appendix- VIII REQUISITION DEMAND, RETURN & NUBER DATE D, R &I NO. 2020-2 DEPARTMENT DEMAND INITIATED BY DEMAND APPROVED BY NAME DESIGNATION ISSUED BY ISSUE APPROVED BY INVEN BALAN AN PURPOSE FOR SL ITEM DOQ/ QTY PROJECTING NO. DESCRIPTION UOM DEMANDED PRIORITY THE REQUIREMENT NEW USABL Prepared by Kaushik Dasgupta

& ISSUE VOUCHER 21 D,R&I No/ D,R&I DATE : DESIGNATION SIGNATURE of APPROVER DESIGNATION SIGNATURE NTORY SHORTFALL QTY NCE (IF NY) UNSERVICE- NAME OF SIGNATURE ABLE (U/S) THE OF THE QTY TO U/S QTY PERSON QTY ISSUED ISSUE TO PERSON RETURNED NEW / RECEIVING RECEIVING / U/S TO STORE USABLE RECEIVE ITEM LE QTY AT STORE ITEM 31 | P a g e

Appendix- VIII (Contd.) HOW TO FILL REQUISITION FORM (DEMAND, RETURN & ISSUE VO 1. End User/ Consumer sections are advised to maintain a Requisition Regist the form. 2. D,R&I No and D,R&I Date would only be given by the stores departm 3. Just below the Requisition Number, the date of raising the requisition form 2/3 for 02 March 2020, 3/4 for 03 April 2020 and so on…. 4. Just below the Requisition Date, User has to specify the Department’s nam 5. The person in the User section, who is raising the requisition form needs to mention his/her Designation in the appropriate column. 6. Further, the column named as ‘DEMAND APPROVED BY’ to be filled requisition form. His/her designation also to be mentioned in the appropriate colum 7. At this point the D,R&I voucher (Requisition Form) will get a partial form D,R&I No. 2020-21/ DEPARTMENT NAME/REQUISITION NUMBER/ If any of the above mentioned cells/columns left blank, the Partial Requisition section to fill all relevant columns as ‘FILL ALL CELLS’. 8. Now, user further has to fill the following columns: SL. NO. : Serial number(s) to be written to count the lines of the dem required items. ITEM DESCRIPTION : Item name (nomenclature) to be written DOQ/UOM : Denomination of Quantity/ Unit of Measurement) (to be sele Prepared by Kaushik Dasgupta

OUCHER) FOR ISSUING ITEMS FROM XYZ University STORES. ter at their own department from where they have to allot a requisition number on ment. So user section has to keep those two columns/cells blank. m needs to be written by the user section as per the following format: me for which the requisition is being raised. to write his/her Name in the column of ‘DEMAND INITIATED BY’, also needs d with the name of the Department Head who has the authority to approve the mn. m Number as per the following format: /D, R. Form Number will not get generated and would be kept on notifying the User manded items. Multiple lines may be filled based on the multiple numbers of ected from Drop Down menu), 32 | P a g e

Appendix- VIII (Contd.) QTY DEMANDED : User has to specify the quantity required. PRIORITY : To be selected from Drop Down menu. PURPOSE FOR PROJECTING THE REQUIREMENT : To be selecte INVENTORY BALANCE (IF ANY) : Any quantity of demanded items available with the user section) are in usable conditions [ like used (but office equipment etc.] then the quantity to be mention in the column usable/repairable/scrapped state, then the quantity to be mentioned in ‘U/S need to return the returnable items to the stores before issuing a new/usab and plumbing fittings etc. (other than consumable items). This ‘returning some of the consumable goods too, such as printer cartridge, room/air fresh At this stage, i.e. after filling the column of ‘ INVENTORY BALANCE (IF A demand approver in the appropriate column and further has to carry the same to th A dropbox viz. Requisition (Stores) has been created in the XYZ University intr respect to their own departments in the said dropbox. Now, the filled-up form (w point of time) needs to be copied and pasted in the said ‘department wise’ folde issuance. At the stores, the store keeper will fill the rest relevant columns/cells of the re inventory (in future, based on the returning quantity also). The store keeper will t and finally will obtain a signature of the concerned user whom the items may be is Prepared by Kaushik Dasgupta

ed from Drop Down menu. s, if kept by the User Section needs to be mentioned. If the items (any quantity if re-usable) or new tube lights, fans, any electrical fittings, any plumbing fittings, of ‘NEW/ USABLE’ and if such items are available with user section in un- S’ column. It is to be kept in mind that for maintaining proper inventory level, we ble items (if kept in the user section), such as unserviceable equipment, electrical g’ practice would be emerged in our system very soon and also be applicable for hener container, computer peripherals, broken glassware, Electric Lights etc. ANY)’ , User has to take a print out of the filled form and get it signed by the he XYZ University Stores for issuing the items. ranet (\\\\10.10.15.11\\Common). Users are requested to create their own folders in without approver’s signature, as the digital signature system is not available at this er in the intranet drop box by the user section, before approaching the Stores for equisition form and will issue the items based on the availability of stocks and then allot a final D,R&I number on the DEMAND, RETURN & ISSUE Voucher ssued. 33 | P a g e