Purpose: Prepared By: - Mustafa Khan & Co. Controlled By:-Effective Date

TRANSFOPOWER Industries Private Limited Standard Operating Procedure- Import of Raw Material-Meter Division
Prepared By: - Mustafa Khan & Co. (SOP Division) Controlled By :- Effective Date :-
Purpose
 To regulate procurement process.
 To select the suppliers on their ability to meet the company’s requirements.
 To establish management’s control on procurement process.
 To keep records of selected suppliers to ensure effectiveness of quality control

system.
 To ensure that goods and services are ordered at best available terms.
 To ensure that all purchase orders for goods and services are properly
authorized.
 To ensure that purchase orders clearly define the product ordered.
 To ensure that purchased product confirms the specified requirements.
 To ensure that invoices are checked against authorized orders.
 To ensure that trade creditors should be properly recorded in accounting

records.
 To point out any difference between accounting records and procurement

department records on monthly basis.
 To define the process Owner for each activates and sub process
Scope
This manual should be applied over the following areas,
 Import of raw material

Below are Key component of this document
 Policies and procedures
 Diagrammatic representation of processes
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 Duties and responsibilities of staff

 Proposed formats
1 Purchase Requisition process
1.1.1 The Process “Owner” of the purchase requisition is “Assistant Manager
Planning” (Mr. Zahid).
1.1.2 Assistant Manager Planning would initiate the process of purchase
requisition on the basis of master plan, Letter of intent, purchase order or
Tender from the clients or as per higher management instruction.
1.1.3 Assistant Manager Planning would prepare purchase requisition Refer to
Annexure T-F-001 for format of purchase requisition form.
1.1.4 Assistant Manager Planning would check and verify the stock in hand report
duly signed by Manager Store and production manager.
1.1.5 Manager Import would share the Pre order costing sheet with the Manager
Accounts/CFO refer as Pre Order Costing Sheet Annexure T-F-02.
1.1.6 Assistant Manager Planning would coordinate with the Manager MPPC (Mr.
Nouman Badri) and sign the purchase requisition and send the complete
documents to COO- Meter or Manager Import Division for final approval.
1.1.7 After getting the approval from the Manager Import-COO-Meter Division,
Manager MPPC would prepare the formal purchase requisition from the
system as requested through form Annexure T-F-001.
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1.1.8 After preparing the Purchase requisition Manager MPCC Planning would
inform or send the copy to
• Finance department
• Manager Store
1.1.9 The finance department would make necessary arrangement of funds upon
the receiving of purchase requisition and update the Purchase tracking sheet
refer as Annexure T-F-014.
1.1.10 In case of any funding concentration Finance department would inform the
Manager import to stop OR delay the process until the further instruction.
2 Supplier Selection
2.1.1 The Process ‘’Owner’’ of Supplier selection is “Manager import”.
2.1.2 Manager Import would conduct vendor evaluation / selection activity as
referred in “Vendor Development Manual”.
2.1.3 Assistant Manager Import will coordinate with the prospective suppliers as
per instructions by Manager Import or COO-Meter.
2.1.4 Assistant Manager Import shall have a list and catalogues of well-reputed
suppliers.
2.2 Quotation
2.2.1 Manager import would call quotations from selected suppliers in RFQ refer as
Annexure T-F-002A on the basis of approved purchase requisition.
2.2.2 Manager Import would negotiate with the supplier.
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2.2.3 The major emphasis should be to get the best price, quality and good delivery
and payment terms.
2.2.4 Manager Import would prepare and recommend the potential supplier with
the reasoning and justification on the comparative statement refer to
Annexure T-F-003 for format of comparative statement of quotations.
2.2.5 Manager Import would attach quotations with comparative statement of
quotations for approval and sign off with Manager Import and further
approval of COO-Meter or Directors/BOD.
3 Purchase Order process
3.1.1 The Process “Owner” of Purchase Order process is “Manager MPPC”.
3.1.2 Assistant Manager Import would initiate the process by obtaining the
“Performa invoice” after getting the approval of final supplier refer as
Annexure T-F-003
3.2 Performa Invoice
3.2.1 Assistant Manager MPCC prepare the Purchase order refer as Annexure T-F-
004, as per approval of COO-Meter.
3.2.2 Manager Import would inform and share the Purchase Order copy with.
 Assistant Manager Import
 Finance Department
 Manager Store
3.2.3 Deputy Manager Finance would update the purchase Order Tracking sheet
refer as Annexure T-F-14.
3.2.4 Assistant Manager Import would share the purchase order with the supplier
and ask the supplier to share Performa invoice (PI).
3.2.5 Performa invoice would specify:
 Performa Invoice #
 Date
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 Supplier name & address

 Terms of delivery and destination
 H.S Code
 Bank Details for Letter of credit
 Terms of payment
 Agreed prices
 Container Free Days
 Other description
4 Letter of Credit
4.1 Letter of Credit (LC) Opening
4.1.1 Assistant Manager import would send LC Opening Request refer as Annexure
T-F-13 to the Deputy Manager Finance with a c.c to CFO (Finance
Department) along with a copy of Purchase Order & Performa Invoice, duly
approved by COO Meter.
4.1.2 Based upon the LC Opening Request, Deputy Manager Finance would
Coordinate with the bank and arrange further documents to open the LC. The
following documents would be arranged by Deputy Manager Finance:
 LC Application form
 Performa invoice
 Packing list
 EIF submission Form ( WeBoc)
 Insurance
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4.1.3 Assistant Manager Finance would perform the following tasks:
 Forward above documents to bank for Letter of Credit Opening.
 Obtain Draft Letter of Credit from the bank & seek Supplier consent
through the assistant manager Import
4.1.4 The Letter of Credit would be opened by the finance department after the
supplier go ahead and the Letter of Credit would be forwarded to assistant
manager import for record.
4.1.5 Once LC is opened, Assistant Finance Manger would generate the LC
code/expense ledger in ERP and book all the expenses under the specific LC.
4.1.6 Manager import would forward the relevant information to the Supplier and
enter all relevant information in the Tracking & TAT form for each purchase
order as Annexure T-F-11.
4.1.7 Main objective of Tracking & TAT form is to monitor the Import process as
per prescribed days and any delay can be monitor and properly accounted for
with the relevant department.
4.1.8 Manager import would send/email the Tracking & TAT form to the Finance
department.
4.1.9 On the receiving of Tracking & TAT form Finance department would prepare
the Purchase order tracking form refer as Annexure T-F-14,
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4.1.10 The Main objective of this form is that Finance department would manage the
funds so that all purchase order LC payment/ duties / Clearing charges can be
paid as per Tracking & TAT form.
5 Letter of Credit Document’s tracking

5.1.1 Once the Shipment is dispatched by the supplier, supplier would send the
following documents to M/s Transfopower Industries Pvt. Limited
corresponding bank.
 Commercial Invoice
 Packing List
 Bill of Lading
5.1.2 In case of Letter of credit at sight or usance, Deputy Manager Finance would
update the Purchase order tracking sheet accordingly.
5.1.3 Supplier would share the courier tracking number of shipping documents
with the Manager import.
5.1.4 Manager import would track the documents and update the Tracking & Turn
Around Time sheet refer as Annexure T-F-11 and share the sheet with the
Deputy Manager Finance for timely payment and tracking.
5.1.5 Deputy Manager Finance would update their Purchase Order Tracking Sheet
refer as Annexure T-F-14 and arrange the funds for Payment of letter of
credit or as per the Letter of credit terms.
5.1.6 Once payment is made, Deputy Manager Finance would send the documents
to Manager Import.
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5.1.7 Assistant Manager Import is the Process Owner to Send the Documents to
clearing Agent
5.1.8 Assistant Manager Import would send the documents to the selected clearing
agent which would be properly endorsed by the bank.
5.1.9 Upon receiving of documents, clearing agent to start/ready the clearance
process.
5.1.10 In case of any delay of payment, Deputy Manage Finance would inform the
Manager Import to reschedule or update the Tracking & Turnaround Time
after the approval of CFO.
6 Vessel Tracking & IGM Filling
6.1.1 Assistant Manager Import would coordinate with the clearing agent on the
vessel arrival and berthing as per scheduled.
6.1.2 Assistant Manager Import would make sure the Import General Manifest
(IGM) would be submitted so that clearing process can be initiated.
6.1.3 Below is the List of documents for IGM filling:
 Shipper Details
 Consignee Details
 Number of Packages
 Kind of Packages
 Description of Goods
 Air Way Bill or Bill of Lading
 Flight or Vessel Date etc.

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7 Shipment Clearance
7.1 Taxes & Duties as per Goods Declaration (GD)
7.1.1 Manager Import would make sure the all the Import is done under the most
appropriate/relevant H.S code and as per current market and competitive
norms.
7.1.2 Once the Shipping documents received by the clearing agent Assistant
Manager import would coordinate with the Deputy Manager Finance to
arrange the duties as per the prescribed duty structure form refer as
Annexure T-F-015A
7.1.3 Assistant Manager Import would confirm that all the Custom Duty should be
calculated as per the Custom Duty chart refer as Annexure T-F-15 –A or as
per historic data.
7.1.4 In case of new item import all the duties should be as per H.S code defined in
WEBOC and would update the Annexure T-F-15-A.
7.1.5 Any duty structure change should be informed to Finance department and
proper approval would be required by Manager Import in writing.
8 Clearing Charges
8.1.1 All the clearing charges other than the duties would be well
negotiated/confirmed by the Manager import.
8.1.2 Assistant Manager Import would distinguish between the controllable and Un
controllable charges with reference to clearing charges and take proper
measures.
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8.1.3 Any other Misc. or unexpected charges would require proper sign off by
Manager Import and Deputy Manager Finance.
9 Demurrages Charges
9.1.1 Manager import / Deputy Manager Finance are the Process of Owner for the
demurrages charges.
9.1.2 Manager import would issue a pre Alert Demurrages note to Deputy Manager
Finance with reasoning and remarks refer as Annexure T-F-21-A
9.1.3 Manager Import and Deputy Manager Finance would write the demurrages
charges justification memo sheet to inform the Demurrages charges with the
reasoning and remarks.
9.1.4 Any demurrages charges incurred due to late duty payments, filling , quota
issue etc. would be signed and approved by with proper remarks and
reasoning refer as Annexure T-F-21.
9.1.5 Manager accounts would update the LC closing & Clearing charges bill check
list refer as Annexure T-F-20 and would submit to Deputy Finance Manager
for sign off.
10 Transportation Charges
10.1 Bilty Charges -Port to Destination

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10.1.1 The process “Owner” of Bilty charges is “Manager Operation”. (Mr. Anwar)
10.1.2 On the clearance of shipment Assistant Manager Import would get the Quotes
from the logistics company and forward to Manager Import or COO-Meter for
the approval as per prescribed format refer as Annexure T-F-15.
10.1.3 Approved logistics partner assessment is would assessed on quarterly basis.
10.1.4 Approved logistic company quotation would be forwarded to Accounts
department for the record or payment purpose.
10.1.5 Assistant Manager Import would update the Transport Register form for
comparison and better negotiation in future import.
11 Costing Verification Sheet
11.1 The Process “Owner” of collecting bills is Manager Import.

11.2 Manager Accounts would collect the all clearing bills from the Assistant
Manager Import and prepare the Costing verification sheet with the Preorder
Costing sheet refer as Annexure T-F-02 along with historic costing sheet refer
as Annexure T-F-012 & 1 and share the Comparison sheets with the Manager
Import for the approval.
11.3 The costing verification sheet would serve the following purpose!
11.4 Taxes and duty rates are accurate
11.5 Comparing current and historic Taxes and Duty paid for accuracy
11.6 Clearing charges are paid accurately
11.7 Total costing Per Unit/KG/MT cost is as per the standard costing
11.8 Any variance in comparison costing sheet or un-receipted bills should be
mentioned/noted separately and would be approved by the Manager import.
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12 Goods/Shipment Receipt Process
12.1 Assistant Manager Import would be responsible for delivery of goods to the
factory or third party destination.
12.2 In Case of shipment directly diverted to other destination or third party for
processing, Assistant Manager Import would inform/email the concerned
person.
12.3 Assistant Manager Import would send the Packing list or quantity of
shipment to third party and would make sure that once the shipment is
received third parity would notify and confirm the quantity as per packing list
or informed quantity.
12.4 Assistant Manager Import would maintain the log of Third Party deliveries
until shipment would receive back after the processing.
12.5 Once shipment would handover or reached in the factory premises of M/s
Transfopower Private Limited, Assistant Manager import would compare the
actual quantity import Vs Actual quantity received to Third party for
reconciliation.
12.6 Gate Inward Pass
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12.6.1 Assistant Manager Import would inform Gate Inward Pass in-charge as the
shipment cleared from the port or moved from Third party along with the
below documents and information!
 Bilty Number
 Payment Terms
 Details of Goods
 Packing List
 Expected Date of Arrival
 No of Container/Packages
12.6.2 Once the shipment received in the premises or Factory, Gatekeeper shall
prepare the “Daily Purchasing & IGP Record Register” which include the
below information:
 Date
 Vehicle Number
 Name of Driver or Supplier
 Contact Number and Address
 Vehicle IN time
 Quantity (in Measures)
 Item Details
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12.6.2..1 Gate InWard Pass in-charge would inform the Assistant Manager Import
that goods/shipment is received and internal control process has been
started.
12.6.3 Gate Inward Pass in-charge send the shipment to Store department along
with the details of shipment.
12.6.4 Upon receiving of Goods/Shipments, Store in-charge would count and inspect
the goods as per the Packing list provided by the Gate Inward Pass in-charge.
12.6.5 After Counting the Goods/Shipments store in-charge would inform Gate
inward pass in-charge to prepare the “Inward Gate Pass”.
12.7 Goods Inspection Report
12.7.1 Store in-charge would send sample units of goods/shipment to Lab for
inspection.
12.7.2 Lab Supervisor would analysis the Sample units and prepare test result sheet
refer as Annexure T-F-007
12.7.3 Lab Supervisor would send the sheet and send it to Assistant Manager Quality
Control for approval and send the report to Store
12.7.4 Store Officer would identifies and separates passed/rejected material on the
basis of lab tests remarks.
12.7.5 Store in-charge would update his Stock register
12.7.6 Store in-charge would inform the Gate Inward for GRN.
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12.8 Goods Receipt Note ( GRN )
12.8.1 Store in-charge would prepare the Goods Receipt Note (GRN) verifying
Purchase Order, quantity and its rate Refer as Annexure T-F-008 and send
the GRN copies to
 Assistant Manager Import
 Manager Planning
 Accounts and Finance Department
12.8.2 Store in-charge would prepare / Update the Stock Register
12.8.3 Store in-charge would place goods on respective racks and update bin cards
12.8.4 Commercial/import manager would update purchase order register
accordingly.
12.8.5 Accounts department would update the Purchase Order tracking form.
13 Purchase Return
13.1 Manager Import would be the Process Owner of Purchase return process.
13.2 Manager Import would add “Rejection of goods” note and would be written
into contract with the supplier.
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13.3 Goods Inspection Report would show the reasons and quantity of rejected
material.
13.4 Store in-charge would prepare purchase return note in quadruplicate.
 Copy A Accounts & finance department
 Copy B Manager Import
 Copy C Store
13.5 Refer to Annexure T-F-010 for format of purchases return note.
13.6 Store in-charge would separate the rejected stock and inform Manager
Import.
13.7 Manager Import would file all the communications in respective supplier file.
13.8 Manager Import would inform supplier in writing for rejected goods and any
cost incurred by company.
13.9 Manager import would contact supplier for future action or supply of rejected
good.
13.10 Rejected Goods resale or return decision would approved by COO-
Transformer.
14 Reconciliation with the Supplier
14.1 On every signoff of Purchase Order Tracking sheet Finance department would
reconcile the supplier account.

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14.2 In case of Sale Return Manager import would reconcile the account and send
the copy of email or account ledger to Finance department for recording
purpose.
15 Reconciliation with the clearing agent
15.1 Finance department would close the Purchase Order Tracking and would
reconcile the Clearing agent bills in writing.
15.2 Any delay or excess days against the import of shipment (as per prescribed
format), on the part of clearing agent would be informed to clearing agent in
writing by the finance department.
16 Reporting to COO/BOD
16.1 Manager import would share the weekly import Dash board sheet with the
COO-Transformer and board of directors refer as Annexure T-F-16.
17 Duties and Responsibilities
17.1 Assistant Manager Planning
17.1.1 To plan, organize and control all activities reference to Production and
requirement of import of raw material.
17.1.2 To create active liaison with other departments to control flow of documents
within organization
17.1.3 To ensure that management policies and plans are implemented effectively
P a g e 17 | 19
17.2 Manager & Assistant Manager Import
17.2.1 To plan, organize and control all activities related to import of raw material.
17.2.2 To create active liaison with other departments to control flow of documents
within organization
17.2.3 To ensure that management policies and plans are implemented effectively
17.2.4 To ensure that all the import is done under the Allowed H.S Code and as per
the under the law.
17.2.5 To maintain files and records of approved supplier as per procedure
described in “Vendor Development Manual”.
17.2.6 Maintain all files pertaining to import.
17.2.7 To maintain and update the forms and formats.
17.3 Deputy Manager Finance
17.3.1 Preparation of L.C documents and communication with banks regarding
procurement.
17.3.2 To create active liaison with import department for import procurement
functions.
17.3.3 Responsible for clearance of documents from Bank and onward submission to
import department.
P a g e 18 | 19
17.3.4 Responsible to provided pay orders/payments of taxes & duties and payment to
clearing agents.
17.3.5 Responsible to collect all the vetted clearing bills from import department
17.3.6 Responsible to prepare the LC costing sheet along with the comparison with the
previous import and pre-Order costing
17.3.7 Responsible to update and book the all transaction of banks, supplier, clearing
agent and transporter.
17.3.8 Responsible to update and reconcile and the ledgers of supplier, clearing agent
and transporter.
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TRANSFOPOWER Industries Private Limited Standard Operating Procedure- Import of Raw Material-Meter Division

 To select the suppliers on their ability to meet the company’s requirements.

 To establish management’s control on procurement process.

 To keep records of selected suppliers to ensure effectiveness of quality control

 To ensure that purchase orders clearly define the product ordered.

 To ensure that purchased product confirms the specified requirements.

 To ensure that invoices are checked against authorized orders.

 To ensure that trade creditors should be properly recorded in accounting

 To point out any difference between accounting records and procurement

 Import of raw material

 Duties and responsibilities of staff

1 Purchase Requisition process

1.1.1 The Process “Owner” of the purchase requisition is “Assistant Manager

Planning” (Mr. Zahid).

1.1.2 Assistant Manager Planning would initiate the process of purchase

requisition on the basis of master plan, Letter of intent, purchase order or

Tender from the clients or as per higher management instruction.

1.1.3 Assistant Manager Planning would prepare purchase requisition Refer to

Annexure T-F-001 for format of purchase requisition form.

duly signed by Manager Store and production manager.

Accounts/CFO refer as Pre Order Costing Sheet Annexure T-F-02.

documents to COO- Meter or Manager Import Division for final approval.

system as requested through form Annexure T-F-001.

inform or send the copy to

refer as Annexure T-F-014.

 Supplier name & address

4.1 Letter of Credit (LC) Opening

T-F-13 to the Deputy Manager Finance with a c.c to CFO (Finance

approved by COO Meter.

following documents would be arranged by Deputy Manager Finance:

 EIF submission Form ( WeBoc)

4.1.3 Assistant Manager Finance would perform the following tasks:

 Forward above documents to bank for Letter of Credit Opening.

through the assistant manager Import

supplier go ahead and the Letter of Credit would be forwarded to assistant

manager import for record.

4.1.5 Once LC is opened, Assistant Finance Manger would generate the LC

order as Annexure T-F-11.

with the relevant department.

the Purchase order tracking form refer as Annexure T-F-14,

paid as per Tracking & TAT form.

5 Letter of Credit Document’s tracking

6 Vessel Tracking & IGM Filling

vessel arrival and berthing as per scheduled.

(IGM) would be submitted so that clearing process can be initiated.

6.1.3 Below is the List of documents for IGM filling:

 Air Way Bill or Bill of Lading

 Flight or Vessel Date etc.

Finance with reasoning and remarks refer as Annexure T-F-21-A

reasoning and remarks.

reasoning refer as Annexure T-F-21.

for sign off.

10.1 Bilty Charges -Port to Destination

11 Costing Verification Sheet

11.1 The Process “Owner” of collecting bills is Manager Import.

12 Goods/Shipment Receipt Process

factory or third party destination.

processing, Assistant Manager Import would inform/email the concerned