01.08.2020

JINDAL ALUMINIUM LIMITED

(Rolling Division)

2nd Amendment to General Procedure dated 20.4.2020

1. Under Part-I 'Procedure for preparation of requisition/indent, approval of OFS etc.', on page-2,

under "Head of Departments" point 'C-General' shall be substituted as under:

SI.

Department

Name of person who will

HOD Name

No.

Name

prepare indent

Stores

Ratish Kumar Chaubey

M. V. Satyanarayana

Civil

S.K. Jain

SS Jarali / Praveen Agarwal

Construction

Development

M.Satesh Kumar

Pushparaja I Rohit/ Venkatesh

Information

Rabindra Behera / Naveen

Binit Kumar

Technology

Mittal

Rajendar Singh/Sandeep

Administration

Pradeep Singhal

Lamba

2. Under Part I "PROCEDURE FOR PREPARATION OF REQUISITION/INDENT, APPROVAL

OF OFS etc." on page 3 second paragraphs shall be substituted as follows:

"No separate hard copy of indents shall be taken for those cases, where all authority

approve indent in ERP system as per procedure and such cases shall be verified and

controlled through ERP (Soft copy). In other cases, one hard copy (Print) shall also

be taken for taking the approvals as per limits for approval of indents and shall be

given to the following persons after proper verification and necessary approvals:

Asst. Manager Purchase (SKM) for local purchase (P1)

First copy purchase

and PM

(Purchase Manager) for outstation purchase

(P2) and for import P. K. Kalra (P3)

Stores Asst.

/Assistant Storekeeper for preparation of

Second Copy to SM

rate analysis for record after getting acknowledgement

from purchaser.

3. Under Part-I "Procedure for preparation of requisition/indent, approval of OFS etc." on page

4, under point No.4 -"Limits for Approval of Indents", sub point No.(a) - 'Revenue items', sub

point No.

(b) 'Capital items and spares' and sub point No.(c) 'Job work', limit and approving

authority shall be substituted as follows:

(a)

SI.

Limit

Approving authority

Stores-in-Charge

+ User department Head

(i)

Up to Rs.25,000/-

(two persons)

Above Rs.25,0001- and

As in

(i) above

+ SKP/AG

+ VP(0)

(ii)

up to Rs.1,00,000/-

persons)

Rs.1,00,000 and

(

(iii)iii)

As iin (ii) above + DS (5 persons)

up to Rs.2,00,000/-

(iv)

Above Rs.2,00,000/-

As in (iii) above + NM (6 persons)

b. Capital items & Spares:

SI.

Limit

Approving Authority

No.

(i)

Upto Rs.25,000/-

SM + Concerned HOD

(2 persons)

Above Rs.25,000/- and up to

As in

(i) above

+ SKP/AG + KS

(ii)

Rs.2,00,000/-

VP(0)/RNS (5 persons)

Above Rs.2,00,000/- and

(iii)

As in (ii) above + DS/NM

(6 persons)

' I

upto Rs.5,00,000/-

As in

(iii) above

+ Vice Chairman &

(iv)

Above Rs.5,00,000/-

Managing Director (VCMD) (7 persons)

c. Job Work:

Job work excludes cases where items are sent out for repair/reconditioning. Items sent

for repair of vehicles, refrigerators, air-conditioners etc. or for rewinding of motors,

testing etc. will not be covered under job work. Job work includes cases where items

are sent out for machining, turning, milling, slotting, shaping, boring, drilling, honing,

fabrication etc. For the purpose of value, it shall include cost of material, if any used by

job work contractors.

SI.

Limit

Approving Authority

No.

(i)

Upto Rs.25,000/-

SM + Concerned HOD (2 persons)

Above Rs.25,000/- and

As mentioned in (i) above + SKP/AG + KS

(ii)

upto Rs.2,00,000/-

+ VP(0)/RNS (5 persons)

As mentioned in

(ii) above

+ DS/NM (6

(iii)

Above Rs.2,00,000/-

persons)

Under Part I "Procedure for preparation of requisition/indent, approval of OFS etc." on page

no 5, point No.(vii) will be substituted as follows:

"vii. Wherever any project, machinery or spares etc. has been approved from VCMD/CMD

and approval copy being attached in indent reference, then such indents need not be

circulated to the next approving authority

(as per matrix given in the procedure). In such

cases, concerned HOD along with stores passing is enough for indent regularisation and

record".

5. Under Part 1 "Procedure for preparation of requisition/indent, approval of OFS etc." on page

7, under point no. "xvii" " Technical Notes and Approval Routing"

(modified as per first

amendment dated 16.05.2020) sub point "Capex Projects" shall be substituted as follows:

Capex Projects:

The initiation of the Capex Project shall be done by Dabaspet development team and

routed through the end user, departmental hierarchy and HOD, DGM(C), GM(A), GM(0),

VP(0) and VCMD. VCMD shall get the documents reviewed by the Capex Committee.

It shall have a summary sheet of the technical capabilities as an Annexured. As a matter of

benchmarking, the final evaluation of the project shall have to achieve 95% of the technical

parameters outlined in the Annexure-I.

Projects initiated because of marketing initiation shall have a document of projected

demand, target customer base, customer consent and clear documentation of quality —

•

stated and implied, product range in terms of thickness, width, probable alloy etc. This

document shall form Annexure-2.

All project papers shall benchmark the Capex and Opex cost and calculation of payback

etc. shall be on TCO

(Total cost of Ownership) model.

Overhead costs like travel

expenses, capitalisation of Interest costs etc. shall also be ensured.

All Capex document shall have routing slip and the approval shall be completed within

days of initiation.

Equipment ordering shall be only initiated after the approval has been received and filed by

the Manager (R&D Technology).

After completion of the project, DGM-IAD will do a detailed comparison of the actual

performance vs. the projected performance on the original Capex project proposal. This

report, he will submit to VCMD directly.

Initiator

HOD

DGM(C)

GM(Admn)

GM(0)

VP(0)

VCMD

Mgr (R&DTech)

(for filing)

Under Part I "PROCEDURE FOR PREPARATION OF REQUISITION/INDENT, APPROVAL

OF OFS etc." on page 8, under point no. "5", 'Preparation And Approval of OFS', sub point

no. "b" 'Revenue items', limit and approving authority shall be substituted as follows:

"b. Limits for approval of OFS (revenue, capital items, spares and canteen, vehicle

repairs, job work, maintenance contracts etc.)

SI.

Limit

Approving Authority

No.

(i)

Up to Rs.25,000/-

Asst. PM + User dept HOD + PM (3 persons)

As above(i)

+ SKP + AG

(for outstation purchases) (5 persons)

Above Rs.25,000/- &

(ii)

up to Rs.1,00,000/-

As per JAL B.F Procedure

(for local

purchases)

Above Rs.1,00,000/- &

(

)

As per (ii) above + VP(0) +DS (7 persons)

up to Rs.2,00,000/-

As per (iii) above + NM (8 persons)

(iv)

Above Rs.2,00,000/-

7. Under Part I "PROCEDURE FOR PREPARATION OF REQUISITION/INDENT, APPROVAL

OF OFS etc." on page 9, under point no. "Note", sub point no. "ix" to be added after sub

point no.

`viii' as follows:

"ix. Purchaser can buy one time use items for value upto Rs 10,000/-, without indent

due to urgency with prior approval of HOD+AG/VP(0). However, all records should

be maintained such as indent, GRN etc. for proper control after receipt of material.

8. Under Part II "Guidelines for Procurement of Store Items", on page no.14, under point no "a"

"Store Requisition/Indent", sub point no. "vi" relating to 'Specific Brand requirement, limit

and approving authority shall be substituted as follows:

Up to Rs.25,000/-

GM(Maintenance)

ii.

Above

Rs.25,000/-to as in {i} above + KS

Rs.2,00,000/-

iii.

Above Rs.2,00,000/-

as in {II} above ÷ VP(0)

9. Under Part II "Guidelines for Procurement of Store Items", on page no.14, under point no

"a" "Store Requisition/Indent", sub point no. "vii" relating to 'Urgent requirement,

limit and approving authority shall be substituted as follows:

Up to Rs.25,000/-

Above Rs.25,000

as in {i} above + VP(0)

Note: For all items above Rs 2,00,000/- indented urgently, a list should be prepared every

month and to be circulated to DS and PJK.

10. Under Part II "Guidelines for Procurement of Store Items", on page no.14, under point no "a"

"Store Requisition/Indent", sub point no. "ix", words "AG/DM/MD" appearing in third line

will be substituted by words "AG/VP(0)NCMD ".

11. Under Part II "Guidelines for Procurement of Store Items", on page no.15, under point no

"a" "Store Requisition/Indent", sub point no. "xiv", words "GM(C)NP/MD" appearing in third

line will be substituted by words "GM(C)NP(0)NCMD ".

12. Under Part II "Guidelines for Procurement of Store Items", on page no.17, under point no "b"

"ABC Analysis", sub point no. "xiv", words "reviewed and" appearing in first line will be

substituted by words "reviewed once in a six months and ".

13. Under Part II "Guidelines for Procurement of Store Items", on page no.17, under point no "b"

"ABC Analysis", sub point no. "xvii",

following sentence will be added as separate

paragraph:

"However, purchase department to confirm the non return of purchased items to supplier,

prior to handing over to Ajay Lodha/Head of disposal team."

14. Under Part-II "Guidelines for Procurement of Store Items", on page No.17, under point

No.(c) - "Issues", sub point (i) shall be substituted as follows:

(i) No item should be issued from stores unless the issue slip for the same is signed as

below. The issue slips will be authorized through ERP as below:

(a)

Issue slip value upto Rs.25,000/-

Concerned Supervisors

(b)

Issue slip value above Rs.25,000/-

As in

(a) above

+ HOD (2

and upto Rs.1.00 lakh

persons)

(c)

Issue slip value above Rs.1.00 lakh

(b)

above

GM(A)NP(0)

•

!I*

15. Under Part II "Guidelines for Procurement of Store Items", on page no.18, under point no "c"

"Issues", sub point no. "iii" to be deleted being duplicacy of sub point no. "v".

16. Under Part II "Guidelines for Procurement of Store Items", on page no.18, under point no "c"

"Issues", sub point no. "iv", following sentences will be added as separate paragraphs:

"If Stores dept is not receiving back old material having value more than Rs.5,000 within

30 days from the date of issue, then Store Manager will circulate a list once in 2 months to

DGM(C) / GM(A) + VP(0) for further action.

Immovable rotation spare item

(ie Work Roll

,Backup roll with choke

, heavy motor,

Container, Caster shell, Big hyd Cylinder, etc) with machine will be updated in ERP Spare

godown Stock and exact location of the item will be mentioned in respect of nearest to

related machine/equipment. However item custodian and the responsibility will be in

account of respective user and SM. SM will ensure to verify the physical stock once in a

quarter."

17. Under Part II "Guidelines for Procurement of Store Items", on page no.19, under point no

"Note", sub point no. "g", following sentences will be added as separate paragraph:

"However all containers of imported raw material should be weighed outside at

weighbridge in addition to weighment on our weighbridge. It should be ensured that the

third party weighbridge is digital and no chance of them manually altering the weight. No

employee of Shipping/Stores is required to go to third party weighbridge to physically

check the weighment in front of them."

18. Under Part II "Guidelines for Procurement of Store Items", on page no.19, under point no.

"Note", sub point no. "j" to be deleted, since it is repletion of sub point no. "iv" of point no. "c"

"Issues" on page 18 .

19. Under Part II "Guidelines for Procurement of Store Items", on page no.19, under point no.

"Note", sub point no. "k"

, words "all type of gases issued by store" appearing in eleventh

line will be substituted by words "all type of gases, rolling oil, diatomaceous powder, FE

powder, Ginol additive issued by store ".

20. Under part-II 'Guidelines for purchase of stores', on page-19, item

(d) 'Discarding of spares

and stores items, sub point No. "i" shall be substituted as under:

(i)

In respect of discarding of spares & stores items, below matrix shall be followed:

SI.

Limit of approval

Approving authority

No.

(a)

Value of spares or stores to be discarded

SM + Dept.Head

- value upto Rs.10,000/- each case

(b)

Value above Rs.10,000/- upto Rs.50,000/-

+ concerned Dept.Head

each case

KS/SS + HG/AG

(c)

Value above Rs.50,000/- each

As in (b) above + VP(0)/KRR

(d)

Vehicle spares upto Rs.3,000/-

K.Sudhakaran(Mechanic at B/F) +

Dy.Mgr./ Manager (Admn) + SKJ

(e)

Vehicle spares above Rs.3,000/-

As in (d) above + AG

(a) Discarded items will be declared by HOD with valid reason like non-repairable/life

over/worn out with computerised Discard Slip. Stores will check and keep in lock and

key.

(b) Items related to serial number must be correlated with purchase history for proper

warranty checking before discarding. Also utilisation period to be verified by Stores, and

recorded in ERP.

discarded in a lot

(with approximate price on kg basis) periodically by user department

and a single discard slip is enough where saleable value is almost 'zero'. This should be

cleared on monthly basis.

(d) Non-purchased items/removed items from machine/in-house made item/MS item etc.

discarded value must be declared by HOD for Stores verification further so disposal

team can consider the same with final sale price. The declared value will be shown as a

separate column in our ERP and will not impact value of stock. It will be used as

guidance for items to be disposed.

(e) Monthly report to be circulated on discarded item with rate above Rs.2,000/- for final

approval of sale.

(f)

Whenever old spare/parts are replaced, DM(Stores)/SM should collect discarded slip of

such old parts while issuing the new parts without any omission and handover the old

parts to Disposal Team, at least once in a month, to be kept under lock for disposal. The

old parts should not be re-issued to user department without obtaining proper approval.

(9)

Whenever Stores Dept. is taking back any approved discard item, they should

categorise each item value-wise and handover to the by-product/disposable team later.

And Disposal Team should also maintain and allow transferring to discard godown in

particular lot only as per item nature while taking under their custody for immediate sale.

(h) The old/dead stock should be reviewed and action should be taken to discard the same

after approval as per Matrix given. Accounts Manager/DGM(C) will check and see that

SM performs accordingly in this respect.

(i)

Before discarding any spares, toolings, dies, components etc., it should be thoroughly

checked by technical people.

(j)

All breakages in stores, the value of which is Rs.500/- or less for each item must be

shown to DGM(C) or in his absence Accounts Manager for suitable action and then

adjustment should be made in the respective item's stock. In case the value of breakage

is more than Rs.500/- in respect of each item, approval of HG/AG should be taken, who

will take suitable action on the concerned person. List of such breakages/loss should be

circulated by SM to DGM(C)/AG on monthly basis.

(k) If any item is not likely to be used due to change in design or change in requirement,

such items should be discarded with the approval of concerned HOD + DGM(C) +GM(A)

+ VP(0), who will instruct the Purchaser to see the replacement or buyback can be done

with best pricing.

(I)

The Departmental Heads will send slip to SM clearly mentioning the defect and reason

for discarding the material along with full details, i.e. Code & Description, PriceNalue,

Warranty Status, Issue Date etc. SM will keep the discarded material separately. At the

end of the month SM will sort out the material according to the approval to be obtained

and get the approval after inspection of the material. The details o such approval will be

entered in ERP and will be signed by the approving person. Apart from the above,

DGM(C)/SKJ will also verify the discarded item with individual approval and signed slips

and sign the report. Report will be maintained only for items where the value is above

Rs,2,000/- each. AL will receive the same and keep in discard/scrap godown.

21. Under Part II "Guidelines for Procurement of Store Items", on page no.20, under point no "d"

"Discarding of Spares & Stores Items", sub point no. "iii", words " note book" appearing in

fifth line will be substituted by words "ERP system and system report".

22. Under Part II "Guidelines for Procurement of Store Items", on page no.20, under point no "d"

"Discarding of Spares & Stores Items", sub point no. "vi", Name of Report, Frequency and

To be circulated shall be substituted as follows:

"vi. Following reports are to be circulated by store as per the chart give below:

Name of Report

Frequency

To be circulated to

Rejected material lying in

Fortnightly

Purchaser + SKJ + SKP + AG

stores

Pending indent list

Monthly

Purchaser + SKP + AG

Pending indent list - imports Monthly

Purchaser + SKP + AG

Dead stock list — (Above Rs

Quarterly:

M. Sathesh

+ ALG

+ KS

1,000/-)

April, July,

+ SKP

+ AG + VP(0)+PJK —

items purchased but not

For Rolling.

used in last one year

October,

M. Sathesh

+ SS

+ RNS

January

SKP + AG + VP(0)+PJK — For

Extrusion.

23. Under Part II "Guidelines for Procurement of Store Items", on page no.21, under point no "e"

"Standards for Acceptance of material", sub point no. "vi", shall be substituted as follows:

"vi

Green Pet Strap(13 mm): This is sold in rolls, each roll measuring 2500 mtrs. Our

requirement is of Green Pet strap of 13 MM width x 0.56 mm thickness on 8" ID

Paper Core. Average net weight of

2500 mtrs roll is

22 kg. We may accept

variation in weight ±5%. Our purchase order should mention thickness, length and

weight. Stores should check length, thickness and weight.

Green Pet Strap(19 mm): This is sold in rolls, each roll measuring

670 mtrs. Our

requirement is of Green Pet strap of 19 MM width x

1.27 mm thickness on

16'' ID

Paper Core. Average net weight of 670 mtrs roll is 20 kg. We may accept variation

in weight ±5%. Our purchase order should mention thickness, length and weight.

Stores should check length, thickness and weight.

24. Under Part II "Guidelines for Procurement of Store Items", on page no.21, under point no "f"

"Guidelines for Procurement of Wooden Planks", shall be substituted as follows:

Guidelines for procurement of Wooden Planks for Packing :

01.

JAL-RMD is procuring following 2 Types of Wooden Plank and Runner for making

wood Boxes and Pallets for Packing Aluminum Rolled Product and Extrusion:

a) Jungle Wood (For Use in Domestic Supply)

b) Seasoned Pine Wood/Silver Oak Wood (For use in Export Supply)

02.

Specification of Jungle Wood

For Plank

Details

Length

Width

Thickness

As per

Value

Indent

6" to 10"

19 mm

Tolerance

NIL

3 mm

Moisture Content

8-22%

For Runner(Rectangular Size

Details

Length

Width

Thickness

As per

per

Value

Indent

Tolerance

NIL

3 mm

Moisture Content

8-22%

03.

Specification of Pine Wood

Specification of Seasoned Pine Wood

For Plank

Details

Length

Width

Thickness

per

Value

Indent

Tolerance

NIL

3 mm

Moisture Content

8-22%

Fungus

Fungus Free

For Runner(Rectangular Size)

Details

Length

Width

Thickness

per

Value

Indent

Tolerance

NIL

3 mm

Moisture Content

8-22%

Fungus

Fungus Free

04.

After receipt of Wooden Plank and Runner(Both Jungle Wood and Pine Wood),store

should check thickness, width, length and Moisture in case of Pine wood will be

checked by QA Lab. Store Manager will ensure that material received is strictly as

per specification given in Indent. Quantity received to be calculated in CFT. In case

of any shortage with respect to Invoice/Challan should be clearly mentioned on Bill

by store and informed to Purchase Dept by mail within 2 Days of receipt of material

and account should Debit the corresponding shortage amount .In case of any

variation in size and quality, material should be rejected and returned to supplier on

their cost as soon as possible.

05.

Before technically approving the bill, Packing department should check for the

quality of the wooden planks. Specially in the case of Pine wood / Silver Oak wdod

planks, packing dept should ensure that same is seasoned and free from any

fungus and termite.

06.

In case of Jungle wood planks, Sandeep Agarwal should give a tentative monthly

procurement plan through Stores to Purchase dept by third week of previous month,

which will be based on last

3 months average consumption and considering any

specific future requirements. In case of excess requirement, packing dept should

inform store and purchase at least

15 days in advance, so that Purchase dept can

arrange material.

07.

Requirement of Pine wood / Silver Oak wood planks is to projected by Packing

department minimum four weeks ahead of requirement, since seasoning is involved.

June to September being rainy season, extra quantity should be purchased during

April & May, so that there is no shortage of wooden planks during rainy season.

08.

Cutting Tolerance of (-) 3 mm is allowed in thickness of Planks and (-) 3 mm in

Thickness and Width for Runner.

09.

Moisture Content Acceptability level will be 8-22% and not exceeding 22% for

Pine Wood.

10.

User Dept/Store dept. shall give advance information, well in time for any extra

production month requirement.

11.

User Dept/Store dept will try to keep sizes of wood at minimum level to avoid

accumulation of inventory.

25. Under Part IV "Guidelines for Accounting", on page No.33, under point No.(C) "Bill Passing".

sub point No.(xxxii) shall be substituted as follows:

"xxxii. Bills in cases where quantity received is more than ordered quantity, i.e. variation up

5% may be passed without approval but approval of indenting department is a must.

However, if variation is more than 5%, approval of DGM(C) + GM(A) is a must through soft

copy in ERP by Accounts Department."

26. Under Part XIII "Procedure for Construction Works", on page No.87, under point No

(iv)"Guidelines for Construction Work Given On Contract

(Including for Institutions)", sub

point No.(b) shall be substituted as follows:

"b. Construction supervisor shall prepare indent for different items required and take

approval as follows:

SI.No.

Limit

Approving Authority

(a)

Up to Rs.10,000/-

SSJ / Praveen Agarwal

(b)

Above Rs.10,000/- and up to

As in (a) above + SKJ / AG + AD

Rs.1,50,000/-

(c)

Above Rs.1,50,0001-

As in

(b) above

+ SKJ/SKP/AG +

BDG / KRR

AL/AD/SKJ will thereafter call for quotations from contractors (minimum three) for supply

of material, whereas for giving work on contract, AD/DS will call for quotation."

27. Under Part XIII "Procedure for Construction Work", on page no.90, under point no "v"

"Receipt and Issue of Stores Materials", sub point no. "b", words " challans" appearing in

first line will be substituted by words "Gate Pass".

28. Under Part XIII "Procedure for Construction Work", on page no.91, under point no "v"

"Receipt and Issue of Stores Materials", sub point no. "i", words "SSJ/SKJ/SKP/AG"

appearing in second line will be substituted by words "SSJ+SKJ+SKP+AG".

29. Under Part XIV, "Perks and Facilities Provided for Staff and Worker Families Residing in

Quarters At D/F Colony:, on page no.96, under point no "iv" "relating to providing car

facility", word "B/F" appearing in sixth line will be substituted by word "D/F".

30.

(i) In this procedure

, at all places word "GM" should be replaced with word "GM(A)"

(ii) On page 9Funder the heading "Main abbreviations used'', words "GM: General

Manager"should be replaced with words "GM(A): General Manager (Adminstration)."

31. (i) In this procedure

, at all places word "VP" should be replaced with word "VP(0)"

(ii) On page 9g under the heading "Main abbreviations used", words "VP: "Vice President"

should be replaced with words "VP(0): Vice President (Operations).

32.

(i) In this procedure

, at all places word "MD" should be replaced with word "VCMD"

(ii) On page 9(g under the heading "Main abbreviations used", words "MD: "Managing

Director" should be replaced with words "VCMD: Vice Chairman & Managing Director."

Ashok Kumar Agarwal

DGM - Finance & Taxation