16-05-2020

JINDAL ALUMINIUM LIMITED

(Rolling Division)

First Amendment to General Procedure dated, 20-04-2020

1. Under Part I “PROCEDURE FOR PREPARATION OF REQUISITION/INDENT, APPROVAL

OF OFS etc.” on page 5, point no. “x” dealing with “ items approved by MD/CMD” will be

deleted.

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

OF OFS etc.” on page 7, under point no. “xv”, sub point no. “h” , words “para (vi) (a) to(f)”

appearing in first line shall be substituted with words “para (xv) (a) to (f)”.

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

OF OFS etc.” on page 7, after point no. “xvi” followings to be added as point no. “xvii” as

follows :

“xvii : Technical Notes and Approval Routing:

The document covers both the Divisions at Dabaspet Factory namely extrusion and rolled

products and covers both improvement projects and Capex projects.

All approvals sent must be clearly marked “Improvement Project” or “Capex Project” by the

initiator.

Improvement Projects:

All Improvement Projects shall be initiated by the HOD of the rank of Dy.Manager or

above and routed through the departmental hierarchy and through the GM(O) &

VP(O). Any project not requiring more than Rs.50,000/-, subject to maximum of 5

such projects per month shall be cleared at the unit level. It is pertinent to maintain a

log book of improvement projects by Manager (R&D Technology).

Any project requiring more than Rs.50,000/- per project shall also be routed through

the MD and on approval will also be recorded by Manager (R&D Technology).

Any projects that are evaluated as high potential and that requires more than Rs.5

lakhs of budgetary allocation shall be first presented for in principle approval by the

MD. MD shall get the project proposal reviewed by a team of technical experts at

his discretion and give consent or reject based on the feedback and discussions. On

acceptance, project detailing shall be done and only projects having net cash flow

positive within three months shall be accepted.

Mgr (R&D

Initiator

HOD

GM(O)

VP(O)

Tech)

(for filing)

After completion of projects above Rs.50,000/-, IAD (Tech.Audit) will do an assessment on

the intended vs. accrued benefits. This report will be circulated to VP (O) and MD.

Capex Projects:

The routing of all Capex Projects shall be done in-house at Dabaspet Factory and shall be

routed through the technical head nominated by MD on rotation basis (Mr.Ashok Bhatia for

calendar year 2020). 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(Admn), GM(O), VP(O), Tech Head (JAL-B/F) and MD. The MD shall get the

documents reviewed by the Capex Committee.

It shall have a summary sheet of the technical capabilities as an Annexure-I. 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 15

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 MD directly.

Initiator

HOD

DGM(C)

GM(Admn)

GM(O)

VP(O)

Tech.Head

(JAL-B/F)

Mgr (R&DTech)

(for filing)

4. Under Part I “PROCEDURE FOR PREPARATION OF REQUISITION/INDENT, APPROVAL

OF OFS etc.” on page no 7, point no. “d”, “Canteen, vehicles, spares and other consumables,

stationery & welfare”, approving authority shall be substituted as follows:

“ d. Canteen, vehicles, spares and other consumables, stationery & welfare:

Sl.

Limit

Approving authority

No.

(i)

Upto Rs.5,000/-

Deputy Mgr (Admn) (one person)

(ii)

Above Rs.5,000/- and

As above + SKJ+SKP+AG

Up to 1,00,000/-

(4 persons)

(iii)

Above Rs.1,00,000/- and

As in (ii) above + NM (5 persons)

above

Under Part II “Guidelines for Procurement of Store Items”, on page no. 15, under point no “a”

“Store Requisition/Indent” ,after point no. “xviii” followings to be added as point no. “xix” as

follows :

“xix Guideline for procuring Raw material at DF

Categories of Raw Materials:

a) Primary Raw materials b) Secondary Ingots and Master Alloy C) Imported Scrap.

PPC will plan for foundry production in advance for coming month as per order after

discussing with VP(O) and Mr. Anil CV and send the same to DGM(C) by 28^th of every

month for procuring the raw material through VP(C) except secondary ingot.

VP(C) shall arrange the ingot as per pattern of daily consumption given by user instead

of arranging more material at a time. He should also monitor the price fluctuation if any.

DGM(C) will inform to DS for procuring Secondary ingot as per requirement. Secondary

ingot will be procured only after getting clearance from user regarding chemical

composition. DS will put up individual approved rates for approval to MD.

DS shall try to procure the secondary ingot latest by 22th of every month so that same

can be used by end of the month. He should try to procure the same from different

suppliers which will help to avoid any shortage and will diversify the company’s supplier

base.

We should aim to keep maximum 5 days inventory of primary raw material at a time

which will help to control the inventory also.

We should try to produce master alloy ingot at DF itself, however same can be get from

BF also if require more quantity after discussion with foundry in-charge/VP(C) at BF.

6. Under Part VI “Sale of RMD Products and Extrusions”, on page no. 53, under point no. “xiv”

“Pricing” , after sub point no. “f” followings to be added as point no. “g” as follows :

“ g. Monthly Quantity discount/ Special discount statement will be prepared and verified by

Shipping department and will be circulated to IAD, DGM(C)and GM for their approval.”

7. Under Part VIII “Guidelines for Admin Dept.”, on page no 60, words “SKP/AG/AD/NM”

appearing in third line of first paragraph will be substituted by words “SKJ/AG/AD/NM”.

8. Under Part VIII “Guidelines for Admin Dept.”, on page no 61,point “B” “Vehicles”, sub point no.

“i”, words “AG/AD/NM” appearing in last line will be substituted by words “SKJ/AG/NM”.

Under Part II “Guidelines for Procurement of Store Items”, on page no.20, point “d” “Discarding

of Spares & Stores Items”, sub point no “vi”, under name of persons to whom ‘Report’ “Dead

stock list” will be circulated, words presently appearing as “M. Sathesh + SS + RKS + SKP +

AG + VP(O) - For Extrusion” will be substituted with words “M. Sathesh + SS + RNS + SKP +

AG + VP(O) - For Extrusion”.

10. Under Part VI “Sale of RMD Products and Extrusions”, on page no 54,point “xv” , “Payment

terms/Despatches”, sub point no.“g”, words “@12% PA + Re. 1.00” appearing in fifth line will

be substituted by words “@12% PA + Re. 1.00 per Kg”.

11. Under Part X “ Guidelines for Audit & Probe Department”, on page no 72, point “A” , “Internal

Audit Department”, sub point no. “xii”, words “financial books Taxes, Company Law” appearing

in first line will be substituted by words “financial books and Income Tax, GST, Company Law

& Custom Duty”.

12. Under Part X “ Guidelines for Audit & Probe Department”, on page no 73, point “A” , “Internal

Audit Department”, sub point no. “xvii (f)”, shall be substituted as follows:

“ (f) All other areas, not covered earlier in, should also be covered.”

13. Under Part XII “Miscellaneous”, on page no 84, point “f” , “General”, sub point no. “iv”, words

“(which must be given to MD/CMD) appearing in fifth line will be deleted.

(Ashok Kumar Agrawal)

DGM - Finance &Taxation