IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL

PURCHASE DEPARTMENT
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/CON, Rev. 01 Date: 07.06.2012 Page 2 of 14

CONTENTS

Status Identification
Sl No Name of Document Page No
Rev No Date

1.0 Contents 01 07.06.2012 IVRCL/OM/PUR/CON 2

2.0 Amendment Record 01 07.06.2012 IVRCL/OM/PUR/AMD 3

3.0 Purchase Procedure 01 07.06.2012 IVRCL/OM/PUR/PRO 4

4.0 Process Flow Chart 01 07.06.2012 IVRCL/OM/PUR/PLC 8

5.0 Objective & Measurement 01 07.06.2012 IVRCL/OM/PUR/OBJ 9

6.0 Details for supplier Registration 01 07.06.2012 IVRCL/OM/PUR/F-01 10

7.0 Supplier Rating Sheet 01 07.06.2012 IVRCL/OM/PUR/F-02 12

8.0 Purchase Order 01 07.06.2012 IVRCL/OM/PUR/F-03 13

9.0 Purchase Indent 01 07.06.2012 IVRCL/OM/PUR/F-04 14

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/AMD Rev. 01 Date: 07.06.2012 Page 3 of 14

AMENDMENT RECORD

Document No. Rev No. Date Amendment Details

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/PRO Rev. 01 Date: 07.06.2012 Page 4 of 14

PURCHASE PROCEDURE

1.0 PROCEDURE AT HEAD OFFICE FOR PURCHASES FOR SITES

1.1 Supplier Registration

Suppliers of critical materials, plant & machinery used for construction purpose, shall be evaluated for
their capability to meet the requirements of IVRCL. The existing suppliers, who have already supplied
materials to IVRCL in the past, shall be considered to be registered. The cut-off date for the same shall be
done in year ending. Information regarding new supplier shall be collected in Details for Supplier
Registration form (IVRCL/OM/PUR/F-01). The supplier registration shall be approved by Vice President –
Commercial. On registration of new supplier, the Approved Supplier List shall be updated.

1.2 Purchase Process

 Obtain a clear Purchase Indent from the Site duly signed by the Site In-charge as per the delegation
of Authority indicated under ‘Delegation of Authority.
 Capital Equipment Indents to be forwarded to Executive Director for approval.
 ACE price to be mentioned in the Indent wherever possible.
 Locate the materials, if already available in surplus from the existing stock at Sites or godown.
 Obtain three to four quotations from the approved suppliers in case the material is to be procured.
 Make comparative analysis on the Offers received (Technical/Commercial).
 Decide strategy of procurement, payments, etc.
 Negotiate with the Manufacturers/Suppliers.
 Prepare clear Purchase Order, in two copies to be distributed to
a) Suppliers
b) Purchase Department
 The Purchase Orders should be signed by the Authorised Signatory as per “Delegation of Authority”.
 Expedite receipt of the material to the concerned Site.
 Obtain confirmation of receipt in the form of Material Receipt Note as per format from sites along with
t he rejection report, if any.
 Copy of Rejection Report intimation to the supplier to be attached to MRN.
 Coordinate with Finance/Accounts Department to liquidate the Purchase Orders for balance payment
to the supplier.
 Purchase Orders which are liquidated i.e. on which payment has been made are to be noted as being
paid with the details of amount, date, etc.
 Maintain a register of all Purchase Orders being issued.
 Bills from suppliers are to be taken in triplicate for Accounts Dept./Site copy/Purchase Department

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/PRO Rev. 01 Date: 07.06.2012 Page 5 of 14

1.3 Supplier performance Re-evaluation / Supplier Rating

Supplier rating shall be carried out annually for the suppliers of critical materials (Class A and B), who
have supplied materials in the previous financial year. The supplier rating shall be as per format “Supplier
Rating Sheet” (IVRCL/OM/PUR/F-02).

2.0 PROCEDURE FOR PURCHASES AT SITES

2.1 Supplier Registration

Suppliers of critical materials used for construction purpose, purchased at regional office level shall be
evaluated for their capability to meet the requirements of IVRCL. The existing suppliers, who have
already supplied materials to IVRCL in the past, shall be considered to be registered. The cut-off date for
the same shall by end of year. Information regarding new supplier shall be collected in Details for Supplier
Registration form (IVRCL/OM/PUR/F-01). The supplier registration shall be approved by Vice President –
Commercial / Head – Purchase in the Regional Office. On registration of new supplier, the Approved
Supplier List shall be updated.
The requirement for supplier registration will not be applicable for once-off purchases of off the shelf
items.

2.2 Purchase Process

Site In-charge shall inform the Site Accounts Officer/Accountant/Purchase Officer to carry out purchase as
per the following procedures:
 Obtain a clear Purchase Indent as per format IVR/POL/OSP/PUR 01, duly signed by the Site In-charge.
 Obtain two to three quotations from the approved suppliers, for comparison. Site may ask for material
rates from HO, if the material cannot be arranged locally. Head Office shall be contacted by forwarding
the Purchase Indent to Head Office Purchase Department at least two weeks in advance.
 Negotiate with the suppliers regarding rates and delivery.
 Make comparative analysis on the Offers received.
 The offers received. if not fitting within Accepted Cost Estimation (ACE) prices, prior approval should be
obtained from Executive Director submitting due justification/reasons for exceeding the limits.
 Prepare clear PURCHASE ORDER and obtain the signature of the Site In-charge to be sent to the
supplier. File a copy of PURCHASE ORDER with supporting offers and comparative statements for
record.
 Send copies of PO to HO on weekly/fortnightly basis, indicating clearly the Finance requirement, if any.
 Expedite receipt of material.
 Receive Delivery Challan (DC)/LR, check whether the material received is as per PURCHASE ORDER,
take into stocks and maintain the stock register. Prepare Material Receipt Note as per format
IVR/POL/OSP/PUR 03 for use of Site Accounts Department.
 While accepting the material and acknowledging the receipt to suppliers, it should be clearly mentioned
“The material is accepted subject to re-verification of quantity and quality”. The revivification of quantity &
quality is to be done at the earliest and before the payment due date to the supplier.

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/PRO Rev. 01 Date: 07.06.2012 Page 6 of 14

 Coordinate with Finance/ Accounts Department to liquidate the PO for balance payment to the
supplier.

Note: In case of emergency purchase (which is impossible to plan in advance), Site may purchase the
material to meet the project requirement and regularize the documents within a week. However,
intimation in this regard should be communicated to concerned RO/Division Office/ Executive Director by
Telephone/Fax/Email, etc., and confirmation to be obtained before ordering & procurement.

2.3 Supplier performance Re-evaluation / Supplier Rating

Supplier rating shall be carried out annually for the suppliers of critical materials (Class A and B), who
have supplied materials in the previous financial year. The supplier rating shall be as per format “Supplier
Rating Sheet” (IVRCL/OM/PUR/F-02).

3.0 DELEGATION OF AUTHORITY

3.1 Delegation of Financial Powers to procure the materials/equipments at Site/RO /Corporate office per
Purchase Order shall be as follows:

a) As per inter office correspondence/IOM maintained at Purchase Department Corporate office.

3.2 For all capital items/materials of value exceeding above limits, the sole approving authority is Executive
Director
3.3 Large quantities of material like Cement, Steel, Pipes and other costly items shall be preferably procured
by HO. If procured by Site prior approval should be obtained from Executive Director.
3.4 Project specific approvals may be obtained in case of possibility of exceeding the limits mentioned above.
3.5 Small quantities of materials like sundry items, hardware, electrical accessories for site maintenance, etc.
can be procured after approval of Site In-charge (indent to be raised by Site Engineer). Maximum limit is
Rs. 10,000 only per Purchase Order.
3.6 Heavy plant & Machinery shall be procured only by Corporate Office.
3.7 All cash purchases shall be regularized within a week with supporting documents (Purchase indent,
purchase Order & material receipt note) for items like hardware, electrical goods, etc. Maximum limit per
Purchase is Rs. 1,000 only.
3.8 Cash Purchases for sand, concrete, bricks etc. shall be carried out at Site based on the rate schedules
finalized by Site In-charge on approval of Director Resources.

4.0 CHECK LIST POINTS OF MAJOR EVENTS IN PURCHASE

 INDENT
The Indent should be given clearly in terms of technical specifications, the minimum order lot quantity,
prevailing units of measurements, Accepted Cost Estimation (ACE) prices, payback period, last procured
price, delivery date, alternative material if acceptable and relevant Indian Standard Code number. The
indentor should mention clearly the name of the Site, place of delivery and put their name below their
signature on every indent.

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/PRO Rev. 01 Date: 07.06.2012 Page 7 of 14

 MATERIAL RECEIPT
Insist for PO copy while accepting the material along with delivery challan (DC). The MRN to be forwarded
immediately to the concerned for necessary action. The rejection advice, if any, to be forwarded to the
supplier immediately and acknowledgement obtained preferably. The MRN to be prepared correctly by
mentioning all the details as detailed in the format.

 QUALITY CONTROL / HSEQ

While placing the PO necessary test certificates to be insisted. Suppliers should be selected carefully as
per their past experience, market survey, getting supporting documentary evidence of their credentials,
etc. to ensure that the material delivered is of good quality only. Try to procure the material directly from
the manufacturer wherever possible. Insist on the quality verification immediately on receipt of material.
Prior samples to be obtained along with the quotations to avoid discrepancies, in future.

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/PFC, Rev. 01 Date: 07.06.2012 Page 8 of 14

PROCESS FLOW CHART

START

INDENT

APPROVAL OF INDENT ACE

SOURCING OF MATERIAL

SOURCING IN -HOUSE SOURCING FROM MARKET

TRANSFER INDENT
USE EXISTING DATABASE
3 TO 4 QUOTATIONS

STOCK TRANSFER NOTE COMPARATIVE STATEMENT

FINAL
END APPROVAL NEGOTIATIONS

PLACEMENT OF ORDER

FOLLOW UP

ORDER COMPLETION

OBTAINING INVOICES & MRN

END PAYMENTS

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/OBJ Rev. 01 Date: 07.06.2012 Page 9 of 14

OBJECTIVE & MEASUREMENT

Measurement Records/
Sl No Key Result Area (KRA) Objectives Defined Target
Frequency Reference

Ensure issuance of Purchase

Min 90%
1 Timely procurement order within 15 days of receipt Quarterly Data Sheet
compliance
of duly approved indent.

Internal Customer Improve internal customer Min 80% buy

2 Quarterly Data Sheet
Feedback satisfaction level Year ending

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/F01 Rev. 01 Date: 07.06.2012 Page 10 of 14

DETAILS FOR SUPPLIER REGISTRATION

Sl No Field Description Details

Name of Supplier :
1
Main Business :

2 Registered Office Address:

3 (A) Contact Person(S):

1.

2.

(B) Contact Details:

(A) Mobile Nos(S):

(B)Telephone No(S):

(C)Fax No(S):

(D) E-Mail ID(S):

(E) Web Site:

4 Tax Registration No(S):

a) VAT TIN:
b) CST TIN:
c) Excise Registration No:
d) Excise Division Details:
e) Excise Collectorate:
f) Excise Control Code No:
g) Service Tax REGN No:
h) Service Tax Code No:
i) IEC No:
j) Provident Fund REGN No:
k) ESI Code No:
l) PAN/GIR NO:
m) REGN NO. Under Shops &
Establishments ACT:
n) SSI REGN NO. & Validity:
o) BANK’S Name & Address:
p) MICR / Bank Branch Code :
(FOR RTGS) If Any:

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/F01 Rev. 01 Date: 07.06.2012 Page 11 of 14

5 Years Turnover Profit

Financial Data:
Turnover / Net Profit of last
Three Financial Years:
Name Address Phone
Name of the proprietor / All
Partners / Director / Chief
6
Executives With Contact
Details:
Name Address Phone
Name of key Customers for
7
Reference with contact details:

Do you or any of your partners

have any connection with any
8 firm having business dealings
with IVRCL JVS / IVRCL sites
if yes give details:

Do you have any close

9 relations working in IVRCL /
HDO? If yes give details:

Signature & Date :

Name of the Authorized Signatory :

Seal of the Supplier :

Encl: Supplier Registration No - 01/A & 01/B

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/F02, Rev. 01 Date: 07.06.2012 Page 12 of 14

SUPPLIER RATING SHEET

A) Details of supplier:
Name of the Supplier:
Status of supplier
Purchases made
(in financial year)
Category:

Items dealt:

B) Orders data: To be entered

Payment Brand Image & service

Total P.Os released POs timely executed Rejections (PO)
Terms offered

C) Marks obtained in each criterion to calculate the overall efficiency of the supplier:
Marks obtained
Criteria (Please refer the Contribution Total Points
Full Marks (Max) in each criteria
Rating Procedure) percentage ( M x F)
(M)
Brand Image & service
10
offered: (B)
Quality: (Q) 10
Delivery: (D) 10
Price: (P) 10
Total Points for overall efficiency (out of 100 points) %

D) Grading of the supplier: (basing on the overall efficiency)

Overall efficiency Points Grading Grade obtained Remarks

Above 95.01 Excellent

Above 85 but below 95.01 Very good

Above 75 but below 85.01 Good

60 and above but below
Satisfactory
75.01
35 and above but below 60 Poor

Below 35 Rejected

If Grade is "#N/A", No order has been released in the year.

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/PO Rev. 01 Date: 07.06.2012 Page 13 of 14

PURCHASE ORDER

P.O. No. Date:

Project:

Delivery Address Quotation Ref. & Sub seq. Negotiations held.

Vendor’s Name & Address

Contact Person & Designation Indent Ref.

Billing Address
Telephone No. Payment Terms.
Contact Person & Designation
Fax No:
Tel / Fax No.

Dear Sir,
We are pleased to inform you that your offer has been accepted to the extent indicated below and as per terms
and conditions specified herein and overleaf. Kindly arrange to supply accordingly.

Del.
Sl No Item Description Unit Quantity Rate Amount in Rs.
Date

Total in Rs.
Remarks

Payment Terms Grand Total

Note:
Please supply the following against this order in accordance with terms & conditions printed overleaf.

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee
 IVRCL LIMITED, HYDERABAD

IMS OPERATION MANUAL – PURCHASE DEPARTMENT

Doc No: IVRCL/OM/PUR/PI Rev. 01 Date: 07.06.2012 Page 14 of 14

PURCHASE INDENT

Date:
P.I. NO. IVRCL
To,
Indentor Details: HO/Site
Payment by: HO/Site
Material to reach site by (Date)
Sir,
Kindly arrange to purchase the following material.

MATERIAL DESCRIPTION
Sl No RATE AMOUNT
(Indentor to indicate clearly the details of materials to be UNIT Qty.
(If known) Rs. Ps.
purchased with relevant specifications L.S. No’s)

Approved by Site Incharge

Approved by HO
Signature of Site Engineer:
Signature of Indentor:
Signature of Dy. Project Manager:

Signature of Project Manager:

Signature of Controlling Officer:

Prepared By Reviewed By Approved By

RVR Murty M.Govindh Rajulu, K. Ashok Reddy,
Vice President (Commercial) Corporate Management Representative Chairman-Chief Operating Committee