New Final SOP-Rev-1

Document Ref.
: Issue Date:
CU/SOP/FIND/24 2nd April, 2022
Issue No.: Revision No.:
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Document Title:
STANDARD OPERATING PROCEDURE FOR FINANCIAL RESOURCES MANAGEMENT
MORTEX GROUP
STANDARD OPERATING PROCEDURE

FINANCE & ACCOUNTS
Controlled Copy: Circulation Authorized by the Management Representative. Page 1 of 23

Document Ref.: Issue Date:
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Document Title:
DOCUMENT REVIEW SHEET
The signatures below certify that this Standard Operating Procedure has been reviewed and
accepted, and demonstrates that the signatories are aware of all the requirements contained
herein and are committed to ensuring their provision.
Action Name & Signature Position Date

Prepared & revised
by
Reviewed by
Approved by
AMENDMENT RECORD
This Standard Operating Procedure is reviewed regularly to ensure relevance to the systems and
process that it defines. A record of contextual additions or omissions is given below:
Amendment Record Sheet
Amendment Issue No. Revision Page No. Subject of Revised Reviewed

Date No. Review / By &
Modification Approved
By

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TABLE OF CONTENTS
A. FOREWORD........................................................................................................................
B. OBJECTIVES AND SCOPE................................................................................................
B.1. OBJECTIVES...........................................................................................................
B.2. SCOPE......................................................................................................................
C. DELEGATION OF AUTHORITIES....................................................................................
D. PROCESS FOR ACCOUNTING OF……...........................................................................
D.1. FIXED ASSET..........................................................................................................
D.2. INVESTMENT……………………………………………………….……………8
D.3. INVENTORY............................................................................................................
D.4. TRADE RECEIVABLE..........................................................................................

D.5. CASH & BANK……………………………………………………………...11
D.6. BORROWINGS……………………………………………………………...12
D.7. TRADE PAYABLES………………………………………………………...14

D.8. STATUTORY DUES………………………………………………………...15
D.9. PAYROLL...…………………………………………………………………16
D.10 BUDGETING…………………………………………………………………..16
E. MIS REPORTS………………………………………………………………………20
F. DOCUMENTATION………………………………………………………………..22
G. KEY PERFORMANCE INDICATORS…………………………………………………….23

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A. FOREWORD
The Group believes that robust policies are critical to its long‐term sustainability and growth.
This Standard Operating Procedures (SOP) Manual is a key component of the policy framework
of the Group and is created with a view to proactively address the risks inherent in business
processes and institute strong controls across these processes.
This SOP Manual articulates the Group’s philosophy with regard to Procurement process and
details the accounting procedures to be followed in the course of this process.
The SOP lays down the responsibilities of various Executives involved in the process and
provides work instructions for constituent activities, wherever deemed necessary. The Group
acknowledges the need for constant revision to the SOP, based on changes in the operating
environment, and actively encourages executives to provide recommendations for revisions
through the prescribed process.
The Group places utmost importance on adherence to the provisions of this SOP and any
deviation from the laid down policies and procedures would require express approval of Board
of Directors (BOD).
This Manual emphasizes that it is the responsibility of all executives of the Group to ensure
compliance requirements of the Manual.

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B. OBJECTIVE AND SCOPE
B.1. OBJECTIVES
Finance and Accounts are the nerve center of any organization, the framework through which
business performance can be measured internally and externally. The aim of this SOP is to lay
down necessary directives for the smooth and efficient functioning of the Finance & Accounts
Department. This document seeks to lay down the procedures adopted at Mortex India (the
Group) in a manner that aids standardization of procedures related to finance function. It is
designed to provide a consistent accounting / financial framework and internal controls by
encapsulating the best practices relating to the finance function of the Group in a comprehensive
document. The manual provides guidelines to execute, maintain or change the procedures related
to the Finance Department. It sets out the basic framework within which the financial data is
prepared and communicated. The document may also be used as training material for new
employees and a reference tool for existing employees. The procedures covered include:
 Delegation of Authorities
 General Accounting and book keeping
B.2. SCOPE
This SOP contains the detailed procedures that are required to be carried out by the finance
department to meet the overall objective.

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C. DELEGATION OF AUTHORITIES
As per Annexure Attached

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D. PROCESS
D.1. FIXED ASSET
 On procurement of fixed asset, the approved invoice along with supporting should be
handed over to the assigned accounts personnel by the respective department and it
should be recorded in the software within three days from the date of receipt of invoice.
In case of any discrepancy, the issue should be highlighted to the respective user within
the timeline mentioned above. If the discrepancy is not resolved within seven days from
intimation, the matter should be escalated to the immediate reporting authority. Since,
invoice for fixed asset has to be booked in the software on the date the asset is put to use,
if back dated invoices are received from any department, necessary approvals should be
taken before booking such invoices. This will help in ensuring timely receipt and
accounting of invoices.
 Depreciation utility should be run every month and depreciation as per companies act
2013 should be posted in the books by 5th of every month. Further, depreciation as per
income tax act, 1961 should also be calculated from the software and posted in books
accordingly.
 Fixed Asset Register (FAR) should be maintained in the software (currently Tally). The
FAR will contain the following details:
 Asset Code
 Asset Account Code (not in system now)
 Class & description of asset, model no. & date of purchase
 Quantity
 Location & department using the asset
 Value of asset (gross block, net block)
 Useful life of the asset & depreciation rate
 Unit of measurement
 Depreciation (accumulated depreciation and depreciation for the year)
 Details of transfer and disposal
 WDV of assets
The Accounts Officer will paste the asset code sticker against the asset entry in the FAR

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and on the physical asset. Finance manager would conduct physical verification of fixed
assets on a quarterly basis and submit the report to CEO Finance / BOD.
D.2. INVESTMENT
 Investments should be classified (long term / short term) and recorded in the software
properly. While finalizing financial statements long term investments should be recorded
at cost itself while short term investments should be recorded at lower of cost or fair
value.
 Income generated from these investments should be prudently recorded in the financial
statements. TDS deducted on income should be reconciled from 26AS on a quarterly
basis and accounted in books accordingly.
FREQUEN
NR PROCEDURE CY RESPONSIBLE
PERSON
Investments
All Investment Register Report must be complied by

the Accounts officer/Executive and Credit Control,
entailing all investments and it must be reconciled to
the General ledger with interest rates, types of
investment, date of maturity, account number, amount
and the name of the financial institution, where the Monthly
1. amount is held. basis CFO/Manager
An Investment Register/ report must be reviewed by the

CFO/Manager, and be submitted to Directors for Monthly
2 information. basis CFO/Manager
CFO/Manager
The additions or withdrawals must be approved as per
3 Investment Policy. On going

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D.3. INVENTORY
 Inventories are required to be monitored very diligently. Accounts Officer should cross
verify that stock as per records are actually present in the warehouse at regular intervals
(monthly). No kind of discrepancy should exist. In case of any discrepancy, it should be
urgently investigated and resolved and if the discrepancy still persists the same should be
informed to the immediate reporting authority and recorded in books accordingly.
 Benefits of inventory accounting are:
 Healthy and steady cashflows: By properly analyzing the inventory needs, cash
will not be trapped in unnecessary inventory.
 Increase in overall sales: Inventory accounting helps in the calculation of the
reorder levels. Through this, the business never runs out of stock since orders are
placed in time.
 Reduction in storage cost: The identification of slow-moving goods is key to
reducing storage costs.
 Maximation of profits: Inventory accounting helps identify areas for cost cutting
and maximizing the profit margin.
 Facilitates better decision making: Inventory accounting aids in the preparation
of financial and revenue projections, thus helping the business owner make sound
decisions.
 Inventory accounting is mainly focused on analyzing the needs and requirements of the
business with regard to inventory levels. The business puts this information to use in a
way that targets high sales and profitability. The valuation of inventories may be done
based on FIFO, LIFO or weighted average methods, as the case may be. The following
are some of the best common methods of inventory accounting:
 Economic Order Quantity (EOQ): Inventory has cost components such as
ordering cost and carrying cost. Often, without proper planning, these costs tend
to escalate. EOQ aims to eliminate wasteful spending when it comes to inventory
orders and replenishment. EOQ is the optimum quantity for a particular order to
reduce the carrying cost and order cost to an acceptable level.
 Just in Time (JIT): JIT is an inventory management technique that is focused on
cost-cutting and optimal order time. Under JIT, the order is placed with the

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suppliers so that the inventory arrives only when it is needed. This helps facilitate
control over storage costs by placing orders only when the inventory levels are
significantly low. JIT aids in better inventory management, reduction of inventory
waste and smooth cash flows.
 ABC analysis: Under the ABC analysis, the products are ranked into A, B, and C
groups (A being the highest) based on their importance to the business. Metrics
such as demand, cost, and other criteria help arrive at the product’s particular
rank. ABC analysis helps improve the inventory turnover rate, thus boosting sales
and reducing unnecessary storage costs.
 Fast, slow and non-moving: This is a method with a focus on the movement of
goods. Based on the customers demand for the goods, the inventory is divided
into fast, slow, and non-moving goods. The fast moving goods will be reordered
frequently, whereas the non-moving goods may not have a repeat order.
D.4. TRADE RECEIVABLE
 Accounts or trade receivable is the amount owed to a company when it provides goods
and/or services on credit. The accounting SOP manual helps to streamline and optimize
the collection cycle time, credit policy, sales, invoicing, and billing process, with a focus
on the legitimacy and accuracy of bills and invoices. Once the sale bill is generated
(documentation team generates in case of export sale) following steps should be
followed:
 Customer set up
 All responsible employees for promptly reporting any sales on a credit basis
to Manager-Accounts unless the department in which the employee works
has been delegated the authority, by this procedures, to invoice the agency
that has received the service/material.
 Employees should contact the Account Manager office for credit information
prior to delivery of any materials or services.
 Unless specifically authorized to do so in this policy, no department, office, or
division of the company may prepare any billings to any agency or person for
services or materials sold.
 All invoice formats shall be approved by the Manager and followed by
Director as per existing Credit Policy.
 Payments on all invoices are to be directed to Manager-Finance.

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 All the bills needs to be entered in the manual register (as well as excel in case of
export) by Accounts Officer highlighting invoice no, invoice date, material
supplied, quantity, rate, transporter details, shipping details. Manual register is
maintained party-wise in case of domestic sales. In case of export sales, the sale
bills are also to be tagged against purchase bills in excel.
 Bills should then be entered in software by Accounts Executive.
 Regular follow up to be made to party by Accounts Officer for payment collection
in respect of domestic sales.
 Terms of payments for all billings issued or to be issued by the Company shall be
prescribed by the Director and above.
 Accounts Officer is responsible for follow-up on all accounts receivable which

have not been paid in accord with terms of the credit agreement.
 Error in the original billing. There may have been an error made when a billing
was originally requested or an invoice should never have been requested in the
first place. While this may happen on occasion, departments should be very
certain that an account receivable does, in fact, exist before requesting a billing.
Also, a billing may have to be replaced by another when some of the billing data
is found to be incorrect.
 KPI would be in this area 1) Reducing Average Days Collection, 2) Decrease
Your Collection Cycle Time 3) Reduction in Billing errors 4) Reduction in credit
terms.
 Balance confirmation shall be obtained (either monthly or quarterly) to identify if any
error or discrepancy exists and if so then it should be resolved.
D.5. CASH & BANK
 Cash payments would be avoided as far as possible. Only petty bills or imprest accounts
can be paid in cash for the following petty expenses:
 Expenditure for refreshments during official meetings.

 Staff conveyance
 Office maintenance of petty nature
 Printing & Stationery of petty nature
 Any other petty expense

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Cash Payments above Rs. 10000/- should not be made against a single bill. Cash
payments to be made only after approval of Finance Manager on receipt of the bill for
payment. It is also ensured that the complete approval note along with the bill is prepared
by the Accounts Officer before handing over it to the Finance Manager.
 Bank payments (i.e. Issue of cheques / RTGS / NEFT / Remittance / Direct Debit). For
making any bank payments following steps should be followed:
 Suppliers bills should be pre-approved by Management / CFO / documentation

team and vendor bills should be pre-approved by Manager Finance.
 In case of cheque payment its details are entered in issue register maintained
manually by Accounts Officer highlighting the cheque no, date, party name and
amount. Details of online / offline payments are sent by Accounts Officer to
Accounts Executive for entry to be done in software.
 Bank Receipts (i.e. Receipt of cheques / RTSG / NEFT). For accounting any bank
receipts following steps should be followed:
 Domestic Receipts: Once the payment is received then the same needs to be
entered in receipt register (maintained manually) and party-wise ledger by
Accounts Officer highlighting date of receipt, mode of receipt, party name,
amount, bill no. against which the payment is received. The receipts are then
entered in software by Accounts Executive.
 Foreign Receipts: Once the forex receipt voucher is received from the Finance
Department, it is simply accounted for in the software by Accounts Executive.
Finance Department / Bank Documentation Team prepares final bill for banking
purpose to which is attached shipping bill highlighting the drawback amount.
Receivable entry for which is posted in software by Accounts Executive
immediately. Once the drawback amount is received, they are then posted in
receipt register (maintained manually) along-with the sale bill detail against
which the drawback is received by Accounts Officer. After the above steps, these
receipts are entered in software by Accounts Executive. Tagging of receivable
and receipt entry is done in software by Assistant Manager.
 Bank Reconciliation Statement: Domestic transactions are checked on daily basis,

however foreign transactions are checked at the time of preparing BRS at month end by
Assistant Manager. The major check point at this stage is the amount of Packing Credit

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which is cross checked with the PC diary and PC sheet maintained by the Finance
Department. BRS should be prepared on weekly basis.

D.6. BORROWINGS
 The Group is involved in export business and hence taking bank limits is a day to day
affair. All the borrowings should be prudently recorded in books of accounts. The group
has 3 kind of loans:
 Letter of Credit: A letter of credit or LC is a written document issued by the

importer’s bank (opening bank) on importer’s behalf. Through its issuance, the
exporter is assured that the issuing bank will make payment to the exporter for the
international trade conducted between both the parties. The importer is the
applicant of the LC, while the exporter is the beneficiary.
 Packing Credit: ‘Pre-shipment/Packing Credit’ means any loan or advance
granted or any other credit provided by a bank to an exporter for financing the
purchase, processing, manufacturing or packing of goods prior to shipment, on
the basis of letter of credit opened in his favour or in favour of some other person,
by an overseas buyer or a confirmed and irrevocable order for the export of goods
from India or any other evidence of an order for export from India having been
placed on the exporter or some other person, unless lodgement of export orders or
letter of credit with the bank has been waived.
 Inter Company Loans: Intercompany loan is the amount lent or advance given
by one company (in a group of companies) to another company (in the same
group of companies) for various purposes including to help the cashflow of the
borrowing company or to fund the fixed assets or to fund the normal business
operations of the borrowing company, which gives rise to interest income to
lending company & interest expense to borrowing company.
 Interest on loan should be properly recorded in the books of accounts. TDS should also
be deducted and accounted for in accordance with the provisions of Income Tac Act,
1961.
 Documents to be submitted for taking new bank limit and its renewal are:

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 Brief profile of the company and its directors / partners to be submitted.

 KYC of company and its directors / partners.
 Audited accounts of previous 3 financial years.
 Credit Monitoring Arrangement Report i.e. projected performance of coming 2
financial year.
 Projected financial statement of current year.
 Audited Accounts of previous financial year of its directors / partners.
 Income Tax Return of previous 3 financial year to be given.
 Bank Statement of last 6 to 12 months required.
 Credit rating from CARE CRISIL to be submitted. To procure the same we need
to give the agency contact details of bank from which limit is taken, complete
details of utilization of loan on monthly basis, export details (country-wise) and
details of Auditors.
 List of top 5-10 suppliers, details of debtors / creditors, Stock statement and
Debtors Statement as required by bank.
 For taking bank limit the company generally give Fixed Deposits as collateral and
sometimes property of partners & directors are also used to be given as collateral.
 Pari Pasu Statement needs to be submitted.
D.7. TRADE PAYABLES
 Accounts Payable consists of all short-term debts owed to creditors (to be paid off within
a year or so) and are shown as a current liability on the company’s balance sheet. The
Accounts payable process is an integral part of the P2P (procure-to-pay) workflow. Part
of the accounts SOP, P2P covers the entire process chain, right from procurement,
purchase, and invoice processing to the final vendor payments. Once the purchase bill /
vendor bill is received following steps should be followed:
 Purchase bills needs to be entered in the manual register by Accounts Officer

highlighting invoice no, invoice date, material procured, quantity, rate. In case of
export related purchase, they are to be tagged against corresponding sale in excel
as well as manual register by Accounts Officer.
 Vendor bills are also to be entered in manual register maintained by Accounts
Officer against the corresponding sale invoices. This process helps in cross
verification that multiple vendor bills are not accounted for against a single sale
transaction.

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 Bills should then be entered in software by Accounts Executive.
 Balance confirmation shall be obtained (either monthly or quarterly) to identify if any

error or discrepancy exists and if so then it should be resolved
D.8. STATUTORY DUES
 Statutory Compliances include TDS, GST, Advance Tax, Professional Tax, Provident
Fund.
 Tax Deducted at Source (TDS) needs to be deducted at the time of payment or credit,
whichever is earlier. Deducted amount is to deposited with the Government within of the
7th of the following month. TDS return is to be filed quarterly within 30th of the
following month. To ensure timely filing of TDS Return, details is to be submitted with
the consultant on a timely basis.
 A GST return is a document containing details of all income/sales and/or

expense/purchase which a taxpayer (every GSTIN) is required to file with the tax
administrative authorities. This is used by tax authorities to calculate net tax liability.
Types of GST returns to be filed are:
Return Description Frequency Due Date

GSTR 1 Details of outward supplies of Monthly 11th of the next
taxable goods and/or services month
affected.
GSTR 3B Return in which summary of Monthly 20th of the next
outward supplies along with month
input tax credit is declared and
payment of tax is affected by
the taxpayer.
GSTR 9 Annual return for a normal Annually 31st December of the
taxpayer. next financial year
GSTR 9C Certified reconciliation Annually 31st December of the
statement next financial year
 Advance Tax, Professional Tax, Provident Fund are required to be deposited with the
Government Authority as per the provision of Income Tax Act, 1961.

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D.9. PAYROLL
 Accounts Officer will prepare monthly salary sheet by 5th of every month based on the
attendance and leave records of the employee.
 TDS deduction would be checked with the computation of taxable income prepared for
each employee and tax deducted so far before the current month.
 Any adjustments for any advances or loans taken by the employee would be made before
the approval of salary.
 In case of new employees, appointment letters would be checked along with other
relevant documents such as last employers, relieving certificate, experience certificate.
While preparing the TDS calculations, last employers Form 16 should be considered.
 The salary sheet would then be checked and approved by Manager Finance.
 In case of any employee leaving the company, full and final settlement account would be
prepared Accounts Officer and approved by Assistant Manager. The Assistant Manager
would check the following documents before making full and final payment: Letter of
Resignation, acceptance of resignation, any loans / staff advance / imprest outstanding,
any TDS short deducted on the basis of declaration not received, copy of tax saving
investments such as payment of LIC premiums, PPF, House rent receipts, home loan
certificates for which credit has been taken etc., any office equipment such as laptop,
mobile handed over.
 Accounts Officer will then release payments.
D.10. BUDGETING
1.1. Policy
1.1.1. Company will have an activity plan for achieving the desired targets/results
assigned to it in accordance with implementation plan.
1.1.2. The plan will be reviewed regularly on quarterly basis and as per need to ascertain

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progress made towards achieving the desired targets as well as to keep the plan
update.
1.1.3. The activity plan will be used as framework for forecasting program or area budget
estimates.
1.1.4. Budget functions of Company will be overseen by the following;
Tasks Implemented by
Preparation of program budget estimates Director/CFO
Review, finalization, implementation, Director/CFO &Finance
Monitoring, and revision of budgets Manager
1.1.5. BOD will approve annual budget.
1.2. Responsibility
1.2.1. Monitoring and review of budget will rest with the Finance.
1.1.
1.1.
1.2.
1.3. Procedure
Process Overview
The budget process will involve the following major steps:
Development of a calendar of activities necessary to finish the process and the schedule dates
for compilation of each step by respective Projects;
Development of preliminary estimates for use by the Projects evaluating the reasonableness of
the estimates;
The development and submission of budgetary estimates by the Projects;
Compilation and review of budget estimates by Finance;
Presentation of budget document to the CFO for adoption; and
CFO will present Budget in BOD for final approval.
Program Forecast
1.3.1. Basic planning and budget input data will be gathered for the program forecasts by the
Projectss through:
 Vision and Mission
 Demand;
 Products/Service
 Program activity plan; and

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 Personnel requirements for the next year as discussed with the Manager HR&A with
the consultation of relevant department head.
1.3.2. All program plans and budgets will be prepared by the CFOs. The forecasts will include:
 Overview of planned activities and budgets;
 Income and expenditure wise plans and budgets; and
1.3.3. The prepared plan and budget is mutually reviewed, discussed and revision, if any with
Finance, and accordingly will be amended before its submission to CFO who then will
present in front of BOD.
1.3.4. After review by the Operation and Finance, the reviewed budget with plan will be
distributed among concerned operational departments.
Draft Annual Budget
1.3.5. Based on the plans, Finance Manager will prepare budgets. Manager F&A will assist
during the compilation by Asst Mangers/Officers
1.3.6. Draft annual plan and budget will be presented to BOD by CFO for final consideration and
review before approval.
1.3.7. Manager F&A will review of preliminary program plans and budget forecasts in
coordination of CFO or other HOD..
1.3.8. The information supplied will be reviewed in terms of accuracy, possible problems in
implementing proposed programs and reasons for substantial variations between
projections and cost incurred during previous years. As a result:
 The contents of the final budget will be finalized; and
 The draft annual plan and budget will be revised, if necessary.
Final Budget Document
1.3.9. After having been reviewed and revised as necessary, Manager F&A will compile Draft
Annual Plan and budget into a Final Budget document. The document will include:
 The comparison of planned activities and budgets of the current year with actual
achievement and income/utilization;
 The highlights of the proposed budget in terms of program expansion and planned
activities;
 An outline of problem areas which have not been reconciled/addressed within the
current budget; and
 A review of the budget increases, if any, caused by changes and increases (such as
salaries);
1.3.10. After having been compiled and approved by the BOD, the final budget document will be
submitted to CFO for review and recommendations.

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Approval and Adoption of the Budget

1.3.11. CFO will give final approval on the plans and budgets forwarded by the BOD.
1.3.12. After approval by the BOD, the annual plan and budget will be distributed as follows:
1st Copy Chief Executive Offier
2 Copy
nd
Operations Manager
3 Copy
rd
Manager F&A
4 Copy
th
File
Execution of the Budget
1.3.13. All departments under supervision of Internal Auditor (IA) will be responsible for
keeping track of progress against activity plans and budget. This function will comprises:
 Reviewing transactions for conformity with the planned activities;
 Assuring that no transaction occur unless approved in accordance with budget and
SOPs; and
 Reporting activity status and budget utilization on monthly/quarterly and annual basis
on the specified budgeting and reporting formats.
1.3.14. The progress being made towards objectives will be reviewed and evaluated, on monthly
basis by IA & Finance.
Monitoring and Control

1.3.15. To ascertain the progress being made towards the prescribed objectives, an effective and
efficient budgetary information system will be established. The Financial Information
System will be capable of:
 Providing management at all levels, on timely basis, with accurate and relevant
informative data on performance towards each goal;
 Comparative analysis of planned statistics with current results; and
 Supporting management in taking corrective actions, wherever necessary, to lay down
adequate and accountable future plans.
1.3.16. Manager F&A will prepare the following reports (at the minimum) based no the current
information available on monthly basis during the execution:
1.3.17. Activity plans and budgets will be revised during the financial year in order to adjust
projections to meet changing conditions. The potential budget revisions may be:
 Budget Expansions Represent enhancement to departmental/program base budget e.g.
by adding new budget line or increment in already apportioned budget.
 Budget Contractions Represent deletion of budget line or decrease in already
apportioned amount.

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 Budget Transfer Represent transfer of funds from one budget line to another.
1.3.18. Manager F&A will prepare Budget Revision Form and forwarded to respective
Operation Managers and CFO for authorization and approval.
1.3.19. The revision request reviewed by PM will be forwarded Manager F&A who will forward
to CE for final review, after approval and the budget will be adjusted accordingly.
E. MIS REPORTS
MIS Reports are required by the management to access the performance of the organization and
allow for faster decision making. Multiple reports that are being prepared in the group are:
 Sale Purchase Report: It helps to release party payments. This report is required to be
prepared by Assistant Manager and submitted to Management / CFO / Manager Finance
and Operations Team on daily basis within the time frame decided by the management.
Steps to prepare the same are mentioned below:
 Purchase report is to be prepared from dispatch detail sheet received from

Operations team. Dispatch detail sheet for Vizag export is received same day
evening while for Kolkata it is received next day morning within 11.30 am.
 A combined sheet named as Purchase Report is prepared from above two dispatch
detail sheet.
 Payment to various parties are made by Accounts Officer who then sends payment
report at day end via mail to all the person responsible for payment decision
making i.e. Manager Finance / Assistant Manager / Accounts Executive.
 The above payment details is then compiled with the Purchase Report and finally
all the ledgers (party-wise) is updated to know the actual outstanding amount as
on the respective date.
 Payment details are cross verified from bank statement and purchase details are
cross verified with e-way bill generated from portal.
 Sauda Khata: This is basically a report which records the rates at which multiple purchase
orders are placed. As soon as management places a purchase order information for the
same is shared with Operations Team / Manager Finance and Assistant Manager.
Purchase Register is then updated in excel once the order is finalized but purchase order
date is updated only when order is actually being placed. Information for placement of

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order is received via mail from Operations Team. This report is also prepared by Assistant
Manager.
 Transporter Report: It is prepared to release transporter payments. This report is required

to be prepared by Assistant Manager and submitted to the Management / Manager Finance.
It is prepared from the dispatch sheet provided by Operations Team. Data of this sheet is
then segregated company-wise and transporter-wise and individual ledgers maintained in
excel are also updated. Following steps are to be followed to release transporter payments:
 Bills are received directly from reception by Compliance Team, team responsible
for vendor payments.
 Excel is updated company-wise and transporter-wise i.e bill no. date of transport,
rate, weighment, cab no.
 Any kind of detention and shortage is required to be checked. If the same is ok
then payment is released. In case of discrepancy the same need to be confirmed by
Operations team.
 Sale invoice no is updated in transporter’s bill (i.e that this transporters bill is for
which sale).
 Transporter bill is then passed to Accounts Officer who updates the hand register.
 Finally the bill is checked by Manager Finance and payment approval is given.
 Procedure for Vendor Payments:
 Documentation team maintains a loading diary in which all sale related details is
mentioned i.e invoice no., quantity, destination, F&F, CHA, inspection (these
details are received by them directly from Management). These details are
required to check vendor bills. Once Assistant Manager & Accounts Executive
(from Compliance Team) receives vendor bills they give the same to Accounts
Executive (from Accounts Team) to post the entry in software.
 After the entries are done, these bills are then checked by Compliance Team
(Assistant Manager for transport, Accounts Executive for F&F CHA Inspection)
with the details supplied to them by documentation team.
 Vendor party MIS report is prepared highlighting Invoice No. Date, Gross
Amount, TDS amount, any deduction payment date.
 All the vendor party details are manually entered in register by Accounts
Executive (from Compliance Team).

01 00
Document Title:
 Ocean freight charges are fixed before hand by documentation team (loading
diary) and few are on actual incurred basis i.e. terminal handling charges,
documentation charges, seal charges, mandatory user charges (logistics team
confirms these charges and supporting are also attached with the bill. Custom Port
charges etc depends on shipping line. Out-movement charges, storage charges,
shifting charges are some other charges which are not fixed but are incurred on
actual basis and confirmation is received from logistics team along with proper
supporting.
 If billing is less then agreed rate, no issue payment is released immediately. If
billing is done at a higher rate, then conformation is to be taken from Manager
Finance and Logistics team. In most cases they have the information. If not then
confirmation to be taken from Management.
 Payment intimation is received from Manager Finance verbally. Once the
intimation is received details for payment are sent to Accounts Officer (from
Accounts team) to release payment. Once the payment is made, payment details is
sent to respective parties immediately.
F. DOCUMENTATION
The following are the documents that need to be documented:
 Fixed Asset Register

 Stock Taking Report
 Debtors Ledger
 Cash Book
 Cheques
 Bank Statements & Bank Reconciliation Statement
 Account Confirmations
 Creditors Ledger
 Memos
 Project Payment Certificate
 Payment Vouchers
 All export related documents
 Financial Statements
 Budgets

01 00
Document Title:
 Statement of Financial Position (Balance sheet)

 Statement of Financial Activities (income statement)
 Statement of Changes in Financial Position (cash Flow Statement)
 Statement of portfolio
G. KEY PERFORMANCE INDICATORS
The following are the indicators:

Operating Cash Flow Accounts Payable Turnover Earnings Per Share
Unlevered Free Cash Flow Cash Conversion Cycle Price-to-Earnings Per Share Ratio
Levered Cash Flow Return on Assets Book Value Per Share
Net Present Value Return on Equity Price-to-Book Value Ratio
Future Value Return on Investment Price-to-Sales Ratio
Break Even Point Total-Debt-to-Assets Ratio Price-to-Cash Flow Ratio
Payback Period Total-Debt-to-Equity Ratio Average Annual Growth Rate
Discounted Payback Period Degree of Financial Leverage Compound Average Growth Rate
Internal Rate of Return Interest Coverage Ratio
Working Capital Gross Profit Margin
Quick Ratio Operating Profit Margin
Current Ratio Net Profit Margin


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STANDARD OPERATING PROCEDURE

Controlled Copy: Circulation Authorized by the Management Representative. Page 1 of 23

DOCUMENT REVIEW SHEET

Action Name & Signature Position Date

Amendment Record Sheet

Amendment Issue No. Revision Page No. Subject of Revised Reviewed

Controlled Copy: Circulation Authorized by the Management Representative. Page 2 of 23

D.4. TRADE RECEIVABLE..........................................................................................

D.7. TRADE PAYABLES………………………………………………………...14

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B. OBJECTIVE AND SCOPE

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As per Annexure Attached

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D.1. FIXED ASSET

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All Investment Register Report must be complied by

An Investment Register/ report must be reviewed by the

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 Benefits of inventory accounting are:

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D.4. TRADE RECEIVABLE

Controlled Copy: Circulation Authorized by the Management Representative. Page 10 of 23

 Accounts Officer is responsible for follow-up on all accounts receivable which

D.5. CASH & BANK

 Expenditure for refreshments during official meetings.

Controlled Copy: Circulation Authorized by the Management Representative. Page 11 of 23

 Suppliers bills should be pre-approved by Management / CFO / documentation

 Bank Reconciliation Statement: Domestic transactions are checked on daily basis,

Controlled Copy: Circulation Authorized by the Management Representative. Page 12 of 23

 Letter of Credit: A letter of credit or LC is a written document issued by the

Controlled Copy: Circulation Authorized by the Management Representative. Page 13 of 23

 Brief profile of the company and its directors / partners to be submitted.

D.7. TRADE PAYABLES

 Purchase bills needs to be entered in the manual register by Accounts Officer

Controlled Copy: Circulation Authorized by the Management Representative. Page 14 of 23

 Bills should then be entered in software by Accounts Executive.

 Balance confirmation shall be obtained (either monthly or quarterly) to identify if any

 A GST return is a document containing details of all income/sales and/or

Return Description Frequency Due Date

Controlled Copy: Circulation Authorized by the Management Representative. Page 15 of 23

 Accounts Officer will then release payments.

Controlled Copy: Circulation Authorized by the Management Representative. Page 16 of 23

1.1.5. BOD will approve annual budget.

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Approval and Adoption of the Budget

Monitoring and Control

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 Purchase report is to be prepared from dispatch detail sheet received from

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 Transporter Report: It is prepared to release transporter payments. This report is required

 Procedure for Vendor Payments:

Controlled Copy: Circulation Authorized by the Management Representative. Page 21 of 23

The following are the documents that need to be documented:

 Fixed Asset Register

Controlled Copy: Circulation Authorized by the Management Representative. Page 22 of 23

 Statement of Financial Position (Balance sheet)

G. KEY PERFORMANCE INDICATORS

The following are the indicators:

Controlled Copy: Circulation Authorized by the Management Representative. Page 23 of 23