Collection of items

Items are dispatched to the consignee from the consignor on owner’s risk/carrier’s
risk by following modes as per terms and conditions of supply order:
 By road
 By rail
 By air &
 By sea.

1) By road:
Consignor is booking the consignment (smalls) through civil transport
authorities on door delivery or godown delivery under three categories. A document
LR will be issued after booking the consignment and the same will be forwarded to
the consignee along with relevant documents for further action. If any packages are
found in broken / tampered /open condition, open delivery is sought for. In the
absence of LR, items will be collected against indemnity bond. These consignments
are to be cleared and collected from the transporter’s godown within the reasonable
time failing which demurrage charges has to be paid to the transporter. The same
amount will be recovered from the consignor’s pending bills if consignor is at fault
(other than sister factories).
a) Prepaid basis.
b) To pay basis.
c) To be billed at basis.

Prepaid basis:
If the items are dispatched to the consignee by road against “prepaid basis”,
items will be collected from the transporter’s godown after handing over the
consignee copy of lorry receipt (LR) & paying handling charges to the transporter.

To pay basis:
If the items are dispatched to the consignee by road on “To pay basis” items
will be collected from the transporter’s godown after handing over the consignee
copy of lorry receipt (LR) & paying freight and handling charges.

To be billed at basis:
If the items are dispatched to the consignee by road on “To be billed at
basis” the items will be door delivered to the consignee. In this case transporter
will claim the freight charges from the consignor on production of
acknowledgement copy of lorry receipt.
2) By rail:
Items are dispatched by rail to the consignee on freight prepaid basis only
through military credit note (MC note). A document namely railway receipt (RR)
will be issued by the railway authorities after booking the consignment & the same
will be forwarded to the consignee from the consignor’s end along with relevant
documents for further action.
For effecting delivery of consignment ORR (original railway receipt) should be
handed over to the railway authorities. These consignments are to be cleared and
collected from railway premises with in the reasonable time or else demurrage has
to be paid to railways through Military Credit note. The same amount will be
recovered from the consignor’s pending bill if consignor is at fault (other than sister
factories). In the absence of ORR items will be collected against Indemnity Bond.
If any packages are found in broken / tampered / open condition, open delivery
sought for.

3) By air:
In the case of foreign purchase, Items are dispatched by air to the consignee, on
freight prepaid / to pay basis. A document namely airway bill will be issued by the
airport authority & the same will be forwarded to the consignee from the
consignor’s end along with relevant documents for further action.
For effecting delivery of consignment custom duty exemption certificate
(issued by competent authority), copy of invoice, packing list should be produced to
the airport authorities along with airway bill.
After clearance of consignment, items will be collected either by Factory
vehicle (or) civil truck. If the consignments are not cleared and collected by the
consignee with in the reasonable time (free time) demurrage charges has to be paid
to Airways. The same amount will be recovered from the consignor’s pending bills
if consignor is at fault.

4) By sea:
In the case of foreign purchase, Items are dispatched by sea to the
consignee on freight prepaid / to pay basis. A document namely bill of lading will
be issued by the shipping authorities & the same will be forwarded to the consignee
from the consignor’s end along with relevant documents for further action.
For effecting delivery of consignment custom duty exemption certificate
(issued by competent authority), invoice copy, packing list should be produced to
the shipping authorities along with bill of lading.
After clearance of consignment, items will be collected either by Factory
vehicle (or) civil truck. If the consignments are not cleared and collected by the
consignee with in the reasonable time (free time) demurrage charges has to be paid
to the shipping department. The same amount will be recovered from consignor’s
pending bills if consignor is at fault.
Anticipated out-turn report:

Mostly consignments are being cleared at the port through embarkation HQ.
Regarding intimation of arrival of ship will also be intimated by embarkation
authorities which broadly contains the particulars like approximate date of arrival
of cargo, vessel name, package details etc, for timely clearance.

Final out-turn report:

On completion of clearance and dispatch of all consignments shipped per vessel

the embarkation authority will prepare final out-turn report in respect of cargo
arrived by that particular vessel and distribute copies to all concerned. This is the
final information regarding the disposal of cargo arrived by the vessel.
Preparation of crv / civ for code items:
In some cases items are being supplied as a full code. The code consists of (n)
number of items. On acceptance of code items the code will be split into individual
items by means of preparing CRV and CIV.

Regularization of SIT (store in transit) cases:

Items are being supplied through IFD from various sister factories and
accounting is not done at the receiving end / local accounts. This is mainly due to
improper dispatch / non-linking of receipt voucher with consignor’s issue voucher
and accounting of items against nominal vouchers.

Improper dispatch:
Items are dispatched by sister factories with out completing the formalities and
due to part supply / part quantity / non forwarding of required documents.

Non-linking of receipt voucher with consignor’s issue voucher:

After accounting of receipted item by factory side, the connected receipt
vouchers are forwarded to local accounts for further course of action. If LAO fails
to link the above said documents then and there even after receipt of documents,
store in transit (SIT) will never come to an end.

Accounting of items against nominal vouchers:

Most of the sister factories are having the practice of sending the items on
nominal vouchers. These items are also accounted by the factory side erroneously
and receipt vouchers are forwarded to LAO for linking. But LAO will never link
such receipt vouchers with the respective regular issue voucher, as the receipt
voucher is prepared against nominal issue voucher.
In order to regularize the transaction, more steps to be taken at the factory side.
 Stores documentation:
A copy of supply order is forwarded to stores section by purchase group which
contain the details of items to be purchased. As soon as the items reached the main
gate an IGP (which contains the details like

a) IGP number and date

b) Name of the supplier
c) Supply order number and date
d) Number of items supplied &
e) DC number & date will be prepared by the security authority for
passing in. It is the duty of the concerned store keeper to see the external / internal
damages of packages / items after unloading the packages. If the items are found as
per challan / supply order the same will be accounted by means of DR after
completion of all formalities.

After opening the packages the following discrepancies can be seen:

1. Shortage of items
2. Shortage of quantity
3. Items found in damaged / broken condition &
4. Wrong supply.
If any one of the discrepancies noticed it should be intimated to the
supplier and purchase group immediately for further necessary action.
After inspection & acceptance of items, receipt voucher will be
forwarded to stores section (receipt group) which contains the details of accepted /
rejected / expended items. On receipt of receipt voucher the dealing concerned will
retain one copy for record purpose & remaining copies will be forwarded to stock
godown for further action.
a) Accepted items will be taken into stock charge by stock godown keeper
after collecting the items from concerned receipt bond by means of
receipt voucher.
b) Rejection memo will be prepared and sent to supplier.
c) Expensive voucher will be prepared and sent to stock godown for
posting.

Distribution of copies of receipt vouchers:

Copy of receipt vouchers are distributed to the following departments after
completion of formalities at stock group:
1) Finance department
2) Purchase department &
3) Record room
Re-warehousing of AR3A forms:
Certain items are purchased from various suppliers under exemption of excise
duty. If any item is to be purchased under this category there is a necessity to obtain
exemption certificate – annexure 45 (which contain the details like name of the
supplier, supply order number & date, item details & its quantity, validity of the
supply order and percentage / quantity of excess supply) from the central excise
department & the same will be forwarded to supplier for further necessary action.
It is the duty of the supplier to enclose and forward copy of certificate annexure
– 45, AR3A forms (which contain the details like name of the supplier, supply
order number & date, item details & its quantity, invoice number & date & its
value, annexure-45 certificate serial number & date and percentage / quantity of
excess supply) in triplicate along with invoice copy when ever supplies are made by
the supplier positively failing which the consignment will be ceased by the central
excise department if required.
It is the duty of the consignee to get necessary re-warehousing certification
from the authority of central excise department with in ninety days from the date of
invoice and the same has to be forwarded to the supplier for further necessary
action. In case of failure, penalty will be imposed either on supplier or consignee
whoever is responsible procedural lapse.

Hiring of Civil Truck:

Mostly many items are collected from places like Port/Air port mainly
through civil truck due to inadequate transport facilities. These trucks are supplied
by civil transport authorities on hire basis after placement of Supply Order. To
conclude the transportation order the following factors are to be known.
1. Size of the package
2. Weight of the package
3. No of Packages Dispatched
4. If it is through Container, Size of the Container

If any one of the information is not furnished it is our duty to obtain the
details from the consignor. On receipt of subject information requirement of trips
will be projected from Stores for approval of GM. After getting GM’s approval the
same will be forwarded to purchase group for along with purchase requisition
concluding the transportation contract.
Terms & Conditions of TE and Contract :

 The following special conditions may be incorporated in TE and Contract:

 Likely requirement of vehicles per annum/month/week to be indicated
in the Tender Enquiry for the period of the contract including QEC/Option
Clause period.
 Transporters Driver/Drivers must have valid driving license/licenses for
class of vehicles/Trucks to be driven by them.
 The transporter must detail competent representative for verification of
items, quantity at loading point and its receipt at consignor end, and delivery
of items, quantity at consignee end.
 The transporter to furnish Indemnity Bond on Stamp Paper duly
authenticated by Notary to undertake liability of full compensation during
transit losses/damages, short delivery/non-delivery of Government
consignment.
 Transporter will be fully responsible for safe and correct delivery of
Consignment at destination to consignee. They will be fully liable for any
accident and untoward incidents to the vehicle/driver/helpers/defense stores.
 Responsibility of loading and unloading of materials by factory or
transporter must be clearly indicated in the contract.
 Undertaking to be given by transporter for no transshipment of
consignment will be done en-route except in the case of accident/breakdown
to the vehicle and no other consignment would be transported along with the
defence consignment, failing which transporter would be liable for
cancellation of Registration.
 The Vehicle No. may be indicated on LR/GR. The receipt of
consignment by consignee in same vehicle to be acknowledged and firm’s bill
may be released accordingly after confirmation of receipt of material in good
condition.
 Confirmation of delivery of consignment in full to the consignee must
be given in writing by the transporter within three days from the date of
delivery to the consignor.
 Payment will be released only when the consignee confirms the receipt
of full quantity of material in SAFE AND UNTAMPERED condition.
 The Transporter should be able to place vehicle (s) on demand within 24
hours notice.
 Role and responsibilities of transporter after placement of contract:
a) The transporter must place vehicle/vehicles on the date & time as intimated by
factory.
b) Consignment must be checked, counted & ensure safe loading on the vehicle by
transporter or its authorised person.
c) Trans-shipment is not allowed after loading and taking out the vehicle from
factory & through en-route. In case of exigencies, consignor must be informed on
phone as well as confirmed in writing with reasons.
d) The transporter must take receipt duly stamped of consignment as per voucher
details from the consignor.
e) Any eventualities during transportation would be to the account of transporter.
f) Transporter must ensure that loaded stores are delivered to the consignee within
time frame as mutually agreed. Utmost care must be taken for safe and timely delivery
of defence stores to the consignee.
g) All the contractual obligation should be compiled for safe and timely delivery of
consignments to the consignee.
h) Written receipt of stores in full as per voucher by the consignee indicating
vehicle number therin to be obtained by the transporter and submitted to the consignor
within three days of delivery.
i) Lorry receipt duly received as per voucher details and signed by store officer
with stamp of consignee factory to be obtained.
j) In the event of short delivery/non-delivery damage delivery joint inspection
report must be prepared for replenishment of damages or to pay compensation thereof.

Role of the Consignor:

 Factory must ensure that competent representative of transporter has been detailed
for co-ordination to ensure safe and timely delivery of defence stores.
 Stores handed over and taken over for delivery must be recorded in a register with
signature of authorized person / transporter.
 The register must be checked and reviewed and signed by DO,GO & controlling
officer of stores section for proper monitoring on weekly basis.
 The number of boxes duly sealed by recording the contents in packing note as well
as issue voucher along with LR to be furnished. The boxes / packages should be
sealed in the presence of DSC / security representative and endorsement to this
effect should be indicated on packing note. One copy of such packing note should be
inserted in each packing box and should be pasted outside the box.
 Consignor factory to insure the consignment based on value & criticality of the item.
 As soon as the consignment is dispatched, same to be communicated by FAX /
SPEED POST to consignee with full dispatch particulars.
 Role of the Consignee:
 Consignee factory must check the correctness of the seals, physical condition of the
packages count and take delivery of stores as per issue voucher from the transporter
without delay and vehicle to be released in time to avoid detention charges.
 Consignee factory must issue formal receipt certificate of consignment as per voucher
details to the transporter for submission to the consignor after unloading.
 Consignee factory representative must clearly indicate deficiencies / discrepancies /
tampering of seal at the time of delivery.
 If there is a change in the vehicle number noticed, same to be communicated to consignor
by FAX and the consignments to be thoroughly verified by the consignee factory as per
issue voucher and LR before releasing the vehicle.

Actions in the event of any discrepancy while transporting the consignment

a) Consignee (receiving factory):
Quantitative discrepancy report must be prepared immediately in the prescribed form duly
signed by transporter’s representative and sent to the consignor through FAX / SPEED POST
for necessary action to consignor factory.
FIR must be lodged against transporter in the nearest police station for missing / stolen
quantity and tampering of box of defence stores.
b) Consignor (dispatching factory):
Immediate action must be taken for lodging the FIR against transporter in the nearest police
station.
To raise claim on insurance company / transporter as applicable for missing / damage of
stores during transit from the transporter or his underwriter along with copy of FIR.
Legal action to be initiated against transporter for recovery of claim. Also the amount of
damage / short receipt to be recovered from the pending bills of the transporter.
Sr. GM/GM may consider for cancellation of transporter or banning issue of tenders to
transporter for a period as deemed fit and intimate same to all ordnance factories and the
banker apart from transport association regarding delisting of the transport firms.

SKELETON LIST PREPARATION

 It is a list of all store documents generated and forwarded to LAO during a
month. Documents which are not forwarded, cancelled documents and
Pending documents of Previous months also appear in skeleton list. Skeleton
list is prepared on monthly basis.

 Earlier Skeleton list was prepared manually and concerned staff used to list
out all the Store documents viz, Receipt Vouchers, Issue vouchers, Demand
Notes, Inspection Notes (CS Vouchers), Return notes, CRVs, CIVs, EVs, EOs
prepared and forwarded during a month which is a tedious process. But Now
Skeleton list is generated through online program.

 Skeleton list is prepared and forwarded in Hard copy as well as soft data. EDP
(Electronic Data Processing) section of LAO compiles the data (forwarded by
the Factory) to update PSL (Priced store Ledger).
PREPARATION OF DATA SHEETS:
 Data Sheets are prepared by LAO of concerned factory based on the data (In
terms of Qty) given by the Factory in skeleton lists on monthly basis. LAO
calculates the value of item based on ALR (Average ledger rate) for PSL and
for PPL based on Overheads+ Operational cost + Cost of the material
 Data sheet comprises the following elements:
1. Store in hand (at the end of a particular month)
2. Active Stock
3. Slow Moving Stock
4. Non moving Stock
5. Maintenance Stock
6. Scrap stock value
7. Serviceable surplus
8. Obsolete
9. IFD stock
10. SIT (Outstanding Assets- Outstanding liabilities)
11. Consumption of Direct material
12. Consumption of Indirect material
13. No of ‘A’ Category items.
14 Work in progress inventory
15 Finished goods inventory

Based on the data given in data sheets furnished by LAO, Factory has to
update the information in MM-1 report in ARS (Automated reporting system) of
OFB comnet. OFB scrutinizes the value of inventory held in each factory
whether the inventory is within limits.
Total Store in Hand=180 days (For HVF=200 days)
Finished Goods Inventory= 7 Days
Work in Progress Inventory= 30 Days.