Purchase Policy

1. Purpose:

The purpose of this policy is to establish clear guidelines for procuring goods and services, ensuring cost efficiency, transparency, and compliance with company requirements and regulatory norms.

2. Scope:

This policy applies to all departments and employees involved in purchasing goods, services, equipment, or raw materials on behalf of Sunbeam Elastomers Pvt. Ltd.

3. Objectives:

• To streamline the procurement process and ensure accountability.
• To achieve cost efficiency while maintaining quality standards.
• To prevent unauthorized purchases and ensure proper approval mechanisms.
• To maintain fair vendor selection and avoid conflicts of interest.

4. Policy Guidelines:

Purchase Request and Approval:

1. All purchase requests must be submitted using the official Material Requisition Sheet (MRS).

2. The requisition must include:

• (a) Description of goods or services.
• (b) Quantity and specifications.

3. Approval hierarchy: All type of Purchases and Admin department heads approve purchases.

4. Materials brought without prior approval will not be reimbursed, this is applicable to all employees.

Purchase Order (PO):

1. A Purchase Order (PO) will be issued for all approved requisitions, detailing:

• (a) Vendor name and address.
• (b) Description of items or services and quantity.
• (c) Delivery timelines.
• (d) Payment terms and conditions.

2. The PO must be signed by the End User Department Manager, Purchase Manager, and Finance Head.

Receipt and Inspection:

1. All received items must be inspected by the Store Manager against the purchase order specifications.

2. Any discrepancies or damages must be reported within 48 hours to the Purchase Department.

3. A Goods Received Note (GRN) will be issued after verification.

Payment Terms:

1. Payments will only be processed against:

• (a) A valid invoice.
• (b) Delivery confirmation via the GRN.

2. Payment schedules:

• (a) Standard payment terms are 30 days from the date of invoice or subject to negotiations as per agreed terms with vendor.
• (b) Early payments may be made for discounts, subject to approval.

5. Roles and Responsibilities:

Requisitioning Department:

• (a) Identify procurement needs and prepare detailed specifications.
• (b) Verify delivery and ensure proper utilization of procured items.

Purchase Department:

• (a) Ensure adherence to this policy throughout the purchasing process.
• (b) Maintain vendor records and purchase documentation.
• (c) Conduct regular audits to identify and address gaps.

Finance Department:

• (a) Ensure budgetary approvals for purchases.
• 2. Process payments and maintain records of invoices and payment details.

6. Key Provisions:

• (a) Conflict of Interest: Employees must disclose any relationship with vendors to avoid bias in the selection process.
• (b) Emergency Purchases: In urgent situations, purchases may be made without following the standard process, subject to subsequent review and approval of MD.
• (c) Asset Tracking: All capital purchases must be logged in the company’s asset register.

7. Monitoring and Reporting:

• (a) Quarterly procurement audits will be conducted by the Purchase Department to ensure compliance.
• (b) An annual summary of purchase activities will be presented to the Board of Directors.

8. Review and Amendments:

This policy will be reviewed annually or as required based on operational feedback and market conditions. Amendments will be approved by the Board of Directors.

Approval:

This Purchase Policy has been approved by the Board of Directors of Sunbeam Elastomers Pvt. Ltd. on 1st January 2025.

This policy ensures structured, efficient, and transparent purchase processes at Sunbeam Elastomers Pvt. Ltd