TENDERING PROCEDURE

1.Objectives :
1.1 To ensure prudence in spending scarce resources to maximum advantage
for the company.
1.2 To ensure that all business transactions are proper and in the best interest
of the company
1.3 To ensure transparency in all transactions involving expenditure.

2. Applicability:
The procedure is applicable to all purchases including
2.1) Raw materials and other production inputs
2.2) Capital goods
2.3) Stationery
2.4) Spares

3. Accountability
HOD (MTS) is responsible for implementation and maintenance of the procedure.

4. Budgetary control:
Purchases shall be undertaken with in the approved budget on the basis of a
purchase requisition duly approved by competent authority.

5. Purchase requisition:
5.1 Shall be in Form No. 110017
5.2 Dept.Heads are authorized to approve requisitions for capital goods, spares etc.
specifically required in their dept.
5.3 OIC(S) is authorized to issue requisitions for stock control items. HOD (MTS)
will publish the list of stock controlled items.
5.4 For production inputs not covered under the stock control list PPC Dept. head
will sign and issue purchase requisions.

6. Mode of Tenders:
6.1. Limited tender
Limited tender may be resorted to for purchase not exceeding rupees ten lakhs.

6.2 Open tender

To be resorted to when the total estimated value exceeds rupees ten lakhs.
However, when HOD (MTS) is convinced that no material benefit would
accrue by resorting to open tender may seek the permission of CE for
exemption of the stipulation and other modes of tender as approved can be
adopted.
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6.3 Single Tender

Single tender enquiries may be issued under the following conditions.

6.3.1) Proprietary items

6.3.2) Commodities covered by administered pricing mechanism
6.3.3) When the HOD (MTS) is satisfied that spending time
and money in other mode of tendering do not justify the
anticipated benefits that could accrue. However, if the estimated
value exceeds Rs.2 lakhs the permission of CE shall be obtained.

6.4 Cash purchase:

Where value of an item does not exceed Rs.500/- procurement
can be effected against cash payment without going through the
tendering procedure. The HOD (MTS) shall keep a watch of such
purchases to ensure that they are proper and prudent.

7. Approving authority
7.1 For revenue items
7.1.1) Upton Rs.1, 000/-
7.1.2) Rs.1, 001/- to 10,000/-
7.1.3) Rs.10, 0001/- to 50,000/-
7.1.4) Rs.50, 001/- and above
- Asst. Officer (Purchase)
- HOD (MTS)
- Chief Executive
- Purchase committee

7.2 For Capital items

7.2.1) Upto Rs.50,000/- - CE
7.2.2) Rs.50,000/- and above - Purchase committee

Note : CE shall obtain approval/ratification of the Board of Directors,

whenever the Expenditure exceeds the limit specified the delegations
of powers conferred on him.

7.3 Structure of Purchase Committee:

CE - Chairman
HOD (MTS) - Member Secretary
HOD (Finance) - Member
HOD (QA) - Member
HOD (Indenting/User dept.) - Member

7. Order signing authority

Upto Rs.1,000/- - Asst. Officer (Purchase)
Rs.1,001/- to Rs.50,000/- - HOD (Materials)
Above Rs.50,000/- - Chief Executive
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8. Order amendment

To be approved by the same authority under whose approval the original order was
selected.

Abbreviations issued:

CE : Chief Executive
HOD (MTS) : Head of Dept. (Materials)
HOD (QA) : Head of Dept. (Quality assurance)
OIC (MTS) : Officer in-charge (Materials)
OIC (S) : Officer In-charge (Stores)
AO (P) : Asst. Officer (Purchase)
PPC : Production Planning and Control