Standard Operating Procedure (SOP) for Store

(Good Receipt Note (GRN) & Issuance (Issue Slip))

May 10, 2017

A. Introduction

1. Material receipt and issuance is very important function for any organization. Inventory management
is much more specific to procuring, storing and handling the store's inventory (physical items). It is
important to The document the process of GRN & Issuance of any items which is being procured by
the company or supplied by the vender to the company.

2. This document covers the entire process on end to end basis and outlines the responsibilities of
various departments / personnel involved in the process.

3. The broad process involved is as follows:

a) Goods Receipts
b) Storage- Proper Up Keeping of the items at designated places
c) Issuance of items
d) Physical stock verification
e) Inventory Management- MIS, Minimum stock alarm, Cost analysis

4. The process requires involvement of multiple departments and therefore it is proposed to implement
the entire process. The individual/ group of members would have specific responsibilities in relation to
the activities. The responsibility matrix would involve 4 levels viz. (i) Primary (process owner in
ordinary course, MIS and custodian of documents), (ii) Secondary (to guide the primary process owner
and to act as the primary owner in the event of non-availability of the primary process owner), (iii)
Supervisor (to monitor the entire process, act in the event of any slippages and intervene in any
special circumstances not envisaged in this SOP) and (iv) Auditor (to ensure compliances of the
process, MIS and highlight the deficiency for sustainability / improvement as required).

B. Good Receipt Note (GRN)

5. On receipt of the items procured by the company or supplied by the vender, following process shall be
adopted/ adhered:

a. Items shall be entered in the prescribed register of the security register. Before making the entry in
the register the physical checking of number of items/ boxes and necked eye inspection of the item
and cross checking from the challan/ bills shall be carried out by security personnel. Any deficiency
such as numbers of items or any loss including broken of any items etc to be noted on challan/ bill
as well as in the prescribed register.

b. After completing the process mentioned in point 5 (a), the material shall be sent to store and store
personnel shall verify from the purchase order and make entry in the register. Any deficiency such
as numbers of items or any loss including broken of any items etc to be noted and to be informed
to procurement department under intimation to his supervisor and user.

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Polyplex Hydro Group (PHG)
 Standard Operating Procedure (SOP) for Store
(Good Receipt Note (GRN) & Issuance (Issue Slip))

c. After completing the process mentioned in point 5 (b), user and concerned person of quality dept (if
any) shall check/ inspect the quality/ weight and all other parameters/ standards mentioned in
purchase order (PO) for each material/ items. He shall make the report of the same and it shall be
signed by user and Site In-charge/ Functional Head. If any deviation found from the PO, the report
shall be sent to purchase department for onwards communication to vender/ supplier.

d. If material find in order, then bill of the items shall be sent to account for releasing the payment or
adjustment of advance paid (if any) against the material or items.

e. GRN is mandatorily supported to the bill for release of payment of the supplied item/ material.

f. GRN shall not be issued if item not received in store. In case any item sent directly to shop floor/
Machine hall or site without entering in the store, then issue slip to be submitted to store along with
challan/ invoice. So in this case GRN and Issue slip shall be entered in store record simultaneously
on same time.

C. Entry of the material/ Goods in Computer Software (POMS)

a. On preparing of Physical GRN, entry to be made in software/ DMS. For any new items code to be
developed/ allotted before entering the software.

b. After entering the material / items in software the accounts department shall check and release the
payment.

D. Issuance of Items/ Material

I. For Consumption

a. The use shall submit the issue slip duly approved by his supervisor and mention the purpose/
name of the machines/ component where items to be used.

b. The material shall be issued to user for onward consumption and user shall return/ deposit old
item/ replaced item to store if so.

II. Returnable gate pass shall be issue on following circumstances

i. Any item found not in order as per specification of PO, then material shall be returned to
vender/ supplier under intimation or on request of purchase department.

ii. Any item is being rejected by user and same is being sent to vender for replacement/
change.

iii. Any item is being issued on rent to vender /or employee for temporary use or on loan.

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Polyplex Hydro Group (PHG)
 Standard Operating Procedure (SOP) for Store
(Good Receipt Note (GRN) & Issuance (Issue Slip))

iv. Any item being sent for sample/ R&D purpose.

v. Any other purpose being approved by management.

III. Non- Returnable gate pass shall be issue on following circumstances:

i. When any item is being rejected by user and no possibility of purchase the material or
requisition has been cancelled.
ii. In case of any item being sent to Group Company permanently on non returnable basis.

iii. In case of sale of any company asset/ items.

iv. Any other purpose being approved by management.

E. Physical stock verification of store items/ inventory

a. The stock verification of the store items/ inventory to be carried out on monthly basis by the person
who is looking after or responsible for store. He shall submit the report of the same to his
supervisor by 10th day of every month.
b. The stock verification of the store items/ inventory to be carried out on quarterly basis by the
supervisor concerned and internal auditor by 30th day of end of every quarter.
c. The stock verification of the store items/ inventory to be carried out on half yearly basis by account
department 30th day of end of Ist half of the year.
d. The stock verification of the store items/ inventory to be carried out on annual basis as on 31 st
march every year by 15th April. This exercise shall be carried out by account department of HO and
concern person responsible for store.

F. Responsibility Matrix

a. The material inward, out ward and Audit matrix are tabulated as under:

Sn Activity Responsibility Person

A Entry Check/ Security Personnel (if posted)/ Concern Person/ Shift Supervisor
verification Plat Shit Supervisor (PSS)
B GRN preparation Person nominated/ SH Concern SH of the function / Site
C Entry in DMS/ Person nominated/ SH APGPL &KRPL- Vishnu Runthla
POMS KHPPL &PHPPL- Kanwarpreet
KPCPL- Pankaj Kumar
BHPL- Tanweer

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Polyplex Hydro Group (PHG)
 Standard Operating Procedure (SOP) for Store
(Good Receipt Note (GRN) & Issuance (Issue Slip))

D Monthly Audit Person entering in POMS/ Girish

software and person
nominated for GRN
perpetration
E Quarterly Audit Store supervisor and internal Concern SH and VD
auditor
F Half yearly Audit Accounts department Girish
G Annual Audit Accounts department / 3rd Girish/ AK/ AKA and SH, Person
party Auditor mentioned in row C above.
3rd party auditor if any

*The site where no security personnel deployed, then this PSS/ Shift In-charge of concern shift
would be responsible to carried out this work when material received at site.

b. Internal Audit shall review the process, documentation and record keeping (filing, etc) on a regular
basis and submit a report to CEO after incorporating comments from all concerned.

G. Review/ MIS and Audit

c. The SOP would be reviewed after three year (maximum) to see if any changes / optimization are
required in the process.

d. HR would be responsible to update the responsibility matrix on a yearly basis (minimum) to ensure
that the designated personnel are available in the service of the company.

H. Effective Date

e. The SOP would come in to effect from the date of its approval.

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Polyplex Hydro Group (PHG)