Sales / 05 / 2007-08.

9th October, 2007

Circular to all DCMs / RCEs / Unit Heads
Sub : Points relating to Administrative Controls at Field Units

Given below are few points relating to Administrative Controls at Field Units. While
most of these are known to us and are already in vogue, it was felt necessary to
reiterate these to ensure that these are meticulously and rigorously followed,
without any exception whatsoever.
Some of these points were brought to our
attention during the recent audits.
1. Materials Billed but not dispatched : As a matter of rule, no material,
which has been billed to any customer should be lying in any of our Godowns.
“Deferred” dispatches (of billed materials) to any customer are not to be
entertained. This fact has been highlighted by our Internal Audit Team to
several Units on several occasions. It has come to our notice that “billed”
materials are lying in our Godowns. However, during month-ends or during
‘Price Revision, ‘Peaking of Schemes”, etc. it may not always be possible to
dispatch the materials on the day it is billed. It must be ensured that
dispatches are completed within four days in non-season months and within
six days in the case of price increase and season months. Season Months are
defined as July, August and September, for all Units except Tamil Nadu Units.
For Tamil Nadu Units, December & January shall be considered as Seasonal
Months. The number of days specified above includes Saturdays / Sundays
and holidays, as well.
2. Review of Credit Limits : The payment performance of the set of dealers
dealing with the company need to be periodically reviewed. Dealers who
regularly default in paying outstanding amounts by the due date will need to
be identified. The Credit Limits of such dealers, including dealers who have
returned cheques payable to the company, need to be revised. The Credit
Limits need to be reduced to nil in cases where there is a visible credit risk or
risk of bad debt. Thereafter, if dealings are to continue, the dealer concerned
should be asked to pay the company by demand draft taken in advance of
supply of any material.
Separate Credit Limits shall be fixed for Non-seasonal months and Seasonal
months. As stated earlier, for all Units other than Tamil Nadu, the seasonal
months shall be considered as July to November. For Tamil Nadu Units, the
seasonal months will be December & January. The Credit Limit (both for
Seasonal and non-seasonal months) shall be fixed taking into account the
average sale during the previous years. This shall be proposed by the Unit
Head and are to be approved by the Regional Manager, who will send it to
CDMC, Vakola to have the Credit Limits uploaded in SAP.

Administrative Control in Field Units
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4. the dealer is to be condoned. if the Invoice Number reference is not available. Special Deals Working : The detailed workings for “Special Deals”. and the RAC shall raise the Credit Note. The Unit / RAC shall keep track of such Credit Notes. 5. under exceptional circumstance. VAT / Sales Tax refund shall not be allowed. and the Unit shall show this amount separately in the Input Utilization Report. only in case of genuine mistake. 6. immediately after the season. because of non-availability of Invoice details or because of some other reason. in advance. Local ACD Dealers shall be billed only on receipt of Local cheque or Blank cheque. Upcountry ACD Dealers to be billed only on receipt of Demand Drafts (to the extent of the value of the DD). 3. On the 15th day. the Unit decides to pass on the VAT / Sales Tax refund to the customer. however. for approval. shall be checked by the TSO Concerned. the MRV shall be deemed to be ‘approved’. It must be borne in mind that this shall be treated as part of the “Input”. RAC shall raise a separate Credit Note. In the normal course. without waiting for Unit Head’s approval. The Unit Head shall ensure this. Condonation of Scheme Credit Notes : Normally Scheme Credit Notes are to be issued only on achievement of “Pre-fixed Targets”. The dealer or the Territory Sales Officer has to provide the unit with the original Invoice Number reference. These workings shall have the “target” and “actuals” for each of the “Special Deal”.It is imperative that all the Units reverts back to the lower Credit Limit. despite the Sales/05/2007-08 Administrative Control in Field Units 2 of 6 . who will also acknowledge the workings. If. if it is delayed. against which the relevant material has been dispatched to the dealer. the RAC shall wait for a maximum period of 14 days. These acknowledged workings shall be maintained at the RAC. It is necessary that the Material Returns Credit Notes are issued immediately. viz. A C D Billing : This is to caution all Units to ensure that billing under ACD terms are raised strictly as per the norms. Material Return Voucher : All field Units should take back the materials. However. before dispatch of the materials. If. and shall furnish the details to the Auditors as and when asked for. however.

the approval of Regional Manager is mandatory. We are sure that all Units shall adhere to the laid down policies in letter and spirit. If the deviation is more than 25%. at his discretion. where the deviation is to be extent of not having achieved the target.    Sales/05/2007-08 Administrative Control in Field Units 3 of 6 . can sanction such Credit Notes. The RM. then the Divisional Manager shall approve such Credit Notes.

 Sales/05/2007-08 Administrative Control in Field Units 4 of 6 .

a. b. Sales/05/2007-08 Administrative Control in Field Units 5 of 6 . c. c. b.a.

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