PJD GROUP STANDING INSTRUCTION APPLICABLE TO : OLYMPIC CABLE (SINGAPORE) PTE LTD DATE OF ISSUE : 01 JULY 2000 OLYMPIC CABLE COMPANY SON BHD

Transcription

1 PJD GROUP STANDING INSTRUCTION SOURCE : OLYMPIC CABLE COMPANY SON BHD GROUP INTERNAL AUDIT CIRCULAR NO: GIA/OCC/SI/01/2000 APPLICABLE TO : OLYMPIC CABLE (SINGAPORE) PTE LTD DATE OF ISSUE : 01 JULY 2000 OLYMPIC CABLE COMPANY SON BHD SUBJECT : PROCEDURES FOR 1. TRADING SERVICES AND INVOICING FOR NON-OCC GOODS 2. DELIVERY AND INVOICING FOR OCC MELAKA DELIVERED GOODS CONTENTS SECTION PARTICULARS PAGE SECTION 1 1. OBJECTIVES SECTION 2 2. PROCEDURES 2.1 Trading Services and Invoicing For Non-OCC Goods 2.2 Delivery and Invoicing For OCC Melaka Delivered Goods APPENDICES FLOWCHARTS 1. Trading Services and Invoicing For Non-OCC Goods 1.1 Order Processing 1.2 Purchasing 1.3 Goods Receiving 1.4 Delivery and Invoicing Of Goods 2. Delivery and Invoicing For OCC Melaka Delivered Goods 5&6 7 8 g 10 EFFECTIVE DATE OF IMPLEMENTATION : IMMEDIATE THIS STANDING INSTRUCTION SUPERSEDES ANY PREVIOUS INSTRUCTION AND PROCEDURES ON THIS SUBJECT APPROVED BY: T SIE^V HONG EXECUTIVE OFFICER

2 SECTION 1 - OBJECTIVES 1.1 Trading Services By Olympic Cable (Singapore) Pte Ltd a. To clearly spell out the rules, documentation and approval processes for trading services. b. To ensure the sales under trading services are delivered and invoiced to the customers on timely basis. 1.2 Delivery and Invoicing For Olympic Cable (Singapore) Pte Ltd For OCC Melaka Delivered Goods a. To clearly spell out the delivery and invoicing procedures to ensure there is proper flow of documents and to ensure the customers are invoiced on timely basis. SECTION 2 - PROCEDURES 2.1 TRADING SERVICES AND INVOICING FOR NON-OCC GOODS * Definition and Rule a. Trading services refers to purchases of non-occ cables from the suppliers/manufacturers to package with OCC goods. Purchasing or trading services shall be kept to a minimum as this is not the primary business objective. b. The general rule to be followed for trading services shall be as follows:- i. when Olympic Cable Company Sdn Bhd, Melaka (OCCM) is not able to supply the ordered cables. ii. no stocking of cables purchased under trading services. iii. 10% profit margin for whole package must be achieved. Trading items purchased can be of lower margin. All such purchases shall be approved by Chief Operating Officer and in his absence by the Chief Executive Officer Ordering Process a. Upon receipt of customers' enquiry, Olympic Cable (Singapore) Pte Ltd (OCS) shall obtain quotations from the suppliers/manufacturers. The quotations from various suppliers/manufacturers shall be evaluated and prices compared. Marketing Manager shall negotiate for better price, if necessary. b. OCS Sale Quotation to customers accompanied with the supplier's quotation and customer's confirmed sale order shall be forwarded to OCCM for approval by the Chief Operating Officer and in his absence, by the Chief Executive Officer. c. Photocopies of the approved OCS quotation to customer, supplier's quotation and customer's confirmed sale order shall be retained by OCCM. The original copies of the documents shall be sent to OCS.

3 2.1.3 Purchasing a. Purchasing shall be made only after the documents mentioned under (b) above have been approved by the named authority. b. OCS Purchase Order shall be raised by OCCM accordingly indicating specification, quantity and price of goods, delivery date and terms of payment. The OCS Purchase Order shall be issued sequentially. c. OCS Purchase Order shall be signed by the COO and in his absence, by the General Manager or Finance Manager. d. The signed copies of OCS Purchase Order shall be distributed as follows: 1 st copy sent to OCS for onword transmission to supplier/ manufacturer 2 nd copy kept by OCCM for accounts payable and payments 3 rd copy sent to OCS for goods receiving 4 th copy kept in numerical sequence (master copy) e. The 1 st and 3 rd copies to be sent to OCS shall be immediately despatched by courier/ express mail to OCS. " f. OCS shall send the OCS Purchase Order (1 st copy) to supplier/ manufacturer by mail, by fax or by hand immediately upon receipt. g. Designated staff from OCS to closely liaise with the supplier/manufacturer for prompt delivery Goods Receiving a. The designated staff performing the receiving function shall have the OCS Purchase Order to check against the goods received. Goods shall not be received without valid delivery order or invoice from the supplier/manufacturer. b. All goods received shall be carefully checked against the specification and quantity indicated in the purchase order and delivery order. c. Recipient must reject items not meeting the purchase specification or shortage in quantity (e.g. cable length) received. The non-conformity should be highlighted immediately to the supplier/manufacturer and indicated on the OCS purchase order and delivery order. Items conforming to the OCS purchase order shall be treated as partial delivery. Designated staff shall follow up for the replacement of rejected items. d. After checking, if the goods ordered per OCS purchase order have not been completely received, the "completed" stamp shall not be used. If the goods delivered are complete and in order, the delivery order shall be signed by the staff receiving the goods and the OCS purchase order shall be stamped "completed" e. The supplier's invoice and delivery order accompanied with the completed OCS purchase order shall be sent by courier/express mail to OCCM within 2 working days of receipt of goods.

4 2.1.5 Delivery and Invoicing a. OCS shall prepare its Delivery Order (OCS Delivery Order) for delivery of goods indicating the customer's sale order number. The OCS Delivery Order shall be signed thereon by Marketing Manager. b. OCS shall make arrangement to deliver the goods to the customer. c. The 1 st, 2 nd and 3 rd copies of the OCS Delivery Order shall follow the goods to the customer for signing and acknowledgement of the goods on all the three copies of OCS Delivery Order. Whilst the goods are in-transit to the customers, OCS shall fax the 4 th copy of OCS Delivery Order to OCCM for preparation of OCS Sales Invoice. d. After OCS Delivery Order is acknowledged and signed by the customer, 1 st copy of OCS Delivery Order shall be retained by customer. The 2 nd and 3 rd copies shall be returned to OCS by the transporter. Thereafter, 2 nd copy of OCS Delivery Order shall be forwarded to OCCM whilst the 3 rd copy is kept by OCS for record on goods delivered. e. Upon receipt of OCS Delivery Order by fax, OCCM shall prepare OCS Sales Invoice (comprising of 4 copies) addressed to the customer. OCS Sales Invoice shall be authorised by the COO and in his absence, by the General Manager or Finance Manager. After authorisation, the OCS Sales Invoice shall be distributed as follows: 1 st copy sent to OCS for onward transmission to customer 2 nd copy kept by OCCM for account receivables 3 rd copy sent to OCS for debt collections 4 th copy kept in numerical sequence (master copy) f. The 1 st and 3 rd copies to be sent to OCS shall be despatched by courier/express mail to reach OCS within 2 working days from the date of delivery of goods to the customer. g. OCS shall send the OCS Sales Invoice (1 st copy) to the customer by mail or hand immediately upon receipt.

5 2.2 DELIVERY AND INVOICING FOR OCC MELAKA DELIVERED GOODS Delivery and Invoicing of Goods a. The delivery, documentation and approval process shall be per existing established procedures. OCCM shall prepare its Delivery Order (OCCM Delivery Order) for delivery and its Sales Invoice (OCCM Sales Invoice) to bill OCS. OCCM Delivery Order and OCCM Sales Invoice shall be authorised by the COO and in his absence, by the General Manager or Finance Manager. 4 th copy of OCCM Delivery Order and 4 th copy of OCCM Sales Invoice shall be retained by OCCM for record. The first three copies of OCCM Delivery Order and first two copies of OCCM Sales Invoice shall be given to the transporter. b. The goods shall be delivered to a central location in Singapore where the OCS staff will acknowledge receipt of goods on the three copies of OCCM Deliver Order. 1 st copy of OCCM Delivery Order shall be retained by OCS whilst the 2 nd and 3 rd copies shall be returned to OCCM by the transporter. As for OCCM Sales Invoice, all copies shall be retained by OCS for record. c. OCS shall prepare its Delivery Order (OCS Delivery Order comprising of 4 copies) for delivery of goods indicating the customer's sale order number. The OCS Delivery Order shall be signed thereon by Marketing Manager. d. OCS shall make arrangement to deliver the goods from central location to the customer in Singapore. The 1 st, 2 nd and 3 rd copies of the OCS Delivery Order shall follow the goods to the customer for signing and acknowledgement of the goods on all the three copies of OCS Delivery Order. Whilst the goods are in-transit to the customer, OCS shall fax the 4 th OCS Delivery Order to OCCM for preparation of OCS Sales Invoice. copy of e. After OCS Delivery Order is acknowledged and signed by the customer, 1 st copy of OCS Delivery Order shall be retained by customer. The 2 nd and 3 rd copies shall be returned to OCS by the transporter. Thereafter, 2 nd copy of OCS Delivery Order shall be forwarded to OCCM whilst the 3 rd copy is kept by OCS for record on goods delivered. f. Upon receipt of OCS Delivery Order by fax, OCCM shall prepare OCS Sales Invoice (comprising of 4 copies) addressed to the customer. The OCS Sales Invoice shall be authorised by the COO and in his absence, by the General Manager or Finance Manager. After authorisation, the OCS Sales Invoice shall be distributed as follows: 1 st copy sent to OCS for onward transmission to customer 2 nd copy retained by OCCM for account receivables 3 rd copy sent to OCS for debt collections 4 th copy kept in numerical sequence (master copy) The 1 st and 3 rd copies to be sent to OCS shall be despatched by courier or express mail to reach OCS within 2 working days from the date of delivery of goods by OCCM. OCS shall send the OCS Sales Invoice (1 st copy) to the customer by mail or hand immediately upon receipt.

6 This Flowchart should be read in conjunction with written procedures Appendix Trading Services And Invoicing For Non-OCC Goods 1.1 Ordering Process a) Receive customer's enquiries. Received customer's enquiries b) Request for non-occ products. c) OCS to obtain quotations from suppliers / manufacturers Obtain quotations from suppliers/ manufacturers d) The quotations from various suppliers / manufacturers received shall be evaluated and price compared. Quotations received shall be evaluate and price compared e) Marketing Manager shall negotiate for a better price. Agree to the quoted prices? After the supplier's quotation has been finalised, the OCS sales quotation to customer shall be formalised by Marketing Manager and sent to customer. Formalise OCS sales quotation and send to customers A

7 This Flowchart should be read in conjunction with written procedures Appendix 1.1 Ordering Process for Non-OCC Goods - continue g) Customer negotiates for lower price or additional discount. h) Marketing Manager shall make the decision whether to accept, revise or reject the request. Customer accepts OCS sale quotation? Customers negotiate for lower price or additional discount i) Receive the customer's confirmed sales order. Received customer's confirmed sales order OCS Sales Quotation to customer accompanied with the supplier's quotation and customer's confirmed sales order are forwarded to OCCM for approval by Chief Operating Officer and in his absence, by Chief Executive Officer. k) Original copies of the documents are sent back to OCS after approval by COO. Photocopies of the above documents are retained by OCCM. Documents sent to OCCM for approval by COO or CEO Original copies of documents after approval sent back to OCS Photocopies of documents retained by OCCM B

8 This Flowchart should be read in conjunction with written procedures Appendix Purchasing a) Purchasing shall be made only after OCS quotation to customer, confirmed sales order and supplier's quotation has been approved by named authority. Purchasing shall be made only after approval b) OCS Purchase Order to purchase non-occ goods from supplier or manufacturer shall be raised by OCCM. Prepare OCS PO by OCCM OCS Purchase Order shall be issued in numerical sequence and indicating specification, quantity and price of goods, delivery date and terms of payment. c) OCS Purchase Order shall be signed by COO and in his absence, by the GM/Finance Manager. OCSPO endorsed by COO/GM/FM d) After approval, the OCS Purchase Order shall be distributed as follows: 1 st copy - sent to supplier/manufacturer 2 nd copy - kept by OCCM 3 rd copy - sent to OCS for goods receiving 4 th copy - master copy e) OCS designated staff shall closely liase with the supplier for prompt delivery. OCS PO are distributed Designated staff to liase with supplier on delivery

9 This Flowchart should be read in conjunction with written procedures Appendix Goods Receiving a) Supplier delivers goods. b) Designated staff performing the receiving function shall have the OCS Purchase Order to check against the goods received. Supplier to comply with the OCSPO Good should not be received without valid Delivery Order or Invoice from supplier. c) All good received must be carefully checked against the specification and quality indicated in the OCS Purchase Order and Delivery Order. Reject the delivery and inform supplier Recipient must reject items not meeting the purchase specification or shortage in quantity received. Yes d) After checking, OCS Purchase Order and Delivery Order should be initialled and stamped to show the goods have been checked and accepted. Acknowledge receipt on DO Items conforming to the OCS Purchase Order shall be treated as partial delivery. Designated staff shall follow up for the replacement of rejected items. e) Supplier's Invoice and Delivery Order accompanied with the completed OCS Purchase Order shall be sent by courier to OCCM within 2 days of receipt of goods. Supplier's Invoice and DO together with OCS PO sent to OCCM D 8

10 This Flowchart should be read in conjunction with written procedures Appendix Delivery and Invoicing of Goods a) DCS shall prepare OCS Delivery Order and indicate the customer's sales order number. OCS Delivery Order must be signed by Marketing Manager. Prepare OCS DO and signed by MM b) Arrange delivery to customer. c) All goods delivered must be acknowledged and signed by customer on all the copies of OCS Delivery Order. Transporter must return all the signed copies of OCS Delivery Order to OCS. d) Acknowledged and signed copies of OCS Delivery Order shall be distributed as follows: 1 st copy - retained by customer 2 nd copy-sent to OCCM 3 rd copy-kept by OCS 4 th copy - master copy The signed copy of OCS Delivery Order is sent back to OCCM within 2 working days from date of delivery for preparation of OCS Sales Invoices and accounting purpose. e) OCS Sales Invoice shall be prepared by OCCM. f) OCS Sales Invoice shall be distributed as follow: 1 st copy - sent to OCS for onward transmission to customer. 2 nd copy - kept by OCCM 3 rd copy - kept by OCS 4 th copy - master copy Distribution of OCS Sales Invoice

11 This Flowchart should be read in conjunction with written procedures Appendix 2 2. Delivery and Invoicing For OCC Melaka Delivered Goods a) The delivery, documentation and approval process shall be per existing established procedures. OCCM shall prepare OCCM Delivery Order and OCCM Sales Invoice to bill OCS. Preparation and approval of OCCM DO and OCCM Sales invoice b) Arrange for delivery to OCS. Arrange for delivery c) All goods delivered must be acknowledged and signed by OCS on all the copies of OCCM Delivery Order. OCS acknowledge receipt of goods on OCCM DO d) Delivery Order shall be distributed as follows: 1 st copy - retained by OCS 2 nd copy - returned to OCCM by transporter 3 rd copy - returned to OCCM by transporter 4 th copy - master copy _L Distribution of OCCM DO and OCCM Sales Invoice D e) Transporter must return all the signed copies of OCCM Delivery Order to OCCM Factory. Transporter returned signed OCCM DO to OCCM f) Go back to process D on page 9 for delivering goods to customers by OCS and invoicing by OCCM. 10