being:fleet are placed directly by Mats Dept.(WR) based upon the levels of itemsfixed within the financial power of GM (WR). Thedemands are, scrutinized for product identification, stock availabilityincluding in-transit items, manufacturer’s prices, type of spares i.e.consumables, airframe, engine etc.
and approved by HOD(Mats). Approvedsource is identified and order no. is given aircraft wise with all requisiteinformation as per Quality Manual.HODof Materials division at regions are authorized to place order for therequisitioned quantities of items based on the price lists issued by the OEM’si.
e. Requisitionsare initiated, scrutinized and approved at appropriate levels (PPC) by Engg.Staff and demands placed on Materials deptt. Therefore, quantities are fixedand requirements are undisputable.Pricesof items are fixed as per price lists issued by the manufacturers / OEM’s i.
e.Eurocopter, Turbomeca, Kazan helicopters and Bell Helicopter Asia along with percentage of relevant discounts due to longassociation. These prices are not negotiable / alterable.Thiswould increase the efficiency in supply chain management and eliminateadministrative lead time involved in approvals by various departments,authorizes instant ordering and gain supply lead time of suppliers. Financialpowers of the GM(Regions) other than rotables. However, the copies of P.
O. aresent to DGM(Mats) CO for record and monitoring purpose. The sequential steps inprocurement of items are as follows: 1. Afterconfirmation of non-availability of items in stores, the demand is raised bythe /AME indentor i.e. Engg. Deptt.in requisite format duly approved by HOD(Engg.
) & 2. sentto materials dept. However, demands / orders for fast moving items for Dauphin Eurocopter, Turbomeca, Kazan helicopters andBell Asia. This does not entail any 5.The order copies are sent to indentor (Engg), Finance & Mats office copy iskept in Master file.
6. Acknowledgement /dispatch details areobtained from the sub-contractor and are distributed to Mat (import cell), atregion. 7. The import clearance is carried out and theitem is collected and kept in store along with relevant documents.
8.The items collected are offered for quality inspection.9. Thestore inspector carries out receipt inspection as per stores & storageprocedure outlined in QC manual and certifies product as conforming ornon-conforming.
In case ofnonconformity, rejection / discrepancy note is prepared & sent to thesupplier. The item iskept in ‘Quarantine store’. On receiptof clarification/confirmation from the supplier, re-assessment of the item isdone. If the item is stillnon-conforming, it is returned or scrapped as per supplier’s reply.10.The cleared item is brought on charge in store & the user is informedfor collection.11.The documents like invoice, Challans, AWB, copy of customs duty forms, are sentto, Finance for payment/record, as the case may be.
Payment ofBills-Foreign Purchase Items The payment of bills is done for foreignpurchase of both items and services (for repair of unserviceable items). Themechanisms of payment are mainly letter of credit or direct bank transfer. The follow-onsupport contract (FOS) with various suppliers and repair agencies statesexplicitly the mode to be used for payment of bills by PHL.Letter of Credit Letter of Credit is opened in the name ofa particular supplier in the Bank (Banker to PHL). The bank gives documentaryproof to PHL for the Letter of Credit opened.
The supplier requires this proofbefore shipping the consignment. Instructions are given to the bank for paymentto the supplier after receipt of all relevant documents like invoices,certificate of country of origin, packing challan, Release Note / QualityCertificate etc and proper verification. Direct Bank Transfer The procedure followed in the payment ofbills raised by supplier for new items, on PHL through direct bank transfer isas follows: On receipt of theinvoices from the supplier a check is made to ensure that they are in agreementwith the order terms and conditions. 1.
Thedocuments are received by foreign receipt section along with the items. Theinvoices are stamped with PRR and GRAN No. to authenticate the receipt of thematerial for which invoices have been raised by supplier. 2. Theinvoices are attached with the corresponding exchange control copy of Bill ofEntry (BE). 3.
Thedocuments (two sets) are forwarded to the F&A department, Region. 4. TheF&A department will verify the supplier’s claim and forward one set ofdocuments to VIJAYA BANK (Banker to PHL) and retain one set for record5.
Thebank also verifies the invoices and documents like A WB Ref No. and ExchangeControl Copy of Bill of Entry (BE). The payment will be released if thedocuments are in order. ForeignPurchase and Services – Theprocedure to be followed in case of payment for bills raised on PHL forrepaired items is explained in this section. The procedure is same as givenabove for new items except for following addition as given below: Forre-imported items copy of the exchange control copy of Bill of Entry (BE) isforwarded to the RBI as per regulations. The Vijaya Bank is sent informationabout the forwarding of above document to RBI. “Certificate of Origin” document isnot required in re-import cases.
Financial Powers Thefinancial authority for approval of imported items is as mentioned below: Capital Expenditure Above Rs.20,00,000/- BODRs.20,00,000/- CMDRs.10,00,000/- EDRs. 5,00,000/- GM (ENGG)/GM (Regions) DGM(ENGG)Rs. 10,000/- (Region) Revenue Expenditure AOG/RUSH orders: Rs. 5,00,000/-in each case ED Rs. 4,00,000/- in each case GM (ENGG) GM (REGION) Other Spares: Rs.
50,00,000/- GM (ENGG)Rs. 40,00,000/- /GM(REGION)