Minutes 14.08.2024 - FINAL (002) 20.08.2024

MINUTES OF MEETING HELD on 14.08.
2024
Subject:- In order to comply the OM no. M-03/0003/2020-DPE(MoU) dated 22.07.2024,

regarding Assessment of parameter related to TreDS of the MoU’s and action to be taken,
a meeting was held under the Chairmanship of CGM (Purchase) @ 04:00 PM on 14-08-
2024 at Synergy Hall (RCF Admin Building) through VC.
The members who attended the meeting were from Purchase , Contract Cell , Civil & Stores
of Trombay & Thal unit, Finance (Corporate, Trombay, Marketing & Thal), Corporate
Technical & IT section.
The objective of this meeting was to identify gaps in our current processes / procedure
which leads to delay in payment to MSME, understand the reasons for delays, and develop a
procedure to ensure compliance with the MSME act and timely payment to ensure
achievement of 100% marks in MOU and quarter wise reporting to MOU division for FY
2024-25 as mandated in referred OM. The reporting will be from SAP system and to ensure
correct reporting, the following actions/improvements are required.
The following methodology have been agreed to be followed for ensuring compliance of
MSMED Act and referred OM. The minutes of the meeting are as below:
(A) For Purchases/ procurement of goods:
1) In case of any discrepancy/queries related to any documents/delivery/material,
immediate action shall be taken for rejection of PRC and ensure (don’t) not to
allow auto CRAC till the discrepancy is resolved. In GEM portal, timely
acceptance/ rejection action to be taken for CRAC within stipulated time (5 days)
to avoid auto CRAC (Action-Stores/First receiving user)
2) In addition to above, immediately communication/discrepancy note to be raised
to vendor through mail (Discrepancy note) within 15 days of receipt of goods and
all such communications made to vendor, the final communication date on which
the query is resolved will be recorded and need to be attached with GRN and
soft copy in SAP with 105 transaction. (Record has to be maintained which should
demonstrate that query/discrepancy is resolved). The final resolution date has to
be mentioned on face of GRN or invoice for determining correct and accurate
Baseline date which will further calculate correct due date. (Action-Stores/First
receiving user)
3) In case there is delay in doing MIGO (105) /CRAC due to discrepancy, then GRN
(105) can be made in system for material consumed or material passed in quality
parameters but GRN not prepared because of documents not received and in
such case GRN can be done for merely Accounting purpose with the remark
“NOT TO RELEASE PAYMENT………….(Reason). GRN can be forwarded to Accounts
just for Accounting of MIRO even without attaching communication and
documents with remarks “NOT TO RELEASE PAYMENT………….(Reason). This
Activity is to be exercised only at the time of Annual Accounts closing.
4) The user/quality inspection team are also required to take all measures for
timely giving clearance whether to accept or reject the material (within 3 Days of
receipt of material).
5) The store department/user has to immediately forward all GRN’s with CRAC copy
for all clear cases/non discrepant supplies, not later than 11days from receipt of
material, to finance for timely payment.
(B) For Contract Cell/Service/ Civil section/MES/IES/EES :

1. The user/first receiver of the bill has to maintain duly signed date of receipt on
the face of bill received first time in RCF or record for receipt of bills need to be
maintained.
2. In case of any discrepancy/queries related to any documents/service/bill,
Immediate action shall be taken for rejection of PRC and ensure (don’t) not to
allow auto CRAC till the discrepancy is resolved. In GEM portal, timely
acceptance/ rejection action to be taken for CRAC within stipulated time (5 days)
to avoid auto CRAC (Action-Contract cell or concerned user)
3. In addition to above, immediately communication/discrepancy note to be raised
to vendor through mail (Discrepancy note) within 15 days of receipt of
service/bill and all such communications made to vendor, the final
communication date on which the query is resolved will be record maintained
and need to be attached with GRN/SES and soft copy in SAP with 101 transaction.
(Record has to be maintained which should demonstrate that query/discrepancy
is resolved). The final resolution date has to be mentioned on face of GRN/SES or
invoice for determining correct and accurate Baseline date which will further
calculate correct due date. (Action-Contract cell or concerned user)
4. All the certifications/user clearance and queries, if any, from various sections
required as per contract, are to be obtained by the user within 15 days of receipt
of bill.
5. The Net Due Date will be calculated from Baseline date as per terms of contract,
not exceeding 45 days.
(C) Finance section:

1. The date of actual receipt of goods (i.e. 103 date) or in case of discrepancies, the
resolution date will be maintained as Baseline date.
2. The Net Due Date will be calculated from Baseline date as per terms of
contract/PO, not exceeding 45 days.
3. UDYAM no. to be maintained at the time of MSME vendor creation in field IN-7
by vendor creating department and shall be checked by finance department
along with Recon account at the time of PO release.
4. As an extra measure, at PO release stage, the industry key & Recon A/c is to be
verified for MSME as well as other vendors.
5. In case of delayed payments, MSME Interest provision will be done from the Net
Due Date upto the date of actual payment to MSME vendor.
6. As precautionary and an extra measure, Finance concurrence team may check in
SAP for works being awarded to MSME’s (at the time of MOM for work award),
whether the subject L-1 MSME bidder is correctly defined in SAP system as
regards to recon Account, Industry Key etc or not, in case any discrepancy
immediate corrective action may be taken to define the vendor correctly. The
MoM proposing department shall mention the vendor code alongside vendor
name on the MoM, for such checking in SAP. (Trombay team has started this
activity and it has been found that about 20 to 30 regular vendors, who are
MSME but defined as Pvt and recon Account also not defined correctly).
(D) IT Section:-
1. Develop and design a message system to be sent to higher authority upto 2
levels (as per leave hierarchy) for 103 items pending for more than 5 days.
2. Development of quarterly reports system for payments to MSME vendors for FY
2024-25 onwards as required for MoU.
3. It is proposed to flash the message for MSME vendor at the time of MIGO/SES
& MIRO with the help of IT team.
Summarized Checklist and Standard Operating Process (SOP) for ensuring timely payment
to MSME vendors is placed at Annexure A.
We have to be now more vigilant and prompt (as maximum suppliers 80 to 90% are MSE)
for processing of their bills and ensure timely payment to MSE to avoid payment of interest
at three times of Base rate, ensuring compliance of MSMED Act, and securing 100% marks
on MOU rating.
Annexure A: Summarized Checklist and Standard Operating Process (SOP) for ensuring
timely payment to MSME
At Purchase Department/Contract cell or any department who are preparing PO

 On approval of competent authority for placement of Purchase Order / Service
Order, check if the Bidder is MSME or not in SAP i.e. the Industry key is updated with
UDYAM number. If not, then the same shall be immediately updated by respective
PO creating department. (intimate Finance Dept to update the same.)
 Insert the right HSN Code of all the material / Services being procured. If the HSN
Code is blank, update the same through PHS Dept.
 Insert the right tax code
 Check the conditions tab in SAP if the total amount is tallying with Contract value.
 Insert the right delivery date and validity of the Contract in SAP
 Mention the GEM Contract details in SAP
 To place SAP PO immediately after PO placement approval is obtained. (Observation: It is
observed that in some cases SAP PO is created after receipt of invoice from vendor post supply, which ultimately can delay the
payment.)
 To forward the bank details to finance deptt. For new vendors, immediately after
PO/WO placement. New vendor means vendors new to the respective unit. For e.g.
if a vendor is already transacting with Trombay & bank details are available at
Trombay and such vendor is awarded with a contract from Thal, such vendor shall be
treated as a new vendor for Thal and bank details of such vendor shall be forwarded
by PO preparing department to finance deptt. (Observation: It is observed that in some cases bank
details of vendors are not forwarded to finance in time, assuming that this is an existing vendor – since transacting at Trombay.
Subsequently, while making payment, finance finds that bank details of such vendors are not available and requests concerned
department to forward the details which results in delayed payment to vendors.)
 Soft copies of certificates like GST-Regd.No, UDYAM No., etc. shall be attached in SAP
BP for future reference.
At Stores Level/ First entry level who are responsible for doing 103 & 105 or 101
 Intimate the User Dept that material is received for Inspection. E mail seniors if the
User has not completed inspection within 3 days of receipt of Material.
 On receipt of Material especially from MSMEs, identify the discrepancy in the
Material delivery and documents, whether all documents submitted or not as per
PO terms within 3 days to ensure complete delivery.
 If there is any discrepancy, immediately act to reject PRC with reasons and don’t
allow to happen auto CRAC and intimate to the Vendor immediately via E Mail also
and issue a Discrepancy Note. (Keep all records of such correspondence and attach
all such documents with GRN and soft copy of the same may be uploaded in SAP
with 105 Transactions)
 Record the date on which the Discrepancy is finally resolved. The final resolution
date has to be mentioned on face of GRN or invoice for determining correct and
accurate Baseline date which will further calculate correct due date.
 In case of no discrepancy, create the GRN within 10 days of receipt of Material and
immediately forward to Finance for payment.
At Contract Cell/ MES/ Civil/ EES/ TS/ all services department

 The user/first receiver of the bill has to maintain duly signed “date of receipt of bill”
on the face of bill received first time in RCF or record for receipt of bills need to be
maintained.
 In case of any discrepancy/queries related to any documents/service/bill, Immediate
action for rejection of PRC and ensure don’t allow auto CRAC till the discrepancy is
resolved. In GEM portal, timely acceptance/ rejection action to be taken for CRAC
within stipulated time (5 days) to avoid auto CRAC
 In addition to above, immediately communication/discrepancy note to be raised to
vendor through mail (Discrepancy note) within 15 days of receipt of service/bill and
all such communications made to vendor, the final communication date on which
the query is resolved will be record maintained and need to be attached with
GRN/SES and soft copy in SAP with 101 transaction. (Record has to be maintained
which should demonstrate that query/discrepancy is resolved). The final resolution
date has to be mentioned on face of GRN/SES or invoice for determining correct and
accurate Baseline date which will further calculate correct due date.
 All the certifications/user clearance and queries, if any, from various sections
required as per contract , are to be obtained by the user/Contract cell within 15 days
of receipt of bill.
 The Net Due Date will be calculated from Baseline date as per terms of contract, not
exceeding 45 days.
 Contracts where HR NOC is required before processing of invoice, the base line date
for payment shall be considered as (i) the date of submission of invoice in RCF OR (ii)
the date of NOC by HR, whichever is later.
 Soft copies of certificates like GST-Regd.No, UDYAM No., etc. shall be attached in SAP
BP for future reference.
At Finance - PO Release level/Payment level/concurrence level (Common for Purchases/

services and works contracts).
 Check if all the details entered in SAP is as per Approval Note and also ensure to
check correctness of above points like Tax code, MSME, Industry key, payment terms
etc. which the executive/user filling up information while making PO.
 Check the Recon account especially of MSME Bidders i.e. it should be 117002 and
117004 as per category of MSME vendor.
 Check if UDYAM No has been mentioned against MSME Vendor
 The date of actual receipt of goods (i.e. 103 date) or in case of discrepancies, the
resolution date will be maintained as Baseline date.
 The Net Due Date will be calculated from Baseline date as per terms of contract/PO,
not exceeding 45 days.
 Payment to Vendor immediately within due date to be ensured.
 As extra measure, finance department while concurring the files for work award, if L-
1 bidder happens to be MSME then please advice all concurrence team to check the
status of MSME vendor in SAP whether it has been correctly defined or not, in case
there is variation, please immediately rectify in SAP and also enter all details
correctly in SAP vendor master to ensure correctness of vendor master data.
 At the time of processing of invoice in finance, if any discrepancy like short supply,
wrong billing, GST non-compliance, non-submission of E-invoice, etc. is noticed, the
same will be informed to vendor through mail immediately by finance. The baseline
date for payment in such cases will be considered from date of resolution of such
discrepancy.

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MINUTES OF MEETING HELD on 14.08.

Subject:- In order to comply the OM no. M-03/0003/2020-DPE(MoU) dated 22.07.2024,

(B) For Contract Cell/Service/ Civil section/MES/IES/EES :

(C) Finance section:

At Purchase Department/Contract cell or any department who are preparing PO

At Contract Cell/ MES/ Civil/ EES/ TS/ all services department

At Finance - PO Release level/Payment level/concurrence level (Common for Purchases/

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