1. The document outlines standard operating procedures for monthly cycle counts and analyzing inventory that has been in stock for over 12 months. 2. It describes the timeline, responsibilities, and process for conducting monthly cycle counts at different locations and reporting any stock discrepancies. 3. It also lists the timeline, frequency, and process for analyzing slow-moving inventory over 12 months old on a quarterly basis to improve inventory management.

1. 1. Monthly Cycle Count 2. Inventory > 12 Months Analysis for Provision Standard Operating Procedures

2. SOP – Monthly Cycle Count (1/4) Time Line – No. of Working Days Purchase Stores In charge Manufacturing (OSP) Analysis 7 Finance /Stores In Charge Stock Corrections in System 9 Stores In charge Manufacturing (OSP) Report Out – Send Mail to Materials In- charge, Finance 8 Manufacturing Purchase (OSP) Stores In charge Compilation of Data 6 Manufacturing, Purchase (OSP) Stores In Charge Cycle Counting 5 Stores In charge Release Lists to Individuals for Cycle Counting with CC to Finance 4 Finance Stores In charge Use 80:20 Rule and Identify Parts for Cycle Counting and Send Mail to Finance 3 Stores In charge Convert to Excel and Sort it Based on Value 2 -- Stores In charge Down Load Sub Inventory Report from Oracle 1 Support Responsibility Process Step Nos. 9 9 8 8 Month Close 0 9 10 7 7 6 5 6 4 3 5 2 1,2,3,4 Step Nos. 1 Days

3. SOP – Monthly Cycle Count (2/4) Locations and Value of Stock Top 51% to 80% Items by Value Even Months 100% Year End Stores In charge Stores Customer Support FG Fly Jac Manufacturing & Purchase Floor + OSP Pondy Stores In Charge Stores (GEK + GEC) Manufacturing & Purchase OSP (GEK + GEC) Manufacturing Floor (GEK + GEC) E City Comps Stores In Charge Stores ( Main + Busbar + Mechanical) Manufacturing Top 50% Items by Value Floor E City Responsibility Odd Months Locations Org.

4. SOP – Monthly Cycle Count (3/4) Format for Stock Discrepancy Approval

5. SOP – Monthly Cycle Count (3/4) Report Out Format Variance Approval Threshold Variance up to 1 Lacs Materials In charge Variance Up to 5 Lacs Director Operations Variance 5 Lacs and above CEO Note – If Any repeat Stock Variance Observed for any Part then these are to be reported separately along with detailed analysis and BOM Verification Data E City Comps Floor E City Comps OSP E City Comps Stores Pondy Floor Pondy Stores Fly Jac FG Others BOM Issues Accounting Issues Variance Analysis %age of Variance Stock Not traceable Remarks E City Floor E City Stores Cycle Count Value Cycle Count No. of Lines Total Vari-ance in Lacs Value in Lacs No. of Line Items Location