Sample Petty Cash Policy designed with Logistics Business as Model, however it can be applied with or without any modification to any other business process that involves cash transactions. The objective of the policy is to limit and control cash transactions, including receipts and payments, in an organization, and to reduce risks associated with handling cash, while bringing transparency through well defined and codified process, and promoting non cash transactions (viz. digital payments) unless absolutely unavoidable.

1. ABCD LOGISTIC ENTERPRISES
{Business Logo}
Xxxxxxxxxxxxx xxxxxxxxxxxxxx
Xxxxxxxxxxxxx xxxxxxxxxxxxxx
Xxxxxxxxxxxxx xxxxxxxxxxxxxx
 Xxxxxxxxxxxxx  Xxxxxxxxxxxxxx
POLICY NAME Petty Cash POLICY NO. FA/2019/03
EFFECTIVE DATE 01.09.2019 DATE OF LAST REVISION 04.09.2019 VERSION NO. 1.00
ADMINISTRATOR
RESPONSIBLE
S. P. GUPTA
CONTACT
INFORMATION
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxxx
APPLIES TO
Departments All
Locations All

2. Table of Contents
VERSION HISTORY .............................................................................................................................................................................................3
SCOPE................................................................................................................................................................................................................3
POLICY STATEMENT...........................................................................................................................................................................................3
TERMS AND DEFINITIONS..................................................................................................................................................................................3
INTRODUCTION.................................................................................................................................................................................................4
PROCESS FLOW DIAGRAM.................................................................................................................................................................................4
ALLOCATION OF PETTY CASH ............................................................................................................................................................................5
APPLICATION OF PETTY CASH............................................................................................................................................................................5
PROHIBITED APPLICATION ................................................................................................................................................................................6
PETTY CASH MAINTENANCE..............................................................................................................................................................................6
MODES OF TRANSFER .......................................................................................................................................................................................7
ACTION ON DEVIATIONS ...................................................................................................................................................................................7
EXCEPTIONS ......................................................................................................................................................................................................7
REFERENCES......................................................................................................................................................................................................7
ROLES AND RESPONSIBILITIES...........................................................................................................................................................................7
CONTACTS.........................................................................................................................................................................................................7
REVIEW AND APPROVAL ...................................................................................................................................................................................8

3. VERSION HISTORY
SCOPE
This policy applies to every employee, consultant, vendor, sub-vendor of ABCD LOGISTIC ENTERPRISES, or
any legal heir, successors, assigns or representative thereof. It covers all cash expenses at any location.
POLICY STATEMENT
This policy is being issued in order to formalize and regulate the utilization and management of petty
cash located or lying at any premises, whether owned or controlled by the company or otherwise. Petty
cash funds are used primarily for small expenses in the business. Because of its accessibility, petty cash
funds tend to be used without timely and / or adequate reporting and / or supervision. Petty cash can
be issued from Head Office only. Borrowing Funds require various mandatory Statutory Compliances,
hence such activities can only be carried out by the Management. Further, since the government
actively discourages cash transactions, the policy aims to minimize the use thereof, and ultimately
eliminate it.
TERMS AND DEFINITIONS
TERM DEFINITION
Company ABCD LOGISTIC ENTERPRISES
VERSION APPROVED BY REVISION DATE DESCRIPTION OF CHANGE AUTHOR
1.00 04.09.2019 Original Policy S. P. GUPTA

4. INTRODUCTION
ABCD LOGISTIC ENTERPRISES is in the Business of Logistics and Warehousing. It operates from various
locations across the country, through its own or leased premises, with its own or leased vehicles, to ensure
smooth pick-up and timely delivery of goods / consignments of its customers. Efficient utilization of funds
including Cash is key to the operational efficiency. This policy aims at removal of ambiguities and
streamlining of the process by providing precise and uniform process for the effective and efficient
utilization of petty cash funds.
PROCESS FLOW DIAGRAM
PETTY CASH
REQUIREMENT
ESTIMATION
EVALUATE
•Location in Charge
shall work out monthly
local cash requirement
based on policy, past
history and pre-
approved
requirements
APPROVE
•Regional Manager
shall Authorize athe
the beginning of every
every month the
amount of Cash to be
issued
REVIEW
•The Finance &
Accounts Team shall
review and
recommend the final
amount to be
transferred
AUTHORIZE
•The Managing Director
shall authorize the
final amount for
disbursal of petty cash
DISBURSE
•Petty Cash shall be
disbursed by Finance

5. ALLOCATION OF PETTY CASH
Petty Cash requirement would vary, depending on the location and size of the location, and usage.
Wherever Petty Cash is desired, the Petty Cash Requirement Evaluator shall be utilized to determine that
active location’s cash requirements. Past Data (qualitative / Quantitative) and Projections would be
important to work out an average monthly cash requirement. This would be determined by the Location
in Charge by identifying those expenses that can be paid only in cash, which may be allowed by this
policy, and / or are pre-approved by the Human Resources or Administration Team. The Finance shall
also review the trend of past expenses and bill submissions, and recommend suitable adjustment to the
Petty Cash Limit. Thereafter the Managing Director shall authorize the amount of monthly reimbursement
for that location. Location / Branch in Charge shall be responsible for proper utilization of Petty Cash in
compliance of this policy. He shall also be held responsible for unauthorized / unsupported / unexplained
expenses. Petty Cash approval shall cease on the closure of the location’s operation / business, whether
temporary or permanent. If business recommences at the location, fresh approval shall be sought.
Approval is subject to review every year, or more frequently if needed.
APPLICATION OF PETTY CASH
The designated Location / Branch in Charge shall strictly utilize petty cash for the specific purposes with
limitations, which are as follows:
PETTY CASH
UTILIZATION
CYCLE
UTILIZE
• The locations will utilize the
petty cash for essentials and
approved expenses only
REPORT
• Weekly Report shall be
submitted by Location In
Charge
REVIEW
• Weekly Report and Vouchers
would be reviewd for
Discrepancies
TOP-UP
• Approved expenses would
be reimbursed to Top-up the
Petty Cash Balance
• Rejected expenses would be
restored by Branch in Charge
or recovered by Finance
from his Salary

6. Sl Particulars Maximum Limit Conditions
1. Pre-authorized Market Labour
Hire Charges
(Refer Ad-Hoc Labour Hire Policy
for further details)
Rs. 1,000/- per month Pre-Approval from RM
Waybilll / Manifest No. / Location
No. of Pkgs / Weight
Labourer Aadhaar & PAN Card copy
2. Minor Staff Welfare Expenses pre-
authorized by Human Resources
Team
Lower of Rs. 30/- per
Head or Rs. 500/- per
month
Pre-Approval
Bill
3. Minor Repair / Maintenance
Expenses pre-authorized by
Administration Team
Rs. 500/- per month Pre-Approval
Bill
4. Minor Repair / Maintenance
Expenses pre-authorized by
Administration Team
Rs. 500/- per month Pre-Approval
Bill
5. Minor Expenses pre-authorized
by Head Office Human
Resources / Administration Team
Rs. 1,000/- per month Pre-Approval
Bill
6. Guest Entertainment (Food /
Snacks)
Rs. 50/- per Guest Expense Detail required with Bill
including complete guest details
(Name / Designation / Company)
Note: Signature of Recipient is mandatory on Cash Voucher, or attached Bill is marked and signed as
paid. Expenses must have adequate and judicious business justification, as upper limits defined above
are not entitlements. Expenses made over maximum limits will not be approved / reimbursed.
PROHIBITED APPLICATION
The following Regular / Routine Expenses / Vendor bills shall be mandatorily routed through Admin / HR
and shall not be paid through Petty Cash:
1. Rent – Premises / Equipment (including Generator, Computer, Laptop) / Vehicle
2. Electricity Bills
3. Water – Drinking Water / Tanker Water / Water Tax
4. Staff Tea
5. Staff Meal (including Late Night Ad-Hoc Allowance – Refer Ad-Hoc Labour Hire Policy)
6. Mess Expenses
7. Salary / Wages
8. Staff Advances
9. Travel / Conveyance reimbursements including Hand Delivery Charges (refer Travel Policy)
10. Stationery & Printing Consumables (Printer Toner Cartridge, etc)
11. Ad-Hoc Labour Hire beyond Rs. 1,000/- per month (Refer Ad-Hoc Labour Hire Policy)
The following Regular / Routine Expenses / Vendor bills shall not be paid through Petty Cash:
1. Vehicle Hire
2. Diesel / Fuel for Vehicles / Generator
3. “Negative Cash”
PETTY CASH MAINTENANCE
Petty cash disbursed by the Finance shall be judiciously utilized in compliance with this policy. Weekly
reporting of Cash receipts / payments is mandatory. Location in Charge shall mandatorily file the petty
cash statement every weekend indicating the cash received and cash paid. Even if no transaction
happened in the week, a “Nil Report” shall be sent, in the same format. On receipt of vouchers with bills,
petty cash would be topped up subject to compliance. Any deviant payment shall be dis-allowed and
the Location in Charge shall restore the same in his Weekly Petty Cash Statement immediately on
intimation, failing which it shall be recovered from his dues.
Application of cash receipts of the company from Sales to Petty Cash without prior and explicit approval
of the Managing Director is prohibited. Borrowing funds from any source without prior and explicit
approval from the Board of Directors / Managing Director is also prohibited. Cash Balance can never
become negative, as cash cannot be spent without having it. Reporting of “Negative Cash” is an
anomaly which is inherently wrong / illegal / fraud, and is thus prohibited.

7. MODES OF TRANSFER
Payment shall be remitted by Finance through any one of the modes described here:
1. Electronic Fund Transfer to Special Purpose Bank Account
2. Electronic Fund Transfer to Salary Account of Location / Branch in Charge.
3. Transfer to Prepaid / Petty Card
ACTION ON DEVIATIONS
Expenses not incurred in compliance with this policy shall be disallowed and recovered from the Salary
of the Location in Charge. Petty Cash will not be topped up until receipt of vouchers with bills, Any person
engaging in and supporting mis-application of cash for prohibited purposes, especially reporting of
“Negative Cash”, shall be stringently dealt with, including but not limited to recovery from dues,
termination, legal recourse, etc.
EXCEPTIONS
The following locations / purposes are outside the purview of and immune from application of this policy:
1. Head Office / Corporate Office.
2. Specific Purpose Application for specified Location(s) on Managing Director’s Authorization.
REFERENCES
1. Petty Cash Requirement Evaluator V2019.01
2. Weekly Petty Cash Statement V2019.01
ROLES AND RESPONSIBILITIES
ROLE RESPONSIBILITY
Location In Charge Identification, Payments
Regional Head Approval
Finance Head Review, Recommendation, Clarifications
Managing Director Authorization
CONTACTS
SUBJECT CONTACT PHONE EMAIL
Finance Head S. P. Gupta  Xxxxxxxxxxxxx  Xxxxxxxxxxxxxx
Regional Head North Xxxxx xxxxx xxxxx  Xxxxxxxxxxxxx  Xxxxxxxxxxxxxx
Regional Head East Xxxxx xxxxx xxxxx  Xxxxxxxxxxxxx  Xxxxxxxxxxxxxx
Regional Head Central Xxxxx xxxxx xxxxx  Xxxxxxxxxxxxx  Xxxxxxxxxxxxxx
Regional Head West Xxxxx xxxxx xxxxx  Xxxxxxxxxxxxx  Xxxxxxxxxxxxxx
Regional Head South Xxxxx xxxxx xxxxx  Xxxxxxxxxxxxx  Xxxxxxxxxxxxxx

8. REVIEW AND APPROVAL
AUTHORED BY DESIGNATION CREATION DATE REMARKS
S. P. Gupta F & A Head 14.08.2019
REVIEWED BY DESIGNATION REVIEW DATE REMARKS
Xxxxx xxxxx xxxxx Administration Head
31.08.2019 (For Draft V.02) a) Point 11 & 12 in
Prohibited Application be reviewed
and removed accordingly as it has
separate policy.
b) Unplanned/urgent/unorganized
repairs at locations needs to be
considered and not in short limit of
500 or 1000.
c) Further policy pointers can be
deliberated upon in Departmental
Heads meeting.
Xxxxx xxxxx xxxxx IT Head
Xxxxx xxxxx xxxxx Operations Head
02.09.2019 (For Draft V.01) The policy is fine but I
would suggest that Head of expenses
be defined which will be paid in cash
with Exceptions.
Xxxxx xxxxx xxxxx CRM Head
Xxxxx xxxxx xxxxx HR Head
APPROVED BY DESIGNATION APPROVAL DATE REMARKS
Xxxxx xxxxx xxxxx Managing Director 04.09.2019