DHFL-Sales Manuals OK

7/31/2019 DHFL-Sales Manuals OK

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DOCUMENT CODE: MM-Agri-business/2 REV. # 01 PAGE: 1 of 114

ROUTE PREPARED BY: REVIEWED BY: APPROVED BY: REFERENCE

Name: Muhammad Umair Najeeb Hamad Raza Jamshed Nadeem Tariq QMS :

Date:

Design/Sign:BusinessAnalyst

MarketingManager

Senior GeneralManager Agri

Business

DH FERTILIZERS LIMITED

Agribusiness Division

Marketing Manual


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1. DHCL DH Fertilizers Limited

2. AGBD Agri.Business Division

3. MM Marketing Manager

4. RO Regional Offices

5. RM Regional Manager

6. DM District Manager

7. TM Territory Manager

8. MR Marketing Region

9. OC Own Carriage

10. CC Company Carriage

11. B&S Bagging & Shipping

12. MA Marketing Allowance

13. DMA Defer Marketing Allowance

14. SMA Special Marketing Allowance

15. BG Bank Guarantee

16. LC Letter of credit

17. DO Distribution officer


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Purpose and scope:

This document covers the procedures and practices employed for marketing of products and

services at DH Fertilizers Limited.

To assign responsibilities and define methods for different activities involved in the marketing

function.

Distribution List:

Agri. Business Lahore

Distribution Department Lahore

All Regional Offices

All Warehouses

All District Manager (DM), Sales Manager based away from

Regional Offices

Finance Division

Corporate Audit Department

Legal Department/ Division

Issue and Control of Departmental Manual:

This Manual is the property of Agri. Business Division (AGBD) of DH Fertilizers Limited

(DHFL). It is not to be reprinted or duplicated without the permission of AGBD, DHFLManagement Representative and/or respective departmental head.

Departmental Heads or their nominated designations are responsible to maintain their

respective Departmental Manuals and the revision status of its each procedure/section and

Form. They are also responsible to ensure that all the copies are updated and current.

Whenever a need to change in any departmental manual arises, departmental head is

responsible to initiate the change in co-ordination with department/divisional heads.

Revisions are made by replacing a changed section (Procedure/Form) or page. The changed

section/page is given a new revision number (where applicable). In the case where document

does not contain Revision Number, Departmental Head is responsible to retrieve all old copiesof the document from all points of use and issue an updated copy (in such cases the date of

approval will be used to identify the revision status. One copy of approved forms with the

signature of approving authority and date shall be maintained in the Departmental Manual).

The revision status shall also be updated at the Amendment Record of the Manual.

A formal review of the manual is carried out after every five years, in such a case the new

revision number will be given to the manual and revision status of all sections will become

Zero (0).


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This document is not to be duplicated. Any one desirous of having a copy for informational

purposes should contact Marketing Manger who shall issue an UNCONTROLLED copy.

The controlled copies are clearly indicated by a red stamp stating CONTROLLED

DOCUMENT, placed on each page of the manual, while the uncontrolled copies are indicated

by the words UNCONTROLLED COPY written boldly on each page. Uncontrolled copies

shall not be updated.

Compliance with the requirements of this Manual and its referenced documents is mandatory

on everyone within the scope of this Quality Management System.


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Table of Contents:

Section A:Safety

(1) Safety Policy 12

(2) Safety Reporting 12

(2.1) Why to report a safety Incident? 12

(2.2) What is reportable? 13

(2.3) Basic Safety Definition 13

(2.4) Communication Channels for

Reportable Injuries14

(3) Motor Vehicle Accident Guidelines 14

(3.1) Issues of Settlement 15

(3.2) Important 15

(4) Dos & Donts of Defensive Driving 16

(4.1) Dos 16

(4.2) Donts 16

(4.3) Use of safety Belts & Helmets 17

Section B:Security

(1) Security in the field 17

(1.1) In the field 18

(1.2) At Home 19

(2) Security in Regional Offices 19

(2.1) Unauthorized Persons/Materials 19

(2.2) Office Security 20

(3) Air Travel Guidelines 20

(3.1) Suggested Travel Habits 20

(3.2) Suggested Behavioral Habits 21

Section C:Business Ethics

(1) Policy Statement on Business Ethics 22

(2) Business EthicsDos & Donts 23

(2.1) Personal Dealings 23

(2.2) Business Dealings 23


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(2.3) How to evaluate a questionable practice 23

(2.4) Some areas to watch for field

marketing personnel24

(3) Policy Governing Conflicts of Interest 24

(4) Irregularity Reports 25

(4.1) Definition of an Irregularity 25

(4.2) Reportable Irregularity 25

(4.3) Reporting Requirements 26

Section D:Anti-Restrictive TradePractices

(1) Statement of Anti-Restrictive Trade Practice

Policy26

(2) Anti-Restrictive Trade PolicyDonts 27

Section E:Product Quality

(1) Product Quality Monitoring Program 27

(1.1) Product Quality 27

(2) Product/Package Quality Complaint Procedure 28

(2.1) Product Quality Input Form 28

(2.2) P.Q Reports PQ Follow up and

conclusion29

Section F:Marketing Area

(1) Marketing Regions & Marketing Districts 30

(1.1) Marketing Districts 30

(2) Administrative Districts 30

Section G:Dealers

Customer (Channel Management)

(1) Statement of Policy regarding customerrelations

31

(1.1) Marketing Excellence Commitment

Statement32

(2) Dealer

Selection Criteria32

(3) Appointment of Dealer 33


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(3.1) Procedure for Dealer Appointment 33

(3.2) Authorization 33

(3.3) Contact with the Dealer 34

(3.4) Instructions for Execution of Dealer

Agreement35

(3.5) In case the BA is a limited Company 35

(3.6) In case the Dealer is a registeredpartnership

35

(3.7) Inclusion of a new point on the

approved freight list Ex-DH35

(4) Allocation of Additional Sales Point 36

(5) Reallocation of Sales Points 36

(6) Changes in Dealer Particulars

(Name/Address/Other)37

(7) Dealer Performance Monitoring & Review 38

(8) Dealer Termination 38

(8.1) Termination of Dealer Procedures 39

(8.2) Resignation of Dealer 39

(8.3) Customer Complaints 39

(9) Repeat Buying Farmers Appointment 39

(9.1) Contact with the Farmer 39

(9.2) Instructions for Execution of Repeat

farmer buyers agreement41

(9.3) Other terms & conditions 41

(9.4) In case the farmer is a limited

company41

(9.5) In case the farmer is a registered

partnership41

(10) One Time Sales to Farmers 42


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Section H:Sales Operations

(1) Customer Order Generation & Supplies 43

(1.1) Customer order generation 43

(1.2) Supplies Ex-plants & redistributionhubs

44

(1.3) Supplies Ex-port 44

(1.4) Order generation & supplies ex-

warehouse45

(2) Handling of Consignment Shipments 46

(2.1) Ex-plant/ Ex-port Consignment 47

(3) Handling of Rail Order 48

(3.1) RR (Railway Receipt) through Bank 48

(3.2) Retirement of the RRs 50

(3.3) RR (Railway Receipt) through the

concerned DMM/TMM Tech50

(4) Marketing Allowance 50

(4.1) Handling of Marketing Allowances 51

(4.2) Deferred Marketing Allowance 51

(5) Amendments in Customer Order 52

(6) Suspension of Order 52

(7) Product Allocation Procedure 52

Section I:Sales on Secured Credit

(1) Bank Guarantee 53

(1.1) Objective 53

(1.2) Policy 53

(1.3) Dealer Bank Guarantee Procedure 53

(1.4) Buyer Bank Guarantee Procedure 55

(1.5) Letter of Credit Procedure 55

(2) Retirement of the Bank Guarantee 56

(2.1) Policy 56


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(2.2) Procedure 57

(2.3) Payment through Bank 57

(2.4) Payment through Region 57

(2.5) Unsecured Credit 58

Section J:Controls

(1) Limits of Authority 58

(2) Checking Warehouse Invoices by DMM/TMM

Tech58

(3) Disclosure of Possible future allowances 59

(4) Fixed Assets Control 59

(4.1) Areas of Activity 59

Section K:Time & TerritoryManagement

(1) Travel Planning 61

(1.1) Safety 61

(1.2) Marketing Objectives 61

(1.3) Complete knowledge of geography &

loops61

(1.4) Overnight stays 62

(1.5) Cost Control 62

(2) Weekly Itinerary Report 62

(3) Travel Loops 62

(4) Business Associate Contact Books 63

Section L:Planning & Stewardship

(1) Development of Sales Forecast 64

(2) Expense Budget 64

(3) Investment Plan 65

(4) District Operating Plan 65

(5) Stewardship 65

Section M:Vehicles (1) Maintenance of Area Travel Sheet for POL,

Repair & Reimbursement66


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(2) Vehicle Maintenance 67

(2.1) Why need for vehicle maintenance 67

(2.2) Guidelines/Tips on vehiclemaintenance

67

(2.3) Daily Inspection 67

(2.4) Monthly Inspection 68

(2.5) Weekly checks 68

(2.6) Quarterly Inspection 68

(3) Registration & Taxes 68

(4) Car Insurance 69

Section N:Administrative Procedure

(1) Permanent Travel Advance 70

(1.1) Procedure for permanent travel

advance70

(2) Petty Cash Funds 70

(2.1) Introduction 70

(2.2) Objective 71

(2.3) Creation/Changes in Petty Cash fund 71

(2.4) Change in Custodian 71

(2.5) Reduction & Abandonment of the PC

Fund71

(2.6) Use of Petty cash fund 72

(2.7) Petty cash disbursement Voucher &

its reimbursements72

(2.8) Reimbursements 73

(2.9) General Ledger Accounts 73

(2.10) Verification of PC Funds 73

(3) Procedures for Safeguarding Company

Information73

(3.1) Classification of DH information 73


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(3.2) Authorization to classify information

as DH prosperity or DH75

(3.3) Restrictions on disclosure of DH

information

75

(3.4) Restrictions on opening envelopes

containing DH classified information75

(3.5) Protection & handling of DH classified

information76

(3.6) Transmission of DH classified

information77

(3.7) Declassification of DH classified

information77

(3.8) Disposition & Destruction 77

(3.9) Area controls 78

(3.10) Loss or unauthorized disclosure 78

(3.11) Unclassified information 78

(3.12) NonCompany generated information 78

Annexure


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c. To identify areas for improving and developing safety programs.

d. To inculcate safety habits, among employees.

A specimen of the standard reporting format is enclosed as Annexure 2-1

(2.2) What is Reportable?

Any incident, on or off-the-job, resulting or likely to result in:

a. Fatality

b. Injury leading to

i) Lost Work Day

ii) Restricted Work

iii) Medical Treatment.

c. Damage to Company assets/vehicles


(2.3) Basic Safety Definitionsa. Fatality:

A death resulting from a work injury or occupational illness.

b. Lost Work Day (Unable to Work):

An injury or occupationally-induced illness which results in the employee being

away from work on any workday following the incident. Note that when

calculating time lost, the day of the injury is not counted. Counting starts with

the following lost workday. Such injuries are also referred to as disabling

injuries.

For cases which are not clear-cut, the following test should be applied:In some cases, an injured or an ill employee will miss one or more scheduled

days or shifts besides the day of injury or onset of illness, but it will be uncertain

whether the employee was truly unable to work on the days missed. The

employer should not solely rely on the physicians opinion. He should make the

final judgment himself based on evidence at his disposal.

c. Lost Workday Case-Restricted Duty:

An injury or occupationally induced illness which prevents the employee from

performing the normal duties of his regularly assigned job on any workday

following the incident. When calculating time lost, the same considerations

apply as noted above.

d. Non-Lost Workday Cases:

All other medical treatment cases, except simple first-aid cases. The basic

guideline is that treatment must be given by a doctor, nota nurse (e.g. stitches).

e. Contractor unable to Work:

Same definition as (b) above.

f. Off the Job Unable to Work:


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Any injury sustained in the employees own time which results in the employee

being away from work on any workday following the incident. Absenteeism due

to illness is excluded.

(2.4) Communication Channels for Reportable Injuries

Deadline for Reporting to Lahore Head Office:

This is immediate, after administering medical aid which should be the first

priority. For field conditions, where immediate communications may pose a

problem, efforts should be made to report the incident not later than within 10

hours of occurrence.

Communication Responsibility Line:

The primary responsibility line, for communicating reportable incidents, will flow

as follows:

i) Advisor/RMMs/MMii) Marketing Manager

iii) Functional Executive (Sr GM Agri. Business)

iv) CEO

In the absence of the functional departmental manager, the functional executive

(Sr GM Agri. Business) should be informed. If the functional executive is not

available, the CEO may be informed.

In case persons with primary responsibility are out of town, on vacation or not

available, the reporting line will move down as follows:

i) Chairman, Non-Manufacturing Safety Committee

ii) HR Manager

iii) Any other Department Manager

(3) Motor Vehicle Accident Guidelines

In case of an accident or injury to a person, or animal, or damage to property, it is the duty

of the driver of the vehicle involved in that accident, to:-

a. Make every possible effort to secure medical attention for the injured person. If it is

necessary to take the injured person to a hospital then he should be taken to the

nearest hospital unless the injured person (or guardian in case of a minor) desires

otherwise.b. Endeavor to locate the owner and report the injury caused to an animal and take all

reasonable steps to secure medical attention for the animal.

c. Report damage caused to property to the party sustaining the damage. (The word

Property will include a parked vehicle without a driver).

If no police officer or any person from the authorities is present at the place of the

accident, then the accident (all three categories as above) must be reported to the

nearest police station as soon as possible but not later than 24 hours of the accident.

It is obligatory on the driver or the owner of the vehicle involved in an accident to:


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a. Supply on demand all information relating to the accident to the police officer or any

other officer authorized by the government in this respect.

b. Assist in inspection of the vehicle involved in an accident by any person authorized by

the government and for that purpose, that person may enter at any reasonable time

the premises where the vehicle is kept and remove the vehicle for inspection.

However, the person removing the vehicle must inform the owner of the place to which thevehicle is removed and must return the vehicle without delay and not later than 48 hours of

removal.

Punishment for non-complying with the legal requirements as mentioned above (taken

from the Provincial Motor Vehicle Ordinance 1965) can extend to a fine or imprisonment

under the Motor Vehicles Ordinance.

(3.1) Issues of Settlement

Sometimes, a settlement is reached between the driver and the injured person or a

guardian of the deceased or of an injured person as the case may be. In that case,

a. A proper receipt for the amount thus given should be taken from the other party.

b. The receipt should be in the form of a release from further legal action and in

full and final settlement of the claim.

c. Once a settlement is reached, the driver and the aggrieved party both should

bring this fact to the knowledge of the police officer present at the spot or at the

police station as the case may be.

d. The statement of the aggrieved party to the police that they have been

adequately compensated and have no action against the driver will be helpful in

resolving the matter and the police may not wish to proceed against the driver.e. It should be clearly realized that this settlement will be a private arrangement

between the parties and would not absolve the driver or the owner of the

vehicle from legal obligations like reporting and criminal action.

f. Other passengers traveling in the vehicle involved in an accident are not

obliged to record their statements at the time when the matter is reported. They

may however be called upon later to give evidence if a case is filed.

(3.2) Important:

A person driving a motor vehicle is under a duty to control it. The negligence of one

party cannot excuse negligence on the part of the other party.

All accidents/incidents whether major or minor, involving Company vehicles or

other transport resulting in injury to the employee/third party or damage to

Company property/ property of third party should be reported immediately within 4-

6 hours of occurrence through the Marketing Manager to the Chairman, DH, Non-

Manufacturing Safety Committee.


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(4) Dos and Donts of Defensive Driving

The most important safety factor is competent driver paying attention to the task behind

wheel. Below are some tips on defensive driving in the form of DOs and Donts. The

objective is to focus on the most important specific areas of driving (habits and situations)

having risk potential and to draw conclusions for defensive and safe driving.

(4.1) DOs

a. When driving, practice the three Cs: Control, Concentration and Courtesy.

b. Have well planned schedules, leave early and complete the day before dark.

c. Ensure personal fitness before traveling.

d. Lock your car and lock the steering while parking.

e. Wear seat belts at all times and ensure that the passenger in the front seat also

wears them.

f. Drive at safe speeds even on clear open stretches or good highways.

g. When there is light or initial rain, apply brakes carefully/gently as the roadsurface is greasy and slippery.

h. Be careful of tractor trolleys whether moving or parked.

i. When you see people who intend crossing the road, slow down considerably

and watch their movements

j. Allow speeding buses or trucks to overtake you.

k. Be careful of cyclists and pedestrians.

l. Blow your horn when you intend to overtake to alert the other driver.

m. When traffic from the opposite has full lights on, dip your lights and be extra

cautious if overtaking other vehicles.

n. When approaching a town, drop to a safe speed (say 20-50 km/hr as needed)

o. When nearing small towns always slow down and be extremely careful to watch

out for speed-breakers.

p. When passing a stationary bus, reduce speed, use the horn and be careful of

passengers crossing the road from in front of the bus.

q. On the road, beware of animals and animal-driven carts.

r. Park the car away from moving traffic.

s. Carry a torch in your vehicle at all times.

t. Slow down considerably under wet conditions.

u. Make allowances for the mistakes and poor driving habits of others.

v. If it is raining very hard and you cannot see properly, pull over to the side of the

road and wait till the rain decreases.

(4.2) Donts

a. Do not overtake on curves and bridges and if a solid line is on your side of the

road.

b. Minimize driving after dark.

c. Avoid deserted roads and risky short cuts.

d. Do not give lift to strangers including women.


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e. Do not carry firearms.

f. Do not flaunt money at petrol stations or other public places.

g. Do not drive if under the influence of strong medical drugs or alcohol.

h. Do not race with other drivers.

i. Try not to smoke while driving and never smoke at petrol stations.

j. Do not overtake when there are two vehicles ahead of you and one is trying toovertake the other.

k. Never tailgate, keep two vehicle lengths for each 10 km of speed between you

and the vehicle in front of you. Or 3 second distance

l. Do not use cell phone while driving. If it is necessary stop your car off the

road and attend the call.

(4.3) Use of Safety Belt and Helmets

All company cars provided to employees are equipped with safety belts for the

driver and the co-passenger on the front seat.

It has been established that the use of a safety belt by the driver of a vehicle and

co-passenger considerably diminishes the risk of injuries or fatalities in case of

road accidents. Recognizing the usefulness and importance of safety belts as a

critical safety tool, DHFL has made it mandatory for its employees to use safety

belts while driving company as well as private vehicles.

It is also the responsibility of the driver to ensure that the co-passenger at the front

seat also uses the safety belt.

The Company provides the facility of sharing half the cost of seat belts (if not

already present) to employees who do not have a company car and drive their owncar. Motorcycle drives in the organization are required to wear helmets while

driving. Similarly, the company shares half the cost of helmets for employees who

use their own motorcycles.

Section 'B': Security

(1) Security in the Field

Definition:

Security can be defined as counter measures adopted by a person or group of persons

to safeguard company personnel, assets and information.

Field personnel are often exposed to situations involving potential risk to their security.

This is mainly because of the following reasons:

a. Their job involves substantial traveling on highways.

b. The law and order situation may become really bad in some suburban

towns/highways where we operate.


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c. A field officer of DHFL, because of his background, has relatively higher visibility in

the town where he lives.

The following are some possible hazards to which field personnel are exposed during

the course of business:

a. Hold up or robbery on the road.b. Kidnapping

c. Sabotage

d. Political and ethnic disturbances

Field personnel as such should be extremely careful and should watch out for any

potential situation involving security. It is always better to anticipate and take

preventive measures well in advance. Prevention and avoidance of security risks is

paramount.

Since a Field Officer operates from his residence, he receives a number of visitors at

his home. His residence, as such becomes accessible to strangers.Below are some guidelines which may help avoid a possible security related situation

in the field as well at home.

(1.1) In the Field:

a. Park your car off the streets at night and, if possible, keep it in a locked garage.

b. Always lock your car, even when parked in a garage. Always engage the

steering lock when the car is parked.

c. When approaching your car, be attentive to any signs indicating it could have

been tampered with (doors, windows, hood, trunk, wheels, etc.)d. Keep windows up and doors locked from the inside.

e. Know your city well

f. Avoid civil disturbances and crowds.

g. Do not give lifts to strangers

h. If you have a driver, do not distract him with conversation.

i. Stay alert and know what is going around you. Do not read or be excessively

engrossed in your thoughts enrooted.

j. Keep the volume of the stereo down

k. To the extent possible, avoid routine in the routing and timing of your

movements to and from work and in the field.l. If possible, drive through well-illuminated and much-used routes.

m. When you must stop due to traffic conditions, try to leave yourself space for

maneuverability.

n. If you believe you are being followed by another car, do not drive into your

driveway or park in a deserted area. Try to drive to the nearest place where you

can get help, such as a police station, fire station, etc. and call peoples

attention by sounding the horn.


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o. When you are not at home or the office, leave word of where you are and be in

contact with any one over the telephone. Let your family know at what time you

should be expected, back.

p. Avoid late night travel.

(1.2) At Home:

a. Have your doors and windows locked at all times. Make sure your locking

devices are effective.

b. An optical peephole is very useful on the front door.

c. Have exterior lights on at night. There should be no dark areas in the perimeter.

d. Keep all drapes closed at night.

e. Keep at hand emergency telephone numbers (police, fire station, hospital, etc.)

f. Investigate the background of domestic servants before hiring them.

g. Do not open the door to strangers until you are certain they have a valid reason

to see you. Even if they are in police or messenger uniform in case of doubt,

call the police station before opening the door.

h. Report any suspicious packages, bicycles, cans, jars or other objects left in ornear your home. Do not touch or attempt to touch any object yourself.

i. Refuse to accept unsolicited packages, or require the bearer to open it as far

away from you as possible. Instruct your family and servants to do the same.

j. Do not keep valuable jewelry or excessive cash at home.

(2) Security in Regional Offices

Given below are some guidelines relating to the aspect of security in regional offices.

(2.1) Unauthorized Persons/Materials:

a. Do not allow any stranger to come inside the office unless his credentials are

known or checked and confirmed by office inmates through the national identity

card or DHFL identity card.

b. Do not allow anyone to bring firearms, axes or knives inside the office

premises.

c. Do not allow anyone to bring or place petrol, kerosene oil or any combustible

liquid or explosive material inside the office premises.

d. Do not allow any visitor to leave handbags, packets, briefcases or suitcases in

the office premises during their absence from the office.

e. Do not attempt to search, touch or dislocate a strange or suspicious object or

package/case/box yourself. Inform the local police immediately.

f. Do carry out periodic physical inspection of the office to familiarize all

concerned with the areas where a device (bomb/explosive) might easily be

concealed. Keep such areas under your constant observation.

g. Do keep a sharp lookout to detect any new suspicious item in or around office

premises.


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(2.2) Office Security:

Some Dos and Donts

a. Dos lock your office door, desk, credenza, filing cabinets and steel almirahs

securely, before leaving your office even for a short while.

b. Dos check all desks, credenzas, filing cabinets and steel almirahs for being

properly locked before locking the main door of the office after office hours.c. Dos ensure padlock arrangements on those filing cabinets which are used

for PRIVATE AND PROPRIETARY information/correspondence

d. Dos be careful in safe keeping of your office keys.

e. Dos keep valuable portable materials and equipment like typewriters,

calculators, projectors, etc. which is easily removable, in properly secured

desks or almirahs. Dont leave these items lying around on the table when

you are not in the office.

f. Dos keep a duplicate set of the office keys at home.

g. Dos get your office cleaned by janitors during working hours to avoid

opening up of your offices after working hours.h. Dos report any cases of loss or theft of items from your office premises to

your supervisor immediately on occurrence.

i. Dos check the doors of all offices for being securely locked if you are the

last person to leave the premises after working hours.

j. Dos ensure that your window air conditioners have an iron grill on the

outside. This will prevent anyone from removing the AC from outside.

k. Dos switch off the AC and office lights before locking the office front door

after office hours. This will eliminate any chances of short-circuiting and

outbreak of fire.

l. Dos switch on the lights fixed outside the office building before leaving thepremises after office hours.

m. Dos ensure that all areas outside and around your office premises are

adequately lighted at night. Remember, adequately-lighted buildings from

outside are difficult to break into. Lights also compensate for the absence of

security watchmen.

Donts

a. Dont keep keys of filing cabinets, credenzas, and steel almirahs in your

office. Keep these keys with you on your person.

b. Don't keep cash in your desk or credenza etc. in the office. Don't leave your

wallet, gold ring or other valuables on your desk.

(3) Air Travel Guidelines

(3.1) Suggested Travel Habits

a. Be a low profile traveler.

b. Avoid identifying yourself as being associated with DHFL. Company travel

bags, stickers, etc. should not be visible on any of your luggage.


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c. Avoid carrying sensitive company documents or any document that could be

construed by hostile eyes as government documents or intelligence material.

If there are sensitive papers vital to your trip, consider mailing them to your

destination.

d. Always inform your office and host of your travel plans and report promptly any

deviation from your initial plan.e. Reduce to a minimum your presence in those airport sections which are open

to the general public. While in those areas be vigilant and alert. Report

immediately to airport staff anyone or anything which looks suspicious.

f. Try to travel light. This will reduce exposure at the check-in counter which is

open to the general public.

g. Register well in advance of the regular minimum deadline time and proceed as

quickly as possible to the departure lounge area which is the airports secure

zone.

h. Seek non-stop carriers to your destination.

i. Avoid airlines which represent countries identified by terrorists as likely targets.

(3.2) Suggested Behavioral Habits

a. In any hijack situation, it pays to be inconspicuous.

b. Do your best to control your emotions. Fear of the unknown, apprehension and

concern for the uncertainty of events are to be expected. Prepare yourself to

cope with them.

c. Try not to be consumed by worry for your family. Have confidence that a

positive, supportive effort will be made to keep your family posted and assisted.

d. Be judicious in your consumption of food and beverage. The opportunity to take

care of normal bodily functions is known to be severely restricted in the earlystages of hijack episodes.

e. It is important that you promptly try to do what your captors insist on in order not

to make your ordeal any worse than it already is.

f. When the opportunity presents itself, do your best to show your captors that

you are a caring human being, not the stereotype they think you are.

g. When your captors ask you questions, try to answer as simply and directly as

possible. This is not the time to play games, and its not the time to talk too

much either.

h. Control any temptation to act as a negotiator. There is little reason to think such

an effort has much chance of succeeding. You just risk complicating thesituation further.

i. Fight temptation to embark upon a heroic adventure without clear evidence that

such a plan can succeed. To further endanger yourself and others as the result

of an unsuccessful attempt is foolhardy.

j. If shooting starts or an explosion occurs hit the ground and maintain the lowest

possible profile and stay that way until the rescue force gives you instructions

on what they want you to do. Expect blinding flashes of light and frightening


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explosive noises - but do not get up to and run or look around at whats

happening, it could cost you your life.

k. Do not get trapped into any debates or arguments on political or religious

issues with your captors or fellow hostages.

l. Brooding is to be avoided. Figure out what constructive thoughts can occupy

your mind.Section C: Business Ethics

(1) Policy Statement on Business Ethics

The policy DHFL, as stated over the years by the Board of Directors, is one of strict

observance of all laws applicable to its business.

Our policy does not stop there. Even where the law is permissive, DHFL chooses the

course of the highest integrity. Local customs, traditions and modes differ from place to

place, and this must be recognized. But honesty is never subject to criticism in any culture.

Shades of dishonesty simply invite demoralizing and reprehensible judgments. A well-founded reputation for scrupulous dealings is itself a priceless company asset.

An overly ambitious employee might have the mistaken idea that we do not care how

results are obtained, as long as he gets results. He might think it best not to tell higher

management all that he is doing, not to record all transactions accurately in his books and

records, and to deceive the Companys internal and external auditors.

He would be wrong on all accounts.

We do care how we get results. We expect compliance with our standards of integrity

throughout the organization. We will not tolerate an employee who achieves results at the

cost of violation of laws or unscrupulous dealing. By the same token, we will support andwe expect you to support an employee who passes up an opportunity or advantage which

can only be secured at the sacrifice of principle.

Equally important, we expect candor from managers at all levels and compliance with

accounting rules and controls.

We do not want liars for managers, whether they are lying in a mistaken effort to protect us

or make themselves look good. One of the kinds of harm which results when a manager

conceals information from higher management and the auditors is that subordinates within

his organization think that they are being given a signal that company policies and rules,

including accounting and control rules, can be ignored whenever inconvenient. This can

result in corruption and demoralization of an organization. Our system of management will

not work without honesty, including honest book keeping, honest budget proposals, and

honest economic evaluation of projects.

It has been, and continues to be DH Fertilizers Limited policy that all transactions shall be

accurately reflected in its books and records, and any off-the-record bank accounts are

strictly prohibited.

This policy is in accord with the previously stated policies of DH Fertilizers Limited.

(2) Business EthicsDos and Don'ts


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There will be quite a few situations in our daily work related to business ethics which may

require a company employee in the field to exercise his best judgment to act strictly in line

with the business ethics policy. Although it is difficult to enumerate each one of these

situations, some of the common ones related to our personal and business

dealings/operations are given below with required action guidelines.

(2.1) Personal Dealings:

Giving or taking gifts should be avoided to the maximum. However, if confronted

with an unavoidable gift-giving or gift-taking situation, please make sure that gifts

exchanged are of nominal value not exceeding US$ 15 as defined in DHFL s Gift

policy.

a. It is preferred that all such receipt of gifts be reported to the immediate

supervisor seeking his guidance on whether the gift can be retained by the

employee or will need to be surrendered to DHFL Audit department for future

course of action.

b. Entertainment should only be related to business and the cost should be smallin relation to salary of the person being entertained.

c. Accept in entertainment only what you are able to return.

(2.2) Business Dealings

All employees are expected to be scrupulously honest in business dealings. For

example:

a. Never do a job or get a job done through payoffs/bribes.

b. Always do accurate reporting of all facts.

c. Never let anyone else act unethically on your behalf.Do not provide misleading, incomplete and inaccurate information documentation.

For example:

a. Show all discounts on the invoice (if deferred, indicate so)

b. Provide correct data on customer documentation.

c. Provide clear, accurate description of transactions on all documents.

d. Follow company policy and get the changing policy in written for record.

(2.3) How to Evaluate a Questionable Practice:

When confronted with a questionable practice, the following questions help inevaluating it in relation to business ethics;

a. Do we know all the facts?

b. Is it lawful?

c. Why is it being done this way?

d. How would it appear to an outsider?

e. Are we trying to get an advantage not available to others?

f. How would it look, if it appears in a newspaper?


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(2.4) Some Areas to watch for Field Sales Personnel:

a. Diversion of product to be properly reflected in all records

b. Invoice the actual customer who gets the product from the warehouse

c. Dont allow product dumping specially under OC shipping mode

d. Sell to company Dealer and farmers, meeting the specified criteria.

e. Clearly advice Dealer approved terms of sale.f. Supply properly weighed (full weight) bags to Dealers

g. In case of sales from a warehouse, ensure that invoicing is done at the time of

sale and not before or after the sale, i.e. strictly according to the Warehouse

Operations Manual.

h. Ensure that warehouse operations are in accordance with law and policy.

i. Authorize overtime which is factual and within limits

j. Give equal opportunity/preference to all customers.

k. Avoid committing sales when not sure of supplying the product.

And above all...Follow company policy on all matters. However, if confronted with a

questionable practice, immediately communicate facts as far as possible before

the event, to your supervisor/Sales Manager and seek guidance on how to act.

(3) Policy Governing Conflicts of Interest

The policy of Dealer(Company) with respect to conflicts of interest requires that officers

and employees avoid any conflict between their own interests and the interests of the

Company, in dealing with suppliers, customers, and all other organizations and individualsdoing or seeking to do business with the Company or any affiliate. Moreover, policy

requires that all such persons should avoid any conflict between their own interests and

the interests of the Company in the conduct of their personal affairs, including transactions

in securities of DHFL of any affiliate, or of any unaffiliated corporation having a business

relationship with DH Fertilizers Limited interests.

While it is not practicable to list all situations which might give rise to a violation of this

policy, the examples given below indicate some which, while perhaps justifiable, involve

the appearance of conflicts of interests and they should be carefully weighed.

It is considered to be in conflict with the Companys interest if:

a. For an employee or any dependent member of his or her family to have an interest in

any organization which has or is seeking to have, business dealings with the company

or any affiliate where there is an opportunity for preferential treatment to be given or

received, except

With the knowledge and consent of top management.

Where such an interest comprises securities in widely held corporations, which

are quoted and sold in the open market, or in private corporations where the

interest is not material.


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b. For an employee or any dependent member of his or her family to buy, sell or lease

any kind of property, facilities or equipment from or to the Company or any affiliate or

to any company, firm or individual who is or is seeking to become a contractor,

supplier or customer, except with the knowledge of top management.

c. For an employee or any dependent member of his or her family to acquire and hold

oil, gas or mineral leases, royalty interests or oil payments, except with the knowledgeof top management.

d. For an employee to serve as an officer or director of any other company, or in any

management capacity for, or as a consultant to any individual, firm or any other

company or any affiliate, except with the knowledge and consent of top management.

e. For an employee, without proper authority, to give or release to anyone not employed

by the company any data or information of a confidential nature concerning the

Company or any affiliate, such as that relating to decisions, plans, earnings, financial

or business forecasts, discoveries or competitive bids or otherwise use such

information which is not generally known to the public, for personal advantage and not

in the best interests of the Company. For example, the acquiring and selling, or

inducing others to acquire or sell, any interest in securities of DHFL or any other

company involved in any transactions with the Company or any affiliate.

f. For an employee or any dependent member of his or her family to accept

commissions, a share in the profits, gifts in cash, gift certificates, travel or other

payments, loans or advances (other than from established banking or financial

institutions on normal commercial term), materials, services, repairs or improvements

at no cost or at unreasonably low prices, excessive or extravagant entertainment, or

gifts of merchandise of more than nominal value from any organization, firm or

individual doing or seeking to do business with the Company or any affiliate, or for

personal advantage and not in the best interest of the Company and to provide any of

the foregoing to any such organization, firm or individual.

(4) Irregularity Report

(4.1) Definition of an Irregularity:

Irregularities are conditions or events which raise the question whether there has

been a deviation from the Policy on Business Ethics or the occurrence of fraud,

unauthorized use or appropriation of company assets, or use of position or

information received in trust in performance of duties by an employee for personal

gain in conflict with the Companys interest.

(4.2) Reportable Irregularities:

Irregularities described below should be reported even though the full amount

involved has been or will be recovered.

a. Any condition or event where there has been a violation or a probable violation

of DHs policy of Business Ethics. For example, intentional or negligent violation

of laws applicable to the companys business, improper payment to government


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officials or others, concealment of information from the companys

internal/external auditors.

b. Misappropriation of cash, inventories, plant or equipment or other company

property by employees or agents.

c. Losses suffered as a result of dishonest acts by suppliers, contractors or

others; for example falsification of their records such as billing for labor ormaterial.

d. Thefts, burglaries, robberies and hold-ups involving company property.

e. Disappearance or unexplained loss of company assets.

f. Losses or suspected losses of company proprietary information.

g. Losses suffered by those with whom the company does business (customers,

suppliers, contractors) due to dishonest acts by company employee or agents.

h. Conflicts of interest and other significant or unusual irregularities which may not

necessarily involve the loss of Company assets.


(4.3) Reporting Requirements

When an irregularity is discovered, a report of Irregularity should be prepared by

the Manager or Supervisor of the concerned section and submitted immediately to

his Supervisor who will then process it further. The initial report should be prepared

and forwarded as soon as the irregularity is discovered. This should be based on

whatever information is available at the time. If additional data or information

becomes available, this should be provided in a subsequent report.

Section 'D': Anti-Restrictive Trade Practices

(1) Statement of Anti-Restrictive Trade Practices Policy:

It is the policy of DH Fertilizers Limited that all of its directors and employees shall, in

carrying out their duties to the Company, rigidly comply with the Monopolies and

Restrictive Trade Practices (Control and Prevention) Ordinance, 1970.

No director or employee should assume that the Companys interest ever requires

otherwise. Moreover, no one in the Company has authority to give any order or direction

that would result in a violation of this policy.

It is recognized that on occasion there may be legitimate doubt as to the proper

interpretation of the law. In such circumstances, it is required that employees refer the

case through appropriate channels to the Legal department for an opinion.

(2) Anti-Restrictive Trade Policies - Donts:


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There are certain things that the employee of a Company may not do. This is not an

exclusive list but states the basic rule with which all the employee should be familiar. We

may NOT

a. Make any formal agreement with any competitor regarding the price or other terms for

which the company will sell products to its customers.

b. Discuss with any competitor the Companys future intentions regarding prices or otherterms of sale for its products, nor may the company participate in or even attend trade

association meetings if such matters are to be discussed.

c. Agree formally or informally with any competitor to divide individual customers, a class

of customers, or a geographic market.

d. Agree formally or informally with any competitor to establish quotas or otherwise limit

the supply of any product sold by the Company.

e. Agree formally or informally with another company to boycott or blacklist a customer,

a competitor or supplier.

Section 'E': Product Quality

(1) Product Quality Monitoring Program

For the pursuance of a regular product quality monitoring program, field officers are

required to monitor the product quality of DH Chemicals Limited and Competitors Urea

on monthly basis in the field. Following is the procedure for monitoring product quality in

the field.

(1.1) Product Quality:

Every month one field officer/district/territory manager from each region sends 01sample of DHFL Urea and 01 sample of each Competitors Urea (drawn

simultaneously on the same day) to laboratory incharge, DH Fertilizers Limited.

Details of the sample are documented on the ample data sheet. Copies of this data

sheet are sent to the regional office (for record).

The samples received at laboratory, DHFL are analyzed physically and chemically

for prill size, prill strength, fines, caking, nitrogen percentage, biurate contents,

moisture contents etc. The results are then conveyed by laboratory incharge, DH

Fertilizers Limited to Marketing Manager, who tabulates them for management

information/action.

To ensure the regular dispatch of samples to DH Fertilizers Limited, the regionsmaintain a roster and DMM/TMM/TMM Tech by rotation are required to send

samples according to that roster. These samples should reach DH Chemicals

Limited by 25th of each month.

(2) Product/Package Quality Complaint Procedure


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Field staff is confronted from time to time with complaints regarding our product quality

and/or package. In the interest of striving for higher customer satisfaction, it is imperative

to take cognizance of these complaints. It may be noted that complaints are to be recorded

by all individuals who have a regular interface with the customers.

A product quality complaint (PQC) can trigger from various sources- farmer, dealer,

warehouse, port, plant, field, regions etc. The process to lodge a complaint is as follows:

a. PQC Input Form will be filled by the originator as a hard copy.

b. The department concerned will investigate the complaint and provide feedback to the

RMMs/MM.

c. The RMMs/MM will issue a letter to the originator of the complaint in light of the

feedback.

(2.1) Product Quality Input Form:

Detail of the quality complaint will be documented on the PQC Complain InputForm specimen of the standard reporting format is enclosed as Annexure 1-1 & 1-2

a. Territory Manager/Admin officer/RMMs/MM

b. Technical Services Officer

c. Warehouse Assistant

The following process shall be followed:

a. Product Quality Complaint Input Form is to be forwarded to the RMMs/MM. It

has to be ensured that the PQC Input Form is completely filled and all relevant

information is provided. The following particulars should be specifically

included.

i) Name of dealer /Farmer/WH/Othersii) Sales Point

iii) Product and Origin

iv) PER # and Date (if raised)

v) Shipment Details invoice #, Truck # etc.

b. Ensure that nature of Product Quality Issues have been marked. The severity

and extent (# of bags) has to be specified.

i) In case of weight complaints the total kg under/over from the specified

number of bags must be mentioned.

ii) In case of under/overweight bags (bags not affected) the weight

shortage/excess details per bag should be recorded in the commentssection.

c. All PQC Input forms from warehouses must be filled and sent to Regional Office

within a week of receipt of the product.

d. On submission of the electronic complaint the addressee will automatically be

intimated about the new Product Quality Complaint through e-mail. The

complaint will instantly appear on the Intra net database for monitoring and

action.

e. Following points to be ensured while responding to the complaint:


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i) Action taken/planned to be taken.

ii) Specific comments shall be given explaining the cause of complaint and

remedial actions contemplated and taken.

f. The feedback shall be provided and accessible to the respective RM within

seven days.

g. On receipt of the response, RM will issue a letter to the customer/originator.The complaint will be removed from the list of pending complaints.

(2.2) PQ Reports:

All interfaces and their managers will be able to generate customized reports on

the Product Quality Complaints for analysis and comment. The Planning Officer,

Lahore will issue a quarterly report summarizing the status of all complaints for

review by the Marketing Managers for stewarding purposes. A non compliance

report is issued to record all cases where PQ complaints remained unaddressed for

quarterly review by the marketing management.



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h. Dependant upon the EYC (market potential) of the sales point the prospective party

should have potential to adequately represent DHFL in the market in terms of annual

volume upliftment and should have a positive impact on sales and market share

i. In case of Dealers specifically appointed for secured credit sales, the EYC of Dealer

will be equal to the type and quantity of fertilizer depending on the approved secured

credit limit.j. Willing to keep adequate quantity of all products

k. Willing to participate in Company-sponsored activities e.g. farmer meetings, group

discussions, demonstration plots, etc.

l. Should be able to enhance DHFLs image in the area by virtue of ethical operations.

m. Should provide reliable competitive market intelligence and maintain confidentiality

when needed.

RMMs/MM/ in their respective areas are responsible to ensure that the Dealers are

evaluated on the above mentioned criteria prior to their selection. RMMs/MM also ensure

that all the legal/regulatory requirements are identified and met. After the evaluation the

data of BA is entered in SALES SYSTEM. The necessary evidences are maintained atregional offices. The authorization of the RMMs/MM in SALES SYSTEM is considered as

evidence of the evaluation.

(3) Appointment of Dealer

The appointment of a BA is made through the execution of a formal Dealer agreement by

the BA and the Company on the standard Dealer agreement.


(3.1) Procedure for Dealer Appointment:

All DM submit to their RMMs/MM and the RMMs/MM in turn present to the

Marketing Manager, a Dealer /Sales Point analysis and channel management plan

for the coming year. The analysis covers;

a. Current DHFL and competitors Dealers presence at all present and target

sales points.

b. DH s current market share,

c. DHs desired market share,

d. Strategic Dealer appointments and their estimated impact on DHFL market

share at these sales points.

e. Quarterly plan for the Dealer appointments.

With review and approval of the Marketing Manager, the data is then finalized as

the plan for Dealer appointments, by sales points and Marketing districts. In this

way, all the strategic replacements and new Dealer appointments are agreed upon

as a plan in advance of the coming year.

(3.2) Authorization:

RMMs/MM have the authority to appoint new Dealer, and terminate and replace

the old ones, remaining within the agreed upon plans with the MM. Any deviation


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a. A request for inclusion of the new sales point is forwarded to RMM/MM by the

respective DMM It includes all the logistics-related details of the new sales

point, i.e. its distance from supply source, primary and secondary serving

warehouses, truck route, road condition, chances of back load for incoming

truck, maximum truck size that can reach to the sales point, etc.

b. RMM/MM reviews the proposed inclusion of new sales point and forwards it toRegional Admin Officer with his comments and recommendations.

c. Admin Officer inserts this new sales point in the Dealer list.

d. Sales Assistant at Plant inserts the data (from the detail of the Dealer list sent in

by the region) and activates the approval of the new sales point in SALES

SYSTEM

Note: Appointment of the new Dealer at a new sales point will only be subjected to

the activation of approval of theRMM/MM

(4) Allocation of Additional Sales Point

If the Dealer desires to have an additional sales point, he gives an application to the

requesting for this, explaining why he wants the additional sales point. The reviews the

BAs request, investigates the need and if this is warranted, he sends the following

documents to the regional office.

a. Dealers application

b. DMM/TMM/TMM TECHs recommendation

c. Specimen signature card for the additional sales point.

The RMM/MM reviews the request, and if he agrees, approves the additional sales point.

RMM/MM forwards the recommendation for the additional sales point to the Admin officer.

By this procedure, an additional sales point other than the primary sales point is

incorporated in the Dealer list with the same customer code.

The documentation for allocation of an additional sales point is processed in the following

sequence:

a. An exchange of letters takes place between the Dealer and DH to amend the

agreement.

b. BA list is forwarded for the additional sales point to the Distribution department for

delivery to the Dealer. This information will be conveyed to the Distribution department

by the Regional office.

c. BA specimen signature card is filed in the Dealers record at the regional office.

(5) Reallocation of Sales Points

a. The BA submits an application requesting for the change. There must be solid

justification as to why the Dealer wants to change the sales point.

b. The application will be recommended by the DMM/TMM/TMM TECH who sends the

following documents to Regional office, after his recommendation.


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i) Dealers application

ii) DMM recommendation

iii) Specimen signature card for the sales point to be reallocated.

The RMM/MM reviews the request, if considered appropriate; he approves the reallocation

of sales point by activating his approval. RMM/MM forwards his recommendation to the

Admin officer. By this procedure, the primary sales point of the BA will be replaced by thenew sales point in the Dealer List with the same customer code.

The documentation for reallocation of the sales point is processed in the following

sequence:

a. An exchange of letters takes place between the Dealer and DH to amend the

agreement.

b. Dealer list is forwarded to the Distribution department for dispatch on the new sales

point to the Dealer. The information will be conveyed to the Distribution department by

the Regional office.

c. Dealer specimen signature card is filed in the Dealers record at the regional office.

(6) Changes in Dealer Particulars (Name/Address/Other)

The Dealer submits an application as to why he needs to have the name of the Dealer

changed. If the grounds are sound, the DMM/ TECH recommend the same to the

RMM/MM for his review and approval with the following documents:

a. Dealers application

b. DMM recommendation

c. Dealer agreement duly stamped and signed by the Dealer

d. Specimen signature card with the new name/address.

The RMM/MM reviews the request, if considered appropriate, he activates his approval. By

this procedure, the particulars i.e. name/address/others of the Dealer will be replaced by

the new ones in the Dealer list with the same customer code.

The documentation for change in Dealers particulars is processed in the following

sequence.

a. The RMM/MM will sign the new Dealer Dealer agreement.

b. The original Dealer agreement is filed at Regional office for record.

c. Dealer specimen signature card is filed into the Dealers record at the Regional office.

Note:

Change in proprietorship/ownership is treated as the appointment of new Dealer and in

this case process for appointment of new Dealer (section 7.3) will be followed

(7) Dealer Performance Monitoring and Review

Before the end of each year, the annual sales plans for each product for the next year is

prepared by the regions and submitted to the Management for approval. Once these plans

are approved, all the DM prepare their sales districts Dealer wise monthly sales plans for

each product which is essentially a Dealer wise breakdown of the approved sales targets

for each product.


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The DM monitors each Dealers performance on monthly, quarterly, half yearly and on

annual basis against the assigned targets.

In the instances where Dealer s performance is found below par compared with the

targets, the decision to continue with the Dealer by the DMM/TMM/TMMTECH officer will

depend upon the following guidelines:

a. Assess the past performanceb. Likelihood of good performance in future by the existing Dealer

c. Market supply/demand situation

d. Non availability of new party which can suitably replace the existing Dealer

The DMM/TMM/TMM TECH may issue warning letters and eventually initiate termination

against Dealers not improving their performance.

(8) Dealer Termination

Dealer termination is initiated in following conditions:

a. Not meeting volume targets consistently for six months.b. Any breach of contractual requirements as specified in Dealer Agreement.

(8.1) Termination of Dealer Procedures:

The DM will initiate Dealer termination process by sending a termination proposal

giving out the Dealers performance over the last 6 months against his targets for

all the products, reasons for non performance, a replacement plan for review and

approval by the RMM/MM. The RMM/MM reviews the proposal based on following

guidelines:

a. Assess the past performance

b. Potential of the party identified as replacement

c. Market supply/demand situation

d. Likelihood of good performance in future

After receiving the approval from the RMM/MM, the Admin officer prepares the

Dealer Termination case.

RMM/MM after retrieving the request under proposed status from the above

mentioned module will seek confirmation of;

a. Any pending Dealer orders from Customer order query screen in SALES

SYSTEM

b. SALES SYSTEM will block all shipment to Dealer after receipt of letter fromRegional office.

c. Any recoverable balance form the Dealer in SALES SYSTEM and if no

pending orders and recoverable balance are found shall approve the same

and get the termination notice printed (Annexure 7.8-2). After the RMM/MMs

approval and printing of termination letter following steps are taken:

i) Letter of termination of the Dealer agreement is prepared at the

concerned Regional office by the Admin officer.


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ii) The termination case is recommended by the RMM/MM and forwarded to

the General Marketing Manager for approval.

iii) After the approval of the Marketing Manager, copies of this case are

forwarded to distribution and Finance department to stop the any

shipments to the Dealer and to prepare DD for security refund,

respectively.iv) The Security DD is then sent to the DMM/ TECH for onward dispatch to

the Dealer after taking back all companys material.

v) The DMM/ TECH must ensure collection of following companys material

from the terminated Dealer before handing over the security deposit

demand draft.

Dealer board/large signboard

Dealer certificate

Stock register

POS material (to be destroyed later on)

vi) Copies (termination letter) of the case are kept at Regional office for

record.

(8.2) Resignation ofDealer:

In case of Dealers resignation the procedure mentioned in Section 7.8 for Dealer

termination is followed on the submission of resignation request from the Dealer.

The Dealer resignation is kept in the Regional office for record.

Note:

Resignation once processed and approved in SALES SYSTEM cannot be

withdrawn.

(8.3) Customer Complaints:

All customer complaints arising out of issues relating to contractual obligations

between DHFL and the Dealer network are to be documented and reported to the

marketing management. Such report will provide complete details about nature and

cause of the complaint giving out suggested actions to address the complaint.

Similarly, customer complaints made directly to the RMM/MM are to be recorded,

because investigated and the suggested remedial action is sent for marketing

management's review.

(9) Repeat Buying Farmers Appointment

(9.1) Contact with the Farmer:

Sales to the farmers are a mutual need of the Company and the potential farmer,

depending on the needs and our market penetration at a particular location.

Contact with the farmer is established in any of the following ways:


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The following documents are kept at the concerned regional office for

recordand for handing over to the newly appointed farmer:

Photocopy of farmers NIC issued by NADRA.

Copy of the Farmer Agreement.

Farmer selection and questionnaire form

The Regional office makes one copy of Farmers Agreement which ishanded over to the concerned DM. The DM passes on the agreement to the

concerned.

(9.2) Instructions for Execution of Repeat Farmer Buyers Agreement:

a. The Agreement is affixed with a special adhesive stamp of Rs. 50 from the

government treasury/stamp office

b. All insertions/deletions must be initialed by the farmer on the agreement.

c. The full name, postal/business address of the farmer must be written in the

appropriate paragraphs of the agreement.d. The farmer must sign the agreement himself.

(9.3) Other terms and conditions:

a. Pricing will reflect just the TRANSFER PRICE. No allowances, commission or

freight will be allowed.

b. Net price to the farmer will be same as net price to the Dealer. However, the

company reserves the right to keep a different price for the farmers as it deems

fit.

c. There will no tax implications for the farmers since no allowances are being

allowed.d. DHFL in this case will act as a distributor.

e. Security Deposit will not be charged to the farmers.

(9.4) In case the farmer is a limited company:

a. Obtain an attested copy of the certificate of registration issued by the Registrar

of the Joint Companies

b. Obtain a certified copy of the Memorandum and Article of Association together

with a list of directors.

c. Obtain a true copy of the board resolution authorizing the execution ofagreement by the director who will be signing the agreement.

(9.5) In case the farmer is a registered partnership:

a. Obtain an attested copy of the certificate of registration issued by the Registrar.

b. Obtain an attested copy of the partnership deed.

c. Obtain a letter signed by all partners and addressed to DHFL stated that the

partner named therein has been authorized to enter into the agreement with

DHFL.


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On the last page of the agreement insert the name of the RMM/MM, farmer, names

and addresses of the witnesses at the space provided. They will sign above their

names.

(10) One Time Sales to Farmers

a. To be extended to farmers only - recommended by DMM/TMM/TMM TECH.

b. DHFL will act as a distributor to make such sales directly to the farmers.

c. Agreement of any sort will NOT be prepared to record such sales.

d. Payment receipt by DHFL and product receipt by farmer to be recorded on order and

invoice.

e. The customer order/invoice shall contain full name and address along with NIC number

of the farmer along with a legible copy of his NIC which will be attached with the

invoice and shall be sent to head office for record.

f. The sales should be made at Gross Price less FA and shall be called as a transfer

price.

g. Example:

Gross M.A F.A Net Price/Transfer Price

Net Dealer PriceNet Farmer Price

425 10.00 2.50 412.50425 Nil 2.50 422.50

h. Product will be supplied from Warehouse only.

i. Pricing should only be reflective of the "Transfer Price" - NO Commission or MA will be

applicable.

j. No Tax certificates or implications for the farmer.

k. One CC for "Farmer Direct Sales" should be created and all sales booked to this

individual customer code.l. Separate CC for each sales district to record sales in respective district.

m. SALES SYSTEM will generate the macro number of sales to farmers in each district.

n. Manual Customer Order/Invoices will contain the data of each farmer.

o. The individual invoices, however, should contain the name of the farmer along with his

signatures and address along with other routine inscriptions.

p. Mode of payment will either be collection accounts or the normal payment instruments

acceptable to the company.


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Section 'H': Sales Operation

(1) Dealers Order Generation & Supplies

There are three sources of supply for our products as follows:

a. The plant at Sheikhupura/Chicho ki Malian

b. Port Karachi/Karachi warehouse

c. The procedure for order generation and its processing through SALES SYSTEM for

supply of product from each source of supply is followed in the sequence given below:


(1.1) Customer Order Generation:

The Dealer /customer contacts DHFL representative (DMM/ TECH/warehouse

assistant) to place the order of the product he intends to buy. DHFL representative

identifies all the customer requirements and after mutual agreement receives the

payment in the form of demand draft and pay order drawn on Lahore branch, madein favor of DHFL from the Dealer for further processing of the order. In some

instances, however the demand draft or other payment instruments are received

from the Dealer by hand or through mail at the DMM/ TECHs base or Regional

office or field warehouses.

a. The DH representative checks the payment instrument for correctness of the

amount, wording of the companys name and make sure that the instrument is

drawn on Lahore. The DMM/ TECH then prepares Manual Customer Order

(Annexure 8.1-1) by inserting all relevant details of payment instrument, order

and Dealer s preferences. This customer order has four copies as below:

i) DM Warehouse copy

ii) Customer acknowledgement copy

iii) Sales Accounting copy

iv) Regional office copy/ plant Copy

b. DM warehouse copy is for record purpose of DM Warehouse. Customer

acknowledgement copy is handed over to the Dealer for his own record. The

other two (sales accounting and regional offices) copies along with payment

instruments are sent to concerned Regional office/Head office.

c. Upon receipt of customer order Sales Assistant inserts the data on payment

instrument and other relevant detail in SALES SYSTEM. Once the payment is

entered the amount will be credited into the BA s account. Sales Assistant then

logs the customer order.

This entry is considered as evidence for the review of customer accounts.

SALES SYSTEM will retrieve customer order detail from Payment information

screen and update the Dealer Account Balance appearing in Customer Order

Screen. Hence forth, the Dealer s account balance will be updated on entry of

every new payment and becomes the basis of payment for product ordered from all

supply sources, by the respective Dealer. Both the manual customer orders as well


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as the SALES SYSTEM can accommodate multiple products provided the

shipment mode for all products in same (i.e. OC or CC).

A specimen of the standard reporting format is enclosed as Annexure 1-2 , 1-3 & 1-3.1

(1.2) Supplies Ex-Plants and Redistribution Hubs:

a. The respective Distribution Officer retrieves Customer Order Log Sheet in

SALES SYSTEM. This sheet is generated on daily basis. Customer Order Log

Sheet carries the update on all orders logged by Sales Assistant.

b. The Distribution Officer then gets the order detailed through Detailingscreen in

Product Handling System of SALES SYSTEM. On the basis of detailed order,

Truckers Backlog Reportis generated through B&S. This report contains the

list of all the orders detailed for shipment. The Distribution Officer then hands

over the Truckers Backlog Report to the Trucking Contractor at Plants and the

Shipment section at Redistribution hubs generate invoice against the order for

which the truck is provided and loaded for shipment. B&S Officer and

Distribution Officer at Redistribution Hubs get the print out of the Invoice for:i) Dealers acknowledgement.

ii) Dealers own record

iii) Gate pass

c. After delivering product at the Dealer outlet, the trucker takes the

acknowledgement of the Dealer on the acknowledgement copy of the invoice

and also gets it stamped. This copy of the invoice is the evidence of the delivery

of product to the Dealer. This copy is later attached by the trucking contractor to

his freight bill as the supporting document.

(1.3) Supplies Ex-Port:

a. The Distribution Officer, Port, retrieves Customer Order Log Sheet through the

Product Handling System in SALES SYSTEM. This sheet is generated on daily

basis.

b. The Distribution officer then gets the order detailed through Detailingscreen in

Product Handling System of SALES SYSTEM. On the basis of detailed order,

Truckers Backlog Report is generated through PH&S. This report contains

the list of all the orders detailed for shipment. The Distribution Officer then

hands over

DHFL-Sales Manuals OK

Documents

Transcript of DHFL-Sales Manuals OK