DELEGATION OF AUTHORITY

VERSION CONTROL
Date of Revision Approval: 01 April 2024 Approval: Managing Director

Current Version: 01

Effective Date:
01 April 2024

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Table of Contents
STANDARD AUTHORITY CODES............................................................................................ 2
A. PURPOSE AND OBJECTIVE.....................................................................3
B. GUIDING PRINCIPLES................................................................................ 4
C. GENERAL PROVISIONS.............................................................................5
DELEGATION OF AUTHORITY MATRIX..............................................................................5
I. PROCUREMENT (GOODS, WORKS AND CONSULTING FIRMS) 6
II. FINANCE........................................................................................................ 10
III. Assets Management..................................................................................13

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STANDARD AUTHORITY CODES

The standard authority codes used in the Delegation of Authority are as follows:

To initiate an action or activity and prepare the

Initiate/Originate/ relevant instrument supporting documents.
I
Prepare

To review and make a recommendation on which

R Recommend/Review a decision will be made or an action taken.

To permit an action or decision to proceed to the

next step for approval or signature after
ensuring that all relevant preconditions have
C Clear been satisfied and that the action or decision is
in compliance with COMPANY regulations,
rules, policies, processes and procedures.

To provide the final approval that an action or

decision can be undertaken or made following
A Approve appropriate consultations

To append one’s signature on a document

to signify acknowledgement, agreement,
S Sign approval or acceptance and consent to be
bound.

To be informed of the decision made or action

(i) Informed undertaken.

A. PURPOSE AND OBJECTIVE

The purpose of this Delegation of Authority (“DoA”) is to ensure the efficient operation of
“COMPANY” by establishing levels of authority and/or designate officers who may sign
written instruments or take other actions in the name of and on behalf of COMPANY.

This DoA also serves to provide a strong foundation for a standalone grain based
distillery -based operations model, while ensuring that the necessary control measures
are in place. Implementation of this DoA will facilitate the effective devolution of
activities, transfer of required decision-making powers and better segregation of duties
and responsibilities.

This DoA is a living corporate instrument and is the starting point upon which periodic
reviews and continuous improvements will be made in response to evolving business
demands.

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In exercising the authority delegated herein, consideration should be given to:

(a) the relevant COMPANY Regulations, Rules, Policies, Guidelines and Procedures,
as then in effect;

(b) the role of the Management Team, the Accounts & Finance team/department,
Procurement team/department and committees that may be established from time
to time by the Managing Director; and

(c) functional responsibilities within the organization.

B. GUIDING PRINCIPLES

1. All authority delegated herein derives from the authority of the Managing Director
and is delegated for the effective administration of COMPANY’s operations. The
Managing Director at all times reserves the right to exercise any of the delegated
authority.

2. Subject to paragraph B.1. above, the exercise of authority for all matters shall be in
accordance with this DoA and the Delegation of Authority Matrix (the “DoA Matrix”)
attached hereto. All authority not delegated pursuant to the DoA Matrix or
paragraph B.10. below is reserved for the Managing Director.

3. The delegation of authority set out in the DoA Matrix is functional and not personal
in nature, and shall be exercised in the best interest of COMPANY.

4. Any authority delegated in the DoA Matrix may be exercised by an officer of a higher
function, taking into account paragraph B.9. below.

5. The delegation of authority to a certain officer does not relieve such officer of the
responsibility to obtain the required technical advice and to carry out the appropriate
consultations which would inform the exercise of such authority.

6. HOD’s with delegated authority are responsible for assuring the following, as
applicable:

a. An understanding of what is being approved;

b. The information and supporting documentation is accurate and
complete;
c. The transaction or action is allowable, reasonable and justified;
d. The transaction is charged to the correct project(s) / account(s);
e. There are adequate funds to cover the expense; and
f. The funding source is appropriate to the expenditure.

7. An Acting HOD has the delegated authority of the function he or she has been
designated to assume.

8. An HOD-in-Charge has the same authority of his or her incumbent.

9. When HOD of one or more divisions, departments, units or offices are delegated
authority for the purposes of any particular instrument or action, the authority so
conferred should be exercised by the officer to whose responsibilities the instrument

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 or action most closely relates.

10. This DoA and the DoA Matrix do not preclude the special designation by the
Managing Director of officers to sign written instruments or undertake actions in
particular cases.

11. The same HOD/officer may not initiate, review and approve the same action. The
same HOD/officer may not approve and reconcile the same expenditure.

12. It is not permitted to divide a contract into two or more contracts to reduce the
amounts thereof and thereby change the required level of authority.

13. Cumulative amount in reference to any contract/ Purchase Order for acquisition of
any goods or works or engagement of any services refers to the cumulative amount of
the contract for the contract period. Where acquisitions of the same or similar type
are recurring, the total cumulative estimated amount for the calendar year shall be
used to determine the procurement method, procurement contract type and
procurement contract signatory.

14. Abuse of delegated authority or violation of the provisions of this DoA (including
these Guiding Principles) or the relevant underlying COMPANY regulation, rule,
policy, guideline or procedure shall constitute misconduct, leading to appropriate
disciplinary action.

15. Any action taken or any instrument signed by anyone other than the Managing
Director or those HOD’s/officers who have delegated authority in accordance with
this DoA and the DoA Matrix, may be declared null and void unless formally ratified
by the Managing Director or authorized HOD/officer.

C. GENERAL PROVISIONS

1. Each Department Head shall be responsible for the proper implementation of this
DoA in their respective department/division.

2. This DoA and the DoA Matrix may be amended, modified or repealed, in full or in
part, by the Managing Director. Any such amendment, modification or repeal shall be
evidenced by writing.

3. The Head of Operations is responsible for the overall interpretation and consistent
application of this DoA and the DoA Matrix, in consultation with the Head of Legal/
HR/ Accounts & Finance/ CFO.

DELEGATION OF AUTHORITY MATRIX

Authority Codes
I Initiate/Originate/Prepare
R Recommend/Review
C Clear
A Approve
S Sign
(i) To be informed Page | 5
 2.1
1.
I.

ACTION
ACTION

amount)
ACTION

3. Direct Procurement
2.4 INR 10,00,001 & above
2.2 INR 10,001 to INR 1,00,000
Annual Operating Plan

2. Raising purchase requisition

INR 10,000 or less (cumulative

2.3 INR 1,00,001 to INR 10,00,000

MD
A

MD MD Operation Head

i
C

Operation Head Operation Head Concerned Dept.

&S
C, A
R

Head
Concerned Dept. Concerned Dept.
Head Head Chief Finance
i

A &S C & S R & S

A &S C & S R & S
A &S C & S R & S
R&S
Officer
Chief Finance Chief Finance

i
i
i
i
Officer Officer Head of
R

Procurement
Head of Head of
Procurement Procurement Concerned Task

R&S
R&S
R&S
R&S
I

Clerks/ Sup./
Concerned Task Concerned Task

I
I
I
I
Officers
Clerks/ Sup./ Clerks/ Sup./ Procurement
Officers Officers
PROCUREMENT (GOODS, WORKS AND CONSULTING FIRMS)

Procurement Procurement Committee

Committee Committee

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 INR 10,000 or less (cumulative I
3.1 A &S C & S R & S i R&S
amount)
i I
3.2 INR 10,001 to INR 1,00,000 A &S C & S R & S R&S

i I
3.3 INR 1,00,001 to INR 10,00,000 A &S C & S R & S R&S

i I
3.4 INR 10,00,001 & above A &S C & S R & S R&S

Procurement/HR

Concerned Task
Operation Head

Chief Finance

Clerks/ Sup./
Procurement
Committee
Officers
Dept. Head

Officer
Concerned

Head.
MD
ACTION

Contract award decision & signing

of contracts, purchase orders and
4.
call –off contracts (framework
agreements
INR 10,000 or less (cumulative R&S I
4.1 A &S C R C&S
amount)
R&S I
4.2 INR 10,001 to INR 1,00,000 A &S C R C&S

R&S I
4.3 INR 1,00,001 to INR 10,00,000 A &S C R C&S

R&S I
4.4 INR 10,00,001 & above A &S C R C&S
Concerned Task
Operation Head

Chief Finance

Clerks/ Sup./
Procurement/

Procurement
Committee
HR Head

Officers
Dept. Head

Officer
Concerned
MD

ACTION

5. Contract Modifications

Exercising contract options already

provided for in the approved R&S I
5.1 A &S C & S R & S i
contract (for example, extension of
term or additional quantity)

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 Concerned Task
Operation Head

Chief Finance

Clerks/ Sup./
Procurement/

Procurement
Committee
HR Head

Officers
Dept. Head

Officer
Concerned
MD
ACTION

Waiver of procurement rule or

exercise exception provided for in
the Procurement Rules, provided
6.
such waiver or exception does not
violate the Procurement
Regulations.
INR 10,000 or less (cumulative R&S I
6.1 A &S C R i
amount)
R&S I
6.2 INR 10,001 to INR 1,00,000 A &S C R i

R&S I
6.3 INR 1,00,001 to INR 10,00,000 A &S C R i

R&S I
6.4 INR 10,00,001 & above A &S C R i

Procurement/ HR

Concerned Task
Operation Head

Chief Finance

Clerks/ Sup./
Procurement
Committee
Officers
Dept. Head

Officer
Concerned

Head
MD

ACTION

Cancellation of procurement
process (Cancellation of
procurement process to correspond
7.
to the authority to initiate the
procurement, as set out in Part I,
section 2)
Contractor Performance R&S I
8. A &S C & S R & S i
Evaluation
R&S I
9. Examination of Complaints A &S C & S R & S i

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 Authority Codes
I Initiate/Originate/Prepare
R Recommend/Review
C Clear
A Approve
S Sign
(i) To be informed
II. FINANCE
Concerned Task
Operation Head

Acct./Finance
Chief Finance

Clerks/ Sup./
Procurement

Officers
Head of
Dept. Head

Officer
Concerned

officer
MD

ACTION

1. Payment Processing

I
1.1 Payable up to INR 10,000 A&S R&C

R&C I
1.2 Payable INR 10,001 to INR 1,00,000 A & S

Payable INR 1,00,001 to INR R&C I

1.3 A&S
10,00,000
R&C I
1.4 INR 10,00,001 & above A&S

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 Concerned Task
Operation Head

Acct./Finance
Chief Finance

Clerks/ Sup./
Procurement

Officers
Head of
Dept. Head

Officer
Concerned

officer
MD
ACTION

2. Petty Cash

Payment of expenditures using petty R&C I I

2.1 A&S I I
cash
Determination of limit of petty cash I R&C I I I
2.2 A&S
usage
*Single payment is restricted as per IT Act & rules governing from time to time. At the time of
approval of this DoA Matrix, petty cash may be used for expenditures incurred an amount up to
(and less than) INR 10,000. This amount may be adjusted periodically in line with this DoA
Matrix.

Concerned Task
Operation Head

Acct./Finance
Chief Finance

Clerks/ Sup./
Procurement

Officers
Head of
Dept. Head

Officer
Concerned

officer
MD

ACTION

3. Foreign Exchange / Currency

Hedging instruments / derivative R&C

I I I
3.1 transactions / risk mitigation A&S
instruments

4. Investment

I
4.1 Short-term investments A&S C &S

5. Bank Accounts

5.1 Selection of banks

Opening and closing of bank As per approval of Board (Board Resolution)

5.2
accounts

5.3 Appointment of signatories

I, R &
5.4 Bank Reconciliation Statements A&S C

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 Concerned Task
Operation Head

Acct./Finance
Chief Finance

Clerks/ Sup./
Procurement

Officers
Head of
Dept. Head

Officer
Concerned

officer
MD

ACTION

6. Accounting

I, R C
6.1 Journal Entries A&S

I, R C
6.2 New chart of accounts A&S

I R
6.3 Sundry Write-offs. A &S R&C

I, R C
6.4 Accounting provisions A&S

7. Reporting

I,R &
7.1 Annual Financial Statement A
C
Various finance reports – such as,
I R
7.2 fixed assets, Comparative periodic A&S
reports etc.

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 Authority Codes
I Initiate/Originate/Prepare
R Recommend/Review
C Clear
A Approve
S Sign
(i) To be informed
III. Assets Management

Concerned Task
Operation Head

Acct./Finance
Chief Finance

Clerks/ Sup./
Procurement

Officers
Head of
Dept. Head

Officer
Concerned

officer
MD

ACTION

1. Asset Inventory

Asset Inventory Verification I

1.1 A R&C
(Physical Count)
I,R &
1.2 Assets Write-offs A&SR&C C
C

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