1 ADVIK HI TECH PVT LTD ANNUAL OPERATING

1 ADVIK HI TECH PVT. LTD ANNUAL OPERATING PLAN - AWARENCESS PRESENTED BY CORPORATE ACCOUNT DATED 17 TH DEC-2019

AOP MEANS IN BUSINESS Ø 2 It is usually based on an Annual Operations Plan (AOP) that acts as the Company’s annual target in terms of sales and supply. Ø Therefore the sales and operations plans are a means to gradually accomplish the AOP targets – by linking monthly sales and marketing planning directly to the operations side of a business.

AOP FOCUSED • 3 IMPROVEMENT IN ENGINEERING PROCESS Ø There is scope for Improvement in engineering/ Maintenance / Power / Tooling / Packing / Freight Outward / BOM cost reduction in terms changing the process & structure & present to Board for further approval • STRATEGY : Ø • CAPACITY PLANING: Ø • Finalization of Plant & product wise strategy by way of geographical & logistic way Need to check & study existing in house capacity planning as well as vendor end capacity planning based of ASP FINALIZATION OF ORGANIZATION CHART Ø Based on ASP need to final organisation chart to get clarity on Manpower fix & variable cost

ANNUAL OPRATING BUDGET FOCUSED 4 An operating budget is combination of known expenses, expected future costs, income over the course of a year. Operating budgets are completed in advance of the accounting period, which is why they require estimated expenses and revenues. Ø Revenue Budget Activity Income (Sales) Other Income Operating Expenses RMC Other Expenses Financial Cost

5 • DELIVERABLE : Ø All Engineering Process Improvement, Strategy Planning & Budget Activity need to deliver with a time limit as per mention in AOP. • BUDGET MONITIRING : Ø Variable expenses budget are monitoring based on sales in percentage. Ø Fixed expenses budget which is not directly linked with sales • RESPONSIBILITY & APPROVED AUTHORITY : Ø There is defined process for respective areas primary responsibility & Approval Authority

Important Notes 1) Budget working should be done on actual fact & based on cost benefit analysis only. 2) Budget should be consider for recurring expenses only, i. e. no need to consider any one time small expenses in budget. 3) While doing the budget working user should consider authenticate sales data i. . e final revision circulated by Marketing only. 4) User should consider the preceding year expenses up to Nov month for draft budget 5) We should do the analysis of preceding year Non Budgeted Expenses for subsequent year budget. 6) We do not revise the any final signed revenue budget once get singed from Management. 7) Revenue Budget will not be Carry Forward for next financial year. 8) Revenue Budget can be utilize against that respective signed item only t i. e. we should not utilize the budget of X item for Y item. 9) All revenue expenses PO should be align with signed budget only. 10) All improvement budget will be monitor separately, since the same will not be consider in signed revenue budget. 11) Budgeted amount shall not be consider as bench mark, i. e. negotiated cost should be maximum in line with Budget 12) Our objective should be that bottom line should not be get affected. 6

Dos 1) Pl. do the all budget working in describe format only. 2) All arithmetic working should be based on formula & working should be link with this. 3) All budget working should get validate & reviewed by as per AOP authorization matrix only. 4) All budget working soft copy & physical signed copy should be get match. 5) All budget working should share to accounts post revived & signed as per AOP authorization matrix only. 6) Revenue budget should be consider as per actual expenses is getting incurred in that respective month only. 7) Don’ts 1) Don’t punch any amount as manually 2) Expenses should not be state way bifurcation in 12 month, it should be based on actual utilization in that respective month. 3) Don’t share the soft & hard copy of revenue budget to Accounts which have not reviewed by & signed by authorized signatory. 7

8 Thank You