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Audo Foods Limited, Ludhiana: 2. Scope

This document outlines the procedure for outsourcing activities at Audo Foods Limited. It discusses responsibilities for outsourcing, currently outsourced activities like data entry and customer service, risks associated with outsourcing like operational, reputational and legal risks. It also lists related documents like agreements, certifications, schedules, and requirements to maintain records for 5 years.

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Narinder Pal Singh Sokhey
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152 views2 pages

Audo Foods Limited, Ludhiana: 2. Scope

This document outlines the procedure for outsourcing activities at Audo Foods Limited. It discusses responsibilities for outsourcing, currently outsourced activities like data entry and customer service, risks associated with outsourcing like operational, reputational and legal risks. It also lists related documents like agreements, certifications, schedules, and requirements to maintain records for 5 years.

Uploaded by

Narinder Pal Singh Sokhey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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AUDO FOODS LIMITED, LUDHIANA

Issue Date: Doc. No: AUDOMSP-9.0-01


Rev. No: 01 Page No: 1 of 2
Topic PROCEDURE FOR OUTSOURCING ACTIVITIES

1. Purpose

The purpose of this SOP is to set out the steps involved in outsourcing of services to
ensure a consistent and documented approach to outsourcing across the Agency.

2. Scope

This SOP shall guide all Units and Sectors at the Agency.

3. Responsibilities

It is the responsibility of the Authorizing Officer concerned to ensure that steps are
followed and documented. The Authorizing Officer may appoint a Project Manager to
execute the project under his/her responsibility. The Project Manager may also be the
same person as the Authorizing Officer.

4. ACTIVITIES THAT ARE PRESENTLY OUTSOURCED

There is no study to ascertain the level of outsourcing in Indian securities market.


Based on informal feedback, it is understood that a few intermediaries are currently
outsourcing some of their activities related to data entry, record keeping, dispatch,
front-desk customer services.
 Calibration
 Pest Control

5 RISKS ASSOCIATED WITH OUTSOURCING

The risks attached to outsourcing are numerous. They can be grouped into three broad
categories:
 Operational
 Reputational
 Legal risks

Prepared By: Approved By: :


AUDO FOODS LIMITED, LUDHIANA
Issue Date: Doc. No: AUDOMSP-9.0-01
Rev. No: 01 Page No: 2 of 2
Topic PROCEDURE FOR OUTSOURCING ACTIVITIES

The operational risks arise because the intermediary loses direct control over the
activities and the processes, procedures, systems and people engaged in these
activities. Therefore, it fails to exercise due care and diligence if the activity / service
Falls short of the regulatory standards.
The reputational risks arise from failure by the third party to deliver as per regulatory
standards which may invite regulatory actions.
The legal risks emanate from the failure to enforce the contractual obligations
particularly when the contractual relationship is not redefined with every change in
basket of activities outsourced or the way these are discharged. Besides, an
intermediary faces a few other potential.

6 Related documents

 Pest Controller agreement.


 MSDS for chemicals and pesticides that used.
 Certification of company / form 6.
 Calibration Schedule for equipment.

7 Records

All documentation and other records relating to outsourcing procedures will be


collected and maintained by the Authorizing Officer. The AO shall conserve the
supporting documentation for a period of five years from the date of the decision

Prepared By: Approved By: :

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