LEADS WEST AFRICA RESOURCES LIMITED POLICIES AND PROCEDURES CULTIVATION AND PROCESSING OF CASSAVA AND OTHER FARM

PRODUCE General Policy This policy document is developed to provide guidelines for effective production of cassava chips for exportation as well as other farm products. The activities would involve: 1. Acquisition of farm lands 2. Supply and sales of farm inputs 3. Material Sourcing through: Self-owned/Leasehold cassava plantation Contract Growers 4. Transportation of farm produce from Farms to Processing Factory 5. Processing of farm produce 6. Packaging, Standardization and Conservation of the farm produce in preparation for exportation marketing 7. Warehousing the processed products pending the exportation and sales. 8. Transportation of the products to the ports or markets. It is the policy of the company that none of its employees would be involved in the technical activities along the value chains. The company employees will only be involved in the administration and financing activities. Meanwhile, entrepreneurs in the form of sole proprietorships, SBUs, Cooperatives and corporate bodies with adequate competencies and experiences, who have been duly registered with the company would be engaged in carrying out the technical activities along the value chain. The company will source for its major raw materials i.e. Cassava tubers from either: i. ii. The Plantations Established on Lease Farm Land The Contract Growers

ACQUISITION AND ALLOCATION OF LEASEHOLD FARMS Shortlist

Prepare Lease Solicitation for Offers (SFO) Advertise through local media Expression of Interest received from prospective lessors Meet the Land Lessors

Conduct if Q & Q of the Farm /service meet the Company Requirement

No

Ye s
Agree on terms & conditions

No

Ye s Execute Contract Agreement

Allocate farms to registered entrepreneu rs

No

Ye s
Supply required Inputs to the farmer Issue Coupons, Invoice and Delivery Note

Wait till harvest period

End

ACQUIRING LEASEHOLD INTERESTS IN CULTIVABLE LANDS (a) This part applies to acquisitions of leasehold interests in real property except: Contract means lease. Contractor means lessor. Landlord or lessor means any individual, firm, partnership, corporate bodies, trust, association, State or local government, or other legal entity that leases real property to the Government. Lease or leasehold interest in real property means a conveyance to the Government of the right of exclusive possession of real property for a definite period of time by a landlord. It may include operational services provided by the landlord. Lease acquisition means the acquiring by lease of an interest in improved real property for use by the Government, whether the space already exists or must be constructed. Lease extension means extension of the expiration date of a lease to provide for continued occupancy on a short term basis. Lease renewal (option) means the right, but not the obligation of the Government to continue a lease upon specified terms and conditions, including lease term and rent. Lessee or tenant means the United States of America. Operational services means services that support use of a leased property, such as Land scaping, Tilling, harrowing, and custodial services. Simplified lease acquisition procedures mean the procedures for awarding leases at or below the simplified lease acquisition threshold. Simplified lease acquisition threshold means the simplified acquisition threshold. When applied to the average annual amount of rent for the term of the lease, including option periods and excluding the cost of services. Solicitation for Offers (SFO) means a request for proposals (RFP). Substantially as follows or substantially the same as, when used in prescribing a provision or clause, means that the contracting officer may prepare and use a variation of that provision or clause to accommodate requirements peculiar to an individual acquisition Succeeding lease means a lease whose effective date immediately follows the expiration date of an existing lease for space in the same building.

Superseding lease means a lease that replaces an existing lease, prior to the scheduled expiration of the existing lease term. Authority to lease. (a) The CEO, Contracting Officer, is authorized to enter into a lease agreement for the acquisition of lands which is available for farming purposes. The lease agreement may not bind the Company for more than 20 years. (b) The CEO has exclusive authority to enter into and administer leases on the company to the extent of the relevant resolutions by the board. Nothing in this paragraph is intended to limit the CEOs authority to designate, consistent with the company articles of Association, a contracting officers representative. Contracting by negotiation. Contracting by negotiation is appropriate for acquiring lands through a lease contract. The contracting officer will usually need to conduct discussions with offerors about their proposals and consider factors other than price in making the award. The contracting officer determines whether the procedures are appropriate for entering into a lease contract based on the following: (1) The contracting officer expects to receive three or more offers. (2) Offerors will need to perform design work before developing a price. (3) Offerors will incur a substantial amount of expense in preparing offers. (4) The contracting officer considers criteria such as the following: (i) The extent to which the project requirements have been adequately defined. (ii) The time constraints for delivery of the project. (iii) The capability and experience of potential contractors. (iv) The past performance of potential contractors.

Advertising, publicizing, and notifications to Congress. (a) If a proposed acquisition is for a leasehold interest in real property estimated to exceed 100 hectares, then the contracting officer must publicize the proposed acquisition in the company website, at least one Nigeria daily newspaper and other relevant media. (b) For leasehold acquisitions where the solicitation requires the establishment of crop plantation, the contracting officer must publicize the proposed acquisition in the company website, at least one Nigeria daily newspaper and other relevant media regardless of size or value. (c) For leasehold acquisitions not subject to hectares, contracting officers must publicize the proposed acquisition in acquisition in the company website, at least one Nigeria daily newspaper and other relevant media when the contract action is expected to exceed 2,500,000. (d) Other than as identified in paragraphs (a) through (c) of this section, the contracting officer need not publicize the proposed acquisition of a leasehold interest in real property, including expansion requests within the scope of a lease, lease extensions. (e) The contracting officer may issue a consolidated advertisement for multiple leasing actions. (f) Except as otherwise, where publicizing of the proposed acquisition is required, the notice shall be published than seven calendar days prior to issuance of a solicitation. (g) Except as otherwise provided in paragraph (b) of this section and as set forth in paragraphs (g) and (h) of this section, the contracting officer shall provide offerors not less than 20 calendar days between solicitation issuance and the date established for receipt of initial offers. (1) For a proposed acquisition using simplified lease acquisition procedures, consider the individual acquisition and establish a reasonable response time. (2) In cases of unusual and compelling urgency, provide as much time as reasonably possible under the circumstances and document the contract file. Cost or pricing data and information other than cost or pricing data. (a) The policies and procedures of apply to lease contract actions. (b) Most leasing actions will have adequate price competition. For price analysis of offered rental rates, the contracting officer may use a market survey, an appraisal conducted using accepted real property appraisal procedures to establish a market price

for comparison, or other relevant market research data. For price analysis of offered tenant improvement costs, obtain two offers or cost and pricing data. (c) In exceptional cases, the requirement for submission of certified cost or pricing data may be waived Inspection and Acceptance. Before accepting the space, the contracting officer must: Verify that the space complies with the Company and Governments requirements and specifications. Document the findings in an inspection report. Ensure that the inspection report contains the agreed size of the land accepted and the acceptance date. Include the inspection and acceptance in the contract file.

Contract format. The uniform contract format is not required for leases of real property. Sustainable requirements for lease acquisition. Contracting officers must include sustainable requirements appropriate for the type of leasing in the solicitations for offers. Market survey. Conduct a market survey to identify potential sources. Description of requirements. (a) The description of requirements depends on the nature of the space the agency needs and the market available to satisfy that need. (b) The description of requirements must include all the following: (1) A statement of the purpose of the lease. (2) Functional, performance, or physical requirements. (3) Any special requirements. (4) The delivery schedule.

Negotiation and Evaluation (a) If the contracting officer needs to conduct negotiations, use the procedures in (b) Evaluate offers in accordance with the solicitation. Evaluate prices and document the lease file to demonstrate whether the proposed contract prices are fair and reasonable. (c) Accept the lease award from the responsible lessor whose terms and conditions represents the best value to the Company considering price and other factors included in the solicitation. Preparing the SFO. The SFO forms the basis for the lease negotiation process and becomes part of the lease. Document each SFO in writing or electronically. Include the information necessary to enable prospective lessor prepare proposals. Each SFO, at a minimum, must: (a) Describe the Companys requirements. (b) State the method the Companys will use to measure the available space of land. (c) Specify a date, time, and place for submission of invitation for meeting. Issuing the SFO. Release the SFO to all prospective lessors at the same time. The SFO may be released electronically. Evaluating offers. (a) The contracting officer must evaluate offers solely in accordance with the factors and subfactors stated in the SFO. (b) Evaluate prices and document the lease file to demonstrate that the proposed contract price is fair and reasonable. The contracting officer must review the elements of the lessors proposed rent to analyze whether the individual elements are realistic and reflect the lessors clear understanding of the work to be performed. The contracting officer must discuss any inconsistencies with the lessor. If the lessor refuses to support or make any changes to the rent proposed, consider the risk to the Company prior to making any lease award. (c) Evaluate past performance on previous lease projects in accordance. Obtain information through: (1) Questionnaires tailored to the circumstances of the acquisition;

(2) Interviews with program managers or contracting officers; (3) Other sources; or Renewal options. (a) Exercise of options. The exercise of a renewal option during the lease term must satisfy the requirements of Memorandum of Agreement initially signed by the company with the lessor. (b) Market information review. Before exercising an option to renew a lease, review current market information to determine that the rental rate in the option is fair and reasonable. POLICIES & PROCEDURES ON REGISTRATION ENTERPRISES, CONTRACTORS, COOPERATIVES OF SUPPLIERS,

Scope This policy covers the registration and accreditation of: i. Enterprises in form of SBUs/Cooperatives for the handling of Farm Management, Haulage, Processing Activities and Trainers ii. Suppliers of farm inputs iii. Contractors who would be engaged in the rendering other services. iv. Trainees who are interested in the training components of the project. Registration Procedures
i. The nature of various engagements and the detailed registration procedures must be

ii.

iii. iv. v. vi. vii. viii. ix.

communicated to the public prior to a specified date when the registration will lapse through adverts on website, radio, television, newspaper and other useful media. Interested participants mentioned in (i - iv) above are expected to apply for their area of interest by completing Online form which is uploaded on the companys portal. Completed forms are saved in a digital database. Administrative Officer access the database to obtain the forms, process them to select the relevant applicants who possess the requisite technical competence and cognate experience in the areas for which they applied using appropriate software. The details of selected are printed in support of memo report which is submitted to the COO for the conduct of oral interview with the participants. The successful applicants selected must be fed back through email and SMS. Chief Operating Officer conducts oral interview with the successful applicants and make recommendations to the CEO. The final approval is carried out by the CEO. Engagement/Appointment Letter or Contract Documents are issued to the successful applicants by the Admin Officer. APPOINTMENT OF SPECIALISED FARM CONTRACTORS

Prepare Contract Specification Offer

Advertise & Invite Tenders through local media

Shortlist Application

Meet the Contractors & Interview

Conduct if Q & Q of the Farm /service meet the Company Requirement

No

Yes
Agree on terms & conditions

No

Yes Execute Contract Agreement

Does the farmer need farm input from the company

No

Yes
Supply required Inputs to the farmer Issue Coupons, Invoice and Delivery Note

Wait till harvest period

End

TENDER POLICY FOR SPECIALISED FARM CONTRACTS

(CONTRACT GROWERS) 1. OBJECTIVE This process aims at providing a policy to guide the appointment of contractors for LEADS WEST AFRICA Farming Contracts. 2. SCOPE This includes services of general application such as cassava growers, other Agricultural Value Chain Activities including processing, marketing, transportation, canteen catering, security, cleaning, and distribution. But excludes contracts of specific functional responsibility like advertising, import clearing, I.S. hardware maintenance, vehicle maintenance, telecommunication equipment maintenance, a/c maintenance and purchases that come under the commitment of company fund policy. 3 TENDER COMMITTEE There shall be a tender committee comprising the following; 1. Managing Director 2. Financial Controller 3. Functional or departmental Manager of originating function 4. General Services Manager 5. Company Secretary 4 (Chairman)

(Secretary)

GENERAL POLICY There shall be an annual review of contracts entered into between the contractors and LEADS WEST AFRICA, and a general review of contractors by competitive bid at least once in 3 years by tenders committee.

PROCESS NO ACTION BY 1. 2. PROCESS DESCRIPTION Functn Mgr.

Prepare a comprehensive contract specification

Invite sealed tenders in duplicates, based on the Functn Mgr. Contract specification through local advertisements (internal and external) using some selected Media. Tenders received should not be opened until the expiration of time given for submission, when all tenders will be opened at the same time under the supervision of the Internal Auditor who will immediately collect

the duplicate bids for his records. 3. 4. Do a shortlist of various applications received From tenderers. Conduct interview for the shortlisted tenderers And select best contractor. The committee at its discretion may call for additional or independent quotations and call in for more negotiations if considered necessary. 5. Formulate agreement documents stating the terms and Functional /conditions of the contract incorporating the following: 6. Period of contract Renewal and termination clauses; Role of the company and the contractor under the contract. Three (3) months probational period. Functn Mgr. Fin.Ctr./MD Corp. Aff Mgr. Functn Mgr. Tender cott.

Sign contract agreement documents and distribute copies to the following: The contractor Functional manager Company secretary Financial controller Managing Director

7. 8. 9. 10.

Placement and orientation course for the chosen contractor.

Functnal Mgr.

Confirm if the contractors needs some farm inputs from the company Supply the requested farm inputs Issue coupon, invoice and delivery note for the supplied farm inputs

PROCUREMENT POLICY 1. PURPOSE To establish a purchase policy for the procurement of certain predetermined goods and services. SCOPE The policy and procedure shall cover the procurement of the goods and services centrally. a. Farm Produce: This includes cassava tubers and other produce for resale or processing. b. Contracted services: This covers all annually contracted services such as maintenance of equipment, cleaning, courier, security, canteen services etc. c. General Repairs and Servicing: This covers generator, motor vehicles, electrical appliances etc. d. Company Cars: This includes purchases, repairs and maintenance of company owned privileged cars (including accident repairs procedures in conjunction with the Insurance companies). e. General Printing Works: this covers general company forms and pads, e.g. Goods Inwards Notes, Engineer Call Report, internal posters, communication and business cards, computer stationery etc. it does, includes advertising brochures and posters, or small volume special printing relating to the specific needs of a particular Department. f. Miscellaneous Non-Standard Office Stationery and Supplies: Miscellaneous supplies that are specific to each department (e.g. purchase of calculators, data Processing stationeries and other general stationeries such as biro, pencil, eraser etc.) g. General Purchases: Such as clothing (uniforms), ID Cards, site supplies such as towels, toilet rolls and cleaning materials. AUTHORITY The Head of Account/Finance Manager will normally be responsible for general purchasing and for arranging procurements. 4. POLICY STATEMENT a. It is the policy of the Company to purchase, by ethical means, only goods and services which are required and suitable for carrying out the purposes of the Company. The Company aims to ensure that the best value for money is being obtained and that its resources are being used to the greatest benefit. b. Commitments relating to the above areas of expenditure may only be made through the use of Central Purchase Requisition (CPR) and Central Purchase Order (CPO), the administration of which is the responsibility of the Purchasing Officer and the General Service Department.

2.

3.

c. The detailed procedures to be followed in executing this policy are as laid down under the Central Purchase procedure. The general definitions of responsibilities are: RESPONSIBILITY i) ii) iii) iv) NOTE
a. It is the general policy that three competitive quotations are obtained from

Raising and approving Central form(CPR) Obtaining the required three quotes. Raising of relevant CPR & CPO Authorization for commitment

Departmental Manager purchase Request Purchasing Officer/ General Services Dept. Purchasing Officer/General Services Dept. As defined under 3c below

established and reputable suppliers for each order request. However exceptions to this requirement are permitted in the following cases where just one quotation will be accepted: Orders with a value of =N= 20,000 and below. Where specialist suppliers applies, i.e. only one supplier Prior approved nominated company supplier.

b. Quotations received must relate to the required goods or services and must be

proper quotations clearly detailing goods or services to be provided, the supplier, his business name, address of the company plus a business card attached if available. c. Hand-written notes on plain paper are not considered proper and will not be accepted. It will be the responsibility of the relevant Manager approving the CPR to ensure that recommendation and selection of supplier is done to ensure the company obtains best value for money. In exercising this responsibility, it is not expected necessarily that this should be interpreted as buying at the cheapest cost or conversely justifying the highest cost solely on the basis of the best quality. Managers are expected to apply judgment and balance in their supplier selection where the sole criterion as: Appropriate quality of goods/services for the particular situation and The appropriate best value for that quality, and Use of known and reputable suppliers.

Therefore, the selection of supplier should not show any preference other than where related to the above, and generally where quotations are for the same goods or services, it would be expected that, if all other factors are common, the lowest price should be accepted. d. Approval and Authority Levels (Note: the word approval merely denotes concurrence to the request by the signatory). Commitments can only be made through the raising of CPO, which must be raised prior to any external commitment being made. This document can only be raised after the required authorization of the relevant CPR. AUTHORITY LEVELS FOR CENTRAL PURCHASE REQUISITIONS AMOUNT =N= I) II) III) iv) General Service Manager GM Finance Controller Managing Director VALUE UP TO 5,000 VALUE UP TO 50,000 VALUE UP TO 1,000,000 ALL VALUE ABOVE 1,000,000

NOTE: The above authority levels related to COMPLETE orders. It is not permitted to split orders to obtain lower values thus avoiding the necessity of obtaining authorization as defined under (i) and (ii) above. Also where cost values cannot be estimated, then authority requirement will be as with orders valued above =N= 1,000,000 that is, Finance Controller. It should also be understood that no purchase can be made without prior authorization as defined above. The above delegated authorities are designed to both provide Managers with commitment discretion as well as relieving the inherent delays experienced in the existing processed. However this delegation does not remove the Finance Controller responsibilities regarding Control of the commitment process. The Finance Controller will to exercise his responsibilities and will regularly review expenditure made below =N=1,000,000 albeit after the event. In this connection, he has and will continue to have the unfettered right to question any commitments made where he has cause to raise queries. e. Advanced Payment for Goods and Service The general policy shall be that goods and services should only be paid for after the receipts of the goods or satisfactory provision of the services required. Exceptionally, there may be a requirement for the payment of deposits prior to the delivery of the goods, or the provision of services.

Such requirements must be clearly noted on the CPO before it is authorized. Generally, such deposits should only be paid to the supplier by cheque, though cash may be permitted where appropriate or justified. If advance payments/deposits are recommended then an ADVANCE PAYMENT REQUEST FORM must be raised and accompany the CPO. This document requires the same level of authorization as defined for the CPO (see 3c above) NOTE The ADVANCE PAYMENT REQUEST FORM must quote the CPO number, and when presented to the Cashier, have a copy of the approved CPO attached. f. Payment of the Accounts Payment requests of Supplier Invoices for goods and services committed through the CPO can only be processed after confirmation by the originator or the purchase indicating satisfactory delivery of the goods or provision of the services requested. This generally will be indicated by the signature and printed name of the originator on the checklist attached to the invoice and where goods are supplied the relevant Good Inward Notes. The approval of the checklist requesting payment must also carry the signature of the General Service/Maintenance Manager or, in his absence, higher authority. g. Documentation All documents shall be covered by a combination of any of the under-listed forms: CENTRAL PURCHASE REQUISITION (CPR) (This is the internal document used to obtain authorization for the purchase). CENTRAL PURCHASE ORDER (CPO) (this document is used to make the external commitments on behalf of the company) ADVANCE PAYMENT REQUEST FORM (This covers payment of any advance payments/deposits). GOODS INWARD NOTE (GIN) (This document is used to record physical receipts of goods supplied). NOTE The Central Purchase Order (CPO) will be raised only after full authorization of the CPR. Generally, it will be expected that all CPO would be signed on behalf of the company by the Purchasing Manager, or in his absence, the higher authority. All blank (unused) CPR and CPO books must be held in the companys safe by the Treasury/Finance Manager. These documents will be issued at the request of the Departmental Head, of the General Service Manager on submission of previously

completed (fully used) form pads. The completed books will then be retained by the Treasury/Finance Manager in the safe, and can only be disposed at the specific instruction of the Finance Controller (generally, these documents shall be retained for not less than 6 years). The Treasury/Finance Manager should keep a register indicating to whom each book is issued, detailing date of issue and date when completed (used) book is returned. GENERAL The nomination of the recommended supplier shall be with the Central Purchasing/General Service Manager but subject to the appropriate acceptance by the authorizing signature, for remote locations (Branches), it is permitted that the Finance Controller may, at his discretion, delegate authority to the Location Head fo the purchase of goods or services covered by this policy statement. Such delegation must be in writing. Where such delegated authority has been granted, the location Head must effect such procurement and commitment through the CPR/CPO process and the requirement of prior approval/authorization, as defined in that policy must be adhered to. h. Procedures
a. The order should be authorized within the cash limits (excluding VAT) defined

below: Up to 100,000 authorized by the Managing Director; From 100,000.01 to 500,000 authorized by the Managing Director and a Director of the Company; 500,000.01 and above authorized by the Managing Director and two Directors of the Company. b. Where the Managing Director is not available to authorize an order, a Director may deputize; c. Where appropriate, quotations or tenders must have been obtained as set out below.

5.0

TERMS AND CONDITIONS OF SUPPLY a. The standard terms and conditions of supply by the supplier to the Company should be reviewed before order is placed based on the following criteria: Goods and Service Quality. References of previous supplies. Availability of Maintenance and support. Pricing Structure for Hardware, Software and Recurrent. The proportion of the supplier prices. Payment Terms. Availability of Discounts and how much. Opportunity to enter into partnership or form strategic alliance.

b. Where a tender is issued or order placed, where the standard terms are not sufficient or particular requirements have to be met, special terms should be issued separately clearly defining the requirements.

6.

Quotations and Tenders a. Tendering procedures are not obligatory for goods and services costing less than 10,000 excluding VAT but quotations and tenders must be sought, as follows:

Estimated Value of Goods or Services, excluding VAT Over 10,000 but not exceeding 50,000 Over 50,000 but not exceeding 100,000 Over 100,000 but not exceeding 1,000,000

Number of Quotations 2 4 6

b. Invitations to quote should be sent to known suppliers of the goods/service required. If there is already an agreement in place for these goods/services then all suppliers included in this agreement should be invited to quote. c. A record should be kept of quotations invited and replies received, and if the lowest quote is not accepted, a reason for declining it. Telephone quotations shall be confirmed in writing, by email or fax.

7. Tendering for Goods or Services over 1,000,000 but less than 5,000,000

7.1

The tender should define the goods or services required with a full specification and any additional information necessary to the supplier. 7.2 The Standard Terms and Conditions of Supply to the Company should be referred to and a copy attached. 7.3 Any special conditions of the contract should be defined and attached. 7.4 When tendering for a service, the contractor should be asked to provide details as follows: 7.5 7.6 to make clear whether the contract includes or excludes labour, materials, plant equipment or other things necessary for the service specified; to provide a definition of the service, items, site, etc. and the manner in which the service should be carried out including time factors relevant to the service; to specify the right of the Company and the contractor to vary the contract; whether the contractor can or cannot assign or sub-let all or any part of the contract; payment and/or settlement terms plus warranties or reserve of payment until completion; statutory obligations of both parties regarding safety, insurance, indemnities, etc. the period and objectives of the service should be clearly defined.

An addressed envelope for return of the tender should be enclosed, clearly stating tender details and closing time and date, so it is not opened before the tender date and is received by the authorized person. The tenders must be opened in the presence of not less than two persons drawn from the Directors of the Company, the Company Secretary and the Managing Director. The company will seek to obtain best value for money. Hence, the lowest, or any tender, need not be accepted, but when the lowest tender is not accepted the reasons should be clearly stated (for future audit examination) on the signed summary of tenders. Tender should be sought from a reasonable selection of potential and able suppliers/contractors. Newspaper or trade journal advertising for suppliers may be appropriate in certain cases. The successful tenderer should be informed of the Companys intentions, any clarifications should be agreed and the offer formally accepted.

7.7

7.8

7.9

8.0

Tendering for Supplies and Services value 5,000,000 and above.

8.1

Any potential order for Supplies, Services or Works above these values must be advertised in the Newspaper and Trade Journal. The value figure of 5,000,000 for Supplies and Services excludes Value Added Tax and embraces the total commitment for the purchase, lease, rental and hire purchase of goods/services. In applying the threshold, the value of an individual contract needs to be estimated. In the case of a series of contracts, the total value over a period of 12 months also needs to be estimated. LEADS WEST AFRICA RESOURCES LIMITED will not attempt to avoid the Regulations by subdividing requirements so that the value of each part falls below the relevant threshold. Tendering processes in the Newspaper should span for a period of 40 working days for potential suppliers to respond to an advertisement. While in other cases should not more than 20 working days.

8.2

8.3

8.4

8.5

ACCEPTANCE OF GOODS RECEIVED OR OF SERVICE RENDERED IN ORDER TO AUTHORIZE PAYMENT. Applicable to: All Heads of Department Finance Policy 1. It is company policy that only staffs that have initiated an order satisfy themselves as to the correctness and quality of goods delivered or of a service provided. 2. The staff member responsible for the above will issue to the supplier a G.R.N. (Goods Received Note) or Companys official memo through so named it will also be used to acknowledge approval of a service rendered. 3. It is strictly policy that where the correct staff member is not available to check, that a receptionist or other receiver will only mark a proffered delivery note Goods/Services not Checked and no G.R.N/Memo will be issued by such receiver. Procedures 1. 2. 3. The company will have printed books of G.R.N in triplicate and these will be sequentially numbered: stocks kept by finance. A G.R.N. / Memo book will be issued to each Department Head. On checking the quality and volume of goods received or an approval of a service rendered the G.R.N. will be completed. Top copy to supplier Second copy to be retained by Department Head to check against the subsequent invoice. 4. the; i) Order for price, volume and quality Third fixed copy to be retained in the book. On receipt of the invoice the Department Head will check the invoice against

LEADS WEST AFRICA RESOURCES LIMITED

(PRENUMBERED) GOODS RECEIVED NOTE

Vendor Name Address:. . . S/N Qty DESCRIPTION

Date:

Units Received

Prepared By

Authorised By

ii)

The G.R.N. for volume and quality

5.

The Managing Director will authorize the invoice by signing it and return the invoice and relative G.R.N./ Memo to Finance for payment procedures.

PREFERRED SUPPLIER Applicable to: All Department Heads, Finance/Accounts Department, Management Policy 1. In the absence of a dedicated buying department, (the company is too small to warrant such an overhead) a list of preferred suppliers for routine purchases, will be issued by Account Department to All Heads of Department each January. 2. Should a Head of Department be dissatisfied with the service, quality or any other factor offered by a preferred supplier then they will discuss the matter with the management/Accountant who may or may not issue an amendment to the preferred suppliers list. Procedures 1. In November of each year the Account Department will analyze the routine purchases and make a list of such items. E.g. stationeries, computer spares and accessories etc 2. Having established the various categories of regular purchases Account Department will write to a selection of suppliers of each category requesting them to furnish the company with a range of prices of selected, frequently acquired, items and terms on the basis of being given a companys business the next year. 3. Account Department will choose the preferred supplier from the information gathered from action 2 above and issue to all Heads of Department, and creditors clerk the list of preferred supplier for next year.

Policy and Procedures Policy- Purchasing other than Inventory Capital Expenditure Petty Cash Items Staff Expenses

Applicable to: Heads of Department, Finance and Management Policy 1. This policy applies to all purchases with the exceptions stated above where such Activities are covered by their own relative policy. 2. All normal expenditure will only be incurred by the issue of a properly completed company order/ Memo. 3. In order to control expenditure and to enable Finance/Accounts Department to assess the values of orders placed, the Finance/Accounts Department will be the only issuing point of company orders. 4. The method of having an order issued will be for heads of Departments to complete a Request for an Order Form and submit it to the Finance/Accounts Department. 5. In completing a Request for an Order Form, Heads of Departments will take note of the companys preferred suppliers (see policy in that activity). 6. No company order will be issued without a firm price being obtained and stated in the Request for an Order Form. 7. Purchase Orders will be numerically sequential and in four parts: a. To supplier b. To Head of Department concerned c. Account clerk

d. Fixed copy to remain in order book 8. The official company order will be issued by the Finance/Accounts Department directly to the supplier. 9. It is policy that on issuing the order, and copies two or three, the relative Request for an order form will be stapled to the fixed copy remaining in the order book. 10. It is company policy that a Goods Received or Services Rendered Note be issued to the supplier on receipt and checking of goods delivered or of satisfaction that a service has been provided (see policy procedure on this point). LEADS WEST AFRICA RESOURCES LIMITED PRENUMBERED BANK PAYMENT VOUCHER.

Payee:..

CHEQUE NO.. DESCRIPTION.

DATE N K

Prepared By Approved By ______________________________________

Received By ______________________________________

It is recognized that for certain expenses no orders are issued, e.g. telephone

accounts, monthly rentals and emergency services or suppliers. In respect of these, see Policy and Procedure in these categories.

CROP CULTIVATION This involves the activities that are listed below. In the case of the cultivation on the companys crop plantations, the registered entrepreneurs with interest, requisite competence and experience in a particular crop will be responsible for the under listed activities according to their areas of specialization. Land Preparation Nursery and Planting of Seed Fertilization Weeding Insecticide Security The Contract Growers shall be responsible for the farming activities listed above.

CUSTOMER ADMINISTRATION MANAGER SALES AND SUPPLY OF FARM INPUTS The company would sell and supply the farm inputs such as tractors, implement, fertilizer, manure, herbicides, insecticides and other materials to its customers and other business contacts. Supply of farm inputs shall form an important term in the contract to be signed with the registered entrepreneurs. The inputs will only be supplied on requests by the contract growers. i. ii. iii. Order for farm inputs are made on Requisition form if originated internally or on Purchase Order id originated from Contract growers and clients The requisition is processed by Sales department The availability of the inputs

USE OF INVOICES, COUPONS & QUOTATION POLICY 1. SCOPE a) System generated Sales Invoices b) Quotation issued for sales covering all revenue streams

c) 2.

System generated Service contracts Invoices

3.

OBJECTIVE - To ensure that invoices and quotations are correctly raised, authorized and reconciled as necessary - To check the incidence of financial exposures through wrong billings. - To ensure consistency of format across the operations DEFINITIONS SYSTEM GENERATED INVOICES These are generated monthly through the vale system for all installations and CSDN transactions processed for the month and are released to customers statements. QUOTATION This is a temporary invoice type written at the locations to expedite payments for transactions in the month. It is usually required to accompany goods on delivery to customers. The quotations issued are sequentially numbered and are under strict control. POLICY All system generated invoices shall be issued by the customer Administration department Each invoice shall be signed off by any or two Sales Executive, Sales Manager and Operation Support Manager. All issued invoices shall be properly logged and controlled. All customers deposit must be supported by properly completed and authorized quotation

4.

5.

6.

INVOICING PROCEDURE

ACTION A. QUOTATION REQUEST FOR QUOTATION BOOKLET FROM THE BFM ISSUE BOOKLET AND RAISE A CONTROL FORM

BY

AE/ENGINEER BFM AE/ENGINEER AE/ENGINEER AE/ENGINEER

- PREPARE QUOTATION AND SIGN-OFF AS APPROPRIATE. PRICES SHOULD CORRESPOND WITH CURRENT MARKETING PRICING BULLETIN - QUOTATION FOR MACHINE SALES MUST BE SUPPORTED BY STATEMENT OF EQUIPMENT PURCHASE AND /OR CUSTOMER LPO - QUOTATION ON CONSUMABLE MUST BE SUPPORTED BY APPROVED CUSTOMERS LPO, CSDN - QUOTATION REQUEST ON SERVICE CONTRACTS MUST BE SUPPORTED BY SERVICE INVOICES - COMPLETED QUOTATION SHOULD BE DISTRIBUTED AS FOLLOWS - THE ORIGINAL COPY TO THE CUSTOMER DUPLICATE COPY TO THE BFM RETAIN THE BOOK COPY FOR THE AE/ENGINEERS RECORD - CHECK DETAILS ON THE QUOTATION FOR CORRECTNESS. RAISE OBSERVATION AND FOLLOW UP AS NECESSARY - FILE FINANCE COPY NOTE: CUSTOMERS DEPOSIT PAYMENTS MUST ALWAYS BE SUPPORED WITH QUOTATION

BFM BFM

HARVESTING Documentation Quality and Quantity Control

TRANSPORTATION

Receiving of harvested crops Moving goods from farms to processing factory POLICY ON PROCESSING OF FARM PRODUCE Purpose This document provides guideline on the processes of farm produce with emphasis on Cassava Chips Processing along the value chain. Scope The policy covers the following value chain activities. Weighing and Documentation Peeling Washing Chipping Drying Quality & Quantity Control Weighing Documentation

Documentation

CASSAVA PRODUCION POLICIES AND PROCEDURES 1. Purpose may be to the holder by SWIFT HAVEN LIMITED.
a.To authorize the payment for the goods or service supplied or rendered as the case

b.To evidence that the goods and services were satisfactorily provided to the issuer. 2. Responsibility c. The receiver of goods or services at each level of value chain activity has the responsibility of issuing the coupons after the Q&Q test of the goods or services supplied. d. Provision of authorized templates as well as terms and conditions (time, Q&Q specifications, price controls) for the value chain activities by SWIFT HAVEN.

3. Scope a. Provision of Farm Lands on lease. b. Supply of farm inputs materials such as Seeds/Stems, Herbicides, Pesticides, Fertilizer. c. Rent of Farm Machineries for Harrowing, Plouging, Planting, Irrigation such as Tractors, Power Tillers etc. d. Rent of Processing Machineries for Grinding, Chipping, Drying, Packaging, Grading etc. e. Harvested crops and other farm produce. 4. Policies i. Input cooperatives ii. Production cooperatives iii. Processing cooperatives iv. Transportation cooperatives v. Marketing cooperatives Supervision are done at the point of delivery of inputs/harvested crops/processed goods through Quality and Quantity tests. SWIFT HAVEN to: i. provide finance ii. pay the cooperatives for the services they render. iii. Design Coupon Template, iv. Specify Terms and Conditions None of the cooperatives are entitled to collect payments from the business contacts. Coupons are issued to authorized payments to the cooperatives for the businesses they concluded. Cassava are purchased at Farm Gates for N5,000 per ton standard price.
a. Establishment of Cooperatives along the Value Chain.

b.

c.

d.

e.

5.

Procedures PROCEDURES ISSUANCE OF COUPONS

VALUE CHAIN ACTIVITES

INPUT PROVISIONING

INPUT Coops received Farm Inputs from LEADS

LEADS W.A Received substandard inputs

Do the inputs meet Q&Q Spec (weigh & Testing)?

INPUT COOPS issue Coupon with a value of (5,000/ton) to LEADS W.A

PRODUCTION (At Farms/Plantation/Leads Palm)

Land Clearing, Ploughing, Harrowing, Planting, Weeding, Fertlizing, Harvesting

Deliver the Inputs to PRODUCTION COOPS

Do the inputs meet Q&Q Spec (weigh & Testing)?

PRODUCTION COOPS issue Coupon with a value of (N5,500 per ton) to INPUT COOPS

Land Clearing, Ploughing, Harrowing, Planting, Weeding, Fertlizing, Harvesting

PROCESSING

PRODUCTION COOPS deliver harvested crops to PROCESSING COOPS

PRODUCTION COOPS Receive sub standard crops Peeling, Washing, Grinding, Chipping, Drying

Do the harvested crops meet Q&Q Spec (weigh & Testing)

PROCESSING COOPS issue Coupon with a value of (N6,050 per ton) to PRODUCTION COOPS

PROCESSING COOPS process the crops

PROCESSING COOPS deliver the processed commodities to PACKAGING COOP

PACKAGING PROCESSING COOPS Receive sub standard products Weighing Grading Bagging & Packaging
PACKAGING COOPS package into exportable condition PACKAGING COOPS deliver the processed commodities to TRANSPORTATION COOPS
Do the processed goods meet the Q&Q Spec (weigh & Testing)

PROCESSING COOPS issue Coupon to PACKAGING COOPS

TRANSPORTATION

Do the packaged goods meet the Exportable Conditions (Q & Q)

TRANSPORT COOPS issue Coupon with a value of (N6,665 per ton) to PACKAGING COOPS

TRANSPORT COOPS deliver the Exportable Goods to PORT

TRANSPORT COOPS deliver non exportable goods to MARKETING COOPS or LEADS PALMS

Do the goods meet the Q&Q Spec (weigh & Testing) at PORT?

TRANSPORT COOPS receive Signed Delivery Note

ADVANCED PROCESSING
Can the goods be sold by MARKETING COOPS if Reprocessed?

PROCESSING COOPS Issue Coupons to TRANSPORT COOPS

Deliver Non Exportable Products to LEADS PALM

Reprocess the products and deliver to MARKETING COOPS

MARKETING
Do the goods pass Q&Q tests?

MARKETING COOPS issue Coupons to ADVANCE PROCESSORS MARKETING COOPS issue invoice to buyers to pay to SWIFT

MARKETING COOPS sell the products

HAULERS DELIVER FRESH TUBERS TO PEELERS PEELERS RECEIVED USING GRN

PEELERS WEIGH & PREPARE REPORT

PEELERS WEIGH & PREPARE REPORT

Policy and Procedures Policy- Purchasing other than Inventory Capital Expenditure Petty Cash Items Staff Expenses

Applicable to: Heads of Department, Finance and Management Policy 11. This policy applies to all purchases with the exceptions stated above where such Activities are covered by their own relative policy. 12. All normal expenditure will only be incurred by the issue of a properly completed company order/ Memo. 13. In order to control expenditure and to enable Finance/Accounts Department to assess the values of orders placed, the Finance/Accounts Department will be the only issuing point of company orders. 14. The method of having an order issued will be for heads of Departments to complete a Request for an Order Form and submit it to the Finance/Accounts Department. 15. In completing a Request for an Order Form, Heads of Departments will take note of the companys preferred suppliers (see policy in that activity). 16. No company order will be issued without a firm price being obtained and stated in the Request for an Order Form. 17. Purchase Orders will be numerically sequential and in four parts: e. To supplier f. To Head of Department concerned g. Account clerk

h. Fixed copy to remain in order book

18. The official company order will be issued by the Finance/Accounts Department directly to the supplier. 19. It is policy that on issuing the order, and copies two or three, the relative Request for an order form will be stapled to the fixed copy remaining in the order book. 20. It is company policy that a Goods Received or Services Rendered Note be issued to the supplier on receipt and checking of goods delivered or of satisfaction that a service has been provided (see policy procedure on this point).

It is recognized that for certain expenses no orders are issued, e.g. telephone

accounts, monthly rentals and emergency services or suppliers. In respect of these, see Policy and Procedure in these categories.

LEADS WEST AFRICA INVESTMENT HOLDINGS LIMITED PRENUMBERED BANK PAYMENT VOUCHER.

Payee:..

CHEQUE NO.. DESCRIPTION.

DATE N K

Prepared By Approved By ______________________________________

Received By ______________________________________

Procedures for Cassava Planting/Production under Leasing Agreements Activities Action by Approved by Documents Market Survey Issuing SFO Meeting the Land Owners (Government, CEO, DOP Board of Register of Interested Corporate and Individuals) Directors Lessor Resolutions of Meetings Inspection, Evaluation and Negotiation Agreeing on lease terms

Endorsement of contract agreements Payments for the acquisition of the farm lands on lease Renewal of Lease Registration of Participants and Vendors Online Registration and Accreditation of SBUs/Cooperatives/Enterprises for the handling of Farm Management, Haulage, Trainers, Processing Activities) Allocation of farms to SBU or cooperatives Training of the farm managers Supplying of inputs to farm managers (SBU/Coop/Enterprises) Issuance of coupon to the Manager Planting and harvesting MOA EAM AAM CEO DOP DOF HYN = = = = = = =

CEO, DOP DOF & Account Signatories

CEO & Board of Directors

MOA, Transfer & Lease Conveyances EAM, PVs

Admin Dept

CEO

Registration Forms AAM Engagement Letter, MOA Training Handout DN, Sales Order, Invoice Coupon Note HYN

Admin Dept DOP Sales Dept Finance Dept Farm Managers

CEO CEO DOP Fin. Mgr. Haulers

Memorandum of Agreement Expenditure Approval Memo Accreditation Approval Memo Chief Executive Officer Director of Operations Director of Finance Harvest Yield Note

Procedures for Cassava Planting/Production under Contract Growers Arrangement Activities Action by Approved by Searching, location and meeting with CEO, DOP Board of farm land owners Directors Agreeing on terms and execution of CEO, DOP CEO &

Documents Register of Interested Lessor Resolutions of Meetings MOA, Transfer &

contract agreements Payments for the acquisition of the farm lands on lease Online Registration and Accreditation of SBUs/Cooperatives/Enterprises for the handling of Farm Management, Haulage, Trainers, Processing Activities) Allocation of farms to SBU or cooperatives Training of the farm managers Supplying of inputs to farm managers (SBU/Coop/Enterprises) Issuance of coupon to the Manager Planting and harvesting

DOF & Account Signatories Admin Dept

Board of Directors CEO

Lease Conveyances EAM, PVs Registration Forms AAM Engagement Letter, MOA Training Handout DN, Sales Order, Invoice Coupon Note HYN

Admin Dept DOP Sales Dept Finance Dept Farm Managers

CEO CEO DOP Fin. Mgr. Haulers

Procedures for Cassava Production under Contract Growers Arrangements Activities Action By Approved By Documents Searching and location of farms Meeting the farmers Agreeing on contract terms and execution of contract agreement Acquisition of leased farm lands Registration and Selection of SBUs/Cooperatives/Enterprises Allocation of farms to SBU or cooperatives Training the farm managers Supplying of inputs Issuance of coupon Planting and harvesting Procurement of Cassava Activities

Action

Approve

Searching and location of farms Meeting the farmers Agreeing on contract terms and execution of contract agreement Acquisition of leased farm lands Preparation of farms for Meet the Land harvest (measuring, Owners negotiation and pricing) Engagement of harvest workers Harvesting and Delivery to Conduct if Q & Q of the Haulage firms Land meet
the Company Requirement

No

Transportation to Processing Factory s Transportation to Processing Agree on Factory terms & Registration of Haulers, conditions Peelers, Chippers and Ye Packagers s (SBUs/Cooperatives or Execute Lease Enterprises) Accreditation of haulers Agreement and Pay Allocation of farms to Completion of accredited haulers Registration Quality and Quantity Testing Form by Issuance of Coupons to Interested farmers by haulers Enterprises/Coo Loading of harvested tubers p Delivery to processing factory Receiving of fresh tubers by Sort the applicati the Peelers
ons

Ye

No

No

Do the applicants meet the requirement s?

Ye s

Train the participants