security and loss prevention MH Bhiwandi

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1. SLP SUPPORT TO ORGANISATION What is Security & Loss prevention? The SLP team helps the organization reduce risk, prevent losses, and boost profitability. It also addresses internal and external threats, preventing losses, theft, fraud, and process violations that impact the business. This is done through proactive SLP audits, investigations, and ongoing interventions such as process excellence and regular business reviews. Vision To safeguard value for the organization by establishing a world class SLP function with highest ROI, by being innovative, being collaborative with every stakeholder and being target oriented towards every metric. Philosophy Security and Loss Prevention; Safeguarding value The above phrase encapsulates the core goal of the SLP department. It involves ensuring a safe environment for our associates and aiding the organization in managing losses and enhancing profits. Ultimately, this will maximize value for customers and deliver returns to investors and employees.

2. SLP TEAM STRUCTURE

3. SLP INVESTIGATIONS BHIWANDI MH & TALOJA MH FROM 1st SEPT 2022 to 8th MARCH 2024 Mumbai MHs: Total 178 cases were reported and investigated where in this cases have been closed Recovered Value Total Value of ₹ 20,98,663 /- was recovered against identified loss value ₹ 2,828,835/- . Employee Separation Separated 185 employees altogether and Warning is given to 62 Employees. Location name Category of Investigation Count Of Investigations Total Loss Value Total Recovery Total Warnings Total Separations BHIWANDI MH Adjustment Audit 3 ₹ 127,605 ₹ 127,605 5 Bin Audit 14 ₹ 145,281 ₹ 145,191 Grazing 24 ₹ 5,404 ₹ 5,294 1 22 Process Non Compliance 30 ₹ 130,854 ₹ 130,854 26 6 Theft 9 ₹ 550,953 ₹ 1,300,609 37 BHIWANDI MH Total 80 ₹ 960,097 ₹ 1,709,553 32 65 TALOJA MH Code of Conduct 1 ₹ 0 ₹ 0 2 Grazing 30 ₹ 104,635 ₹ 104,635 9 37 Inventory Theft 1 ₹ 69,300 ₹ 69,300 4 Man-Handling 2 ₹ 0 ₹ 0 3 Process Non Compliance 46 ₹ 135,693 ₹ 135,693 22 34 Theft 18 ₹ 1,559,110 ₹ 79,482 39 TALOJA MH Total 98 ₹ 1,868,738 ₹ 389,110 31 119 Grand Total 178 ₹ 2,828,835 ₹ 2,098,663 63 184

4. NYR & Short Putaway Trend For Feb and March 2024 Feb and March Month Dry NYR and Shortage Putaway Trend Comparison Feb-24 Shipped Qty Short Qty NYR Qty Shipped Value Shortage Value NYR Value Qty Wise % Value Wise % Shortage % NYR % Shortage % NYR % 2497728 10660 1198 ₹ 293720783 ₹ 1431910 ₹ 135452 0.43% 0.05% 0.49% 0.05% Mar-24 Shipped Qty Short Qty NYR Qty Shipped Value Shortage Value NYR Value Qty Wise % Value Wise % Shortage % NYR % Shortage % NYR % 682351 3234 176 ₹ 84370362 ₹ 450830 ₹ 31634 0.47% 0.03% 0.53% 0.04% Total 2497728 qty of inventory was shipped from Dry MH Bhiwandi to DHs in Feb-2024 out of which 10660 qty was posted as short putaway and 1198 qty was posted as NYR by Mumbai DHs. Qty wise percentage of short putaway in Feb was 0.43% and NYR percentage was 0.05%. Total 682352 qty of inventory was shipped from Dry MH Bhiwandi to DHs in March-2024 till 7th march out of which 3234 qty was posted as short putaway and 176 qty is posted as NYR by Mumbai DHs. Qty wise percentage of short putaway in March-2024 is 0.47% and NYR percentage is 0.03%. NYR percentage is lowered in march compared to Feb but short putaway has been increased. To control short putaway trend we need support from MH operations for increasing QC.

5. Good Practice in HV articles movement. 100% QC Of Cigarettes & Electronics LPNs. Cigarettes and electronics NYR and shortages Trend before & After After implementing 100% HV QC trend of NYR and putaway shortages was drastically reduced. Putway short trends 0.66% in Dec-23 which is reduced 0.13% in Jan 24, and in March Putaway Shortages trend is reduced to 0.001% as of March 7th 2024. NYR was 0.21% in Dec-23 which is 0.06% in Jan-24 and in March-24 NYR trend is reduced to 0.00% as of March 7th 2024. Effiectivness Of Good Practice Month NYR %. Putaway Shortages % Dec-23 0.21% 0.66% Jan-24 0.06% 0.13% Feb-24 0.02% 0.12% Mar-24 0.00% 0.001%

6. Good Practice There has been a significant difference in the weight of scrap material. Therefore, we have established a process to weight all the garbage at the waste facility, ensuring that we can mitigate potential losses from such manipulation

7. Good Practice Of MH Liquidation Process. Good Practice For Liquidation At MH Good Practice Of Liquidation At MH - All bad inventory which maybe damaged inventory, Near Expiry Inventory or Expired Inventory is segregated by operations team and labeled in boxes. Post labeling and segregations SLP LPA physically validates all the bad inventory and stamping is done on validated inventory box labels. Liquidation LOT is raised by inventory team for the material which is segregated and validated by SLP team only. After raising LOT of liquidation team material is loaded in vendor vehicle. SLP Supervisor is present while loading liquidation material. Only SLP validated material is loaded and matched with invoice of raised LOT. This good practice helps us to ensure that only bad inventory is liquidated and prevents any kind of manipulation in liquidation activity.

8. G E MBA WALK OBSERVATION AT MH BHIWANDI Date Qty Total Value Remarks 25/02/2024 34 ₹ 5,364 Inventory handed over to MH inventory team with mail communication. 25/02/2024 39 ₹ 18,912 03/03/2024 438 ₹ 51,000 04/03/2024 359 ₹ 29,800 05/03/2024 410 ₹ 31,501 06/03/2024 13 ₹ 3,182 07/03/2024 9 ₹ 3,097 Grand Total 1302 ₹ 142,856

9. Success Story MH Bhiwandi Success Story MH Bhiwandi :- 1. The report concerns the theft of high-value electronics articles and Red Bulls grazing orchestrated by  a large group involving a total of 15 members  (including Vigilante Security agency SG-02, Holosil DEO-01, Putway Associate-08, Holosil CCTV technician-02, and forklift Driver-02). Their involvement in this malpractice activity resulted in a  total identified loss amounting to  ₹ 4,39,430/- 2. Additionally, salable physical articles worth  ₹ 47,454/-  have been recovered from culprits. 3. A total value recovery of  ₹ 1,67,747/-  has been achieved, which includes the recovery of the salaries of DEO-01, Putway Associate-08, and the 02 Security Guards. 4. A total penalty of  ₹ 8,78,860/-  has been proposed for the active involvement of the CCTV technician in malpractices, including providing crucial information facilitating theft activities. 5. Furthermore, efforts are underway to recover losses amounting to  ₹ 1,05,855/-  incurred due to the active engagement of forklift operators in the Red Bull grazing activity, assisting packers, and participating in self-grazing Total Loss Value Recovery Completed Break Up Of Recovery Recovery Amount Debit to CCTV Vendor ₹ 878,860 ₹ 439,430 ₹ 215,201 Debit to Security Agency ₹ 61,000 Total Recovery Recovery Pending Physical Recovery ₹ 47,454 POI's salaries held as penalty and recovery ₹ 106,747 ₹ 1,199,916 ₹ 984,715 Debit to forklift operator agency ₹ 105,855

10. Success Story MH Taloja Success Story MH Taloka :- 1. The report concerns the theft of ghee articles which was orchatred by a large group involving a total of 18 members  (including SIS Security agency SG-01, Driver, OB Supervisor and OB loader team). Their involvement in this malpractice activity resulted in a  total identified loss amounting to  ₹ 1,479,628/- 2. Total 18 involved staff members were separated from the organisation. 3. Case was handed over to LEA team for further legal actions. Associate packing Ghee in Tote Ghee Loaded In Vehicle Vehicle Sealed and Dispatched Incident 2 Associate packing Ghee in Tote Ghee Loaded In Vehicle & Dispatched Vehicle Unloading At Panvel DH Incident 1

11. Success Story MH Taloja Success Story MH Taloka :- 1. The report concerns the theft of ghee articles which was orchatred by Dispatch DEO, Loaders and driver   . Their involvement in this malpractice activity resulted in a  total identified loss amounting to  ₹ 69,300/- 2. Total 4 involved staff members were separated from the organisation. 3. Physical recovery of stolen ghee was done as well as cash recovery of sold ghee was also dobe from culprits. 4. Case was handed over to LEA team for further legal actions. 5. Police FIR was done by LEA team. Ghee Boxes Being Loaded In Vehicle Taloja MH Ghee Theft Case

12. Sucess Story Summary : While conducting a bin audit at Kothari Compound by SLP Manager Shakil Shaikh, 11 units of Mars brow pallet were found to be missing, after validating it was found that packer sent case pack of 12 instead of single SKU. After deep diving further it was found that MH team had sent the case pack by mistake as the barcode on the case pack was the same as the single sku. MH picker picked case pack instead of single SKU and the same was dispatched to DHs. After confirming with DHs excess qty was taken in the system by doing positive adjustment. Store Name Picker Name Base Cost Recovered Units Total value Mum-Kothari Compound Samadhan Patil 249 22 5,478 Mum-Kasarvadavali Samadhan Patil 249 11 2,739 Mum-Jogeshwari Saad Ansari 249 33 8,217 Mum-Kandivali West md tauheed salmani 249 11 2,739 Mum-Kandivali West Samadhan Patil 249 11 2,739 Mum-Virar md tauheed salmani 249 11 2,739 Mum-Bhandup Network Samadhan Patil 249 33 8,217 Mum-Parel md tauheed salmani 249 11 2,739 MUM-GHATKOPAR WEST md tauheed salmani 249 11 2,739 Total 154 38,346

13. Invenstigations Done Against NYR Bin Audits At DHs. Since January 2024. Location name Count Of Investigations Excess Inventory Found Excess Gained Warnings Separations Andheri West DH 3 ₹ 185,767 ₹ 185,767 2 Bandra West 1 ₹ 15,503 ₹ 15,503 Bhayander DH 1 ₹ 10,448 ₹ 10,448 Boriwali DH 2 ₹ 134,162 ₹ 134,162 Chembur DH 7 ₹ 171,839 ₹ 171,839 6 DH BhayenderPada 1 ₹ 31,543 ₹ 31,543 3 Dombivali West 2 ₹ 21,589 ₹ 21,589 6 Kharghar DH 3 ₹ 242,494 ₹ 242,494 1 Koparkhairne 1 ₹ 25,585 ₹ 25,585 1 Kothari Compound 4 ₹ 73,269 ₹ 73,269 2 Lower Parel Network 2 ₹ 41,886 ₹ 41,886 Nerul DH 1 ₹ 33,185 ₹ 33,185 Panvel 2 ₹ 208,531 ₹ 208,531 1 Parel (Shivdi) 1 ₹ 23,589 ₹ 23,589 1 Powai warehouse 1 ₹ 1,530 ₹ 1,530 Vashi Network DH 1 ₹ 5,658 ₹ 5,658 Waghbil New 3 ₹ 64,342 ₹ 64,342 3 Waghle Estate 2 ₹ 21,972 ₹ 21,972 Grand Total 38 ₹ 1,312,892 ₹ 1,312,892 23 3 Total 38 Investigations done and closed at DHs against Bin Audits done by SLP Inventory Auditor Team for NYR and Short Putaway posted by DHs. Total excess inventory valuing ₹ 1,312,892/- was found to be excess at DHs which has been taken as positive gain by doing positive adjustment in system. Total recovery of inventory valuing ₹ 1,312,892/- has been done by doing positive adjustments. Associates who were found guilty of posting wrong NYR and short putaway have been warned and separated from the organisation, total 23 warnings issued to associates and 3 associates separated.

14. Good Implementations At MH Bhiwandi By SLP Team Key Management Que Management at Staff Entry and frisking point Scrap & Garbage Management

15. SLP Events and Celebrations Republic Day Celebrations At MH Women’s Day Celebration At MH Monthly R&R Of SLP Team