FM La

NATIONAL THERMAL POWER CORPORATION LIMITED
MANUAL ON LOAN ACCOUNTING November 2002
A. F. FERGUSON & CO NEW DELHI
1 CONTENTS
Process No
Process Introduction Accounting Policies Loans from GOI- Funded by bilateral/ multilateral agencies Loans in local currency Loans in foreign currency Cash Credit Acceptance of Public Deposits Bonds Accounting Appendices Formats for Loan Accounting Formats for Public Deposit Scheme Formats for Bonds Accounting
Page No
01 02 03 04 05 06 Appendix I Appendix II Appendix III
4 11 16 29 32 47
Introduction This manual lays down the procedure in respect of loan accounting both in domestic and foreign currency. The manual also provides the procedure for public deposits and accounting for bonds issued. All loans are centralized at Corporate Centre. At CC the loans are allocated to the various stations/ projects. The manual provides the accounting policies and procedure for accounting for the loans received, allocation to the stations/projects, receiving the expenditure statements from the stations/projects and filing for reimbursements with the lending agency. The manual also provides the procedure in respect of cash credit accounts limits to be obtained from the banks, allocation of the limits to the station, reporting of utilization, etc. The manual provides the procedure for public deposits i.e. receipt of application, processing the application, issuing of deposit receipts, brokerage payments, interest payments as per the terms of the deposit, refunds on maturity, procedure for premature withdrawal of deposits and control over the stationary for deposits. Bond accounting procedure as contained in the manual outlines the procedure for issue and allotment of bond, payment of underwriting commission, payment of interest and on maturity, control over pre-signed stationary and destruction of stationary.
Manual on Loan Accounting
1.00 ACCOUNTING POLICIES 1.01 This section provides the accounting policies to be followed in respect of loan accounting. Borrowing cost 1.02 Borrowing cost includes the following items : Interest and commitment charges on borrowings. Amortisation of discounts or premiums relating to borrowings Amortisation of ancillary costs incurred in connection with the arrangement of borrowings Finance charges in respect of assets acquired under finance leases or under other similar arrangements Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs Charges towards prepayment / foreclosure of loans Charges on account of delayed payments
1.03 Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset (i.e. an asset that necessarily takes a substantial period of time to get ready for its intended use or sale) should be capitalised as part of the cost of that asset. The borrowing costs should be capitalized till such time the asset is capitalized / ready for use. Other borrowing costs should be recognised as an expense in the period in which they are incurred. Changes in Foreign Exchange rates 1.04 The necessity for adjustment on account of exchange rate variation arises in: repayment of loan - the difference between the exchange rate at which the repayment is effected and the rates at which the loan is appearing in the books interest payments the difference between the rates at which the interest is accrued in the books and the rates at which the interest is actually paid restatement of asset and liability at the year-end the assets and liabilities at the year-end should be restated in the books of account based on the closing exchange rate.
1.05 The transactions in foreign currency should be recorded at the rates prevailing as on the date of the transaction. At the year end, foreign currency denominated assets and liabilities should be restated at the rates of exchange prevailing at the year-end.
1.06 The exchange rate variation on restatement of the asset/ liability should be adjusted in the carrying cost of the fixed assets or charged to profit and loss account, as the case may be 1.07 The exchange rate variation (ERV) on account of repayment and restatement of loan liability relating to qualifying assets should be capitalised. The ERV on interest component relating to the qualifying assets should be capitalised only during the construction period and thereafter should be charged to revenue. 1.08 The procedure to be followed and the basis of computing and allocating interest cost and the ERV to capital assets has been provided in the manual on Fixed Assets Accounting. Disclosure requirements 1.09 The financial statements should comply with the disclosure requirements as required under the Companies Act, 1956 as well as the relevant Accounting Standards. 1.10 As per the Companies Act, 1956 the loans taken should be classified as secured / unsecured with the following disclosures under each of the categories: Secured loans Secured loans are to be classified as: Debentures Loans and advances from banks Loans and advances from subsidiaries Other loans and advances
Unsecured loans Unsecured loans are to be classified as: Fixed deposits Loans and advances from subsidiaries Short term loans and advances from Banks Others Other loans and advances from Banks Others
Other disclosures The following disclosures should be made in the financial statements: Interest accrued and due on secured loans to be included under the appropriate subheads given above The nature of security to be specified in each case of secured loans Terms of redemption or conversion (if any) of debentures issued to be stated with the earliest date of redemption or conversion Loans from directors to be shown separately Where loans have been guaranteed by managers and/or directors a mention thereof should be made and also the aggregate amount of such loans under each head
1.11 In addition to the above, the following are also required to be stated in the financial statements of the company: accounting policy adopted for borrowing costs; and borrowing costs capitalised during the period.
Process: Loans from Government of India (GOI) Funded by bilateral/ multilateral agencies Process Brief:
Process No: 01
Certain loans from bilateral/multilateral agencies are routed through GOI who in turn on lend such loans to NTPC as budgetary support. The loan is given for specific projects and the packages / parts of packages/ items that are to be funded out of the loan are also specified in the loan sanction. In case of such loans, the expenditure incurred by NTPC should be compiled and a claim for reimbursement should be lodged on the concerned agency. The claim is approved by the agency and the amount is remitted to the GOI. NTPC in turn should apply to the GOI to draw the amount as loan periodically. The claims should be lodged periodically as specified by the agency. These loans are received and repaid in local currency by NTPC. The interest on the loans is also paid in local currency. Hence, there is no ERV component on account of these loans. The section concerned should ensure that: . The claims are lodged in the specified formats and within the time frame prescribed No duplicate claims are filed The claims are filed on the basis of the actual expenditure incurred i.e. cash basis. Each reimbursement received from GOI is treated as a separate loan. That the claims filed are periodically reconciled with the books of account The loans are approved by the Board of directors
Departments/ Sections involved in the process: Budget Section, CC International Finance, CC Treasury Section, CC F&A Deptt, Project
Process: Loans from GOI Receipt of loan S. No Activity Sanction of loan 1 Receive a sanction/ approval from GOI for the loan component along with the details of the: Loan amount Lending agency Terms and conditions of the loan Projects and the specific packages to be funded out of the loan Instructions for filing of claims (time period and formats for filing the claim) Other requirements to be fulfilled IF Section CC As when and Person Responsible Frequency Remarks
Enter the details in the system to update the loan master Provide to the projects concerned the specifications of the packages/items to be funded by the loan, the format and periodicity of submitting the information to the IF Section for filing the claim Generate a BPV for payment of the front end fees i.e. commitment charges, guarantee fee, etc (applicable as per the terms of the loan sanction) Verify and authorise the BPV as per IWA and forward to Treasury section for releasing the payment Release payment as per procedure detailed in Cash and Bank manual .
IF Section CC
Within 2 days of intimation from GOI As and when
IF Section CC
Treasury section
Same day
S. No 5
Activity Drawal of funds In the case of project specific loans enter the loan as the source of financing on the vouchers as and when bills are processed and payments are released. Compile a report of the expenditure incurred in respect of the package/item funded by the loan and forward it along with all the necessary supporting documents( such as Invoices, proof of payment, copies of Railway receipt etc.) to I F section CC Receive the report from the projects Ensure that the reports have been received from all the projects concerned. Verify the reports and ensure that Only the qualifying expenditure in respect of the specified packages/ items has been included in the report all the necessary documents are enclosed The cumulative expenditure claimed is within the sanctioned limit as per the loan agreement Consolidate the information received from all the projects concerned and compile the claim document
Person Responsible F&A Project
Frequency
Remarks
As and when
F&A Project
Monthly
IF Section CC
By the 7th of the following month Monthly
IF Section CC
Within 2 days
Comply with other requirements, if any, and file the claim with GOI along with all the necessary documents Receive the funds (vide cheque/ pay Budget Section order) from the GOI, as per the CC sanction order. Forward the cheque/ pay order to the
As and when
S. No
Activity Treasury Section (along with the details of the lending agency and the account head to which the amount is to be credited) to generate BRV and to deposit the cheque/pay order in the bank Update the loan ledger with the details of the loan received
Person Responsible
Frequency
Remarks
10
12
Generate BRV and deposit the cheque/pay order in the bank as per procedure detailed in the manual on cash & Bank MIR Statement of utilisation of the funds Generate a statement (projectwise/package-wise) of loan sanctioned and the utilisation thereof in respect of each loan. Reconciliation of claims filed with the books of account Prepare a reconciliation statement in respect of expenditure reported for raising the claim on the lender with the expenditure recorded in the books of account Status of claims lodged and reimbursements received Prepare a report on the status of the claims lodged and the reimbursements received indicating the reasons for the discrepancies/ delays, if any.
Treasury section
Same Day
IF Section, CC
Monthly
13
F&A Project
Quarterly
13
IF Section, CC
Quarterly
Process Interest payments Each drawal from GOI is to be treated as a loan with a unique loan number assigned to it. The interest should be paid as per the terms of the agreement at the rate of interest indicated in the sanction order. Interest payments would accrue from the date of the drawal. Process : Interest payments S. No 1 Activity Person Responsible Frequency Remarks
Interest payments Update the interest rate in the system Budget Section As and to calculate the interest payable as per CC when the terms of the loan. (interest rates are intimated by GOI) Generate a statement of interest Budget Section Monthly payments falling due in the CC subsequent month providing the interest computation for each loan. Forward a copy of the statement to the Treasury Section, CC for fund planning Generate a BPV for payment of interest. 2 days prior to the due date for payment of interest.
Verify and authorize the BPV as per IWA and forward to Treasury section for releasing the payment Same day Release payment as per procedure Treasury Same day detailed in manual on Cash & bank section section Interest accrual Generate statement of interest Budget Section Period accrued providing the computation CC closing for each loan Generate a JV for the interest accrued on all the loans
S. No
Activity Verify and authorize the JV as per IWA. Follow procedure as per manual on Books for generation and updation of JV Reverse the entry for interest accrued
Person Responsible
Frequency
Remarks
Beginning of the next month after period closing
MIR 5 Interest payable financial year during the Budget Section, CC Beginning of the year
Generate a statement of the total interest payable during the financial year on account of all loans along with the due dates for payment Forward a copy to Treasury section for fund planning. Delays in interest payment Prepare a report on delayed payment of interest, indicating the reasons for delays for review by competent authority Process : Repayment of Loan
Quarterly Budget Section, CC
All loan repayments should be made by the due date as stipulated in the loan agreements. Process : Repayment of Loan S. Activity No 1 Generate a statement of the loan repayments falling due in the succeeding month Forward a copy to the Treasury Section for fund planning
Manual on Loan Accounting 9
Person Responsible Budget Section CC
Frequency Monthly
Remarks
S. No
Activity Generate a BPV for repayment of loan Verify and authorize the BPV as per IWA and forward to Treasury section for releasing the payment
Person Responsible
Frequency 2 days prior to the due date for loan repayment
Remarks
Release payment as per procedure detailed in manual on Cash & bank section
Treasury section
Same day
The BPV would update the details of the loan repayments in the loan ledger/ master
MIR 4 Repayment schedule of loans during the financial year Generate a statement of the loans scheduled for repayment during the financial year along with the due date of repayment Forward a copy to treasury Section for funds planning. Delays in loan repayments Prepare a report on delays in repayments of loan indicating the reasons for the delays for review by of competent authority Budget Section, CC Quarterly Budget Section, CC Beginning of the year
10
Process: Prepayment of Loans S.No 1 Activity Seek internal approval Competent Authority prepayment of GOI Loan Person Responsible of Budget for Section(For Domestic Loans) for - do - do Frequency As and when Remarks
2 3
4 5 6
Seek approval of GOI prepayment of loan Generate a statement of the prepayment charge if any applicable as per the loan agreement payable to GOI Generate a statement of the loan amount proposed to be prepaid Generate a statement of the interest payable up to the date of payment of loan Generate a BPV for above. Verify and authorise BPV as per IWA and forward to Treasury Section for releasing payment Release payment as per procedure detailed in Manual Cash & Bank Section
- do - do -
- do - do - do -
- do - do - do -
Treasury Section
Same day
Document - Records Document Title Loan sanction from GOI Loan/ Interest Ledger Report of expenditure incurred Consolidated Statement of expenditure incurred (Claim Form submitted to lending agency) Document Type I R O O Format Ref LA/01 LA/02 LA/03 Frequency As & when As per the time frame specified As per the time frame specified Distribution IF Section, CC - IF Section, CC F&A Projects IF Section, CC IF Section, CC Budget Section, CC Lending Agency
11
Document Title Statement of Interest payable Schedule of repayments loan
Document Type MIR
Format Ref LA/MIR/01
Frequency Annually/ Monthly Annually/ Monthly As and when Monthly Monthly Quarterly
Distribution Budget Section, CC Treasury Section, CC Budget Section, CC Treasury Section, CC Budget Section, CC F&A Project Budget Section, CC F&A Project Budget Section, CC Budget Section, CC F&A Project IF Section, CC
MIR
LA/MIR/02
Statement of loan from GOI and the projects financed thereunder Statement of loan utilisation Status of Claims Lodged and disbursements received Report On delays in Interest payment/ Loans repayments Reconciliation Statement of claims filed with the books of account BRV
O MIR MIR MIR MIR
LA/04 LA/MIR/03 LA/MIR/04 LA/MIR/05 LA/MIR/06
As and when As and when As and when
BPV
JV
Treasury aection, CC Budget Section, CC Treasury aection, CC Budget Section, CC Budget Section, CC
Accounting Entries At CC On receipt of loan Bank A/c Loan A/c

Dr Cr
12
On accrual of interest Interest A/c Interest accrued A/c On payment of interest Interest Accrued a/c Bank A/c On reversal of interest accrued Interest accrued A/c Interest A/c On repayment of loan Loan A/c Bank A/c Dr Cr Dr Cr Dr Cr Dr Cr
On transfer of interest to Project / Station Inter unit/Cash Credit a/c Interest a/c Dr Cr
At projects/Stations Interest A/c Inter unit/Cash Credit A/c Dr Cr
13
Process: Loans in local currency Process Brief:
Process No: 02
This process describes the procedure to be followed in respect of loans taken in local currency The section concerned should ensure that: The loans are approved by the Board of Directors The loan tranche is drawn after assessment of requirement and taking approval of competent authority. In case of project specific loans a) The claims are lodged in the specified formats and within the time frame prescribed b) No duplicate claims are filed c) The claims are filed on the basis of the actual expenditure incurred i.e. cash basis d) That the claims filed are periodically reconciled with the books of account Certificates regarding compliance of loan covenants are issued in time as per the conditions of Loan agreement
Departments/ sections involved in the process Budget Section, CC Treasury Section, CC F&A Deptt Projects
Process : Receipt of Loan Activity Person Frequency S. No Responsible 1 Receive the loan agreement and enter the Budget Section As and when details in the system to update the loan CC master 2 In case of project specific loans, provide to Budget Section Within 2 days the projects concerned the specifications of CC of intimation the packages/items to be funded by the from the loan, the format and periodicity of lender submitting the information to the Budget Section for filing the claim 3 Generate a BPV for payment of the front Budget Section As and when end fee i.e. commitment charges, guarantee CC Remarks
In case charges
14
the are
S. No
Activity fee, etc as applicable as per the terms of the loan sanction. Verify and authorise the BPV and forward to Treasury section for releasing payment
Person Responsible
Frequency
Remarks deducted by the bank then account for the same based on the bank advice
4 4
Release payment as per procedure detailed Treasury Same Day in manual on Cash & Bank section Section Forward the documentation (as required for Budget Section As and when drawal of the loan as per the terms of the CC loan) duly approved by the competent authority to the lending agency Receive the funds (vide cheque/ pay order/ Budget Section As and when direct credit in the bank account) from the CC lending agency. Forward the cheque/ pay order to the Treasury Section (along with the details of the lending agency and the account head to which the amount is to be credited) to generate BRV and to deposit the cheque/pay order in the bank
In case of direct credit by the bank, account Treasury for the same on the basis of the bank Section/ advice as per the procedure provided in the Budget Section manual on Cash and Bank section. Update the loan ledger with the details of the loans received Generate BRV and deposit the cheque/ pay order as per procedure detailed in the manual on Cash & Bank section In case of project specific loans, enter the loan as the source of financing on the vouchers as and when bills are processed and payments are released.
As and when
7 8
Treasury section F&A Project
Same day As and when
15
S. No 7
Activity Compile a report of the expenditure incurred in respect of the package/item funded by the loan. (The expenditure report to be generated by sorting the payment vouchers by the source of financing after the cut off date of the earlier report) Forward the report to the Budget Section, CC along with all the necessary supporting documents
Person Responsible F&A Project
Frequency Monthly
Remarks
By the 7th of the following month Budget Section - CC Monthly
Receive the report from the projects Ensure that the reports have been received from all the projects concerned
Verify the reports and ensure that Only the qualifying expenditure in respect of the specified packages/ items has been included in the report all the necessary documents are enclosed The cumulative expenditure claimed is within the sanctioned limit as per the loan agreement Consolidate the information received Budget Section from all the projects concerned, compile CC the claim document and file with the lending agency (along with the supporting documents). Also comply with other requirements, if any, as per the loan agreement
Within 2 days
Within 2 days
Interest accounting and Repayment of loans The procedure, MIR reports and the accounting entries for interest payments, accrued interest and repayment of loans shall be as provided in the case of loans received from GOI, funded by bilateral/multilateral agencies (Process 1)
16
Process: Prepayment of Loans S.No 1 Person Responsible Seek internal approval of Budget Competent Authority for Section(For prepayment of lender Loan Domestic Loans) Seek approval of lender for - do prepayment of loan Generate a statement of the - do prepayment charge if any applicable as per the loan agreement payable to lender Generate a statement of the loan - do amount proposed to be prepaid Generate a statement of the interest - do payable up to the date of payment of loan Generate a BPV for above. Verify - do and authorise BPV as per IWA and forward to Treasury Section for releasing payment Release payment as per procedure Treasury detailed in Manual Cash & Bank Section, CC Section Activity Frequency As and when Remarks
2 3
- do - do -
4 5 6
- do - do - do -
Same day
Document - Records Document Title Loan agreement Document Type I Format Ref Frequency As & when Distribution Budget Section, CC Company Secretary, for safe custody. F&A Projects Budget Section, CC Budget Section, CC Treasury Section, CC
17
Loan/interest ledger Report of expenditure incurred Schedule of Interest payable

R R MIR
LA/01 LA/02 LA/MIR/01
As per the time frame specified Annually/ Monthly
Document Title Schedule of repayment Report on delays in loan repayments Reconciliation Statement of claims filed with the books of account BPV
Document Type MIR MIR MIR
Format Ref LA/MIR/02 LA/MIR/05 LA/MIR/06
Frequency Annually/ Monthly
Distribution Budget Section, CC Treasury Section, CC Budget Section, CC F&A Project
As and when
JV Bank Advice
O I
As and when As and when
Cash and bank Section, CC Budget Section, CC Budget Section, CC Cash and bank Section, CC Concerned Section
18
Process : Loans/Bonds in foreign currency Process Brief
Process No : 03
This process lays down the procedure to be followed in respect of loans taken in foreign currency. In case of loans in foreign currency, the necessary approvals from the Ministry of Finance and RBI should be obtained. Moreover, it should be ensured that the guidelines as provided by the RBI, Income-tax authorities, etc, as applicable in this respect have been complied with. Types of loans in foreign currency Loans in foreign currency are broadly classified as under: Syndicated Loan Export Credit International Bonds
Drawal of loans The drawal of the loans maybe in either of the following forms: Bullet disbursement disbursement of the amount on the due dates as mentioned in the loan agreement Staggered disbursement - disbursement of an amount over a period of time. The staggered disbursement is made based on either of the following: - Claims submitted (reimbursement of expenditure/ recoupment of imprest amount) - Direct payments to suppliers
It should be ensured that: The loans are approved by the Board of Directors. The loan tranche is drawn after assessment of requirement and taking approval of competent authority. The loan liability is restated at the time of closing of accounts. The exchange rate variation has been appropriately computed and accounted for on repayment/restatement of the loan liability Claims for reimbursement are filed with the lending agency as per the terms of the loan agreement Certificates regarding compliance of loan covenants are issued in time as per conditions of Loan agreement
19
Departments/ sections involved in the process IF Section, CC Treasury Section, CC F&A Deptt Projects
Process: Receipt of loan S. No 1 Activity Sanction of Loan Receive the loan agreement and ensure that the terms are as agreed and finalised with the lending agency Enter the details in a loan master Provide the Projects that are covered under the funding with the specifications of the packages/items to be funded by the loan, the format and periodicity of submitting the claim documents to the IF Section Provide the details of loan amount sanctioned, likely dates of loan drawal, terms of payment, etc to Treasury Section for fund planning Generate a BPV for payment of the front end fees i.e. management fee, insurance premium, if any, etc. (the charges/ fees that are payable in local currency) as per the terms of the loan sanction Generate an instruction to the banker for payment of the commitment charges, etc. (the charges that are payable in foreign currency) as per the terms of the loan sanction IF Section CC As when and Person Responsible Frequency Remarks
IF Section CC
Within 2 days of intimation from the lender
IF Section CC
As when
and
20
S. No
Activity Verify and authorise the BPV/ instruction to the banker as per the IWA Forward the BPV to the Treasury Section for releasing the payment / Forward the instruction to the banker concerned to make the payments In case the charges are deducted by the bank then account for the same based on the bank advice as per manual on Cash & Bank section.
Person Responsible
Frequency
Remarks
3 4
Release payment as per procedure detailed in manual on Cash & Bank section Enter the loan as the source of financing on the vouchers as and when bills are processed and payments are released.
Cash and Bank Section F&A Project
Same Day As and when
Drawal of funds 5 6 Provide a notice of draw down/ claim to the lending agency to arrange for the disbursement Receive the funds in the (overseas) bank account from the lending agency or receive the funds directly in the designated account of the Bank located in India. Finalise the terms for remittance of funds with the (overseas) banker (i.e. exchange rate, bank where the remittance is to be made, etc) Generate a BPV to account for the transfer of funds from the (overseas) bank account to the (domestic) bank account
IF Section CC IF Section CC
2 days prior to the draw down date As and when
S. No
Activity Receive a credit advice from the Cash and Bank Section for the funds received in the (domestic) bank account. Ensure that the credit has been received for the drawal amount at the agreed rate of exchange Generate a BRV/ journal voucher to account for the credit advice generation, approval and updation of BRV as per the Cash and bank system
Person Responsible
Frequency
Remarks
In case the drawal of loan is by way of release of payment directly by the lender to the contractor Prepare a JV to account for the disbursement, as per the manual on Books section.
IF Section CC
As and when
Expenditure incurred against loans drawn 8 Compile a report of the expenditure incurred in respect of the package/item funded by the loan. F&A Project/ IF Section, CC Within the This report would time frame be required only specified in case of loans received on a reimbursement basis As and when
Forward the report along with all the F&A Project claim documents to the IF Section, CC Receive the reports along with the IF Section claim documents from the projects. CC Ensure that the reports have been received from all the projects concerned. Verify the reports and ensure that: Only the qualifying expenditure in respect of the specified
Within 2 days
22
S. No
Activity packages/ items (as per the loan agreement) has been included All the necessary documents are enclosed Consolidate the information received from all the projects concerned and the payments released from the IF Section on account of the projects Prepare the claim on the lending agency (as per the prescribed formats) After approval of the competent authority as per the IWA, forward the claim to the lending agency
Person Responsible
Frequency
Remarks
10
IF Section CC
Within 2 days
MIR 11 Statement of utilisation of the funds Generate a (project/ package wise) statement of the utilisation of the loan (both in rupees as well as in the lender currency) 12 Reconciliation of claim documents F&A - Project submitted to the IF Section with the books of account Prepare a reconciliation statement (loan-wise) of the expenditure reported (against the specified packages/ items financed under the loan) with the expenditure recorded in the books of account Quarterly IF Section monthly
23
S. Activity No 13 Status of claims lodged reimbursements received
Person Responsible and IF Section, CC
Frequency
Remarks
Prepare a report on the status of the claims lodged and the reimbursements received indicating the reasons for the delays/ discrepancies, if any. Process : Interest Accounting S. No Interest payments 1 Generate a statement of interest payments falling due in the year/succeeding month providing the interest computation for each loan (the current date exchange rate should be adopted to work out the indicative amount due in Rupee terms) Finalise the exchange rate with the banker for payment of interest. Intimate the Treasury Section about the value date, amount and bank for arranging the funds Receive the debit advice for the payment from the Treasury Section. Check that the advice is for the interest amount due for payment at the exchange rate agreed with the banker Generate a JV to account for the advice Verify and authorize the JV as per IWA
Monthly
Activity
Person Responsible
Frequency
Remarks
IF Section CC
Monthly/
Yearly
As and when (spot, TOM, Cash). As and when Same day
24
S. No
Activity Follow procedure detailed in manual on Books Section for generation and updation of JV The system to update the interest ledger for the interest amount paid
Person Responsible
Frequency
Remarks
Interest accrual 2 Generate statement of interest accrued providing the computation for each loan Generate a JV to account for the interest accrued on all the loans Verify and authorize the JV as per IWA. Follow procedure as per manual on Books for verification and authorisation of JV Reverse accrued MIR 3 Interest payable financial year during the IF Section, CC Beginning of the year the entry for interest Budget Section CC Period closing
Beginning of the next month
Generate a statement of the total interest payable during the financial year on account of all loans along with the due dates for payment, based on the exchange rate prevailing on the date of generation of the report. Forward a copy to Treasury section for funds planning
25
Process : Repayment of Loan S. No 1 Activity Generate a statement of loan repayments falling due in the subsequent month, providing the loanwise details (the exchange rate as on the current date should be adopted to work out the indicative amount due in Rupee terms ) Finalise the exchange rate with the banker for the repayment of the loan amount. Intimate the Treasury Section about the value date, amount and bank for arranging the funds Receive the debit advice of the amount of repayment from the Treasury Section. Check that the advice is for the repayment amount and as per the exchange rate agreed with the banker Generate a JV to account for the advice Verify and authorize the JV as per IWA Follow the procedure detailed in manual on Books section for generation and updation of JV For accounting for bank advices follow the procedure as outlined in the manual on Cash and Bank Section 2 Report on delays in loan repayments Prepare a report on the delays in repayment of loans indicating the reasons for review of competent authority Person Responsible IF Section CC Frequency Monthly Remarks
The system would update the loan As and ledger for the amount repaid. When (spot, TOM, Cash)
As when
and
IF Section, CC
Quarterly
26
Process: Prepayment of Loans S.No 1 Person Frequency Responsible Seek internal approval of IF Section As and when Competent Authority for (For prepayment International Loans) Seek approval of the lender for - do - do prepayment of loan Generate a statement of the - do - do prepayment charge if any applicable as per the loan agreement payable to lender Generate a statement of the loan - do - do amount proposed to be prepaid Generate a statement of the interest - do - do payable up to the date of payment of loan Generate a BPV for above. Verify - do - do and authorise BPV as per IWA and forward to Treasury Section for releasing payment Release payment as per procedure Treasury Same day detailed in Manual Cash & Bank Section, CC Section Activity Remarks
2 3
4 5 6
Restatement of loan liability 3 Generate a statement of the outstanding loan liability at the closing rate of exchange Generate a JV for restating the loan liability outstanding at the rates of exchange at the quarter end. Account for the gain/ loss on exchange rate as exchange rate variation (ERV) Verify and authorise the JV as per IWA
IF Section CC
At the closing date of Account
Follow the procedure as detailed in the manual on Book section for generation and updation of JV. Reverse the entry MIR 4 Repayment schedule of during the financial year loans IF Section, CC
At the beginning of Accounting period
Generate a statement of the loans scheduled for repayment during the financial year along with the due dates for payment, based on the exchange rate prevailing on the date of generation of the report. Forward a copy to Cash & Bank section for funds planning. Document - Records Document Title Loan Agreement Loan/ Interest Ledger Statement of expenditure incurred Consolidated Statement of expenditure incurred (Claim Form) submitted to the lending agency Statement of Interest payable Schedule of loan repayments
Beginning of the year
Document Type I R R O
Format Ref LA/01 LA/02 LA/03
Frequency As & when As per the time frame specified As per the time frame specified -
Distribution IF Section, CC F& A (concerned) Project F&A Projects IF Section, CC IF Section, CC Lending agency
MIR MIR
LA/MIR/01 LA/MIR/02
Annually/ Monthly Annually/ Monthly
IF Section, CC Treasury Section, CC IF Section, CC Treasury Section, CC

28
Document Title Statement of loans from international funding agencies and the projects financed thereunder Statement of loan utilisation Status of Claims Lodged and disbursements received Report on delays in loan repayments Reconciliation Statement of claims filed with the books of account BRV BPV Journal Voucher Accounting Entries On receipt of loan Bank A/c Loan A/c On payment of interest Interest a/c Bank A/c On accrual of interest Interest A/c Interest accrued A/c
Document Type O
Format Ref
Frequency As and when -
Distribution IF Section, CC
MIR R
LA/MIR/03 LA/MIR/04
Monthly Monthly
IF Section, CC IF Section, CC
MIR MIR
LA/MIR/05 LA/MIR/06
Quarterly
IF Section, CC IF Section, CC F&A Project Cash and bank Section, CC Cash and bank Section, CC IF Section, CC
O O O
As and when As and when As and when
Dr Cr
Dr Cr
Dr Cr
29
On reversal of interest accrued Interest accrued A/c Interest A/c On repayment of loan Loan A/c ERV A/c Bank A/c On restatement of loan at the year-end ERV A/c Loan A/c Dr/Cr Cr/Dr Dr Dr/ Cr Cr Dr Cr
On transfer of interest to Project / Station Inter unit/Cash Credit a/c Interest a/c At projects/Stations Interest A/c Inter unit/Cash Credit A/c Dr Cr Dr Cr
30
Process : Cash Credit
Process No : 04
This process lays down the procedure to be followed in respect of utilisation of cash credit limits from the Banks. An arrangement for cash credit facility by way of sanction of cash credit limits is entered into with the Banks. The cash credit facility would entitle the company to utilise funds to the extent of the limits as sanctioned by the Banks for financing the working capital requirement of the company. The cash credit limits to be obtained from the bank should be based on the average working capital requirement of the company as assessed at the beginning of each financial year based on the Operation and Maintenance budget estimates as approved for the company. The overall cash credit limit of the company may be allocated to the stations or it could be retained as a central pool at Corporate Centre. In case the limits are to be allocated to the stations, the quantum may be determined based on the working capital requirement of the individual stations as projected in the budget estimates of the O & M budget of the respective stations. The cash credit limit availed should be periodically reviewed to ensure that the actual utilisation of the limit is within the sanctioned limit. Based on the actual utilisation the limit should be increased / decreased. In case the cash credit limits are allocated to the stations, the day-end balances of all the cash credit accounts of the stations should be transferred to the central pool account with the respective banks at CC. At CC, the closing balance should be reviewed on a daily basis to ensure utilisation within the sanctioned limit and for revision of the limits to the stations, if required. An MIR should be generated by the Cash and Bank Section on a weekly basis providing an analysis of the cash credit limit and the actual utilisation during the period. The MIR should be submitted to the ED (F)/ Director (F) for review and necessary action i.e. for increasing/ decreasing the cash credit limit. Accounting for cash credit In case the cash credit limit is allocated to the stations and at the day end the closing balance is transferred to the central pool at Corporate Centre then the transfer of the balance to CC is to be accounted for by the stations and similarly an accounting entry would be passed at CC for the balances received in the central pool. The accounting entries should be passed through the Inter Unit Cash Credit Accounts.
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Interest payable on the cash credit limit The interest on the cash credit account should be accounted for at CC after due verification. At the period end, the interest on the cash credit utilised should be allocated in proportion to the cash credit limits allocated to the stations through Inter Unit Cash credit Fund account. Interest debited by the bank is to be verified to ensure that the rate of interest and the period are as per the actual utilisation by the company. Bank Reconciliation Statement A bank reconciliation statement should be prepared on a monthly basis as per the procedure provided in the manual on Cash and Bank. Procedure: Accounting for cash credit balances transferred and interest on cash credit S. No. Activity Person responsible Frequency Remarks
Accounting for transfer of cash credit balances 1 Generate an IUA to account for the transfer of the cash credit balance to the central pool at CC as per the procedure provided in the manual on Books Section Generate an IUA to account for the cash credit balances transferred from the stations to the central pool at CC as per the procedure provided in the manual on Books Section Accounting for interest on cash credit 3 Receive the bank statements in respect of the Cash credit account. Review the statement and enter the day-end balance in the system to update the Cash Credit utilisation Register Receive the debit advice from the bank in respect of the interest payable. Cash and Bank Section, CC Monthly Cash and Bank Section - Unit Monthly
Cash and Bank Section, CC
Monthly
Monthly
32
S. No.
Activity Verify the interest from the Cash Credit Utilisation Register. Account for the bank advice as per the procedure provided in the manual on Cash and Bank. Generate an inter unit debit advice to transfer the interest to the stations (based on the limits sanctioned to the units) as per the procedure provided in the manual on Book Section
Person responsible
Frequency
Remarks
5.
Quarterly/ Period- End.
Document - Records Document Title Bank Statement Cash Credit Utilisation Register Inter unit Advice Statement of utilization of Cash Credit Limits Documen t Type I R O MIR Format Ref LA/05 LA/MIR/07 Frequency Daily As and when Monthly F&A Department, Station Finance Head ED (Finance) Director (Finance) Distribution Cash and Section Bank
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Process : Acceptance of Public Deposits Process Brief
Process No : 05
This process lays down the procedure to be followed in respect acceptance of public deposits. Public deposits should be accepted in accordance with the provisions of the Companies Act, 1956 and the Rules prescribed thereunder, after due approvals from the Board of Directors have been obtained. Departments/ sections involved in the process Public Deposit (PD) Section, CC F&A Deptt Regional Office/ inspection offices Collection Centres
Process : Acceptance of Public Deposit The applications for the deposits are received either through Manager-cum-Brokers (brokers) appointed by the Company or directly by the Company. The applications are received at the Collection Centres as indicated in the application form. The collection centres represent the specified Regional Offices, projects, inspection offices and Corporate Centre (Public Deposit section). The applications received by the brokers should be deposited with any of the collection centres. At the collection centres a separate bank account should be maintained and the funds received on account of deposits should be deposited in that account only. A standing instruction should be issued to the banker to transfer the funds to the designated bank account in CC on a weekly basis. The PD certificates should be issued centrally by the Public Deposits Section at CC. The Public Deposits Section should ensure the following: A record of the deposits accepted is maintained containing the details as prescribed under the Companies Act, 1956 and Acceptance of Deposit Rules An Annual Return duly certified by the auditors of the company is submitted on or before 30th June of every year, for the year ended 31st March of that year
Process : Acceptance of Public Deposits S. Activity No 1 Receive the application for public deposit (directly from the applicant/
Person Responsible Collection centres
Frequency As and when
Remarks
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S. No broker).
Activity
Person Responsible
Frequency
Remarks
Check that: the application form has been completed in full the documents as required have been furnished (including the relevant form for non-deduction of tax, wherever applicable) amount of the deposit has been received in the mode as specified cheque/ DD Ckeck the validity of the instrument and issue an acknowledgment to the applicant/ broker. In case of deposits received by the brokers, sign the duplicate copy of the challan as acknowledgement of receipt of application form. (Acknowledgement to the applicant is issued by the broker) Generate a pay-in-slip (PIS) for the amount received and deposit the same in the designated bank. Review the bank statement to ensure that the account has been credited with for all the cheques deposited. In case of cheques dishonoured return the same to the applicant/ broker as the case may be along with the application form submitted Generate a statement of the collections received and realised on account of public deposit. Forward the statement to the PD Section, CC along with the application forms, other documents
Collection Centres Collection Centre
By the next day Daily
Weekly
Collection Centre (other than Corporate PDS)
Weekly
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S. No 5
Activity received and a copy of the bank statement for that period Receive the statement of collections received along with the documents from the Collection Centres Check that: the application form along with all the documents have been received the date of realisation of the cheque/ DD recorded on the statement is as per the bank statement Enter the details in the system to update the PD system Review the bank statement of the bank account maintained at CC to ensure that the funds as transferred from the collection centre as reported in the statement have been received Generate the following: On behalf of the collection centres - BRV for the funds received at the collection centre - BPV for transfer of funds from collection centres to CC (PD account) On account of funds received in PD account at CC - BRV for funds received - BPV for transfer of funds to CC main account On behalf of Treasury section - BRV for funds received in the main account
Person Responsible PD Section CC
Frequency
Remarks
As and when
PD Section CC
Daily/Weekly
The BRV/ BPV may be generated by the concerned Collection centre/ Treasury Section on account of funds received/ transferred
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S. No
Activity For generation of BPV and BRV follow procedure as per manual on Cash and Bank section Generate a validation report of the details entered and verify the details (name, address, amount, period of deposit, scheme under which deposit received, broker name and code, etc) entered in the system with the application forms. Forward the verified validation report along with the application forms to the competent authority for approval. Review the validation report along with the application forms and other supporting documents. Ensure that the details have been correctly entered in the system. Approve the validation report and authorize the updation in the system. Generate the PD certificate and forward it to the applicant.
Person Responsible
Frequency
Remarks
PD Section CC
Weekly
In respect of any changes to be effected say address of the depositor, etc the same procedure should be followed for changes and updation in the PD system
I/C Bonds Section
Generate a brokerage report providing the broker-wise computations after considering the recoveries, if any, from the broker (say on account of premature withdrawal, etc) Generate a BPV for payment of commission to the brokers (as per the rates agreed with the broker).
PD Section CC
Monthly
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S. No
Activity Verify and authorize the BPV as per IWA For generation and updating of BPV follow the procedure detailed in the manual on Cash & Bank Forward the authorized BPV to the Cash and Bank Section to releasing the payment. Release payment as per procedure detailed in Cash & Bank manual and hand over the cheques to Bonds section Receive the cheques from the Treasury section and forward the same to the brokers along with the detailed computations
Person Responsible
Frequency
Remarks
Cash & Bank section PD Section CC
Same day
As and when
Process: Payment of interest The interest payments should be made at the rates and as per the terms approved by the Board of Directors. In case of cumulative PDs the interest is payable only on maturity. In case of noncumulative PDs the interest payable either monthly or quarterly as per the terms of the scheme. The interest warrants should be sent to the depositors as per the guidelines issued in this respect from time to time. As per the current policy, in case of non-cumulative deposits the interest warrants for the deposits upto Rs. 16,000 are furnished for the entire period of the PD i.e. till maturity along with the PD receipt. In other cases, the interest warrants for the current financial year are sent along with the PD receipt. For subsequent years, the interest warrants are issued for a year in advance. In case of non-cumulative deposits, the TDS certificate is printed on the counterfoil of the interest warrants and in case of cumulative deposits the TDS certificates are sent annually and on maturity. For payment of interest the PD Section should ensure the following: Interest warrants are issued as per the approved terms TDS at the applicable rates is deducted TDS is deposited with the authorities within the stipulated period as prescribed
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Funds equivalent to the interest warrants vouchers issued are available in the designated bank account prior to the due dates for payment
Accounting for interest warrants issued in advance The interest amount should be accounted for in the period in which it is due. Process : Payment of Interest S. Activity No 1 Enter the interest rate and the applicable Tax rates in the system to calculate the interest payable and the tax to be deducted as per the terms of the PD. 2 Generate a statement of the total interest payable and the TDS providing the detailed computations Generate a BPV and forward the same along with the computation statement to the competent authority for verification and authorization Verify and authorize the BPV as per IWA Follow the procedure outlined in the manual on Cash and bank for generation and updation of BPV. For subsequent years, generate the interest warrants and issue the same to the depositors along with the PD receipt Cumulative PDs Generate a statement of the interest accrued and the TDS component providing the depositor-wise detailed Person Responsible PD Section, CC Frequency As and when Remarks
PD Section, CC
On processing the PD/ period-end/ maturity
PD Section, CC
After receiving due approvals Monthly/Ann ually and on maturity

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PD Section, CC
S. No 5
Activity computation Generate a JV for the interest accrued and the TDS payable. Forward to the competent authority for approval Follow the procedure as detailed in the manual on Book section for generation and updation of JV TDS Generate a BPV for the TDS payable Verify and authorize the BPV as per IWA Follow the procedure outlined in the manual on Cash and bank for generation and updation of BPV. Forward to Treasury preparation of cheque section for
Person Responsible PD Section, CC
Frequency Monthly/Ann ually and on maturity
Remarks
PD Section, CC
By the 7th of the following month
Receive cheque from Treasury section and deposit TDS with the authorities concerned Issue the TDS certificates to the depositors in case of cumulative deposits
PD Section, CC
Within specified time schedule.
In case of noncumulative deposits, the TDS certificates are sent along with the interest warrants
Process: Renewal of PD PDs should be renewed based on the applications for renewals received from the depositors along with the duly discharged (original) deposit receipt. In respect of renewal of PDs ensure the following:
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The PDs are renewed based on an application from the depositor sent along with the original PD certificate The PDs are renewed as per the terms and conditions of the PDs
The procedure followed in case of renewal of PD is the same as in the case of a fresh receipt of PD except that in this case no funds are received. A new PD certificate is issued against the amount due in respect of the old PD certificate and the PD ledger is updated accordingly In case the PD is not renewed for the full amount or in case of cumulative PD schemes for odd amounts, the balance/ odd amount should be refunded to the holder. Process : Repayment of PD on maturity The PDs should be repaid on maturity only after the duly discharged original PD certificates have been received from the depositors. After carrying out the verification procedure the payments should be released in the form of refund warrants. In case of PDs that are unclaimed and unpaid within the period specified in this respect, the same should be deposited with the GOI. Process : Repayment of PD on maturity S. No 1 Activity Receive the duly discharged deposit certificates from the depositor Enter the details in the system Generate a statement of the PDs received for refund pending payment Process the deposits matured/ due for maturity during the week for repayments Generate the refund warrants for the deposits processed and despatch the same to the depositor after obtaining the necessary approval of the competent authority Generate a BPV (for the refund warrants issued) to transfer the funds to the designated bank account and forward the same to the competent authority for approval. Person Responsible PD Section, CC Frequency As and when Remarks
2 3
PD Section, CC PD Section, CC
PD Section, CC
As and when refund warrants are mailed
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S. No
Activity Verify and authorize the BPV Generate a BRV to account for the funds received in the designated bank account Follow the procedure as outlined in the manual on Cash and bank for generation and updation of BPV
Person Responsible
Frequency
Remarks
Process: Premature withdrawal of PD In respect of premature withdrawal of PD, the PD Section should ensure the following: Premature withdrawal of the PD is processed only on the basis of an application received from the depositor along with the original PD receipt duly discharged and the un-encashed (post dated) interest warrants, in case of non-cumulative PDs. Penal interest as per the terms of the scheme has been deducted before releasing the payment Proportionate brokerage has been recovered from the broker (in case of application received through the broker).
Process : Premature withdrawal of PD S. No 1 Activity Receive an application along with the original PD receipt and un encashed interest warrants from the depositor for premature withdrawal of the deposit ( in case of noncumulative deposits.) Enter the date of processing of the application in the system and the period upto which the interest warrants have been encashed in the system, in case of non-cumulative deposits.
Remarks
As & When
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S. No
Activity Generate a note for approval of the PDs that are to be considered for pre-mature withdrawal (providing the depositor-wise detailed calculations). Obtain the approval competent authority of the
Person Responsible
Frequency Weekly
Remarks
Generate a statement for funds required on account of pre mature withdrawal of PDs. Forward a copy to the treasury Section. Generate a BPV for the amount due to the depositors and forward to the competent authority for approval along with the relevant supporting documents. Verify and authorize the BPV as per IWA For generation and updation of BPV follow procedure as per manual on Cash & Bank section 2 Generate the refund warrants in favour of the depositors and mail it to the depositors PD Section, CC As & When
Bank Reconciliation Statement Separate bank accounts should be maintained for repayment of PDs and interest payments. The bank should submit the reconciliation statement and the paid warrants on an annual basis. The statement should be checked with the records maintained by the PD Section.
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Filing of Annual Return As per the requirements of the Companies Act, a return in the prescribed form duly certified by the auditors of the company should be filed annually with the Registrar of Companies by the 30th of June for the year ended 31st March of that year. The relevant provisions of the Companies Act in this respect should be complied with. Control over pre-printed and pre-signed stationary The bulk stationary for the PDs and the interest warrant should be kept in safe custody (in the store). The stationary drawn for daily use should be kept in the safe custody in the office. Records of the stationary (at all the locations) should be maintained. It should be ensured that: The stationary is kept under safe custody. The stock of the stationary is periodically verified and reconciled with the records maintained
Process : Control over pre-printed and pre-signed stationary S. No 1 Activity Receipt of stationary godown Prepare an LOA/ request to the supplier/bank for the computerised/ pre-signed stationary and forward the same to the respective printer/bank after obtaining due approval Receive the stationary from the supplier/bank Ensure that the stationary received is as per the order placed and in serial order Enter the details of the stationary received in the system to update the PDs Staionary Received register Transfer the stationary received to the store
Remarks The order to be placed should be based on the trends of usage as observed in the past
PD Section, CC
As and when Immediately on receipt Same day
Same day
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S. No 3
Activity
Person Responsible
Remarks
Issue of stationary from the godown Receive a request for the issue of PD Section, stationary from the store along with CC a reconciliation statement of the (Designated opening balance of stationary in the Officer) office premises, stationary utilised during the period and the balance in hand (as applicable) from the concerned official in the PD section Review the request and ensure that it is reasonable and authorise the issue of the stationary from the store Receive the stationary from the store.
Same day Concerned Officer - PD Section, CC As and when
Ensure that it is in serial order and enter the details in the system to update the stationary register Issue of stationary from the office premises Receive a request for issue of PD Section, stationary to be used for the day CC Issue the stationary and enter the details in the system to update the stationary register Physical verification Generate a statement of the closing balance of the stationary in hand Physically verify the stock of the stationary Prepare a reconciliation statement of the discrepancies observed, if any Forward the report to the competent authority for review Review the report necessary action and take
Immediately/ Same day As and when Same day Unused stationary at the end of the day to be returned for the safe custody
PD Section, CC
Quarter end Quarterly Within a fortnight of completion of verification
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Document - Records Document Title Application for deposits Public Deposit/ Interest Ledger Statement of deposits received and realised PD Certificate Brokerage Report (Summary) Brokerage Report (Broker-wise) Statement of Interest payable (Schemewise summary) Statement of Interest payable (Depositor wise) Statement of TDS payable (Depositor wise) Interest/ Refund warrant Statement of Refund payable Statement of PDs matured/ due for maturity Statement of premature withdrawal of PDs Statement of brokerage recovery due to premature withdrawal of PDs Stationary Register Document Type I R O O R R MIR MIR O O MIR MIR MIR R PD/03 PD/04 PD/MIR/ 01 PD/MIR/ 02 PD/05 PD/06 PD/MIR/ 03 PD/MIR/ 4 PD/MIR/ 05 PD/07 Format Ref PD/01 PD/02 Weekly Weekly Monthly Monthly Annually/ Monthly/ quarterly Annually/ Monthly/ quarterly Annually/ Monthly/ quarterly Monthly/ Quarterly Monthly Weekly Weekly Frequency As and when Distribution Collection Centres PD Section, CC Collection Centre PD Section, CC PD Section, CC Depositor PD Section, CC PD Section, CC PD Section, CC PD Section, CC PD Section, CC PD Section, CC Depositor PD Section, CC PD Section, CC PD Section, CC
PD/08 A&B
As and when
PD Section, CC
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Document Title Reconciliation statement of stationary in hand Statement of Closing balance of stationary Physical Verification report Pay-in-slip Bank Statement BRV BPV LOA
Document Type R O R O R O O I
Format Ref PD/09 PD/10 PD/11
Frequency
Distribution -
Quarterly Quarterly As and when As and when As and when As and when
PD Section, CC PD Section, CC Collection Centres Collection Centre PD Section, CC Cash and Bank Section Cash and Bank Section PD Section, CC Cash and Bank Section
Accounting entries On receipt of PD Bank A/c Public Deposit A/c On payment of Interest Interest on PD Bank A/c On repayment of PD Public Deposit A/c Bank A/c On payment of Brokerage Brokerage Expenses Bank A/c Dr Cr Dr Cr Dr Cr Dr Cr
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On transfer of interest to Project / Station Inter unit/Cash Credit a/c Interest a/c At projects/Stations Interest A/c Inter unit/Cash Credit A/c Dr Cr Dr Cr
48
Process : Accounting for Bonds Process Brief
Process No : 06
This process describes the procedure to be followed in respect of issue of bonds. Bonds Issue to the public In case of public issue, the applications for the bonds are submitted to the company/ designated banks. After the last date for receipt of application forms the various bankers are required to (based on the Standing Instruction issued) transfer the money to the designated bank account at CC (Controlling Branch). Private placement of bonds The bonds may also be privately placed. The procedure for issue of allotment letters, bond certificates, interest payments, redemption of the bonds would be the same as in the case of bonds issued to the public. (In this case as the number of investors is not large, press advertisements for announcing the exchange of allotment letters with the bond certificates, announcing the dates interest payments, etc. may not be required). The bond issue must be in compliance with the Companies Act, 1956, the guidelines issued by the Securities and Exchange Control Board of India (SEBI), guidelines issued for public sector enterprises and the provisions of the Articles of Association of the Company. For issue of bonds, ensure the following: Bonds have been issued only in pursuance of the approval from the Board of Directors The underwriting commission/ brokerage has been paid to the brokers at the rates as per the LOAs entered with the brokers (considering the provisions of the Companies Act, 1956) The fees to the Lead Manager (s)/ Arranger(s)has been approved by the Board and are paid as per the agreement entered into with them
Departments/ sections involved in the process Bond Section, CC Cash and Bank Section, CC Company Secretariat
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Process : Issue of bonds S. Activity No 1 Receive the applications for issue of bonds Check that the : application form has been completed in full documents as required for submission have been enclosed the amount deposited has been realised 2 Receive a statement from the bank (Controlling branch) regarding the total application money received and account for the same as application money received 3 Enter the application details in the system to create the allotment register. Allotment of bonds 4 Receive the allotment register from the Registrar providing the details of the allottees and obtain the approval of the BOD in respect of the same Intimate the designated bank (Controlling Branch) to transfer the amount in respect of the unsuccessful applicants to the refund warrant account and in respect of the successful applicants to NTPCs bank account
Person Frequency Responsible Designated As and when Banker/ Registrar/ Bond Section/ Arranger
Remarks In case of public issue it is the responsibility of the Designated Banker/ Registrar and in case of private placement this activity is carried out by the Bond Section/ Arranger
Bond Section
On receipt of the statement from the banker After receipt of the application As and when Allotment should be made as per the guidelines prescribed in this respect by SEBI
Registrar/ Bond Section Bond Section
S. No
Activity Generate and following: despatch the
Person Responsible Bond Section/ Registrar
Frequency
Remarks
Allotment letter along with the cheque for interest for the period commencing from the date of realisation of the investors cheque to the date of allotment Refund cheque/ order to the unsuccessful investors (for non-allotment) Account for the funds received and the money refunded generation of BRV/BPV as per the Cash and Bank system 5 Bond Section
Payment of underwriting commission/brokerage Generate a statement of the Bond Section/ As and when Underwriting commission is underwriting commission Registrar to be paid only in respect of payable to the brokers the bonds allotted containing the detailed computations Generate a BPV for the under Bond Section Monthly writing commission and forward to the competent authorities for approval - follow the procedure as outlined in the manual on Cash and Bank for generation and approval of BPV Receive the cheques from the Bond Section Same day Cash and Bank Section and despatch the same to the brokers along with the detailed computation statement Exchange the allotment letters Bond Section/ As and when with the bond certificates after Registrar creation and registration of security
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S. No 9
Activity Generate a JV for creation of the Debenture Redemption Reserve
Person Responsible Bond Section
Frequency Annually
Remarks This entry would be required till the maturity of the series
Payment of interest The interest payments should be made as per the terms of the bonds issue. In case of cumulative bonds the interest amount is to be paid on maturity of the bonds along with the principal amount. In respect of interest payments, the Bond Section should ensure the following: Interest warrants have been issued as per the terms of the issue TDS at the applicable rates has been deducted and deposited with the authorities within the stipulated period as prescribed The bonds master has been updated for all transfer/ transmission/ requests for change of name/ address, etc received till that period It has been ensured that the funds equivalent to the interest warrants issued have been deposited in the designated bank account before the due dates for payment Interest is paid through interest accrued account only
Process : Payment of Interest S. No 1 Activity Enter the interest rate (as per the terms of the bond issue) in the system to calculate the interest payable Enter the TDS rates as prescribed in the system Update the interest master for all requests (approved) for transfer/ transmissions, etc of bonds Generate a statement of the total interest payable and the TDS component providing the detailed computations In respect of cumulative bonds, generate a journal voucher for the interest accrued but not due
Person Frequency Remarks Responsible Bond After the bond This should be done Section/ issue before the due date Registrar and for interest payment Transfer Agent Bond Section/ Registrar Bond Section Before the interest payment date By the next day
2 3
This should be carried out at least a week in advance
S. No
Activity Generate a request for transfer of funds and forward it to the Treasury Section
Person Responsible
Frequency 2 weeks prior to the due date of interest payment 4-5 days prior to the due date for interest payment
Remarks
Generate a BPV for the interest payable to transfer the funds to the designated bank account and a JV for the TDS to be deducted thereon forward the BPV/JV to the competent authority for approvals along with the statement of the interest payable Follow the procedure as outlined in the manual on Cash and Bank section for generation and approval of BPV 4 Generate the interest warrants and despatch to the bond holders Bond Section/ Registrar
Before the due date for payment of interest
TDS Deposit the authorities Issue TDS depositors
TDS
with
the
Bond Section
Within the time frame stipulated
certificates
to
the Bond Section On payment of interest/ Annually
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Transfer/ transmission, etc. of Bonds In case a request for transfer/ transmission, etc. of bonds has been received, then after verifying the request and ensuring that all the documents as required have been received, forward the request to the competent authority to obtain approvals of the same. Forward the duly approved transfer request to the Registrar/ agent (as applicable) to effect the necessary changes in the bond master and ensure that the transfer has been correctly effected in the system. Redemption of bonds The bonds should be redeemed as per the terms and conditions of the bond issue. In case of cumulative bonds, the total interest accrued is payable on redemption. In case of non-cumulative bonds, the interest till the date of redemption since the last date of interest payment is to be paid along with the principal amount. The refund warrants should be accordingly generated. In respect of redemption of bonds, the following should be ensured by the Bonds Section Refund warrants have been issued only in respect of those bond certificates which have been duly discharged A separate bank account has been opened for redemption of the bonds for each series The amount payable against the bonds processed for redemption has been transferred to the designated bank account before the due date for redemption of the bonds
In case of bonds that are not redeemed within the period specified in this respect (currently 7 years) the same should be deposited with the GOI. Process : Redemption of bonds S. Activity No 1 Generate JVs in respect of the following: to transfer the amount from the Bond Account to Current liabilities to transfer the Debenture Redemption Reserve to the General Reserve 2 Receive the duly discharged bond certificates from the holders 3 Review the certificates received and after ensuring that the certificates have matured carry out the necessary
Frequency On maturity of the Bond Series
Remarks
Bond Section Bond Section/ Registrar
54
S. No
Activity
Person Responsible
Frequency
Remarks
verification procedure and update the master to process the refund warrants for redemption 4 Generate a statement of the bonds processed for redemption Generate the refund warrants for the certificates approved for redemption Despatch the refund warrants to the bond holders Generate a BPV (in favour of the designated bank account) for the amount on account of the duly discharged bond certificates for redemption and forward the BPV along with the necessary supporting documents to the competent authority for approvals
Bond Section/ Registrar
As and when
Bond Section
As and when on receipt of the duly discharged bond certificates
Follow the procedure as outlined in the manual on Cash and Bank Section 6 In respect of TDS- follow the procedure as provided under the process payment of Interest Bank Reconciliation Statement (BRS)
Bond Section
As and when
Separate bank accounts should be maintained for each bond series for receipt of the applications, interest payments and redemption of the bonds. The BRS should be prepared at periodic intervals in respect of all the bank accounts maintained (follow the procedure as provided in the manual on Book section). The first reconciliation should be carried out within a period of 2-3 months of expiry of the cheques receipt. Control over pre-printed and pre-signed stationary (stationary) The stationary for the allotment letters, bond certificates, interest warrants and refund warrants should be maintained in a central store under security and periodically (as and when required) the stationary should be withdrawn from the godown and maintained in the office premises or handed over to agents (if any) involved for processing of the allotment letters, bond certificates, interest/ refund warrants. Records for the stationary at all locations should be maintained.
In case of the bonds that have been redeemed, once the redemption is complete the unutilised bond certificates for that series should be destroyed after obtaining the necessary approvals. The bank account maintained for payment of interest/ redemption of the bonds should be reviewed and after a reasonable period, the stationary for the interest warrant should be destroyed. The Bonds Section should ensure the following: The stationary has been kept under safe custody. The stock of the stationary (at all the locations) has been periodically verified and reconciled with the records maintained An acknowledgement of the stationary handed over to any agent is obtained A periodic reconciliation of the stationary handed over to the agent has been carried out The stock of stationary is periodically reviewed and destroyed after a reasonable time (from the date of maturity/ redemption)
Process : Control over pre-printed and pre-signed stationary (stationary) S. No 1 Activity Receipt of stationary store Prepare an LOA/request to the supplier /bank for the computerised/ pre-signed stationary for allotment letters and bond certificates (based on the total applications received and the IWs to be issued) and forward to the respective supplier/ bank after obtaining due approvals Receive the stationary from the supplier/bank Ensure that the stationary received are as per the order placed and in serial order Enter the details of the stationary received in the system to update the stationary received register (maintained separately for each series of bonds issued and interest) Transfer the stationary received to the store
Remarks
Bond Section
As and when
S. No 3
Activity
Person Responsible
Remarks
Issue of stationary from the store Receive a request for issue of stationary Bond Section from the store along with a reconciliation statement of the opening balance of stationary in the office premises, stationary utilised during the period and the balance in hand (as applicable) Review the request and ensure that it is reasonable and authorise the issue of the stationary from the store Receive the stationary from the store. Bond Section Ensure that it is in serial order and enter the details in the system to update the stationary register If the stationary is issued to the agent obtain an acknowledgment of the same from the agent and maintain the acknowledgement in a file Issue of stationary from the office premises Receive a request for issue of stationary Bond Section along with the necessary supporting documents Issue the stationary and enter the details in the system to update the stationary register
As and when
As and when
Unused stationary at the end of the day to be returned in the safe custody of the Manager
Reconciliation of stock with agents Obtain a reconciliation statement (for Bond Section At the end of each category) of the stock of stationary each assignment with the agent showing the opening balance of the stock in hand, the stock received/ issued during the period and the closing balance of stock in hand duly approved by the competent authority Check the reconciliation statement and Bond Section As and when tally with the records maintained and
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S. No
Activity forward the same to the competent authority for review and approvals
Person Responsible
Frequency
Remarks
File a copy of the reconciliation statement duly approved Physical verification Generate a statement of the closing Bond Section balance of the stationary in hand Physically verify the stock of the stationary and prepare a reconciliation statement of the discrepancies observed, if any. Forward the report to the competent authority for review Review the report and take the necessary action Destruction of stationary Generate a statement of the balance of Bond Section the stationary (both at the godown and office premises) that is to be destroyed Obtain the necessary approvals for destruction of the stationary Generate a report of the stationary destroyed and after obtaining signatures of the officials present for the verification, file the same Enter the details of the stationary destroyed in the system to update the stationary register.
Quarterly
quarterly
An officer should be present at the time of destruction. Moreover, an intimation of the action taken should also be informed to Corporate Vigilance Deptt
58
Document - Records Document Title Application for issue of bonds Bond/ Interest Ledger Statement of Interest payable (series-wise) Statement of Interest payable (bond holder wise) Interest/ Refund warrants Statement of amount payable on redemption of bonds Allottment letter/ Bond Certificate Statement of underwriting commission payable Summary statement of Underwriting Commission payable Underwriting commission report (broker-wise) Stationary Register Statement of Closing balance of stationary Physical Verification report Statement of stationary to be destroyed Report on stationary Destroyed BPV
Document Type I R MIR
Format Ref
Distribution Bond Section, CC Bond Section
BD/01 BD/MIR/01
MIR
BD/MIR/02
R MIR O R R MIR R O R R
BD/02 BD/MIR/03
Semiannually/ Annually/ On maturity Semiannually/ Annually/ On maturity Semiannually/ As and when As and when
Bond Section
Bond Section Bond Holder Bond Section, CC Bond Section Depositor Bond Section Bond Section Bond Section Bond Section Bond Section Bond Section Bond Section
BD/03 BD/MIR/04 BD04 BD/05 BD/06 BD/07
As and when As and when As and when As and when quarterly Annually Quarterly
R O
BD/08
Quarterly As and when
Bond Section Bond Section

59
Document Title Bank Statement BRV LOA Accounting entries
Document Type I O I
Format Ref
Frequency
Distribution Cash and Bank Section Bond Section, CC Cash and Bank Section Bond Section
1. On receipt of application money Bank A/c Application Money A/c Dr Cr
2. On refund of application money to unsuccessful applicants Application Money Bank A/c 3. On allotment of bonds Application Money Bonds A/c Dr Cr Dr Cr
4. On payment of brokerage/ underwriting commission Brokerage/ underwriting commission Bank A/c 5. On accrual of interest Interest on bond A/c Interest accrued but not due on Bonds A/c Dr Cr Dr Cr
60
6. On payment of interest Interest accrued but not due on Bonds A/c Bank A/c Interest on bond A/c Bank A/c 7. On redemption of bonds Bonds A/c Current liabilities A/c Current Liabilities A/c Bank A/c 8. On transfer of interest to Project / Station Inter unit/Cash Credit a/c Interest a/c 9. At projects/Stations Interest A/c Inter unit/Cash Credit A/c Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
61
Loan Accounting - Formats Document Title Loan/ Interest Ledger Report of expenditure incurred Consolidated statement of expenditure incurred (claim form submitted to lending agency) Loans from GOI and statement of projects financed there under
Details of financing under loans (from GOI/ International Funding Agencies)
Format Ref LA/01 LA/02 LA/03 LA/04 LA/04A LA/MIR/01 LA/MIR/02 LA/MIR/03 LA/MIR/04 LA/MIR/05 LA/MIR/06 LA/MIR/07
Statement of Interest payable Schedule of loan Repayments Statement of loan utilisation Status of Claims lodged and disbursements received Report on delays in interest payment/loan repayments Reconciliation of claims filed with the books of account Statement of utilization of Cash Credit Limits
62
LA/01 LOAN/ INTEREST LEDGER FOR THE PERIOD -----------Account Head :

No Voucher Date PO/WO No Employee/ Party Code Bank Code Name of Party Particulars Amount (Rs) Dr Cr. Remarks
Opening Balance
Balance
Note:
Total
Any other details as considered necessary, say, project reference, etc should be recorded in the remarks column
LA/02 STATEMENT OF EXPENDITURE INCURRED

FOR THE PERIOD --------------Project ------------------Lending agency -------------Loan No ----------------------Package/ Item Voucher No & Date
Type of Payment
Contract or/ Supplier
LOA No
Invoice No & Date
Amount (Rs)
TOTAL Expenditure reported till the previous report (for the period ------) : Expenditure as per this report : Cummulative Expenditure Reported : Cut off details: Vouchers included from (specify for each category of voucher BPV/JV/IUA) Last No Date Prepared by --------------------Prepared by : F&A Project Distribution : IF/ Budget Section, CC Approved by -------------------------
LA/03
CONSOLIDATED STATEMENT OF EXPENDITURE INCURRED (CLAIM FORM)
FOR THE PERIOD --------------Lending Agency -------------------------Loan No ----------------------Sanction Amount ----------------Loan Disbursed till date (FCY) ----------------Package / Supplier/ Project Item contractor
LOA No
Invoice No
Amount (Rs)
TOTAL Claim Details

Amount (Rs) Exchange rate Amount (Lender currency) Prepared by : IF Section, CC Distribution : Lending agency
Cummulative Claim Details (Lender Currency)

Claimed till previous report Claim in this report Cummulative amount claimed Approved by -------------------------
Treasury Section, CC
GOI
Budget Section,CC
LA/04 STATEMENT OF LOANS FROM GOI/ INTERNATIONAL FUNDING AGENCIES AND THE PROJECTS FUNDED THEREUNDER
LOANS Loan 1 Loan 2 Loan 3 Loan 4
Lending/funding agency
Loan Number Date of Sanction Period of Validity Date of Expiry Amount of Loan Sanctioned - Lenders currency - Local currency Projects financed under the loan (the total value in respect of each project to be specified) Prepared by : Budget Section/ IF Section Distribution : Concerned Projects Treasury Section, CC Note: The details of the financing under the different categories as per the loan agreement to be prepared as per LA/06A
LA/04A
DETAILS OF FINANCING UNDER LOANS (FROM GOI/ INTERNATIONAL FUNDING AGENCIES) Project. DETAILS OF LOANS
Loan Number
Date of Sanction Period of Validity Date of Expiry Amount of Loan Allocated - Lenders currency - Local currency Category/ Component of Loan - Equipment - Civil works - Consultancy - Spares - Others Total Prepared by -------------------------------------Prepared by : Budget Section/ IF Section Distribution : Concerned Projects Note : The details of the packages/ items under each of the category should be specified ,as applicable Approved by ----------------------
LA/05 Cash Credit Utilisation Register For the period ----------------Bank : Branch: Cash Credit Limit (Sanctioned/ Allocated) : Date Date Amount (Rs)
Utilization Level
Maximum Closing
% Utilization
Remarks
Note: In case of stations the limits as allocated by CC should be recorded in the register. At CC the overall limits sanctioned by the bank should be recorded in the register. In case of limits increased / decreased the same should be recorded in the register along with the dates from which the revised limits are effective A separate register is to be maintained in respect of each cash credit account
LA/MIR/01 STATEMENT OF INTEREST PAYABLE

Date of Interest payment Lending Agency Loan No FOR THE PERIOD --------------------Loan Interest No of days for Balance rate (%) interest Outstanding payment (Lender Currency) Interest payable FCY Ex.rate Amount (Rs)
TOTAL
Prepared by ------------------Prepared By : Budget / IF Section, CC Distribution : Treasury Section, CC Approved by ---------------------
Note
Date of interest payment would be as per the loan agreement Loan balance outstanding would be after considering the repayments to be effected during the period The no of days for interest payment to be calculated from the date of the loan/ last payment of interest till the due date for interest payment The exchange rate prevailing on the date of preparation of the statement would be adopted In case of loans in local currency, the columns in respect of FCY and exchange rate would not be applicable The statement to be prepared at the beginning of the year and forwarded to the Treasury Section for arrangement of funds on the due dates
LA/ MIR/02 SCHEDULE OF LOAN REPAYMENTS FOR THE PERIOD -----------------------------------------------------Lending Agency Loan No Loan Balance Outstanding (Lender Currency) Due date for repayments
Amount payable
FCY Ex.rate Amount (Rs)
TOTAL Prepared by ------------------------------------Prepared By : Budget / IF Section, CC Distribution : Treasury Section, CC Approved by --------------------------------
Note
Date of repayment would be as per the loan agreement The exchange rate prevailing on the date of preparation of the statement would be adopted In case of loans in local currency the columns for FCY and exchange rate would not be applicable The statement to be prepared at the beginning of the year and forwarded to the Treasury Section for arrangement of funds on the due dates
LA/ MIR /03 STATEMENT OF LOAN UTILISATION As on -------------Loan Total PROJECTS No Sanctioned
Amount (lender currency)
Amount sanctioned for disbursement till date
Utilisation during the period

FCY INR
Cummulative utilisation
Remarks (reasons for under utilisation as compared to disbursements sanctioned to be specified)
FCY
INR
Prepared by ---------------------Prepared by :IF Section Distribution : Concerned Projects
Approved by ----------------
LA/ MIR/04
STATUS OF CLAIMS LODGED AND DISBURSEMENTS RECEIVED
As on ---------------------Lending agency Loan No Total Sanctioned Amount Claims Lodged Disbursements Recd Remarks
Prepared by ----------------------------Prepared By : Budget/ IF Section Distribution : Treasury Section
Approved by -------------------------------
Note: The reasons for disbursements not received / disbursements received less than the claims should be provided in the column for Remarks
LA/ MIR/05 REPORT ON DELAYS IN INTEREST PAYMENTS/ LOAN REPAYMENTS For the period ----------------------LENDING AGENCY LOAN NO PARTICULARS AS PER THE LOAN AGREEMENT Amount Due Date (Rs) ACTUAL RECEIPT/ PAYMENT Date Amount (Rs) REMARKS
Lending Agency A
Loan 1
REPAYMENT OF LOAN INTEREST PAYMENT
Loan 2
Lending Agency - B
Loan 1
Prepared by ------------------------------------------Prepared by : IF/Budget Section

Note: The reasons for the delays in payments beyond the due date should be recorded in the Remarks column The statement should be prepared on quarterly basis and should be forwarded for review to the competent authority In case of loans in foreign currency the details should include the amount in lender currency and the exchange rate details also
Approved by -----
LA/ MIR /06 RECONCILIATION STATEMENT OF CLAIMS FILED WITH THE BOOKS OF ACCOUNT Lending Agency ---------------------
Loan No ------------------------------Package/ Item -----------------------Account Code -------------------------
Particulars
Total expenditure as per the books of account (details provided in LA/10A) Add/Less: Items not included in the claim report (provide the details and the reasons for non-inclusion say delay in receiving IUA, voucher entered in the system after the due date for submission of the claim form, etc) Amount as per the claims filed with the lending agency (details provided in LA/MIR/06A) Prepared by ------------------------------Approved by ------------------------------Prepared by : F&A Project Distribution : Budget/ IF Section
Amount (Rs)
Notes: The statement to prepared quarterly for each loan allocated to the project and for each package/item financed by the loan LA/MIR/06A Reconciliation Statement of claims filed with the books of account Amount as per the books of Account (Account code --------) For the month of Amount (Rs)
Total Expenditure included in the claim report Claim report for the period
Total Manual on Loan Accounting
MIR/FM/07 STATEMENT OF OVERALL CASH CREDIT LIMITS

For the period -----------------
Bank
Branch
Cash Credit Limit
Utilisation level Maximum Closing
% Utilisation
Remarks
Total Prepared By --------------Approved By ----------------
FORMATS BONDS Document Title Bond/ Interest Ledger Interest/ Refund warrant Statement of Underwriting Commission payable Stationary Register Reconciliation Statement of stationary in hand Statement of Closing balance of stationary Physical Verification report Report on stationary to be destroyed Report on stationary destroyed Statement of Interest payable (series-wise) Statement of Interest payable (bond holder-wise) Statement of amount payable on redemption of bonds Underwriting commission report (broker wise) Format Ref BD/01 BD/02 BD/03 BD//04 BD/05 BD/06 BD/07 BD/08 BD/09 BD/MIR/01 BD/MIR/02 BD/MIR/03 BD/MIR/04
BD/01 BOND / INTEREST LEDGER FOR THE PERIOD -----------No Voucher Date Particulars Dr Opening Balance Amount (Rs) Cr
Closing Balance
BD/02 INTEREST/REFUND WARRANT Account No FDR No Warrant No Not payable before (date) Valid for --- months Pay (Name of investor)-----------------------------------------Rupees (in words) ---------------------------------------FDR No Authorised Signatory ----------------------Note: The warrant should be crossed Account Payee The account No represents the type of payment (i.e. refund, monthly interest payment, quarterly interest payment, etc) Warrant No Amount (Rs)
BD/03
STATEMENT OF UNDERWRITING COMMISSION PAYABLE FOR THE MONTH ENDED -----------------------------------------Bond Series -----------Total No of Bonds --------Par Value ------------Issue Value ------------
Closing date ----------Broker Name Broker Code No of Bonds Amount (Rs) Commission (%) Commission Amount Remarks
TOTAL Prepared by ---------------------------Prepared by : Bond Section, CC Note : The detailed computations to be prepared as per Form No BD/07 Approved by --------------------
BD/04 STATIONARY REGISTER FOR THE PERIOD ----------------------Stationary Type : Bond Certificate/ Interest warrant/ Refund Warrant
Location : Store/ Office premises
Date
Particulars Lot No
Receipts
From To
Issued From To
Balance From To
Signatures Issuing Receiving Official Official
Remarks
Note : The signatures of the official issuing and receiving the stationary should be recorded The register should be maintained for all pre-printed/ pre-signed stationary and at all locations The particulars column should record the details of the receipt (received from printer/bank/ unused stationary at the end of the day) and issue of stationary
BD/05 RECONCILIATION STATEMENT OF STATIONARY IN HAND AS AT ------------------------Stationary Type Nos
From
Opening balance of stationary in hand Stationary Received during the period Stationary utilised/ cancelled during the period Closing balance of stationary in hand Signature
To
Total
(official requesting the issue)

Note: The reconciliation statement to be prepared based on the stationary register maintained
BD/06 STATEMENT OF CLOSING BALANCE OF STATIONARY AS AT

Stationary Type
Lot No
Closing Balance (Nos)

From To Total
Authorised Signatory Note: The statement to be prepared lot-wise based on the stationary register maintained
BD/07 PHYSICAL VERIFICATION REPORT AS ON --------------------Stationary Lot No

Type Balance as per Physical verification Balance as per Stationary Register
Discrepancy
Remarks
Signatures ----------------------Note: The signatures of the persons carrying out the verification and reviewing the report should be recorded
BD/08 REPORT ON STATIONARY TO BE DESTROYED

Stationary Type Series AS ON -----------------------Nos (From --- to -----) Remarks
Authorised by -------------------------------------Prepared by : Bond Section, CC Note : The reasons for destruction of the stationary (say series redeemed, stationary mutilated, etc) to be stated in the Remarks column
BD/09 REPORT ON STATIONARY DESTROYED

Stationary Type Series ON (specify date of destruction)-----------------------Nos (From --- to -----) Remarks
Authorised by -------------------------------------Officials present during stock destruction : (Name & Signature) Prepared by : Bond Section, CC Note : In case any stationary that is required to be destroyed has not been destroyed then the reasons for the same should be recorded in the remarks column
BD/MIR/01 STATEMENT OF INTEREST PAYABLE (series-wise) FOR THE PERIOD ----------------------Bond Series -Rate of Interest TDS Rate Total amount of Bonds Gross Interest Payable (Rs) (a) TDS (Rs) (b) Net Amount Payable (Rs) (a)-(b) Prepared by ----------------------------Approved by ------------------------Bond Series -Bond Series -Bond Series -Bond Series -Total
Prepared by : Bond Section, CC Distribution : Treasury Section Note: This statement to be prepared periodically (as per the due dates for interest payment, to pass the accounting entry for interest on bonds This statement prepared for the next year should be submitted to the Treasury Section at the beginning of the year for arrangement of funds The statement to be supported by a bond holder-wise details (as provided in the format BD/02A)
BD/MIR/02 STATEMENT OF INTEREST PAYABLE (BOND HOLDER-WISE) FOR THE PERIOD ----------------------Bond Series ----
Rate of Interest -------TDS Rate --------------Regd Folio No No
Name
No of Gross Interest Tax Deducted (Rs) (Rs) bonds held
Net Amount Payable (Rs)
TOTAL Prepared by : Bond Section, CC Note: This statement to be used for generation of Interest Warrants for individual bond holder
BD/MIR/03
STATEMENT OF AMOUNT PAYABLE ON REDEMPTION OF BONDS FOR THE PERIOD ----------------Bond Series -------------Date of Maturity ---------Total No of Bonds Issued -----------No of Bonds Regd Folio Name held No No (1) (2) (3) (4)
Amount (Rs) (5)
Interest payable on maturity (gross) (6)
TDS Amount (7)
Net Amount payable (5) +(6) (7) (8)
TOTAL Prepared by -----------------------------Prepared by : Bond Section, CC Distribution : Treasury Section, CC
Approved by ---------------------------
Note: In case of cummulative bonds, the interest for the bond period would be repayable on maturity In case of non-cummulative bonds the interest is to be paid after the last interest paid till the date of maturity This statement should be prepared at the beginning of the year for the redemption due during the period and forward the same to the Treasury Section for arrangement of the funds
BD/MIR/04 UNDERWRITING COMMISSION REPORT (BROKER WISE)
FOR THE MONTH ENDED -----------------------------------------Broker Name : Broker Code : Underwriting Commission (%) : Application Name No of bonds No
Bond Certificate No
Amount (Rs)
Commission Amount
Remarks
Total Prepared by --------------------------------Approved by ---------------------
Note: This statement to be forwarded to the respective brokers along with the cheque for payment
FORMATS PUBLIC DEPOSIT SCHEMES Documents Public Deposit/ Interest Ledger Statement of deposits received and realised Brokerage Report (Summary) Brokerage Report (Broker-wise) Statement of TDS payable (Depositor-wise) Interest / Refund warrant Statement of brokerage recovery due to premature withdrawal of PDs Stationary Register Reconciliation statement of stationary in hand Statement of closing balance of stationary Physical Verification report Statement of Interest payable (Scheme-wise Summary) Statement of Interest payable (Depositor-wise) Statement of Refund payable Statement of PDs matured/ due for maturity Statement of premature withdrawal of PDs Format Ref. PD/01 PD/02 PD/03 PD/04 PD/05 PD/06 PD/07 PD/08 A&B PD/09 PD/10 PD/11 PD/MIR/01 PD/MIR/02 PD/MIR/03 PD/MIR/04 PD/MIR/05
PD/01 PUBLIC DEPOSIT/ INTEREST LEDGER FOR THE PERIOD -----------No Voucher Date Particulars Dr Opening Balance Amount (Rs) Cr
Closing Balance
PD/02 STATEMENT OF PDs RECEIVED AND REALISED

FOR THE PERIOD ----------------------------
COLLECTION CENTRE ------------------------------Scheme S.No Date of Application Name of the applied receipt of No Applicant
application (First Name ) for
Amount (Rs)
DD/ cheque
No Date Drawn on Date of realisation
Remarks
TOTAL Approved by --------------------------------Prepared By : F&A Collection Centres Distribution : PD Section, CC Encl: Application Forms as stated above (----- Nos) Bank statement for the period ------------------Note : The statement to include only the details of those applications for which the DDs/cheques have been realised
PD/03
BROKERAGE REPORT (SUMMARY) FOR THE MONTH ENDED ---------------------------Lots covered from ------ to ---------Renewals from ---------- to --------Broker Name Deposit Amount Brokerage Amount
Remarks
TOTAL Prepared by ------------------Approved by --------------------------
Note: The detailed broker wise computations should be prepared as per PD/04
PD/04 BROKERAGE REPORT (BROKER WISE)
FOR THE MONTH ENDED -----------------------------------------Broker Name : Broker Code : Lot No ; Application No Name of depositor
F.D.R. No
Realisation Date
Scheme Code
Deposit Amount (Rs)
(1)
(2)
(3)
(4)
(5)
(6)
Brokerage Amount Gross Recovery Net Amount Amount (Rs) for pre- payable (Rs) mature withdrawal (7) (8) (9) = (7)- (8)
Remarks
(10)
TOTAL Prepared by -------------------
Approved by --------------------------
Note : This statement to be forwarded to the respective brokers along with the cheque for payment
PD/05 STATEMENT OF TAX DEDUCTED (DEPOSITOR-WISE) FOR THE PERIOD ----------------------Scheme ---FDR No
Name
Date of warrant
Gross Interest (Rs)
Tax Deducted
(Rs)
TOTAL Prepared by : PD Section, CC Note: This statement to be used for transfer of TDS to GOI
PD/06 INTEREST/REFUND WARRANT Account No FDR No Warrant No Not payable before (date) Valid for --- months Pay (Name of investor)-----------------------------------------Rupees (in words) ---------------------------------------FDR No Authorised Signatory ----------------------Note: The warrant should be crossed Account Payee The account No represents the type of payment (i.e. refund, monthly interest payment, quarterly interest payment, etc) Warrant No Amount (Rs)
PD/07 STATEMENT OF BROKERAGE RECOVERY DUE TO PREMATURE WITHDRAWAL OF PDS For the period ------------------Lot No ----------------------S. FDR FDR Amount Maturity Date of Broker Investor
No No Date withdrawal Name Code
% Recovery
Brokerage Recoverable
Remarks
Total
Prepared By ---------------------------------Authorised By ------------------------------------------
PD/08 A STATIONARY REGISTER Stationary Type : PD Certificate/ Interest warrant/ Refund Warrant
Location : Office Premises
Dat e
Particulars Lot No
Stationary taken out

From To
Stationary used / Cancelled From To
Balance (unused stationary) From To
Signatures Issuing Official Receiving Official Officials opening and closing of chest
Remarks
Note : The signatures of the official issuing and receiving the stationary should be recorded The register should be maintained for all pre-printed/ pre-signed stationary and at all locations
PD/08 B STATIONARY REGISTER Stationary Type : PD Certificate/ Interest warrant/ Refund Warrant
Location : Store
Date Particulars Lot No
Receipts
From To
Stationary Issued / Cancelled From To
Balance (unused stationary) From To
Signatures Receiving Official Officials opening and closing of the Strong Room
Remarks
Note : The signatures of the official issuing and receiving the stationary should be recorded The register should be maintained for all pre-printed/ pre-signed stationary and at all locations The particulars column should record the details of the receipt (received from printer/bank/ unused stationary at the end of the day) and purpose for issue of stationary
PD/09 Reconciliation Statement of stationary
Sl. No (1)
Description (2)
Total Receipts (3)
Used/ cancelled (4)
Cumulative Cancelled (5)
Cumulative Used (6)
Balance
(7)
Note : The columns 4, 5, 6 and 7 should be equal to column 3
PD/10 STATEMENT OF CLOSING BALANCE OF STATIONARY AS AT

Stationary Type
Closing Balance (Nos)

From To Total
Authorised Signatory Note: The statement to be prepared lot-wise based on the stationary register maintained
PD/11 PHYSICAL VERIFICATION REPORT AS ON --------------------Stationary Lot No Balance as per Physical Balance as per
Type verification Stationary Register
Discrepancy
Remarks
Signatures ----------------------Note: The signatures of the persons carrying out the verification and reviewing the report should be recorded
PD/MIR/01 STATEMENT OF INTEREST PAYABLE FOR THE PERIOD ----------------------Scheme -Total Interest for the period (A) TDS (B) Net Amount Payable (A-B) Prepared by : PD Section, CC Distribution : Treasury Section, CC Note: This statement is a summary of the scheme-wise details as per PD/06A This statement would be prepared based on the PDs as on the date which could undergo changes on account of deposits received/ withdrawals Scheme -Scheme -Scheme -Scheme -Total
PD/MIR/02A STATEMENT OF INTEREST PAYABLE (DEPOSITOR-WISE) FOR THE PERIOD ----------------------Scheme ---FDR No
Name
Gross Interest (Rs)
Tax Deducted
(Rs)
mount Payable
(Rs)
TOTAL Prepared by : PD Section, CC Note: This statement to be used for generation of Interest Warrants
MIR/02B STATEMENT OF INTEREST PAYABLE (DEPOSITOR-WISE) FOR THE PERIOD ----------------------Scheme ---S. No FDR No
Investor Name
Interest Warrant No
Period From to ----mount (Rs)
TOTAL Prepared by : PD Section, CC Note: This statement to be used for transfer of funds to the Bank
PD/MIR/03 STATEMENT OF REFUND PAYMENT
FOR THE PERIOD FROM ----------TO ----------Sl. No FDR No
Refund Warrant
No Date
Total Amount Payable (Rs)
Scheme Total
Scheme Total
Scheme Total
Grand Total Prepared by: PD Section, CC
PD/MIR/04 STATEMENT OF PDs MATURED/ DUE FOR MATURITY
FOR THE PERIOD FROM ----------TO ----------Sl. No Month Deposits maturing for payment Amount Payable
TOTAL Prepared by : PD Section, CC Distribution : Treasury Section, CC Note: This statement would be based on the PDs existing at the time of preparation of the statement but could change due to premature withdrawals of PDs Date-wise and scheme-wise sub totals should also be provided The report to be furnished to the Treasury Section for arrangement of funds
PDMIR/05 STATEMENT OF PREMATURE WITHDRAWAL OF PDS For the period ------------------Lot No ----------------------S. FDR FDR Amount Maturity Date of Investor
No No Date
withdrawal
Interest Amount recoverable/ payable
Gross Amount payable
TDS
Net Amount Payable
Unencashed Interest warrants returned
Broker
Total
Prepared By ---------------------------------Authorised By ------------------------------------------

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NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON LOAN ACCOUNTING November 2002

A. F. FERGUSON & CO NEW DELHI

01 02 03 04 05 06 Appendix I Appendix II Appendix III

Manual on Loan Accounting

Manual on Loan Accounting

Manual on Loan Accounting

Manual on Loan Accounting

Manual on Loan Accounting

Within 2 days of intimation from GOI As and when

Manual on Loan Accounting

Person Responsible F&A Project

By the 7th of the following month Monthly

Manual on Loan Accounting

Manual on Loan Accounting

Manual on Loan Accounting

Beginning of the next month after period closing

Quarterly Budget Section, CC

Person Responsible Budget Section CC

Frequency 2 days prior to the due date for loan repayment

Manual on Loan Accounting

Manual on Loan Accounting

Document Title Statement of Interest payable Schedule of repayments loan

Document Type MIR

Format Ref LA/MIR/01

O MIR MIR MIR MIR

LA/04 LA/MIR/03 LA/MIR/04 LA/MIR/05 LA/MIR/06

As and when As and when As and when

Accounting Entries At CC On receipt of loan Bank A/c Loan A/c

At projects/Stations Interest A/c Inter unit/Cash Credit A/c Dr Cr

Manual on Loan Accounting

Process: Loans in local currency Process Brief:

Manual on Loan Accounting

Treasury section F&A Project

Same day As and when

Manual on Loan Accounting

Person Responsible F&A Project

By the 7th of the following month Budget Section - CC Monthly

Manual on Loan Accounting

Loan/interest ledger Report of expenditure incurred Schedule of Interest payable

LA/01 LA/02 LA/MIR/01

As per the time frame specified Annually/ Monthly

Document Type MIR MIR MIR

Format Ref LA/MIR/02 LA/MIR/05 LA/MIR/06

Frequency Annually/ Monthly

Distribution Budget Section, CC Treasury Section, CC Budget Section, CC F&A Project

As and when As and when

Manual on Loan Accounting

Process : Loans/Bonds in foreign currency Process Brief

Manual on Loan Accounting

Within 2 days of intimation from the lender

Manual on Loan Accounting

Cash and Bank Section F&A Project

Same Day As and when

2 days prior to the draw down date As and when

Manual on Loan Accounting

Manual on Loan Accounting

S. Activity No 13 Status of claims lodged reimbursements received

Person Responsible and IF Section, CC