A Project Report

On Financial Policies of HPPCL

Under the guidance of Mr.CHANDAR PRAKASH SHARMA Submitted by

DEEPESH CHAUHAN REG. NO. 520966401

IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE IN MASTERS OF BUSINESS ADMINISTRATION

JAN 2010 TO MAR 2012 DELHI BUSINESS SCHOOL NEW DELHI

Acknowledgement
Perseverance, inspiration and motivation have always played a key role in the success of any venture. In the present world of cut throat competition project is like a bridge between theoretical and practical working, willingly I have prepared this project. First of all, I would like to thank the supreme power, the almighty God who is obviously the one who has always directed me to work on the right path of my life. Only with Almightys grace this project could become a reality. I feel highly happy with the way my training report on HIMACHAL PRADESH POWER CORPORATION LTD. has been completed. Any accomplishment requires the efforts of many people and this work is not different. Firstly, I would like to extend my sincere thanks to Chander Prakash sir for his esteemed co-operation and support throughout the completion of this project. Finally, I would like to thank all HPPCL employees, respondents and other people who directly or indirectly helped me in completing my training project.

NAME OF STUDENT

Deepesh Chauhan

Preface
Management is considered an art as well as science. Management is considered as a science because it consists of various principles and art because managers apply management principles in the manner most suitable to them. Therefore, in order to develop an insight into the practical world for whatever has been learnt during the MBA course, management training is undertaken.

Being a commerce graduate the training at Himachal Pradesh Power Corporation Limited helped me to have a deep insight of the real world of management especially Finance. Herein my assignment with the Finance Department helped me gain a deep understanding of the working of the Finance Department of an organization. I sincerely hope that the effort I undertook in preparation of this training report will be of benefit to anyone interested to know more about this organization.

DECLARTION

I, DEEPESH CHAUHAN, hereby declare that all the information furnished in this PROJECT, is my original work containing authentic facts. This piece of work is only being submitted to DELHI BUSINESS SCHOOL in the partial fulfillment for the degree of Master of Business Administration.

DEEPESH CHAUHAN

TABLE OF CONTENTS
S. No. Contents Page No.

1. 2. 3. 4.

Company Profile Organizational Structure of HPPCL HPPCL Projects in Himachal Pradesh Functional Departments of HPPCL RESEARCH METHODOLOGY Bibliography

6 9 17 27

5. 6.

44 47

CHAPTER-1 COMPANY PROFILE

Of

HP POWER CORPORATION Incorporation:

Himachal Pradesh Power Corporation Limited (HPPCL), was incorporated in December 2006 under the Companies Act 1956, with the objective to plan, promote and organize the development of all aspects of hydroelectric power on behalf of Himachal Pradesh State Government (Gov.H.P) and Himachal Pradesh State Electricity Board (HPSEB) in Himachal Pradesh. The Gov of HP has a 60% and HPSEB a 40% shareholding in HPPCL. Special Purpose Vehicles namely Pabber Valley Power Corporation (PVPC) and Kinner Kailash Power Corporation (KKPC), earlier owned by HPSEB, have been merged with HPPCL with the objective of developing new hydro projects in their respective river basins.

The Company is a Company Limited by Shares and accordingly:

a) The number of members for the time being of the company is not to exceed eight excluding (i) persons who are for the time being in the employment of the Company, and (ii) Persons who having been formerly in the employment of the Company were the members of the Company while in that employment and have continued to be members after the employment ceased : but where two or more persons hold one or more share in the Company jointly, they shall for the purpose of this Article, be treated as a single member.

b) Any invitation to the public to subscribe for any shares in or debentures of the Company is hereby prohibited. c) The Government of Himachal Pradesh and H.P. State Electricity Board are entitled to and shall subscribe to the equity and loan capital of the Company in the ratio of 3:2 and this ratio shall be determined at all times in so far as the Power Projects are concerned. d) The right to transfer of shares shall be restricted as hereinafter provided.

Capital Structure of the Company:

Capital:
The Share Capital of the Corporation is Rs. 50 crores (Rupees fifty crores only) divided into 5,00,000 Equity Shares of Rs. 1,000/- each.

Organization:
HPPCL is a fast upcoming power generating utility with all the Technical and Organizational capabilities at par with other generating companies like

NTPC/SJVNL/NHPC. Efforts are afoot to further strengthen the respective departments with professionals of proven credentials and qualified technical manpower.

Allotment of Shares:
Subject to provisions of the Act and these Articles and to the right of the Government of the shares shall be under the control of Board of Directors who may allot or otherwise dispose of the same.
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Mission, Aim, and Targets:

Mission:
generation.

Development and prosperity in Himachal Pradesh through Power

Aim:

To come up as a major power generating company of India with good

managerial and technical capabilities.

Target:

To develop 3000 MW Power generating capacity by March 2017 and;

5000 MW by the year 2022.

Organizational Structure Of HPPCL

Like all Power Companies HPPCL is also regulated by the Indian Electricity Act, 1948 main guidelines of which are given below:

INDIAN ELECTRICITY RULES, 1956

General Safety Precautions:
1.

Construction, installation, protection, operation and main electric

supply lines and apparatus:

All electric supply lines and apparatus shall be sufficient in power and size and of sufficient -mechanical strength for the work they may be required to do, and, so far as is shall be constructed, installed, protected, worked and maintained in accordance with the standards of the Indian Standards Institution so as to prevent danger.

2. Service lines and apparatus on consumer's premises:

i. The supplier shall ensure that all electric supply lines, wires, fittings, and apparatus belonging to him or under his control, which are on a consumer's premises, are in a safe condition and in all respects fit for supplying energy he supplier shall take due precautions to avoid danger arising on premises from such supply lines, wires, fittings and apparatus. ii. Service lines placed by the supplier on the premises of a consumer which are underground or which are accessible shall be so insulated and protected by the supplier as to be secured under all ordinary conditions mechanical, chemical or other injury to the insulate.
10

iii. The consumer shall, as far as circumstances permit, take precautions for the safe custody of the equipment on his premises belonging to the supplier.

iv. The consumer shall also ensure that the installation under his control is maintained in a safe condition.

3. Cut-out

consumer's premises:

i. The supplier shall provide a suitable cut-out in each conductor of every serviceline other than an earthed or earthed neutral conductor or the earthed externalconductor of a concentric cable within consumer's premises, in an accessible position. Such cut-out shall be maintained within an adequately enclosed fireproof receptacle. ii. Where more than one consumer is supplied through a common service line, each such consumer shall be provided with an independent cut-out of junction to the common service.

iii. The owner of every electric supply line, other than the earthed or earthed neutral conductor of any system, or the earthed external conductor of a concentric cable, shall protect it by a suitable cut-out.

4. Identification

of earthed and earthed neutral conductors and

position of switches and cut-outs therein:

Where the conductors include an earthed conductor of a two-wires stem or an earthed neutral conductor of a multi-wire system or a conductor which is to be connected thereto, the following conditions shall be complied with: -- (1) An indication of a permanent nature shall be provided by the owner of the earthed or earthed neutral

11

conductor, or the conductor which is to connected thereto enable such conductor to be distinguished from any live conductor.

Caution Notices:
The owner of every medium, high and extra high voltage installation shall affix permanently in conspicuous position a caution notice in Hindi and the local language of the district, and of a type approved by the Inspector on

a) Every motor, generator, transformer and other electrical plant and equipment together with apparatus used for controlling or regulating the same. b) All supports of high, and extra-high voltage overhead lines c) c. Luminous tube sign requiring high voltage supply, X-ray and similar highfrequency

Installations: Provided that where it is not possible to affix such notices on any generator, motor, transformer or other apparatus, they shall be affixed as near as possible thereto: Provided further that where the generator, motor, transformer or other apparatus is within an enclosure, one notice affixed to the said enclosure shall be sufficient for the purpose of this rule.

Accident charge:
The owners of all circuits and apparatus shall so arrange them that there shall be no danger of any part thereof becoming accidentally charged to any voltage beyond the limits of voltage for which they are intended. Where A. C. and D. C. circuits are installed on the same support they shall be so arranged and protected that they shall not come into contact with each other when live.

12

Precautions to be adopted by consumers, owners, electrical contractors electrical workmen and suppliers:
I. No electrical installation work including additions, alterations, repairs and adjustments to existing installation, except such replacement of lamps, fans, fuses, switches, low voltage domestic appliances and fittings as in no way alters its capacity or character, shall be carried out upon the premises of or on behalf of any consumer or owner, for the purpose of supply to such consumer or owner, except by an electrical contractor licensed in this on behalf by the State Government under the direct supervision of a person holding a certificate of competency issued or recognized by the State Government: Provided that in case of works executed for or on behalf of the central government and in the case of installations in mines, oil fields and railways, the Central Government and in other cases the State Government may, by notification in the official Gazette, exempt, on such conditions as it may impose, any such work described therein either generally or in the case of any specified class of consumers or owners from so much of this sub-rule as requires such work to be carried out by an electrical contractor licensed by the State Government in this behalf.

II. No electrical installation work which has been carried out in, contravention of sub-rule (1) shall be connected with the works of suppliers.

III. The provisions of sub-rule (1) shall come into force in respect of a State or part thereof on such data as the State Government may, by notification in the official Gazette, appoint: Provided that the said provisions shall come into force in any field, mine or railway or in respect of any work carried out by, or on bet of, the Central Government only on such data as the Central Government may, by like notification, appoint.

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Hydro Policy of Himachal Pradesh Government:

Highlights of Investor Friendly New Hydro Policy of Himachal Pradesh:

Selection of Developer on MOU Route allowed for projects up to 100 MW

Selection of Developer on ICB route for Projects above 100 MW.

No Clearances necessary from CEA for projects selected on competitive bidding

route for projects costing upto Rs. 2500 crores.

Secondary energy rate to be at par with primary energy. Premium on peak

power proposed. Process of Transferring clearances to IPPs simplified.

100% Foreign Equity permitted on the automatic approval route provided it

does exceed Rs. 1500 Crores.

14

Limit of 40% financing from Indian Financial Institutions waived off.

Tariff determination by SERC/CERC.

Projects upto 25 MW to be transferred to MNES.

HPSEB to purchase power @ Rs. 2.50/kWh from projects upto 5 MW capacity

Banking & Wheeling Facilities permitted @ 2% including transmission losses.

Incentives for small HEP as per GOI Guidelines.

Moratorium of 5 years for payment of Electricity duty by companies which

Consume electricity produced by them.

Invest in Hydro

Investor Friendly New Hydro Policy.

Highly Remunerative.

Availability of Project Due to Large Potential.

15

Transmission Network for Power Evacuation under Planned by PGCIL.

Cheap & Reliable construction power.

Simplified Laws/Rules for transfer of Land.

Amicable industrial Climate.

Good communication Facility such as Telecom, Road network, Air Services etc.

16

HPPCL Projects in HP

GYSPA SURGANI SUNDLA

SAINJ

NAKTHAN

SHONGTONG KARCHAM

THANA PLAUN SAWRA KUDDU SUNDER NAGAR NAGAR RENUKAJI CORPORATE OFFICE

KASHANG

CHIRGON MAJHGON NN

Map of Himachal Pradesh

17

Hydel Projects for Implementation:

Initially, HPPCL has taken over staff and projects initiated by PVPC (Sawra Kuddu, 111 MW) and KKPC (Kashang three stages, 243MW). So far allotted project to HPPCL are as under:-

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Shongtong Karcham HEP Sainj HEP Chirgaon Majhgaon HEP Sawra Kuddu HEP Kashang HEP Renuka Thana Plaun Beri Nichali Nakthan Gyspa Khab Tidong11

402 MW 100 MV 46 MW 111 MW 243 MW 40 MW 141 MW 78 MW 520 MW 300 MW 636 MW 60 MW

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In-Hand Projects at a Glance:

HPPCL has already started work on the following hydel-projects:

1. SAWRA KUDDU HYDRO-ELECTRIC PROJECT (111 MW):

Sawra Kuddu HEP has been contemplated as a power generation development on the Pabbar River in Shimla District (HP). The project comprises of a piano key weir, an intake structure to draw 78 cumecs discharge through 3 No openings, surface gutter type desilting arrangement divided into 3 No portions, each 80 m long 19.5 m wide & 10.5 m deep for exclusion of silt particles down to 0.2 mm size, 11.145 km long, 5 m dia D-shaped Head Race Tunnel, 14 m dia 82 m high underground restricted orifice type surge shaft, 4 m dia steel lined pressured shaft, trifurcating in 2.30 m dia branch shafts, to feed 3 Nos. 37 MW capacity each vertical axis Francis turbines, housed in an 90 m x 14 m x 39 m size underground Power House cavity located on the left bank of the Pabbar river near Snail village.

19

2. INTEGRATED KASHANG HYDRO-ELECTRIC PROJECT (243 MW):

Integrated Kashang HEP envisages development of Kashang and Kerang Streams, tributaries of the river Sutlej comprising four distinct stages as under:-

Stage-I (65 MW): Comprising diversion of the Kashang stream, at El.2829 m, to an underground powerhouse located on the right bank of Satluj near Powari Village, developing a head of approximately 830 m.

Stage-II & III (130 MW): Comprising diversion of the Kerang stream, at El. 2872 m, into an underground water conductor system leading to upstream end of Stage-I water conductor system, augmenting the generating capacity of Stage-I powerhouse, using Kerang waters over the 820 m head available in Kashang Stage-I powerhouse.

Stage-IV (48 MW): This stage is more or less independent scheme harnessing the power potential of Kerang stream upstream of the diversion site of Stage-II. In this scheme, a head of approximately 300 m could be utilized to develop power in an underground powerhouse located on the right bank of Kerang stream.

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3. SHONGTONG-KARCHAM HYDRO-ELECTRIC PROJECT (402 MW):

Shongtong Karcham Hydroelectric project, a run-of-river scheme on the river Sutlej in Distt. Kinnaur of HP, envisages construction of 2415 m long diversion barrage, near village Powari, to divert 464 cumecs discharge to 4 no, sedimentation chambers, each 300 m long. Water from sedimentation chambers is further carried through water conductor system comprising 8020 m long 10.00 m dia circular HRT, terminating in 39.5 m dia surge shaft and 3 Nos, 5.1 m steel lined pressure shafts, to feed three number vertical axis Francis Turbines, housed in an underground powerhouse, located on the left bank of the river Satluj near village Ralli, to generate 402 MW of power.

4. SAINJ HYDRO-ELECTRIC PROJECT (100 MW):

Sainj HEP has been contemplated as a run of the river development on river Sainj, a tributary of River Beas in Kullu Distt. of HP. The project comprises of a diversion barrage on the river Sainj near Village Niharni, intake arrangement on right site of barrage for drawing 35.88 cumecs of water, an underground desilting arrangement with two chambers of 145 m x 15 m x 7 m size each to eject all silt particles down to 0.2 mm, a 6300 m long 3.76 m dia modified horse shoe shaped Head Race Tunnel, an underground restricted orifice type 9 m dia, 87 m high surge shaft and one 2.75 m dia 550 m long steel lined pressure shaft taking off from surge shaft and further bifurcating to feed two nos.Pelton vertical axis turbines, each generating 50 MW power located in an underground power house on right bank of river the Sainj near village Suind.

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5. RENUKA DAM PROJECT (40 MW):

Renuka dam project, conceived as a drinking water supply scheme for the National Capital Territory of Delhi, envisages construction of 148 m high rock fill dam on river Giri at Dadahu in Sirmaur district and a powerhouse at toe of dam. The project will ensure 45640 ha m of live water storage in its reservoir and a firm water supply to the tune of 23 cumecs to Delhi besides generating 40 MW power exclusively for use of Himachal Pradesh. The Dam will also result in generating additional power of 93.83 MU by existing 60 MW Giri HEP. Total cost of the project at December, 2006 price level is Rs. 2175.00 crore which shall be borne by Govt. of India/ Govt. of Delhi and other beneficiary states. The project is scheduled for completion by Nov., 2014. The main highlight of this project is that it has been declared as a National Heritage Project by Government of India.

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Diversification

HPPCL, apart from Hydro Power Development, intends to diversify its Power Development activities in other areas such as Thermal, renewable sources of energy mainly solar power etc. with a basic idea to have a long term Corporate Plan for planned implementation of Power Projects to meet the growing energy demand, ensuring environment and ecological balance for contributing towards the progress and prosperity of the State. For this HPPCL is to meet the challenges of dynamically transforming business and environment to build a sustainable relationship with the stakeholders for maximum benefits and economic growth by achieving performance excellence.

Himachal

Pradesh

Power

Corporation

also

provides

consultancy in:-

DPR preparation and overall planning of hydro electric projects. Detailed engineering and designs of hydro electric projects. Preparation of tender documents including specifications of various items of works of HEPs.

Construction, erection and commissioning of HEPs. Project management, contract management and administration of HEPs. Environment and R&R plans. Roads and highway tunneling et

23

HPPCL has a comprehensive Relief & Rehabilitation programme for affected families

RESETTLEMENT AND REHABILITATION SCHEME FOR PROJECT AFFECTED FAMILIES:

Whereas for the construction of various Hydro Electric Project besides the Government land, some private land is also to be acquired by the H.P. Power Corporation Limited. Due to acquisition of private land for the project, some families will be affected but only one family shall become land less.

And whereas to protect the interests of the project affected people and landless family (and any other family affected during construction stage of the project), adequate arrangements for the resettlement and rehabilitation shall be made in accordance with Rule 8A of the H.P. Nautor Land Rule, 1963, which provides for forming of a special scheme for Resettlement and Rehabilitation of persons who are displaced as a result of anything done for any public purpose.

Now, therefore, the H.P. Power Corporation Limited hereby proposes the following scheme for Resettlement and Rehabilitation of the persons affected on account of acquisition/ of their land and other immovable properties along with water rights under the Land Acquisition Act.1894 for the construction of various Hydro Electric Project. The proposed scheme is based on the R&R Policy notified by the Govt. of H.P. vide Notification No. Rev (PD) F (5)-1/1999 dated 27.4.2006.

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OBJECTIVES:
1. To compensate families whose land or other assets are acquired for the construction

of the project.

2. To create better living conditions and to improve by and large the quality of life of people residing in the project area.

3. To contribute to the overall development of the project affected areas.

4. To create good rapport with the local people for long-term relationship and mutual benefits.

BASIC ISSUES AND NEED FOR R&R ACTION PLAN:

Acquisition of land generally induces change in land use pattern and can disturb the economic base. The R&R Action Plan is therefore formulated with an objective to resettle the families rendered landless or affected families whose land/house/shop is acquired and to rehabilitate them in such a manner that they improve or at least regain their previous standard of living, earning capacity and production level. Besides, it is imperative that the transition gap is to be reduced to the minimum possible extent.

With proper resettlement and rehabilitation plan, an amicable relationship with PAFs can be maintained which is essential for efficient operation of the project. It is generally seen that the displacement during acquisition of land is involuntary and the PAFs have to face a new social setup. During such transition period, the rural economic environment is generally transformed into higher cost of living and reduction in traditional sources of income. In general, PAFs face difficulty to cope with the new environmental set up.

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Domestic changes in the land use patterns substantially alter the agro based rural economy and lifestyle of affected families.

RELIEF REHABILITATION STRATEGIES:

Each project affected family will be suitably compensated by the benefits such as monitory compensation for land, house and for both etc.

The local population will be provided suitable guidance in the sphere of better technology and better knowledge base for better living conditions and better livelihood.

Confidence building measures amongst the local population and project affected persons in particular to induce a sense of feeling of being cared and heard.

General Development of the project area such as roads, footpaths, footbridges and community development works etc.

Each PAF shall be issued an Identity Card. This card will be issued by Project Authorities, which will facilitate PAFs entry in project offices and also for the purpose of association in various activities of the project.

A Public information Centre (PIC) will be opened in the project area, which will contain necessary information/details regarding project components and information pertaining to R&R for the benefits of the PAFs and local people. The PIC will remain operative for a period of one year after completion of the project.
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FUNCTIONAL DEPARTMENTS OF HIMACHAL PRADESH POWER CORPORATION LTD.

27

HUMAN RESOURCES DEPARTMENT

Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns. Human Resource (HR) Department deals with the personal aspect of the employees. This department deals in recruitment, training and promotion of the employees. Human resource department describes the administrative personnel functions with performance, employees relations and resource planning. The more common usage within corporations and businesses refers to the individuals within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and other personnel issues. The objective of human resources is to maximize the return on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner.

Main Functions of HRM in an organization are:

Identifying and Developing Persons Retaining Suitable Persons Creating a Work Culture Educating Managerial Personnel Conducting Research Developing a Communication System

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HPPCL also has a Human Resource department. HR department is well established in HPPCL. This department is commonly known as personnel and administrative (P&A) section of the corporation. This section deals with the issues related to the work force of the corporation. HPPCL is newly formed corporation and the work for development of departments is in the process. The Human Resource department is also being established along with other departments of the corporation. Formulation of various HR policies is under process and will be formulated soon in due course. HPPCL Human Resource department focuses more on the technical side as its domain area is production of Hydro Power. More focus is on providing its new employees full technical knowledge. Most of the employees are of engineering background. HPPCL has a large manpower which works in various projects undertaken by the corporation. Human Resource department is well developed in corporate office situated in Shimla. HPPCL human resource department deals in providing employees good working environment and social well being. HPPCLs human resource department is known as Personnel & Administration (P&A) section.

HPPCLs HR department focuses on the followings:

Establishment Recruitment Training

A brief of the above functional areas of HR department are given below:

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Establishment:

The establishment section of HR department in HPPCL deals with record keeping and maintenance of employee database. All the records are kept by the establishment section. This section keeps both personnel and administrative records. In establishment section the (P&A) logistics is maintained. This department maintains all the service books. This section maintains the records relating to administrative use of items such as stationery, etc.

Recruitment:

In HPPCL both internal as well as external recruitment takes place. The internal recruitment is done through promotion, references etc. External recruitment is done through deputation, selection and other sources. Recruitment in HPPCL is conducted by the (P&A) section of the corporation. In the future all the recruitment will be conducted by through Himachal Pradesh Public Service Commission (HPPSC). Most of the employees in the corporation are contracted employees. The employees recruited by the corporation itself are the contracted employees. There is a proposal to soon regularize all the contracted employees of the corporation. Most of the employees are on deputation with approximately 90% of the manpower drawn from Himachal Pradesh State Electricity Board (HPSEB). The rest of employees on deputation are from HPFC, HPMC and several other government owned organizations.

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The work on formulating recruitment policy is under the process. Till the time such policy is framed H.P. Govt. norms will be followed.

Training:

After the employees are selected they are provided Induction training. Internal training, seminars and workshop are organized at regular intervals for the development of the workforce in HPPCL. Main focus of training is on technical aspects as the all the projects are in construction phase. Training is funded through Asian Development Bank (ADB) and Himachal Institute of Public Administration (HIPA). Training is approved by the board of directors and it is followed accordingly. Every employee in HPPCL is entitled to training at various levels.

Level of employees in corporation:

Worker:

W 0 -W 11

In this, W8- W 11 is supervisory level.

Executive:

E0 - E9 S1-S4

Supervisory:

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Workers are entitled up to 2 days training in a year. Executives are entitled up to 7 days training in a year and 15 days training once in 3 years. Higher level than executives is entitled to 15 days training in a year and outside India once in 2 years. From time to time training is provided to employees in order to update their knowledge.

Some of the Institutes where training is provided are:

Himachal Institute of Public Administration (HIPA) Power Management Institute, Noida National Power Training Institute, Faridabad Energy Staff Council of India, Hyderabad Administrative Council of India, Hyderabad National Productivity Council, Mumbai

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FINANCE DEPARTMENT

The Finance Department of HPPCL is divided into four sections namely:

I. II. III. IV.

Finance & Accounts Budgeting & Banking Financial Concurrence Establishment Division

FINANCE DEPARTMENT

Finance & Accounts

Budgeting & Banking

Financial Concurrence

Establishment Division

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A brief detail of the above departments is given in the following sections:

I. Finance & Accounts:

Following work is undertaken under this wing: a) Compilation of accounts of all units for review and annual closing and all related and follow up matters. b) Finalization of Balance Sheet and annual reports of HPPCL. c) Policy matters. d) Filing of all tax returns and all related tax matters. e) Compilation of expenditure statements and review thereof. f) AG/CAG Audit matters and tax audit. g) Maintenance of General Ledger and drawing of trial balance of corporate office and related monitoring and follow-up matters. h) PUC/ Vidhan Sabha and other committee matters. i) Internal Audit/ Statutory Audit ad liaison with Auditors/CAs. j) Any other work as requirement.

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II. Banking & Budgeting:

This division of Finance department deals with banking, external funding and budgeting matters. Under the Banking section all the matters relating to banking and Bank Reconciliation Statement (BRS) is dealt with. Here it is important to understand what is meant by BRS. A BRS is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.

This statement is the most common tool used by organizations for reconciling the balance as per books of company with the bank statement and is made at the end of every month. The main objective of reconciliation is to ascertain if the discrepancy is due to error rather than timing.

The difference between the two records on a given date may arise because of the following:

Cheques drawn but not yet presented to the bank. Cheques received but not yet deposited in the bank. Interest credited and not recorded in the organization's books. Bank charges debited but not recorded in the organization's books.

Also in HPPCL all the spare funds are kept in various banks as Fixed Deposit Receipts (FDRs). Following is an indicative list of the banks with which HPPCL maintains its bank accounts: HDFC Bank Punjab National Bank
35

State Bank of Patiala Axis Bank Corporation Bank INDUS Ind Bank

The External Funding section will deal with all the funds received from ADB (Asian Development Bank) and World Bank in future. This will include all the issues pertaining to finances approved by both the financial bodies. Under the Budgeting section Detailed Project Report (DPR) forms the basis of all the budgeting. An estimated expenditure report is prepared by all the units of HPPCL after which evaluation is undertaken by the budgeting team of Finance department. At all times care is taken to ensure that all the budgets are in compliance with DPR. Correction of overestimation and underestimation is also made by the budgeting team. Compilation of all units budgets is done by this wing of Finance department. Post which the complied budgeted report is sent to Board of Directors (BOD) for approval

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III. Financial Concurrence:

The Concurrence Department makes sure that all the financial tenders are prepared according to the DPR.

Following are the items which are submitted by Concurrence wing: 1. Reference of indent/item in the DPR. 2. Whether tender/ quotation has been floated. 3. Whether administrative and technical approval obtained from the competent authority. 4. Comparative statement of tender/quotation. 5. Percentage of increase on scheduled rates. 6. I case of increase justification thereof. 7. Time limit provided in the contract. 8. Volume of work to be completed within the time, provided in the contract or as a consequence of any directions. 9. Any LD/Penalty to be imposed due to delay as per terms ad conditions of the contract. 10. Budgetary provisions. 11. Reference of specific Item No. under which sanction/ approval sought under Delegation of Powers.

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IV. Establishment Wing:

This wing of Finance department oversees the preparation of all vouchers, cash book, salary slip preparation, cash disbursement and claims of the staff. ALL RECEIPT AND Payments are looked after in this cell. All the matter relating to payment of travelling allowance, dearness allowance, medical bills, every kind of payments whether to a contractor or firm for a hired vehicle, office stationery are dealt by this wing. Records of all the transactions are maintained in appropriate books of accounts by the establishment wing of finance department. A salary slip will normally constitute the following items:

Basic Pay

Dearness Pay

Interim Relief

Total

DA based on fixed %

HRA

Capital Allowance

Liver y Allo wan ce

Washing, Electricity Allowance

Special Section Allowance

Arr ear s

Total

Less Pensi on

G r o s s

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INFORMATION TECHNOLOGY DEPARTMENT

The IT department is concerned with website designing, coding, updation and linking of the corporations website. All the troubleshooting matters of IT are handled by this department. Records of all IT infrastructures are kept by the same. After this work uploading of web pages are done by Department of Information Technology (DIT), of Himachal Pradesh Government. The office of DIT is situated in Khalini, Shimla. Currently only the corporate office is equipped with wireless broadband internet connectivity. Remaining departments of HPPCL will be computerized in due time. Also all the tenders related to computer hardware and all IT related equipment are floated by this department. At present DGM-IT department reports to Director of the corporation.

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ELECTRICAL CONTRACTS & DESIGN CELL

I.

ELECTRICAL CONTRACTS CELL:

The Electrical Contracts cell engages in preparation of bidding documents for the acquisition of Electro-Mechanical equipments of the hydro projects. Bidding documents lay all the technical specifications relating to specific turbines and generators as per the requirements of the said hydro power project. Commercial bidding is the second part of the bidding document prepared by the Electrical Contracts Cell. Joint bidding in joint venture form is also accepted by the department. In a bidding document there are certain conditions laid down which are: 1. General conditions 2. Special conditions

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General Conditions:
In bidding documents general conditions lay down all the matters which are generic in nature and mandatory to follow in any tender. Matters relating to transportation responsibility of the machinery are covered under general conditions. Virtually, all the conditions from A to Z are laid down.

Specific/Special Conditions:
All the legal terms and conditions which are specific to the particular bidding document are laid down under this head. All the matters relating to labor laws and resolution are laid under this head. In the event of a dispute a Special Dispute Resolution Board is set up with independent representatives drawn from various government departments. This board is vested with the responsibility to resolve the matter in the most impartial manner. In all the specific conditions the major driving force is the COST FACTOR. It implies that the per unit production cost is arrived at and considered before floating and bidding document.

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II. ELECTRICAL DESIGN CELL:

In an Electrical Design Cell a preliminary survey is conducted followed with an Intermediate and Final Survey of the project site. This section deals with designing of parts and sub parts including the inner, outer and radial diameter of the respective turbines for commissioning in the hydro project. The Electrical Design Cell follows both ISBR and IS (Indian Standards) Codes. Any Electro Mechanical Equipments design specifications are laid by this cell.

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METHODOLOGY

(1) Preliminary Survey: - The project study was undertaken general discussion and informal interview with the customer both possessing and prospective. The objective were set mainly to gain an idea about consumers buying behaviors of SUVs.

(2) Data Collection: - The data were collected from primary sources. The primary data were collected from the customer both possessing and prospective. Surveying method through personal or direct interviews with the help of questionnaire-designed specification for the purpose did this.

(3) Questionnaire Design:- Primary data was collected through well framed questionnaire. The questionnaire had two parts, one part for possessing customers and other part for prospective customer. Question was framed keeping mind. The various information required as per the objectives. Each question was directed towards getting information regarding Maruti as well as other competitors. The questionnaire contained both open ended and close ended question. Also question with multiple-choice answers, degree of importance scale etc. were included. All effort were made to that the questionnaire was simple and precise and also adequate SUVse was taken about the language, structure and format of questionnaires.

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(4) Sample Size: The sample was selected on the basis of simple random sampling. A total 50 customer surveyed where 44 were processing and 6 were prospective customers. The total sample size in segmented under the following zones: Zones: 1. Snowview Automobiles. 2. Main Road, Kachi Ghati. 3. NH22. 4. Various business establishments in Solan.

(5) Analysis: The data collected from the customer were analysed using different standard statistical tools and techniques each of the question were analyzed to find out the purchasing behaviour of different SUVs with reference to Maruti motors.

(6) Scope: The scope of the project is define by the objective of the study it self. If the study was basically for the fulfillment at its objectives. This means that scope of this project study is restricted to consumers buying behaviours of Maruti SUVs among the other brand in the market. Scope of this project is also restricted to the area of field survey in Solan. The study does not include any other area like finance personnel product etc.

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(7) Limitations: With many point the study of this project suffered from many limitation also, likewise as the sample is low I cannot analyze many respondent, as the survey may also suffer from bais results.

(8) Recommendation: Recommendation were made or the based of finding drawn from the project analysis.

Conclusion: Conclusion were made on the finding and analysis of the survey.

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BIBLIOGRAPHY
Bibliography

Name of the Author/Publisher 1. Kotler Philip

Year of Publication Eighth Edition (1994)

Name of the Books Marketing Management

2. RSN Pillai Bhagavathi

Thirteenth Edition(2003)

Modern Marketing Principle and Practices

3 C.R. Kothari

Second Edition (1990)

Research Methodology

Websites:http://www.wikipedia.org http://www.mahindra.com http://www.google.com

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