NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON CASH AND BANK

December, 2001

A.F.FERGUSON & CO. NEW DELHI

MANUAL ON CASH AND BANK 1

CONTENTS Process Introduction Bank Payments and cancellation of cheques Bank Payments through bank transfer Bank Payments - Accounting for bank advices Cash payments Withdrawal of cash from bank Cash and Bank receipts Payments in foreign currency - travel abroad by Employees Receipts in foreign currency Refund by employees Payments in foreign currency Other than employees Opening of Inland LCs Collections from Electricity Boards Remittances to various units Accounting for Dishonoured cheques Bank Reconciliation Statement Deposit of TDS Physical verification of cash and cash equivalents Custody and issue of cheque books and preprinted stationary APPENDICES ATTACHED Appendix I Appendix II : : Formats Formats of MIR Process No 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Page No 01 02-06 07-09 10-11 12-14 15-16 17-19 20-22 23-24 25-26 27-29 30-32 33-35 36-37 38-40 41-42 43-44 45-46

MANUAL ON CASH AND BANK

Introduction This manual lays down the policies and procedures to be followed, the checks and controls to be exercised, the documents to be generated, records to be maintained, for all cash and bank transactions payments, receipts, reconciliation, physical custody and verification procedures. Foreign currency receipts and payments are also covered. The manual provides the Management Information Reports (MIR) to be generated. Detailed formats in respect of each document, record/register and report to be prepared/generated through the system as outlined in the manual have also been provided. The manual outlines the roles and responsibilities of the Cash and Bank Section and its inter face with the other sections in the Finance and Accounts Department. Further, the delegations with respect to the Internal Working Arrangement for the Finance and Accounts officials as approved by the Director (Finance) are to be kept in view wherever referred to in the manual.

MANUAL ON CASH AND BANK

Process: Bank payments and cancellation of Cheques Process brief

Process No.: 01

This process lays down the procedure to be followed for payments by way of cheques/drafts and inter bank transfer of funds at Corporate Centre/Stations. The process also provides procedure for cancellation of cheques. The concerned sections (i.e. the Works bill/Stores bill/Establishment Finance Section etc.) are to process the bills and authorise payments as per the laid down procedure for the respective areas. The Cash and Bank Section would release the payments in cash or through bank, based on the duly authorised payment vouchers of the concerned section. While processing the payments the Cash and Bank Section is to ensure that: The specimen signatures of the officials authorised to sign cheques are communicated to the Banks. Any advice/instruction to a bank such as for preparation of DDs, payments for LSC (other than in the case of payment in foreign currency) is supported by a cheque. This is to be clearly instructed to the bank also. There are no manual changes/amendments on the BPV. Cash and Bank Section shall not prepare any bank payment voucher (other than for the account heads to be operated by this section) or modify any field of the vouchers prepared by other sections (i.e. party name and code, particulars, amount, etc). The Cash and Bank Section updates the fields for cheque number and date and the bank code only. Wherever facility for printing cheques through the computer exists, no manual cheques are prepared.

The Cash and Bank Section should verify the following prior to releasing the payments: The BPV is duly authorised by the competent authority. In case the debit account head in the BPV is an expense/advance account, the original bills/ supporting documents are attached with the BPV. In case the debit head in the BPV is a creditors control account (such as Contractors control account), a copy of the authorised JV vide which the concerned bill was processed for payment and a copy of the supporting documents are attached with the BPV. The JV number (system generated) should be recorded on the BPV. Approval of the Head of the Project is enclosed in case of payment of any liability which is unpaid for more than 3 years The BPV bears two serial numbers Sectional serial control number i.e. the serial number of the section preparing the BPV Bank Voucher Reference (BVR) number i.e. the continuous number allotted by the Cash and Bank Section at the time of making the payment All cheques and drafts are to order and crossed Account payee All cheques are signed by the authorised signatories as per the Internal working arrangement (IWA). To the extent possible the cheques should be signed by officials other than the officials authorising the payment with the exception of HOD (Finance). The first signatory on the cheque/bank instrument should preferably be an executive from the Cash and Bank Section. 2

MANUAL ON CASH AND BANK

Cheques are directly despatched to the party or are handed over to the party on due authorisations. Acknowledgement of receipt of the cheque (in case cheque is handed over to the party) is to be taken on the voucher itself. Cancelled cheques are defaced and retained for records. All payment vouchers and supporting documents are defaced as Paid after payments. The Bank Book is reviewed with the vouchers and the supporting documents thereof as per circulars/guidelines issued from time to time in this respect.

Departments/sections involved in the process Finance and Accounts Department Cash and Bank Section Despatch Section

Procedure : Bank payments and Cancellation of Cheques S. No. 1 Activity Responsibility Receive the duly approved BPVs along Cash and Bank Section with the supporting documents from the concerned sections and a list of all the vouchers forwarded during the day Cash and Bank Check that the: Section BPV is approved as per the IWA Necessary supporting documents are attached Amount payable and the payee are as per the supporting documents attached See if any special remarks/ instructions are stated on the BPV such as any particular bank on which the cheque is to be drawn, mode of despatch, etc Verify the amount and payee in the Cash and Bank Section computerised record from the hard copy. Enter the bank code and confirm the starting Section Voucher Reference number for the day. Update the BPV to generate the Cash and Bank following: Section Bank payment Voucher Reference (BVR) number Frequency As and when Remarks

Same Day

Same Day

The last cheque number issued in respect of each bank code to be available in the system In case of any discrepancy the BPV should be returned to the originating 3

Same day

MANUAL ON CASH AND BANK

S. No.

Activity Responsibility Cheque alongwith a list of cheques printed. DD requisition form, in case DD is to be obtained from the bank Forwarding letter for the party in case the payment is by DD Despatch list

Frequency

Remarks section

Record the BVR number (generated by the system) and the cheque number on the hard copy of the BPV. Forward the BPVs along with the supporting documents and cheques for signatures by the authorised signatory. Verify, authorise and authenticate the BPV and cheque on the system. Sign the hard copy of the BPV and the cheque as a first signatory.

Concerned official as per IWA

Same day

In-charge, In case a cheque is to be cancelled for any reason, follow the procedure Cash and Bank Section specified. Verify preparation of all the Cash and Bank Incharge cheques/DDs with the list of vouchers received by the Cash and Bank Section from the concerned section Carry the cheques to the second Cash and Bank Section signatory, alongwith the BPV and the supporting documents. Verify, authorise and authenticate the BPV and cheque on the system. Sign the hard copy of the BPV and the cheque as the second signatory. Concerned official as per IWA

System to capture authentication by the authorised signatories

Daily

Same day

In case a draft is to be issued, get a Cash and Bank Section draft made from the bank and update the system for the draft number and date. Record the draft number and date on the hard copy of the BPV.

DD number, date and amount to be linked to DD requisition form and the details to be available in party subledger also

MANUAL ON CASH AND BANK

S. No. 8

Activity Responsibility Forward the despatch list and the Cash and Bank Section cheques/drafts to the despatch section and obtain an acknowledgement of the same. File the BPV along with the supporting documents in the BPV file - serial number and date wise. Despatch the cheques/draft to the parties

Frequency Same day

Remarks

Despatch Section

Same day

Update the despatch register with the document reference and date of despatch 10 Generate a consolidated list of cheques Cash and Bank Section printed during the day (bank-wise) and after approvals of the competent authority intimate the same to the concerned bankers. System 11 Generate a list of un-updated vouchers in the system section wise Administrator and forward the same to the HOD(F) In charge 12 Review the list of un-updated vouchers and take the necessary action (as Cash and Bank Section applicable say follow up with the concerned section, etc) In charge 13 Review the despatch register to ensure Despatch timely despatch of cheques. In case of Section delays, followup with the despatch section. Cancellation of cheques/drafts 14 In case a printed cheque is to be cancelled due to: Defacement of cheque during printing subsequent to updation of the BPV on the system by the Cash and Bank Section: - Authorise printing of fresh cheque - Generate a BRV to cancel the earlier cheque and BPV for printing fresh cheques Cash and Bank Section I/C Cash and Bank Section

Daily

Weekly Weekly

Weekly

As and when

Same day Same day

The original BPV reference to be recorded on the BRV and the defaced/cancell ed cheque to form the supporting for the BRV Reference of the cancelled BPV and BRV to be given on

MANUAL ON CASH AND BANK

S. No.

Activity Cancellation/stop payment requested by originating section. - Deface/Cancel the cheque - Return the BPV along with the supporting documents and the cancelled cheque to the originating section for preparation of BRV. Cancellation to be effected on expiry of the validity of the cheques remaining unpaid. - Prepare a BRV to transfer the balance of the cheques expired to the Stale cheques liability account

Responsibility

Frequency

Remarks the final BPV A record of cancelled cheques to be available in the system

Cash and Bank Section

Same day

Books Section

Month-end

Document - Records Document Title Bank Payment Voucher (BPV) Bank Book Cheques Despatch list List of cheques printed during the day List of un-updated vouchers Document Type I/O O O O R MIR Format Ref CB/01 CB/02 CB/03 CB/04 CB/MIR/01 Frequency As and when Daily Daily Daily Daily Weekly Distribution To Cash and Bank Section Cash and Bank Section Despatch Section Despatch Section Bank HOD (F)

Note: I: Input O: Output R: Record/Register MIR: Management Information Report

MANUAL ON CASH AND BANK

Process: Bank payments through bank transfer Process brief

Process No.: 02

This process lays down the procedure to be followed in respect of bank payments through bank transfers. The procedure for verification and approval of the bills/employee claims has been described in the relevant manuals. Payment through bank transfer is effected through a schedule, supported by a cheque. While processing the payments the checks and controls to be exercised and the procedure to be followed for payments through bank transfer shall be the same as described in Process No. 1 Bank payment and Cancellation of Cheques. In addition the Cash and Bank Section should ensure the following: The bank schedule is supported by a cheque. In case the concerned branch is computerised a soft copy of the schedule may be sent to the bank. The official/(s) approving the BPV also approves the bank transfer advice. A periodicity is fixed for bank transfers. A weekly payment cycle may be followed. The Bank Book is reviewed with the vouchers and the supporting documents thereof as per circulars/guidelines issued from time to time in this respect. Departments/sections responsible Finance and Accounts Department Cash and Bank Section

Procedure: Bank payments through bank transfers S. No. 1 2 Activity Responsibility Receive the duly approved BPVs along Cash and Bank Section with the bank schedule and supporting documents from the concerned sections Check that the: Cash and Bank Section BPVs and the bank schedule are approved as per the IWA Necessary supporting documents are attached Amount payable and the payees are as per the supporting documents Verify the amount and payee in the Cash and Bank Section computerized records from the hard copy Frequency As and when As and when Remarks

Same day

The last cheque number issued in respect of each 7

MANUAL ON CASH AND BANK

S. No.

Activity Responsibility Enter the bank code and confirm the starting section voucher reference number for the day Update the BPV to generate the Cash and Bank Section following: BVR number for the BPVs Cheque Bank transfer schedule

Frequency

Remarks bank code to be available in the system

Same day

Record the BVR number and cheque number on the hard copy of the BPVs Forward the BPVs along with the cheque and the bank transfer schedule to the authorised signatory. Verify, authorise and authenticate the BPV, cheque and the bank transfer schedule on the system. Sign the hard copy of the BPVs, cheque and the bank transfer schedule as a first signatory In case the cheque is cancelled, follow the procedure as outlined in the Process No. 1 above. Carry the cheques to the second Cash and Bank Section signatory, along with the BPV and the bank transfer schedule. Concerned Verify, authorise and authenticate the BPV and the cheque on the system. official as per IWA Sign the hard copy of the BPV, the cheque and the bank transfer schedule as the second signatory. Forward the bank transfer schedule and Cash and Bank Section the cheque to the bank and obtain an acknowledgement for the same File the BPV along with the supporting documents in the BPV file - serial number and date wise.

Concerned Official as per IWA

Same day

Same day

By the next day

MANUAL ON CASH AND BANK

Document - Records Document Title Bank Payment Voucher Bank transfer schedule Bank book Document Type I/O O O Format Ref CB/01 CB/05 CB/02 Frequency As and when As and when Daily Distribution To Cash and Bank Section Cash and Bank Section Bank Cash and Bank Section

MANUAL ON CASH AND BANK

Process: Bank payment - Accounting for bank advices Process brief This process lays down the procedure for accounting of bank advices.

Process No.: 03

All bank advices are to be received by the Cash and Bank Section only. Cash and Bank Section would in turn forward the same to the concerned section through the Bank Advice Register. Accounting of the advices is to be done by the concerned sections. Departments/sections involved in the process Finance and Accounts Department

Procedure : Accounting for bank advices S. No. 1 Activity Responsibility Frequency Receive the debit/credit advices from Cash and Bank As and when Section the bank and ensure that the bank advice pertains to NTPC based on the intimation received from the concerned sections regarding expected debits/credits. Same day Enter the details of the advices in the Cash and Bank Section Bank Advice Register and allot a control serial number to the advices. Identify the Section to which the advice Cash and Bank Section pertains and record the section reference in the bank advice register Forward the bank advice to the concerned section and obtain an acknowledgement of the same. Check the bank advice and ensure the correctness of the debit/credit Generate an adjustment voucher to account for the bank advice and update the Bank Advice Register. 5 Generate a report on the bank advices Books Section unaccounted for and follow up with the concerned section for delays in Weekly and Before preparation The report is to be reviewed by HOD (Finance) Same day Remarks

Serial control of the advices to be maintained bank wise

Concerned Section

Same day

MANUAL ON CASH AND BANK

10

S. No. accounting. 6

Activity In case of any delays/dispute take the necessary follow up action with the bank.

Responsibility Concerned Section

Frequency of BRS As and when

Remarks

Document - Records Document Title Bank Advice Bank advice Register Statement of bank Advices unaccounted for Document Type I R MIR Format Ref. CB/06 CB/MIR/02 Frequency As and when As and when Weekly and with BRS Distribution To Concerned Section Concerned Section HOD (F)

MANUAL ON CASH AND BANK

11

Process: Cash payments Process brief

Process No.: 04

This process lays down the procedure to be followed in respect of cash payments to employees. The concerned section (i.e. Establishment Finance) is to process the bills and authorise the payment as per the Personnel Accounting manual. The Cash and Bank Section is to release payments based on the duly authorised cash payment vouchers (CPV). Cash and Bank Section shall not prepare any cash payment voucher other than for utilization of revenue stamps on receipt of money on companys account/deposit of excess cash and shall not modify any field of the vouchers (i.e. party name and code, particulars, amount, etc). While processing payments, the Cash and Bank Section is to ensure that: No cash payment is made to outside parties. There are no manual changes/amendments on the CPV. Cash payment is as per the companys policy and is not in contravention of the provisions of the Income Tax Act, 1961. Payments are made only against the original supporting documents. In case the original supporting documents are lost/misplaced in finance approval of the HOD (F) to release the payment is enclosed with the CPV. Payment in cash is released to the concerned employee after obtaining his acquittance or to his authorised personnel (written letter of authority) in line with the guidelines issued from time to time in this respect. All payment vouchers and supporting documents are to be defaced as paid after payments have been released.

The CPV should bear two serial numbers: Sectional serial number i.e. the serial number of the section preparing the CPV CVR number i.e. the continuous number allotted by the Cash and Bank section at the time of releasing payments

Departments/sections responsible Finance and Accounts Department Cash and Bank Section Establishment Finance

MANUAL ON CASH AND BANK

12

Procedure: Cash payments S. No. 1 Activity Responsibility Frequency Receive the duly approved CPV Cash and Bank As and when Section from the Establishment Finance section along with the supporting documents. Check the following: Cash and Bank Before making Section payment CPV is approved as per the IWA. Necessary supporting documents are attached. Amount payable and the payee are as per the duly approved supporting documents. Update the CPV and record the Cash and Bank At the time of Section making CVR number and the date of payment payment on the CPV. Check the identity of the person collecting the payment in case of payee employee - by his identity card and in case of any other person - based on a letter of authorisation from the concerned employee as well as the Identity card. However, in either case acquittance is to be obtained from the payee on the cash payment voucher. Obtain the signature of the payee on the CPV as an acknowledgement of the cash received. The payee should write the date of receipt, his name and the amount received. Affix a revenue stamp as per the applicable provisions of the Stamp Act. Attach the letter of authorisation along with the CPV and obtain the signature of the person authorised (in case payment is made to the authorised person) Remarks

MANUAL ON CASH AND BANK

13

S. No.

Activity

Responsibility

Frequency

Remarks

Deface the voucher and the supporting documents as Paid on release of payments Carry out a random check to ensure Cash and Bank Section that the payments made are as per the duly authorised CPVs and the necessary supporting documents are attached. Initial the vouchers so checked. Generate a list of un-paid Cash and Bank Section vouchers pending for more than one week, review the same and take necessary action (as applicable say follow up with the concerned section, return of the unpaid voucher to the concerned section for reversal of the entry, etc)

Monthly

Weekly

Document - Records Document Title Cash Payment Voucher Cash book List of unpaid vouchers List of cash payment vouchers pending payments Document Type O O R MIR Format Ref CB/07 CB/08 CB/MIR/01 CB/MIR/03 Frequency As and when Daily Weekly Weekly Distribution To Cash and Bank Section Respective sections (as applicable) Cash and Bank Section In charge. Establishment Finance.

MANUAL ON CASH AND BANK

14

Process: Withdrawal of cash from bank Process brief

Process No.: 05

This process lays down the procedure for withdrawal of cash by NTPC from bank. The BPV for withdrawl of cash is prepared by the Cash and Bank Section based on the estimated requirements (for the period till the next banking hour) keeping in view the minimum cash balance that is to be maintained. The Cash and Bank Section should ensure the following:

BPV for withdrawal of cash from bank is prepared only in favour of the cashier. The total amount of cash in hand does not exceed the cash insurance limit. If it is expected to exceed, an insurance cover for the additional amount is to be taken or the excess amount is to be deposited with the bank. The cash insurance cover is periodically reviewed.

Procedure : Withdrawal of cash from bank S. No. 1 Activity Responsibility Estimate the cash requirement keeping Cash and Bank Section in view the cash in hand (as at the close of the previous day), the vouchers received but pending payments and the vouchers expected during the day based on past trends or any special anticipated withdrawals. Ensure that the cash in hand remains within the cash insurance limit. Generate a BPV and forward for Cashier approvals as per IWA Check the request, authorise the BPV in Cash and Bank Section the system and generate a bearer cheque in the name of the cashier, from the system. Simultaneously, generate a CRV for the cash to be withdrawn as per the BPV. Follow the prescribed procedures for preparation of BPV, cheque and CRV. Obtain the cashiers signature on the BPV in acknowledgement of the receipt of the cheque for withdrawal of cash Frequency Daily Remarks

2 3

As and when As and when

MANUAL ON CASH AND BANK

15

S. No. 4 5

Activity Withdraw cash from the bank

Responsibility Cashier

Frequency Same day Daily (End of the day)

Remarks

Generate a report providing a Cash and Bank Section comparison of the closing cash balance in hand and the insurance limits to review that the cash balance in hand is within the insured amount.

Document - Records Document Title BPV CRV Cash/Bank book Cheque Statement of closing cash balance in hand Document Type O O O O MIR Format ref CB/01 CB/09 CB/08 and CB/02 CB/MIR/04 Frequency As and when As and when Daily As and when Monthly Distribution To Cash and Section Cash and Section Bank Bank

Cashier I/C, Cash and Bank Section HOD (F)

MANUAL ON CASH AND BANK

16

Process: Cash and Bank receipts Process brief

Process No.: 06

This process lays down the procedure to be followed in respect of miscellaneous receipts from third parties (in the form of cheques/drafts only) and from employees. In case of cash receipts the concerned section is to prepare a CRV and the cashier is to accept the cash based on the CRV. The CRV shall bear two serial numbers: Sectional serial control number i.e. the serial number of the section preparing the CRV Cash Voucher Reference (CVR) number i.e. the continuous number allotted by the Cash and Bank Section at the time of receiving the payment

Cheques/drafts are to be received directly by the Cashier. However, in case of EMD in the form of draft/cheques (received along with the tender documents) the same is to be brought to the Cash and Bank Section along with a statement of the same by the finance representative associated in the bid opening. The Cash and Bank Section is to ensure that: The cheques/drafts are valid An acknowledgement is issued for all receipts which is serially controlled The receipt issued indicates that the cheque is subject to realisation Cheques/drafts are promptly deposited with the bank

Departments/sections involved in the process Finance and Accounts Department Cash and Bank Section Establishment and bill passing sections

Procedure: Cash and bank receipt S. No. 1 Activity Responsibility Cash receipt Concerned Generate a cash receipt voucher based section on a request of refund of cash from the employee. Forward the CRV for approvals to the competent authority 2 Forward the CRV to the cashier Receive the duly authorised CRV from the concerned section and cash from the Concerned section As and when Frequency As and when Remarks

MANUAL ON CASH AND BANK

17

S. No.

Activity Responsibility employee and update the CRV to generate the CVR and a money receipt Record the CVR number (generated by the system) on the CRV Issue a copy of the receipt to the employee and file a copy of the same in the cash receipt file along with the CRV Receipt in cheques/drafts Receive the cheque/drafts from the Cash and Bank Section party/employee. Ensure the following : cheques are complete, current and valid amount in words/figures tally cheques are crossed, signed and are in the name of NTPC cross the cheques not already crossed cheques/drafts from parties are accompanied by authorisation of the concerned section/department

Frequency

Remarks

As and when

Immediately

The system would generate the serial control number for the BRV

Immediately

Generate the following: BRV Money receipt for the cheque/draft. Sign the hard copy of the BRV as an acknowledgement of receipt of the cheques/drafts. Issue a copy of the receipt to the employee/party and file a copy of the same in the bank receipt file Generate two copies of the pay-in-slip Cash and Bank Section for the cheques/drafts to be deposited in the bank Deposit the above with the bank and obtain a receipted copy of the pay-inslip. File the acknowledged copy of the pay-in-slip in the file. Review the pay-in-slip file to ensure that Cash and Bank Section a) the cheques/drafts have been

Same day/ next day

Daily

MANUAL ON CASH AND BANK

18

S. No.

Activity deposited in time b) credits have been given in time

Responsibility

Frequency

Remarks

Enter the dates of deposit in the bank and the credit given by the bank in the system Cash and Bank Prepare/generate the following: Section a statement of cheques/drafts for which money receipt has been issued, pending for deposit in the bank for more than a day a list of the cheques/drafts deposited with the bank pending realisation for a period of more than 3 days

Daily

Review the list/statement and take the Cash and Bank I/C necessary action Document - Records Document Title Cash/Bank Receipt Voucher Money Receipt - Cash Money Receipt cheques/ drafts Cash/Bank Book Pay - in- slip Statement of cheques/drafts pending deposit in the bank for more than a day. Statement of cheques/drafts pending realisation for more than 3 days. Document Type I/O O O O O MIR MIR Format Ref. CB/09 CB/10 CB/11 CB/12 and Frequency As and when As and when As and when Daily As and when Daily Daily Bank Distribution To Cash and Bank Section Party/Employee Party/Employee -

CB/08 and CB/02 CB/13 CB/MIR/05 CB/MIR/06

MANUAL ON CASH AND BANK

19

Process: Payments in foreign currency - Travel abroad by employees Process brief

Process No.: 07

This process lays down the procedure for releasing foreign currency to employees for travel abroad. All foreign currency payments for travelling abroad are centralised at Corporate Centre. Foreign currency is to be released by the Cash and Bank Section based on the orders received from the HR department. The orders received from the HR department are to contain all the necessary approvals/documents/information viz. details of the passport, flight details etc. (as required for submission to the authorised dealer for release of foreign currency). The Cash and Bank Section is to ensure that foreign exchange is released only after all the necessary approvals have been received and the guidelines prescribed in this respect have been complied with Departments/sections involved in the process Finance and Accounts Department Cash and Bank Section , CC HR Department

Procedure: Payments in foreign currency travel abroad by employees S. No. 1 2 Activity Responsibility Frequency Receive a request in the prescribed Cash and Bank As and when Section, CC format for release of foreign currency to employee/s from the HR Deptt. Same day Check that all the necessary approvals Cash and bank Section, CC as per the existing guidelines have been obtained (i.e. from CMD, Ministry of Power, etc.) and are enclosed with the request Update the Foreign currency register (FCR) with the following details : Amount Authorised dealer (AD)/bank Employee/s DD for wire transfer required in respect of training fees, registration fees for conferences, etc Generate a payment instruction (PI) to the bank/AD after verifying the entitlement of the concerned employee MANUAL ON CASH AND BANK The PI number to be i ll 20 Remarks

S. No. 3

Activity Responsibility as per the Company's foreign travel rules - 4 copies. Concerned Verify and approve the PI. This shall official as be signed by the joint signatories as per per IWA the IWA Forward 2 copies of the PI and Form Cash and Bank A2 (after obtaining the same from the Section , CC concerned employee) and a copy of the order issued by the HR deptt to the bank /AD

Frequency Same day

Remarks automatically generated

Same day

Retain 2 copies of the PI and Form A2 in the section for records Receive the bank advice/bill from the Cash and Bank On release of Section, CC foreign bank/AD along with the proof of currency release of Forex to the concerned employee (by way of receipt on the reverse of the bank advice/on the face of the bill of the AD). Same day In case of bank advice verify the same and forward to Establishment finance section enclosing a copy of the respective PI. Same day In case of bills received from the AD, verify the bill and forward the same along with the supporting documents to the Establishment Finance Section, for processing the payment. In case of payments made on behalf of the sites, generate an IUA on the concerned unit for the same follow the procedure as outlined for generation and sending of IUA. Update the FCR with the details of advice/bill, reference of the BPV, IUA etc. Generate a report on the foreign Cash and Bank Section, CC currency released during the period providing employee-wise details

Forex shall be received by the concerned employee directly from the bank/AD

Quarterly

MANUAL ON CASH AND BANK

21

Document - Records Document Title Request for foreign currency purchase Payment Instruction Foreign Currency Register Employees Statement of foreign currency payments released - employees Document Type I I/O R MIR Format Ref. CB/14 CB/15 CB/16 CB/MIR/07 Frequency As and when Same day of receipt of request As and when Quarterly Distribution To Cash and Bank Section, CC Bank/AD Establishment Section -

MANUAL ON CASH AND BANK

22

Process: Receipts in foreign currency - refund from employees Process brief

Process No.: 08

This process lays down the procedure for accounting of foreign currency refunded by employees. The employees are required to refund the balance to the Cash and Bank Section of the respective units. The Cash and Bank Section at the units should deposit the amount with the banker (at the units)/return to the AD and intimate the details of the same to the Cash and Bank Section at Corporate Centre periodically. Procedure: Receipts in foreign currency refund from employees S. No. Activity Responsibility Frequency Receipt of foreign currency 1 Receive foreign currency from the Cash and As and when employee along with the passport. Bank Section Same day 2 Update the Foreign Currency Register Cash and Bank Section (FCR) to generate: a) a receipt to the employee as an acknowledgement of the amount received b) a refund letter to the bank/AD for depositing the foreign currency Same day 3 Verify and approve the refund letter to Cash and Bank Section the bank/AD (both in the hard copy and in the system) 4 Receive the bank credit advice/cheque Cash and Bank Section from the bank/AD. Return the passport to the employee after endorsement of the amount refunded. Same day Remarks

Update the FCR and the bank advice register with the details of the bank credit advice/cheque and generate an adjustment BRV and forward the advice to Establishment Section for accounting Submission of details by Units to CC 5 Generate a statement of the refunds Cash and Bank received in foreign currency during the Section Units month with all the necessary particulars i.e. Employee name and no. Place of visit and no of days

Monthly

MANUAL ON CASH AND BANK

23

S. No.

Activity Purpose of the visit Amount refunded HR order reference PI reference

Responsibility

Frequency

Remarks

Forward the list to the Cash and Bank Section, CC. Review the list received from the units Cash and Bank and update the FCR with the relevant Section , CC details. (No accounting entry shall be passed at CC)

Same day

Document - Records Document Title BRV Money Receipt (refund of Foreign Currency/ Travellers cheques from employees travel abroad) Refund Letter - Refund of foreign currency Foreign Currency Register employees Statement of Refunds in foreign currency received during the year. Document Type I O Format Ref CB/10 CB/17 Frequency As and when As and when Distribution To Employee

O R R

CB/18 CB/16 CB/19

Same day of receipt of currency As and when Monthly

Treasury Section -

Cash and Bank Section, CC

MANUAL ON CASH AND BANK

24

Process: Payments in foreign currency- other than Employees Process brief

Process No.: 09

This process lays down the procedure for releasing payments in foreign currency (in pursuance of the terms and conditions of the contract/agreement) Foreign currency payments for projects under construction are handled by the IF Section at CC and in respect of stations under the O&M stage (for procurement of spares, etc.) the foreign currency payments shall be handled by the T&CC offices. Foreign currency payments for subscriptions to foreign journals, tender fees (in respect of foreign bids entered by the consultancy wing), etc. are to be processed by T&CC/Cash and Bank at CC. It is to be ensured that the payment instructions to a bank are serially controlled. Departments/sections involved in the process Finance and Accounts Department at CC International Finance Section Cash and Bank Section at CC and units T& CC offices

Procedure: Payments in foreign currency other than employees S. No. 1 Activity Responsibility Frequency As and when T&CC/IF Receive a Payment authorisation slip (PAS) from the respective unit along Section, CC/ Cash and Bank with all the supporting documents. Section, CC Check that the PAS is duly authorised All the relevant supporting documents are attached PAS is for the approved amount T&CC/IF By the next Enter the details of the PAS in the Section, CC day system and update the Foreign Currency Register (FCR) other than employees. Generate an authorisation letter to the bank for remittance/preparation of a draft and forward it for approvals (by joint signatories). In case of payments by DD, collect the Cash and Bank Section, CC DD from the bank and ensure that it is in accordance with the instruction issued Remarks

On receipt of the bank advice

MANUAL ON CASH AND BANK

25

S. No.

Activity for preparation of the DD Receive the bank advice and account for it as per the system provided under Process No. 03 above Generate the IUA based on the debit advice for payments on behalf of other units. Follow the procedure for approval and updation of IUA as outlined in the manual on books section Update the FCR other than for employees with the details of the bank advice/IUA. Generate a (section/unit wise) report of the payments released on behalf of the section/unit in Foreign currency on capital/revenue account and forward the same to the concerned section/unit

Responsibility T&CC/IF Section, CC

Frequency

Remarks

T&CC/ IF Section, CC

Monthly

Document - Records Document Title Payment Authorisation Slip (PAS) Foreign currency Register other than employees BPV Statement of Foreign currency released other than employees Document Type I R O MIR Format Ref CB/20 CB/21 CB/01 CB/MIR/08 Frequency As and when As and when As and when Monthly Distribution To T&CC International Finance (CC) Cash and Bank Section Concerned Section/unit

MANUAL ON CASH AND BANK

26

Process: Opening of Inland LCs Process brief

Process No.: 10

This process lays down the procedure to be followed for opening of Inland LCs at site/CC. The procedure for opening foreign LCs and operation of LCs (both inland and foreign) has been provided in the manual on Procurement and Stores Accounting and Contract Accounting. The process also covers procedure on extension of/amendment to LCs. Prior to opening an LC, the concerned section should ensure that the LC application is approved as per the IWA. LCs should be opened with the bank as per the request received from the concerned section and as per the terms of the contract. The specimen signatures of the officials who can establish LCs are to be communicated to the Bank. It should be ensured that all bank advices in respect of LCs are received and accounted for. Departments/sections involved in the process Finance and Accounts Department Cash and Bank Section Indenting Departments Materials, Contracts

Procedure : Opening of Inland LC S. No. 1 Activity Responsibility Frequency As and when Concerned Receive a request for opening of LC section-Site/ from the concerned department in the Estt. at CC prescribed format along with the necessary supporting documents. Review the LC application request w.r.t. the terms and conditions of the contract Update the details of LC opening request in the LC Register. Forward the application to the Cash and Bank Section. Concerned section-Site Remarks

Prepare the LC opening application Cash and Bank Section along with the necessary annexures.

MANUAL ON CASH AND BANK

27

S. No.

Activity

Responsibility

Frequency

Remarks

Ensure that the LC is within the LC limit available from the bank. Generate a request to the bank for Cash and Bank Section opening the LC and complete the requisite forms. Update the LC Register with the details of the LC request and the date when sent to the bank Receive a copy of the LC from the bank. Cash and Bank Section Check that it is in accordance with the terms as specified to the banker Enter the details of the LC to update the LC register in the system. Hand over the LC to the concerned section and obtain an acknowledgement for the same. Retain a copy of the LC for office records.

By the next day

Within the stipulated period

The various sections involved should have the facility of viewing the LC register so as to ensure that the LC has been effected/ amended/ cancelled as per their request.

Receive the bank advice along with the Cash and Bank Section documents from the bank (after operation of the LC). Enter the details of the bank advice in the system to update the Bank Advice and LC Registers. Account for/forward the bank advices as per the procedure outlined for bank advices Generate a list of LCs that have not Cash and Bank Section been operated (and are close to the expiry date), and forward to the concerned sections for necessary action (extension/cancellation of LC) Amendment of LC Receive a request for amendment of LC from the concerned section and advise Cash and Bank Section the same to the concerned bank. (Follow the procedure as outlined above for obtaining and recording of LC)

On payment against LC

Monthly

As and when

MANUAL ON CASH AND BANK

28

S. No. 7

Activity Responsibility Review the LC request monitoring Cash and Bank Section register and ensure that no LC applications are pending with the bank and in case of delays take the necessary follow-up action with the bank Generate a statement of the total LC Cash and Bank Section limit sanctioned, the amount utilised/released and the balance available. Review the report and take necessary action

Frequency Weekly

Remarks

Monthly

Document - Records Document Title LC LC Register (Inland) LC Request Monitoring Register LC Limit Utilisation Report Document Type O R R R Format Ref CB/22 CB/23 CB/MIR/09 Frequency As and when Distribution To Cash and Section Bank

MANUAL ON CASH AND BANK

29

Process: Collections from Electricity Boards Process brief

Process No.: 11

This process lays down the procedure to be followed for realisation of dues from the SEBs and accounting for the same. The realisations from various SEBs are made at the respective collection centres. The realisations are made: By way of cheques/drafts these shall be deposited in the local bank for collection Through LCs- RHQs shall ensure that the LCs are operated on the due dates and funds are remitted by the bank to CC

All collecting banks are to have a Standing Instruction for remitting the amount received to the designated banks at CC on the same day. Collection Centres shall intimate the details of the collections on a day to day basis to RHQ's/CCCommercial/Treasury Section at CC. RHQs shall account for the collections and the corresponding bank charges. The bank reconciliation statement for the collection account shall also be prepared by RHQs. On transfer of funds to CC, accounting shall be done through inter unit advices. The debtors accounting and records shall also be maintained at RHQ. The RHQs and the Commercial Department at CC shall exercise control on debtors. All cheques in hand should be accounted for at the time of finalising the accounts for any period by credit to the sundry debtors a/c. On realisation of these cheques, a BRV should be prepared crediting the cheques in hand a/c. Departments/sections involved in the process CC Finance and Accounts Department Treasury Section RHQ Finance and Accounts Department Cash and Bank Section Commercial department

Procedure : Collections from the SEBs S. No. 1 Activity Responsibility Frequency As and when RHQIntimate the details of realisation to RHQ- F&A/CC-Commercial and the Commercial/ Collection Treasury Section, CC. Centre Same day Receive the bank advice for receipt of Cash and Bank Section- RHQ funds from SEBs. Remarks

MANUAL ON CASH AND BANK

30

S. No.

Activity Responsibility Generate a BRV for the amount received from the SEBs and update the advice receipt register, bank book, debtors ledger etc. Treasury Enter the details of the realisations as Section, CC intimated in the system to update the collection registers (daily and SEBwise). Confirm with the bank for the credit of the funds in the CC Collection account. In case of any delays follow-up with the concerned collection centre/bank. Receive the bank advice and enter the date and amount of receipt in the system to update the Collection Registers Prepare a BRV for the funds received and an IUA for the concerned RHQ.

Frequency

Remarks

On receipt of intimation Daily

Treasury Section, CC

Same day

Follow the procedure for approval and updation of BRV/IUA. Receive the IUA from CC and verify Cash and Bank with the earlier debit raised on CC and Section RHQ account for the same. Ensure that IUAs in respect of all the funds transferred have been received. On receipt of the bank statement/advice generate a BPV to account for the bank charges after ensuring that the bank charges are as per the agreed rates. Review the collections register and ensure that the funds have been credited in time.

Treasury Section, CC

Daily

In case of any delays in receipt of funds/ credit of funds ensure that the necessary action has been taken with the bank. Treasury Generate a statement of delays in credit Section, CC of funds, review the same and take the necessary follow up action with the bank Remittances in-transit at the period end Prepare a JV to account for the Treasury

Monthly

At the period

MANUAL ON CASH AND BANK

31

S. No.

Activity Responsibility Section, CC remittances in-transit based on the intimation received from the RHQ/ Collection Centre for the funds transferred but not credited in the CC bank account The entry to be adjusted as and when the amount is received, after verifying the bank statement Cheques in hand at the period-end Prepare a JV to account for the cheques in hand based on the intimation received from the RHQ/Collection centres The entry to be adjusted as and when the cheques are realised and transferred to CC based on the procedure outlined above

Frequency end/year-end

Remarks

Treasury Section, CC/ RHQ

At periodend/year-end

Document - Records Document Title Daily Collection Registers SEB wise Collection register BRV/BPV Statement of delays in credit of funds Document Type R R O R Format Ref. CB/24 CB/25 CB/01 and CB/ 10 CB/MIR/10 Frequency As and when As and when As and when Monthly Distribution To Cash and Bank Section Cash and Bank Section Cash and Bank Section RHQ Cash and Bank Section

MANUAL ON CASH AND BANK

32

Process : Remittances to various units Process brief

Process No.: 12

This Process lays down the procedure to be followed at CC for remittances of funds to the various units. This activity shall be carried out by the Cash and Bank Section at CC, based on the request for funds received from the units. All units are required to forward a weekly request (separately for Construction and Operations activities) for funds to the Treasury section. Based on the request, the Cash and Bank Section shall remit the funds to the respective units in installments spread over the next week. While discharging this function, it is to be ensured that:

Funds are sent to the units in a manner that there are minimal idle funds at the units Funds released to the units are within the approved budget for the respective units Funds remitted to the units are to be monitored separately for the construction and operation phases

Procedure: Remittance of funds to units S. No Activity Responsibility Cash and 1 Send a request for funds, giving the Bank-Unit following details: control serial no (of the request) cash and bank balance in hand bills received, approved but pending for payments bills received, pending approvals bills expected salary and other payments cumulative balance of funds received for the year to date Receive the request and enter the amount Cash and Bank Section, CC requested in the system to update the Funds requisitioned Register. Cash and Bank Check that the request for funds is Section, CC duly approved contains the details for the funds requested within the approved budget for the unit Frequency Weekly (by Friday) Remarks

Within a day

(The system should provide the information on the funds released against the approved budget to

MANUAL ON CASH AND BANK

33

S. No

3 4 5

Activity In case the amount requested exceeds the budgeted amount (in case of new/unapproved projects and projects under construction/renovation and modernisation), refer to the Budget Group and release funds after obtaining their approval/necessary provision in the budget. Analyse the request for funds and schedule the transfer of funds to the various units during the week. Review and approve the total funds to be transferred in the day. Generate a BPV in respect of the funds transferred and an instruction to the bank for TT of funds. Send an intimation of the amount remitted to the concerned unit. Follow the procedure for approval and updation of BPV and for sending of inter unit advices.

Responsibility

Frequency

Remarks facilitate the budget monitoring by CC)

Cash and Bank Section, CC Cash and Bank Section, CC Cash and Bank Section, CC

Same day Same day Same day Bank charges on transfer of funds to sites to be retained at CC.

The Funds requisitioned register and the Remittance register to be automatically updated based on the BPV prepared. Same day Receive the intimation of transfer of Cash and Bank Section funds from CC and ensure that the credits Concerned have been received for the same in time. unitGenerate a BRV to account for the fund received and update the Funds requisitioned register. Remittances in- transit At the period Cash and Prepare a JV to account for the remittances in-transit based on the Bank Section end/year-end Unit intimation received from CC for the funds transferred by CC but not credited in the unit bank account. The entry to be adjusted after verifying the bank statement for credits received.

MANUAL ON CASH AND BANK

34

Document Records Document Title Request for funds Funds Requisitioned Register Daily Remittance Register Remittance Register (Unit wise) BPV Request to Bank for remittance of funds Document Type I R R R O O Format Ref. CB/26 CB/27 CB/28 CB/29 CB/01 CB/30 Frequency Weekly Daily Daily Daily As and when As and when Bank Distribution To Cash and Bank CC -

MANUAL ON CASH AND BANK

35

Process : Accounting for Dishonoured cheques Process brief

Process No.: 13

This Process lays down the procedure to be followed in accounting for dishonoured cheques. On receipt of intimation from bank about dishonour of a cheque, the concerned employee/party account should be debited immediately. The employee/party should be advised to make payment by demand draft. Departments/sections involved in the process Finance and Accounts Department Cash and Bank Section Concerned Section

Procedure: Accounting for dishonoured cheques S. No. 1 Activity Responsibility Receive an intimation of the cheque Cash and Bank Section dishonoured from the bank along with the cheque and the reasons thereof. Forward the cheque to the concerned section in the F&A Department Generate a BPV (not for payment) reversing the entry. Concerned section Frequency Remarks As and As the number of When dishonoured cheques is not significant a separate register is not considered necessary. However, the system should have a provision of generating a list of cheques dishonoured during a period Same day

Forward a copy of the cheque returned to the concerned party/employee with a request to issue a demand draft (for the dishonoured cheque amount and the bank charges)

Concerned section

In case of any delays in receiving the demand draft, take the necessary followup action. Generate a statement of the cheques Cash and Bank Section dishonoured during the period and review the same

Monthly

MANUAL ON CASH AND BANK

36

Document - Records Document Title Bank Statement BPV Statement of cheques dishonoured Document Type I I/O R Format Ref. CB/01 CB/MIR/11 Frequency Daily As and when Monthly Distribution To Book section Cash and Bank Section Cash and Bank Section

MANUAL ON CASH AND BANK

37

Process: Bank Reconciliation Statement Process brief

Process No.: 14

This Process lays down the procedure for preparation of bank reconciliation statement (BRS). BRS shall be prepared monthly for all bank accounts and it should be put up for review of HOD (F) by the 7th of the following month. Departments/sections involved in the process Finance and Accounts Department Book Section

Key controls to be exercised in this process are: BRS should be prepared monthly for all the bank accounts All cheques issued but not presented for six months should be transferred to the stale cheques account Issue of fresh cheque against a stale cheque should be approved by the Section-in-charge

Procedure : Bank Reconciliation Statement S. No. 1 Activity Obtain bank statement from the bank Responsibility Book Section Remarks Soft copy to be obtained from the bank at the month end. By the 7th of BRS should be the next prepared through the month system. In case the bank branch has been computerised, a soft copy of the bank statement should be obtained from the bank. Frequency Daily/ Monthly

Prepare the Bank Reconciliation Statement (BRS) and tally the balance as per the bank statement with the bank book. The BRS would following items:

Book Section

consist of the

Cheques issued but not presented for payments Cheques deposited but not cleared by the bank till date Items directly debited/credited by the bank but advice yet to be received/accounted for

MANUAL ON CASH AND BANK

38

S. No.

Activity Responsibility Check the following: Direct debits for bank charges relate to NTPC and are as per the agreed rates Interest charged if any is correct Review the cheques issued but not presented for a period of more than 6 months. Prepare a BRV to transfer the cheques to stale cheques account in case the payment is other than an advance payment. (A sub-ledger would be maintained in the system). In case the cheque is towards payment of an advance to an employee or to a party, forward details of the unpaid cheques to the concerned section in the F&A Deptt necessary action (say reversal of the advance entry). Review and approve the BRS. Approve the BRV for stale cheques. Put up the BRS to the HOD (F) for his review. Retain a copy of the approved BRS in a file. Take appropriate actions to clear the outstanding transactions in the BRS:

Frequency

Remarks

Book Section

Same day

Cash and Bank/Book Section

During month

the

Obtain pending bank advices Follow up with the bank to clear any long outstanding entry Follow up with the concerned section for any long outstanding entry

Ensure appropriate actions are being taken to clear the outstanding entries.

MANUAL ON CASH AND BANK

39

Document - Records Document Title Bank Statement BRS Document Type I O Format Ref. CB/31 Frequency Daily and Month end Month end Distribution To Book Section -

MANUAL ON CASH AND BANK

40

Process: Deposit of TDS Process brief

Process No.: 15

This Process lays down the procedure for deposit of TDS with the appropriate authorities. Departments/sections involved in the process Finance and Accounts Department Cash and Bank Section Works Bill Section Stores Bill Section O&M and Misc. Bills Section

The Cash and Bank Section should ensure the following TDS is deposited within the time frame stipulated by the relevant statute Receipted copy of the challan is obtained and forwarded to the section concerned for filing of return/ records

Procedure : Deposit of TDS S. No. 1 Activity Receive the BPV for deposit of TDS from the concerned section along with the duly completed and authorized challan Update the BPV and generate a cheque for payment of the TDS to the RBI/Treasury (as applicable) Deposit the challan and the cheque with the RBI/Treasury Responsibility Cash and Bank Section Cash and Bank Section Frequency As and when Remarks

2 3

Same day

Cash and Bank By the due Section date for deposit of the TDS Obtain the receipted copy of the challan Cash and Bank As and when Section deposited from the RBI/Treasury. Forward the receipted challan to the concerned section and obtain an acknowledgment of the same.

MANUAL ON CASH AND BANK

41

Document - Records Document Title BPV Challan for deposit of TDS Document Type I I Format Ref. CB/01 Frequency As and when As and when Distribution To Concerned Section

MANUAL ON CASH AND BANK

42

Process: Physical verification of cash and cash equivalents Process brief

Process No.: 16

This process lays down the procedure for physical verification of the cash balance in hand including revenue stamps. The cash and cash equivalents should be physically verified and tallied daily by the cashier An official (other than from the Cash and Bank Section) designated by the HOD (Finance) should also verify the cash balance periodically (at random at least once in a month) Mutilated/spoilt currency should be replaced from the bank periodically Procedure : Physical verification of cash and cash equivalents S. No. 1 Activity Responsibility Frequency Remarks Cash in hand Daily on close Tally sheet to Cashier Physically count the cash in hand and be maintained of cash agree the amount with the balance as per in the system the cash book Surprise Nominated check at least Record the cash in hand in the tally person from once a month. any section register other than Cash and Bank Section On Cash and Sign the tally register and record that the verification cash was physically verified and found Bank Section I/C to be in accordance with the cash book balance. Stamps in hand Cashier Daily on close Physically count the revenue stamps and of cash agree with the balance as per the cash register Immediately Cash and Sign the cash tally register and record that the balances were physically Bank Section (I/C) verified and found to be in accordance with the balance as per the books In case of Franking machines, tally the Books Section balance, receive certificate from the despatch section w.r.t. the amount expended and the balance in hand Shortages during verification Period end/ Year end

3 4

MANUAL ON CASH AND BANK

43

S. No. 5

Activity Responsibility Shortages, if any, observed during Cash and Bank Section physical verification should be intimated to the HOD (F) Generate a JV for the shortage The balance in the shortage account to be written off after obtaining the necessary approvals as per IWA

Frequency As and when

Remarks

Same day Period/Yearend

Document Records Document Title Cash book Cash Tally Register Document Type O R Format Ref. CB/08 CB/32 Frequency Daily Daily Distribution To Cash and Bank Section

MANUAL ON CASH AND BANK

44

Process: Custody and issue of cheque books and pre-printed stationery Process brief

Process No.: 17

This process lays down the procedure for receipt, custody and issue of cheque stationery (including cheque books and MICR computerised stationery including that with pre-printed signatures). NTPC uses cheque books (for hand-written cheques) and computerised stationery (for computer generated cheques). At CC, cheque stationery with pre-printed signatures is used for payment of lease rent, interest warrants for Power Bonds etc. While discharging this function, the Cash and Bank Section should ensure the following: The cheque stationery that has not been issued is kept in a cash chest and handled by the cashier and the I/C Cash and Bank Section. The stocks are physically verified at the month-end. Cheque stationery issued but unused at the end of the day is kept in the cash chest. Such unused cheque stationery is physically verified daily. All cheque stationery drawn from the bank is entered in the stationery register. Section I/C daily conducts checks in respect of the safe keeping and records of unused cheque books. The cheque stationery is kept in a place of security under lock and key. It is periodically verified whether all unused forms are intact and promptly intimate to the bank the loss, if any, of the unused cheque forms/ cheques requisition slip The cheques contained in the cheque book are counted before the issue/use of the cheque books. At the time of closure or transfer of bank account all unused cheques and cheque book requisition forms are always returned to the bank after defacing them as CANCELLED and VOID. No blank cheques from the cheque books are given to anyone. All alterations on the cheque are confirmed by the full signature of the drawer. Indelible ink/reverse carbon are used to prevent unauthorized alterations The amount printed on the cheque to be protected by pasting a slip of cellophane paper on the face of the cheque

Procedure: Custody and issue of cheque books, computerised stationary and pre-printed and presigned stationery S. No. 1 Activity Responsibility Frequency Cash and As and when Prepare a request to the bank for issue of the stationery (based on a review of the Bank Section average usage of the stationery) and forward to the respective banks after obtaining due approvals Receive the stationery from the bank Cash and Bank As and when Section Ensure that the stationery received are Cash and Bank Same day pre-numbered and in serial order Section Enter the details of stationery received Cash and Bank Immediately Remarks

2 3 4

MANUAL ON CASH AND BANK

45

S. No. 5 6

Activity Responsibility in the system to update the stationery Section received register (maintained bank wise) Verify and authorise the entry in the Cash and Bank system I/C Receive a request for the stationery and Cash and Bank Section issue the same to the cheque preparing section/official. Enter the details of the above issue in the system to update the stationery register Intimate the bank the cheque book/batch of MICR cheque stationery being put to use Receive the stationery issued but unused Cash and Bank Section at the end of the day Check (from the system) the last number of the stationary used against those issued in the day and ensure that all the cheque leaves unused have been received. and Physically verify the stock of the Cash stationery with the balance as per the Bank Section register

Frequency Immediately As and when

Remarks

Intimation letter to be generated by the system. Daily

Month end

Document Records Document Title Stationery Register Document Type R Format Ref CB/33 Frequency As and when Distribution To Cash and Bank Section

MANUAL ON CASH AND BANK

46

LIST OF MIR AND REFERENCE

Document Title List of un-updated vouchers Statement of Bank Advices Unaccounted for List of cash payment vouchers pending payments Statement of closing cash balance in hand Statement of cheques/ draft pending deposit in the bank for more than a day Statement of cheques/ draft pending realisation for more than 3 days Statement of foreign currency payments released employees Statement of foreign currency payments released other than employees LC Limit Utilisation Report Statement of delays in credit of funds Statement of cheques dishonoured Format Ref CB/MIR/01 CB/MIR/02 CB/MIR/03 CB/MIR/04 CB/MIR/05 CB/MIR/06 CB/MIR/07 CB/MIR/08 CB/MIR/09 CB/MIR/10 CB/MIR/11

MANUAL ON CASH AND BANK

47

CB/MIR/01 LIST OF UNUPDATED VOUCHERS As on ----------Section code No Section Voucher Date Amount Particulars Party/ Employee Name Code Account code Remarks

Name System Administrator Distribution: In charge Concerned Sections

Employee No

Signature

MANUAL ON CASH AND BANK

48

CB/MIR/02 STATEMENT OF BANK ADVICES UNACCOUNTED FOR As on ---------------------Sl. No No Date Bank Advice Particulars Amount Debit Credit Section code Date of sending the advice Reasons for delays in accounting Remarks

Name Prepared by (Books Section)

Employee No

Signature

Reviewed by (In charge Concerned Section/ HOD(F)

MANUAL ON CASH AND BANK

49

CB/MIR/03 LIST OF CASH PAYMENT VOUCHERS PENDING PAYMENTS As on --------------------Sl. No Section Code No Date Employee Name Voucher Particulars No Amount (Rs)

Nature of payments

Total Name Prepared By (Cashier) Reviewed By (Incharge Cash and Bank Section/Finance Establishment) Employee No Signature

MANUAL ON CASH AND BANK

50

CB/MIR/04 STATEMENT OF CLOSING BALANCECASH IN HAND For the period ---------------Date Closing cash balance in hand (Rs) Insurance Limit (Rs) Cash balance in excess of insurance limit (Rs) Remarks

Name Prepared by (Cashier)

Employee No

Signature

Reviewed by (Incharge Cash and Bank Section/HOD (F)

MANUAL ON CASH AND BANK

51

CB/ MIR/05 STATEMENT OF CHEQUES/DRAFTS PENDING DEPOSIT IN THE BANK FOR MORE THAN A DAY As on -----------------------------S. No No Date Money Receipt Party/ Employee Name Cheque Date Deposited on Delays in deposit (no of days) Remarks

Amount (Rs)

No

Total Name Prepared By Authorised by Note: The reasons for delays in deposit should be specified in the Remarks column Employee No Signature

MANUAL ON CASH AND BANK

52

CB/ MIR/06 STATEMENT OF CHEQUES/DRAFTS PENDING REALISATION FOR MORE THAN 3 DAYS As on -----------------------------S. No No Date Cheque/ Draft Party/ Employee Name Deposit Amount (Rs) Date Bank Date of credit from bank Delays in credit (no of days) Remarks

Total Name Prepared By Authorised by Note: The reasons for delays in credit as enquired from the concerned bank should be specified in the Remarks column Employee No Signature

MANUAL ON CASH AND BANK

53

CB/ MIR/07 STATEMENT OF FOREIGN CURRENCY RELEASED - EMPLOYEES For the quarter ended ----------S. No No PI Date Employee Name Unit/ Section Amount FCY INR Place Particulars of trip No of days Purpose Details of Registration fee/Training fees Remarks

Name Prepared By Authorised by

Employee No

Signature

MANUAL ON CASH AND BANK

54

CB/ MIR/08 STATEMENT OF FOREIGN CURRENCY RELEASED OTHER THAN EMPLOYEES For the quarter ended ----------Unit -------------------Remarks S. No PAS Party Name Particulars of Amount payment FCY INR No Date

Name Prepared By Authorised by

Employee No

Signature

MANUAL ON CASH AND BANK

55

CB/MIR/09 LC LIMIT UTILISATION REPORT Month ending ---------------------Sl. No Bank Sanctioned LC Limit (Rs) Utilised Released Remarks Available

Total Name Prepared by Reviewed by-Incharge Concerned Section/ HOD(F) Note : AT CC this report would have an additional column of the LC allocated to projects Employee No Signature

MANUAL ON CASH AND BANK

56

CB/MIR/10 STATEMENT OF DELAYS IN CREDIT OF FUNDS For the month ended---------------------------Sl. No Date of Details of Collection Intimation from Bank SEB Date Collection Centre Date of credit from bank at Delhi Delays receiving credit (days) in Remarks (follow up action taken)

Amount (Rs)

Name Prepared by

Employee No

Signature

Reviewed by (In charge Cash and Bank Section)

MANUAL ON CASH AND BANK

57

CB/MIR/11 STATEMENT OF CHEQUES DISHONOURED As on -----------------Sl. No Date Party/ Employee Name Code Dishonoured cheque No Date Amount (Rs) Reasons Section Code No Reversal BPV Date Amount (Rs)

Name Prepared by Reviewed by (In charge Concerned Section)

Employee No

Signature

MANUAL ON CASH AND BANK

58

MIS REPORTS TO BE GENERATED BY THE TREASURY SECTION FOR THE COMPANY CB/MIR/12 STATEMENT OF DAILY FUNDS POSITION As on PARTICULARS OPENING BALANCE RECEIPTS - Sale of Energy - Receipts on account of Loan - Other receipts TOTAL RECEIPTS REMITTANCES/ PAYMENTS - Construction - Operation - LC Debits - Debt servicing - CC Expenses - Others TOTAL PAYMENTS/ REMITTANCES CLOSING BALANCE Expected realisation for next 2 days Remittances expected for next 2 days - Construction - O&M - Others Name Employee No Prepared by Authorised by Amount (Rs) Amount (Rs)

Signature

MANUAL ON CASH AND BANK

60

CB/MIR/13 FUNDS FLOW STATEMENT For the period Particulars Opening Balance (cash and bank balances) as on Receipts Sale of energy Sale of Investments Receipts on account of PDS/ Bonds Receipt of loan Other receipts (details to be provided in respect of each of the above) Remittances/Payments Construction activities Operation & Maintenance CC expenses Repayment of Loan/Interest LC debits Other payments (details to be provided in respect of each of the above) Closing Balance (cash and bank balances) as on Surplus/ Deficit Funds position Remarks : Name Prepared by Authorised by Employee No Signature Amount (Rs)

MANUAL ON CASH AND BANK

61

CB/MIR/14 Particulars CASH FLOW PROJECTIONS FOR THE MONTH OF Actual for Projected for Budget for the month previous previous 1st 2nd 3rd 4th month month week week week week

Total

Opening Balance Inflows Operational Sale of Energy Non-operational Sale of Investments Receipts on account of PDS/ Bonds Receipt of loan Other receipts Outflows Operational Construction activities Operational activities fuel, employee related expenses Closing Balance Name Prepared by Authorised by

Employee No

Signature

MANUAL ON CASH AND BANK

62