As Is Document.docx

MBH POWER-AS IS DOCUMENT 1.1

Group Companies

The main companies in the Groups are as follows :

1.4.1

(MBH– India1000) Power limted

MBH is the flag ship company doing business of Iron Ore mining in Goa. VMSB has 14 leases across three mines in Goa at Velguem, Sigao, and Sacordem. It has Three Divisions Shipping, Mumbai & Delhi. It owns Transhipper vessel M.V.Vishal Hira which is used for Loading its cargo.

1.4.2

(GMPL -1100) Goa Minerals Pvt. Ltd.,

GMPL is a Private Limited Company incorporated under the Companies Act 1956 on 21-12-1982. It operates at Cudnem mine as Ore Raising Contractor for KRG

1.4.3

(VMSI -1200) VM Salgaocar Sales International.

VMSSI is a Partnership firm registered under partnership Act on 25.10.1991. The partnership firm is engaged in Trading of Iron ore. The Firms owns two Barges M.V. Vishal Ranjit & M.V. Vishal Yeshwardhan which are used for transportation of own and third party cargo.

1.4.4

(SVSI -1300) S V Salgaocar

S. V. Salgaocar is an Individual. He owns Barge M.V. Vishal Swati 1.4.5

(SVSH –1400) S V Salgoacar HUF

S. V. Salgaocar ( HUF ) is Hindu undivided family it has two Barges M.V. Vishal Niharika & M.V. Vishal Ranjana.

1.4.6

(TMPL – 1500) Tumkur Minarals Pvt Ltd

TMPL is a Private Limited Company incorporated under the Companies Act 1956 on 13.12.2004. It has mining lease at Sondenahalli Village C.N Halli Taluka. Tumkur Karnataka.

AS IS Document

1.4.7

(MREL -2000) Mahadhan Real Estate LLP

Mahadhan Real Estates LLP., (erstwhile Mahadhan Real Estates Pvt. Ltd.,) is a Limited Liability Partnership Firm bearing LLP identity No. AAB-2159, registered under Limited Liability Partnership Act, 2008 on 15th November, 2012. Its main businesses are Construction, development, & improvement of land and/or building and Renting of buildings.

Castle Rock Tourist Resort Pvt. Ltd.is a Private Limited Company incorporated under the Companies Act 1956 on 1st September 1983. 1.4.23

(KUSH -4150) Kushavati Mining Pvt. Ltd.

Kushavati Mining Pvt. Ltd. Ltd is a Private Limited Company incorporated under the Companies Act 1956 on 5th September 1991. 1.4.24

(AMIF -4160) Amona Infrastructure Pvt. Ltd.

Amona Infrastructure Pvt. Ltd. is a Private Limited Company incorporated under the Companies Act 1956 on 24th April 2008. It has investment in Land property 1.4.25

(SMET – 4170) Salgaocar Metals & Minerals Pvt. Ltd.

Salgaocar Metals & Minerals Pvt. Ltd. is a Private Limited Company incorporated under the Companies Act 1956 on 7th May 1993. 1.4.26

(ZNTY -4180) Zantye & Company Pvt. Ltd

Zantye & Company Pvt. Ltd is a Private Limited Company incorporated under the Companies Act 1956 on 14th May 1964. The company has Mining Lease in Sarvona Bicholim Goa. Presently there are no activities carried out. 1.4.27

(SSCB -4190) Salgaocar Sports Club

Salgaocar Sports Club is a Private Limited Company domiciled and incorporated in india under the Companies Act, 1956. Registered under section 8 of the Companies Act, 2013. The registered office of the company is located at Salgaocar House, F L Gomes Road, Vasco Da Gama, Goa. It is engaged in the business of promotion of sports.

1.4.28

(SMIN – 4200) Salgaocar Minerals & Ores Pvt. Ltd.

Salgaocar Minerals & Ores Pvt. Ltd is a Private Limited Company incorporated under the Companies Act 1956 on 7th May 1993. Confidential

Page 2 of 37

AS IS Document

2

MASTER DATA

2.1 List of Master Data Presently the business uses the following master data: o GL Master o Cost Center Master o Asset Class Master o Transaction Code Master o Tax Masters o Customer Master o Vendor Master 3

3.1    

GL ACCOUNTING PROCESS

Accounting Process Summary

Indian Accounting Standards (Ind. AS) is applicable to majority of companies in a Group. Company follows April to March as its accounting year. Books of Accounts are maintained for the 12 months period from April to March every year. Transactions are posted in GL accounts, the following logic is used to classify the GL Accounts: 1 = Assets 3 = Liability 6 = Expenditure 7 = Revenue 3.2

 

Books of accounts are maintained in Indian Rupee (INR). Company also deals in USD , Euro, Yen etc for Exports , Imports and for expenses however accounting is done in Indian Rupees.

3.5   

CURRENCY

ACCOUNTING STRUCTURE

Accounts are maintained in Oracle based software. Day to day transactions are recorded in journals. Separate journals are maintained as follows :

Confidential

Page 3 of 37

AS IS Document o o o o o o o o o o o o o o o o o o

3.6

Cash Books Bank Books Iron Ore Purchases Register Truck Freight Register TDS register General Journal Expense Journal Credit Note Register (Purchases ) Civil Contractors Bill Register (Sales) Credit Note Register (Sales) Imprest Cash Journal Stores & Spares Purchases Register Iron Ore Sales Register Miscellaneous Sales Register Fixed Assets Register General Ledger Subsidiary Ledger

Transaction Codes ( Document Types)

TR. CODE

DESCRIPTION

001

CASH RECEIPTS

002

CASH PAYMENTS

003

BANK OF INDIA, VASCO -CURRENT A/C NO. 3 - RCPT

004

BANK OF INDIA, VASCO -CURRENT A/C NO. 3 - PYMT

223

CASH RECEIPTS

224

CASH PAYMENTS

225

PACKING CREDIT LOAN - BOI , VASCO - WITHDRAWLS

226

PACKING CREDIT LOAN - BOI , VASCO - REPAYMENTS

273

BANK OF INDIA, VASCO - CC 565 - RCPT

274

BANK OF INDIA, VASCO - CC 565 - PYMT

300

IRON ORE PURCHASES

301

TRUCK FREIGHT (CONTRACTORS)

302

T. D. S.

309

PURCHASES OTHERS

310

GENERAL JOURNAL

311

EXPENSE JOURNAL

312

DEBIT NOTE REGISTER ( PURCHASE SECTION)

313

CREDIT NOTE REGISTER (PURCHASE SECTION)

314

CIVIL CONTRACTORS

319

CREDIT NOTE SUPPLY OF GOODS & SERVICES NON TAXABL

322

CREDIT NOTE REGISTER (SALES SECTION)

323

CREDIT NOTE - SALES WIND MILL DIVISION

Confidential

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AS IS Document 324

DEBIT NOTE REGISTER (SALES SECTION)

325

IMPREST CASH JOURNAL

326

CREDIT NOTES - SALE OF GOODS

327

CREDIT NOTE SUPPLY OF SERVICES

328

TAX INVOICE - SUPPLY OF SERVICES

330

SALES OTHERS

340

STORES PURCHASES

350

IRON ORE SALES

351

IRON ORE SALE - EXPORT/LOCAL

353

WIND POWER ENERGY SALES

354

BILLS

355

MISCELLENEOUS SALES

356

MISCELLENEOUS SALES

358

MISCELLANEOUS SALES - TAX INVOICE - SALE OF GOODS

359

BILL OF SUPPLY-SALE OF NON VATABLE GOODS & SERVICE

366

MISCELLANEOUS SALES

3.7

Sl. No. 1 2 3 4 5 6

Accounts Payable Groupings and Number Ranges Sub Code(A From No. Description /c. Gp) Range Sundry Creditors – Control A/c 3511 0001 Sundry Creditors – Outside Goa 3512 0001 Control A/c Extraction & Civil Engg. 3513 0001 Contractors – Control A/c Truck Contractors – Control A/c 3514 0001 Sundry Creditors - Players 3521 1001 Accounts Payable Unbilled – 3516 Trade Payable

To No. Range 9999 9999 9999 9999 9999

3.8 Accounts Receivable Grouping and Number Ranges Sl. Description Sub From No. To No. Range N Code Range o (A/c. . Gp) 1 Sundry Debtors – Control A/c 1401 0001 9999 3.9 Sl. No 1 2 3 4 5

Fixed Asset GL Description Land Buildings Tippers & Dumpers Plant & Machinery Furniture & Fittings

Confidential

Acct. Code 1101 1102 1103 1104 1105 Page 5 of 37

AS IS Document 6 7 8 9 10 11 12 13 14 15

Vehicles Other Equipments Bridges, Roads, & Jetties Barges, Lcts& Launches M. V. Vishal Hira Electrical Equipments Boats / Ships Lease Hold Land & Buildings Goodwill Mining Rights

1108 1109 1110 1111 1112 1115 1116 1117 1118 1119

3.10 Job Code for Capital Work in Progress For every new job a job code is opened under 1121 Account code the following are some of the Job codes for capital work in progress. Sl. No 1 2 3

Description Construction of residential building near cine elmonte Wheel washing system Development of mobile android application

3.11 Sl. No 1 2 3 4 5 6

Sl. No 1 2 3 4 5 6

Acct. Code 710101 710201 720101 720201 720401 730101

Accounting Entries in VMSB Books

Sr. No Particulars 1. Expense A/c Dr To Cash A/c

Confidential

Acct. Code 643101 643102 643103 645201 620100 631300

Income Codes

Description Sale of Iron ore Exports Sale of Iron ore Local Truck Hire Receipts Machinery Hire Receipts Barge Hire Receipts Dividend Income – Long Term Investment

3.13

11212018 11212019

Expenses Codes

Description Heavy machinery hire charges Excavation & hire charges Other machinery hire charges Repairs & maintenance - Plant & machinery Salaries Royalties

3.12

Acct. Code 11210536

Debit XXX

Credit XXX

Description Expense posting entry for Cash payments

Page 6 of 37

AS IS Document 2.

3.

4.

5.

6.

7.

8.

Expense A/c Dr To HDFC Bank Ltd A/c

XXX

Expense A/c Dr To Sundry Creditor A/c

XXX

Sundry Debtor A/c Dr To Sale of Iron Ore Exports

XXX

Investment in Mutual Fund A/c To Dividend Income-Short Term Investment

XXX

Inventory A/c To Sundry Creditor A/c

XXX

Consumption A/c To Inventory A/c

XXX

Truck Freight A/c

XXX

Various Truck parties A/c

XXX

Expense posting entry for Bill Booking Export sales posting entry

Re-investment of Dividend XXX

Income on Mutual Funds

Purchase of stores items XXX Consumption of Stores XXX

XXX

Entry to record Truck Freight Earnings

XXX

Entry to record Sale of HSD To Truck contractors

XXX

To Sale of fuel & Oil A/c

4

Expense posting entry for Bank payments

XXX

To Various Truck parties A/c 8.

XXX

Gross

ACCOUNTS PAYABLE PROCESS

4.1

TRANSACTION CODES FOR BOOKING EXPENSES:

 Following are some of the transaction codes for booking expenses. 300

IRON ORE PURCHASES

301

TRUCK FREIGHT (CONTRACTORS)

310

GENERAL JOURNAL

311

EXPENSE JOURNAL

314

CIVIL CONTRACTORS

002

CASH PAYMENTS

004

BANK OF INDIA, VASCO

034

SYNDICATE BANK VASCO

Confidential

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AS IS Document 060

HDFC BANK, VASCO

4.2              

Royalty Calculation and Payment Process

VMSB has mining leases at Velguem, Sigao and Sacordem. Presently only velguem Mine is operational. Payment of Royalty & Contribution to funds has to be made before transportation of Iron ore from Leases. Mining department gives estimated quantity, type of ore & grade to be transported to Export Department. Based on the request of Mining Department Export Department calculates the royalty & other contributions payable to funds. Royalty is calculated based on the latest IBM sale value available. Generally the IBM rates are published after 2-3 months. After making calculation as above the export Department raises the requisition for payment which is approved by CMD. On receipt of requisition from Export Dept. the payments are processed by accounts department. After the payments are processed Export Department writes a letter to DMG for obtaining Royalty & Transit permit challan. Application to issue Transit permit is made to DMG. On receipt of Transit permit it is associated with weighbridge. Transportation of ore will commence against the transit permit. Each truck will be issued trip sheets. Details of transportation of ore showing actual quantity, type of ore & grade is received by export department. Once the actual quantity, grade and IBM sale value of a particular month are available the reconciliation of royalty is done. Difference if any towards Royalty or contribution to funds is paid or adjusted as the case may be.

 Attached herewith the Royalty Calculation in Excel:

Royalty.xlsx

4.3 Sl. No 1.

Accounting Entries for Royalty

Particulars Party A/c Dr To Bank A/c

Confidential

Debit

Credit

XXX

Description Entry for Advance payment

XXX Page 8 of 37

AS IS Document

2.

3.

Royalty A/c Dr To Party A/c

XXX

Party A/c Dr

XXX

XXX

To Bank A/c 4.

5.

XXX

Party A/c Dr

XXX

XXX

To Royalty A/c

       

     

differential

XXX

Expense posting entry on Receipt of Royalty challan Entry for reversal of Expense In case of Excess royalty payment

Procurement Process - Stores

Under Transaction code – 340 stores bills are accounted Duly approved Purchase Order is received from the Materials Dept. Bills along with the GRN’s after due certification are received for payment with Bill forwarding memo reference Number written on the bills. Invoices & GRN’s are verified with the Purchase Order. Invoices are accounted in the FAS against the Bill forwarding memo reference number. By Debiting Stores A/c & Crediting party A/c. Remittance is prepared after Invoice is accounted & sent to Cash section for drawing cheques/NEFT/RTGS/Bank transfer/Net Banking. Payments of stores are generally processed in a Batch once in a month. At the close of the Month the Stores account is reconciled with inventory. 4.5



Entry for payment XXX

Royalty A/c Dr To Party A/c

4.4

Expense posting entry on Receipt of Royalty challan

Procurement of Capital Asset / Other Expenses

Invoices sent by the respective Departments are verified against Contract / Work Order/Purchase Order as the case may be. In some cases the bills are without work orders. In all the cases approvals for payments are checked. Under Transaction code – 314 Civil Jobs bills are accounted. Under Transaction code – 311 Expense bills are accounted Under Transaction code - 310 Journal Vouchers are accounted. Invoices are accounted in FAS against the Bill Forwarding Memo reference. TDS as applicable are deducted while accounting the Invoices. TDS amount is picked in the TDS register automatically after the PV is confirmed. Advances if any given are adjusted in Advance adjustment screen

Confidential

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AS IS Document 



Bank Remittance is prepared after confirming PV where in the TDS & other recoveries like P. F., LBWF, Retention (if any) are made. Thereafter the remittance is sent to Cash section for drawing payment. Payment documents are confirmed by the Cash Section. 4.6 Contracts:



 

   

without

Purchase

Order/Work

Order/Rate

Invoices sent by the respective Departments with due certification/approval are accounted in the FAS by debiting Expense & crediting party account. TDS if applicable is deducted at the time of confirming the PV. This is picked up in the TDS register automatically. In some cases where there are no frequent transactions with party and where the TDS is not required to be deducted the said bills are processed directly as Bank payment. Remittance is prepared after Invoice is accounted & sent to Payment section for drawing payment. 4.7



Invoices

TDS REGISTER:

Entries in the TDS register are automatically captured from PV or Bank remittance Screen and in case of TMS from JV screen. For Mumbai & Delhi division the entries are manually entered. TDS register is processed at the end of the month. After processing the TDS register JV is created by Debiting Party’s account & crediting respective TDS Payable account. The TDS remittance is generated, and payment is made through net banking.

4.8

Vendor Advance Payment and TDS

The TDS process in the SAP system can be divided into the following steps: 

Down Payment



Invoice Receipt



Down payment clearing



Provisions at period end



Reversal of provisions on first day of next month



WHT Receipt print



TDS will be deducted at source at the time of payment or Invoice whichever is first. The following e.g. is used to explain the various scenarios:



Advance / Down Payment:

Confidential

Page 10 of 37

AS IS Document At the time of Advance / down payment the total amount of payment inclusive of TDS payable debits the vendor accounts. A sample accounting entry follows:

GL Accounts

Debit / Credit

BS / PL

Amount

Vendor A/c (Advance to suppliers With sp GL)

Debit

B/S

XXX

TDS Payable

Credit

B/S

XXX

Bank Outgoing A/c

Credit

B/S

XXX

5

CASH MANAGEMENT PROCESS

5.1 

CASH TRANSACTION:

Working timing of Cash Counter : o Monday to Friday : o Saturday :

     

10.30 am to 12.30 pm 10.30 am to 12 pm

We have one main cashier, Four travelling cashiers & Twenty Eight Imprest Holders. Travelling cashiers are used for withdrawing cash from Bank, Disbursement of payments at mines & also as a replacement in absence of main cashier. Cash of 36 companies are maintained in cash section. Minimum balance for VMSB is Rs 1,00,000/-, and for other group companies, the balance is maintained as per the individual companies requirements. The cash withdrawal is done as per cash requirement. There is no frequency for cash withdrawal. The cash withdrawal date is informed to all concerned sections, accordingly selves cheques are drawn by respect sections and given to main cashier, Main Cashier enter all selves cheques on register & put up for signature of authorized signatories. After obtaining Signature, Travelling Cashier withdraws cash from Bank.

5.2

CASH RECEIPTS   

Confidential

Cash withdrawal from Bank Agricultural income, Rental Income Refund of Imprest Fund/ Advances taken by Staff/officer

Page 11 of 37

AS IS Document 5.3

CASH PAYMENTS : 

Cash Remittances for payment are received from different sections



Most of the cash payments are Imprest reimbursement, Reimbursement of Expenses to staffs, staff advance, ROC filing Fees, house tax, RTO payment etc. Maximum cash payment limit is Rs. 10,000/- per person per day. After making Cash payment the Vouchers are confirmed by main cashier in FAS system.

 

5.4

MINES PAYMENT:   



5.5

Travelling cashier goes to mines location in the second week of every month. Cashier carries cash to be disburse along with Cash Remittance Advices & Cash Receipt copies. Cash along with Cash Remittance advices & Cash Receipt copies are given to Mines cashier of each location.

Following are the Locations of mines disbursement.  Beneficiation Plant.  Vagus Establishment  Soddo Weighbridge  Velguem Surla Mine  Surla Office  Cudnem Mine CASH COUNTING:

Cash counting is done on first day of each month before making any cash transaction. Surprised cash counting is also done as and when required. 5.6 DAILY REPORT: Cash Balance summary & Cash scroll of all companies is prepared every day.

6

BANK ACCOUTING PROCESS

6.1

BANK ACCOUNTS:  Sixteen Current Accounts  Four Exchange Earners Foreign Currency (EEFC) Accounts.  No Overdraft and Loan Account.

Confidential

Page 12 of 37

AS IS Document 6.2

LIST OF OPERATING CURRENT ACCOUNT      

6.3

Bank of India, Vasco Syndicate Bank, Vasco Canara Bank, Vasco HDFC Bank Ltd. Vasco State Bank of India, Vasco HDFC Bank Ltd. Tax Account

LIST OF BANK ACCOUNTS WITH NET BANKING FACILITY:  

6.4

LIST OF FOREIGN CURRENCY ACCOUNTS:    

6.5

Confidential

Bank of India,Vasco C/A No. 3 Syndicate Bank, Vasco C/A Syndicate Bank, Pale C/A Canara Bank, Vasco C/A State Bank Of India,Vasco, C/A State Bank Of India,Harbour Branch C/A HDFC Bank Ltd. Vasco Da Gama C/A

EXPORT BILLS ARE GENERALLY NEGOTIATED IN FOLLOWING BANKS:    

6.7

Bank of India, Vasco EEFC Account Syndicate Bank, Vasco EEFC Account Canara Bank Vasco EEFC Account HDFC Bank Ltd. Vasco EEFC Account

LIST OF BANK ACCOUNTS WITH ONELINE VIEWING FACILITY:       

6.6

HDFC Bank Ltd. Tax Account Bank of India. Tax Account

Bank of India, Vasco Account Syndicate Bank, Vasco Account Canara Bank Vasco Account HDFC Bank Ltd. Vasco Account

LIST OF AUTHORISED SIGNATORIES:

Page 13 of 37

AS IS Document

Sr. No.

Name of the Signatories

1. 2. 3. 4. 5. 6. 7.

6.8

Mr.Shiivanand V. Salgaocar Mr. T.G.Sundaram Mr. S. Veeraraghavan Mrs. Shilpa N. Bene Mr. Ze Lucas A. Braganca Mr. Ajay R. Borkar Mr. Jonathan F.S. Gonsalves

Singly

Jointly By Any Two

BANK RECONCILIATION  

6.9

Bank Reconciliations are done on Monthly basis. Bank Reconciliations are prepared manually.

FUND REQUIREMENT REPORT  

6.10

Fund requirement report is done on weekly basis based on information given by Each Section. Major payments are TDS, Salary, PF, Truck Payment, Royalty, NMET,DMF,GIOPF, IOC payment, Bunkering of Vishal Hira, Barge Freight, MPT & Wharfage charges, Shipping Division fund requirement DAILY REPORT



FD Balance, Mutual Fund Balance, Bank Balance summary & Bank scroll is to be submitted to HOD daily.



Bank Balance summary & Bank scroll is to be submitted to CMD daily

6.11

Confidential

Mode of Operation

EEFC ACCOUNTS (exchange earners foreign currency ) 

EEFC Accounts register is maintain in US $



Inward remittance is converted at TT Buying rate



Outward remittance is converted at TT Selling rate/spot rate

Page 14 of 37

AS IS Document 

Periodically Difference in Exchange is accounted



Re-statement is done at the end of year

6.12

FIXED DEPOSIT       



As per instruction of Finance Dept. Fixed Deposits are kept with Bank. Instruction to Bank for placement of deposits given through letter. Tenure & Rate of deposit is negotiated by Finance Dept. with banks and intimated to accounts department. Fixed Deposit report is kept in Excel Tracking of maturity date of Deposit is done Manually. TDS & Interest earned on deposits are accounted on the basis of Bank advices. TDS certificates are obtained Quarterly from Banks .

Some Fixed deposits are lien with Bank as a 100 % margin money against Bank Guarantees, Import LC

6.13

PAYMENT 

Bank remittances are received from Bill section, Pay roll Section & Investment section



Mode of payment is instructed by respective section.



Generally payments are made through cheques, DD, RTGS /NEFT or through letter ,



Net Banking facility to transact online payment of direct & indirect Taxes, PF, Custom Duty, DGFT Application & License.

Confidential



In case of VMSB Cheques are printed on Printer.



Cheques are signed jointly by any two of Authorized Signatories



Bank Payment vouchers are accounted on same day



Day end all signed cheques are sent to CMD for Approval

Page 15 of 37

AS IS Document

6.14

Cheque Delivery Report: FAS generate Cheque delivery report based on the input provided at the time of payment voucher confirmation. Same is used to dispatch cheque to various departments. 6.15

        6.16 

Receipt Mutual Fund : is accounted on redemption of Mutual Fund. Interest on Fixed Deposit : Interest Earned on deposit is accounted on date of Maturity Sale of Assets, oil Rent income Refund of staff/officer advance Barge Hire charges Export Realisation Despatch money Export Realisation Presently No export bills are discounted.

Export bill is send for collection though our Bank. It take about 15 days to realise, on realisation of Export Invoice the funds are either converted in Indian rupees or are Parked in EEFC account as per instructions of Finance Department. The realisation of export invoice is accounted on base of letter issued by finance dept. to the banker. 6.17

FOREIGN EXCHANGE TRANSACTION For all Foreign outward remittance, we give details of payment to taxation Department for obtaining 15 CA & 15 CB, Which is to be submitted to Bank along with request letter for payment Type of Foreign outward remittance are as given below        

6.18

Confidential

Demurrage Foreign Sampling Charges Purchase of spares Foreign Subscription Overdrawn export Invoice P & I insurance Import LC Freight Charges

BANK GURANTEES

Page 16 of 37

AS IS Document   

Finance Dept forwards to Cash section request letter of Bank Guarantees for Signature of Authorised person. After Verifying, the Signed letter is return back to Finance Dept Fixed deposits are lien with Bank as a 100 % margin money against Bank guarantees Cash section keep the record of Bank Guarantees in excel 6.19



  

LC PROCESS ( IMPORT & EXPORT )

The LC is used for export sales (for China Shipments) The Buyer shall open an irrevocable LC in favour of Seller after the contract is fully signed by both parties, with an International Bank to be accepted by the Seller, for an amount in US Dollars sufficient to cover value of the shipment. The said LC to remain valid for a period agreed in the contract (normally it is for 90 days), the validity can be extended further if required. Bank Charges outside LC issuing bank are for the account of the Seller(beneficiary). The said LC shall be payable by opening bank available against the Seller’s sight draft to the extent of the value of the shipment, when accompanied by the following documents

      

6.19.1 In case of provisional documents submitted to bank Seller’s Provisional Invoice Full set of Bills of Lading Certificate of weight at Load port Certificate of Analysis at Load port Certificate of Origin Certificate of shipment advice any other certificate

  

6.19.2 In case of final documents submitted to bank Seller’s Final Invoice Certificate of weight at Discharge port (CIQ) Certificate of Analysis at Discharge port (CIQ)

      

The above documents are forwarded to negotiating bank for receipt of funds. 6.19.3 PROCEDURE After signing contract with the buyer, either we receive/send from/to buyer the draft LC application for confirmation. The LC should be in line with the contract. Once the draft LC application in confirmed, buyer opens the LC. The LC opening bank advises us the LC through advising bank. The original LC is received by export dept. from finance dept. We do LC scrutiny, in case required we may ask for LC amendment. After shipment, we forward entire set of export documents including original LC to negotiating bank via finance dept. The Negotiating bank forwards the entire set of documents to LC opening/issuing bank.

Confidential

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AS IS Document 

Upon receipt of documents in compliance with the terms and conditions of the LC,



HDFC Bank Ltd., Vasco 00722000003489 Current A/c the issuing bank effect payment. In some cases, issuing bank may raise discrepancies in documents.



GL account effecting the effect the LC and Bank Charges

9.

6.20

Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

List of banks with account number

Name of Bank Bank of India, Vasco Bank of India, Vasco Bank of India, Vasco Syndicate Bank Vasco Syndicate Bank Vasco Canara Bank, Vasco Canara Bank, Vasco HDFC Bank Ltd., Vasco HDFC Bank Ltd., Vasco HDFC Bank Ltd., Vasco HDFC Bank Ltd., Vasco State Bank of India, Vasco ICICI Bank Ltd. Vasco ICICI Bank Ltd. Vasco State Bank of India, Mormugao Syndicate Bank Pale Canara Bank Bangalore

6.21 1

2

Confidential

Account No 100020100000003 015020400400829 100020110000081 72113050000018 72111070000029 0311201000712 0311241000002 00722320000552 00722000003489 00722000004466 50200024269452 10539547694 022605000295 136406000007 10438017297 72053070000070 431201015051

Type Of Account Current A/c EEFC A/c Current A/c Current A/c EEFC A/c Current A/c EEFC A/c Current A/c Current A/c Current A/c EEFC A/c Current A/c Current A/c EEFC A/c Current A/c Current A/c Current A/c

Bank Account entries Cheque Receipts

Cheque Issue

Dr. Bank Cr. Party

XXXX XXXX

Dr. Expense/AP Cr. Bank

XXXX XXXX

Page 18 of 37

AS IS Document

7

ACCOUNTS RECEIVABLE PROCESS

7.1

Export Sales - Iron Ore Invoice Accounting 

Once the Vessel is sailed Provisional Export Sales Invoice for 100% of shipment value is raised, it is stated in the invoice that 95% provisional Invoice value has to be paid by party and the balance 5% is to be settled by the party on final analysis report at destination port.



Provisional Invoices is raised in US$, 100% of invoice value(US$) is accounted in Indian Rupees by considering the exchange rate as on date of Bill of Lading. The Invoice shows 95% & 5% value separately. The entry will be Debit to Party and Credit to Export Sales Income.



After receiving the 95% Sales proceeds through our bank we account the proceeds by crediting to party. The exchange difference arising on account of 95% invoice value and receipt value transferred to exchange difference Export A/c. When vessel reaches the destination port, ore analysis is done by the party and reports are send to us to raise the final invoice. Final Invoice is raised with 100% value, Less the 95% Provisional invoice value balance receivable / payable to party. Accounting treatment to final invoices, we reverse the 5% value which is accounted as per Provisional Invoice (The entry will be Credit to Party and Debit to Export sales - Income,) and then Final Invoice is accounted on exchange rate as on date of Bill of Lading. After receiving the 5% Final Invoice proceeds through the bank the exchange difference is transferred to Exchange difference - Export A/c. Year end if any Provisional or Final Invoice is raised but not realised, we restate the Invoice value as at 31st March exchange rate. From 01-04-2017 onward all Export Sales of I/Ore Shipments are on CFR FO Basis (Cost Freight Free Out). Wherein Ocean Freight is incurred by the company and debited to expenses.





  

7.2 

Confidential

Dispatch on Vessel : Dispatch on Vessel is accounted at the exchange rate prevailing on the Bill date.

Page 19 of 37

AS IS Document   7.3

On realisation of proceed the difference in exchange is transferred to Exchange Difference account. If at the year end the bill is not realised, it is restate as at 31st March rate.

Sales Of Iron Ore Export  After completing the all process of Export Sale as per terms and condition of contract, once the Vessel is completed and sailed, the account Dept. receives hard copy of Provisional Invoice along with requisition in FAS from Export Dept.  The Provisional Invoice shows 95% and 5% value of Invoice in foreign Currency (USD), after verifying the correctness of the Invoice we convert the USD in INR 95% & 5% by applying exchange rate as on the Bill of Lading date.  The entry Vessel is completed and sailed, the account Dept. receives hard copy of Provisional Invoice along with requisition in FAS from Export Dept. The Provisional Invoice shows 95% and 5% value of Invoice in foreign Currency (USD), after verifying the correctness of the Invoice we convert the USD in INR 95% and 5% by applying exchange rate as on the Bill of Lading date.  Accounting Entry as follows :

Party Account Dr Export Sales Income Cr Export Sales Income Cr

Confidential

100% 95% 5%

Page 20 of 37

AS IS Document

 After receiving 95% sale proceeds through our bank from party we accounts the proceeds (only 95% realised in INR) the entries:

Bank Account Dr Party Account Cr

95% 95%

 The difference in exchange on realization of provisional invoice is accounted.

Party Account Dr Exchange Difference Account Cr

XXXX XXXX

 On receipt of destination report the export dept raises the final Invoice, following entries are passed. The 5% accounted as per Provisional invoice now being reversed.

Sales Account Dr Party Account Cr

XXXX XXXX

 The Final Invoice is being accounted by applying exchange rate as on Bill of Lading date.

Party Account Dr Sales Account Cr

XXXX XXXX

 After receiving final invoice proceeds through our bank from party we accounts the proceeds (5% realised) the entries:

Party Account Dr Confidential

XXXX Page 21 of 37

AS IS Document Sales Account Cr

XXXX

 The difference in exchange on realization of final invoice is accounted.

Exchange Difference -Export Dr Party Account Cr

XXXX XXXX

 In case of contract where the rates are provisional and final rates are to determine based on the index price of the month on arrive at destination port. In such cases many a times the final invoice is negative wherein we have to pay party by raising a credit note.  Note:  Base on Export Sales inputs the various Export related report are being prepared for our various requirement (Format attached) Copy of Provisional And Final Invoice is attached. (All Accounting entries in our Books are in Indian Rupees)  GST not applicable for Export Sale of I/Ore  Export Duty is not applicable for grade below 58%  From 01-04-2017 onward all Export Sales of I/Ore Shipments are on CFR FO Basis (Cost Freight Free Out) 7.4 

Local Sale of Iron ore:

Sales of Iron ore to local customers base on the terms and condition of contract. Invoice is being raised by Export Dept

Party Account Dr Local Sales of Iron Ore Cr CGST Payable Account Cr SGST Payable Account Cr TCS Payable Account Cr

XXXX XXXX XXXX XXXX XXXX

Note: All Local sale of Iron Ore are in Indian Rupees Confidential

Page 22 of 37

AS IS Document 2.5% CGST on Value 2.5% SGST on Value 1% TCS is applicable (Value + GST) 7.5 Sale of Services : VMSB’s Truck supplied for our group company VMSSI & GMPL to transport the Ore from one location to routes are pre-fixed with rate to be charged. Truck management module keeps a track of route month the bill are being raised & Accounted in the FAS The entry:

Party Account Dr Truck Hire Receipt Cr

XXXX XXXX

Note : The Bill raised at TMS Module and Req. in FAS along with hard copy of signed (Copy of Bill is Enclosed) GST is not applicable if the value of per trip is below R.1500/7.6

Hire Charges of Machinery/Jetty

7.6.1 Machinery Hire Receipt Machinery given on hire to third parties at agreed rate, Bills are raised by us applying the applicable rate of GST  The Accounting Entry is as follows:

Party Account Dr Machinery Hire Receipt Cr CGST Payable Account Cr SGST Payable Account Cr

7.6.2

XXXX XXXX XXXX XXXX

Jetty Hire Receipts

Company’s Jetties are given on hire to third parties at an agreed rates, many a times the composite provided which includes Jetty Hire, Barge Hire and Truck Transportation where the rates are fixed The bills are raised by Export Dept.

Confidential

Page 23 of 37

AS IS Document

Party Account Dr Hire Receipt Cr CGST Payable Account Cr SGST Payable Account Cr

7.6.3

XXXX XXXX XXXX XXXX

Hire Charges

The Company does not own any barges however in case of composite services wherein the company services to third parties, barges are hired by company from group entities for said services. The rate Bill is being raised by our Export Dept.

Party Account Dr Hire Receipt Cr

XXXX XXXX

Note : The Barge Freight rate is as per Goa Mineral Ore Exporters Association 7.6.4

Tran shipper Loader Receipts

Tran shipper Vishal Hira is used for Loading Foreign going Vessels given to VMSSI and outside parties as per the agreed rate. The Export Dept. raises the bill. The Accounting Entry :

Party Account Dr Transhipper Income CGST Payable Cr SGST Payable Cr

XXXX Cr

XXXX

Note : Tran shipper Income booked by Shipping Division GST paid by H.O. 7.6.5

Confidential

Manpower Supply:

Page 24 of 37

AS IS Document Company provides Manpower to Group companies for which billing is done on monthly basis. Bill is being raised by applying applicable GST 7.7 Other Income :   

Interest Income - Cash & Bank Dividend Income: - Investment Dept. Profit on Sale of Assets - Asset Dept. 7.8

Proceeds from Rent Income

 VMSB Flats/Houses given on Rent, every month Bills are raised as per the agreement. In case of renting premises GST as applicable is charged.  Accounting Entry

Party Account Dr Rent Income Cr

7.9

XXXX XXXX

Miscellaneous Income:

 Miscellaneous Income includes:   

Vehicle accidental Insurance claim Sale of Scrap Sale of Loan application forms

7.10

Other Operating Revenue

7.10.1

Sale of Stores, Spares and Components etc.,

 HSD, Stores & Spares parts are sold to scheme Trucks and Contractors and group Companies based from Inventory dept. Necessary Invoice are raised by applying applicable taxes.

7.11

Following Monthly reports are received from Inventory Dept.

 Monthly Consumption Entry of Stores and Spares with consumption analysis Confidential

Page 25 of 37

AS IS Document          8

Consumption return Entry Sales Entry with Supporting Capital entry Adjustment Entry Store to Store transfer entry Entry to issues to Shipping division GRN Matching Report Value of Stock Statement Ledger Summary

GST - GOODS AND SERVICE TAX

8.1

GST on Goods Transport Agency (GTA)

 Services of GTA attract GST at either 5% or 12%. The liability to pay GST devolves on the recipients of such GTA Services.  The rate of 5% is subject to the condition that credit of Input Tax charged on goods or services used in supplying the service has not been taken. If Input Tax credit is to be availed, then the GST rate would be 12%.  The services provided by individual transporters who do not issue a consignment note are exempted from GST.  Consideration charged for the transportation of goods on a consignment transported in a single carriage are exempt, if it does not exceed Rs 1,500/-.  Consideration charged for the transportation of all such goods for a single consignee are exempt if it does not exceed Rs 750/ Any intermediate/ ancillary service provided in relation to transportation, like loading / unloading, packing/ unpacking, trans-shipment, temporary warehousing, etc. are also covered under GTAIf these services are not provided as independent activities. 8.2  

 

Reverse Charge Mechanism in GST (RGST)

Reverse charge means the liability to pay tax is on the recipient of supply of goods or services. There are two types of reverse charge categories. First is dependent on the nature of supply and the Second is dependent on the taxable supplies by any unregistered person to a registered person. The first category of services includes Legal Services, Sponsorship Services, Services received from Govt., Services provided by a Director (not being an employee) etc. The second category includes all supplies of goods and services received from GST unregistered dealers.

Confidential

Page 26 of 37

AS IS Document

The rates of GST applicable to the above mentioned services are as follows: Sl. Particulars SGST CGST No 1 GTA Services – 5% 2.5% 2.5%

IGST 5%

2

Legal Services – 18%

9%

9%

18%

3

Sponsorship Services – 18%

9%

9%

18%

4

Services Received from Govt. – 18%

9%

9%

28%

5

Services provided by Director (not being an employee) – 18% Goods and Services received from GST Unregistered dealers

9%

9%

28%

6

8.3 

Various Rates as listed in above table

Input Tax Credit in GST

Any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or intended to be used in the course or furtherance of business.

   

The pre-requisites for availing credit by registered person are: He is in possession of tax invoice or any other specified tax paying document. Tax is actually paid by the supplier and also GST Returns has been filed by him. If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received.  He should pay the supplier, the value of the goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1) & (2) of ITC Rules]. However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment has been made, proportionate credit would be allowed. 

ITC is not available on:

 Goods and/or services provided in relation to food and beverages, outdoor catering, health services, Membership of a club, health and fitness centre; Rent-a-cab, life insurance,

Confidential

Page 27 of 37

AS IS Document





   

health insurance except where it is obligatory for an employer under any law and Travel benefits extended to employees on vacation such as leave or home travel concession; Works contract services when supplied for construction of immovable property, other than plant & machinery, except where it is an input service for further supply of works contract; Goods or services received by a taxable person for construction of immovable property on his own account, other than plant & machinery, even when used in course or furtherance of business; Goods and/or services on which tax has been paid under composition scheme; Goods and/or services used for private or personal consumption, to the extent they are so consumed; Goods lost, stolen, destroyed, written off, gifted, or free samples; Any tax paid due to short payment on account of fraud, suppression, mis-declaration, seizure and detention

ITC, in all the above cases, is to be availed within 1 year from the date of issue of invoice by the supplier 8.4    

GST on Construction of Residential complexes. GST @12% is applicable if sale or advance is received before Occupancy certificate. No GST if sale or consideration is received after taking occupancy If sale is exempt No input Tax credit is available. If any Additional work is carried out after occupancy GST @ 18% is applicable.

8.5 Nature of outward supplies provided by VMSB & group and their applicable GST rates

Sr. No

Particulars

GST Rule

1

Manpower Supply Services

18%

2

Transhipper Services

18%

3

Renting of Commercial Premises

18%

4

Renting of Residential Premises

Exempt

5

General Insurance Services

Confidential

18%

Page 28 of 37

AS IS Document 6

Permit & Registration Fees

7

Sale of Used Motor Vehicles

8

Sale of Stores, Spares & Components

9 10

Transportation Waterways Sale of HSD

11

Transfer of Right to use machinery

12

Transfer of Right to use launch vessel

13

Programme Membership Fees

18%

14

Export of Ore

0%

15

Local Sale of Ore

16

Ore Processing

18%

17

Construction of Residential Complexes

12%

18

Sponsorship Services

18%

19

Business Auxiliary Services

18%

9        

of

Goods

18%

through

Inland

Taxable at Various Rates plus Compensation Cess as applicable Taxable at Various rates Exempt Non GST Taxable at various rates Exempt

Generally 5%

WITHHOLDING TAX PROCESS TDS as applicable are deducted while accounting the Invoices in PV Screen. The TDS rates are specified in the Party Master. Entries in the TDS register are automatically captured from PV, Bank remittance or from JV in case of TMS. For Mumbai & Delhi division the entries are entered manually in TDS register. TDS register is processed at the end of the month. After processing the TDS register JV is created by Debiting Party’s account & crediting respective TDS Payable account. The TDS remittance is generated, and payment is made by net banking. TDS returns is prepared quarterly from the TDS Register data.

Following are some of TDS rates applicable to VMSB Group: Confidential

Page 29 of 37

AS IS Document

Rate of TDS Section Code

Nature of Payment

Thresh Hold Limit

Rs. 30,000/- ( Single Payment ) / Rs.1,00,000/Yearly Payment Commission / Brokerage Rs. 15,000/Rent of Plant & Machinery Rs. 1,80,000/Rent of Land or Building or Rs. 1,80,000/Furniture & Fittings Immovable property (other than Rs. 50,00,000/-

194 C

Payment to Contractors

194 H 194 I 194 I 194 IA

Individual / HUF

Others

1%

2%

5% 2% 2% 1%

Agricultural Land)

194 J

Payment to Professionals

10   

Rs. 30,000/-

10%

ASSET ACCOUTING

Presently there is no sub ledger Accounting for Asset except for Capital work in progress. Assets Posting is directly done to General Ledger in books of accounts Detailed asset register is maintained separately in FA Module.

Following are Assets GL Codes Sr. No Particulars

Account Code

1.

Land

1101

2.

Buildings

1102

3.

Tippers & Dumpers

1103

4.

Plant & Machinery

1104

5.

Furniture & Fittings

1105

6.

Vehicles

1108

7.

Other Equipments

1109

8.

Bridges, Roads & Jetties

1110

9.

Barges, LCTS, & Launches

1111

10.

Electrical Equipments

1115

11.

Lease Hold Land & Buildings

1117

Confidential

Page 30 of 37

AS IS Document 12.

Mining Rights

10.1

Class C o d e

The VMSB has following Class of Assets

Asset Class Description

01

LAND

02

BUILDINGS

Type Code

05

FURNITURE FITTINGS

08

VEHICLES

09

0

12

LEASEHOLD LAND

0

0

0

11

RESIDENTIAL HOUSE/FLATS - RCC STRUCTURE

5

60

4.87%

12

OFFICE BUILDINGS - RCC STRUCTURE

5

60

4.87%

13

FACTORY BUILDINGS

5

30

9.50%

14

HOTEL BUILDINGS - RCC STRUCTURE

5

60

4.87%

15

5

5

45.07%

5

3

63.16%

5

30

9.50%

5

30

9.50%

24

FENCES, WELLS, TUBE WELLS OTHERS (INCLUDING TEMPORARY STRUCTURES) RESIDENTIAL HOUSE / FLATS - OTHER THAN RCC STRUCTURE OFFICE BUILDINGS - OTHER THAN RCC STRUCTURE HOTEL BUILDINGS - OTHER THAN RCC STRUCTURE

5

30

9.50%

11

TIPPERS & DUMPERS

5

8

31.23%

11

EARTHMOVING MACHINERIES

5

8

31.23%

12

GENERATORS

5

15

18.10%

13

AIR COMPRESSORS

5

15

18.10%

14

PUMP SETS

5

15

18.10%

15

WORKSHOP MACHINERIES

5

15

18.10%

16

BEN. PLANT MACHINERIES

5

15

18.10%

17

PRINTING PRESS MACHINERIES

5

15

18.10%

18

EDP EQUIPMENTS

5

3

63.16%

19

OTHER MISC. MACHINERIES

5

15

18.10%

11

OFFICE FURNITURES

5

10

25.89%

12

HOTEL FURNITURES

5

8

31.23%

11

TRUCKS, VANS, AMBULANCE ETC.

5

8

31.23%

12

CARS & JEEPS

5

8

31.23%

13

IMPORTED CARS

5

8

31.23%

14

TWO WHEELERS(SCOOTERS, BIKES, MOPEDS)

5

10

25.89%

11

OFFICE EQUIPMENTS

5

5

45.07%

14

REFRIGERATORS/COOLERS

5

5

45.07%

&

OTHER EQUIPMENTS

Confidential

0

0

22

04

Depr. R at e

PURCHASED LAND

21

PLANT & MACHINERY PLANT & MACHINERY

Asset Type Description

Residual %

Useful L if e ( I n Y e a r s )

11

16

03

1119

Page 31 of 37

AS IS Document 15

AIR CONDITIONERS

5

5

45.07%

16

T.V.s ETC.

5

5

45.07%

17

SILVER ARTICLES

5

5

45.07%

18

OTHER MISC. EQUIPMENTS EDP EQUIPMENTS - HARDWARE Laptops etc.)

5

5

45.07%

5

3

63.16%

0

3

63.16%

29

EDP EQUIPMENTS - SOFTWARE EDP EQUIPMENTS - HARDWARE (Networks & Servers )

5

6

39.30%

11

BRIDGES, JETTIES, CULVERTS ETC.

5

30

9.50%

12

CARPETED ROADS - RCC

5

10

25.89%

13

NON-CARPETED ROADS

5

3

63.16%

22

CARPETED ROADS - OTHER THAN RCC

5

5

45.07%

11

BARGES

5

28

10.15%

11

ELECTRICAL INSTALLATION & EQUIPMENTS

5

10

25.89%

01

MINING LEASES

0

0

0

11

CAPITAL WORK IN PROGRESS

100

0

0

19 20

10

11 15 19 21

ROADS, BRIDGES & JETTIES

BARGES ELECTRICAL INSTALLATI ON MINING LEASE RIGHTS CAPITAL WORK IN PRPGRESS

10.2

(Desktops,

PROPERTY PLANT & EQUIPMENTS

The Cost of Asset includes the cost of acquisition and other attributable costs for bringing the asset to its working condition including any interest on the borrowings up to the date of commissioning. 10.3

DEPRECIATION ON TANGIBLE ASSETS

Depreciation is provided on Written down Value Method to write off the cost of the assets less their residual values over their useful lives. In respect of additions to the assets, depreciation is provided from the date of purchase/installation and in respect of assets sold, depreciation is provided up to the date of sale on pro-rata basis. Assets are scrapped by way of 100% Depreciation. Accounting Entry for Asset Depreciation: Depreciation Account Dr Provision for Depreciation Cr

Confidential

XXXX XXXX

Page 32 of 37

AS IS Document

10.4

Amortisation of intangible assets

In case of Intangible Assets Depreciation is provided over the useful life of asset. Accounting Entry for Amortization:

Depreciation Account Dr

XXXX

Provision for Depreciation Cr

XXXX

10.4.1 Types of assets:  Purchased Assets  Self-constructed Assets ( where the Job Code is opened presently to capture the cost ) 10.4.2 

Additions to Assets: Once the bill is received in Account dept. it is verified with purchase order or Work order, Approvals are checked and the bill is accounted in FAS. In case of Tangible assets the Bill is forwarded along with the GRN & Issue note. Following entry is passed in Books.

Resplective Asset Account Dr

XXXX

Party Account Cr



XXXX

Following details of assets are entered in FA Module.        

Confidential

Name of the Party Date of Commencement /put to use Location of assets Item description Quantity Rate per unit Value of assets Capitalized (flag Yes /No)

Page 33 of 37

AS IS Document 

After making entries in the interface it is retrieved in Asset Master Introduction (FY2014 Onwards) and verified. Further following details are entered.      



10.5 

Asset class code Asset type code Cost centre code Asset finance code Provision for depreciation finance code Depreciation finance code

After verifying above details documents is confirm and asset code is generated in Fixed asset registered. Sale of Asset When any Asset is sold, the bill is raised on the party which is accounted in the books. Following Entry is passed to account the sale.

Party Account Dr Sale of Asset Account Cr GST Payable Cr





XXXX XXXX XXXX

Thereafter the following details are entered in Fixed Asset module in Asset Sale Entry screen. On saving the document the asset gets deleted from the register.  Invoice date  Party code  Asset code ( Code of Asset which is to be sold )  Sale quantity  Sale value On the basis of above details sale register report is generated showing following details  Asset code  Description of asset  Original cost  Op. Accumulated Depreciation  Depreciation upto sale date  WDV at sale date  Sale price

Confidential

Page 34 of 37

AS IS Document    

Profit / loss Capital gain Name of customer (sold to) Invoice no. & date

All entries for deletion of assets are passed manually. Only depreciation entry is passed by system automatically once the depreciation is processed.  In case of deletion of asset following entries are passed. Provision for Depreciatoin Account Dr

XXXX

Sale of Asset Account Dr XXXX Asset Account Cr Profit on Sales Cr (entry in case of Profit on Sales of Asset)

10.6     

XXXX XXXX

Reports are available in the FAS Details of Assets purchased Details of Assets scrapped Asset Sales Register Summery schedule of Fixed Assets Detailed Fixed Asset Register

11

Procedure for Travel Management 

Employees has to fill the form with respect to his travel along with travel date, destination purpose and duration of visit and estimated amount of advance.



After filling the form HOD of concern department authorises the same and sent for management approval.



After seeking management approval, source department enters the requisition for advance in FAS module and generate the requisition no. which is entered on the documents and sent to the accounts dept.



Using the requisition number the voucher is codified in system and advance remittance is prepared which is sent to GM Accounts for approval.

Confidential

Page 35 of 37

AS IS Document 

After approval the document is sent to cash section for processing payment.



Once employee returns from his trip the employee submits his expense statement ( time frame is not define for submision ) after HOD & management approval.



On receipt of expense statement it is verified by the accounts Dept. and if found in order accounted in FAS.



Any differential amount on account of recovery/ payable will be received/disbursed by preparing disbursement voucher.



Presently employee masters are maintained with numerical codes.

11.1

Following accounting entries are passed .

01

Advance given Employee Account Dr Bank / Cash Account Cr

02

Expenses (Bills) are submitted. Travelling Expneses Account Dr Bank /Cash Account Cr(if Advance is excess) Employee Account Cr Bank / Cash Account Cr (if advance is short)

12

XXXX XXXX

XXXX XXXX XXXX XXXX

Salary Process       

Confidential

Based on the appointment letters data is entered in the HR & payroll Module by HR & Payroll dept. the same is received by accounts dept. which is verified at our end. Attendance inputs are received from source dept. Society & other deduction like Income Tax are manually entered Additional Income like OT & Exgratia if any is manually entered. Salary is processed by 27th of the Month. Checking of variations if any with previous month’s salary. Printing Net salary listing of employee for Bank transfer Page 36 of 37

AS IS Document

12.1 Following JV is passed for accounting salary & other deductions. SALARY A/C OVERTIME A/C LEAVE ENCASHMENT CO'S CONTB.TO PROVIDENT FUND CO'S CONTB.TO FAMILY PENSION FUND CO'S CONTB.TO E S I C TO SALARY PAYABLE TO PROVIDEND FUND PAYABLE TO FAMILY PENSION PAYABLE TO ESIC PAYABLE TO GOA LABOURE WELFARE PAYABLE TO PROFESSIONAL TAX PAYABLE TO HOUSING LOAN RECOVERY TO COMPANY LOAN PAYABLE TO FESTIVAL ADVANCE TO LIC RECOVERY PAYABLE TO SOCIETY RECOVERY PAYABLE TO TDS PAYABLE TO HOUSING LOAN INTEREST A/C

Confidential

DR DR DR DR DR DR CR CR CR CR CR CR CR CR CR CR CR CR CR

Page 37 of 37