Existing System at VRIL, Bibwewadi site

Purchase of material

1 Requirement material – Requisition from Concerned Engineer/Project In charge Reg.requirement of material is given.

2 After receipt of material requisition either in oral or in written note – quotations from different suppliers collected at local office.

3 Comparative statements is made & submitted to HO for rate approval.4 After receipt of HO approval, PO is raised to the concerned Supplier for

Supply of material at site.

5 Four copies PO made – 1.Vendor .2.HO 3.Accounts 4.One copy of records.

6 No PO raised for urgent requirement of material. Such material purchased as per indent received on Cash basis. Signature of Vendor is taken in acknowledgment of PO. Vendor Supplies material as per PO.

7 after receipt of material at Site, First entry made in a Inward & Outward register Kept & gate.

8 Thereafter, material is checked by the concerned engineer and unloaded at either site or stores . Quality is checked by Engineers. Quantity is

Checked by Store people. Acknowledgement is given on challan with Material receipt Stamp and Signature – Original copy is kept by Store Keeper in file and second copy is given to the concerned vendor.

Issue of material

1Issue Note. Material issued to concerned contractors against their requirement on Material

2

and also on Daily Stock report.

3presence of store keeper without value./free for consumption at site.

Receipt of Bill and payment thereof

1 Bills are received directly from vendors to Stores Dept. forwardedto accounts dept. and kept in Pending Bills file.

2 Bills are linked with proper stores receipt challans.3 Bill are checked with Purchase Orders & copy of the same is

Attached to related Bill.4 Payment request sheet is prepared incorporating bills by accounts.5 Payment request is signed by Accountant and Comm.Manager.6 All payment request sent to Aurangabad Office for approval through courier

7 After getting approval at Aurangabad – these payment requests aresent to Pune Office for releasing cheques.

8 Pune Office thereafter preparing cheques and the signed cheques aresent to Bibwewadi site.

9 All cheques received from Pune Office are entered in a Register.10 Information of cheques receipt is given to the related vendor on phone

& thereafter vendor comes and collect cheque .

Statutory Compliance

Income Tax – TDS

Deduction of TDS are already made in the Payment request sheet by the site accountant.

  Material issue note is signed by the receiver and store keeper.  On the basis the Material issue note – entry is made in the stock register

    Material issued to the concerned contractor after proper counting in the

Monthly summery of TDS deduction is prepared by the site accountant and submittedto Aurangabad office for approval and therafter same is sent to Pune Office for releasingCheque.After getting the cheque from Pune Office the same is deposited in to the Bank withChallan by the site accountant.

Quarterly return of TDS is prepared by the site accountant and submitted to BombayFor filing in the Income Tax Dept.

WCT-TDS

Deduction of WCT-TDS are already made in the Payment request sheet by the site accountant.

After getting the cheque from Pune Office the same is deposited in to the Bank withChallan by the site accountant.

Site Expenses

For site expenses – Rs.50,000/- advance is given for day to day expenses purposes,(two cheques of Rs.25,000/- each). After utilizing the amount – details of expensesincurred at site – statement is prepared and sent to HO for further advance of.Rs.50,000/-..

Vr.payment to site employee

Vr.payment to site employers (those are not on roll) is made in Cash. On Monthly

Details of statement of payment to be made is prepared by HO and submitted to PuneOffice for releasing cheque. On receipt of cheque – cash is withdrawn from bank andDistributed to employees.

Purchase of Fixed Assets

FORMATS UTILISED AT SITE

Monthly summery of WCT-TDS deduction is prepared by the site accountant and submitted To Aurangabad office for approval and therafter same is sent to Pune Office for releasing Cheque.

Basis attendance is sent to HO –Aurangabad HRD Dept. for calculation and approval .

Fixed Assets those are purchased at site – accounted at site at original cost but no

depreciation on assets is charged.Few fixed assets were procured from Head Office& utilised at site but no account /service charge is debited in VRIL.

Purchase Order Material issue Note Advance request formMaterial Outward Gate Pass Expense sheet format

Recommedmded for Revision of existing System

No it should be in written form only

Need to fix limit in monretary term for site for P.O

approval & beyond this .PO should be approved

by the H.O for speedy procumrent of materiaat

site & uninterupted construction at site

No. if it goes beyond certain limit it should be authorised after getting atleast three qotation from the supplier & confirmation from the H.O

First two registere shoud be maintained at Security Gate Pass For Inward & Out ward Material at site

After verification of quality by the quality engineer

the challan should be singned & handed over to

store for the maintaing the record & quantity check

& unlod the material only at store

After the receipt of goods in store it should be

entered in Goods Inward Register based on

Challan & gate paased signed by the security

Material Requision note should be made

compulsory & signed by the conderned Engineer

Materrial issue note should be made on the basis of MRN & Accordingly goods should be issued & signed by the store keeper

On the basis of the MRN & Material Issued Note to thecontractor Entry should be reflected in the Material issued Register

Goods should not be unloded at place other than store except in case of heavy goods / special nature Goods should not be scattered at site if it exceed the consumtion / use should be returned to store immediately Non moveable item should be segregated & kept Seperately & reveived & treated & disposed of as as management decision

This is lengthy procedure & need new

alternative/ machanism should be explore to

expedite the bills cheacking & payment to have

good relation between Vendors / Suppliers

Deduction of WCT-TDS are already made in the Payment request sheet by the site accountant.

Same as Existing Same as Existing

As it was not provided in the site account's books but ths required to see the final trial balance which was not updated by the pune site Accountant provided Depreciation or not

Need to Modernise Need to Modernise Need to Modernise Need to Modernise Need to Modernise