3 Finance Department

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3 FINANCE DEPARTMENT

Financial banking is the science of managing money and other assets pertaining to a

specific business. We all know that banks offer basic loans, deposits and financial advice,

but they also facilitate transactions on sophisticated financial instruments such as private

equity, bonds and mutual funds. Most top performing candidates typically view careers in

Banking as the pinnacle of achievement, and sectors such as treasury, equity trading,

investment banking and private banking are viewed as the most lucrative jobs for new

graduates.

In addition to traditional banks, other financial institutions such as credit unions, trust

companies, mortgage loan companies, insurance companies, brokerage firms and asset

management firms also offer a host of financial advice. Hence, when viewing the

opportunities in the sector, one must also carefully consider these other specialized

financial institutions.

Finance department is very essential for any organization to be set up. It is the backbone

of any organization. Similarly the finance department plays a vital role in the set up and

running of HGS.

Chief accountant manager and chief finance manager works under the direct control offinance Director at HGS. Other top executive in the finance department are executive

(Finance), divisional officer (Finance), accounts officer, assistant officer, senior assistant

(Accounts) and assistant (Accounts). The chief finance manager and accounts manager

handle various activities in the finance department. Each of them has their tasks cut out

systematically in these areas.

In HGS, finance and accounting department is subdivided into 11 sub departments:

Salary department Cash department Bills department Budget and costing department


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Consultancy department Provident fund department

Monthly and annual accounts department

Debt servicing department Ongoing project department Taxation department Pension department

Its brief explanation as follows:

Salary Department:

In HGS salary department looks after the advances to employees salary payable to the

employees. Salary department calculates the salary of employees, on the basis of

information given by the Human Resource department regarding the employees

attendance, leave, leave not sanctioned, under salary amount deduction made in respect

of provident fund, tax, and remittance charges, recoveries for advance. Salary department

credit net salary amount and reimbursement of Medical and Electricity charges amount to

employees bank account by issuing cheques.

3.3.1 Cash department:

The cash section is responsible for all receipts and payments of cash, cheques, etc., and

accounting the same in the books of accounts.HGS provided 15 corers as working capital

to cash department, to carry out its transactions. If need arises beyond 15 corers, it

requires to get permission from senior executive of finance.The functions of Cash department are:

Operation of Bank accounts. Withdrawal of cash from bank, to cater for daily needs.


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Payment of voucher by cheques / cash Cash disbursement to salary department for payment of salaries, wages and other

payments.

Writing of cash / bank books. Preparation of Bank reconciliation statement. Safe custody of cash, cheque book, revenue stamp & other documents like bank

guarantees, fixed deposit receipts and investment etc.

Reconciliation of inter transfer of funds transaction.3.3.2 Bills department:

Bills department concerned with the verification of bills relating to expenses after

verification, the bills will be sent to cash section for payment. Bills department ensure

that the bills amount are not exceeds the budgeted amount. If bills amount exceeds the

budgeted amount, the bill department is not having power to process the bill, in that case

managing director has power to process the bill. In the department bills are divided in to

two types.

1. Major bills.

2. Minor bills.

Major bills:

Major bills stands for amount payable for suppliers to supply goods to the power

generating units according to the predetermined agreements. Agreement is made on Rs.

100/stamp papers. In case of delay in supply of goods, penalty of 10% on the purchase

work is demanded. 80% of the payment will be made during the agreement, if the goods

are being transported by railways. In case, goods are transported roadways, payment will

be made only on receiving the goods, at the site, the quality and quantity of goods are

verified and inspection report will be sent to the bills section. In bills section the terms

and conditions based on the agreement are verified and if they are found to coincide with


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inspection report, then the bills will sent to cash section for payment. If C-formis

producing or submitted the right of royalty and exercise duty would be 4%, otherwise

12%. C-form is issued only after receiving the goods.

Minor Bills:The minor bills include:-

Payment of interest of loan, debenture, repayment of loan amount and debenture. Payment of rent, telephone bill, office expenses printing and stationary, computer

maintenance expenses.

Payment of directors fee and remuneration. Reconciliation of balance of head offices with Banks.

3.3.3 Budget department:

Budgeting is nothing but the blue print of the future needs of the company. Budget refers

to forecast of future need. HGS involves two types of Budget.

Revenue budget:

The revenue budget mainly focuses on the sales revenue and the associated costs to

generate the power. The power generation is budgeted on the basis of average of last ten

years sales and expenses on the basis of previous year actual and estimation received

from different departments.

Establishment and general expenses:

Operation and maintenance. Fuel and chemicals. Royalty paid for water use. Financial charges the outstanding loans.


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Depreciation.3.3.4 Cash budget:

Cash budget is helpful in estimating each requirement, planning short term financing and

scheduling payments in connection with capital expenditure project, planning purchase of

materials.

3.3.5 Consultancy department:

HGS today has the capability to undertake large scale power projects from concept to

commissioning. It can also operate the plant on an EPC basis, with a host of exclusive

auxiliary services.

HGSs Consultancy and Engineering Services Division, an offshoot of its core

competency, offers its clients a wide spectrum of consultancy inputs across the complete

cycle of power project development. It has the expertise in analysis and design of

structures using STADPRO 2006, NISA Finite Element package, AUTOCAD

2006, micro station and in house developed software packages for reservoir operation,

Stability of Dams etc.

These include:

Feasibility studies / evaluation and the compilation of detailed project reports Design, Engineering, procurement and construction services Consultancy on both Thermal and Hydel Power Stations, including handling of

international competitive bids

Project Management from project scheduling to preparation of final invoice andcertification.

Supervision of erection, commissioning and operation of civil, electrical,mechanical systems and equipment.

Operation and maintenance services, Rehabilitation of dams in distress


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Renovation, modernization and updating of hydro stations Overall project and performance management.

3.3.6 Insurance department :Insurance is a service of an undertaking taken in order to overcome or set off the losses or

damages while operating the business. In order to cover the risk and maintenance GHS

has taken out insurance policy with many companies. The risky projects among all power

generating project are RTPS in order to cover all those risks while operating all those

insurance policies covered under RTPS can be classified:

Maintenance Standard fire and special perils. Boiler explosion policy. Terrorism.


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3.4 INDUSTRIAL ENGINEERING DEPARTMENT

Industrial engineering department helps to maintain the machines which has been using

for the production process. Thus this department helps to avoid the disturbance during the

production process.

3.4.1 Objectives:

The main objective of this department is to plan, design, implement and image

integrated production and service delivery system that assure productivity, quality,

reliability, maintainability and cost control to keep CSPGCL globally competitive.

3.4.2 Functions:

Conduct work-studies, improvement studies in various equipment and fixation ofnorms.

Capacity calculation in various equipments from time to time consequent tovarious changes.

Design, implementation and follow up of incentive schemes in various zones. Planning and assessment of man power requirements of various departments

periodically.

Studying plant layout and material handling systems and suggestingimprovements.

Explore the possibilities of capacity expansion and prepare project report. Negotiation with unions regarding worries, issues like incentive schemes,

productivity, expansion and labour issue.

Analysis of capital expenditure request from various department and makerecommendation to senior management committee.

Prepare budgetary planning for capital and cash flow requirement. Prepare documents for long term settlements, bonus settlements etc and represent

the management in the meeting with the union/labour departments.


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Visit other industries for getting information regarding LTS methods, practice andother developments.

Conduct various training classes for workmen, supervisors, other officers and newrecruits.

Apply various industrious engineering techniques such as job evaluation, O & M(Organization and methods) studies, kaizen, line balancing etc.

Suggest various cost reduction programmes and implementation. Associate with professional bodies like productivity council, NITTIE etc and

institution of engineers etc.

Conduct daily audit on man power, productivity, lost time, scrap detail,absenteeism, overtime etc.

Furnish various other management information reports of the top management. Involve best practices and processors through global bench marketing in the

context of global competitions and intense customer focus.

Optimize inventory levels at various stages such as engineering store, workingprogress and finished goods.

Continues improvement of methods and equipments designed compatible to thebest economic standards.

Preparation and presentation of daily review report on critical parameters. Preparation of machine utilization report. Computation of kilogram/man hour. Computation of indirect incentive earning rate. Computation of various data and submission of application for various awards. Computation of plant performance report on a daily basis and display. Extent the support to the line function term regarding manpower details, norms,

new products etc.

Incentive earning computation and releasing of incentive earning list.


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Incentive allowance computation and advice to finance and time office forpayment.


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3.5 TECHNICAL DEPARTMENT

The system department is responsible for computerization of different departments of

company. The main function of this department, operates and co ordinates all systems in

the organization. The simple structure of department facilitates speedy communication

flow within the department.

3.5.1 Monitoring Function

Security problems in the SAP were solved using Central Virus Scanning System and

Firewall at the head office Raipur.

3.5.2 Maintenance Function

The system department in the plant solved network problems as well as computer

problems. Regular backups were taken daily, weekly and monthly for providing

reliability in the SAP system.

All the computers were connected using both point-to-point and star topology to form an

Intranet inside the plant. Proper authentication was given to each department members

using a user ID and a password.

Information technology (IT) is defined as the design, development, implementation and

management of computer-based information systems, particularly software applications

and computer hardware. Today, it has grown to cover most aspects of computing and

technology. The reason why it has catapulted in importance is due to the improving

accessibility, awareness and utility of technology. It is a common fact that a countrys IT

potential is paramount for its march towards global competitiveness, healthy GDP and

defense capabilities.

IT professionals perform a variety of duties ranging from data management,

networking, engineering computer hardware, database and software design, to the

management and administration of entire systems. With the already high penetration of


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conventional personal computer and network technology, coupled with the growing

convergence of information, communication and entertainment, the industry is now

keenly focused on the integration with other technologies such as mobile phones,

automobiles and televisions etc, thereby increasing the demand for such jobs.

Performance :

In India, it is important to make the distinction between IT and ITES (IT enabled

services). The latter refers to services delivered over telecom networks/ Internet to a

range of external business areas (Colloquially referred to as KPO and BPO) and is treated

elsewhere on this website (see ITES industry overview). Hence, we shall focus on the IT

industry here by limiting the discussion to electronics hardware manufacturing and

software development and services.

Despite the unprecedented global economic downturn, the Indian IT industry has

weathered the storm well, and will achieve sustainable growth going forward.

3.5.3 Computer network specialist:

Computer networking allows one computer to connect to other in a limited area or

beyond, and exchange information. Network specialists design, implement and monitor

computer networks.

3.5.4 Ethical Hacker :

An ethical hacker is employed by an organization to protect its computer network.

Hacking is felony, but when it is done on request and under a contract between an ethical

hacker and an organization, it is legal.

3.5.5 MIS professional:

A management information systems (MIS) professional collects, analyses data and

provides information in formats that can be used by different departments of an

organization accordingly.
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3 Finance Department