ACCOUNTING PRACTICES IN BHEL

COMMON ACCOUNTS MANUAL IS FOLLOWED

CENTRALISED FUND MANAGEMENT

UNITS ARE TREATED AS INDEPENDENT PROFIT CENTER

FOR INTER UNIT TRANSACTIONS PERIODIC RECONCILIATION IS DONE

UNIT LEVEL BUDGETORY SYSTEM IS FOLLOWED

COMMON ACCOUNTS MANUAL ISFOLLOWED

CLASSIFICATIONS OF ACCOUNT HEADS

EQUITY & LOAN 000–006FIXED ASSETS AND INVESTMENTS 007-014CURRENT ASSETS 015-026CURRENT LIABILITES 027-036INTER DIVISION CLEARING A/C 037-042PROFT & LOSS A/C 043-054PURCHASES 055-062EMPLOYEE COMPENSATION 063-071OTHER EXPENDITURES – MANUFACTUREING, ADMINSTRATIVE, SELLING & DISTRIBUTIONS 072-085OTHERS 086-099

CENTRALISED FUND MANAGEMENT

MANAGEMENT OF FUNDS

ALL RECEIPTS FROM UNTIS ARE TRANSFERRED TO COPORATE

REQUIREMENTS FOR ALL PAYAMENTS ARE RECEIVED

FROM CORPORATE THROUGH CASH CREDIT ACCCOUNT

  UNITS ARE TREATED AS

INDEPENDENT PROFIT CENTRES

 

UNITS

FOR EACH UNITS,TARGETS FOR – TURNOVER, PROFIT Etc ARE FIXED

EACH UNIT IS RESPONSIBLE FOR ACHIEVING ITS TARGETS.

PERFORMANCE OF EACH UNITS ARE MEASURED ON THE BASIS OF ACHIEVMETNS OF ITS TARGETS

FOR INTER UNIT TRANSACTIONS, RECONCILATIONS WITH ALL UNITS IS

DONE PERIODICALY

INTER UNITS TRANSATIONS

THESE MAY BE FORMATERIALS & EXPENSES

PERIODIC MEETINGS ARECONDUCTED FOR RECONCILIATION

OF VARIOUS ACCOUNT HEADS OF ALL UNITS

EFFECTIVE BUDGETORY SYSTEM AT UNIT LEVEL

UNIT LEVEL BUGETORY SYSTEM IS FOLLOWED.

ALL BUGETED ESTIMATES ARE APPROVED BY BOARD.

ACTUAL PERFORMANCE IS COMPARED WITH BUGETED ONE

PERIODICALY & SUITABLE ACTIONS ARE TAKEN FOR

DEVIATION FROM THE BUDGET.

THANK YOU

S.MURUGAN