PROJECT- B

ACCOUNTING SYSTEM OF OHPC Ltd.:-

1.1INTRODUCTION:-

To know about the accounting system of OHPC Ltd. It is required to know about

accounting and its functions,systems,objective and importance.

Accounting is the art of recording, classifying and summarizing the

business transations which are in terms of money and interpreting the result there

off.

1.1.1 FUNCTIONS OF ACCOUNTING:-

1. It records business transations which are in terms of money.

2. It classifies and puts similar transaction into one group. For example:-all

transaction relating to sales of good are recorded in sales account. Similarly

all purchases are recorded in purchase account and so on.

3. It summarizes all the business transactions. Trading account, Profit and loss

account and Balance sheet are the summarize statement of all transactions

during a year.

1.1.2 SYSTEMS OF ACCOUNTING:-

Mainly there are three systems of accounting to record the business

transactions. These are:-

1. Cash System:-

Under this system only cash receipts and cash payments are recorded. It

means credit transactions are not recorded at all. This system of accounting is

followed, in case of non-trading concerns such as- club, school, college etc.

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2. Single Entry System:-

Under this system the cash and personal aspect of the transactions are

recorded and the impersonal transactions are not recorded at all. Hence this

system is unscientific and inaccurate.

3. Double Entry System:-

Each transaction have a two side effect. Whenever we receive something,

we give something. Under this system both the aspects of each transaction are

recorded to get a complete picture. This system is commonly used now-a-days.

1.1.3 OBJECTIVE (AIM) OF ACCOUNTING:-

Accounting is having a no. of objective:-

1. To keep systematic order, systematic record.

2. To find out the true profit or loss.

3. To know the financial position on a particular date.

4. To communicate the information to the interested parties.

5. To help in planning and controlling varies business activities.

6. To meet legal requirements.

1.1.4 IMPORTANCE OF ACCOUNTING:-

Accounting provides more benefit to the various parties of the business.

The parties interested are owner, creditors, investors, employees, government,

general public etc.

(a) Owner:-

Owner brings land,labour and capital and organizes all the factors of

productions.So he is anxious for the safety and effective utilization of his

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money.He is interested to know the progress of his business time to time.All

the information are supplied by accounting and helps him to decide whether

to increase or decrease the business.

(b)Managers:-

Manager needs detail information at a regular interval to plan future

activities and to exercise proper control over man and materials.All the

detail and regular information is being supplied by accounting.

(c) Creditors:-

Banks,other lenders of money,suppliers,of goods and services are

termed as creditors.They want to know the credit worthiness of the

business.They are interested to know whether they will get back their loan

along with interest or not.From profit and loss account and balance

sheet,creditors will be able to know such information which will help them

to decide whether to continue,restrict or increase the volume of credit.

(d)Employees:-

Employees are interested for their salary and bonus.Bonus depends upon

the profit earning capacity of a business.So they insist on carried preparation

of profit and loss account.From the financial statement they can know

whether their bonus and salary are inaccordance with the profit earned or

not.

(e) Investors:-

A investor who wants to invest money in a business is interested to

know the financial position of a business. From the financial statements he

can know the earning capacity and will decide whether to invest or to switch

over to other business.

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(f) Government:-

Government is interested for tax-purpose such as: - sales-tax, income-

tax etc. So government is always interest to know the profitability position

of the business. Hence the government always depends upon accounts of the

business for this purpose.

(g)Consumers:-

Consumers want qualitative product at a reasonable prices. If the

accounting control system is a sound one it will keep the cost of production

down, which in turn reduces the prices. So, a good accounting system helps

the consumers by providing goods at reasonable prices.

(h) Information Agencies:-

Financial press, reporting agencies, trade associations, statistical

department etc. sometimes require certain information for their use.

Accounting makes available of such data to them.

1.2 PURPOSE OF THE STUDY:-

Accounting system is important because to know the financial position of the

business at the end of the year. Basically accounting system consists of 2 parts -

Position Statement or Balance Sheet and Income statement or Profit and Loss

account. This is a good opportunity given by the organization to be with them and

make the study. The purpose of my study is to get practical knowledge about how

they are maintaining their accounts, and how they are preparing their profit and

loss account and balance sheet. It will also acquaint me with the formats and the

software, if any, that the firm uses for maintaining the accounts.

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1.3 OBJECTIVE OF THE STUDY:-

The main objective of the study is:-

To know the process of accounting system in OHPC.

To know about how they are able to maintain their accounting system, like

how they prepare their accounts, starting from ledger to final accounts.

1.4 SCOPE OF THE STUDY:-

The scope of the study is that to get practical knowledge how to prepare

accounts in the firm. And to improve knowledge about the maintenance of

accounting system in an organization.

1.5 RESEARCH METHODOLOGY:-

To conduct the study will be collected from primary and secondary sources. The

secondary data can be collected from the reports of the firm. To get primary data

interviews and discussions will be conducted with different persons of the finance

department. This will be done using some suggested questions.

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2.1 ANALYSIS OF THE STUDY:-

To fulfill the study the data will be collected by asking questions to the company

secretary of finance department.

Finance wing is working at Corporate Office under the control of Director

(Finance). Director (Finance) is supported by finance executives and other staff

among whom the work is distributed.

2.2 Major Works Of Finance Wing(Department):-

The work of finance wing in Corporate Office is mainly divided into four

sections.These are as follows:

a) Fund And Pension Section

b) Payroll and Bill

c) Cash section.

d) Account and Audit Section

2.2.1 Fund and Pension Section:

Basically this section looks after the following works mainly,

1) The Provident Fund accounting for all employees of Corporation.

2) Gratuity Payment.

3) Pension Fund accounting and payment of pension to Retired Employees.

4) Liasioning with lending institutions and payment of loan.

5) Rehabilitation Assistance fund and others.

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2.2.2 Payroll and Bill Section:

1) Passing and Payment of salaries and works bill.

2) Investment of funds.

3) Filling of return with Govt.,Income Tax Authority and other statutory

authority.

2.2.3 Cash section:

1) Maintainance of cash book and bank books.

2) Dealing with various banks like UBI, SBI, IDBI, PNB, AXIS and other

banks and reconciliation thereof.

3) Timely release of funds to units.

2.2.4 Accounts and Audit Section:

1) Preparation of trial balance.

2) Preparation and Compilation of annual accounts.

3) Inter unit reconciliation.

4) Monitoring of information under budgetary control.

5) Filing of return under Income tax, Wealth Tax.

6) Smooth conduct of Statutory Internal Audit, AG Audit, Tax Audit And

Cost Audit.

2.3 OHPC follows major accounting policy:

1. OHPC follows Mercantile System of accounting and recognizes significant

items of Income and Expenditure on accrual basis except those with

significant uncertainties.

2. OHPC follows the historical cost convention method in accordance with the

generally accepted accounting principles, the provisions of companies

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Act,1956 and the mandatory accounting standards while preparing its

financial statements.

2.4 Preparation Of Accounts:

Financial functions in the field units is fully centralized in the Finance Wing. All

initial accounts comprising cash book, bank book, journals and ledgers are

maintained in the Finance Wing of the field office as well as Corporate Office Day

to Day transaction and journals are entered in computerize system, i.e. tally

package by all units and Corporate Office of OHPC. At the end of each financial

year,Finance Wing of field units prepares the annual accounts in respect of their

unit. These accounts are audited by branch auditors of respective units who are

appointed by C&AG (Controller and Auditor General Of India). Field units submit

their accounts to Corporate Office for consolidation.

2.5 Authentication Of Accounts:

Corporate Office consolidates all accounts and prepares the annual account of the

corporation as a whole. After preparation of accounts, it is presented before audit

committee for their expert views on accounts. Director (Finance) takes it to the

Board of Directors for authentication. After authentication of the annual accounts,

it is submitted to statutory auditor who is appointed by C & AG, Govt. of India.

Statutory Auditor audits the accounts and gives his observations on the accounts.

Management complies his observations. Finally statutory auditor presents the

annual accounts before the C&AG with his audit report.

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2.6 Adoption of Accounts:

C& AG observes the statutory auditor’s report on annual accounts and

management comply these observation. With these annual accounts is placed in the

AGM for adoption by shareholders of OHPC.

2.7 Filling Of Accounts:

After adoption of annual accounts in the AGM, financial statement are to be filed

with ROC within 30 days of AGM (Annual General Meeting).

2.8 M.I.S(MANAGEMENT INFORMATION SYSTEM):-

OHPC followed MIS system to maintain the accounts which is as follows:-

NATURE OF INFORMATION PERIODICITY OF PREPARATION

Reservoir Level & Status of power station Daily

Power Generation Data Daily,Weekly,& Monthly

Monthly Sale Of Power Monthly

Man in position at corporate office & Units Monthly

Tenders As & When Floated

Information Under The Right To Information

Act

Monthly

Information Under The Industrial Relation At

The Power Stations

Daily

Accounts Of The Power Station Quarterly

Annual Reports Yearly

3.1 FINDINGS:-

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The major findings from data analysis are as follows:-

1. The organization accounting system is totally computerized.So, they

followed different kind of MIS system.

2. The accounting system is based on accrual basis.

3. The organization is used latest version of TALLY software i.e. 9.2.

4. The accounting system which the organization followed is based on

Quarterly, Half-yearly, Yearly.

5. All the accounts which are prepared by the employees are daily up-to-dated.

6. They are using different formats for the preparation of accounts,like

Journal,Ledger,Trial Balance,Final Accounts.

3.2 SUGGESTIONS:-

Though the company don’t face any difficulties for handling the finance system

which is presently being followed,the organization has to change their accounting

system for not finding any error in the preparation of accounts in future. And also

the firm can compete with other firms of same business,who are adopting new

accounting system.

3.3 CONCLUSION:-

With this I can conclude that, the company is using different types of accounting

formats like Journal,Ledger,Trial Balance,Final Accounts,to maintain their policy.

Overall the accounting system of the firm is good.

TRAINING AND DEVELOPMENT SYSTEM OF OHPC Ltd.:-

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1.1 INTRODUCTION:-

Training is the process of increasing the knowledge and skill for a definite purpose.

The purpose of training is basically to bridge the gap between job requirements and

present competence of an employee. Training is aimed at improving the behavior

and performance of a person. It is a never ending or continuous process by which

conceptual and theoretical knowledge is gained for various purpose.

One of the main objective of the training programee is to strengthen the skill and

knowledge of the existing employees and secondly to bring them to a required

level. So,far the organization has given training to various managerial and non-

managerial personnels.To enhance the training programee,OHPC has started site

training, also they have started various work-shop on various techniques.

1.2 PURPOSE OF THE STUDY:-

Training and development plays a vital role in an organization because, it is the

process of teaching new employees the basic skills they need to perform their jobs.

Basically training and development process consist of five steps:- Needs analysis,

Instructional design, Validation, Implementation, evaluation. This is the

opportunities given by the organization, to improve my potential, and have a good

experience also. The purpose of my study is to acquire practical knowledge in the

field of training and development. And to get knowledge about how they trained

their employees, by following different processes. I want to learn how the new

employees are provided induction and training when they join the organization.

Further I want to learn how training need analysis is done and subsequently how

they are trained and evaluated after training.

1.3 OBJECTIVE OF THE STUDY:-

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1. To identify and understand the strategic issues which affect training.

2. To identify different training phases in the firm.

3. To identify different training methods and describe evaluation of training.

1.4 SCOPE OF THE STUDY:-

To gain the practical knowledge to improve managerial performance by

imparting knowledge, changing attitude or increasing skills by training, and

know how it helps to enhance the productivity.

1.5 RESEARCH METHODOLOGY:-

The whole data for the study will be collected from primary and secondary

sources. The secondary data can be collected from the different reports of the firm.

To get primary data interviews and discussions will be conducted with different

persons of the human resource department. This will be done using some suggested

questions.

2.1 ANALYSIS OF THE STUDY:-

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To fulfill the study the data will be collected by asking questions to the manager of

human resource department.

2.1.1 ABOUT OHPC TRAINING CENTER:-

OHPC training center was established in May 1999 at Chandaka Industrial Estate

with the assistance of Department for International Development (DFID) –

Government of UK. It has been accredited with recognition by Central Electricity

Authority as stipulated in the Indian Electricity Rules and is an authorized centre

for imparting training to ITI qualified/non qualified technicians.The teaching

facilities include modern methodologies of classroom presentations with OHP and

LCD projectors and with well equipped laboratories and workshops.The faculties

are from the experienced field staff of OHPC Ltd.with adequate knowledge on

Hydro Power Plants.They have been given training in leading Technical-Training

Institute of the country.

Established in May’99 in the sprawling surroundings of Export Promotional

Industrial Park,Chandaka and admist the many technical institutes there around,the

center provides an ideal environment for the training to personnel and their

assisting staff engaged in supervision, O&M in the Hydropower Plants.

Available infrastructure also facilitates organization of MDP and seminars.

Modern methodologies of class-room presentations with the use of OHP and LCD

projectors / panels get supplemented with well equipped laboratories and

workshops.

Air conditioned class rooms ensure continuous curriculums throughout all seasons

of the year. Computer facilities and use of CBT aided packages in training herald

the computer culture of new millennium. High-tech equipment like signal

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generators, programmable logic controller and HV test probes are a part of the

inventories.

In-house reprographic facilities and well furnished stores for workshop-

consumables help the center to function self sufficiently.

2.1.2 OBJECTIVE OF TRAINING CENTER:-

The objective of OHPC Training Center is to upgrade the skill of all

categories of employees of OHPC to provide induction training to new entrants,

refresher training to existing employees and also to organize managerial

development programees(MDP) for the executives of the organization. Apart from

the employees of OHPC, training is also imparted to summer interns from different

colleges and universities.

The objectives of training are:-

To upgrade the skill of all categories of line staff in hydro power plants of

the country in bringing them to the required skill-level as stipulated in the

statutes of Indian Electricity Rules,1956.

To provide Induction-trining to new entrants and Refresher training to in-

plant employees,thus maintaining the cycle with inbuilt upgradations.

To design and develop customized plant-specific training courses for

participant hydro-plants.

To provide sustained training programees through organized seminars for

corporate managers in developing their managerial,executive as well as

strategic skills.

To develop human resource in acquiring innovative ideas and creativity

those can contribute to productivity improvement.

To develop effective communication skill and sound work culture.

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The faculty at the center for the ongoing training programee have been trained at

leading Technical-Training institutes of the country.Further they have been

specially trained by internationally reputed experts of ESB,Ireland and Northern

Electric,UK. Well versed in the art of imparting training ,they create adequate

conditions for success of programees.

2.1.3 SEMINARS OF OHPC LTD.:-

The executives from other states are invited to provide best training

programee.OHPC has also been conducting short-term workshop seminars.For best

style of training OHPC has got recognition as categories are institute from Central

Electricity Authority(CEA).The training period for different programees varies

from each other.The maximum capacity for one batch of trainees are 32. No

stipend is given to the trainee.To appraise the performance of the employees

undertaken training a feedback form is also given.OHPC sends executives outside

Orissa for training purpose.Some of the training institutions are:-

Engineering Staff College,Hyderabad.

Administrative Staff College,Hyderabad.

National Productive Council,Delhi.

Seminars in the much needed Management Development Programees for all

corporate employees in general and for the executives in the particular are

organized through Guest Faculty sourced from leading external msanagement

institutes.

So far successful training of 71 batches of Technical Non Executives(TNE)

comprising 1295 TNEs and 02 batches of Administrative Non-Executives

(ANE) comprising 22 ANEs from all units of OHPC have been completed

in a cyclic manner at the Training Center.

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A total no. of 27 junior Executives (Assistant Managers and Junior

Managers) of technical discipline have been imparted refresher training

successfully at the Training Center in the year 2002.

A total number of 111 Management trainees/Graduate Engineer Trainees

have been successfully imparted orientation cum induction training at the

Training Center during 2004 to 2009.

The management Trainees and Graduate Engineer Trainees of 2009 batch

have undergone training relating to their discipline at CSREM,

Paralakhemundi and PMI, Noida respectively.

Students of CIPET Bhubaneswar have been attended a program on Post

Diploma in Machine Maintenance at the Training Center in 2004.

So far, a total of 791 executives have been imparted training outside the

state on various aspects relating to their discipline from 1998 till date.

MDPs are also being conducted regularly at the Training Center. A total of

559 executives have participated in MDPs during 1999 till date.

Training programmes on various aspects like power plants operation,

maintenance, protection and control, ORV Act & Rules, Factories Act and

Rules, Executives Performance Appraisal, etc are also conducted at the Unit

premises for both executives and non-executives regularly.

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A total of 11 technical executives have been sent to foreign nations like

germany, Russia and Japan etc. to attend training programees on various

technical aspects related to Hydro Power during 2003 to 2008.

Executives in the level of Directors from Finance and HRD have been to

UK to attend a training programee sponsored by DFID in 1999-2000.

3.1 FINDINGS:-

1. The training system of the organization is based on yearly.

2. The training programee which is conducted is a good one for present and

future development.

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3. The employees of the organization take the training positively,and also the

training aims at improving the skill of the employees.

4. The training and development process is an effective one to overcome their

weakness,and also the employees can move ahead into the future with

confidence.

3.2 SUGGESTIONS:-

There are certain loopholes which I came to know during my training programee to

OHPC,need to be taken care of for the betterment of the organization.

The payment system or compensation system should be based on proper job

evaluation.

There should be system of potential appraisal to identify employees who

have potential to take higher responsibility. Also there should be a periodic

review of the system.

The management should come down to the workers level to work hand to

hand,understanding and sharing each others feelings and difficulties which

will help in building a familiar atmosphere in the organization.

The training policy should be maintained, consistent effort should be there

for its development and intensive campaign programee should be done in

highlighting the benefits of trainings.

The awareness between the employees should be created to participate more

and more in collective bargaining process.

Mechanism for rewarding good work or any contribution made by the

employees should be improved.

Employees should be encouraged to experiment with new methods and try

out creative ideas.

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3.3 CONCLUSION:-

Orissa Hydropower Corporation Ltd. is a Government of Orissa Enterprise,which

is engaged in Hydro Power Generation in all its six units all over Orissa and sells it

to GRIDCO,its sole customer.

During my stay here,I gained a lot of knowledge and also got an exposure to the

various HR practices adopted by the organization.

The HR department of OHPC is well organized and also the HR policy of the

organization is well defined.At OHPC the method of recruitment and selection are

good. A written test,GD and interview follow the selection of candidates.

In OHPC two types of training programees are conducted namely in house and

external training programee.These training programees are designed,developed and

conducted to acquainted the employees with the changing environment.

Welfare facilities are provided to the employees for their betterment and towards a

prosperous future of their members.The educational, medical, recreational facilities

are provided to the employees, which changed their life style, and increase their

standard of living.

At last it can be concluded that, the working environment of OHPC Ltd. is very

plesent.

ORGANISATION STRUCTURE OF OHPC LTD.:-

1.1 INTRODUCTION:-

An organization structure is a mainly hierarchical concept of subordination of

entities that collaborate and contribute to serve one common aim.

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Organisations are a variant of clustered entities.An organization can be structured

in many different ways and styles,depending on their objectives and ambience. The

structure of an organization will determine the modes in which it operates and

performs.

Organisational structure allows the expressed allocation of responsibilities for

different functions and processes to different entities such as the branch,

department,workgroup and individual. Individuals in an organizational structure

are normally hired under time-limited work contracts or work orders, or under

permanent employment contracts or programee order.

1.2 ABOUT THE STAFF:-

CMD:- Chairman Cum Managing Director

CGM:- Chief General Manager

GM :- General Manager

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DGM:- Deputy Genaral Manager

AGM:- Assistant General Manager

DM:- Deputy Manager

AM:- Assistant Manager

MT:- Management Trainee

1.3 TYPES OF DIFFERENT STRUCTURE OF OHPC:-

The entire organizational structure of OHPC has been divided into three basic

wings such as,

Operation

Finance

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HRD

1.3.1 Operation:-

On introduction of Availability Based Traffic with effect from April 2003 and

application of Electricity Act 2003,It has become important on the part of

generators to maintain high level of machine availability and plant load factor.

Hydro power generation has special place in the load management under ABT

regime.

1.3.1.1 Activities:-

For efficient remaining of their Hydro power stations, the operational wing of

OHPC has been recognized to carry out following activities,

Monitoring the functioning of power plants

Preparation of database

Monitoring of Renovation and Modernization Programmes

Planning for future R & M Programmes and new projects

Inventory and Procurement Monitoring

Generation and maintainance planning and monitoring

Tariff and PPA including coordination with GRIDCO and OERC

Computerization and online communication

Coordination with Govt. and Semi Govt.bodies.

1.3.2 Finance:-

After the formation of OHPC under the Reform Act a separate finance wing with

experienced and qualified executives has been created to manage the corporate

finance.

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1.3.2.1 Activities:-

For efficient remaining of their Hydro power stations, the finance wing of OHPC

has been recognized to carry out following activities,

Resource Management

Budget Allocation

Banking

Loan and Investment

Account and Audit

Taxation

Personnel Entitlement

Provident fund, Pension and Gratuity fund.

1.3.3 HRD:-

OHPC was formed interms of the Orissa Electricity Refotm Act,1995 and the

Orissa Electricity Reform (Transfer & Undertakings, Assets Liabilities,

Proceedings and Personnel) scheme Rules 1996.Consequent to formation of

OHPC, professional were inducted into the organization. The organization

structure of OHPC is annexed being a newly, set up corporation with employees

from elsewhere.

1.3.3.1 Activities:-

For efficient remaining of their Hydro power stations, the HRD wing of OHPC has

been recognized to carry out following activities,

Industrial and Relation and welfare

Contract Labour

Welfare Activities

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Other Functions

General Administration

Estate

Legal

Public Relation

2.1 FINDINGS:-

1. The firm follows the same structure for a period of time.

2. There has been a proper chain of command which is integrated to all channel

or department of the firm.

3. All the employees of the organization are very cooperative in nature.

2.2 CONCLUSION:-

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Overall I came to know that, although the company is following old structure from

many years but, there is a good coordination among all the employee, employers

and various department.

BIBLIOGRAPHY:-

1. Human Ressource Management,V.S.P Rao, 2nd edition.

2. Management Accounting, (2009), Sharma And Gupta, (Kalyani

Publications, 9th edition).

3. Fundamentals Of Accounting, Kalyani Publications, 8th edition.

4. http://www.wikipedia.com.

5. http://www.ohpcltd.com.

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