TRAINING AT
FOOD CORPORATION OF
INDIA (FCI)
To gain the practical knowledge.
To learn about cash management.
To gain the knowledge of how funds are managed by the FCI.
OBJECTIVES
COMPANY PROFILE
FCI was set up on 14th January 1965 under the Food Corporation Act 1964.Objectives of FCI are as follow:-oEffective price support operations – to safeguard the
interest of farmers.oTo make food grains available at reasonable prices,
particularly to vulnerable section of the society.oTo maintain buffer stocks as measure of Food
Security.oTo intervene in market for price stabilization .
INTRODUCTION
Focus of FCI is on:-Professional excellence in Management of food grain and other commodities.
Transparency and accountability in transactions.
Optimum utilization of resources.
Continual improvement of systems, processes and resources.
POLICY
METHODOLOGY
CASH MANAGEMENT
CASH MANAGEMENT
INFLOWS OUTFLOWS INVESTMENT OF SURPLUS
CASH MANAGEMENT AT FCI
CASH MANAGE-
MENT BOOKS
RECEIPTCASH BOOK
PAYMENTCASH BOOK
PETTY CASH BOOK
RECEIPT CASH BOOK:- provides a complete record of all cash, cheques, demand drafts, and money orders etc, received.
DATE PARTICULARS VOUCHER NO.
DR. CASH
DR. BANK
CR. SUNDRY DEBOTRS
SUNDRY DEBTORS LEDGER FOLIO NO.
CR CR CR
PAYMENT CASH BOOK:- provides a complete record of all payments in Cash or by cheques or outward remittances.
DATE PARTICULARS
CHQ. NO.
VOUCHER NO.
DR. CASH
DR. BANK
DR. SUNDRY CREDITORS
SUNDRY CREDITORS LEDGER FOLIO NO.
DR.
DR.
PETTY CASH BOOK:- provides a convenient means of recording all the small transactions.Expenses of petty cash in total will be incorporated daily in the “payment cash book” by the name “petty cash control”.DATE PARTICUL
ARSVOUCHER NO.
CR. PETTY CASH
DR. PAY AND ALLOWANCES DUE
DR. ALLOWANCES FOR TRAVELLING
DR. POSTAGES
DR. PRINTING & STATIONERY
DR.
DR.
DAILY CASH BALANCES ARE RECORDED IN THE FOLLOWING WAY:-
DATE OPENING BALANCE FOR THE DAY
RECEIPTS FOR THE DAY
TOTAL (2+3)
PAYMENTS FOR THE DAY
CLOSING BALANCE (4-5)
1 2 3 4 5 6
At the end of each month, receipt and payment cash book are totaled and a summary of total cash transactions is prepared in the following form:-PARTICULARS AMOUNT
(RS.)BALANCE AT THE BEGINNING OF THE MONTH
ADD (+) :-
1. Receipts other than transfer in and inter-office-remittance inwards
2. Transfer in
3. Inter-office-remittance inwards
TOTAL
LESS (-) :-
1. Payments other than transfer out and inter-office remittance outwards
2. Transfer Out
3. Inter-office-remittance outwards
TOTAL
BALANCE AT THE END OF THE MONTH
IOR deals in providing credit limit to the zonal office, depot, and regional office according to its credit cash limit for the transaction.
Balance in the evening is transferred to Mumbai branch which is the head office of the west zone.
In a day the office cannot withdraw more than its credit limit and next it starts with the new balance.
INTER-OFFICE-REMITTANCE (IOR)
FORMAT OF IOR :-
ACCOUNT OF :-ACCOUNT NO :-
DATE PARTICULARS DR. CR. BALANCE
STEPS TO CALCULATE IOR :-
DETAILS OF THE BANK• IOR deals
with cheque and not in cash
VERIFICATION OF TRANSACTIONS• Verification
with payment cash book
CALCULATON OF IOR• Preparing
list of daily transactions according to bank statements
Breaks out a single general ledger account into subgroups that share common information.
Provides more detailed information about individual accounts than a general ledger.
SUBSIDARY LEDGER
FORMAT OF SUBSIDARY LEDGER :-
DATE PARTICULARS J/F
DR. CR. BALANCE
STEPS TO PREPARE SUBSIDARY LEDGER :-INDEX
INDIVIDUAL ACCOUTS FOR EACH PARTY
DR. ENTRIES- SALES BOOK
CR. ENTRIES- RECEIPT BOOK
REMAINING BALANCE-BALANCE
ADVANTAGES OF SUBSIDARY LEDGER :-
It helps to maintain systematic record.
It helps to give accurate information for a particular time period.
It is useful for the future reference.
Training provided was really good.
Practical knowledge.
It was a great experience.
Applicability of theoretical knowledge in the real world.
POSITIVE ASPECTS
Cash Management is done manually.
Records were mainly maintained through books, which created complexity.
Lack of motivation among employees.
Working environment is not good.
Lack of appreciation and acceptance of new ideas.
NEGATIVE ASPECTS
Working environment should be improved.
Employees should be motivated.
Training should be given to employees for new methods.
Computerized work.
SUGGESTIONS