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PUNJAB STATE POWER CORPORATION LIMITED (Regd. Office : PSEB Head Office, The Mall, Patiala - 147001)
OFFICE OF THE CHIEF ACCOUNTS OFFICER/E&A (WAD Wing, Patiala)
PAN : AAFCP5120Q Regd. No. UG0109PB2010SGC033813
To Addl. S.E./Senior Executive Engineer / Accounts Officer (DDOs) P.S.P.C.L Memo No. 960/1190 Dated : 4-4-2014
Subject : Submission/online posting of Annual Adjustment Account for the month of March,2014 - Instructions thereon
As you are aware that the financial year 2013-2014 would be closing as on 31st March
2014.It is brought out that Annual Accounts of PSPCL for Financial year 2013-2014 will be prepared
under the provisions of Company Act, 1956. These Annual Accounts will be considered by the Audit
Committee before the same are placed before the Board of Directors for approval. The Annual Accounts
will also be submitted to statutory Auditors for conducting Audit. Thereafter the Supplementary Audit
will be conducted by the Representatives of CAG/India (RAO).
The Preparation/Finalization/submission of Final Accounts involves a long process as detailed below:
1. Compilation of Accounts at Divisional/Accounting Unit Level & submission thereof to this office.
2. Post Audit of Accounts & carrying out corrections, if any. 3. Consolidation of Accounts for the PSPCL as a whole. 4. Finalization of Annual Statements of Accounts. 5. Approval of Annual Statements of Accounts by the Audit Committee. 6. Adoption of Annual Statement of Accounts by the PSPCL. 7. Submission of Annual Statements of Accounts to Statutory Auditors for Audit. 8. Submission of Annual Statements Accounts to C.A.G. Punjab (RAO) for its Supplementary Audit.
9. Attending of Audit observations, collection of replies from field officers /D.D.Os & settlement of Paras.
10. Recasting of Accounts, consequent on compliance of Audit observations. 11. Approval of audited annual statements of accounts by Audit Committee. 12. Final scrutiny of Recast Account by A.G. Punjab and return of account to the PSPCL after
certification.
13. Approval of Audited Annual Statement of Accounts along with Director’s report by PSPCL.
14. Adoption of Audited Annual Statement of Accounts, Director’s report by Shareholder in
the Annual General Meeting (AGM).
15. Filing of Annual Statement of Accounts and Annual returns with ROC. 16. Printing of Annual Statements of Accounts. 17. Submission of Audited Accounts, Reports & statistics to Central Electricity Authority and the State
Govt. for laying the final Accounts/Audit Report on the table of the Punjab Vidhan Sabha.
The Basic Accounting Principles & Policies contained in Commercial Accounting System Vol. I part II and various other instructions issued from time to time require a number of adjustments to be carried out in the March Adjustment Account. These adjustments have been detailed in the enclosed annexure and it should be ensured that all relevant adjustments applicable to your accounting unit are incorporated in the March -2014 (Adjustment Account).
It must also be ensured that all adjustments are carried out and no adjustment is left which has material effects on the profitability and financial results of the company for the year ending 31 March 2014 and so that profitability and financial results of the company can be depicted in true & fair manner through the Annual Accounts.
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Time Schedule
1.Normal March 2014 monthly account online posting - up to 20th April 2014
2. Date for Vetting of Adjustment Account in WAD/ZLAU - up to 7th may 2014
3. Final Date for online submission of
Annual Adjustment Account March-2014 - up to 09th May 2014
Date for checking of Depricaition Register- Upto 28th April 2014
(Yearwise Abstract of Assets and Depriciation must be prepared)
Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed
It must be ensured that strict compliance of the entire accounting requirements, outstanding paras/observations alongwith requisite schedule, statements and certificates is made.
There must not be any entry in deleted Account Code
Debit may not be posted in Credit Based Account Heads and similarly Credit may not be posted in Debit based Account Heads.
TAN number of the division must be indicated on Trial Balance.
It may kindly be noted that the PSPCL has decided to meet its statutory obligation of finalization of Accounts by the due date & to achieve this end; you are requested to ensure that the above schedule is not violated.
IT MAY PLEASE BE CLEARLY UNDERSTOOD THAT NO ACCOUNT / ADJUSTMENT RECEIVED AFTER THE ABOVE DATE SHALL BE ENTERTAINED AND THE RESPONSIBILITY FOR NON-INCORPORATION OF YOUR ACCOUNT OR ANY ADJUST MENT THE CONSEQUENCES ARISING THEREFROM SHALL BE ENTIRELY YOURS. D.A/Instructions
(RAKESH PURI) Chief Accounts Officer/E&A Punjab State Power Corp. Ltd. Patiala.
Endst. No 1191/1291 Date 4-4-2014
Copy of above is forwarded to the following for kind information please:-
Chief Accounts Officer to Dir/Finance. PSPCL, Patiala 1 CAO(HQ)/ChiefAuditor/FinancialAdvisor/CostController/CAO(Rev)/CAO(ARR)/FA&CAO/GGSST
P, under PSPCL/PSTCL. 3 All Dy. CAOs / Dy. CAs / Dy. FAs under PSPCL / PSTCL. 4 Dy. CAO/Corporate Audit, PSTCL, Patiala. 5 Company Secretary, PSTCL/PSPCL. 6 Accounts Officer/Banking, PSTCL/PSPCL, Patiala. 7 Accounts Officer/A&R and AO/WM&G, PSPCL/PSTCL, Patiala. 8 Accounts Officer/GPF and Accounts Officer/Pension, PSPCL, Patiala. 9 Accounts Officer/Broad Sheet, PSPCL/PSTCL, Patiala. 10 Accounts Officer/WAD, PSTCL, Patiala. 11 Sr. PS to CMD, PSPCL/PSTCL, Patiala. 12 Sr. PS to Director/Finance, PSPCL, Patiala. 13 Sr. PS to Director/Finance& Commercial, PSTCL, Patiala. 14. Sr. PS to Director/Administration PSPCL, Patiala 15. Sr. PS to Director/ Generation, PSPCL, Patiala 16. Sr. PS to Director/HR, PSPCL, Patiala 17. Sr. PS to Director / Commercial, PSPCL, Patiala 18. Sr. PS to Director/Distribution, PSPCL, Patiala 19 SE/IT, PSPCL, Patiala for uploading the instructions on website of PSPCL (under link-What’s New/
Important links)
(Ved Vyas Sharma) Dy Chief Accounts Officer/A&R PSPCL, Patiala
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INSTRUCTIONS
As per Accounts circular no. 3/2012 the Account of March has been bifurcated into two parts as
under:
(i) Normal monthly Account
(ii) Annual Adjustment Account
For the purpose of preparation of Annual Adjustment Account March-2014, besides the
instructions in vogue on preparation of Accounts, your special attention is also drawn on the following
points which must be kept in view while finalizing the Annual Adjustment Accounts of March- 2014.
1. (i) Expenditure on all Assets completed/commissioned during the year shall be
transferred monthly to appropriate fixed assets accounts (GH 10-Fixed Assets) from
the Group Head 14 Works-in-Progress by debit to GH-10 per contra credit to GH-
14.
(ii) List of works completed /commissioned and transferred to GH-10 should invariably be
supplied with the Journal voucher.
(iii) Assets not in use should be identified and adjusted by credit to GH-10, for the original
value (estimated value if not known) and debiting the appropriate Account code under
Group Head-16 with written down value and Depreciation to GH-12 (Appropriate
Account Code).
(iv) It must be insured that all the Capital Expenditure is booked to right scheme.
(v) It may be ensured that Capital expenditure is not booked to GH-10 directly. Capital
Expenditure is Booked to GH-15 or GH-14 as the case may be and on
commissioning transferred to GH-10.
(vi) It may be ensured by the accounting unit/units that capital expenditure has been
booked against budget grant allocated by the competent authority and funds stands
allocated.
2. Depreciation
(i) Depreciation on fixed assets including vehicles/Machinery purchased/acquired up to
31.3.86, in respect of all accounting units (both O & M and construction
Divisions/Accounting Units) will be provided centrally by the Head Office.
(ii) However in construction divisions, transfer entry for the depreciation on
vehicle/machinery as provided in the relevant estimates should be prepared by debit to
Account Head 15.311 (Working of machinery for capital work-vehicles operation) per
contra credit 77.9 (Depreciation and related costs chargeable to capital works) and
account of vehicles/machinery should be closed as per instructions contained in chapter
18 "R&M of Board's Vehicles of 'Expense Accounting Manual'. At the end of the year,
the net difference between the expenditure and its recovery (15.311 and 15.361) shall be
debited/credited to account Head 15.2 with the orders of the competent authority and
thereafter be distributed to works on the basis of expenditure incurred.
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3. Depreciation:-
(i) (Up to 16-4-2010) on fixed assets including Vehicles/Machinery purchased on or after
1.4.86 and transferred to fixed assets upto16-4-2010 both in respect of O &M Divisions
and construction divisions shall be provided by debit to Account Code 77.171/77.150 per
contra credit to Account Code 12.7/12.5 respectively.
(ii) However in Construction Divisions/Accounting Units, the estimate of vehicle/machinery
should be closed as per chapter 18 R&M of Board's Vehicles of 'Expense Accounting
Manual' in the manner laid down in Instruction No.2.
4. Depreciation:
(i) (w.e.f 17-4-2010 onwards) will be charged on Assets as per Rates prescribed in
Company Act-1956.
(ii) The Relevant schedule XIV of company Act 1956 is attached at Annexure-B.
Depreciation for the year 2013-14 strictly be provided accordingly as per
procedure and rates provided in the schedule.
(iii) Depreciation registers must be got checked from WAD sections (Before 28th
April), for depreciation charged and accounted for in 2013-14 Account.
(iv) Where, during the financial year, any addition has been made to any asset, or
where any asset has been sold, discarded, demolished or destroyed, the
depreciation on such assets shall be calculated on a pro rata basis from the date of
such addition or, as the case may be, upto the date on which such asset has been
sold, discarded, demolished or destroyed.
(v) It must be ensured that Depreciation credited to GH-12/GH-65 is tallied
with GH-77/GH 83.6
(vi) Depreciation Charged on the Assets be only incorporated in Adjustment
Account-2014. As such the values under GH 77.1, 77.2, 83.6 and 65.6 be
tallied with value under GH 12 and GH 13. No other adjustment be
incorporated in Adjustment Account.
5. (i) Assets transferred by construction Divisions should be classified under
Appropriate scheme/detailed head while issuing U-cheque by responding
Accounting Units.
(ii) In such cases Photostat copies of Asset cards should invariably be sent with
account for checking of scheme and depreciation. It should be ensured that
Assets are correctly classified to the relevant scheme by responding accounting
units as mentioned on the Asset Card of originating accounting unit.
6. Maintenance and updation of Assets registers/cards:-
(i) Maintenance and updation of Assets registers/cards in respect of all the
assets be ensured as per detailed instructions in manual on Capital Expenditure &
fixed assets (Refer Chapter - 29). PSERC has also issued directives in this regard.
(ii) Two number copies of following certificate (Duly signed by
Sr.Xen/Addl.SE/DDO) to the effect that Assets cards in respect of all the assets
belonging to the accounting unit have been prepared and this record has been
maintained in the fixed asset Registers (FARs) be supplied with the March
Accounts (Refer Accounts Circular No. 12/2002 dt.16.12.2002 and 13/2003
dated 21.08.2003) and DyCAO/A&R,PSPCL Patiala memo no.8327/8458
dated17-12-2013.
(iii) Year-wise abstract of assets must be prepared in Asset Register..
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“Certified that the fixed Assets Register (FAR) and Fixed Asset Cards of this Division have
been maintained & updated and Assets as on 31-3-2014 have been physically verified by me
as per instructions contained in Chapter XXIX of “Manual of Capital Expenditure and
Fixed Assets. There are no discrepancies between items physically verified and items
appearing in Fixed Assets Register/record maintained under this division.”
7 (a) The net difference of store incidental expenses (storage charges) and their recovery (15.331 and
15.371) will be transferred to account Head 79.110 Material cost variance account-capital as
provided in chapter 50 of ‘Material Accounting Manual'.
7 (b) All capital stock accounts & O & M stock Accounts shall be merged into material stock and a
statement of stock in the Performa given below may be supplied along with the Adjustment
Account of March, 2014.
STOCK
Dr Cr
Particulars Account Head Amount Particulars Account Head Amount
Capital Material Purchase
22.201/22.219 Issue Capital of material(Consumption)
22.301/22.319
O&M Material Purchased
22.221/22.239 Issue of O&M Material Consumption
22.321/22.339
Material Returned by Contractor
22.361/22.379 Issue to Contractor 22.341/22.359
Transfer Inward 22.401/22.419 Transfer outward 22.421/22.439
Capital Material Stock Adjustment
22.501/22.519 Transfer of material within Division/COS
22.450
O&M Material stock adjustment
22.521/22.539 Capital Material Stock Adjustments
22.501/22.519
O&M material stock Adjustment
22.521/22.539
Total Total
Total of the Stock (details as indicated above) should tally with the difference of Debit and Credit under
code 22.6 of the Trial Balance for the period 2013-14.
7(c) Balance under the head 16.411, 16.415, 16.416, 16.417, 16.419, 16.421 and 16.412 &
16.422 indicate the value of damaged/repaired T/F's along with accumulated depreciation. The
balances outstanding under these heads should represent the actual physical balance of these T/Fs
as on 31.3.2014. A certificate to this effect needs to be recorded by the C.O.S. Misclassification and
wrong adjustments under these heads should invariably be set right before March 2014.
8. UnBilled Revenue:-The adjustment of unbilled revenue and Units shall be made in accordance
with the instructions issued by CAO/Revenue, PSPCL, Patiala vide Memo no.404/501/CAO/RM-
31 dated 12-2-2014.
9. Revenue on account of sale of power and theft of energy should be segregated into Current year
and prior period and credited to relevant account code. Where such segregation was not done
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during the year, the revenue/ theft of power pertaining to prior period may be worked out now and
adjusted in the account for March 2014.
10. Theft of Power:-Most of the Divisions are misclassifying the amount of theft of power
detected/recovered by various wings of PSPCL. In this regard accounting procedure as explained in
Account circular no. 10/2009 and 02 / 2010 required to be followed and incorporated in March
2014 account. GH 23.7 must be tallied with GH 61.7
11. Ensure the implementation of accounting procedure as detailed out in circular No. 6/2003 and
21/2003 dated 24.10.2003 issued by CAO/WM&G for accountal of Direct depositing of energy
Bills in the Post Office wherever it is applicable. Balances under GH 24.511 should be “Nil”
12. In the case of collection of energy Bills through Sukhmani Society at Ludhiana transactions which
have already taken place may be brought to account as per the instructions issued vide Accounts
Circular No. 1/2004 dated 4.2.2004.
13. Similarly, accounting procedure as detailed out in circular no. 13/2005 issued by CAO/WM&G for
accountal of energy bills through Sewak Bill Payment Machine must also be implemented /
ensured.
14. E-payments:-
(i) Regarding E-payments (GH 24.541) by the consumers, instructions/guidelines issued
vide Accounts Circular No. 13/2009 may be complied with strictly.
(ii) It must be certified that Total amounts realized through e-payment during 2013-
2014 have been accounted for and tallied with the T.B.
15. In order to exercise proper control over the payments pertaining to the collection of Electricity Bills
through M/S Easy Bills Ltd. (GH 24.521) existing instructions/Accounting procedure must be
ensured.
16. Follow Accounting procedure as detailed out in Circular No. 9/03 dated 14.5.03 and Account
Circular No. 14 dated 25.8.2003, issued by CAO/WM&G for incentive based prepaid scheme
(IBPP) for deposit of Electricity Bills.
17. Accounting-procedure was detailed in circular No. 5/2003, 10/2006 & 6/2007 issued by
CAO/WM&G for accountal of free supply of electricity upto 200 units per month to SC/BPL
families having sanctioned load upto 1kw. In this regard Accounts Circular No. 3/2008 and
11/2010 may be implemented accordingly. According to these instructions the adjustment of
Revenue subsidy received from state Govt. will be accounted for on cash Basis i.e. in the year in
which such subsidy is received.
18. The dues excluding (ED, D.S.S.F and octroi on electricity) from permanently disconnected
consumers are required to be adjusted by debit to Account Code 23.5 (with detailed sub-account
code) and minus debit to account code 23.1 for SOP. ED, D.S.S.F and octroi on electricity shall
however remain booked under account code 23.2, and on realization subsequently the amount will
be credited to 23.2 & 23.5 as the case may be.
19. Debit and credit side of Account Head 23.3 (Sundry Debtors Collection Account)
should be equal and there should be no balance under this account head.
20. The gross debit during the year to account head 23.201 to 23.210-(Sundry Debtors for Electricity
Duty) should tally with the gross Credit to Account Head 46.300 (Electricity Duty payable to
Govt.) and 23.231 to 23.240 sundry debtor for enhanced DSSF should tally with Gross credit to
46.301).
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Likewise gross debit of Account code 23.211 to 23.220 (Sundry debtors for Octroi on electricity)
should tally with the gross Credit to Account code 46.320(Octroi on Electricity payable to
municipal corporation/committee and NAC's).
21. (i) Ensure implementation of accounting procedure as detailed in circular no. 16/2006 for
revision of E.D.13% (8% E.D. and 5% dedicated social security fund).
(ii) The debits & credits of sub codes under Account Head 61.5 (Electricity Duty and other
state Levies) should be equal. Credit of Account code 61.501 to 61.510 should tally with
debit of 61.541 and 61.531 to 61.540 should tally with Debit of 61.551. Likewise credit
of Account code 61.521 to 61.530 should tally with debit of 61.561.
(iii) It may also be ensured that collection charges @ 10% are invariably deducted and the
amount is credited to Account code 62.950. Collection on account of Octroi on
Electricity made in March is deposited with the concerned M.C. during next year i.e. in
April after deduction of 10% collection charges. This results into understatement of
revenue in the annual accounts of PSPCL to that extent. It may therefore, be ensured
that 10% collection charges on collection of Octroi made during 3/2014 are adjusted
through JV by debit to 46.320 per contra
credit to 62.950.
22. Implementation of instructions/accounting procedure elaborated vide Account circular
No. 9/09 and 14/09 regarding payment/adjustment of electricity bills due from Pb. Govt.
Departments may be ensured as per applicability.
23. As per Guidelines contained in Chart of Accounts of PSPCL, the Accounts Head 61.6
will show the amount assessed on account of rental for metering equipments and service
line of the Board used by consumer and Account Head 61.9 will show all Misc.
recoveries from the consumer. This implies that service charges/Misc. charges are to be
included in GH 61.9. So, follow the procedure in line with Chart of Account. Those
Accounting Unit, who have not operated the Accounting Head 61.9 as yet, must make the
necessary adjustments in March 2014 Adjustment Account.
24. Cross subsidy surcharge recoverable from open access consumer shall be debited to
Account code 23.811 to 821 per Contra Credit to 61.841-51 as per Account Circular
13/11.
25. (i) All outstanding incoming IUT Bills including (Bills of COS) should be adjusted
positively. The verification of IUT Bills should be got done at personal level and U-
cheque issued. Similarly, the U-cheque may be obtained in respect of all the IUT Bills
raised from April,1986 onwards by your division/Accounting Unit and adjusted in the
Adjustment Account of March, 2014 without fail.
(ii) Balance outstanding, under Account Code 46.941(Credit awaiting IUT) may also be
cleared by Collecting IUT Bills& issuing U-Cheques to concerned offices. All DS
Divisions must ensure that debits on account of damaged transformers returned to C.O.S.
are raised invariably by issue of IUT Bills & U-Cheques obtained/accounted for in
monthly account of 3/2014. The Balance of IUT Bills as per Trial balance of March,
2014 should be reconciled with IUT ledger (IUT-5). Instruction issued by CAO/A&R
vide his memo No. 22/248 dated 13.1.09 must be complied.
(iii) Non-Clearance of IUT Bills may attract disciplinary action against the delinquent,
officer/official concerned.
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(iv) However in unavoidable circumstances which are beyond control of DDO if there is
any outstanding Balance (from 1-4-86 to 31-3-2014) under GH 30 to 39 (Except GH-
38) IUT wise detail of such Balances be attached.
26. Financial Management and information System has been introduced vide Accounts Circular
No.10/2011 and further Accounts Circular no.7/2012 was issued for accounting of minimum
Balance in the Bank and Bank charges deducted by the Bank. For proper compliance of these
circulars by the DDOs the following Accounting Entries are to be taken into Account for preparing
the March 2014 Adjustment Account:
Sr. No Event Dr Cr Record/form through
which entry is
passed
1 Receipt of funds by the
DDO in their Bank Account
24.401
Disbursement
A/c SBOP
24.410
Transfer of
Funds A/C
JV based on Bank
statement
2 Issue of cheques by DDOs Relevant Head 24.401
Disbursement
A/c
Cash Book
3 Stale Cheques - 46.910Stale
Cheques
(-) 24.401
Disbursement
A/C
Journal Voucher
4 Issue of Fresh Cheques
against Stale Cheques
46.910 stale
Cheques
24.401
Disbursement
A/C
Cash Book
5 At the end of month U-
cheque to be issued by
DDO’s for funds received
from H.O
- 37.000
(-) 24.410
Transfer of
funds A/C
U-cheque cash Book
6 Surrender of Funds by
DDOs
24.412
Surrender of
Funds A/c
24.401
Disbursement
A/C
Cash Book
7 Raising of IUT Bill by DDO
to HO for Funds Surrender
(-) 24.412
Surrender of
Funds A/C
IUT-37
- Journal Voucher
8 Receipt of U-cheque fro HO
against Funds surrendered
37.000 IUT-37 U-cheque Cash
Book
9 As per Bank statement if any
Bank Charges deducted by
the bank
76.232
Bank Charges
24.111
Cash in Bank
A/C
Journal Voucher
10 DDO shall Recoup Bank 24.111 24.410 Journal Voucher
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Charges deducted by Bank
from March-2013 to Feb-
2014 in the month of March
2014 by raising demand
through FMIS
Transfer of
Funds A/C
Note:
1. Debit of 24.401 Account Head i.e Disbursement A/C should be equal to the
Funds transferred by the HO i.e 24.410(Funds Transferred A/C)
2. The total of u-cheques issued by the DDO to the Head Office for Funds
Transferred must be equal to the amount of Funds transferred A/C i.e 24.410 A/C
Head.
3. Credit of 24.401 should be equal to the amount of cheques issued during year by
the DDO including amount surrendered (Account Head 24.412) to the Head
Office. This figure should be matched with the cheque Drawn Statement for the
year 2013-14.
4. The Bank Charges deducted by the Bank during the period March 2013 to
February-2014 must be adjusted through Journal Voucher (Entry no.9 above).
However, recoupment of Funds from the Head office to maintain the minimum
Balance Account, if not done earlier may be made in the Month of April, 2014.
5. It may be ensured that there is no Balance in Account Head 24.401, 24.410
and 24.412.
27. Total amount of Remittance into bank during the year under the Account head (24.501,24.511,
24.521, 24.531 and 24.541) is to be minus debited per contra debit to Inter Unit Account 33-
(Remittance to Head Office) and IUT Bills raised on AO/Banking PSPCL, Patiala. The IUT Bills
shall indicate amount remitted from April-2013 to March-2014 as per Trial balance and it shall be
supported by Remittance Statement. Also ensure implementation of instructions issued by
CAO/WM&G vide circular No. 4/06 for acceptance of payment of Electricity Bill through M/S
Easy Bill Ltd. by debit to GH-24.521 and user charges to GH-78.881.
28. A U-cheque shall be issued in favor of AO/Banking Drawing for the amount of E.D. collected
(credit of GH-23.201 to 23.210 and 23.231 to 240) by debiting to GH-46.300 and 46.301 per contra
credit to GH-37.000 (Blank Code). Similarly U-cheque shall be accounted for by A.O./Banking in
Adjustment account of March, 2014 by minus debiting the amount to GH-46.300/46.301 per contra
debit to GH-37.000 (Blank) to avoid the double debit/credit to GH-46.300/46.301 in Balance Sheet.
29. The U-Cheque and the IUT Bills should be sent through special messenger along with Cheque
Drawn Statement for March 2014 and Remittance into Bank Statement for March, 2014. These
should be delivered to A.O. (Banking Section) and U-Cheque obtained from him for the IUT Bill
in respect of Remittance into Bank. The U-Cheque obtained should be adjusted in the Adjustment
Account for March, 2014 through U-Cheque cash book by debit to Inter Unit Account Head
37.000 (Blank code) per contra credit to Inter Unit Account 33.
Financial Management and information system has been introduced vide account circuler
no. 10/2011 And 7/2012 Accounting procedure as per this circular may be complied with
strictly.
Page 10 of 36
As per Financial Advisor/Banking Reconciliation, PSPCL, Patiala Memo no.1701/1916 dated 7-3-
2013 regarding charging/ Recovery of Amounts of dishonored Cheques following certificate
along with Bank Reconciliation statement for march-2014 may be sent to AO/BR,PSPCL, Patiala.
“Certified that in cases of cheques dishonored during the financial year 2013-14 due amounts
(Including Bank charges & surcharge, If any) have been/recovered from respective
consumers/parties.”
30. GPF Adjustments:-
i. Credit for the month of April 2013 Account Head 57.120:- U-Cheque shall be issued in
favour of Accounts Officer/Funds-1 PSPCL, Patiala for the credit appearing in the Account Head
57.120 by minus credit to Account Head –57.120 and credit to U-Cheque Account (GH 37.000).
ii . Debit for the month of April 2013 and May 2013 Account Head 57.120:- An IUT Bill for the
Debit Account Head 57.120 during April & May shall be raised to AO/Funds-1 by Debit account
Code IUT-36 and (-) debit to account Head 57.120. The u-cheques shall be obtained by a
representative of the Division/Accounting unit from AO/Funds-1 and adjusted in March 2013
Adjustment Account properly if not adjusted earlier.
iii . For credit of May , June and July Account Head 57.126:- The credit standing in account
Head 57.126 was transferred to AO/Banking through U-cheque by (-) credit to GH 57.126 and
credit to U-cheque account 37.000.
iv. For Debit of June, July and 1st August Account Head 57.127:- An IUT for Debit
standing in account Head 57.127 shall be raised to AO/Funds-1 by debit to IUT-36 and (-) debit to
account code 57.127. The u-cheque shall be received from AO/Funds-1 and adjusted in March
2014 Adjustment Account Positively if not adjusted earlier.
v. Treatment of Account Head 57.126 from August 2013 to March 2014:- DDO must ensure
that Zero balance shouls appear in account Head 57.126.
vi. Treatment of Account Head 57.127 from 2nd August 2013 to March 2014:- DDO must
ensure that Zero balance should appear in Account Head 57.127.
( GPF schedules of Debit/Credit from 4/2013 to 3/2014 should be got checked by DDOs in the
office of AO/Funds-1 and photocopy of certificates regarding the same issued by GPF section
must be attached with March 2014 Adjustment Account by DDO while submitting the
Account to WAD wing)
31. Adjustment of Salary and Pension disbursed centrally at Head Office (Prepared by
the DDO online):-
PSPCL vide Jt. Secy/Personnel PSPCL, Patiala O/O no.203/Cadre-1 dated 30-10-2012
has created AO/Centralized Salary payment and AO/Centralised Pension payment
Cells under DyCAO/Centralised Pay & Pension. Accounting Procedure has been
circulated vide Accounts Circular No.11/2013. Regarding salary and Pension
payments following Adjustments will be required to be carried out:-
Centralised Pay Cell:-
i. The regular Salary drawn by Field offices in March-2014 and to be paid by
the centralized pay Cell in the Month of April 2014 shall be Booked by
respective Drawing Offices in the Month of March 2014 for net salary
Payable, GPF and CPF under GH 44.360 as done in Previous months and U-
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cheque for aggregate amount standing in GH 44.360 up to March 2014 shall
be issued in favour AO/Centralized Pay Cell on or Before 31st March 2014
and net Balance in GH-44.360 should be “Nil” in March 2014 Accounts.
ii. It shall be ensured by all the field offices that there shall not be any Debit or
Credit under GH 57.126, GH 57.160, GH 57.165 and GH 44.310(To the extent,
the same had been transferred to Centralized Pay Cell every month as per
Accounts Circular No.11/2013 and 15/2013 under GH 44.360) While
Finalizing the March Adjustment Account the instructions issued vide memo
no.1321/1521/WM&G/A-247/Vol-1 dated 14-03-2014 by AO/WM&G, PSPCL,
Patiala may also be kept in view.
Centralized Pension Cell:-
i. The Pension Drawn by the Field offices for the month of March 2014 and to
be paid by the Centralized Pension Cell in the Month of April 2014 shall be
Booked by respective Drawing Offices in the month of April 2014 for net
Pension Payable as per practice in Previous years and the U-cheque for
aggregate amount standing in GH 44.361 regarding Pension paid up to
March 2014 shall be issued in favour of AO/Centralized Pension Cell on or
before 31st March 2014 and Net Balance in GH 44.361 should be NIL in
March 2014 Accounts.
ii. It shall be ensured by all the field offices that there shall not be any Debit or
Credit under GH 44.312 ( To the extent the same had been Transferred to
Centralized Pension Cell every Month as per Accounts Circular No.11/2013
and 15/2013 under GH 44.361)
iii. While Finalizing the March 2014 Account all the DDOs/Officer-in-Charge
shall take into consideration instructions issued by centralized Pay and
Pension Cell from time to time which are placed at Following Link:-
http://www.pspcl.in/docs/dy_cao_centralized_pay_pension.htm
New Pension Scheme:-
i. Legecy fund (CPF Arrear) of NPS employees (W.e.f 1-1-2004 to 30-6-2013)
is required to be transferred to national Securities Depository Limited
(NSDL). To transfer the legacy funds to NSDL, IT section has Developed an
online system for all DDOs (Under utilities under Heading CPF update) in
salary package. All the DDOs are required to enter and certify that the data
of each subscriber into this interface duly tallied with the Trial Balance. It
has already been clarified vide FC 31/2013 that Employer share/Matching
share is to be added by the concerned DDO. It should be noted that Data
upto june -2013 is to be entered in this package. Schedule(Abstract, detailed
month wise and certificate) for this period can be downloaded from this
package after logging into certify. Schedule for july/2013 is to be prepared
manually in excel format as shown Below:
Sr.
No
Name of
Employee
Month/Year Employee
ID
PRAN
no.
Employee
Share
Employer
Share
Total
Page 12 of 36
After completing the above process U-cheque shall be issued in favor of Accounts
Officer/NPS&GPF Trust, PSPCL, Patiala for credit to the Account Head 57.160 and 57.165
from 1-1-2004 up to July 2013 by minus credit to Account Head 57.160 & 57.165 and credit to
u-cheque Account (37.000). The break up of the amount shall be supplied with the u-cheque
i.e figure from Jan/2004 to july/2013 as per credit statement (CPF credit schedule) as
mentioned above.
ii. An IUT bill for the debit to the Account Code 57.160 and 57.165 for the final
Payments of CPF (Resigned & Death cases) shall be raised to AO/NPS &
GPF Trust by Debit to Account Code 36 and Minus Debit to Account Code
57.160 and 57.165. The U-cheque shall be obtained by a representative of the
Division/Accounting unit from AO/NPS&GPF Trust and adjusted in March
2014 Account positively.
iii. From August 2013 and onwards AO/Centralised Pay Cell is issuing the
consolidated U-cheque for all Locations to AO/NPS. So DDOs are not
required to issue U-cheque for this period but they are required to submit
month wise schedule in the above format up to March 2014. This schedule
will be e-mailed at [email protected]
iv. Similarly on receipt of:
1. U-cheque indicated above NPS&GPF Trust Section will account for
the amount in March 2014 Account by Debit to U-cheque
account(37.000) per contra credit to Account Head 57.160 & 57.165.
2. IUT Bill as above , U-cheque will be issued by credit to U-cheque
account(37.000) per contra debit to Account Head 57.160 & 57.165.
Note: Each DDO must ensure that deduction should not be more than
10%(Basic+DA). Pending PRAN forms should reach the office of
AO/NPS immediately and salary of new entrants covered under NPS
should not be released until PRAN number is allotted. The amount
of regular subscription of CPF is being deposited by AO/NPS on the
basis of Salary Package figures as certified by different DDOs every
month. Therefore if there is any wrong deduction of CPF, same
should not be rectified through JV but the recovery/Excess may be
adjusted in next month salary. DDO concerned and Divisional
Accountant concerned shall be responsible to comply with the above
instructions.
As per instructions issued vide Account Circular No.14/2013 the
credit standing the Account code 44.431(Re-issue of I-pin/Pran card)
various locations shall be transferred through U-cheque by the
respective DDO to AO/NPS at the year end.
32. The payment made by Divisions to the retirees on account of pension; gratuity etc. shall be
transferred to A.O/Pension PSPCL, Patiala through IUT Bills for the period 1.4.2013 to
31.3.2014 by debit to Account Code IUT-36 per minus debit to relevant Account Code. The U.
Cheque should be obtained personally from the A.O./Pension and Accounted for in March, 2014
Adjustment Account positively. (Refer Commercial Accounting Cell Memo No.
Page 13 of 36
23435/24635/CAC-41 dt. 24.9.87). Arrear of pension, leave encashment and gratuity shall be
accounted for as per accountcirculer no. 2/2011 and 7/2011 and AO/WM&G,PSPCL, Patiala memo
no.10435/10936 dated 18-11-11.
A list of cases, the payment of which has been made on the basis of judgments of authority under the
payment of gratuity Act, 1972 may also be supplied to A.O/Pension on the below noted Performa :
Sr. Name of the AO/ Pension Date of Authority Amount Interest Total
No. retiree file No retirement of Chief/IR of addl.
No.-&Date gratuity
1. 2. 3. 4. 5. 6. 7. 8.
A list of pensioners who have filed court cases in the court of authority under the payment of
Gratuity Act, 1972 may also be supplied on the below noted Performa :-
Sr. Name of the AO/ Pension Date of Date of Amount of Addl.
No. retiree file No. Retirement Filing suit Gratuity Claimed
1. 2. 3. 4. 5. 6. 7.
Besides above, the following information may also be supplied:- Total Number of pensioners as on 31-3-2014
Pensioners above the age of 80 years
Pensioners above the age of 65 to 80 years
Pensioners of Age of 58 to 65 years
CE SE Others Total Family Pensioner
Others Family Pensioners
Others Family Pensioners
Others
The P.P.O.s of such retirees/legal heirs of the deceased who were getting
pension/family pension earlier and since been died may please be returned with separate covering
letters for each P.P.O. alongwith the I.U.T Bill alongwith detailed list i.e. showing the name of
pensioner, P.P.O No., date of death and date upto which payment has been released.
33. BSNL Mobile Connections to P.S.P.C.L. Officers.
The payment of the bills of all the Mobile Connections will be made centrally by the office of
Secretary (General Section). The expenditure up to the prescribed limits will be debited to account
code 76.115. (The expenditure beyond limit for individual user if any will be debited to 28.411-
Recoverable from employees use of Mobile Phone beyond prescribed limits, at the time of making
payment of the bill. The recoveries affected by the respective accounting units will be credited to
accounts code 46.943. The U-cheque of the recoveries made and kept under account code 46.943
shall be issued in favor of A.O / Cash, PSPCL, Patiala) by debiting the amount to this account code
along with schedule of recoveries be sent to Dy. Secretary General, who after verification will send
the same to A.O/ Cash, PSPCL, Patiala for incorporating the same in the accounts and crediting the
amount to Account Code 28.411.
34. Deposits including earnest money in the form of Bank Guarantee, investment Certificates, etc.
received during the year 2013-2014 may be accounted for as below :-
Dr Cr
Security/E.Money/fromcontractors/Suppliers in form of FDs(other than Cash) 28.930 46.102
Security from Consumers(In form of FDs) 28.932 48.200
Security from Employees-Other than Cash 28.933 46.921
At the time of releasing securities (other than cash) above entries shall be reversed.
Page 14 of 36
35. Income Tax, LIC, Benevolent Fund etc. All the deductions from employees on account
of falling under the account head 44.4 shall be paid in the current financial year.
36. Sales Tax, Service tax, Income Tax deducted at source and building construction Cess
etc. deductions (which were kept under the GH- 46.9) shall be remitted to the
concerned department in current financial year. Under no circumstance the balances
outstanding under these Account codes be transferred to Account code 46.926.
37. Service Tax:-Regarding Service Tax AO/FR, PSPCL, Patiala has issued instructions vide
memo no.4470 dated 20-3-2013. These instructions must be complied with strictly and
service Tax deducted be deposited timely with concerned department to avoid penalty at
later stage..
38. All the Divisional Officers and A.O./Debenture should follow the procedure regarding repayment
of debenture and interest thereon as per instructions issued during the previous year. The balance
outstanding in GH-51.209 (Interest accrue and due on debenture (Public) which is to be cleared by
issue of IUT Bill by concerned accounting unit where debit is outstanding must be cleared in
current year account ending March, 2014 and by collecting U-Cheque from Debenture Cell.
39. Employee Cost:-
For Booking of Employees’ cost to capital Works instructions issued by AO/WM&G,PSPCL
Patiala for the year 2013-14 vide Accounts Circular no. 2/2014 may be followed.
Generally, All employees' costs in respect of Construction Divisions shall be fully charged to
capital works. While wages of work charged staff/daily labour will be charged to Capital work on
which they are actually employed.
The salaries of regular staff will be allocated to the assets at the year end in the prescribed manner
(i.e. salaries of regular establishment, should first be transferred to Account Head 15.2, if not
already done, then to be distributed amongst works in the ratio of expenditure incurred during the
year and shown as a separate item in works register/account). A column should be added in the
works register for this purpose (if the supply of register with revised form is not received). No part
of the staff cost chargeable to capital works shall be allocated over the capital expenditure on
furniture, office equipment Misc. equipment and vehicles. Monthly contribution of P.F. and FPS
will also be capitalized and directly charged to works on whichlabour is employed.
The pay & Allowances of the Gazetted Establishment i.e. Xens, AEEs and AEs in respect of
construction Divisions/Units for the year 2013-2014 shall be intimated by A.O. (Pay and Accounts)
to the concerned Divisional Office
(no debits shall be raised by Pay & Accounts in this regard.)
The Divisional Office will account for the above expenditure by Debit to 15.202 or concerned
Capital Work (s) per contra credit to 75.910/76.9. As regards allocation of expenditure pertaining
to (i) Circle Office/CE Office, Design Directorates in regard to Capital locations (whether incurred
in the division or Head Office) and (ii) Head Office, instructions will be issued by Dy.CAO
Concerned..Percentage of employees cost to be added to Capital Works as intimated by Dy. CAO
of concerned organization/CAO may be properly classified under A/C Code 75.930-Capitalization
Page 15 of 36
of General Establishment and 75.935 capitalization of head office establishment charges.As
regards C.E./RE instructions already in vogue may be followed.
The expenditure allocated to the account head 15.2 shall have to be distributed on prorata basis on
the works expenditure incurred during the year 2013-14 and booked under Group Head-14.
Booking of Employees costs by accounting units (under DS Organization) where no activities
relating to O & M shall be carried out:-. The 'Op.' Const;& APDRP Divisions should charge 1% of
the Capital Works Expenditure incurred during the year instead of 11% by debiting to GH-14 per
contra credit to 75.930. Head Office employee’s costs equal to 0.7% should be charged as usual as
per the instructions already in vogue.
No part of the employees cost is to be capitalized on the replacement of damaged transformers
(including cost of new transformers/repaired transformers) erection charges and transport charges
which are charged to the Group Head 14 Works in Progress as reduced by the net depreciated cost
(WDV) of the transformer. It implies that regular employees cost @ 11.7% on Capital Works/GH-
14 excluding the cost of such replacement of damaged transformers is to be capitalized at the end
of the year by DS Divisions Only.
40. Provision of Bonus should be made (if it is payable) along with detail of employees with their
basic pay. Adjustment required as per Account circular no. 17/2013 must be carried out in order to
close the account under GH. 44.320 by Debit to GH 83.5 ( for expenditure excess of provision) or
credit to GH 65.8( For excess provision). The amount remained unpaid at end of March,2014 be
adjusted by debit to GH 44.320 per contra credit to GH 44.220(Unpaid bonus)
41. (i) Liability for un-paid wages of work charged staff/daily labour shall be provided by debiting
to the Account Head 75 employees cost per contra credit to Account code 44.211 unpaid
wages of work charged/daily wages establishment. Provision of Board's share for EPF
may be made on wages for 3/2014.
(ii) The interest on loans and advances to staff may be calculated and debited to the Account
Code 28.360 (Interest accrued but not due on loans and advances to staff) per contra credit to
Account Code 62.210 for the year 2013-2014. The employee wise sub ledger may be
maintained. The detail showing principal amount, rate of interest etc. should be supplied
with Journal Voucher invariably. It may be certified that Balances of loan Amounts of those
employees who have been transferred to other accounting units, also stands transferred to
such concerned accounting units.
(iii) Interest on cash securities deposited by the PSPCL Employees be provided by debit to
Account Code 78.853 per contra credit to Account Code 46.926 and is not to be reversed.
The interest shall be paid by debiting Account Code 46.926.
(iv) The advance/additional advance consumption deposit and metering security may be
segregated under the Account Code 48.120 (Advance consumption deposit from consumers)
and 48.100 (Security deposit from consumers-cash) respectively, if not already done.
(vi) Interest on consumer security deposits (metering security) Interest on meter security.
Account code 48.100/48.101 and advance consumption deposit 48.120/48.121 may be
debited to A/C Head 78.601 per contra credit to 48.300 to be cleared on actual relief to the
consumers through energy bills in 4/2014 by Dr. to 48.300 and Cr. 61.2. The balance
Page 16 of 36
outstanding under Account Code 48.300 at the end of 3/2014 may be adjusted now if the
same has not been adjusted earlier. A certificate regarding interest provided during 2012-13
on consumers securities has actually been passed on to concerned consumer may be
submitted with March 2014 Adjustment account.
(vii) Interest on interest bearing refundable deposits from consumer shall be adjusted by debit to
A/C Code 78.611 per contra credit to 46.713 JV must be accompanied by full details i.e.
name of consumers A/C No., principal, amount, rate of interest etc. Where the interest on
refundable deposits has not been provided for earlier years, it may be provided in March,
2014 by debit to account code 83.7 (interest and finance charge relating to the previous year)
per contra credit to account code 46.713.
Most of the Divisions are misclassifying transactions relating to adjustment of refund of interest on
refundable deposits. After the provision of interest accrued but not due is made under account code
46.713, subsequent entries should be made as under:-
Dr Cr When interest on deposits become due
46.713 48.310
When deposit and interest thereon is adjusted through energy bills
GH-47 GH-48.310
61.2 23.2
JV for ED/DSSF/Octroi 23.2 46.300 46.301 46.320
42. Adjustment of unutilized Service Postage Stamps, defaced revenue stamps, Stationary &
provision of liability for expenses/prepaid expenses should be made as per already existing
instructions.
43. Liabilities for Expences:-For provision of liability for expenses (GH 46.410/ 46.430) full detail
and copies of Bills must be attached with the J.V. For any excess creation of Provision than
the required the concerned office will be responsible.
44. (i) All expenditure (GH 74, 75 & 76) relating to financial year 2013-14 must be accounted for
in the month of March -2014 by creating provision for the same.
45. (i) Provisions with regard to guarantee fee on loans raised by PSPCL against Govt. guarantees
& interest on Govt. loans may also be made at the end of the year by Banking Loan &
Deposit section.
(ii) Provisions for liability for purchase of power should be made by I.S.B. Section by debit to
the head 70.1 per contra credit to account code 41.2 in the monthly account for 3/2014. In
the beginning of the subsequent year, this provision shall be reversed.
(iii) Transmission, SLDC & open access charges shall be accounted for as per Account Circular
12/2011.
46. (i) The deposit received from the consumers against damaged and burnt meters should be cleared on
the basis of reports of ME Divisions i.e. debit to 47.601 per contra credit to 62.930 (for repair
charges) or 62.940 where meter is declared unserviceable and is to be surveyed off. It may be
ensured by ME Divisions that charges recoverable from consumers on account of repair
charges/cost of damages/ burnt meters, are intimated invariably to concerned Sub-
Page 17 of 36
Division./Division for debit to consumer Account. The amount received from SP/General
consumers against damaged and burnt meter should be straight way credited to 62.930 (for repair
charges) and 62.940 for 50% cost of meter received. Expenditure incurred on new meters used for
replacement of damaged meters be booked to Account Code 74.531.
(ii) Division wise detail of Meters issued against burnt/damaged meters (quantity as well as amount) be
supplied by ME Divisions for reconciliation of expenditure booked by respective Divisions.
47. i.Power Factor Incentive:-As per A/C circular No. 14/2005 dated 2.9.2005, new debit Account
Head 61.239 for MS Power Factor Incentive, 61.249 for LS Power Factor Incentive and 61.319 for
Railway Traction Consumers have been opened. As such from 1.7.2005 onwards, Power Factor
Incentive, if any, given to consumers must be reflected in monthly account of March, 2014 on debit
side of GH-61.239, 61.249 and 61.319 respectively.
If no debit is received in these Account heads, a certificate to the effect that no
MS/LS/Railway Traction consumer has maintained Improved Power Factor during the year
shall be furnished by DDO with the monthly Account of March, 2014.
ii.Time of Day (T.O.D) Tariff :-
As per Accounts Circular No. 16/2013 dated 26-9-2013 new Debit Account Head 61.246 has
been opened to account for the TOD rebate allowed to LS consumers. However these
instructions are not being followed properly. It may be ensured that amount of such rebate
allowed is appearing in T.B
48. Closing Entry:-After the adjustment account for March, 2014 has been compiled, annual closing
entry should be passed by each Division/Accounting Unit debiting all income heads (Group Head
61 to 65) and crediting all expenses heads (Group Head 70 to 83) as appearing in the Trial balance
and crediting or debiting the net surplus/deficit to the Account Head -38 (Inter Unit Account -
Head Office Reserve Account). In other words in Trial Balance for 3/2014, net against Revenue
receipts & Expenditure will be Nil. Closing Entry in the Trial Balance shall be indicated in Red
Ink.
49. Un used Material:-The cost of unused material as on 31.3.2014 for Capital & O&M works shall
be physically verified by the SDO at the close of the year and adjusted through J.V. to be prepared
with detail of material debiting account head 22.640/22.650-Material at site Account (MAS A/C
for Capital and O&M works respectively by (-) debit to work concerned and entry reversed in
April 2014 account.
(i) The Cost of unused material/jobs in progress in workshops as on 31.3.2014 may be debited
to the account code 22.712 (jobs in progress) per contra credit to the workshop (14.450/460).
Entry shall be reversed in April, 2014.
The cost of material which has been received upto 31.3.2014 should be adjusted by debit to
stock/work and there should be no such amount outstanding in the schedule of advance
payment to supplier of the divisions where the material has been received.
50. Manufacturing Account of PCC Poles:- Manufacturing Account of PCC Poles should be
closed in accordance with the instructions issued vide No. 963/971 dated 17.5.89 and
1712/19 dated 11.4.90 and Accounts Circular No.9/2013 (Memo
no.3465/3466/WM&G/CAC-37/Vol-xi dated 11-6-2013.
Page 18 of 36
51. i) The Divisional Supdt. (Accounts) should further ensure that:-
a) There is no minus closing balance against any of the Works in form CE-21 Works Register,
unless there are specific reasons for it which should be recorded in form CE-21 against that
item. Scheme-wise expenditure under each scheme should be reconciled.
Form-27 must be complete in all respects.
b) All documents/Vrs/JVs/Stamped receipts are sent with the monthly account.
c) The Capital expenditure booked upto March, 2014 against an old work shall be brought
forward and posted in proper column in Form CE-21 Works Register. Works
expenditure/employees cost/and interest should be shown separately. Detailed head-wise
posting of expenditure against each work should be made.
d) Works Register:-The first five columns in form CE-21 Works Register be completed in
respect of all the sanctioned estimates under the attestation of Divnl. Suptd.(Accounts).
e) There is no minus item outstanding in the schedules/sub ledgers against any suspense
Head.
f) Complete details of Assets sold during the year 2013-2014 showing original cost of Assets,
date of installation, name of scheme, head of account and cost realized is supplied with the
Adjustment account.
g) Divisional. Supdt. (Accounts) should prepare tally sheet as per Annexure 'A' along with
Annual Adjustment Account for March 2014.
h) Cash Balance Report should be prepared duly signed by Divn. Supdt. (Accounts) as per
previous practice and balance in the chest should be kept as per instructions already in
vogue.
i) All the permanent and temporary imprests as on 31-3-2014 are to be adjusted and made NIL.
j. “Under no circumstances any balance should stand in Account Head 57.120, 57.126 and
57.127”. Adjustment Account will not be accepted if any balance stands in Account
Head 57.120, 57.126 and 57.127.
k. Party-wise Balances as well as Age analysis of all the outstanding balances under all
suspense Heads has been supplied with Adjustment Account.
l. Reconciliation and confirmation of Debtors and Creditors with the party concerned
has been supplied.
ii) Year wise break up and party wise balances of items outstanding as on 31.3.2014 in the Sub
Ledger, Schedule of Misc. Advances (28.401, 28.810, 28.868, 28.870, 28.874, 25.5, 26.5,
I.U.T. Code 30 to 39 and 23.1), for Account Code 46.926 (Misc. Deposits) and 47.305 –
Receipt for Deposit Works in the following Performa be supplied along with Adjustment
Account of March 2014.
Age-wise Analysis and party wise Balances for outstanding Items of Account Head
………………
Financial Year No of items Amount (In Rs.)
Page 19 of 36
iv) Scheme-wise and function wise details i.e. generation, transmission, distribution, (high
voltage, medium and low voltage) under Account Code 10 & 14 &GH-71 to 77 be supplied
in Performa annexure to Trial Balance.
v) That replacement of burnt/damaged meters should strictly be charged to Revenue to avoid
understatement of revenue expenditure and overstatement of capital expenditure and it
should reconcile with ME Divisions.
vi) TDS (GH-27.4):-Form-16A against deduction of Tax at source for any payment must
be got collected and sent to CAO/A&R( Income Tax Cell) in time preferably by 30th
June, 2014 so that the refund of the same may be claimed in the return for that year.
Any delay or lapse will be the responsibility of concerned accounting unit. A certificate
in respect of TDS is given as under:
"Certified that all amounts/deduction of TDS, which have been deducted by other
agencies, out of the amount paid/credited to PSPCL under PAN No. AAFCP5120Q
have been accounted for in account Head 27.4 and nothing is left to be incorporated
under this Account Code".
vii) There must not be any entry in deleted Account Code.
viii) Debit may not be posted in Credit Based Account Heads and similarly Credit may not be posted in Debit based Account Heads.
No amount should be debited to I.U.T. Code 39. In case of withdrawal of ATC (prior to
1.4.86) minus credit instead of debit should be given to I.U.T. Code -39. The amount of
debit outstanding under I.U.T. Code-39, if any, may therefore be set right in the Adjustment
account 3/2014.
52. The adjustment of expenditure on account of release of single point electric connection of
Rural poor House-hold under KutirJyotiprogramme may be made as per detailed instructions
issued by the CAO/WM&G Section vide circular No. 21/1989 circulated vide No. 13485/B-
10/S.C.-15/WM & G dated 14.7.89.
The IUT Bill as indicated above should be sent through special messenger and delivered to
AO/REC and U-Cheque obtained from his office.
The adjustment of expenditure on account of release of single bulb connection under new
Rajiv Gandhi GraminVidyutYojna may be made as per detailed instruction issued by CAO/
WM & G vide circular No. 23/2006.
The IUT bill as indicated in above said circular should be sent through special messanger
and delivered to A.O./RE and U-cheque obtained from his office.
53. (i) The Age-wise analysis and party wise Balances in respect of Advances to
Suppliers/contractors against stock/works and inventory and (ii)Age-wise analysis and
party wise Balances of Account codes 23.5, 46.926, 47.305, 44.210 and 44.211 be
submitted in the following Performa with the Adjustment Account- 3/2014.
Position as on 31-3-2014 No. of Items Amount(In Rs.)
1 Upto one year old
2 More than one year and less than 2 years old
3 More than 2 years and less than 3 years old
4 More than 3 years old
Page 20 of 36
In addition, the reasons for non treatment of balances, outstanding for more than 3
years as revenue, should be stated to enable this office to satisfy the Audit.
54. Completion certificates duly signed by the Divisional Officer in respect of all the Assets
transferred from GH: 14 works-in-progress to GH-10 Fixed Assets be furnished along with
Adjustment Account for 3/2014.
55. A certificate for reconciliation of sundry debtors for sale of power with the subsidiary records
maintained in the sub divisions, duly signed by Sr.Xen be furnished alongwith Adjustment Account
for 3/2014.
56. Transfer of Balances regarding merged/Reconstitution/Amalgamation/abolition of
Accounting Units:-
The balance outstanding under various Account codes, of Accounting Units, which have been
defunct or amalgamated or reconstitution specially Construction Divisions of MHP
Talwara/MPH talwara, RE construction Divisions, RE DS APDRP, Grid construction
Divisions Civil Divisions , Transmission Divisions, Recently Merged Grid Mtc. Divisions and
recently Bifurcated Commercial and Technical Divisions as a result of
merging/Reconstitution/Amalgamation/abolition be transferred by issue of IUT Bills, U-
cheques and accounted for in Adjustment Account of 3/2014 without fail. In case of any
failure responsibility will lie with concerned Offices.
Accounts Circular No.1/2014 strictly be followed in such cases.
57. Receipt of funds for Rural Electrification from the District Planning Board may be credited to
Account Head 55.140. (Receipt from District Planning Boards for Rural Electrification)
58. Year-wise Fixed Asset Register (FAR) in prescribed form for calculating depreciation shall be
maintained by each accounting unit in duplicate from 1.4.86 to date. One copy of the same be
supplied to this office with the Adjustment account so that the same is checked failing which
Adjustment account of your Division/ Accounting Unit for the month of 3/2014 shall not be
entertained.
59. The existing policy of booking of freight at gross rate and crediting the rebate allowed by/Railway
on advance payment of freight has been discontinued w.e.f. 1-4-2002. The freight on coal be
booked at net rates after deduction of rebate allowed if any by Railways on advance payment of
freight (ref. WM &G memo no. 14/20 dated 2-1-03).
On the same analogy discount availed on the purchase of power may be reduced from its cost
instead of showing the cost of power purchased at gross rate and crediting the discount availed on
power purchased and rebate availed for timely payment to the a/c code 62.930 (refer WM& G
memo no. 14/20 dated 2-1-2003).
60. Amount of grants/loan received on account of Accelerated Power Development
Programme/Accelerated Power Development Reform programme and expenditure on this scheme
may be classified and depicted in the fashion as detailed out in instructions issued by WM&G A/Cs
circular No. 1/2001, 16/2001, 19/2001 and 16/2003 dated 27.8.2003 by the concerned accounting
units.
61. Tax deducted at source from employer, contractor or otherwise should be got deposited with the Central
Govt. before 7th of the next month as, failure to deposit the same with the tax authorities attracts penalty.
Therefore it must be ensured to make the strict compliance of provisions of Income Tax Act.
Page 21 of 36
62. Deviations from the prescribed accounting policies:
The Erstwhile Board has approved certain deviations from the prescribed accounting policies
circulated vide CAO/CAC memo no. 13798/14986/CAC-41 dated 03-05-89 and Board meeting
01/2008. (1028/1327/CAO/WM&G/CAC-37/Vol.IXdt. 3/3/08)
1. Capitalization of expenditure of Construction - cum- O & M Divisions.
It has been decided to charge the Employees cost and Administration & General expenses
@ 11% and 0.7% (Current year’s rate) of Capital expenditure up to Chief Engineer level
and Head Office, respectively. However, CAO/WM&G Section separately intimates
these charges every year. Account circular no. 2/2014 may be complied with.
2. Damaged Meter replacement cost:
The cost of new meter used to replace an irreparable meter will be charged to revenue
straightway and no withdrawal of cost and accumulated depreciation on old meter will be
required.
3. Material related & vehicle running expenses:
A departure has therefore, been made from this policy as under:
a) Capital Stores: Such costs incurred in Divisions, Where only Capital constructions
activities are carried out, or at capital stores, will be charged to capital works on
percentage basis on value of stores issued to capital works as per existing procedure.
b) Capital cum O & M Stores and exclusive O & M Stores: Such costs relating to capital
works will be debited to these works on centage basis on value of stores issued as per
existing practice. The cost relating to O & M works will be charged to the revenue
account.
4. Freight Charges on Stores:
Freight on material is to be treated as part of cost of material.
5. Application of Standard rates for the fast moving items:
Erstwhile Board has decided to continue with the weighted average rate.
6. Capital spares at Generating stations:
It has been decided to charge cost of spares purchased subsequent to commissioning to
revenue of the Board instead of capitalization.
7. Employees Cost:
The employees cost and General Administration expenses will be accounted for on
accrual basis except T.A., Medical, arrear of Salary claims, which are not of regular
nature susceptible of any realization estimation and are in significant in relation to overall
Est. and general administration costs. It is considered unnecessary to make provision for
them on accrual basis. Efforts will, however, be made to clear all such claim during
March each year as far as possible. As approved by the erstwhile Board no liability of
arrear of DA/ADA will be created, as this will be accounted for on cash basis.
8. Retirement benefits and annual payments:
The erstwhile Board has declared that all pensionary charges, terminal benefits for which
provision is made annually in CAO's office for regular staff, will be treated as a revenue
charge, irrespective of whether these are incurred in a construction division or an O & M
cum construction division.
9. Capitalization of Interest on funds utilized at construction stage - SYL Project:
Due to abandonment of Project, the Board has deviated from capitalization of interest on
funds utilized at SYL Project from the year 1995-96.
10. Adjustment of Revenue subsidy / Tariff compensation:
The PSPCL (erstwhile Board)vide its Accounts circular 03/2008 and 11/2010 (WM&G
Section) has decided that the adjustment of Revenue subsidy/ Tariff compensation
Page 22 of 36
received from State Govt. will be accounted for on cash basis i.e. in the year in which
such subsidy is received. These instructions may be complied with strictly.
11. Amendment in accounting procedure regarding purchase/sale of power under banking
arrangement has been made vide circular no. 3/09 dt. 21-1-2009 of WM & G Section, this
may also be referred for compliance.
63. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:
The Govt. of India has passed the Micro, Small and Medium enterprises Development Act, 2006.
Under this Act, the 'buyer' is made liable (Sec. 15) to release the payment for 'goods' supplied or
'services' received on or before the agreed date. In case no agreed date then before the 'appointed
day'. Under Section - 22 of this Act, certain informations in respect such 'enterprises' required to
be disclosed in the Annual Accounts. Under Section -7 this Act, the enterprises are defined as
under:
Enterprise Investment in Plant and machinery Enterprise engaged in
Manufacturing production Enterprise engaged in providing or rendering services
Micro Up to 25 lacs Up o Rs.10 lacs Small More than Rs.25 lacs but does not
exceed Rs. 5 crore More than Rs.10 lacs but does not exceed Rs.2 crore
Medium More than Rs.5 crore but does not exceed Rs.10 crore
More than Rs.2 crore but does not exceed Rs.5 crore
It is also mentioned that in calculating the investment in Plant and Machinery, Cost of pollution
control, the research and development, industrial safety devices and such other items as may
specified, by notification, shall be excluded.
So, the information in the following formats must be supplied alongwith Adjustment Account for
March- 2014. Compilation Section will supply the consolidated information to A & R Section on
or before 31st May, 2014. (For details the Act may be referred). In this regard, a certificate must be
obtained from the supplier along-with the tender whether this firm/company is registered or not
under Micro, Small and Medium Enterprises Development Act, 2006. Interest payable under this
act to be accounted for as per Account circular no. 1/2011.
1. Unpaid Principal and Interest due
2. Principal and Interest paid (Beyond the appointed day)
Sr.No Enterprise Number of items Amount Principal Interest Total 1 Micro 2 Small 3 Medium
Sr.No Enterprise Number of items Amount Principal Interest Total 1 Micro 2 Small 3 Medium
Page 23 of 36
3. Amount of Interest due and payable for delay in making payments without adding
interest as specified under this Act.
4. Interest Accrued and Unpaid at the end of the year
5. Further Interest of Previous Years remaining due and Payable
Sr.No Enterprise Number of items Amount 1 Micro 2 Small 3 Medium
64. Disclosure regarding Contingent liabilities:
As per Companies Act, 1956 PSPCL has to disclose its Contingent liabilities if they become
actual liabilities as on the date of Balance sheet. As such this information, if any, shall be
supplied to CAO/WAD section/ Compilation section. The WAD Section/ Compilation Section
will supply the consolidated information to A & R Section on or before 31st May, 2014. Certificate regarding contingent liability must be supplied with Adjustment
Account 65. Due to applicability of the Companies Act, 1956 to PSPCL, following information alongwith
details, required for disclosure/ incorporation in balance sheet, be supplied with March (Adjustment) Account, 2014:
1. As per Companies Act, 1956 the Contingent Liabilities of the company needs to be disclosed. Therefore, Contingent Liability, if any, of your office/ unit be supplied alongwith details for disclosure in the Final Accounts.
2. The no. of items and amount of non-moving stores as on 31st March, 2014 be intimated.
3. The information under Micro, Small and Medium Enterprises Act, 2006 be supplied (refer sr. no. 40 of the instructions).
4. As per Accounting Standard (AS) – 28, the disclosure regarding impairment of assets is required. As such, the information in respect of assets impaired during the year be intimated alongwith details.
5. The Capital as well as other Commitments is to be disclosed in the balance sheet. As such information in respect of contracts/ commitment made as on 31st March, 2014 but not executed as on date be supplied, separately for capital and others, as under:
Sr. no.
Particulars Amount Adv. Payment
Remarks
The advance payment made, if any, against the above items be also mentioned.
Sr.No Enterprise Number of items Amount Interest
Due Interest Payable
Total
1 Micro 2 Small 3 Medium
Sr.No Enterprise Number of items Amount 1 Micro 2 Small 3 Medium
Page 24 of 36
6. The information regarding Fixed Assets got insured during the year be supplied by mentioning the type of asset got insured.
7. The following information in respect of age-wise analysis of Sundry Debtors be supplied: i) Sundry Debtors as on 31st March, 2014: Rs. ________________
Less than 6 months Rs. ________________ More than 6 months: Rs. ________________
ii) Permanently Disconnected consumers as on 31-3-14: Rs. ________________ Less than One year: Rs. ________________ More than one year but less than three year: Rs. ________________ More than three years; Rs. ________________
8. The information regarding frauds/ embezzlements etc. Occurred during the year:
Sr. No. Particulars Amount involved Status of the case
9. The Govt. Of India, Ministry of Company Affairs has revised the Schedule VI of the Companies
Act, 1956. These instructions have been made applicable w.e.f. 1-4-11 under which the balance
sheet as on 31-3-14 is required to be prepared accordingly. To prepare the balance sheet, the
information of Current Assets and Current Liabilities will be required as ‘Current’ and ‘Non-
Current’ forms.
“An asset shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be realized in, or is intended for sale or consumption in, the
company’s normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within twelve months after the reportingdate; or (d) it is cash or cash equivalent unless it is restricted from beingexchanged or used to settle a
liability for at least twelve months afterthe reporting date. All other assets shall be classified as non-current.
A liability shall be classified as current when it satisfies any of the following criteria:
(a) it is expected to be settled in the company’s normal operating cycle; Guidance Note to the Revised Schedule VI to the Companies Act, 1956
(b) it is held primarily for the purpose of being traded; (c) it is due to be settled within twelve months after the reporting date; or (d) the company does not have an unconditional right to defer settlementof the liability for at
least twelve months after the reporting date. Termsof a liability that could, at the option of the counterparty, result in itssettlement by the issue of equity instruments do not affect itsclassification. All other liabilities shall be classified as non-current.
10. Borrowings Long term borrowings to be shown under non-current liabilities and short term borrowings to be shown under current liabilities with separate disclosure of secured / unsecured loans. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified.
11. Finance Lease Obligations Finance lease obligations are to be grouped under the head non-current liabilities.
12. Lease deposits to be disclosed as long term loans & advances under the head non-current assets
13. Current and non-current investments are to be disclosed separately under current assets & non-current assets respectively.
14. Loans & Advances to be broken up in long term & short term and to be disclosed under non-current & current assets respectively.
15. Bank balances in relation to earmarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately.
16. Current Liabilities; Current liabilities be segregated into current and non-current, short term and long term be supplied to be disclosed under current liabilities.
17. Finance cost shall be classified as interest expense, other borrowing costs & Gain / Loss on foreign currency transaction & translation.
Page 25 of 36
18. The information in respect of all current & non-current assets be also supplied as under: a) Secured, considered good b) Unsecured, considered good c) Doubtful
(NOTE:FOR DETAILED INFORMATION IN RESPECT OF REVISE D SCHEDULE VI BOOKLET MAY BE MADE AVAILABLE FROM THE MARKET.)
19. The information of TDS/EPF/ESI etc. Deducted and deposited with respective authorities during the year 2013-14, on Form 3CD, to be supplied to CAO/A&R (Income Tax Cell).
66. Inter Corporation Transactions:--
As per Accounts Circular No. 8/2010, 5/2011, 11/2011, 17/2011, 4/2012, 5/2012, 8/2012, 9/2012,
11/2012 the disposal of transactions taken place between PSPCL offices and PSTCL offices now
cannot be settled through IUT Bills and U-cheques there against. For this purpose separate
Account heads have been opened as under:-
(Dr) (Cr) Account Code
Description Account Code
Description
28.881 ICT-Capital Exp.& Fixed Assets 46.946 ICT-Credit 28.882 ICT-Material 46.947 ICT-Cash( To be operated by AO/Banking
Drawing) 28.883 ICT-personnel 46.948 ICT-GPF 28.884 ICT-Cash(To be operated by AO/Banking
Drawing) 46.949 ICT-Pension, Commuted Pension &
Gratuity 28.885 ICT-others 46.950 ICT-Leave encashment 28.886 ICT-GPF 46.957 ICT- Pension & Leave salary Contributions 28.887 ICT-Pension, Commuted pension &
Gratuity 46.958 ICT- Fixed Medical Allowance/ Re-
imbursement of medical expenses and LTC to pensioners
28.888 ICT- Leave encashment 46.959 ICT-Material 28.889 ICT-Leave salary & pension Contribution 28.890 ICT- Fixed Medical Allowance/ Re-
imbursement of medical expenses and LTC to pensioners
28.893 ICT-Refund of Earnest money/Security Deposit
It may be ensured that above instructions are strictly complied with and reconciliation /clearance
of such inter-corporation transaction are done and cleared accordingly in the Adjustment Account
of March-2014 as per Accounts circular No. 4/2012.
It is to be ensured by all the accounting units that all the Inter Company Transactions with
PSTCL as pointed out from time to time have duly been got reconciled and matched up with the
concerned Accounting Unit of PSTCL and nothing remains pending on this Account. A
certificate along with detail also to be given along with Trial Balance (As per Performa 'B')
that the necessary adjustments of all recoverable/payable with PSTCL have been got done.
In addition, Accounts circular no. 4/2012 may also be complied with strictly for accounting
purpose. Instructions issued by PSTCL on inter-corporation transactions may also be taken care
of.
67. The Accounting Units shall supply the certificates alongwith the trial balance as mentioned
in the foregoing points from Sr. No. 1 to 44. In addition the certificates as under must be
furnished:
(i) Certified that all material issued upto 31st March 2014 has been accounted for in
the account of 2013-14. A certificate from AO/Evaluation, Patiala must be
obtained that no IUT bill is pending with divisional office.
Page 26 of 36
(ii) Certified that the interest on all staff loans and advances (interest bearing) for the
year 2013-14 has been provided.
(iii) Certified that physical stocks of materials and capital items have been verified
and excess/shortage if any have been adjusted.
(iv) Certified that pensionary and leave benefits for employees on deputation with
Company have been provided for.
(V) certified that liability on account of pension and leave etc. for Company's
employee on deputation with other departments have duly been accounted for
upto 31st March 2014.
(vi) Certified that the stock of scrap generated upto 31st March 2014 have been
accounted for.
(vii) Certified that prepaid expenses have been excluded from the expenses by
transferring to prepaid expenses head.
(Viii) Certified that deposit works completed upto 31st March 2014 (under GH-47)
have been adjusted.
(ix) Certified that irrecoverable sundry debtors during the year have been written off
as bad debts and provisions has been made in case of doubtful debts.
(x) Certified that liabilities provided in the previous years and no longer required
have been written back.
(xi) Certified that all the books of accounts as per the commercial Accounting System
have been maintained and kept upto date. (xii) Certified that no account code has been operated in contravention of the Chart of
Accounts of Company.
(xiii) Certified that reconciliation of the Cash/Cheques remitted into Bank & Credits
afforded to the concerned consumers after verifying the realization of cheques
from the local bank at his station & all dishonored cheques have been adjusted in
the relevant record as well as in the RIB Statement and found which is correct.
(xiv) Certified that all the money deposited into Bank has been transfer to main Branch
at Patiala.
(xv) “Certified that in cases of cheques dishonored during the financial year 2013-
14 due amounts (Including Bank charges & surcharge, If any) have
been/recovered from respective consumers/parties.”
(xvi) “Certified that the fixed Assets Register (FAR) and Fixed Asset Cards of this
Division have been maintained & updated and Assets as on 31-3-2014 have
been physically verified by me as per instructions contained in Chapter
XXIX of “Manual of Capital Expenditure and Fixed As sets. There are no
discrepancies between items physically verified and items appearing in Fixed
Assets Register/record maintained under this division.”
68. Regarding clearance for amount under GH 47.319 (OYT Scheme)
As per accounts circular No. 7/2009 all DS Divisions should issue U-cheque in favour of
AO/APDRP, PSPCL, Patiala against IUT Bill raised by his office, in annual accounts for the
month of 3/2012 so that amounts under GH-47.319 should be cleared during 2012-13. It may be
certified also that credit under Account Head, 47.319 has been transferred to Group Head-
10 in accordance with accounts circular no. 9/11.
Page 27 of 36
69. Regarding clearance for amount under GH 47.320 (ARTC Scheme)
As per accounts circular No. 10/2012 all DS Divisions should issue U-cheque in favour of
AO/APDRP, PSPCL, Patiala (Nodal Agency)against IUT Bill raised by his office, in annual
accounts for the month of 3/2014 so that amounts under GH-47.320 should be cleared during
2013-14. It may be certified that credit under Account Head, 47.320 has been transferred to
Group head-10 in accordance with accounts circular no. 10/2012.
70. All the balances like GPF, Pension etc. should be cleared by receiving/issuing U-cheques from
the concerned offices for the whole year i.e. 2013-14.
71. The D.D.Os having Drawing Account with the Bank must supply the Bank Statement showing
Bank Balance as on 31-3-2014
72. The classification of expenditure / receipt must be in accordance with the Chart of Accounts /
Accounts Circulars issued by the C.A.O. /WM&G Section from time to time. However, for the
ready reference the detail of circulars issued during current years is given as under :
Circulars Issued By AO/WM&G, PSPCL, Patiala during 2013-14:-
Sr. No Circular No.
Newly opened Account Head
Description/Remarks
1 5/2013 - Appraisal of Important items of Arrear-in-Accounts Revised statement “D”
2 6/2013 - Creation of liability on account of Entry Tax under Punjab Tax on entry of Goods into Local Areas Act-2000.
3 7/2013 57.127 Accounting procedure for transfer of GPF subscription & Repayment of refundable advances and payment of advances as well as final Payments to employees to/from GPF trust.
4 8/2013 28.813 46.913
Opening of new account codes for wrong credit/debit given by Banks.
5 9/2013 -
Accounting procedure to be followed in maintaining the accounts of PCC poles manufactured in PSPCL Workshops
6 10/2013 - Revision of Accounting procedure for payment of GPFund Advances and Final Payments to Emloyees.
7 11/2013 - Accounting procedure for disbursement of Salary and pension centrally at HO prepared by the Divisional Office ON-LINE in the Salary and pension Package developed by IT.
8 12/2013 61.254 Account Head for Voltage surcharge for AP category. 9 13/2013 20.310
28.851 Opening of new Account code for payment to Punjab Thermal Generation Limited.
10 14/2013 44.431 57.161 76.156 78.854
New Account codes under contributory Pension scheme(NPS)
11 15/2013 48.312 36.101 36.200
Amendment in Account Circular nu.11/2013
12 16/2013 61.246 Introduction of Time of Day(T.O.D) tariff for large supply industrial consumers from October to March every year(Six months)
13 17/2013 Payment of Bonus for year 2012-13 under payment of Bonus Act-1965.
Page 28 of 36
14 18/2013 79.590 20.900
Opening of New Account code for provision for losses on investment and Booking the loss thereon.
15 19/2013 25.521 Ultra Mega Power Project payment of commitment Advance.
16 20/2013 - Accounting of Interest on securities (meter and consumption) deduction & deposit of Tax dducted at source.
17 21/2013 15.450 15.460 15.105
Opening of new Account code for Shahpur Kandi Barrage Project.
18 1/2014 - Re-iteration of instructions contained in circular no.9/1990 regarding merged/amalgamation/abolition and reconstitution of Accounting units.
19 2/2014 - Booking of Employees cost to Capital Works for the year 2013-14
20 3/2014 Accounting procedure for transfer of GPF subscription & Repayment of refundable advances and payment of advances as well as final Payments to employees to/from GPF trust.
21 4/2014 62.292 78.710
Opening of new Account codes for interest paid against OD/CC and received against Bonds/Securities.
22 5/2014 - Accounting procedure for providing Urban Pattern supply to Balance Dera/Dhanies having cluster of 5 or more in state of Punjab.
23 Memo no 1321/1521/CAO/WM&G/A-247/Vol-1 dt 14-3-2014
Procedure for accounting of pay for the month of March to be paid in April by the centralized Pay& Pension Cell.
Page 29 of 36
Annexure "A" (Instruction No. 30 (i) g)
Sr. No
Particulars Dr Cr JV no.
Attached with SD no.
1 Transfer of completed Assets to GH-10
GH-10 GH-14
2 Depreciation(O&M Divn) 77.1 GH-12 3 Depreciation on Cars/Jeeps 77.171/172 GH-12 4 Capitalization of
Depreciation in Const. Divisions
15.311 77.9
5 Un Billed Revenue 23.4(with Detail Account Heads
61.2
6 Dues from PDCL consumers
+23.5 -23.1
7 10% collection Charges of Octroi collection of March Deposited in April
46.320 62.950
8 Cheques Drawn(As per Accounts Circular No. 10/2011)
-24.410 +37.000
9 Remittance into bank (-)25.501,24.511, 24.521,24.531,24.541 +GH-33
10 Surrender of Funds (-)24.412 +IUT-37
11 GPF Transfer As per Accounts Circular no. 7/2013 and 10/2013
12 Pension Transfer As per Accounts Circular no. 11/2013 , 14/2013 and 15/2013
13 Debenture Interest payment
(-)51.209 + GH-36
14 Credit Balance un claimed for more than 3 years
46.926, 44.210, 44.211 62.912
15 Stale cheques ( As per 10/2011)
(-) 24.401 +46.910
Adjustment of minimum Balance in Bank (7/2012)
24.111 24.410
Surrender Amount(10/2011)
(-)24.412 +IUT-37
U-cheque from Banking 37.000 IUT-37 16 Capitalization employees
cost (2/2014) 15.2 75.9
17 Bonus paid in excess of provision(As per 17/2013)
83.510 44.320
18 Bonus paid less than provision(As per 17/2013)
(-) 44.320 +65.8
19 Provision for Bonus 75.510/520 44.320 20 Liability of unpaid wages
W/C staff GH-75 44.211/44.403
21 Provision of PSPCL share of EPF for 3/2013
75.810 44.405
22 Unpaid pay of regular staff GH-75 44.310 23 Unused service postage
stamps +24.120 (-)76.112
(This entry to be reversed in 4/2014)
24 Liability of expenses GH-74 to GH-76
46.410/46.430
(Detail /copies of Bills must be attached with JV)
Page 30 of 36
25 Pre paid expenses +28.820 (-) concerned Account Head
(This entry to be reversed in 4/2014)
26 Interest on Loan/Advances 28.360 62.210 27 Interest on cash Securities
of PSPCL employees 78.583 46.926
28 Interest on consumer deposit
78.601 48.300
29 Interest on refundable deposits
78.611 46.713
Prior period interest 83.7 46.713 When interest due 46.713 48.310 Adjustment through Bills 48.310 61.2 30 Adjustment of deposit
against Burnt meters 47.601 62.930/940
31 Unused material +22.640/650 (-) Work concerned
(This entry to be reversed in 4/2014)
32 Unused material at workshops
22.712 14.450/460
33 Exp. On KutirJyoti (-) work concerned + GH-37
34 %age of employees cost chargeable to Works
Work concerned(GH-14) 75.930/935
35 Adjustment of energy Bills 76.158 61.2 36 Expenditure on OYT on
completion of works (9/11) (if not done already)
- 47.319 Credit from consumer)
GH-14 37.000 GH-10 GH-14 47.319 55.103 37 Expenditure on ARTC
Scheme on completion of work(10/2012)
- 47.320 (Credit from consumer)
14.623 37.000 10.623 14.623 47.320 55.103 U-cheque by AO/Banking 28.622 37.000 38 IUT Transactions
(Material etc Received) GH-10/14/GH-74 46.946 to
46.950/957/958/959
U-cheque to AO/A&R in 3/2014
46.946 to 46.950/957/958/959
37.000
39 IUT Transactions (Material etc. issued)
28.881 to 890 GH-10/14, GH-74 to 76
On receipt of U-cheques from AO/A&R in 3/2014
37.000 28.881 to 28.890
40 Closing Entry GH-61 to 65
GH-70 to 89
Net Difference to GH-38
1. No. Advance or Imprest should be transferred to GH-28
2. No. balance of GH 44 should be transferred to GH-46.
3. Complete sub head wise posting in Form 27 for GH. 23.1. 23.2
Page 31 of 36
SCHEDULE XIV — RATES OF DEPRECIATION (SEE SECTION 205 AND 350)
The Companies Act-1956
Nature of Assets W.D.V.(%) S.L.M.(%)
I. (1) (2) (3)
a) BUILDINGS (other than factory buildings) [NESD]
b) FACTORY BUILDINGS
c) PURELY TEMPORARY ERECTIONS such as wooden structures
Single Shift
Single Shift
Single Shift
5
10
100
1.63
3.34
100
II. PLANT AND MACHINERY
i. General rate applicable to,
a) plant and machinery (not being a ship) other than continuous process plant for which no special rate has been prescribed under (ii) below
b) continuous process plant, for which no special rate has been prescribed under (ii) below (NESD)
ii. Special Rates
Single Shift
Double Shift
Triple Shift
Single Shift
13.91
20.87
27.82
15.33
4.75
7.42
10.34
5.28
A. 1. Cinematograph films — Machinery used in the production and exhibition of cinematograph films (NESD)
a) Recording equipment, reproducing equipment, developing machines, printing machines, editing machines, synchronizers and studio lights except bulbs
b) Projecting equipment of film exhibiting concerns
Single Shift
20 7.07
2. Cycles (NESD) Single Shift
20 7.07
3. Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical diagnostic equipments, namely, Catscan, Ultrasound Machine, ECG Monitors, etc. (NESD)
Single Shift
20 7.07
4. Juice boiling pans (karhais) (NESD) Single Shift
20 7.07
5. Motor-cars, motor cycles, scooters and other mopeds (NESD)
Single Shift
25.89 9.5
6. Electrically operated vehicles including battery powered or fuel cell powered vehicles (NESD)
Single Shift
20 7.07
7. Sugarcane crushers (indigenous kolhus and belans) (NESD)
Single Shift
20 7.07
8. Glass manufacturing concerns except direct fire glass melting furnaces — recuperative and regenerative glass melting furnaces
Single Shift
Double Shift
Triple Shift
20
30
40
7.07
11.31
16.21
Page 32 of 36
9. Machinery used in the manufacture of electronic goods or components
Single Shift
Double Shift
Triple Shift
15.62
23.42
31.23
5.38
8.46
11.87
B. 1. Aeroplanes, Aeroengines, simulators, visual system and quick engine
change equipment (NESD)
2. Concrete pipes manufacture moulds (NESD)
3. Drum container manufacture dies (NESD)
4. Earth-moving machinery employed in heavy construction works, such as dams, tunnels, canals, etc. (NESD)
5. Glass manufacturing concerns except direct fire glass melting furnaces - Moulds (NESD)
6. Moulds in iron foundries (NESD)
7. Mineral oil concerns — Field operations (above ground) — portable boilers, drilling tools, well-head tanks, rigs, etc. (NESD)
8. Mines and quarries — Portable underground machinery and earth moving machinery used in open cast mining (NESD)
9. Motor buses and motor lorries other than used in a business of running them on hire
9A. Motor tractors, harvesting combines (NESD)
10. Patterns, dies and templates (NESD)
11. Ropeway structures — Ropeways, ropes and trestle sheaves and connected parts (NESD)
Single Shift
30 11.31
12. Shoes and other leather goods factories — wooden lasts used in the manufacture of shoes
Single Shift
Double Shift
Triple Shift
30
45
60
11.31
18.96
29.05
C. 1. Motor buses, motor lorries and motor taxies used in a business or running them on hire (NESD)
2. Rubber and plastic goods factories — Moulds (NESD)
3. Data Processing Machines including computers (NESD)
4. Gas cylinders including valves and regulators (NESD)
Single Shift
40 16.21
D. 1. Artificial silk manufacturing machinery wooden parts
2. Cinematography films — Bulbs of studio lights
3. Flour Mills — Rollers
4. Glass manufacturing concerns Direct fire glass melting furnaces
Single Shift
100 100
4a. Float Glass Melting Furnaces (NESD) Single Shift
27 10
Page 33 of 36
5. Iron and steel industries —Rolling mills rolls
6. Match factories — Wooden match frames
7. Mineral oil concerns —
a) Plant used in field operations (below ground) — Distribution returnable packages
b) Plant used in field operations (below ground) but not including assets used in field operations (distribution) — Kerbside pumps including underground tanks and fittings
Single Shift
100 100
8. Mines and quarries —
a) Tubs, windings ropes, haulage ropes and sand stowing pipes
b) Safety lamps
9. Salt works — salt pans, reservoirs and condensers, etc., made of earthy, sandy or clay material or any other similar material
10. Sugar works — Rollers
III. FURNITURE AND FITTINGS
1. General rates (NESD) Single Shift
18.1 6.33
2. Rate for furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other educational institutions, libraries, welfare centres, meeting halls, cinema houses, theatres and circus, and for furniture and fittings let out on hire for use on the occasion of marriages and similar functions (NESD)
Single Shift
25.88 9.5
IV. SHIPS —
1. Ocean-going ships —
i) Fishing vessels with wooden hull (NESD) Single Shift
27.05 10
ii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes (NESD)
Single Shift
19.8 7
iii) Other ships (NESD) Single Shift
14.6 5
2. Vessels ordinarily operating on inland waters —
i) Speed boats (NESD) Single Shift
20 7.07
ii) Other vessels (NESD) Single Shift
10 3.34
Notes
1. “Buildings” include roads, bridges, culverts, wells and tubewells.
2. “Factory buildings” does not include offices, godowns, officers’ and employees’ quarters, roads, bridges, culverts, wells and tubewells.
3. “Speed boat” means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometers per hour in still water and so designed that when running at a speed it will plane, i.e., its bow will rise from the water.
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4. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed.
5. The following information should also be disclosed in the accounts :
a. depreciation methods used; and
b. depreciation rates or the useful lives of the assets, if they are different from the principal rates specified in the Schedule.
6. The calculations of the extra depreciation for double shift working and for triple shift working shall be made separately in the proportion which the number of days for which the concern worked double shift or triple shift, as the case may be, bears to the normal number of working days during the year. For this purpose, the normal number of working days during the year shall be deemed to be :
a. in the case of a seasonal factory or concern, the number of days on which the factory or concern actually worked during the year or 180 days, whichever is greater;
b. in any other case, the number of days on which the factory or concern actually worked during the year or 240 days, whichever is greater.
The extra shift depreciation shall not be charged in respect of any item of machinery or plant which has been specifically, excepted by inscription of the letters “NESD” (meaning “No Extra Shift Depreciation”) against it in subitems above and also in respect of the following items of machinery and plant to which the general rate of depreciation of 13.91% applies
1. Accounting machines.
2. Air-conditioning machinery including room airconditioners.
3. Building contractor’s machinery.
4. Calculating machines.
5. Electrical machinery — switchgear and instruments, transformers and other stationary plant and wiring and fitting of electric light and fan installations.
6. Hydraulic works, pipelines and sluices.
7. Locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns.
8. Mineral oil concerns field operations
i. Prime movers
ii. Storage tanks (above ground)
iii. Pipelines (above ground)
iv. Jetties and dry docks
9. Mineral oil concerns — field operations (distribution)
— Kerbside pumps, including underground tanks and fittings.
10. Mineral oil concerns refineries
i. Prime movers
ii. LPG plant.
11. Mines and quarries
i. Surface and underground machinery (other than electrical machinery and portable underground machinery)
ii. Head-gears
iii. Rails
iv. Shafts and inclines
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v. Tramways on the surface.
12. Neo-post franking machines.
13. Office machinery.
14. Overhead cables and wires.
15. Railway sidings.
16. Refrigeration plant containers, etc. (other than racks).
17. Ropeways structures.
i. Trestle and station steel work
ii. Driving and tension gearing.
18. Salt works — Reservoirs, condensers, salt pans, delivery channels and piers if constructed of masonry, concrete, cement, asphalt or similar materials; barges and floating plant; piers, quays and jetties; and pipelines for conveying brine if constructed of masonry, concrete, cement, asphalt or similar materials.
19. Surgical instruments.
20. Tramways, electric and tramways run by internal combustion engines — permanent way cars — car trucks, car bodies, electrical equipment and motors; tram cars including engines and gears.
21. Typewriters.
22. Weighing machines.
23. Wireless apparatus and gear, wireless appliances and accessories.
7. “Continuous Process Plant” means a plant which is required and designed to operate 24 hours a day.
8. Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed Rs. 5,000 shall be provided depreciation @ 100%.
Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 or less constitutes more than 10% of the total actual cost of plant and machinery, rates of depreciation applicable to such
item shall be the rates as specified in Item II of the Schedule.
The Research Committee of the Institute of Chartered Accountants of India has issued a Guidance Note on
Significant issues arising from the amendments made by Notification dated 16-12-1993 issued by the Department of Company Affairs. The Guidance Note inter alia covers the following issues in supplement to the earlier Guidance Note and supersedes the same.
“Continuous Process Plant”
In case of the plant which is designed to operate for 24 hours a day but is required to shut down for some reasons like lack of demand or maintenance etc., the relevant rate for Continuous Process Plant would be applicable. However, in case of Plant which may work for 24 hours in a day but which is not technically designed to work as such, extra shift rates prescribed in the schedule would be applicable.
A Continuous Process Plant is distinguished from repetitive process plant or assembly-line type plants. Such plants do not involve significant shut down and/or start up costs. Hence they are not technically required and designed to operate 24 hours a day.
An example of a continuous process plant is blast furnace which is required and designed to operate 24 hours a day. It may be noted that even if a plant works 24 hours a day, e.g., a textile weaving mill, this in itself does not mean that it is a continuous process plant, unless its inherent technical design does not permit it to be operated for lesser number of hours.
For example, an automobile assembly plant is not a continuous process plant even though it may operate 24 hours a day.
An ancillary equipment/plant which is an integral part of the Continuous Process Plant should be depreciated along with the main Continuous Process Plant.
It is not necessary for the whole concern to be defined as a Continuous Process Plant.
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(A) STATEMENT OF FIXED ASSETS TRANSFERRED TO OTHER DIVI SIONS DURING 2013-2014
BY…………………………………. DIVISION ( LC………………..)
Sr No Division name to whom transferred
Location code
Name of scheme
Account code
IUT Bill no and date
Amount U-cheque no./date received
1 2 3 4 5 6 7 8
Addl.SE/Sr.Xen
(B)INTER CORPORATION TRANSACTIONS UNDER GH-28 AND GH- 46(2013-14)
NAME OF DIVISION……………………….. LC………………..
Sr.No. Name of PSTCL Division
LC of PSTCL Division
Detail of SR/SC/SRW/JV etc.vide which material etc. received/issued
GH 28.8(ICT) Amount in RS.
GH 46.9(ICT) Amount in RS.
Detail of transaction/material etc.
Remarks
1 2 3 4 5 6 7 8 It is certified that All the Inter Corporation Transactions with Divisions of PSTCL have been accounted for in relevant Account Heads during the Year 2013-14 and no amount has been left to be accounted for.
Addl.SE/Sr.Xen
