CENVAT CREDIT ACCOUNTING

Cash Transaction FlowChart

Bank Reconsilation Diagramatic

General Ledger Reporting

LISTING

General Ledger :
1. Advances to Staff and Workers – Receipts and Payments – Employee wise
2. Labels and Packing – Product wise
3. ERE Related Accounts viz...
i) Leave Travel Allowance – Employee wise
ii) Reimbursement of Medical – Employee wise
iii) Leave Salary and Wages - Employee wise
iv) Awards for Completion of 20 / 25 years - Employee wise
v) Labour Welfare I A/c – Nature of Expenses (Sub Ledger wise)
vi) Labour Welfare II A/c – Nature of Expenses (Sub Ledger wise)

4. General Expenses – Nature of Expenses (Sub Ledger wise)
5. Safety Expenses – Nature of Expenses (Sub Ledger wise)
6. R & D Expenses – Nature of Expenses (Sub Ledger wise)
7. Effluent Expenses – Nature of Expenses (Sub Ledger wise)
8. Legal and Professional Expenses – Service Provider wise
9. Telephone and Telex Expenses – Telephone Number wise
10. License fees – Nature of Expenses (Sub Ledger wise)
11. Processing Charges – Product wise
12. Repairs to Machinery – End Use department wise
13. Repairs to Machinery – Nature of Expenses (Sub Ledger wise)
14. Repair to Others – Cost Centre wise and Nature of Expenses (Sub Ledger wise)
15. Commission and Discounts – Product wise
16. Commission and Discounts – Customer wise
17. Traveling Expenses – Employee wise
18. Freight Inward – Raw Material wise
19. Freight on Export – Product wise
20. Freight out ward – Product wise
21. Freight on Stock Transfer – Product wise
22. Unit Reconciliation should be through system, without manual intervention.

Cash Book & Bank Book
a) Screen should display the balance after recording of each Voucher / Receipts.
b) Separate space to be provided for: - Name of Payee, Reason of Payments.

Bank Reconciliations
Bank Reconciliation to be computerized, we entered only cheques cleared at Bank with
Amount as well as of receipts and other charges. Reconciliation Payments, Reconciliation
Receipts should be generated and get printed from system.

Addition to Fixed Assets & Depreciation.
At Present we are using separate package in FoxPro for addition to fixed assets and
Depreciation Working. At present we are recording Purchase bills twice i.e. once in
Our F A system and secondly into our FoxPro System.

To avoid double entry it should be linked with our Depreciation system up to Fixed
Assets Schedule and following reports are to be required through systems.

a) Fixed Assets Schedule as per Companies Act and Income Tax.
b) Addition during the year with Above Rs. 5000 and Below Rs.5000 format
c) Depreciation with below Rs.5000 format.
d) Addition during the year with above 180 day and below 180 days.
e) Depreciation Calculation as per Companies Act and as per Income Tax Act.
f) Details of other charges debited to fixed assets.
g) Working of Profit or Loss on sale of Assets.
h) Year wise computation of depreciation on Fixed Assets.
(At present we are preparing the above reports manually in XLS format)

Following Additional reports are require to be generated through systems

a) Relocation Report - Details of transfer assets from one location to another location.
b) Assets transaction Report - Details of Assets Code, Assets names, date of capitalization, date of sale, cost of Purchase and Sales value, for Transfer of assets will generate report
With detail as date of transfer, Assets from & Assets to.
c) Fixed assets Register - Details information with their component details. Date of capitalization, Vendor name, location, rate of depreciation, total cost of assets, Profit/Loss on assets, total depreciation on assets and net cost of all assets. Etc.
d) AMC Expiry Report - AMC Expiry report for a particular asset for a particular period.
e) Insurance Expiry Report - Insurance Expiry report for a particular asset for a particular period.
f) Assets Service Due Report – Assets for which the service is due from a particular date.
g) Physical Verification Report – Details of Location, Assets Code, Assets description, Component
Code and description and quantity of assets.
h) Warranty Expiry Report - Warranty expiry for a particular assets for a particular period.
Others details reports.

Service Tax on GTA and other than GTA:
At present we have separate package for Service tax on GTA and other than GTA, it
Should be linked with our FA system and report to be generated in our existing format.
i) Service Tax Register for taking Cenvat Credit – Other than GTA
ii) Service Tax Register for taking Cenvat Credit – other than GTA - Account wise
iii) Service Tax Register for taking Cenvat Credit – of GTA
iv) Service Tax Register for taking Cenvat Credit – of GTA – Account wise for taking Credit


Statutory Audit Statements:
At present we are preparing audit statement manually in worksheet as per requirement of Audit, it is nothing but coping the FA data in worksheet. If audit statement generated through system it is useful for avoid the duplicate working. The list pf reports are attached separately.

Tax Audit Statements:
It should be linked with our systems. The list pf reports are attached separately.

Sales Tax related:
The purchase and sales summery required for filling the monthly returns of VAT and CST should be generated from the system as per formats given in As Is process.

TDS on Contractors and Legal Professional fees , Commission
The above should be linked to FA system and generate the reports as per existing system.

Unit Control Account
All inter unit transactions should be computerized and there should be no manual intervention.

TDS under works contract
The TDS under works contract should be linked to FA system and generate the reports
As per existing system.

Year end procedure

In the year end first we close all sites and C & F agent locations, send it to HO for consolidation, once the data is send to HO for finalization Individual data base people are not supposed to do the data entry is there data base, any entry which is require to be done in that location it is to be done at HO only in there data base at HO, and then it goes to consolidate data. Profit and loss account and balance sheet are generated from the systems, group wise, from that profit and loss account and balance sheet we prepare the schedule wise balance sheet and profit and loss account and statutory auditor will verify and finalized the balance sheet and related notes to account. At the time of finalization account prepare the number of audit statements and working of certain data fro finalization of notes to accounts. (List is attached in wish list)

Ones the audit is finalized and published in new papers, we run year end process which make all the income and expenditure account Zero and transfer to profit and loss account site wise, with another process we transfer balance in the profit and loss account of site to HO profit and loss account through unit account. Balance in all individual unit account is transferred to unit control account. All this activity is first carried out at consolidate data then we send the opening balance data to the sites and C & F to update the opening balance at their end.

Once the all data is transferred properly to respective site, and then we close the period so that on body will be allowed to enter the data in that financial year.

Procedure of quarterly results and final balance sheet and profit and loss account

As per the statutory requirement of Companies act, we have to publish the Quarterly result. Our accounting period is April to March. Every three month we have to publish the Statement of profit and loss account and Capital employed to stock exchange as well as to public. And at the year end in the march we have to publish in new paper and prepare the full balance sheet for the giving it to share holder as well as to others.

For preparing the quarterly result our activity are as follows.

First we close the all data of sales in the beginning of the month at all site including the
C & F Locations. All the site and C & F location data comes to Mumbai H.O. for compilation and get consolidate here on HO server,

Once the sales are final and freeze, by the 10th of next month site people close all the other data, and send the all data to HO for complication along with the provision figures.

Once the all data are received from the sites and C & F Location At along with HO data are transfer to consolidate data, where we can see all the site and HO data to gather, Once all data are transferred to consolidate data, then we passed the Provisional JV’s in the consolidate data. Once all data are finalized after all provisional entry we prepare the Profit and loss account and balance sheet for the quarter end result.


As the Companies act we have to publish the result segment wise. One statement is the profit and loss account statement of the company, and other is segment wise revenue and profit and loss account and capital employed.

At present we have location and division as a primary key for all the report, which is one to one relation, each location is attached with one division. So for generating the Profit and loss account and balance sheet report, we have hard coded the location in the report parameter, so we get the profit and loss and balance sheet as per the division wise. And also we get the consolidate profit and loss account and balance for company.

Once the profit and loss account and balance sheet are final, account department present t management, for discussion and there views, once it is approved by the Top management we finalized and published the results.

In quarterly result we are not preparing the full balance schedule wise, only publishing the profit and loss account statement and Segment wise revenue and profit and loss of segments and segment wise capital employed. And in the year end in March for final result we prepare the full balance sheet and profit and loss account schedule wise. By giving all the necessary information along with notes to accounts and auditors’ and director’s report in published balance sheet report

During the quarter all the provision entry which is passed in consolidates data are reverted on the next day, we have to rune small program to reverse the all provisional Journal vouchers. These provisional entries are done only in consolidate data, not in the individual data base.