ACCOUNTING PRACTICES IN BHEL

COMMON ACCOUNTS MANUAL IS

FOLLOWED
CENTRALISED FUND MANAGEMENT
UNITS ARE TREATED AS INDEPENDENT
PROFIT CENTER
FOR INTER UNIT TRANSACTIONS PERIODIC
RECONCILIATION IS DONE
UNIT LEVEL BUDGETORY SYSTEM IS
FOLLOWED

COMMON ACCOUNTS MANUAL IS

FOLLOWED

CLASSIFICATIONS OF ACCOUNT HEADS

EQUITY & LOAN
000006
FIXED ASSETS AND INVESTMENTS
007-014
CURRENT ASSETS
015-026
CURRENT LIABILITES
027-036
INTER DIVISION CLEARING A/C
037-042
PROFT & LOSS A/C
043-054
PURCHASES
055-062
EMPLOYEE COMPENSATION
063-071
OTHER EXPENDITURES
MANUFACTUREING, ADMINSTRATIVE,
SELLING & DISTRIBUTIONS
072-085
OTHERS
086-099

CENTRALISED FUND
MANAGEMENT

MANAGEMENT OF FUNDS
ALL RECEIPTS FROM UNTIS
ARE TRANSFERRED TO
COPORATE
REQUIREMENTS FOR ALL
PAYAMENTS ARE RECEIVED
FROM CORPORATE THROUGH
CASH CREDIT ACCCOUNT

UNITS ARE TREATED AS

INDEPENDENT
PROFIT CENTRES

UNITS
FOR EACH UNITS,TARGETS FOR
TURNOVER, PROFIT Etc ARE FIXED
EACH UNIT IS RESPONSIBLE FOR ACHIEVING
ITS TARGETS.
PERFORMANCE OF EACH UNITS ARE
MEASURED ON THE BASIS OF ACHIEVMETNS
OF ITS TARGETS

FOR INTER UNIT TRANSACTIONS,

RECONCILATIONS WITH ALL UNITS
IS DONE PERIODICALY

INTER UNITS TRANSATIONS

THESE MAY BE FOR
MATERIALS & EXPENSES
PERIODIC MEETINGS ARE
CONDUCTED FOR
RECONCILIATION
OF VARIOUS ACCOUNT HEADS
OF ALL UNITS

EFFECTIVE BUDGETORY SYSTEM

AT UNIT LEVEL

UNIT LEVEL BUGETORY SYSTEM

IS FOLLOWED.
ALL BUGETED ESTIMATES ARE
APPROVED BY BOARD.
ACTUAL PERFORMANCE IS
COMPARED WITH BUGETED ONE
PERIODICALY & SUITABLE
ACTIONS ARE TAKEN FOR
DEVIATION FROM THE BUDGET.

THANK YOU

S.MURUGAN