PROJECT- B

ACCOUNTING SYSTEM OF OHPC Ltd.:-

1.1INTRODUCTION:-

To know about the accounting system of OHPC Ltd. It is required to know about
accounting and its functions,systems,objective and importance.

Accounting is the art of recording, classifying and summarizing the

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

1.1.1 FUNCTIONS OF ACCOUNTING:-

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

2. It classifies and puts similar transaction into one group. For example:-all
transaction relating to sales of good are recorded in sales account. Similarly
all purchases are recorded in purchase account and so on.
3. It summarizes all the business transactions. Trading account, Profit and loss
account and Balance sheet are the summarize statement of all transactions
during a year.

1.1.2 SYSTEMS OF ACCOUNTING:-

Mainly there are three systems of accounting to record the business

transactions. These are:-

1. Cash System:-
Under this system only cash receipts and cash payments are recorded. It
means credit transactions are not recorded at all. This system of accounting is
followed, in case of non-trading concerns such as- club, school, college etc.
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2. Single Entry System:-
Under this system the cash and personal aspect of the transactions are
recorded and the impersonal transactions are not recorded at all. Hence this
system is unscientific and inaccurate.
3. Double Entry System:-
Each transaction have a two side effect. Whenever we receive something,
we give something. Under this system both the aspects of each transaction are
recorded to get a complete picture. This system is commonly used now-a-days.

1.1.3 OBJECTIVE (AIM) OF ACCOUNTING:-

Accounting is having a no. of objective:-

1. To keep systematic order, systematic record.

2. To find out the true profit or loss.
3. To know the financial position on a particular date.
4. To communicate the information to the interested parties.
5. To help in planning and controlling varies business activities.
6. To meet legal requirements.

1.1.4 IMPORTANCE OF ACCOUNTING:-

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

The parties interested are owner, creditors, investors, employees, government,
general public etc.

(a) Owner:-
Owner brings land,labour and capital and organizes all the factors of
productions.So he is anxious for the safety and effective utilization of his

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 money.He is interested to know the progress of his business time to time.All
the information are supplied by accounting and helps him to decide whether
to increase or decrease the business.
(b) Managers:-
Manager needs detail information at a regular interval to plan future
activities and to exercise proper control over man and materials.All the
detail and regular information is being supplied by accounting.
(c) Creditors:-
Banks,other lenders of money,suppliers,of goods and services are
termed as creditors.They want to know the credit worthiness of the
business.They are interested to know whether they will get back their loan
along with interest or not.From profit and loss account and balance
sheet,creditors will be able to know such information which will help them
to decide whether to continue,restrict or increase the volume of credit.
(d) Employees:-
Employees are interested for their salary and bonus.Bonus depends upon
the profit earning capacity of a business.So they insist on carried preparation
of profit and loss account.From the financial statement they can know
whether their bonus and salary are inaccordance with the profit earned or
not.
(e) Investors:-
A investor who wants to invest money in a business is interested to
know the financial position of a business. From the financial statements he
can know the earning capacity and will decide whether to invest or to switch
over to other business.

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 (f) Government:-
Government is interested for tax-purpose such as: - sales-tax, income-
tax etc. So government is always interest to know the profitability position
of the business. Hence the government always depends upon accounts of the
business for this purpose.
(g) Consumers:-
Consumers want qualitative product at a reasonable prices. If the
accounting control system is a sound one it will keep the cost of production
down, which in turn reduces the prices. So, a good accounting system helps
the consumers by providing goods at reasonable prices.
(h) Information Agencies:-
Financial press, reporting agencies, trade associations, statistical
department etc. sometimes require certain information for their use.
Accounting makes available of such data to them.

1.2 PURPOSE OF THE STUDY:-

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

business at the end of the year. Basically accounting system consists of 2 parts -
Position Statement or Balance Sheet and Income statement or Profit and Loss
account. This is a good opportunity given by the organization to be with them and
make the study. The purpose of my study is to get practical knowledge about how
they are maintaining their accounts, and how they are preparing their profit and
loss account and balance sheet. It will also acquaint me with the formats and the
software, if any, that the firm uses for maintaining the accounts.

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1.3 OBJECTIVE OF THE STUDY:-

The main objective of the study is:-

 To know the process of accounting system in OHPC.

 To know about how they are able to maintain their accounting system, like
how they prepare their accounts, starting from ledger to final accounts.

1.4 SCOPE OF THE STUDY:-

The scope of the study is that to get practical knowledge how to prepare
accounts in the firm. And to improve knowledge about the maintenance of
accounting system in an organization.

1.5 RESEARCH METHODOLOGY:-

To conduct the study will be collected from primary and secondary sources. The
secondary data can be collected from the reports of the firm. To get primary data
interviews and discussions will be conducted with different persons of the finance
department. This will be done using some suggested questions.

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2.1 ANALYSIS OF THE STUDY:-

To fulfill the study the data will be collected by asking questions to the company
secretary of finance department.

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

(Finance). Director (Finance) is supported by finance executives and other staff
among whom the work is distributed.

2.2 Major Works Of Finance Wing(Department):-

The work of finance wing in Corporate Office is mainly divided into four
sections.These are as follows:

a) Fund And Pension Section

b) Payroll and Bill
c) Cash section.
d) Account and Audit Section
2.2.1 Fund and Pension Section:

Basically this section looks after the following works mainly,

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

2) Gratuity Payment.
3) Pension Fund accounting and payment of pension to Retired Employees.
4) Liasioning with lending institutions and payment of loan.
5) Rehabilitation Assistance fund and others.

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2.2.2 Payroll and Bill Section:
1) Passing and Payment of salaries and works bill.
2) Investment of funds.
3) Filling of return with Govt.,Income Tax Authority and other statutory
authority.
2.2.3 Cash section:
1) Maintainance of cash book and bank books.
2) Dealing with various banks like UBI, SBI, IDBI, PNB, AXIS and other
banks and reconciliation thereof.
3) Timely release of funds to units.

2.2.4 Accounts and Audit Section:

1) Preparation of trial balance.

2) Preparation and Compilation of annual accounts.
3) Inter unit reconciliation.
4) Monitoring of information under budgetary control.
5) Filing of return under Income tax, Wealth Tax.
6) Smooth conduct of Statutory Internal Audit, AG Audit, Tax Audit And
Cost Audit.

2.3 OHPC follows major accounting policy:

1. OHPC follows Mercantile System of accounting and recognizes significant

items of Income and Expenditure on accrual basis except those with
significant uncertainties.
2. OHPC follows the historical cost convention method in accordance with the
generally accepted accounting principles, the provisions of companies

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 Act,1956 and the mandatory accounting standards while preparing its
financial statements.

2.4 Preparation Of Accounts:

Financial functions in the field units is fully centralized in the Finance Wing. All
initial accounts comprising cash book, bank book, journals and ledgers are
maintained in the Finance Wing of the field office as well as Corporate Office Day
to Day transaction and journals are entered in computerize system, i.e. tally
package by all units and Corporate Office of OHPC. At the end of each financial
year,Finance Wing of field units prepares the annual accounts in respect of their
unit. These accounts are audited by branch auditors of respective units who are
appointed by C&AG (Controller and Auditor General Of India). Field units submit
their accounts to Corporate Office for consolidation.

2.5 Authentication Of Accounts:

Corporate Office consolidates all accounts and prepares the annual account of the
corporation as a whole. After preparation of accounts, it is presented before audit
committee for their expert views on accounts. Director (Finance) takes it to the
Board of Directors for authentication. After authentication of the annual accounts,
it is submitted to statutory auditor who is appointed by C & AG, Govt. of India.
Statutory Auditor audits the accounts and gives his observations on the accounts.
Management complies his observations. Finally statutory auditor presents the
annual accounts before the C&AG with his audit report.

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2.6 Adoption of Accounts:

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

management comply these observation. With these annual accounts is placed in the
AGM for adoption by shareholders of OHPC.

2.7 Filling Of Accounts:

After adoption of annual accounts in the AGM, financial statement are to be filed
with ROC within 30 days of AGM (Annual General Meeting).

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

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

NATURE OF INFORMATION PERIODICITY OF PREPARATION

Reservoir Level & Status of power station Daily
Power Generation Data Daily,Weekly,& Monthly
Monthly Sale Of Power Monthly
Man in position at corporate office & Units Monthly
Tenders As & When Floated
Information Under The Right To Information Monthly
Act
Information Under The Industrial Relation At Daily
The Power Stations
Accounts Of The Power Station Quarterly
Annual Reports Yearly

3.1 FINDINGS:-

The major findings from data analysis are as follows:-

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 1. The organization accounting system is totally computerized.So, they
followed different kind of MIS system.
2. The accounting system is based on accrual basis.
3. The organization is used latest version of TALLY software i.e. 9.2.
4. The accounting system which the organization followed is based on
Quarterly, Half-yearly, Yearly.
5. All the accounts which are prepared by the employees are daily up-to-dated.
6. They are using different formats for the preparation of accounts,like
Journal,Ledger,Trial Balance,Final Accounts.

3.2 SUGGESTIONS:-

Though the company don’t face any difficulties for handling the finance system
which is presently being followed,the organization has to change their accounting
system for not finding any error in the preparation of accounts in future. And also
the firm can compete with other firms of same business,who are adopting new
accounting system.

3.3 CONCLUSION:-

With this I can conclude that, the company is using different types of accounting
formats like Journal,Ledger,Trial Balance,Final Accounts,to maintain their policy.

Overall the accounting system of the firm is good.

TRAINING AND DEVELOPMENT SYSTEM OF OHPC Ltd.:-

1.1 INTRODUCTION:-

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Training is the process of increasing the knowledge and skill for a definite purpose.
The purpose of training is basically to bridge the gap between job requirements and
present competence of an employee. Training is aimed at improving the behavior
and performance of a person. It is a never ending or continuous process by which
conceptual and theoretical knowledge is gained for various purpose.

One of the main objective of the training programee is to strengthen the skill and
knowledge of the existing employees and secondly to bring them to a required
level. So,far the organization has given training to various managerial and non-
managerial personnels.To enhance the training programee,OHPC has started site
training, also they have started various work-shop on various techniques.

1.2 PURPOSE OF THE STUDY:-

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

process of teaching new employees the basic skills they need to perform their jobs.
Basically training and development process consist of five steps:- Needs analysis,
Instructional design, Validation, Implementation, evaluation. This is the
opportunities given by the organization, to improve my potential, and have a good
experience also. The purpose of my study is to acquire practical knowledge in the
field of training and development. And to get knowledge about how they trained
their employees, by following different processes. I want to learn how the new
employees are provided induction and training when they join the organization.
Further I want to learn how training need analysis is done and subsequently how
they are trained and evaluated after training.

1.3 OBJECTIVE OF THE STUDY:-

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

2. To identify different training phases in the firm.
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 3. To identify different training methods and describe evaluation of training.

1.4 SCOPE OF THE STUDY:-

To gain the practical knowledge to improve managerial performance by

imparting knowledge, changing attitude or increasing skills by training, and
know how it helps to enhance the productivity.

1.5 RESEARCH METHODOLOGY:-

The whole data for the study will be collected from primary and secondary
sources. The secondary data can be collected from the different reports of the firm.
To get primary data interviews and discussions will be conducted with different
persons of the human resource department. This will be done using some suggested
questions.

2.1 ANALYSIS OF THE STUDY:-

To fulfill the study the data will be collected by asking questions to the manager of
human resource department.

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2.1.1 ABOUT OHPC TRAINING CENTER:-

OHPC training center was established in May 1999 at Chandaka Industrial Estate
with the assistance of Department for International Development (DFID) –
Government of UK. It has been accredited with recognition by Central Electricity
Authority as stipulated in the Indian Electricity Rules and is an authorized centre
for imparting training to ITI qualified/non qualified technicians.The teaching
facilities include modern methodologies of classroom presentations with OHP and
LCD projectors and with well equipped laboratories and workshops.The faculties
are from the experienced field staff of OHPC Ltd.with adequate knowledge on
Hydro Power Plants.They have been given training in leading Technical-Training
Institute of the country.

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

Industrial Park,Chandaka and admist the many technical institutes there around,the
center provides an ideal environment for the training to personnel and their
assisting staff engaged in supervision, O&M in the Hydropower Plants.

Available infrastructure also facilitates organization of MDP and seminars.

Modern methodologies of class-room presentations with the use of OHP and LCD
projectors / panels get supplemented with well equipped laboratories and
workshops.

Air conditioned class rooms ensure continuous curriculums throughout all seasons
of the year. Computer facilities and use of CBT aided packages in training herald
the computer culture of new millennium. High-tech equipment like signal
generators, programmable logic controller and HV test probes are a part of the
inventories.

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In-house reprographic facilities and well furnished stores for workshop-
consumables help the center to function self sufficiently.

2.1.2 OBJECTIVE OF TRAINING CENTER:-

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

categories of employees of OHPC to provide induction training to new entrants,
refresher training to existing employees and also to organize managerial
development programees(MDP) for the executives of the organization. Apart from
the employees of OHPC, training is also imparted to summer interns from different
colleges and universities.

The objectives of training are:-

 To upgrade the skill of all categories of line staff in hydro power plants of
the country in bringing them to the required skill-level as stipulated in the
statutes of Indian Electricity Rules,1956.
 To provide Induction-trining to new entrants and Refresher training to in-
plant employees,thus maintaining the cycle with inbuilt upgradations.
 To design and develop customized plant-specific training courses for
participant hydro-plants.
 To provide sustained training programees through organized seminars for
corporate managers in developing their managerial,executive as well as
strategic skills.
 To develop human resource in acquiring innovative ideas and creativity
those can contribute to productivity improvement.
 To develop effective communication skill and sound work culture.

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The faculty at the center for the ongoing training programee have been trained at
leading Technical-Training institutes of the country.Further they have been
specially trained by internationally reputed experts of ESB,Ireland and Northern
Electric,UK. Well versed in the art of imparting training ,they create adequate
conditions for success of programees.

2.1.3 SEMINARS OF OHPC LTD.:-

The executives from other states are invited to provide best training
programee.OHPC has also been conducting short-term workshop seminars.For best
style of training OHPC has got recognition as categories are institute from Central
Electricity Authority(CEA).The training period for different programees varies
from each other.The maximum capacity for one batch of trainees are 32. No
stipend is given to the trainee.To appraise the performance of the employees
undertaken training a feedback form is also given.OHPC sends executives outside
Orissa for training purpose.Some of the training institutions are:-

 Engineering Staff College,Hyderabad.

 Administrative Staff College,Hyderabad.
 National Productive Council,Delhi.

Seminars in the much needed Management Development Programees for all

corporate employees in general and for the executives in the particular are
organized through Guest Faculty sourced from leading external msanagement
institutes.

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

comprising 1295 TNEs and 02 batches of Administrative Non-Executives
(ANE) comprising 22 ANEs from all units of OHPC have been completed
in a cyclic manner at the Training Center.
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 A total no. of 27 junior Executives (Assistant Managers and Junior
Managers) of technical discipline have been imparted refresher training
successfully at the Training Center in the year 2002.
 A total number of 111 Management trainees/Graduate Engineer Trainees
have been successfully imparted orientation cum induction training at the
Training Center during 2004 to 2009.

 The management Trainees and Graduate Engineer Trainees of 2009 batch

have undergone training relating to their discipline at CSREM,
Paralakhemundi and PMI, Noida respectively.

 Students of CIPET Bhubaneswar have been attended a program on Post

Diploma in Machine Maintenance at the Training Center in 2004.

 So far, a total of 791 executives have been imparted training outside the
state on various aspects relating to their discipline from 1998 till date.

 MDPs are also being conducted regularly at the Training Center. A total of
559 executives have participated in MDPs during 1999 till date.

 Training programmes on various aspects like power plants operation,

maintenance, protection and control, ORV Act & Rules, Factories Act and
Rules, Executives Performance Appraisal, etc are also conducted at the Unit
premises for both executives and non-executives regularly.
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  A total of 11 technical executives have been sent to foreign nations like
germany, Russia and Japan etc. to attend training programees on various
technical aspects related to Hydro Power during 2003 to 2008.

 Executives in the level of Directors from Finance and HRD have been to
UK to attend a training programee sponsored by DFID in 1999-2000.

3.1 FINDINGS:-

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

2. The training programee which is conducted is a good one for present and
future development.
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 3. The employees of the organization take the training positively,and also the
training aims at improving the skill of the employees.
4. The training and development process is an effective one to overcome their
weakness,and also the employees can move ahead into the future with
confidence.

3.2 SUGGESTIONS:-

There are certain loopholes which I came to know during my training programee to
OHPC,need to be taken care of for the betterment of the organization.

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

evaluation.
 There should be system of potential appraisal to identify employees who
have potential to take higher responsibility. Also there should be a periodic
review of the system.
 The management should come down to the workers level to work hand to
hand,understanding and sharing each others feelings and difficulties which
will help in building a familiar atmosphere in the organization.
 The training policy should be maintained, consistent effort should be there
for its development and intensive campaign programee should be done in
highlighting the benefits of trainings.
 The awareness between the employees should be created to participate more
and more in collective bargaining process.
 Mechanism for rewarding good work or any contribution made by the
employees should be improved.
 Employees should be encouraged to experiment with new methods and try
out creative ideas.

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3.3 CONCLUSION:-

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

is engaged in Hydro Power Generation in all its six units all over Orissa and sells it
to GRIDCO,its sole customer.

During my stay here,I gained a lot of knowledge and also got an exposure to the
various HR practices adopted by the organization.

The HR department of OHPC is well organized and also the HR policy of the
organization is well defined.At OHPC the method of recruitment and selection are
good. A written test,GD and interview follow the selection of candidates.

In OHPC two types of training programees are conducted namely in house and
external training programee.These training programees are designed,developed and
conducted to acquainted the employees with the changing environment.

Welfare facilities are provided to the employees for their betterment and towards a
prosperous future of their members.The educational, medical, recreational facilities
are provided to the employees, which changed their life style, and increase their
standard of living.

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

ORGANISATION STRUCTURE OF OHPC LTD.:-

1.1 INTRODUCTION:-

An organization structure is a mainly hierarchical concept of subordination of

entities that collaborate and contribute to serve one common aim.
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Organisations are a variant of clustered entities.An organization can be structured
in many different ways and styles,depending on their objectives and ambience. The
structure of an organization will determine the modes in which it operates and
performs.

Organisational structure allows the expressed allocation of responsibilities for

different functions and processes to different entities such as the branch,
department,workgroup and individual. Individuals in an organizational structure
are normally hired under time-limited work contracts or work orders, or under
permanent employment contracts or programee order.

1.2 ABOUT THE STAFF:-

CMD:- Chairman Cum Managing Director

CGM:- Chief General Manager

GM :- General Manager

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DGM:- Deputy Genaral Manager

AGM:- Assistant General Manager

DM:- Deputy Manager

AM:- Assistant Manager

MT:- Management Trainee

1.3 TYPES OF DIFFERENT STRUCTURE OF OHPC:-

The entire organizational structure of OHPC has been divided into three basic
wings such as,

 Operation
 Finance
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  HRD

1.3.1 Operation:-

On introduction of Availability Based Traffic with effect from April 2003 and
application of Electricity Act 2003,It has become important on the part of
generators to maintain high level of machine availability and plant load factor.
Hydro power generation has special place in the load management under ABT
regime.

1.3.1.1 Activities:-

For efficient remaining of their Hydro power stations, the operational wing of
OHPC has been recognized to carry out following activities,

 Monitoring the functioning of power plants

 Preparation of database
 Monitoring of Renovation and Modernization Programmes
 Planning for future R & M Programmes and new projects
 Inventory and Procurement Monitoring
 Generation and maintainance planning and monitoring
 Tariff and PPA including coordination with GRIDCO and OERC
 Computerization and online communication
 Coordination with Govt. and Semi Govt.bodies.

1.3.2 Finance:-

After the formation of OHPC under the Reform Act a separate finance wing with
experienced and qualified executives has been created to manage the corporate
finance.

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1.3.2.1 Activities:-

For efficient remaining of their Hydro power stations, the finance wing of OHPC
has been recognized to carry out following activities,

 Resource Management
 Budget Allocation
 Banking
 Loan and Investment
 Account and Audit
 Taxation
 Personnel Entitlement
 Provident fund, Pension and Gratuity fund.

1.3.3 HRD:-

OHPC was formed interms of the Orissa Electricity Refotm Act,1995 and the
Orissa Electricity Reform (Transfer & Undertakings, Assets Liabilities,
Proceedings and Personnel) scheme Rules 1996.Consequent to formation of
OHPC, professional were inducted into the organization. The organization
structure of OHPC is annexed being a newly, set up corporation with employees
from elsewhere.

1.3.3.1 Activities:-

For efficient remaining of their Hydro power stations, the HRD wing of OHPC has
been recognized to carry out following activities,

 Industrial and Relation and welfare

 Contract Labour

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  Welfare Activities
 Other Functions
 General Administration
 Estate
 Legal
 Public Relation

2.1 FINDINGS:-

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

2. There has been a proper chain of command which is integrated to all channel
or department of the firm.
3. All the employees of the organization are very cooperative in nature.

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2.2 CONCLUSION:-

Overall I came to know that, although the company is following old structure from
many years but, there is a good coordination among all the employee, employers
and various department.

BIBLIOGRAPHY:-

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

2. Management Accounting, (2009), Sharma And Gupta, (Kalyani
Publications, 9th edition).
3. Fundamentals Of Accounting, Kalyani Publications, 8th edition.
4. http://www.wikipedia.com.

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

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