ENGRO

POWERGEN
THAR (PVT.)
LTD.
PRESENTED BY:
SANA SIDDIQUI (FA20-MSMG-0018)
SHAHNAWAZ QAMAR (FA20-MSMG-0019)
ABOUT THE PRODUCT

 Product: Electricity
 Industry: Independent Power Producers (IPPs)
 Department: Account & Finance
 Regulator: NEPRA
RAW MATERIALS - COAL

 15 days inventory is management

 FIFO System is used
RAW MATERIALS - COAL
RAW MATERIALS - LIMESTONE

 20 days inventory is management

 FIFO System is used
RAW MATERIALS - LIMESTONE
RAW MATERIALS - WATER

 No inventory is management.
 It is obtained by the Company from the
O&M operator of water supply from the
LBOD Scheme at Nabisar up till Vajihar.
 They supply 35 cusecs of treated water to
EPTL in Block-II of Thar parker.
MATERIAL PROCUREMENT & USAGE
PROCESS

 Material is procured from Selected vendors Based on price & Quality offered.
MATERIAL PROCUREMENT & USAGE
PROCESS - STEPS

 End-user shall make the PR duly approved as per LOAM and forward it to Commercial Dept, who shall
process the purchases as per the SOP.
 Invitation of bidding from Commercial Dept.
 Selection of vendor upon bid
 Issuance of Purchase Order/ contract 
 The vendor shall deliver the material to the Site through the warehouse.
 upon Receipt of good as site, goods receipt Note is prepared in the system, copy of which is handed over to
Vendor.
 The invoices/bills shall be processed in accordance with SOP -"Payment processing of Invoices/Bills.”
LABOR

 Labor is outsourced to ‘Operation & Maintenance

Service Provider’. The vendor is paid as per
agreement.
FACTORY OVERHEAD (F.O.H)

The following costs are part of admin cost and not directly absorbed in material price as it is regulated by
NEPRA:
 Utilities
 Accommodation to Staff
 Travelling to Site
 Food
COSTING SYSTEM OF ENGRO’S OF EPTL

The system is completely integrated from procurement to payment in SAP:

 Martial is managed by MM team in SAP and physical.
 PO/Contract is managed by commercial department in SAP.
 Finance and planning department manages all budgets and costs.
 Accounts department manages all records and reporting of tax and assets.
PER UNIT COST

We know that, the formula for per unit cost is,

Per unit cost =
Hence, if Engro produces 120000 units, and its total fixed cost is 1600000 and variable cost is 7.5 per unit then,
  
Per unit cost =
Per unit cost = 20.833 Rs.
RESPONSIBILITY ACCOUNTING REPORT

 They are PnL (Profit and Loss) report that they share with the top management on monthly basis.
 ACKNOWLEDGEMENT
Jazib Siddiqui
Financial Reporting Accountant
Engro Powergen Thar (Pvt.) Ltd.