SUMMER INTERNSHIP PROJECT FOR MASTER OF MANAGEMENT STUDIES [M.M.

S] DEGREE IN PARTIAL REQUIREMENT DURING 2008-09 SUBMITTED TO IBSAR INSTITUTE OF MANAGEMENT STUDIES Karjat Dahivali , Tarfe Need Dist-Raigad TITLE OF THE PROJECT - PAYMENT THROUGH E-MODE AT INDIAN OIL CORPORATION LTD . BY NAME - MAHENDRA .S. DHENAK ROLL NO – 17 , MMS – II , E-MAIL ID – Mahendra.dhenak@gmail.com , CONTACT NO – 9029243946. Under Guidence Of – MR. Dr. Phopale A. [Internal guide] MS. Shalini Kabra [External guide ]

AUTHORIZATION

This Project is prepared on the basis of summer training from 1-5-2009 to 30-6-2 009 as a part of two year MMS course at IBSAR college , karjat

ACKNOWLEDGEMENT

First & Foremost I would like to Special Thank MR.V.S.DUGAR [DGM] who provide me opportunity to work in his FINANCE department without whom this wouldn’t be p ossible . I would like to Thank MR.RAJESH GOHEL [SR. T&D MGR] for Providing me an opport unity to do project on PAYMENT THROUGH E-MODE . I would also like to Thank MS. SHALINI KABRA [AO] , MR. PRAKASH TARACHANDANI [ASST.MGR ], & MRS.NITISHA DESAI [AO-II] for helped dur ing course of my internship & encouraged me to complete it successfully. Last but not least I would also like to Thank MR. Dr. Phopale A at IBSAR College Karjat for being my mentor in my persuit to success .

CONTENT I – COMPANY’S SUMMARY - PROFILE - OVERVIEW - PRODUCT

II - COMPANY’S STRUCTURE III - COMPANY ‘S FINANCIAL PERFORMANCE - TABLE - GRAPH - OWNERSHIP COMPOSITION [ SNAPSHOT ] IV – INTRODUCTION TO PROJECT - OBJECTIVE OF PROJECT - CASH MANAGEMENT SYSTEAM - CASH MANAGEMENT PRODUCT V – TYPES OF ACCOUNT - CURRENT ACCOUNT WITHDRAWAL ACCOUNT IMPREST ACCOUNT LETTER OF AUTHORITY RAILWAY CREDIT NOTE FACILITY CASH CREDIT ACCOUNT

- REGIONAL CASH CREDIT ACCOUNT VI – ELECTRONIC MODE OF FUND TRANSFER - NATIONAL ELECTRONIC MODE TRANSFER - REAL TIME GROSS SETTLEMENT [ RTGS ] - FLOW OF FUND IN RTGS [CHART ] - ICICI BANK INSTRUMENT CARD - INTERNET - BENEFIT OF ELECRONIC PAYMENT VII – PERCENTAGE OF PAYMENT THROUGH VARIOUS MODE IN MARCH 2009 [ PIE-CHART ] VIII –WORKING OF PAYMENT TRANSACTION UNDER SAP R / 3 MODULE

- CREATING CASH RECPT OF PAYMENT DEPOSITED BY CUSTOMER [ SNAPSHOT ] - PRINTING CASH RECPT - GENERATING THE DCR [ SNAPSHOT ] [ SNAPSHOT ]

- CREATING LIABILITIES FOR WITHDRAWAL ACCOUNT [ SNAPSHOT ] -TO MAKE PAYMENT TO VENDOR [ SNAPSHOT ]

IX - TO PROCEDURE FOR MAKING ENTRY FOR CREDIT NOTE - CREDIT NOTE – XEROX COPY - CONTROL SHEET - PROFORMA - ENTRY FOR CREDIT NOTE [ SNAPSHOT ] X - PROCEDURE FOR CENTRAL SALES TAX - INTRODUCTION OF CST - TO PREPARE STATEMENT - TO INDENT OF STATEMENT - TO SUBMIT ONLINE TO CST DEPT - ISSUE OF C FORM [ PROFORMA C FORM ] XI - LINKING C FORM FROM OTHER STATE - LINKED C FORM [ XEROX COPY ] - PENDING C FORM [ XEROX COPY ] XII – LEARNING

XIII – REFERENCE

XIV – CONCLUSION

COMPANY PROFILE Indian Oil Corporation is an Indian public-sector petroleum company. It is India ’s largest commercial enterprise, ranking 116th on the Fortune Global 500 listing (2008). It began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Cor poration was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oi l and its subsidiaries account for a 47% share in the petroleum products market, 40% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India s 19 refi neries with a combined refining capacity of 60.2 million metric tons per year OVERVIEW Indian Oil operates the largest and the widest network of fuel stations in the c ountry, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It reaches Indane cooking gas to over 47.5 million households through a network of 4,990 Indian distributo rs. In addition, Indian Oil s Research and Development Center (R&D) at Faridabad sup ports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. Subsequently, IndianOil Technologies Limited - a wholly owned subsidiary, was se t up in 2003, with a vision to market the technologies developed at IndianOil s Research and Development Center. It has been modeled on the R&D marketing arms o f Royal Dutch Shell and British Petroleum. PRODUCT Indian Oil s product range covers petrol, diesel, LPG, auto LPG, aviation turbin e fuel, lubricants, naphtha, bitumen, paraffin, kerosene etc. Xtra Premium petro l, Xtra Mile diesel, Servo lubricants, Indane LPG, Autogas LPG, Indian Oil Aviat ion are some of its prominent brands. Recently Indian Oil has also introduced a new business line of suppl ying LNG(Liquefied natural gas) by the cryogenic transportation. The branding ca

 

 

 

 

lled "LNG at Doorstep". Lng headquarters are located in scope complex, Lodhi Roa d Delhi.

ORGANIZATION STRUCTURE The The whole of Indian Oil Corporation (IOC) works under Corporate Office located at New Delhi. It follow hierarchical structure where the decision flows from top to bottom and the data flows from bottom to top .

FINANCIAL PERFORMANCE & ACHIEVEMENT 2003-04 2004-05 Turnover (Rs/crore) 130203 Profit After Tax(Rs/crore) Earnings Per share(Rs) 59.97 Debt Equity Ratio .53:1 TURNOVER FOR 5 YR 2005-06 150729 7005 41.88 .67:1 2006-07 183172 4891 42.08 .90:1 2007-08 220779 4915 62.9 .78:1

247479 7499 6963 58.39 .86:1

OWNERSHIP COMPOSITION

INTRODUCTION TO PROJECT ON PAYMENT THROUGH E-MODE AT IOCL . OBJECTIVE OF PROJECT • • To Gain Insight On History And Evolution, Business Model, Organizational Structure And Operations Of IOCL To Study And Evaluate The Payment System At Indian Oil Corporation Ltd .

PRESENT CASH MANAGEMENT SYSTEM IOCL is a huge organization and involves in marketing of petroleum prod ucts all over India and across also. The product flow path encompasses Depots, t erminals, plants and AFSs which are engaged in purchasing and selling products a nd money is paid and collected at all these places. Being a huge organization al l transaction of IOC takes place through cheques, Demand Drafts, Letter of Credi t etc. and a very few in cash. Proper fund management and accounting of such fun ds at each centre is paramount importance and ensuring quickest availability of funds at central cash credit account by evolving and streamlining the system for pooling of funds, in order to optimize the use of valuable resources of the org anization. IOCL has MOU with SBI according to which the Bank caters to various b aking needs of the corporation. Corporate Accounts Group (CAG) – central office of SBI at Andheri, M umbai is the controlling office of SBI. It is the controlling office of SBI havi ng Sanctioning Authority for the various credit facilities and the other banking needs of the corporation. CAG of SBI operates with network of branches called " CAG Branches" in all the Metro Cities. IOC is the biggest customer of SBI and be cause of this IOC enjoys lots of facilities. The Credit Facilities of the Corporation provided by SBI are divided into two pa rts: Fund Based Facility It is the amount of overdraft obtained from the Bank. At present the total overdraft limit of the corporation is controlled through the Main Cash Cr edit Facility. Other accounts opened at various branches and other places are ju st the extension of this limit. It gets renewed time to time. Non Fund Based Facility These facilities are for pure banking convenience provided by the ba nk, so that the Corporation can carry out the Business transactions. Various Non Fund-Based facilities available include o Performance/ Financial bank Guarantee Facility o Letter of Credit Facility - Inland , o Letter of Credit Facility – Import .

CASH MANAGEMENT PRODUCT (CMP) Cash management product is a facility provided by SBI to its corpora te clients in which collections and withdrawals from various branches are transf erred via electronic mode to their respective pooling centers. Under CMP facilit y provided by SBI to IOCL, the entire day end balances for different collection centre where the receipts of various state offices branch and depots are transfe rred to the main Cash Credit Account maintained in SBI branch Mumbai. The CMP facility can be divided into two Main Modules • The Credit Module of CMP: This module deals with the Collection Proceeds • The Debit module of CMP: This Module deals with the Withdrawals. Under CMP no new account is opened rather on receipt of the request for collection account for a location, HO Finance gets a separate, client code allotted to the location through CMP cell Mumbai. Such Client code is unique for each location . The CMP Charges are divided into 3 broad categories: • 0.01/ 100 for all the Metros i.e. A Class City • 0.05 / 100 for all the B Class Cities (that includes mainly Capital Citi es) • 0.12 / 100 for all the C Class Cities (this includes all the other locat ions not included in the above 2 categories) The CMP Module provides convenience to the Company in the sense that, the information flows to the company faster and according the company can have precise information of where the funds are and how to utilize them more efficien tly. IOCL has wide network of activities scattered in various parts of the country. E very day it has to make collections from more than 500 branches and accordingly payment is also taken care off. In order to accurately assess the collections f rom various locations the CMP facility of SBI is used. Now CMP operates through a chain of activities involving the various regional offices, locations coming u nder them and the head office. These operations involve large no. of accounts . TYPES OF ACCOUNTS The different types of accounts IOC operates for its Cash Management includes A – CURRENT ACCOUNT Collection accounts are opened for various locations and other offices for depos iting various instruments collected from customers/parties. Characterastic Closing balance in these accounts should not be more than Rs 1000 at the end of each day. If an instrument is not cleared within 15 days of depositing follow-up a ction is taken against party or customer. Any debit for dishonor or loss in transit after 60 days from the date of deposit is done with prior intimation to the company.

B- SPECIAL CURRENT [ WITHDRAWAL ] ACCOUNT This account is opened at all Regions and State Offices for the purpos e of withdrawal. The locations having monthly payments of more than Rs. 1 crore have the facility of this account. For this purpose locations are to assess thei r fund requirements and put up the proposal for opening it as this will result i n avoidance of blockage of funds. Characterastic No pre-funding of this account is done. All payments made are centrally funded from the corporation s main Cash Credit Account at Mumbai. Daily balances are transferred through Regional Cash Credit Account to M ain Cash Credit Account at Mumbai.

 

Cheques that are more than 6 months old should not be revalidated and tr ansferred to time barred cheque code. C – CURRENT IMPREST ACCOUNT This account is generally opened at all locations of IOC. Main purpos e of the account is to meet day-today expenses of respective locations . Characterastic This account has to be pre-funded by State/Region Office. It’s safe because locations cannot make payments more than the credit av ailable in the account. Only computerized cheque books printed by IOC should be used with "Accou nt-payee only" printed on. D – LETTER OF AUTHORITY At every location of IOC some special type of payments are made, e.g. Customs and Excise Authorities or Payment to Port Trust Authorities or Payment to other refineries for cost of product etc. With the help of this facility paym ents can be made to these authorities from respective locations. Characterastic Various payments to only one authority can be made via this facility. For payments to different authorities from one branch only there should be approval for this from IOC as well as SBI and then a new facility for new aut hority payment is made. For the payment of Excise duty, only three LA s in a month can be issued not more than that. For the payment of others e.g. Customs / Port Trust etc. no such restriction is imposed . E – RAILWAY CREDIT NOTE AUTHORITY This is a special facility provided by SBI in which IOC s all locations can make payments for Railway freight. All locations, under this facility are au thorized to make payment of Railway freight, shunting charges etc.

Three ways of making payment under this facility:1. By having a special current (withdrawal) account of the location. 2. By issuing cheques of special current (withdrawal) account maintained at the RCC branch. 3. By issuing Railway Credit Note (RCN) . Characterastic Any other payment accept from RCN is not permitted under this facility b y the bank. Locations need to have pre-printed cheque books with the name of Railway . Authority to which payment is made. SBI cannot charge any charges for accepting IOC s cheques presented by t he Railway s banker. F – CASH CREDIT ACCOUNT Cash credit Account is the principle Account operated by the HO marke ting division to transfer the day end balances of cash collected at the pooling center. Characterastic Transfer of funds from all other accounts like the Collection account, S pecial Current (Withdrawal) Account etc. except the Current Imprest Account are to the Cash Credit Account. Apart from Transfer entries all payments handled by HO like purchase of foreign currencies, repayment of Loan availed, and etc. is directly debited to t he Cash Credit account.

 

 

 

 

Interest payable to the bank are based on daily "Value Dated" balances i n the CC Account and is calculated every quarter by applying the prevalent Prime -Lending rate and interest amount is debited to Cash Credit Account. G – REGIONAL CASH CREDIT ACCOUNT Each regional office of the Marketing and other Divisions of the corpor ation individually operates a Regional Cash Credit (RCC) Account for recording t he entries where the SBI cannot provide the CMP facility. ELECTRONIC MODE OF FUND TRANSFER Electronic modes of Fund Transfer enable an efficient, secure, economical and reliable system of transfer of funds from bank to bank as well as from remi tter’s account in a particular bank to the beneficiary’s account in another bank across the country. NATIONAL ELECTRONIC FUND TRANSFER [ NEFT] Electronic payment system in which payment instructions between banks a re processed and settled on deferred net settlement (DNS) basis at fixed times d uring the day. There is no minimum or maximum stipulated transaction value for u sing this facility. Under this system, RBI acts as an intermediary between the remitting ba nk and the receiving bank and effects inter-bank funds transfer. The remitting b ank gives remittance instructions to its service branch which in turn provides r emittance details to RBI. The RBI sends the credit to the service branch of the beneficiary bank, and the service branch passes the same to the branch where ben eficiaries’ account is maintained . REAL TIME GROSS SETTLEMENT [RTGS] Real time gross settlement (RTGS) system is a transparent method for s ettlement of inter-bank transaction. An ideal RTGS means that a cheque issued by a customer drawn on any branch of a bank deposited in any branch of another ban k gets instantly cleared. Simultaneously, the funds position between the two ban ks gets settled in the central hub of the central banking institution. It involv es intricate communication and networking for transfer of data. There is certai nty of payment and the receiving bank can credit the beneficiary s account immed iately and allow full use of the funds. Available for transaction value of Rs.1. 00 lakh and above. In broad terms, it involves two steps of networking: Intra-bank (netw orking of branches within the bank) and inter-bank (networking of banks and othe r participants through a central hub). RTGS is being promoted through connectivi ty of banks and participants with the central hub of Reserve Bank of India (RBI) . At IOCL, RTGS mode of collection of funds has been launched in June 20 08 after successful trials. Under this system, the funds can be transferred by t he IOC’s customers from any of their bank to SBI on “Real Time” and on “Gross” b ases . Characterastic This network is provided by RBI across the country among all the banks . Every payment trough RTGS is identified with a Unique Transaction Number (UTR) which will be captured while posting collections in SAP and the s ame is reflected in the PAD also. From the time the customer remits the payment to the time his a/c in IOC receives The credit, the process takes about 2/3 hrs only as compare to banking instruments that may take up to 2/3 days.

 

FLOW OF FUND IN RTGS/NEFT Customer’s bank C’sBank IOC’s Bank Vendor’s account Collection of payments Making Payments IO

ICICI BANK INSTRUCTION CARD ICICI bank offers scheme to provide the card based solution i.e. the payments by the retail dealers/ distributors to IOC trough customized “Instruct ion Card”. Characterastic Instruction card is issued only to selected dealers Its almost like debit card, used by dealer at IOC location for authorizi ng the bank for debiting dealer’s overdraft account with the bank and making payments to IOC. Card reader machine is installed by the bank at IOC supply point. Card s hall be swiped by IOC officer and the amount is keyed in and charge slip is gen erated. IOC has separate bank account with ICICI at head office centrally for th e purpose of pooling the collections made through instruction card all over Indi a. INTERNET At IOCL collection/payment of funds is also done using e banking fac ility provided by the SBI bank. Almost 50% of payments made by IOC is done troug h internet. Lots of care is being taken for proper authentication of such paymen ts. BENEFIT OF ELECTRONICS PAYMENT Enormous manual work of handling instruments, preparation of cash receip ts DCRs, and etc gets eliminated. RTGS payments by customers will enable savings in float of funds to IOCL since in case of DD/Pay order/Cheque; funds are credited in IOCL account afte r 2-3 days. Administrative convenience to customers since they are required to advis e their own banker to transfer to IOCL account without any further botheration of ensuring that instrument reaches the supply location. RTGS collections received in IOCL bank account at SBI CAG Mumbai will be accounted for in SAP centrally from HO banking through file upload opti on thereby reducing work at various supply locations as no cash receipts & DCR will be generated and further bank reconciliation entries will drastically reduce.

PERCENTAGE COLLECTION THROUGH VARIOUS MODE IN MARCH 2009 About 57% of collection has taken place through electronic mode (54% RTGS/NEFT, 2% instruction card, 1% internet) and rest 43% is through cheques and cash receipt) .

WORKING OF PAYMENT TRANSACTION UNDER SAP R/3 FINANCE MODULE . IOCL has adopted SAP R/3 ERP software for its various operations, activities and their integration across all major locations, state offices, regional offices and head offices.

PERCENTAGE COLLECTION THROUGH VARIOUS MODE IN MARCH 2009 Approx 73% of payments made by IOC is done through electronic mode (49% Internet and 23% RTGS/Internet)and 28% through trad itional mode.

Here some activities which I have learnt pertaining to payment are discussed as they are carried on the SAP platform . SAP CAN START WITH LOGIN ID & PASSWORD . EACH DEPT. HAS SEPARATE LOGIN ID & PA SSWORD. I AM WORKING IN FINANCE DEPT. THIS DEPT ALSO USE A SEPARATE LOGIN ID & PASS WORD .IT IS COMMON FOR ALL THOSE WHO WORKING IN FINANCE DEPT. IF WE TYPE IT

WRONGLY , ENTIRE SAP SYSTEM LOCK . IT IS OPERATED FROM DELHI SERVER . WHEN WE CLICK O N SAP ICON

CLICK ON LOG ON ,TYPE LOGIN ID & PASSWORD 1 - Creating the cash receipt of the payment deposited by the customer Step 1: TCODE: F-28 used Step 2: All relevant information is entered like document date, type, account no . of customer and bank account no. , type of instrument and its number as assignment Step 3: Details of the bank account where the amount need to be transferred are entered Step 4: Details of the customer’s account who has made the payment and type of p roduct. Step 5: document is simulated and saved. 2 - Printing the cash receipt Step 1: TCODE YF42 is used . Step 2: Document No. is entered and execute Following is the format of generated cash receipt 3 - Generating the DCR - A DCR is generated for all the cheques received during the day Step 1: TCODE YF07 Step 2: company code, date and account no is entered Following is the format of the DCR generated. This report is transferred to RO/S O and amount in the bank account is transferred to RCC or CC account . 4 - Creating Liabilities for withdrawal account Step 1: TCODE: FB60 Step 2: Enter the vendor account, date, bill number in references, amount, GL ac count from which the payment need to be made. Execute Following overview is displayed 5 - To make payments to the vendor Step 1: TCODE F-53 . Step 2: enter the document date and posting date, account no, amount .

Step 3: Click process open items. Select the amount. Simulate and save PROCEDURE FOR MAKING ENTRY FOR CREDIT NOTE

CREDIT NOTE issue to party for sales promotion , product promotion disc. etc . We can take Party code ,& Credit area from CONTROL SHEET & then make entry in SAP . PROFORMA OF CONTROL SHEET SR.NO PARTY NAME PARTY CODE CREDIT AREA 1 M/S A.MANILAL LUBRICANT SEWREE RSE - MUMBAI 215578 001 2 M/S AMCO DISTRIBUTORS SEWREE RSE – MUMBAI 200749 001 3 M/S DOSHI ENTERPRISES SEWREE RSE – MUMBAI 199950 001 4 M/S INDUSTRIAL LUBE KALAMBOLI RSE - THANE 202170 001 5 M/S MINAR LUBRICANT CFA PUNE RSE - PUNE 193140 023 6 M/S PRITAM AUTOMOBILE CFA PUNE RSE - PUNE 126183 023 7 M/S VARDHAMAN LUBRICANT CFA PUNE RSE - PUNE 149112 023

8 M/S P RAMESHCHANDRA & CO CFA PUNE RSE - KOLHAPUR 141576 023 9 M/S GOMTESH ENTERPRISES CFA PUNE RSE - KOLHAPUR 217270 023 10 M/S KISHAN SERVO CFA PUNE RSE - PUNE 133085 023 11 M/S S R VENTURE CFA PUNE RSE-AURANGABAD 215655 023 12 M/S UMED SERVO CFA PUNE RSE-AURANGABAD 219378 023 13 M/S MORYA TRADING CO. CFA PUNE RSE – AKOLA 133288 001 14 M/S SR LUBRICANT & FILTERS CFA PUNE RSE – AKOLA 220257 001 15 M/S A.MANILAL & SON NASHIK DEPOT RSE-AURANGABAD

212449 001 16 M/S PRERANA TRADING GAIGAON DEPOT RSE – AKOLA 220256 001 17 M/S TLB TRADE LINK KHAPRI DEPOT RSE - NAGPUR 149403 001 18 M/S AWDHOOT TRADE LINK KHAPRI DEPOT RSE – NAGPUR 156785 001 19 M/S MERCURY ENTERPRISES KHAPRI DEPOT RSE – NAGPUR 193142 001 20 M/S DHAWALIKAR AGENCIES VASCO TERMINAL KAM - GOA 131933 001 CREDIT NOTE – XEROX COPY 6 - TO MAKE ENTRY FOR CREDIT NOTE IN SAP PLATFORM

Step 1 : Type TCODE F-51 Step 2 : Enter the document date and posting date, Type ,Company code ,Referenc e ,& Doc.Header text .

Step 3: Enter Party Code { given} ,Amount , Assignement & type Text { narration } [CREDIT A/C] Step 4: Open Exp. A/c e.g COMMISSION & DISCOUNT A/C .[ DEBIT A/C] Enter EXP. CODE 519912100 & Types same Amount,Material,Assignment & Text .

Step 5 : Click on document - Simulate . It should be tally Step 6 : click on save option

Once doc. is saved SAP generated DOC. NO automatically . It should be written i n Credit note .e.g 102723 . Step 7 : To check entry Enter TCODE – FB03 Type Company Code ,Posting Date ,Financial yr

After that DOCUMENT LIST is displayed , which involve transaction in sequence .

We can see a transaction separately in following way .

CENTRAL SALES TAX Sales Tax is one of the most important Indirect Tax for purpose of tax ation by State Governments.Revenue from CST goes to State from which movement of goods commences . MVAT ACT deal with tax on sale /purchase within state of Maharashtra . similarly , each other state in India has its own local SALES TAX which impos e tax on local sales/purchase . however ,According to Article of 286 of Constitu tion of India , a state can’t levy tax on inter-state sale or on import into India or Export out of India .The CENTRAL SALES TAX ACT ,1956 deal with tax on inter-state sale/purchase . Objects of the Act, as stated in preamble of the CST Act are – To formulate principles for determining (a) when a sale or purchase takes place in the course of inter-state trade or c ommerce . (b) When a sale or purchase takes place outside a State . (c) When a sale or purchase takes place in the course of imports into or export from India . CST was cut to 3 per cent on April 1, 2007 from 4 per cent and it was t o be reduced to 2 per cent on April 1, 2008 .From 1-4-2010 CST will be abolish . CST issue following form such as F FORM F FORM is single Declaration may cover all transaction of transfer o f goods otherwise than sale effected within one celender month for every year . It must be separate .It should be one which transferee has obtained from author ity of state in which such good are to be delivered . H FORM Selling dealer must obtained H FORM from Exporter . It should be duly filled in . Schedule is attach to H FORM which is also required to be filled in by given detail .

C FORM Importance of C FORM so far as Concessional rate of tax is concerned under CST ACT The production of C FORM for the purpose of concessional rate of tax during course of assessment is so important that any negligence in this rega rd might result in depriving the assessee of it’s legitimate claim .Assessee is entitled to get defect set right from purchasing dealer & reproduce the same. When a C FORM as furnished by buyer has been lost , selling dealer may demand from buyer a duplicate C FORM with declaration recorded in red ink & signed by b uyer on all portion of certificate .C FORM are valuable document both from the S eller’s point of view & Purchaser’s point of view , even from the Govt. point of view .therefore it’s safe custody is essential .It is importance from the point of Seller because unless he produce C FORM from his sale can’t be taxed at conc essional rate .From the point of purchaser , he has to account disposal of form which he has to obtained from the Registering Authority . If he fail to do so then inter-state purchase can be estimated agains t such C FORM & dealer would be taxed on such sales under local ACT . From the p oint of Govt. it is importance because if C FORM fall in hand of unscrupulous person then they would be purchasing good at concessional rate & would not be sh ow such sales in his book of account . PROCEDURE FOR ISSUANCE OF C FORM UNDER CENTRAL SALES TAX PREPARE STATEMENT IOCL ask for detail of transaction [ purchase] ,invoice , payment de tail ,& purchase order from each party From that IOCL preare statement of each party in EXCEL SHEET FORMAT . Each statement contain Name of Party , Period , P O NO , Sr.No ,Invoice No., Invoice Date , Amount .Total. [ copy attached ] Prepare following statement of some parties are ADYA OIL CHEMICAL LTD , CREST CHEMICAL LTD , CIBA INDIA LTD , INTERNATIONAL CYLINDER PVT. LTD , KANCHI PLAST ENTERPRISES , MOLD TEK TECHNOLOGIES , ORONITE, PIONEER PACKER LTD , RAJIV PLASTIC , T & D GALIAKOT CONTAINER PVT. LTD , YASHRAJ CONTAINER KUSA CHEMICAL PVT. LTD , PREMIER HALLOWARE . INDENT OF STATEMENT CENTRAL SALES TAX DEPT. issue C FORM against SALES TAX. IOCL receive detail of transaction [ purchase] ,invoice , payment detail ,& pu rchase order from each party . All statement are indent into EXCEL SHEET for each par ty. SUBMIT ONLINE TO CST DEPT. It is submitted to SALES TAX DEPT. online against each CST NO .[ copy attached ] ISSUE OF C FORM After one month , SALES TAX DEPT. dispatch C FORM to IOCL by post . C FORM are check with indent statement i.e period , amount , party name . whe n it is ready , statement of each party’s are paste / staple behind each party’ s C FORM with duly signed by authority person . purchaser has to give C FORM to seller .therefore IOCL give C FORM to party. Each party called for taking delivery of C FORM by hand by signed on REGISTER , C FORM is divided into 3 part : 1) Counterfoil , 2) Duplicate , 3) Original .

With same period , amount ,& party name . Duplicate & Original C FORM are given to party & Counterfoil are kept with himself . Each C FORM has separate number which is mentioned in statement of each party . C FORM 1) 2) 3) 4) are given period-wise for each party e.g APRIL – JUNE , JULY – SEPTEMBER , OCTOBER – DECEMBER , JANUARY – MARCH .

When C FROM issued to party, there is another entry in files of C FROM ISSUED R egister.[ copy attached ] LINKING OF C FROM When IOCL make sales to other party .party has to issue C FORM to IOC L @ 2% again sales. After issuing C FROM , it is linked & make separate files as LINKING OF C FROM in EXCEL SHEET as per period wise . It include Party Name ,P ost date ,Bill document ,Total , C FORM NO , Sr.No , Status , Period . From that we can come to pending C FROM which is not linked yet. It include all detail ex cept Status . [ copy attached ]

PENDING C FORM PENDING LIST SHOW THOSE C FORM WHICH ARE NOT YET RECEIVED / LINKED PENDING C FORM FOR YEAR 2007-08 WORKED BY MAHENDRA DATED 19.05.09 BILL DOCNO 623403589 PENDING JAN-MAR 623875163 PENDING JAN-MAR 623753400 JAN-MAR 623730432 623687276 JAN-MAR 623350590 PENDING JAN-MAR 623857233 PENDING JAN-MAR 624340605 LUR 267306 624492077 PENDING JAN-MAR 624533863 PENDING JAN-MAR 623084996 JAN-MAR 620716988 JULY-SEPT 622567328 OCT-DEC 621473012 PENDING OCT-DEC POST DATE 25012008 21022008 14022008 13022008 11022008 23012008 20022008 PAYER PAYER_NAME TOTAL STATUS QUARTER 120518 BDK ENGINEERING INDUSTRI 301823 120518 BDK ENGINEERING INDUSTRI 311421

120302 BHASKAR BIO INDUSTRIES, 404973 PENDING 216520 H.N. KANKALE 301823 PENDING JAN-MAR 184919 MAHANT RUBBER FACTORY 301823 PENDING 208422 SHRI LAXMI NARAYAN CHEHICAL 208422 SHRI LAXMI NARAYAN CHEHICAL 267813 255946

15032008 119083 SOUTHERN FERRO LTD., / / IN - 580007 BE PENDING JAN-MAR 24032008 206893 SURENDRA CONSTRUCTION PVT.LTD 322691 26032008 206893 SURENDRA CONSTRUCTION PVT.LTD 322691

9012008 215157 TROPICANA LIQUID STORAGE(P)LTD 350670 PENDING 28082007 12122007 12102007 211764 GODREJ AGROVET LTD 228415 PENDING

118830 JINABAKUL FORGE PVT LTD 296758 PENDING 204293 SAMYUKTA AGRITECH PVT. LTD 233025

621861574 3112007 204293 SAMYUKTA AGRITECH PVT. LTD 258539 PENDING OCT-DEC 622792579 24122007 119076 YENKAYS ENGINEERING UNITI 339152 PENDING OCT-DEC TOTAL 4764869

LEARNINGS The Key Learning from the internship may be summarised in the following po ints• • Understanding of Cash Management in this industry . Importance and criticality of cash resources in a business.

• Understanding of ERP software SAP R/3 (FI module) through firsthand expe rience. • Understanding of organisational structures and workflow across various f unctions. • Information flow in a hierarchy based and function based organisation.

• Behavioural aspects of an organisational manager and his corporate relat ionships with peers and superiors.

REFERENCES - www.iocl.com - http://www.sap.com/malaysia/solutions/safeguarding/pdf/IndianOilCorp.p df - Handbook on Banking Functions, HO finance, Marketing Division - SAP-Do it yourself manual, IOCL - Policy manual, circulars and reports of IOCL .

CONCLUSION

IOCL is one of the largest organizations present in India, with opera tions spread across the length and breadth of the country. It is primarily engag ed in marketing and distribution of various petroleum products all over India, i ncluding its remotest parts. The sales and distribution network encompasses lar ge no. of Depots, Terminals, Plants and AFSs and a product passes through one or more of these before reaching the end consumer. Hence, the delivery of a produc t to the end consumer often involves multiple cash transactions. Given the large sales volumes of IOCL, there are a large number of such transactions happening every day in different parts of the country through diff erent banks. Monitoring and managing all these cash inflows and outflows is a di fficult task involving transactions taking place at various levels within the or ganization as well as with various banks across the country.

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