Cannons of Financial Property

DO's

  • Every employee should spend the public money most frugally in the same way as a person or ordinary prudence would do concerning his own money.
  • Always follow the recognized accounting systems and rules for recording all transactions accurately.
  • Do comply to the provisions of the Company Act 1956 for preparation of the Accounts.
  • Do clear the bills of parties expeditiously as per the terms of the Purchase Orders/ Contracts/ Agreements.
  • Do ensure that the supporting documents are attached with the claim form and the Competent Authority approves the bills/claim form.
  • Do review the expenditure incurred on various heads periodically with the object of effecting reduction in the expenditure and to ensure that the expenditure is within the approved budgetary limits.
  • Do standard costing for each product to compare it with the actual cost sheet and highlight variances.

DON'Ts

  • Don't sanction any advance until and unless the employee does not clear the advance given earlier.
  • Don't process any payment, which is not in accordance with the rules of the Company.
  • Don't act on any verbal instructions with regard to release of any advance payments.
  • Do not process any payment not approved by the Competent Authority.
  • Don't process payment/expenditure over and above the amount budgeted for unless authorized by the Competent Authority.
  • Don't interact with any bank or financial institution, transactions with which is not officially authorized.
  • Don't keep cash in the cash box/chest in excess of the amount for which insurance cover is obtained.
  • Don't disclose/part with any information relating to the financial matters to any outside agency.
  • Expenditure should not prima facie be more than the occasion demands.

DO's

  • Do ensure that procurement cost does not exceed the amount worked out as per the standard costing
  • Do ensure compliance to the purchase procedure while clearing the purchase proposals.
  • Do ensure that the purchase proposal indicates current stock position of the material proposed to be procured and that it is as per the approved production programme.
  • Do take into consideration all cost factors (raw material plus over-head expenses) before fixing the market price of a particular product.
  • Do ensure deductions of Income Tax at source as per the Income Tax Act.
  • Do deposit the (a)Income Tax, (b) Sales Tax, (c) PF etc., deducted at source within stipulated time.
  • Do submit the Income Tax, Sales Tax, Wealth tax etc. returns within time to avoid action under those Acts for such delays.
  • Do obtain proper receipts for the money deposited by you.
  • Do check the money received from the Cashier before you leave the window.

DON'Ts

  • No authority should exercise powers of sanctioning expenditure to pass an order which will directly or indirectly be to its own advantage.
  • Public moneys should not be utilized for the benefit of a particular person or section of the community, unless :
    • -Amount of expenditure is insignificant;
      • -A claim for the amount would be enforced in a Court of Law; and
      • -Expenditure is in pursuance of a recognized custom or policy.

Don't use Company's assets for unlawful purposes or for personal gains, nor do disclose without authority or misuse electronic data.

Don't commit an illegal or unethical act, or instruct or encourage another employee to do so. The known laws and regulations of the countries, in which we operate or in which we have any contractual association, should always be observed

Never accept business gifts other than of small value on ceremonial occasions.

Never go beyond the provisions of a Contract/Purchase Order during execution of work or procurement of material.

DO's

  • Do follow the cash timings strictly to avoid inconvenience.
  • Do clear all payments within the reasonable time.
  • Do accord priority to payments of urgent and time-bound nature, e.g., electricity and water supply bills etc.
  • Do ensure proper budget entry/booking for all commitments.
  • Do verify the savings made by the employees for claiming tax rebate with actual proof of savings.
  • Amount of allowances, such as travelling allowances granted to meet expenditure of particular type should be so regulated that allowances do not become a source of profit to the recipient.
  • Do select the lowest evaluated, technically and commercially responsive bid, meeting qualifying requirements and not necessarily the amount-wise lowest quoted bid.
  • In case you are authorized to make an advance for official purpose in emergency in absence of the Competent Authority, it must be regularized at the first opportunity by getting the approval of the Competent Authority in writing, as soon as he returns to office.
  • Always be consistent with criteria for Bid Evaluation.

DON'Ts

  • Never accept or give gifts within the context of business relationships if they can influence a business decision or can be considered by an impartial observer to be extravagant. Gifts or favor must never be solicited. All spending on gifts should be properly authorized and recorded.
  • Don't accept hospitality outside normal business criteria (e.g. invitations including spouses), unless clearance has been received from the appropriate Line Manager.
  • Never give preferences to bills of particular Contractors/Suppliers over the others.
  • Don't defer the recoveries due from contractors/employees on account of Advances, PF, Conveyance, HRR, Festival Advance etc.
  • Don't offer bid documents to parties which are not capable of carrying on the job in time with quality.
  • Don't ever make a claim for any allowance or facility provided by the Company like LTC or T.A. bills etc. by making a wrong certificate.
  • Don't overlook the financial rules and the limits of your authority while entering into any financial transaction on behalf of the Company.
  • Never make financial sanctions more than you are officially authorized.

DO's

  • Do take decision within reasonable time.
  • Do maintain the Cash Book on day-today basis.
  • Always communicate the award of Contract promptly.
  • Do follow the principle of the 'value for money' (VEM).
  • Always close a Contract as per the Contract signed/amended.
  • Always realize amount as per the Contract Agreement.
  • Do make payments on first come first served basis, keeping in mind the Contract Agreement entered.
  • Always receive/pay correct and fair amount.
  • Do adopt Company's policy of competitive tendering wherever possible. Your Company can not afford to show partiality towards any Agency with whom it does business.
  • Do follow eligibility notified in the requisition.
  • Do adopt Company's policy of competitive tendering wherever possible. Your Company can not afford to show partiality towards any Agency with whom it does business.

DON'Ts

  • Never forget that any departmental advance made from the Company's coffers must be got adjusted within seven days as per the Company Rules.
  • Don't miss to declare any larger gifts (including trips, discounts, loans, commissions or other favour) which have been offered to you, especially if it is suspected that the gift may have been offered in order to influence you in the conduct of your duties.
  • Do not leave the cash-counter without counting the payment.
  • Don't release any payment till the required form for the same is filed with you, duly filled-in in all respects.
  • Do not miss to report all detected irregularities to Line Management promptly.
  • Never keep the money collected from the employees or from other agencies with you but deposit it with the Finance Department promptly.
  • Do adopt Company's policy of competitive tendering wherever possible. Your Company can not afford to show partiality towards any Agency with whom it does business.
  • Don't prolong .the processing of tenders. They must be finalized within reasonable period.
  • Never delay refunding Security Deposit/Earnest Money Deposits (EMD) to unsuccessful tenders.

DO's

  • Give a 'certificate of dependence' only about those of your family members who come under the definition of dependent' as per Company Rule.
  • Always consider whether any indiscreet or anti-social behavior by an employee could affect the Company's reputation or an individual's ability to discharge his or her duties (e.g. making that person vulnerable to special pressures from outside).
  • he personal claims preferred by the employees should be examined very closely and verified before they are passed or referred to the vigilance department for clarification/ investigation, wherever malafide irregularities are detected.

DON'Ts

  • Don't forget to intimate to the Competent Authority, as soon as a 'dependent family member' does not remain dependent on you because of employment, marriage or otherwise.
  • Do not miss to make due verification of stock items periodically.

Don't miss to bring to the notice of the head of department details of inventors lying unused in Stores. Do not miss to make percentage random check of vouchers from time to time as a step towards preventive vigilance.