TRAINING AT

FOOD CORPORATION OF

INDIA (FCI)

To gain the practical knowledge.

To learn about cash management.

To gain the knowledge of how funds are managed by the FCI.

OBJECTIVES

COMPANY PROFILE

FCI was set up on 14th January 1965 under the Food Corporation Act 1964.Objectives of FCI are as follow:-oEffective price support operations – to safeguard the

interest of farmers.oTo make food grains available at reasonable prices,

particularly to vulnerable section of the society.oTo maintain buffer stocks as measure of Food

Security.oTo intervene in market for price stabilization .

INTRODUCTION

Focus of FCI is on:-Professional excellence in Management of food grain and other commodities.

Transparency and accountability in transactions.

Optimum utilization of resources.

Continual improvement of systems, processes and resources.

POLICY

METHODOLOGY

CASH MANAGEMENT

CASH MANAGEMENT

INFLOWS OUTFLOWS INVESTMENT OF SURPLUS

CASH MANAGEMENT AT FCI

CASH MANAGE-

MENT BOOKS

RECEIPTCASH BOOK

PAYMENTCASH BOOK

PETTY CASH BOOK

RECEIPT CASH BOOK:- provides a complete record of all cash, cheques, demand drafts, and money orders etc, received.

DATE PARTICULARS VOUCHER NO.

DR. CASH

DR. BANK

CR. SUNDRY DEBOTRS

SUNDRY DEBTORS LEDGER FOLIO NO.

CR CR CR

PAYMENT CASH BOOK:- provides a complete record of all payments in Cash or by cheques or outward remittances.

DATE PARTICULARS

CHQ. NO.

VOUCHER NO.

DR. CASH

DR. BANK

DR. SUNDRY CREDITORS

SUNDRY CREDITORS LEDGER FOLIO NO.

DR.

DR.

PETTY CASH BOOK:- provides a convenient means of recording all the small transactions.Expenses of petty cash in total will be incorporated daily in the “payment cash book” by the name “petty cash control”.DATE PARTICUL

ARSVOUCHER NO.

CR. PETTY CASH

DR. PAY AND ALLOWANCES DUE

DR. ALLOWANCES FOR TRAVELLING

DR. POSTAGES

DR. PRINTING & STATIONERY

DR.

DR.

DAILY CASH BALANCES ARE RECORDED IN THE FOLLOWING WAY:-

DATE OPENING BALANCE FOR THE DAY

RECEIPTS FOR THE DAY

TOTAL (2+3)

PAYMENTS FOR THE DAY

CLOSING BALANCE (4-5)

1 2 3 4 5 6

At the end of each month, receipt and payment cash book are totaled and a summary of total cash transactions is prepared in the following form:-PARTICULARS AMOUNT

(RS.)BALANCE AT THE BEGINNING OF THE MONTH

ADD (+) :-

1. Receipts other than transfer in and inter-office-remittance inwards

2. Transfer in

3. Inter-office-remittance inwards

TOTAL

LESS (-) :-

1. Payments other than transfer out and inter-office remittance outwards

2. Transfer Out

3. Inter-office-remittance outwards

TOTAL

BALANCE AT THE END OF THE MONTH

IOR deals in providing credit limit to the zonal office, depot, and regional office according to its credit cash limit for the transaction.

Balance in the evening is transferred to Mumbai branch which is the head office of the west zone.

In a day the office cannot withdraw more than its credit limit and next it starts with the new balance.

INTER-OFFICE-REMITTANCE (IOR)

FORMAT OF IOR :-

ACCOUNT OF :-ACCOUNT NO :-

DATE PARTICULARS DR. CR. BALANCE

STEPS TO CALCULATE IOR :-

DETAILS OF THE BANK• IOR deals

with cheque and not in cash

VERIFICATION OF TRANSACTIONS• Verification

with payment cash book

CALCULATON OF IOR• Preparing

list of daily transactions according to bank statements

Breaks out a single general ledger account into subgroups that share common information.

Provides more detailed information about individual accounts than a general ledger.

SUBSIDARY LEDGER

FORMAT OF SUBSIDARY LEDGER :-

DATE PARTICULARS J/F

DR. CR. BALANCE

STEPS TO PREPARE SUBSIDARY LEDGER :-INDEX

INDIVIDUAL ACCOUTS FOR EACH PARTY

DR. ENTRIES- SALES BOOK

CR. ENTRIES- RECEIPT BOOK

REMAINING BALANCE-BALANCE

ADVANTAGES OF SUBSIDARY LEDGER :-

It helps to maintain systematic record.

It helps to give accurate information for a particular time period.

It is useful for the future reference.

Training provided was really good.

Practical knowledge.

It was a great experience.

Applicability of theoretical knowledge in the real world.

POSITIVE ASPECTS

Cash Management is done manually.

Records were mainly maintained through books, which created complexity.

Lack of motivation among employees.

Working environment is not good.

Lack of appreciation and acceptance of new ideas.

NEGATIVE ASPECTS

Working environment should be improved.

Employees should be motivated.

Training should be given to employees for new methods.

Computerized work.

SUGGESTIONS