TAMILNADU INDUSTRIAL DEVELOPMENT CORPORATION LIMITED

Registered Office
19 –A,Rukmini Lakshmipathy Road,Egmore,Chennai – 600 008

Other Manuals
(Part 2 of 2)

Compiled by
M/s G.C.DAGA & CO.,
Chartered Accountants
Sri Balaji Complex,
14, Veerappan Street, 2nd Floor,
Chennai – 600 001

1
 Table of Contents

Particulars Page No
I.T. Policy 3
Travel Policy 4
HR Policy 5
Risk Management Policy 8
Statutory Compliance Manual 10
NBFC Compliance Manual 21
Budget 22
Project Manual 24
Procedure Procurement Manual 24
Review 27

2
 IT Policy

Computer System Backup Procedures

1. The Cashier is responsible for backing up the hard drive of the accounting system at the close
of each business day.

2. The backup materials should be locked up by the Executive In charge in a fire proof safe
overnight.

3. At month end, the backup materials shall be checked and if all are in place and working then
the latest backup material shall only be stored and the rest shall be disposed off.

4. Since the Company’s major operations are always operated on contract basis and so the
contract documents becomes utmost important. The company shall scan all the contract
documents and save a soft copy of the same in the computer for any emergency use by the Board
of directors/CMD or Head of Department. This shall also act as a backup of the important
documents.

MIS Reporting:

Reporting to Ministry :

- To Ensure Monthly MIS Report of the Plan Expenditure to Ministry of

Finance, Tamil Nadu.

Reporting to CMD :

- To Review Monthly Revenue Budgets against Actual Revenue Targets

achieved by the Company
- To Ensure Monthly MIS on the financial positions.
- To Ensure Monthly MIS on the Deposits made out of surplus funds available
with the company.
- To Ensure the Monthly MIS on Audit quires pending for more than a month.
- To Ensure Monthly MIS Report on receivables pending for more than three
months and six months.
- To Ensure Monthly MIS Report on Bills payable pending for action for more
than one month.
- To Ensure Monthly MIS Report on Proposals received and pending for action
for more than a month.

3
 TRAVEL POLICY

Purpose:

This document ensures that employee travel is in consistent with the business objectives of the
Tamil Nadu Industrial Development Corporation (TIDCO). It also ensures fair and equitable
treatment of employees by defining procedures for authorized business travel and guidelines for
business reimbursement.

Overview:

A critical balance must be sought when requesting travel. This is the company's need for cost
effectiveness and the employee's need for quality services and support. Employee travel should
be via the lowest cost alternative, consistent with good business practices. Neither luxury, nor
sub-standard modes of transportation and accommodations should be used.

Employee travel and the expenses associated with it will be authorized only in circumstances
which are clearly consistent with the mission of the company. It will be the responsibility of each
company manager to ensure that all employee travel meets this objective and that reimbursement
is made only for actual, reasonable business expenses in connection with authorized travel as
defined in this document. In order to maintain control over expenditures, any expense submitted
which does not comply with the guidelines of this procedure will not be reimbursed, unless
accompanied by a valid exception by management. Expense reports must be submitted in a
timely manner.

Allowances:

Travelling allowance shall be admissible to staff/officers of the corporation required to proceed

on tour or on transfer in connection with their official duties at rates provided in T.A. Rules of
TIDCO as given in Annexure IV of Service Rules of the company. These rules are liable to be
amended at any by the board without giving any notice whatsoever to staff/officers and the rules
as amended from time to time will be applicable to them.

Local Conveyance:

Local conveyance will be reimbursed at actual, but it’s the responsibility of the employee to use
the best, cheap and quick Transport on Business trips.

Reimbursements:

All supporting must be submitted [see annexure for travel reimbursement/expense form] within
five days of completion of the travel. Any balance owing to the staff member will be reimbursed
by cheque.

4
 HR POLICY

Establishment Section

Personnel:

1. The HR Department is charged with the responsibility of maintaining personnel files

on staff persons.

2. Each personnel file should contain the following information, at a minimum-

a. Employment application or resume

b. A record of background investigation
c. Date of employment
d. Position, pay rates and changes therein
e. Authorization of payroll deductions
f. Termination data, when applicable.

3. All personnel records are to be kept locked in a locker room with the HR Department.

4. The HR Department after calculating the pay to each official shall forward the records to the
Executive for cross-verifying the same and calculation of statutory dues.

5. The Executive shall prepare vouchers for the payroll and shall be forwarded to the Executive
Incharge for authorizing of the same and processing of payment to the officials.

6. Executive Incharge should review the payroll summary page of the payroll service report for
inappropriate payees or unusual hours.

7. Paychecks or E-Funds transfer should be distributed by the Executive on the designated day
and hour, one week after the end of the pay period according to a prearranged schedule
distributed by the Executive Incharge . In the event that a paycheck is picked up by a designated
person other than the staff person, a memo should be received in writing from the staff person
and proper identification should be requested from the party picking up the pay check.

Records & Statements:

Fixed Deduction Statements

Salary section will print out fixed deduction statements for all employees in the first week
of the month. These deductions include income tax, voluntary provident fund, loan recovery,
recoverable advances, etc. this will be forwarded with payroll master to the pay bill section. The
section will incorporate any changes and return it to be included in the next payroll.

Attendance

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 A bank variable data format will be printed out every month by EDP in respect of all
employee. The items covered will be attendance overtime, excess pay and allowances, variable
earnings etc. this will be filled in on the basis of attendance records received of the employees.
As the salary is paid for certain days on assume attendance in a month the assumed attendance
will be adjusted on receipt of actual attendance in the following month and unauthorized leave
taken. Overtime for the month will be entered from the overtime statements.

Dearness Allowances

To enable calculation of dearness allowances on the basic salary on computer, the pay
bill section will every month compile DA rate control information on the basis of DA includes
application to various scales of basis salary.

Recoveries

Recovery notes including recoveries to be made from employee’s salary

(TA/LTC/Medical advances, house, rent, electricity charges etc.) will be entered in a variable
deduction advise to be given effect to in the next pay bill.

Advance to Employees

The company gives the following recoverable advances to its employees:

1. Vehicle advance for purchase of cycle, scooter, car etc.
2. House building advances for purchase or construction of house
3. Festival advance
4. Leave salary advance/salary advance
5. Medical advance
6. Travel advance

On receiving the application for an advance, duly sanctioned by the competent authority,
the pay bill section will prepare a cash payment voucher. The payment voucher together with the
original bill of advance will be forwarded to the cash section for payment. A statement of
advances paid and the mode of recovery will be sent to pay bill for compilation.

Data Control Register

A data control register will be maintained in the pay bill section to keep control on the
inflow of documents/data requires for monthly payroll and outflow.

Computer Outputs

The outputs obtained will be:

1. Pay bill, pay slips and acquaintance rolls.

2. Department wise summery
3. Grand summery of all groups
4. Accounting summery (showing accounts codes to be debited/credited)
5. Bank transfer statements

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 6. Deduction statement with summery

Pay Bills and Disbursement

After the input documents have been received in EDP, they will arrange to print out
regular pay bills. These will be in quadruplicate, the original with perforation (pay slips), will be
given to the employees and the first bill section will have the other copies. The payments
vouchers will be prepared according to bill numbers by the pay bill section who will forward
both the copies to the cash section the net amount payable to the employees will be credited to
“accrued salaries and wages”, payroll deduction will be credited to the relevant account codes -
“pay roll deduction” and advances recoveries will be credited to advances to employee’s –
secured/unsecured”. The gross amount will be debited to the relevant account codes under –
“expenditure on salaries and wages”.

In addition to the above, the HR Policies shall also be referred from the service rules as amended
time to time .

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 RISK MANAGEMENT POLICY

Background & Legal Framework:

Risk Management is a key aspect of the “Corporate Governance Principles and Code of Ethics”
which aims to improvise the governance practices across the Company’s activities. The
Management of NBFCs have to base their business decisions on a dynamic and integrated risk
management system and process, driven by corporate strategy. NBFCs are exposed to several
major risks in the course of their business- credit risk, interest rate risk, equity price risk,
liquidity risk and operational risk. It is therefore important that NBFCs should introduce
effective risk management policy that addresses the issues relating to various business risks.
Risk management policy and processes will enable the Company to proactively manage
uncertainty and changes in the internal and external environment to limit negative impacts and
capitalize on opportunities.

Objective & purpose of policy:

The main objective of this policy is to ensure sustainable business growth with stability and to
promote a pro-active approach in reporting, evaluating and resolving risks associated with the
business. In order to achieve the key objective, the policy establishes a structured and disciplined
approach to Risk Management, in order to guide decisions on risk related issues.

The specific objectives of the Risk Management Policy are:

1. To ensure that all the current and future material risk exposures of the company are
identified, assessed, quantified, appropriately mitigated, minimized and managed i.e to
ensure adequate systems for risk management.

2. To establish a framework for the company’s risk management process and to ensure its
implementation.

3. To enable compliance with appropriate regulations, wherever applicable, through the

adoption of best practices.

4. To assure business growth with financial stability.

Role of the Board:

The Board will undertake the following actions to ensure risk is managed appropriately:

1. The Board shall be responsible for framing, implementing and monitoring the risk
management plan for the company.

2. Ensure that the appropriate systems for risk management are in place.

3. The independent directors shall help in bringing an independent judgment to bear on the
Board’s deliberations on issues of risk management and satisfy themselves that the
systems of risk management are robust and defensible;

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 4. Participate in major decisions affecting the organization’s risk profile;

5. Have an awareness of and continually monitor the management of strategic risks;

6. Be satisfied that processes and controls are in place for managing less significant risks;

7. Be satisfied that an appropriate accountability framework is working whereby any

delegation of risk is documented and performance can be monitored accordingly;

8. Convene any board-committees that are deemed necessary to ensure risk is adequately
managed and resolved where possible.

Review:

This policy shall be reviewed at a minimum at least every year to ensure it meets the
requirements of legislation & the needs of organization.

Statutory Compliance Manual

9
 1. COMPANIES ACT :

Incorporation Related Forms:

Form No.
Purpose Public & Private Companies
OPC
Application for DIN DIR-3 DIR-3
Application for Reservation of Name RUN RUN
Application for Incorporation of Company SPICE (INC-32) SPICE (INC-32)
Nominee consent form — INC-3
Form for submission of documents with the GNL-2 GNL-2
registrar
Notice of Situation or Change of INC-22* INC-22*
Situation of Registered Office
Appointment of Directors and key DIR-12 DIR-12
managerial personnel and changes
among them
Other Important Forms:

No. Events For Due Date

m
A. Director Related Forms
1 Application for DIN DIR-3 Any Time
2 Intimation of change in particulars of Director to be DIR-6 30 Days
given to the Central Government
3 Appointment of Directors and key managerial DIR-12 30 Days
personnel and changes among them
4 Return of appointment of MD/WTD/Manager MR-1 60 Days
5 Notice of resignation of a director to the Registrar DIR-11 30 Days
6 Application for surrender of Director Identification DIR-5 Any time
Number
B. Auditor Related Forms
Notice of appointment of auditor by the company ADT-1 15 Days
2 Application for removal of auditor(s) ADT-2 30 Days
from his/their office before expiry of
3 Notice of Resignation by the Auditor ADT-3 30 Days
C. Annual Filing Forms
1 Form for filing annual return by a company MGT-7 60 Days
2 Form for filing Financial Statement and other
AOC-4 30 Days
documents with the registrar
D. OPC Related Forms
1 Nominee consent form INC-3 30 Days
2 Change in Member/Nominee INC-4 30 Days
3 Intimation of exceeding threshold INC-5 60 Days
E. Other Forms

10
 15Days
1 Notice of Situation or Change of situation of INC (For
registered office - Existing
2 Application to Regional Director for approval to shift the
Registered Office from one state to another state or from
jurisdiction of one Registrar to another Registrar within INC 30 Days
the same State -
3 Notice to Registrar of any alteration of share capital SH-7 30 Days
4 Application for registration of creation, modification of CHG 30 Days
charge (other than those related to debentures) -1
5 Particulars for satisfaction of charge thereof CHG 30 Days
-4
6 Filing of Resolutions and agreements to the Registrar MGT 30 Days
- 14

Depreciation Chart :

Companies Act Useful

I.
No. Block of Assets life (Years)
Tax
1 Factory building - Non Residential WDV 10 30
2 Other Building:-
(a) Building RCC frame structure 10 60
(b) Building other than RCC frame structure 10 30
2 Furniture & Fixture (General) 10 10
3 Plant & Machinery, Office Machinery (General) 15 15
4 Motor Cycles, scooters, other mopeds & motor cars 15 10*
5 Motor buses, motor lorries and taxies used in the 30 6
business of running them on hire
6 Computer and data processing units:-
(a) Servers and networks 40 6
(b) End user devices such as desktops, laptops, 40 3
printers etc.

1. In case of double shift depreciation will be increased by 50% and in case of triple shift
depreciation will be increased by 100% for that period for the single shift asset.
2. For Amortization of Intangible Assets as per Companies Act 2013, the
provisions of accounting standards shall apply except in case of BOOT and
BOT projects.
* The useful life of Motor Car as per Companies Act is 8 years.

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 2. INCOME TAX :

Tax Rates:

Income Tax MAT Dividend

Other Assesses Distribution
Rate Rate
Tax Rate*
Domestic
30% 18.5 % 20.55872%
Companies
* Inclusive Health and Education Cess @ 4 % & Surcharge of 12% of Income tax. # Tax Rate
is 25% if turnover or gross receipts of the company doesn't exceed Rs. 250 Crore in P.Y. 2016-
17 (relevant for A.Y. 2019-20.)

Applicability of Surcharge & Education Cess:

A.Y.
Particulars Applicable to Companies
2018-19 / 2019-20
< Rs. 1 cr All NIL
Domestic 7%
Total Rs. 1 cr to Rs. 10 cr Foreign 2%
Surcharge
Incom Domestic 12%
e > Rs. 10 cr
Foreign 5%
Education Cess (A.Y. 2018-19) @ 3%, Health & Education Cess (A.Y. 2019-20) @ 4%

Advance Tax:

Due Date Company / Other than Company

15th June Up to 15%
15th Sep. Up to 45%
15th Dec. Up to75%
15th Mar. 100%

TDS Rate Chart :

TDS is applicable to any person, other than an individual or a HUF not subject to audit
under section 44AB in the immediately preceding year.

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 Threshold Rate
Sec. Nature Of Payment Description Amount %
As per Normal Slab
Rates after
192B** Salary (Other than Government Employee) providing
Deductions of
Chapter
Rs. VI A
Interest by bank/co op society/post office (Refer Note 2) 10%
194A 10,000
Interest by others Rs. 5,000 10%
Single Rs. 2%*
Transacti 30,000
Aggregate Rs. 2%*
Payment to contractor / sub contractor/ During 1,00,000##
Advertisement / Transporter
194C Transporter owning ten
or less than TDS not applicable
ten goods
194D Insurance commission carriage Rs. 15,000 5%
194H Commission/ brokerage Rs. 15,000 5%
Rent paid by an Individual/HUF Per Month
194IB (if not subject to tax audit u/s. 44AB immediately preceding Rs.
5%
financial year) (applicable from June 01,2017) 50,000
Plant
& 2%
Machine Rs.
194I RENT Land & 1,80,000^
Build., 10%
Furniture &
Professional fees Rs. 30,000 10%^^
Royalties Rs. 30,000 10%^^
Technical Fees Rs. 30,000 10%^^
194J Directors Remuneration. Nil 10%^^
Compensation on acquisition of immovable property (other Rs.2,00,000
194LA than agricultural land) 10%

Purchase of Immovable Properties # (other than agriculture land) Rs.50,00,000

194IA 1%

* Rate 1% in case of deductee Individual / HUF.

** Person responsible for making payment for calculation of TDS required to obtain the
evidence or proof or particulars of prescribed claims (including claims of set-off of loss) from
deductee .
# TAN is not compulsory for deductions u/s 194IA
^ No TDS even if payment exceeds Rs. 1,80,000 provided landlord furnishes a self- declaration
in prescribed Form. No. 15G/15H to the payer (effective from 1st June, 2016).
^^ If the payee is engaged only in the business of operation of call centre, then TDS is to be
made @ 2% (applicable from 1st June, 2017.)

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 Note:
1. If No PAN or invalid PAN, TDS rate is 20%. Declaration of Non Filing of TDS
statement is mandatory in case of NILTDS Returns.
2. TDS required to be deducted if Interest received by senior citizen from bank/ co-op
society/ post office exceed Rs.50,000.

TCS Rate Chart:

No. Nature of Goods Rate (%)

1. Scrap, Alcoholic liquor for human Consumption 1%
2. Tendu leaves 5%
3. Forest Products incl. Timber but excl. Tendu leaves 2.5%
4. Parking lot, Toll Plaza, Mining 2%
5. Purchase of Motor Vehicle (If value > ` 10 Lacs) 1%

Interest Rates under Income – Tax:

Rate (per month

Description Sec. Period or part of it)
(A) Income Tax Return
From Due Date to Date of submission of
Delay in submission 234A return 1%

From Due Date to Date of completion of

Non-submission
234A assessment u/s. 144/147 1%
(B) Advance Tax
Failure to pay 90% of From 1st April of A.Y. to completion
assessed tax 234B of assessment 1%

Deferring Advance tax From Due Date to Due date of next

234C installment 1%
(C) TDS
From required date for deduction to
Failure to deduct 201(1A) actual date of deduction 1%
Failure to deposit in From actual date of deduction to actual date
time 201(1A) of deposit 1.5%
(D) TCS
Failure to collect tax From required date for collection to the actual
206C(7) date of collection 1%

TDS Rates on Payment to NRI

Section Nature of Payment Tax Rate

192 Salary As per Slab
Rate
115O Dividend (provided DDT is paid) Exempt

14
 194EE Payment in respect of Deposits under NSS 10 %
194LD Interest on Rupee Dominated Bond 5%
Interest on Loans given in foreign Currency to Indian Concern or 20 %
195(e) Govt. of India
Interest from Bank
(NRO Saving or FD Account)
195(i) Interest from Others 30 %
Rent House Property or Other Rent
Commission/Brokerage or any other income
Capital Gains
Equity Oriented Long Term Capital Gain (>12 months) 10% @
(STT
Appli.) Short Term Capital Gain (<12 months) 15 %
Other than Long Term Capital Gain (>36 months)# 20 %*
Equity 10 %**
Short Term Capital Gain (<36 months) 30 % #

3. GOODS AND SERVICES TAX :

For Particulars Due Date

m
(A) Regular Returns
Outward Supplies (Sales) 25th of the month succeeding
GSTR-1 Turnover up to Rs. 1.5 Cr Quarterly filing quarter
Turnover above Rs. 1.5 Cr Monthly filing 10th of next month
GSTR-2 Inward Supplies(Purchases) (Auto 15th of next month
Populated)
GSTR-3 Auto-Generated Return 20th of next month
GSTR Summary return for July 2017- June 2018 for 20th of next month
- 3B Payment of Tax
GSTR-9 Annual Return (Yearly) 31st December of next financial year
(B) Composition Scheme Returns
GSTR-4 Composition Tax Payer (Quarterly) 18th of the month succeeding
quarter
GSTR Annual Return for Composition Tax Payer 31st December of next financial
- year
(C) Special Returns
GSTR-5 Return for Non resident foreign taxable 20th of next month
person
GSTR-6 Return for Input Service distributor 13th of next month
GSTR-7 Return for authorities deducting tax at 10th of next month
source##
GSTR-8 Details of supplies effected through 10th of next month
e-commerce operator and the amount of tax
collected ##
GSTR Final Return Within 3 months of later of
- 10 (At the time of Cancellation) cancellation or order of cancellation

15
GSTR Details of inward supplies to be furnished by a 28th of the month following the month
- 11 person having UIN and for which statement is filed
claiming refund

PF & ESIC :

Type Employee’ Employer’ Contribution Payment Due

Contribution Date
12% of Basic +DA + food concession + 15th day after end of
12% of Basic + DA + month ( plus 5 days
PF food concession + retaining allowance subject to maximum
Rs.15,000 p.m. (plus Admin charges : of grace )
retaining allowance
0.65% of Basic + DA)
ESIC 1.75% of Wages 4.75% of wages 15th day after end of
month
0.5% of total wages subject to 15th day after end of
EDLI ----------- maximum Rs. 15,000 p.m. month (plus 5 days
of grace)

USEFUL WEBSITES:

Income Tax :
Official Website http://www.incometaxindia.gov.in
e-Filling http://incometaxindiaefilling.gov.in
Services To Tax payers http://www.incometaxindiapr.gov.in
Tax information http://www.tin-nsdl.com
ITAT http://www.itat.nic.in
GST http://www.gst.gov.in
E Waybill https://ewaybill.nic.in
CBEC Official Web Site http://www.cbec.gov.in
XBRL:
International http://www.xbrl.org
India http://www.xbrl.org/in
MCA: http://www.mca.gov.in
LLP: http://.llp.gov.in
ICAI: http://www.icai.org
SEBI: http://www.sebi.gov.in
C&AG of India: http://www.cag.gov.in
RBI: http://www.rbi.org.in/home.aspx
EPF http://www.epfindia.com
ICSI http://www.icsi.edu
NJP Advisors Blog http://www.njpadvisors.com/blog

16
 COMPLIANCE CALENDER :

Payment of Filling of
TDS Payment of Return
Month Advance Payment of Income Return ESIC Income Tax
TDS PF Tax (Quarterly
April 30 15 15
May 7 15 31 15
June 7 15 15 15
July 7 15 31 15 31
Aug 7 15 15
Sept 7 15 15 15 30
Oct 7 15 31 15
Nov 7 15 15 30#
Dec 7 15 15 15
Jan 7 15 31 15
Feb 7 15 15
March 7 15 15/31 15

# Submission of Transfer Pricing Report

Statutory Compliance

Note that this list is an illustrative and not exhaustive.

LABOUR LAWS

Compliance Type Due Date for Compliance Period

PF / FPS / EDLI Remittance 15th of Next month Monthly
ESI Remittance 21st of Next month Monthly
PF Return (Online Only) 15th of Next month Monthly
ESI Return (Online Only) 21st of Next month Monthly
New Joinees/Separations End of same month Monthly
Professional Tax Remittance 15th Sep and 15th Feb Half yearly
Professional Tax Return 30th Sep and 31st March Half yearly
Contract Labor Act - Annual Return (Jan to
15th February Yearly
Dec)
Guiding in preparation of Records and
As and when required
Registers

17
 Records and Registers under The Shops As and when required
and Establishment Act
The Payment of Gratuity Act As and when required
The Payment of Bonus Act As and when required
The Maternity Benefit Act, 1961 As and when required

THE NEW COMPANIES ACT, 2013

Compliance Type Due Date for Compliance Period

Within 30 days from the date of

Appointment of Statutory Auditors Appointment. Appointment is to Yearly
be made in the AGM

Before filing of Annual returns

Statutory Audit Yearly
and Annual Financial Statements

Within 60 days from the date of

Preparation & Filing of Annual Returns Yearly
AGM
Preparation & Filing of Profit and Loss Within 30 days from the date of
Yearly
Account AGM
Within 30 days from the date of
Preparation & Filing of Balance Sheet Yearly
AGM
Guiding in preparation of Notices, Minutes,
Extracts of meetings, Registers and all such As and when required
records

Please Note -
1. The above mentioned compliances are mandatory for all the companies.
2. As per the Companies Act, there are various other forms which is required to be filed
as and when required based on the Companies transaction and it cannot be summarized
here.

THE INCOME TAX ACT, 1961

Compliance Type Due Date for Compliance Period

TDS Remittance 7th of Next month Monthly
st
TDS Filing 31 from End of quarter Quarterly
Advance Tax 15th from End of quarter Quarterly
Tax Audit U/s. 44AB 30th September Yearly

Computation of Income Tax as per

Normal provisions and as per 30th September Yearly
Provisions of MAT.

18
 Filing of Return of Income - ITR 6. 30th September Yearly

GOODS AND SERVICES TAX, 2017

Compliance Type Due Date for Compliance Period

GSTR – 1 10th of Next month Monthly/Quarterly
GST – 3B 20th of Next month Monthly
GSTR - 7 10th of Next month Monthly
Within 9 months from the end of
GSTR - 9 financial year Yearly

Mandatory Registers to be maintained under the above Statutes –

List of registers to be maintained pursuant to Companies Act 2013

S.no. Register
1 Register of charges
2 Register of members, debentures or any other security, shall include Index therein
3 Register of directors and Key managerial personnel and their shareholding.
4 Register of loans made, guarantees given, securities provided or investment made by the
company
5 Register of investments in any shares or securities not held in its own name
6 Register of contracts or Arrangements in which directors are interested.

7 Register of renewed and duplicate Share certificates

8 Minutes Book for all the Board meetings, Ordinary General meetings, Extra Ordinary
General Meetings, Annual General Meetings to be held. This shall also contain all the
resolutions to be passed in the meetings as statutorily required and also as required by
the Board.
9 A Register containing a list of all the statutory filings with the ROC/MCA. Filing each
and every transaction with the MCA is a tedious job and the purpose for maintaining this
register is to track all the communications with the MCA and also serves as a
documentary evidence for future perusal.

List of registers to be maintained pursuant to ESI / EPF/Contract Labor Act

S.no. Register
1 Register of Employees.
2 Register of wages containing wage slips.
3 Muster Roll containing attendance of all the employees.
4 Register of Advances
5 Register of Overtime

19
 6 Notice to be displayed showing wages, hours of work, wage period, date of payment of
wages, date of payment of unpaid wages and name and address of the inspector having
jurisdiction
7 Employment card
8 Service certificates
9 Inspection Book.

List of registers to be maintained pursuant to Income tax Act/Service tax Act

S.no. Register
1 Proper books of accounts (system generated)

PROCEDURE FOR PREPRATION OF RETURNS AND FILING

For Employee Payments ( PF, ESI and Other Applicable acts )

1. The filing of returns and payments shall be done as per the due dates specified in the
above tabular column.
2. The Cashier shall take the required details from the H.R. Department, prepare the initial
workings and forward to the Executive in charge for finalization and approval of the
same. The necessary documents shall be enclosed along with the workings.
3. After the Executive in charge has approved the workings, executive shall proceed further
for preparation of challan and filing of returns.
4. The challans are then verified by the cashier and marked as verified and correct and then
forwarded to the Executive/Executive in charge.
5. The Executive in charge or Executive shall prepare check based on the limits set out in
the DOP.

For Corporate Income Tax – Advance Tax & Self Assessment

1. The income tax calculation for the quarter/year shall be prepared by the Executive in
accordance with the Income Tax rules and regulations.
2. The calculations shall then be forwarded to the Company’s tax advisor for their approval
and comments on the same.
3. After modifying the calculations and after getting final approval from the Tax advisor,
the appropriate Income tax challan is prepared by the Executive.
4. The Income tax challan is then sent to the Executive in charge/Head of department along
with the necessary documents and workings for approval of payment.
5. Once it is approved by the Executive in charge/Head of department, the approved copy
shall be then forwarded to the CMD for final approval.
6. After receiving the final approval from CMD, Income tax challan is then sent for
payment to Bank.

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 NBFC Compliance Manual

Submission of Annual Statements and Returns –

NBFC-ND-SI (Non-Deposit category) are required to submit an annual statement of capital

funds, risk assets ratio etc. It can be submitted electronically as well as physically. Further
Capital Adequacy, Liquidity, and other disclosure norms have been incorporated in Non-
Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2007.

1. Capital Adequacy of 15% to be maintained.

2. Disclosures in the Balances Sheet.

ALM Returns are required to be submitted by NBFC- ND-SI :

1. ALM1- Statement of short-term dynamic liquidity- Monthly

2. ALM2- Statement of short-term structural liquidity- Half Yearly
3. ALM3- Statement of Interest Rate Sensitivity – Half Yearly

Annual Compliance

S No. PARTICULARS TIME LIMIT

1 Unaudited March Monthly return/NBS7 on or before 30th June
2 Audited March Monthly return/NBS7 Upon completion
3 Statutory Auditors certificate on Income & Assets on or before 30th June
4 Information about Cos having FDI/Foreign Funds on or before 30th June
before the commencement of the new
5 Resolution of Non-acceptance of Public Deposit
Financial year
6 File Audited Annual Balance Sheet and P&L Account One month from the date of signoff
Declaration of Auditors to Act as Auditors of the
7 annual basis
Company

Monthly compliance

S No. PARTICULARS TIME LIMIT

1 Monthly Return by 7th of every month

Periodical compliances

S No. PARTICULARS TIME LIMIT

1 Appointment of Director within 30 days of appointment
2 Resignation of Director(DIR-12 + Challan Receipt) within 30 days of resignation
Adoption of any notification in the ensuing Board Meeting
3
& filing the certified copy with RBI

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Budget

Revenue Budget
Revenue Budget is an annual estimate of anticipated income and expenditure under various
heads/activities.
Preparation of budget of Income and Expenditure is based on –
i. Statements of actual Income and Expenditure under various heads for the
preceding financial year.

ii. Statement of actual Income and Expenditure for the first six months of the
concerned Financial year in which budget is prepared.

iii. Estimates of Incomes for the current and the ensuing financial year.

iv. Estimated Business of the companies in which TIDCO has invested.

v. Timely Collection of Estimate from the companies in which TIDCO has

substantial interest.

Capital Budget

Budget Estimates for Capital – Plan schemes & Non-Plan Schemes

1. The works that are to be executed during the current financial year and the next financial
year, the estimated cost of the same and the provision to be made thereto are ascertained
from Projects Department taking into account the amount of internal resources available
for non-plan works and the budget is finalised after discussion with all the Heads of
Departments.

2. The finalised revised budget estimates and budget estimates are submitted to Board and
Government (for Capex Plan schemes only) during the month of October/November
(Within Six Month from the end of preceding financial year) of every year for
approval.

3. Apart from this, performance budget is also prepared for Capital Plan schemes and
submitted to Government every year (Time To be mentioned).

4. The monthly, quarterly and annual return required to be submitted to the Government or
on Plan schemes (has to be attended) are also attended to. Any other details when called
for by the Government regarding the physical and financial progress of the plan works
are also sent to Government.

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Proposals

1. After the approval of the Board /Government (for capex Plan schemes only) for the
Revised Budget Estimate and Budget Estimate is received, proposals for the execution of
works for which provision has already been made together with the estimate will be
received from Projects Department.

2. Such proposals and the estimates will be scrutinised by Finance Department and the
observations made and the competent sanction required to be obtained will be accorded
in the note file are sent to CMD / Board as per the approved Delegation of power (DOP)
or Government (project cost exceeding Rs.500 crores only).

3. In the case of urgent nature of works for which no provision is available in Revised
Budget Estimate or Budget Estimate a supplemental estimate is prepared and sent to
Board for sanction (BY WHOM SPEICIFY POWER).

Format for Preparation of Budgets

Particulars Previous Budgeted Reporting Budgeted Variations

Year Expenditure Expenditure Expenditure
Audited For the year For the year based on
(Full reporting
Year) expenditure
for next
financial
year
Revenue Expenditure

Capital Expenditure (Both Plan

& Non Plan
Expenditure)

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 PROJECT MANUAL

As there are no specific rules laid down for projects, the company shall ensure that all the
projects taken up are sanctioned by the Government of Tamil Nadu as well as board.

PROCEDURE PROCUREMENT MANUAL

Purchases

1. For regulating the payment of suppliers claims, purchase accounting section will
receive the following documents; (I) Purchase orders (POS) (II) Bills of the suppliers.

2. All sets of documents are controlled through serial numbers given to them. The
control serial numbers are given for P.Os in the indenting department and the stores
respectively whereas in the case of suppliers’ bill the same is given in the purchase
accounting section.

Purchase Order

Purchase orders will be received from the purchase department. On receipt, these will be
checked for the number of financial concurrence record there on and then entered in the
register of purchase orders. Purchase orders and their amendments will be filled vendor wise.

Receipt of Supplier’s Bills

The suppliers send their bills direct to the purchase accounting section. In case of progress
and final payment.

A control register of incoming bills will be maintained in the purchase accounting section to
watch their disposal. On receipt, the bills will be entered in the register and the serial no after
the register and the dates of receipt will be noted on them. Disposal of the bills also will be
noted in the register as soon as these are passed for payment of returns to the supplier for
rectification/clarification, etc. no bill will be kept pending for more than a week.

A weekly report of outstanding bills will be submitted by the purchase accounting section to
the head of the finance and account department along with reasons for daily in their disposal.

Advances to Suppliers / Contractors

Generally NO advances will be given except in special circumstances or proprietary nature of

supplies or contracts.

1. Capital Items

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 The company shall procure its assets from the following companies as provided in the
orders issued by the government of Tamil Nadu –

(a) Wooden and steel furniture including computer furniture from Tamilnadu Small
Industries Development Corporation (TANSI).

(b) IT hardware and software products from Electronics Corporation of Tamil Nadu
Limited (ELCOT).

(b) The company shall also procure its capital goods from Government e Marketplace
(GeM) which is one - stop portal to faclitate online procurement of common use
Goods and Services required by various government departments / organisations /
PSU's.

As per Rule 149 in the General Financial Rules 2017 , the GeM portal shall be utilized by the
Government buyers for direct on-line purchases as under :-

(i) Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the requisite
quality, specification and delivery period.

(ii) Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having lowest price
amongst the available sellers, of at least three different manufacturers, on GeM, meeting
the requisite quality, specification and delivery period. The tools for online bidding and
online reverse auction available on GeM can be used by the Buyer if decided by the
competent authority.

(iii) Above Rs.30,00,000/- through the supplier having lowest price meeting the requisite
quality, specification and delivery period after mandatorily obtaining bids, using online
bidding or reverse auction tool provided on GeM.

(iv) The Government Buyers may ascertain the reasonableness of prices before placement of
order using the Business Analytics (BA) tools available on GeM including the Last
Purchase Price on GeM, Department’s own Last Purchase Price etc.

Electricity, Water & Fuel

Services like electricity, water, fuel, etc are obtained either from electricity boards
or other bodies. Bills for these services are received in the operation/Traffic/
administration department. Finance Department will certify based on the Value of the
bills as to the unit consumption and calculations. On receipt in the accounts, the bills will
be checked mainly for correction of rates charged and being in conformity with the
agreements; method of computation also will be checked. Payment made to the electricity
boards and other bodies will be debited to the relevant account codes under
classifications -“services”

Lease Rent for Equipment/ Other Equipment Rent / Computer Hire Charges

Contracts agreements for taking the equipments on lease /hire and use of
computer on hire will be entered into with the approval of the competent authority.

25
Copies of these contracts / agreements will be forwarded to accounts where these will be
checked and filled like the purchase orders/ works contracts.

Bills for lease rent, equipment rent, hire charges etc. will be received by the user
department who will verify the use and certify the bills being in accordance with the
terms of contracts /agreements and forward to accounts. On receipt in accounts, the bills
will be checked as to calculations etc. as well as with the terms of contracts/agreements.

The payment will be debited to the account “lease rent for equipment”/ “other
equipment rental”, “computer hire chargers” / “office equipment rental” as the case may
be.

Temporary Advances:

Advances will be given to the officers (authority by departmental heads with the
approval in finance) for specific purpose for urgent repairs/urgent purchase/other jobs.
These advances will be debited to the account – “temporary advances for expenses”. The
officer receiving the advance will submit the expense statement within the time limit
prescribed. The statement will be checked in accounts and a cash payment or receipts
vouchers will prepared for balance payment to or refundable by the officer.

Consultants’ Fee / Legal Fee and Expenses:

A sanction for utilization of services of consultants/legal experts etc. will be given

by the competent authority. The consultants’ bills will be certified by the concern
department along with a copy of the sanction to accounts for payment. Bills for
reimbursement of expenses will be supported by vouchers/certificates. For advance
payments, the department concerned will send an approval note to the accounts. The bill
be checked against the sanction and passed for payment. On payment, the amounts will
be debited to account – “professional fees and expenses”/ “Legal fees and expenses”.

Expenses incurred in connection with legal proceedings, execution of power of

attorney etc. can be met through imprest also.

Postage:

Postage deposits for utilizing franking machine will be kept with the postal
department and the deposit reimbursement as and when required. Actual expenses will be
charged off on the basis of consumption.

Miscellaneous Repairs:

The department concerned will issue a work order the approval of the competent
authority. A copy of the work order will be sent to accounts. The bills of work done will
be submitted to the department concerned who will verify and certify satisfactory
completion of the work done. On receipt of the bill from the department, account will
check it with the work order and pass it for payments on the basis of certified recorded.
The payment will be debited to the relevant account codes.

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 Audit Fees (Other Services):

A letter will be issued, with the approval of the competent authority, to the
auditors. On receipts of their bills, these will be checked with the letter of engagement
and passed on that basis.

Miscellaneous Expenses:

Miscellaneous expenses like local purchases of printing and stationary,

advertisement and publicity, entertainments, books and periodicals, running expenses of
vehicles and sundries will be met from the imprest.

Outstanding Liabilities:

Outstanding liabilities will be provided at the end of the year for accrued expenses
for electricity, telephone and any other expenses which are not accounted for on accrued
basis.

Contractual Purchases:

1. When the normal cash disbursement procedure of invoice, etc., is not appropriate, (i.e.,
petty cash) the payment shall be done through Check or E-funds transfer and for the approval
of such voucher and signature of authorized persons on the checks or request for E-funds
transfer note, the authorized persons shall verify the voucher, bill and the print out from
accounting software showing the accounting entry passed for such purchase/expenses.

1. Approved check requests or E-Funds transfer requests should be sent to the Executive for
release of payments.

2. The Company is in a practice of outsourcing all the works and hence in all the cases there
are contracts which legally binds the Company. Hence it becomes very important to
check whether invoices are raised by the vendors based on the contracts entered into.

3. After receipt of invoices from the vendors and settlement of the same, the bills and cash
receipts from vendors shall be filed in the concerned vendor files.

Review of Accounts Manual

The Accounts manual may be annually reviewed by the board of directors in a board meeting for
any changes / updation in the original accounts manual due to the changes in the applicable
statutes or for better recording of accounts or for better presentation of financial statements.

27