25-08-2017, 09:32 PM
Reconciliation of accounts on closing of project
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Executive Summary
The subject of my study was “Reconciliation of accounts on closing of project”. The report contains a brief introduction about the company along with the complete description of the job done and in the last the growth opportunities and suggestions.
While working in EPIL, I have got the opportunity to understand the nuances of a PSU consultancy firm. EPIL proposes to get the works executed as mentioned in the Contract on behalf of Owner/Client. Based on Letter of award received from client formal agreement is signed between EPIL and client. For execution of contract EPIL appoint sub-contractor. Formal agreement is signed between EPIL and subcontractor of work. I had been given the project of reconciliation of contractor account with respect to client account. For this purpose I had reconciled the client account then contractor account and finally the contractor account with client account.
I had found that the accounts were maintained properly in respect to client and contractor in accounting package. Subsequently, the same were to be reconciled by accumulating the data at one place. For this purpose the details were prepared in excel sheet. The data were checked and final reconciliation done.
INTRODUCTION OF THE STUDY
Engineering Projects India Ltd (here in after called EPIL). EPIL is a construction company who takes the construction contracts. In this project Oil Industry Development Board is a client. EPIL took the contract to construct OIDB House at Plot no. 02, Sec-73, Noida for client. The work started in March 2007.
EPIL is engaged in multi-disciplinary projects. OIDB was also a project executed by EPIL during 2007 to 2012.The below study is based on the Reconciliation of Accounts of OIDB Project. OIDB refer to “Oil Industry Development Board”, which is a client of EPIL.
Engineering Projects India Ltd and Oil Industry Development Board entered into a contract on 12th March, 2007 for Civil & Structural Works i.e. water proofing, plumbing, fire fighting works for construction of OIDB house at Plot No. 02, Sector-73, Noida, UP. The total contract value of was Rs. 43, 13, 46,586/- (Rupees Forty Three Crore Thirteen Lakh Forty Six Thousand Five Hundred Eighty Six only).
The complete name of the project is “Civil & Structural works including water proofing, plumbing, Fire Fighting for OIDB house at Plot No 02, Sect 73, and Noida. But in short this project is recognized as OIDB Project for communication purpose in the company.
The EPIL has executed the work through sub contractor M/s. Ram Kripal Singh construction Pvt Limited under close supervision. So the whole reconciliation is based on the bills raised by EPIL to OIDB & by Ram Kripal Singh to EPIL.
COMPANY PROFILE
Engineering Projects (India) Ltd. (EPIL) is a public sector enterprise under the Ministry of Heavy Industries & Public Enterprises (Department of Heavy Industry), Government of India. The Government of India is the largest contributor to its equity.
EPIL was incorporated in 1970 as A Government of India Enterprise under the administrative control of Department of Heavy Industry. Since then, EPIL has admirably performed its assigned roles as the country’s leading Prime Contracting Company and has left its imprint not only in India but in the overseas market as well where its past operation spread over a decade in the wake of oil boom in the Middle East. EPIL successfully executed 30 odd projects valued over US$ 782.00 million in Iraq, Kuwait, Saudi Arabia, UAE, Yugoslavia, Maldives, Bhutan and Thailand.
EPIL has executed over 478 multi-disciplinary projects in India valuing over Rs. 57331.349 million. EPIL is proud to be one of the first few companies to have been awarded integrated certification for Quality Management and the Environment Management System ISO 9001:2000, ISO 14001:2004 for all its areas of operation, OHSAS 18001:2007 for Corporate Office and is a "Mini Ratna" Company.
EPIL is a cohesive body of professionals, having vast experience of undertaking turnkey projects in India and abroad, and enjoys high credibility on this account. It is a premier Public Sector Enterprise and operates in a highly competitive “consultancy and construction industry”.
MISSION/VISION
To be leading turnkey Project Execution Company, committed to quality and timely completion of projects, continuously enhancing stakeholder value.
FUTURE SCENARIO
EPIL is focusing to undertake high value projects. Overseas Projects, MRTS Projects and has entered into strategic alliances for taking up projects on BOT/JV basis. EPIL focus has now to be mainly on high technology, consultancy and high value projects with higher percentage margins.