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In plant wise requirement various excel files are preparedwhich is as followsSummery statementRevenue expenditureCapital expenditureRCC wiseSimilarly depending upon the functions various budgets isprepared. Basically here for production and engineeringGJ-IMT,MOHALI ANUJ KUMAR SRIVASTAVA Page 64of 91
requirements send by RCC head is provided in plant wisedescription chart but for others such as Personnel/securitySafety/ETPQA/QCStoresIn above functions division wise budgets are also made forexampleQA/QC -> Division -> PDLQAContract ManufacturingPersonnel/security -> Division -> Personnel/securityDivision ManagementDivision AccountsSeparate budgets are prepared and then sanctioned byrespective head.Now the budgets prepared by finance department is furthersend to respective departmental head. Then plant heads,followed by Vice President & onwards as per the Capexamount, approves these capex’s.As explained earlier Finance manager maintain the budgetinformation, following manufacturing locations of API arecatered at Mohali DivisionMOHALITOANSADEWASGJ-IMT,MOHALI ANUJ KUMAR SRIVASTAVA Page 65of 91
After preparation of Budgets, BOD approves CapitalExpenditure by initiating CAPEX form by Plant head that isappropriately signed by requisite authorities. In CAPEX Formitself amount is classified into various categoriesA. Replacement/Cost ReductionB. Expansion into New Product/New Product PacksC. Quality, Safety, EnvironmentalD. Expansion of Existing Products PacksE. Replacement: Maintenance of BusinessF. OthersAll kinds of expenditure are classified into above head for APIManufacturing for approval of Capital ExpenditureAccounting Route for API ManufacturingCapital ExpenditureWhen top authorities approve the Capex requirement then aninternal order number is created by Plant department. After thecreation of internal order number finance department informrespective accounts department about the same. On receipt ofthe IO, indenter will create the purchase requisition thatsubsequently go to purchase department. Purchase departmentwill float enquires and prepare comparative charts for at least 3vendors. After selecting the vendor, purchase department willplace a purchase order (PO) on the vendor for supply of theasset. In case, as per the terms of the PO, any advance is to begiven to vendor, the same is released by accounts department,after passing the necessary entries in the vendor account underrespective business area (BA). The purchase department whilepreparing the PO would ensure to mention complete name as“RANBAXYLABORATORIESLIMITED,APIMANUFACTURING” and address/ location of delivery of theasset. On receipt of the goods, the GJ-IMT,MOHALI ANUJ KUMAR SRIVASTAVA Page 66of 91
Stores department will arrange to prepare the GRN and get thesame approved by the user department. On approval of theGRN, the stores department will send the bill to accounts forinvoice verification. The accounts department will verify theinvoice with PO and release the balance payment to vendor.