(FOR INTERNAL USE ONLY)

REVISED ACCOUNTS MANUAL

(Upto Amendment Slip No. 186 Dt.04.10.2007)

BHARAT HEAVY ELECTRICALS LIMITED

Regd. Office: BHEL House, Siri Fort,
New Delhi: 110049

1
 FOREWORD

Maintaining Accounts in accordance with statutory requirements

and as an effective management tool is one of the core activities of
the finance function of the company. Accounts Manual prescribes
the general outlines of the system of account codes based on
Accounting Standards / Practices and Statutory requirements and
helps in maintenance of accounts.

With the introduction of 3-digt to 4-digit coding system the revised

Accounts Manual will accommodate new accounting requirements
in future years. It will fulfill the requirements of management for
providing reliable inputs through account codes.

It is expected that switching over to new system in revised

Accounts Manual will certainly help the organization by providing
analytical data apart from meeting accounting requirements.

Sd/-
Place : New Delhi (C. S. Verma)
Date : 1st April, 2006 Director (Finance)

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 Introduction

Presently Accounts Manual has 3-digit coding system which was

introduced long back. Subsequently new accounts codes were also
introduced to accommodate new accounting requirements.
However, various information are required for analytical purposes
from Account codes. It was felt to review and revise the existing
Accounts Manual which can accommodate new requirements of
Accounting Standard / Practices and information required by top
management.

Based on above a committee was constituted with representatives

of major units / centres and committee deliberated with all units /
cost centres.

The Accounts Manual has been prepared in such a way that it will
accommodate all future requirements of new account codes. It has
a provision of maximum 9999 account codes against 999 account
codes available in existing Accounts Manual. Though the new
Accounts Manual will be mandatory w.e.f. 01.04.2007, units are
encouraged to switch over to the new Accounts Manual as early as
possible but not later than 30.09.2006.

The detailed account codes have been provided in the Accounts

Manual that will cater the information through account codes and
will certainly help in decision making process on a speedy manner
to top management.

Care should be taken for switching over from 3-digit to 4-digit

system to achieve the desired results.

Sd/-
Place : New Delhi (R. Saraswathan)
Date : 1st April, 2006 Group General Manager (Finance)

3
 Corporate Finance
(Books)

No.AA: Acct.Manual
Dt. 15.04.2006
Sub: Revision of Accounts Manual

In pursuance of note No.AA:Books:Acc.Manual Dt.19.10.2005 a

committee was constituted to review and analyze the Accounts
Manual and give their final recommendations to implement the
revised Accounts Manual.

The committee has submitted its recommendations along with

Revised Accounts Manual. The Revised Accounts Manual has been
approved by the competent authority and decided to implement as
below:

1. The Revised Accounts Manual will be fully implemented w.e.f.

01.04.2007.

2. All the units should start switching over to 4-digit code as

early as possible but not later than 01.10.2006.

3. For Annual closing of accounts 2006-07 all the units should

convert their accounts in 3-digit code at the end of the year.

4. A committee consisting of Finance & Commercial

representative may be constituted to go into details in respect
of classification of debtors and give their recommendation
within a period of 2 months.

Kindly ensure that the Revised Accounts Manual should be

implemented in a time bound schedule as above to achieve the
desired results.

Sd/-
(D. Sankaran)
AGM (Finance)
TO: All Heads of Finance

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 Accounts Manual

00 SHARE CAPITAL

0010 Equity Share Capital

On allotment of equity shares by the Company to the shareholders, this
account shall be credited with the value of shares issued.

0020 Share Capital Deposit

Money received from the intending shareholders towards share capital
shall be credited to this account and on allotment and issue of shares to
the share holders account code 0010 --'Equity Share Capital' shall be
credited by debit to this account.

0030 Share Application Account

On receipt of share application money, this account will be credited with
the actual amount received irrespective of the shares offered. When
shares are allotted, the application money on the number of shares
allotted (as distinct from the number applied for) will be transferred to
0010 – Equity Share Capital. The surplus application money on partially
accepted applications will be transferred to the credit of the Share
Allotment Account. Surplus money exceeding that due on allotment and
application money received on the rejected applications has to be
refunded and on refund the amount should be transferred from this
account. Share Application Account will show no balance after entries on
allotment of shares have been completed.

0040 Share Allotment Account

This account will be debited with the full or gross amount due on
allotment by corresponding credit to 0010 – Equity share Capital. The
surplus application money on partially accepted applications will be
transferred to the credit of 'Share Allotment Account', as so much
money will not be paid by the allottees. As and when Allotment Money is
received, Bank is debited and Share Allotment Account is credited. The
balance in the Share Allotment Account will show the amount still due
from various shareholders.

0050 Share Call Account

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 The total amount due on a call is debited to this account and credited to
0010 Equity share Capital. As and when amounts are received, this
account is credited. The balance in the call Account will show the amount
still due from various shareholders.

0060 Share Call in Advance Account

On receipt of such sums in advance of calls, the amount will be credited
to this Account and should be shown separately in Balance Sheet and
not added to Equity Share Capital Account. When the call is made, the
calls in Advance Account will be debited and the Share Call Account
credited.

0070 Share Call in Arrears

0080 Share Forfeited Account

On forfeiture of shares the Equity Capital Account will be debited with
the amount called up in respect of forfeited shares. The credit will be to
the various Share Call Accounts that are in arrears and to the shares
Forfeited Account with the amount actually received. If share premium
has been received it will remain in Share Premium Account. Forfeited
shares can be reissued at a discount provided the discount does not
exceed the forfeited amount. The discount thus allowed will be debited
to Shares Forfeited Account. If the discount allowed is less than the
forfeited amount, a profit will remain in the Shares Forfeited Account
which shall be transferred to Capital Reserve Account. The amount
forfeited on shares not yet re-issued will remain in this account and will
be shown in the Balance Sheet along with Share Capital.

Note: Group 00 to be operated by Corporate Office only.

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01 FUNDS FROM CORPORATE OFFICE

0100 Funds from Corporate Office

The funds provided by Corporate Office to various divisions for
financing the capital expenditure in the form of their share in equity
capital shall be booked to this account. On making such allocation
Corporate Office shall debit this account in its books whereas the
divisions shall credit to this account in their books. This account shall be
supported with a sub ledger to keep the division wise details in
Corporate Office. At the time of consolidation of accounts this account
shall be set off with the credit balances appearing in the accounts of
divisions.

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02 RESERVES AND SURPLUS

0210 Capital Reserve

Value of land transferred to the Company free of cost, capital gains
arising out of revaluation, amount of grant provided or cost reimbursed
by local agencies/ state or central governments towards capital
expenditure made by the Company or any other capital gains which are
not directly connected with the normal operations of the Company shall
be credited to this account.

0220 Securities Premium Account

If securities are issued at a premium, the premium when received will be
credited to this account. Securities premium Account can be applied by
the Company in accordance with Section 78 of the Companies Act, 1956.
This code shall be operated by Corporate Office only.

0240 General Reserve

Reserve created by appropriation of profit not intended for any specific
purpose but for meeting any unforeseen contingency in future or for
future expansion of the Company shall be credited to this account. This
code shall be operated by Corporate Office only.

0260 Foreign Projects Reserve Account

Reserve created to accommodate the deduction claimed in respect of
Foreign Projects, under the Income Tax Act, for computation of total
income of the year, subject to the fulfillment of the conditions
stipulated in the relevant Sections of the Act, shall be credited to this
code. This reserve has to be maintained in the Books and utilized in the
manner given in the Act.

0270 Debentures/Bonds Redemption Reserve

This reserve is created to meet fund requirement for redemption of
Bonds/ Debentures on the stipulated date. This code shall be operated
by Corporate Office only.

0290 Surplus as per Profit and Loss Account

Any surplus left over in the `Profit and Loss Account' after transferring to the
reserves mentioned above shall be credited to this account.

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03 SECURED LOANS

0300 Debentures
Amounts received on the issue of debentures shall be credited to this
account and the repayment of the value of debentures/ financial
instruments on redemption shall be debited to this account. This code
shall be operated by Corporate Office only.

0301 Bonds
Amounts received on the issue of Bonds shall be credited to this account
and the repayment of the value of bonds on redemption shall be debited
to this account .This code shall be operated by Corporate Office only.

0302 Other Financial Instruments

Amounts received on the issue of financial instruments other than
debentures & bonds shall be credited to this account and the repayment
of the value of financial instruments on redemption shall be debited to
this account. This code shall be operated by Corporate Office only.

0310 Nationalized Bank -SBI

0311 Nationalized Bank -Canara Bank

0312 Nationalized Bank -Bank of Baroda

0313 Nationalized Bank -Punjab National Bank

0314 Nationalized Bank -State Bank of Hyderabad

0315 Nationalized Bank -State Bank of Travancore

0325 Nationalized Bank -Others

0326 Other Scheduled Banks -HDFC Bank

0327 Other Scheduled Banks -ICICI Bank

0328 Other Scheduled Banks -CITI Bank

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0329 Other Scheduled Banks -IDBI Bank

0330 Other Scheduled Banks -ABN AMRO Bank.

0331 Other Scheduled Banks -Deutsche Bank

0332 Other Scheduled Banks -Standard Chartered Bank

0333 Other Scheduled Banks -HSBC Bank

0338 Other Scheduled Banks -Others

0339 Non Scheduled Banks

NOTE
The banks have been grouped according to the category of the banks i.e.
nationalized, other scheduled banks and nonscheduled banks. Divisions
will keep the account for each bank under category of ‘Others’
separately. Any payment authorized under cash credit facility secured
by hypothecation of stores and spare parts, raw materials, work in
progress and finished goods shall be credited to relevant account.
Deposits made by cash, cheque and demand draft shall be debited to
relevant account.

Under centralized cash credit system the above accounts are to be

operated only by Corporate Office. Divisions will operate these accounts
only in case of the banks where centralized cash credit system is not in
operation. Debit balances, if any, at the end of the financial year in the
bank accounts operated under cash credit facility will be transferred to
corresponding codes under group 21 viz., codes 2110 to 2130 at the time
of closing of accounts for the year and the same entry will be reversed
at the beginning of the next financial year.

0340 Bill Market Scheme / Other Similar Schemes

The amount received from banks under Reserve Bank of India's New Bill
Market Scheme / Other Similar Schemes by discounting bills of
exchange accepted by the Company under Buyer's Scheme shall be
credited to this account. When the liability is cleared, this account shall
be debited.

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0350 Demand Bills/ Working capital demand loan -SBI

0351 Demand Bills/ Working capital demand loan -Canara Bank

0352 Demand Bills/ Working capital demand loan -Bank of Baroda

0353 Demand Bills/ Working capital demand loan -Punjab National Bank

0354 Demand Bills/ Working capital demand loan -HDFC Bank

0355 Demand Bills/ Working capital demand loan -ICICI Bank

NOTE
Any amount received under participation arrangement by executing
demand promissory notes to increase the cash credit limits through
State Bank of India / any other bank by hypothecation of stores and
spare parts, raw materials, work in progress and finished goods shall be
credited to this account by a corresponding debit to the respective cash
credit account codes 0310 to 0339. This account will be operated only by
Corporate Office.

0360 Loans from State Governments

0370 Interest Accrued and Due on Loans from State Governments

0380 Loans from Financial Institutions and others

0390 Interest Accrued and Due on Loans from Financial Institutions,

Debentures/ Bonds and Others
Interest accrued and due on Financial Institutions and Others (0380)
and interest accrued and due on Debentures/Bonds (0300 - 0302) are to
be accounted in this Code.

NOTE
Any amount received from State Governments or Financial Institutions
and/or others against hypothecation of stores and spares parts, raw
materials, work-in-progress, finished goods or any of the fixed assets of

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the company will be credited to codes 0360 or 0380 as the case may be.
The corresponding interest accrued and due during the year will be
credited to codes 0370 and 0390 respectively. As and when the
liabilities are cleared, these accounts will be debited.

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04 EXPORT CREDITS

0410 Packing Credit -SBI

0411 Packing Credit -ICICI Bank

0412 Packing Credit –PNB

0413 Packing Credit -HDFC Bank

0414 Packing Credit –EXIM Bank

0419 Packing Credit –Others

0420 Post Shipment Credit -SBI

0421 Post Shipment Credit -ICICI Bank

0422 Post Shipment Credit -PNB

0423 Post Shipment Credit -HDFC Bank

0424 Post Shipment Credit -EXIM Bank

0429 Post Shipment Credit -Others

NOTE
The money received from Banks/EXIM Bank for financing export orders
or for the dispatches made on account of export sales shall be credited
to account codes 0410 to 0429 as the case may be. When the liability is
discharged, the same shall be debited to the relevant account.

0450 Interest Accrued and Due on Post Shipment Credits – SBI

0451 Interest Accrued and Due on Post Shipment Credits – ICICI Bank

0452 Interest Accrued and Due on Post Shipment Credits PNB

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0453 Interest Accrued and Due on Post Shipment Credits – HDFC Bank

0454 Interest Accrued and Due on Post Shipment Credits – EXIM Bank

0459 Interest Accrued and Due on Post Shipment Credits – Others

0460 Interest Accrued and Due on Packing Credits – SBI

0461 Interest Accrued and Due on Packing Credits – ICICI

0462 Interest Accrued and Due on Packing Credits –PNB

0463 Interest Accrued and Due on Packing Credits – HDFC Bank

0464 Interest Accrued and Due on Packing Credits – EXIM Bank

0469 Interest Accrued and Due on Packing Credits – Others

NOTE
The amount of interest accrued and due on packing credits and post
shipment credits but not paid till the end of the financial year, will be
credited at the year end to code 0450 to 0469, as the case may be, by a
corresponding debit to code 8750 or 8760. When the interest is actually
paid, the same shall be debited to code 0450 to 0469, as the case may
be.

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05 & 06 UNSECURED LOANS, DEFERRED CREDITS

0510 Loans from Government of India

Amounts received from Government of India as loan shall be credited to
this account and the repayment of loan installments shall be debited to
this account. This account shall be operated only by Corporate Office.

0520 Interest Accrued and Due on Loans from Government of India

Amount of interest accrued and due but not paid shall be credited to
this account by debit to account code 8693 – `Interest on Central
Government’. This account shall be operated only by Corporate Office

0530 Public Deposits

The amounts received from the members of public towards fixed
deposits under `The Companies (Acceptance of Deposits) Rules, 1975'
shall be booked to this account. This account shall be operated by
Corporate Office.

0540 Loans from State Governments

0550 Interest Accrued and Due on Loans from state governments.

0560 Loans from Financial Institutions and Others

0570 Interest Accrued and Due on Loans from Financial Institutions & Others
Any amount received from State Governments or financial institutions
and/or others which is not secured by hypothecation of any assets will
be credited to codes 0540 and 0560, as the case may be. The
corresponding interest accrued and due during the year will be credited
to the codes 0550 and 0570 respectively. As and when the liabilities are
discharged, these accounts will be debited.

0580 Loans from Nationalized and Scheduled Banks

All deposits and withdrawals against cash credit from nationalised banks
which is not secured by any hypothecation of assets shall be booked to
these accounts.

0581 Loans from Non Scheduled Banks

15
 All deposits and withdrawals against cash credit from other scheduled
banks or nonscheduled banks (including foreign banks outside India)
which
is not secured by any hypothecation of assets shall be booked to these
accounts.

0600 Interest accrued and due on Public Deposits

This code will be operated only by Corporate Office only.

0610 Deferred Credits Supplier Credit –Capital

The transactions with regard to any arrangement with suppliers or any
other parties which stipulate the discharge of liability over a period of
more than one year for capital transaction shall be booked to this
account.

0611 Deferred Credits Supplier Credit –Revenue

The transactions with regard to any arrangement with suppliers or any
other parties which stipulate the discharge of liability over a period of
more than one year for Revenue transaction shall be booked to this
account.

0612 Deferred Credits Liability for Leased Assets

In respect of assets taken on finance lease w.e.f. 1.4.2001, at the
inception of the lease the asset shall be capitalized at the amount
calculated in accordance with Accounting Standard 19-Leases, the
corresponding liability shall be credited to this account.

0630 Interest accrued and due on Assets taken on Finance lease

0650 Loans from Foreign Financial Institutions and Others for Foreign
Purchases

0660 Interest Accrued and Due on Loans from Foreign Financial Institutions
and Others
Any amounts received from any foreign financial institutions and / or
others (to finance the foreign purchases), which is not secured by
hypothecation of any assets, will be credited to code `0650'. The
interest accrued and due on such a loan during the year will be credited
to code `0660' by debit to code `8700 to 8703'. As and when these

16
 liabilities are discharged by repayment of loan / payment of interest,
the said account (code 0650 & 0660) will be debited. These codes will be
operated by the respective divisions which utilize the loan.

0670 Loans from Financial Institutions in Foreign Currency

0671 Loans from Banks in Foreign Currency

0672 Loans from any other agency in Foreign Currency

0673 Packing Credit in foreign currency

0674 External Commercial borrowing

0680 Commercial Paper

Amount received on issue of Commercial Papers shall be credited to this
account and shall be debited on repayment. This account shall be
operated by Corporate Office Only.

0690 Loans from Companies

This code shall be operated by Corporate Office only.

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07 & 08 FIXED ASSETS GROSS BLOCK FACTORY & TOWNSHIP

0700 Assets Given on lease -Factory

The cost of fixed assets items given on lease shall be debited to this
account. The quantity as well as value record of all such items are to be
maintained in a separate Leased Assets Register.

0710 Land Freehold -Factory

Compensation paid to a vendor or any other agency, the initial charges in
the form of a registration fees, stamp duty etc. and the nominal/fair
value of the land transferred to the Company free of cost by State or
Central Government, local bodies or any other agency shall be debited to
this account. The nominal/ fair value of the land received free shall be
capitalized by credit to account code 0210 `Capital Reserve’.

0711 Land Development Expenses Freehold -Factory

All expenses incurred subsequent to the purchase or acquisition of the
freehold land which are in the nature of developing the land shall be
debited to this account.

0712 Land Freehold – Township

Compensation paid to a vendor or any other agency in the form of
registration fees, stamp duty etc, and the nominal /fair value of the land
transferred to the Company free of cost by State or Central
government, Local bodies or any other agency shall be debited to this
account. The nominal / fair value of the land received shall be capitalized
by credit to the account code 0210 – Capital Reserve.

0713 Land Development expenses Freehold -Township

All expenses that are incurred subsequent to the purchase or acquisition
of the freehold land which are in the nature of developing the land shall
be debited to this account.

0720 Land Leasehold -Factory

Any premium or amount paid or expenses incurred on acquisition of land
for a fixed period on leasehold basis shall be debited to this account.

0721 Land Development expenses Leasehold -Factory

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 All expenses incurred subsequent to the acquisition of leasehold land
which are in the nature of developing the land shall be debited to this
account.

0723 Land Leasehold -Township

Any premium or amount paid or expenses incurred on acquisition of land
for a fixed period on leasehold basis shall be debited to this account.

0724 Land Development Expenses – Leasehold Township

All expenses incurred subsequent to the acquisition of the leasehold land
which are in the nature of developing the leasehold land shall be debited
to this account.

0730 Roads, Bridges and Culverts -Factory

All expenses incurred for the construction of roads, bridges and
Culverts shall be debited to this account.

0731 Roads, Bridges and Culverts -Township

All expenses incurred for the construction of roads, bridges and
culverts shall be debited to this account.

0740 Buildings -Factory

The capitalized cost of all buildings including factory blocks,
maintenance workshops, power houses, laboratory buildings, service
tunnels, canteen buildings, administrative buildings, garages, medical
centers, fire stations, perimeter walls, industrial estate buildings, car
parks, cycle sheds located inside factory shall be debited to his account.

0741 Building -Township

The capitalized cost of all township buildings including residential and
nonresidential buildings, security barracks, labour tenements,
consultants’ quarters, hospitals, schools, community halls, clubs, cinema
halls & trainees Hostels etc. and other buildings for social and cultural
activities shall be debited to this account.

0750 Enabling works at Erection/Project Sites -Factory

Capitalized costs of all structures like buildings, roads, bridges and
culverts ,railway sidings , electrical installations and other enabling
works at erection/project sites(other than purely temporary erections,

19
 wooden structures which are to be written off 100% at the year of
completion of construction of the structure) are to be accounted under
this code; Depreciation for assets under this code is to be booked as per
the policy on charging of depreciation relating to erection/project sites.
Project Site shall maintain the records.

0751 Enabling works at Erection/Project Sites -Township

Capitalized costs of all structures like buildings, roads, bridges and
culverts railway sidings, electrical installations and other enabling works
at erection/project sites (other than purely temporary erections,
wooden structures which are to be written off 100% at the year of
completion of construction of the structure) are to be accounted under
this code; Depreciation for assets under this code is to be booked as per
the policy on charging of depreciation relating to erection/project sites.
Project Site shall maintain the records.

0760 Building Lease Hold -Factory

Any premium or amount paid to acquire any building on lease basis
including initial charges in the form of registration fees, stamp duty
etc., shall be debited to this account.

0761 Buildings Lease Hold -Township

Any premium or amount paid to acquire any building on lease basis
including initial charges in the form of registration fees, stamp duty
etc., shall be debited to this account

0770 Drainage, Sewerage & Water Supply-Factory

The capitalized cost of drainage, sewerage and water supply
installations shall be debited to this account.

0771 Drainage, sewerage and Water Supply -Township

The capitalized cost of drainage, sewerage and water supply
installations shall be debited to this account.

0780 Railway Siding -Factory

The expenses incurred for the construction of railways siding and
platforms etc. for loading and unloading shall be debited to this account.

0790 Locomotives and Wagons -Factory

20
 The cost of locomotives and wagons for transportation of goods etc., and
other related incidental expenses for the acquisition of these assets
shall be debited to this account.

0791 Locomotives and Wagons -Township

The cost of locomotives and wagons for transportation of goods etc., and
other related incidental expenses for the acquisition of these assets
shall be debited to this account.

0800 Plant & Machinery taken on Lease – Factory

0801 Machinery taken on Lease -Township

0802 EDP Equipment taken on Lease – Factory

0803 EDP Equipment taken on Lease -Township

0804 Office & Other Equipments taken on Lease – Factory

0805 Office & Other Equipment taken on Lease -Township

0806 Other Assets taken on Lease – Factory

Note: The cost of fixed assets taken on lease are required to be

capitalized as per AS-19 Leases issued by ICAI, shall be debited to
account code 0800-0806. For assets taken on lease a separate
register shall be maintained.

0807 Other Assets taken on Lease -Township

0810 Plants & Machinery General – Factory

The cost of acquisition of plant & machinery (General) including related
expenses like freight, local agents’ commission, customs duty etc., other
incidental expenses, erection and commissioning charges etc., shall be
debited to this account. Any portion of the incidental expenses during
construction which is attributable to machinery shall also be debited to
this account.

0811 Plant and Machinery –Automatic /Semi Automatic- Factory

21
 The cost of acquisition of plant and machinery –Automatic /Semi
Automatic- Factory including related expenses like freight, local agents’
commission, customs duty etc., other incidental expenses, erection and
commissioning charges etc., shall be debited to this account. Any portion
of the incidental expenses during construction which is attributable to
machinery shall also be debited to this account.

0812 Plant and Machinery General -Township

The cost of acquisition of any general machinery located in township
including related expenses like freight, local agents’ commission, customs
duty etc., other incidental expenses, erection and commissioning charges
etc., shall be debited to this account. Any portion of the incidental
expenses during construction which is attributable to machinery shall
also be debited to this account.

0813 Plant and Machinery Automatic / Semi Automatic -Township

The cost of acquisition of any Automatic or Semi Automatic machinery
located in township including related expenses like freight, local agents’
commission, customs duty etc., other incidental expenses, erection and
commissioning charges etc., shall be debited to this account. Any portion
of the incidental expenses during construction which is attributable to
machinery shall also be debited to this account.

0820 Electronic Data Processing Plant /Equipment - Factory

The cost of acquisition of Electronic Data Processing Plant /Equipment -
Factory together with all accessory plants/ equipments and other
hardware including related expenses like air/ocean freight, local agents’
commission etc, shall be debited to this account. However in case of
equipments erected in leased buildings, the civil works portion will be
charged off to revenue.

0821 Electronic Data Processing Plant/Equipment- Township

The cost of acquisition of Electronic Data Processing Plant together with
all accessory plants/ equipments and other hardware including related
expenses like air/ocean freight, custom duty, local agents’ commission
etc., rail/ road freight, other incidental expenses, erection and
commissioning charges etc., shall be debited to this account. However, in
case of equipments erected in leased buildings, the civil works portion
will be charged off to revenue.

22
0830 Electric Installations – Factory
The cost of overhead and underground cables, wires, switchgears,
transformers including any layout expenses during construction
attributable to these installations shall be debited to this account.

0831 Electrical Installations -Township

The cost of overhead and underground cables, wires, switchgears,
transformers including layout expenses during construction attributable
to these installations shall be debited to this account.

0840 Construction /Erection Equipments - Factory

The cost of acquisition of all construction/erection equipments
purchased for various operations at site including all including related
expenses like freight, customs duty, incidental expenses & erection and
commissioning charges etc. if any, shall be debited to this account.

0850 Research and Development Special Equipments procured for Specific

Projects -Factory
The cost of acquisition of all research and development special
equipments which are not in the nature of general purpose facility but
required for a specific project , including related expenses like freight,
local agents’ commission, customs duty etc., other incidental expenses,
erection and commissioning charges etc., shall be debited to this
account.

0860 Vehicles- Factory

The cost of acquisition of transport vehicles such as buses , trucks,
tractors, cars, motor cycles ,scooters , etc, including initial cost of their
registration , insurance and road tax and any other incidental charges in
bringing vehicles to on the road is to be debited to this account.

0861 Vehicles -Township

The cost of acquisition of transport vehicles such as buses, trucks,
tractors, cars, motor cycles, scooters, etc., including initial cost of their
registration, insurance and road tax and any other incidental expenses in
bringing the vehicles on the road is to be debited to this account
0870 Office and other Equipments – Factory

23
 The cost of all office and other equipments including Air Conditioners,
costing more than Rs.10, 000 and not covered under any other code
under Group 07 shall be debited to this account.

0871 Office and other equipments -Township

The cost of all office and other equipments including ACs etc., costing
more than Rs. 10,000 and not covered under any other code under Group
0708 shall be debited to this account.

0880 Furniture & Fixtures -Factory

The cost of acquisition of furniture and fixtures shall be debited to this
account excluding the cost of internal partitions and other fixtures in
the rented buildings which shall be directly charged off to revenue in
the year of installation.

0881 Furniture and Fixtures -Township

The cost of acquisition of furniture and fixtures shall be debited to this
account excluding the cost of internal partitions and other fixtures in
the rented buildings which shall be directly charged off to revenue in
the year of installation.

0885 Intangible Assets- Internally Developed Software – Factory

0886 Intangible assets – Internally Developed Software –Township

0887 Intangible Assets – Internally Developed Patents & Trade Marks

-Factory

0889 Intangible assets – Internally Developed – Technical Know how -

Factory

0891 Intangible assets – Internally Developed – Others –Factory

0892 Intangible assets – Internally Developed – Others -Township

0893 Intangible assets – Software -Factory

0894 Intangible assets – Software -Township

24
0895 Intangible assets – Patents & Trade Marks -Factory

0897 Intangible assets – Technical Know how -Factory

0898 Intangible assets – Others -Factory

0899 Intangible assets – Others -Township

25
09 & 10 FIXED ASSETS ACCUMULATED DEPRECIATION-
FACTORY/TOWNSHIP

0900 Plant & Machinery taken on Lease –Factory

0901 Plant & Machinery taken on Lease -Township

0902 EDP Equipment taken on Lease -Factory

0903 EDP Equipment taken on Lease -Township

0904 Office & Other Equipment taken on Lease –Factory

0905 Office & Other Equipment taken on Lease -Township

0906 Other Assets taken on Lease –Factory

0907 Other Assets taken on Lease -Township

0910 Assets Given On Lease –Factory

0911 Assets Given On Lease -Township

0920 Land Leasehold -Factory

0921 Land Development Expenses Leasehold –Factory

0922 Land Leasehold -Township

0923 Land Development Expenses Leasehold -Township

0930 Roads, Bridges and Culverts –Factory

0931 Roads, Bridges and Culverts -Township

0940 Buildings –Factory

0941 Buildings -Township

26
0950 Enabling works at Erection/Project Sites –Factory

0951 Enabling works at Erection/Project Sites -Township

0960 Buildings Lease Hold –Factory

0961 Buildings Lease Hold -Township

0970 Drainage, Sewerage and Water Supply –Factory

0971 Drainage, Sewerage and Water Supply -Township

0980 Railway Siding –Factory

0981 Railway Siding -Township

0990 Locomotives and Wagons –Factory

0991 Locomotives and Wagons -Township

1000 Lease Adjustment Account -Factory

Against lease rental income booked in a/c code 4820/4821 a matching
annual charge is made to profit & loss a/c. The said annual charge is
calculated by deducting the amount of finance income for the period
from the amount of lease rental for that period. This account code shall
be debited/credited with the difference between the amount of annual
charge and the amount of depreciation on leased assets as per our
accounting policy, with a corresponding credit/debit to account ‘Lease
Equalization Account’ as the case may be. The balance standing in this
account shall be adjusted in the net block value of leased assets by
deduction from or addition to the amount of 'Assets given on lease –
4830 /4831 Lease equalization account.

1001 Lease Adjustment Account -Township

Against lease rental income booked in a/c code 4820/4821 a matching
annual charge is made to profit & loss a/c. The said annual charge is

27
 calculated by deducting the amount of finance income for the period
from the amount of lease rental for that period .This account code shall
be debited/credited with the difference between the amount of annual
charge and the amount of depreciation on leased assets as per our
accounting policy, with a corresponding credit/debit to account ‘Lease
Equalization Account’ as the case may be.

The balance standing in this account shall be adjusted in the net block
value of leased assets by deduction from or addition to the amount of
'Assets given on lease – 4830 /4831 Lease equalization account.

1010 Plant & Machinery General -Factory

1011 Plant & Machinery – Automatic / Semi Automatic –Factory

1012 Plant & Machinery General -Township

1013 Plant & Machinery – Automatic / Semi Automatic -Township

1020 Electronic Data Processing Plant/Equipment –Factory

1021 Electronic Data Processing Plant/Equipment -Township

1030 Electrical Installations -Factory

1031 Electrical Installations -Township

1040 Construction/ erection equipments -Factory

1050 Research and Development Special Equipments procured for

Specific Projects –Factory

1060 Vehicles-Factory

1061 Vehicles -Township

1070 Office and other Equipments -Factory

28
1071 Office & other Equipments – Township

1080 Furniture and Fixtures –Factory

1081 Furniture and Fixtures -Township

1085 Intangible assets – Internally Developed – Software Factory

1086 Intangible assets – Internally Developed – Software-Township

1087 Intangible assets – Internally Developed – Patents & Trade Marks -

Factory

1089 Intangible assets – Internally Developed – Technical Know how -

Factory

1091 Intangible assets – Internally Developed – Others -Factory

1092 Intangible assets – Internally Developed – Others -Township

1093 Intangible assets – Software –Factory

1094 Intangible assets – Software -Township

1095 Intangible assets – Patents & Trade Marks -Factory

1097 Intangible assets – Technical Know how -Factory

1098 Intangible assets – Others -Factory

The amount of provision created for depreciation on fixed assets shall
be credited to the respective accumulated depreciation accounts.
Further, the cost of lease hold land including land development expenses
incurred and the cost of buildings etc., constructed thereon and
separate lease hold buildings shall be written off in equal number of

29
 yearly installments over the life of the lease. For exhibition in final
accounts, this shall be shown as deduction from Fixed Assets.

1099 Intangible assets – Others -Township

The amount of provision created for depreciation on fixed assets shall
be credited to the respective accumulated depreciation accounts.
Further, the cost of lease hold land including land development expenses
incurred and the cost of buildings etc., constructed thereon and
separate lease hold buildings shall be written off in equal number of
yearly installments over the life of the lease. For exhibition in final
accounts, this shall be shown as deduction from Fixed Assets.

30
11 ASSETS CHARGED OFF DURING THE YEAR & CAPITAL
EXPENDITURE ON ASSETS NOT OWNED /LEASED BY COMPANY

1110 Fixed Assets Costing up to Rs. 10,000-Factory

Fixed assets of small value costing up to Rs. 10,000/ at the time of
purchase shall be booked to account code 1110. The quantity as well as
value record of all such items are to be kept in a separate Fixed Assets
Register for these items. Entry for charging 100% depreciation on these
will be passed simultaneously and not at year end by debiting relevant
code in 88 Group and by crediting account code 1150.

1111 Fixed Assets Costing up to Rs. 10,000-Township

Fixed assets of small value costing up to Rs. 10,000/ at the time of
purchase shall be booked to account code 1111. The quantity as well as
value record of all such items are to be kept in a separate Fixed Assets
Register for these items. Entry for charging 100% depreciation on these
will be passed simultaneously and not at year end by debiting relevant
code in 88 Group and by crediting account code 1151.

1120 Buildings – Purely Temporary Structures-Factory

Only those structures which are to be depreciated 100% in the year of
completion of construction is to be booked against this code. The
depreciation on this is to be booked against code 1160

1121 Buildings – Purely Temporary Structures-Township

Only those structures which are to be depreciated 100% in the year of
completion of construction is to be booked against this code. The
depreciation on this is to be booked against code 1161

1130 Company’s Contribution/Expenditure towards Construction,

Development Assets not owned by Company-Factory
This expenditure is to be written off in five years. At the end of five
years, the asset should be removed from Gross Block and accumulated
depreciation by setting off account codes 1130 and 1170.
No further bookings are to be made in this code from 01.04.2003 as
expenditure of this nature will be booked to code 8280 w.e.f.
01.04.2003.

31
1131 Company’s Contribution/Expenditure towards Construction,
Development Assets not owned by Company-Township
This expenditure is to be written off in five years. At the end of five
years, the asset should be removed from Gross Block and accumulated
depreciation by setting off account codes 1131 and 1171.
No further bookings are to be made in this code from 01.04.2003 as
expenditure of this nature will be booked to code 8280 w.e.f.
01.04.2003.

1150 Fixed Assets costing up to Rs. 10,000/ – Accum. Depreciation -Factory

1151 Fixed Assets costing up to Rs. 10,000/ – Accum. Depreciation-Township

1160 Building Purely Temporary structure – Accum. Depreciation-Factory

Depreciation in respect of those structures, which are to be written off
100% in the year of completion of construction, is to be booked against
this code.

1161 Building Purely Temporary structure – Accum. Depreciation-Township

Depreciation in respect of those structures, which are to be written off
100% in the year of completion of construction, is to be booked against
this code.

1170 Company’s Contribution/Expenditure towards Construction, Development

of Assets not owned by Company – Accumulated Depreciation-Factory
This account code is to be used to write off those expenditures which
are accounted under code 1130.

1171 Company’s Contribution/Expenditure towards Construction, Development

of Assets not owned by Company – Accumulated Depreciation-Factory
This account code is to be used to write off those expenditures which
are accounted under code 1131.

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12 CAPITAL EXPENDITURE IN PROGRESS

1200 Lease Assets under Erection

1210 Civil Works in Progress

The value of civil works in progress in respect of original schemes or
further expansion schemes which are finally intended for capitalization
shall be debited to this account and when capitalized shall be credited to
this account by corresponding debit to the respective fixed asset
accounts.

1220 Capital Works in Progress

The cost of certain types of machinery, equipments, furniture and other
items of the nature of fixed assets which are manufactured internally
and are in progress at the close of the accounting year shall be debited
to this account and by credit to account code 5010 and when capitalized
shall be credited to this account by corresponding debit to the
respective fixed asset accounts.

1230 Plant and Machinery and other Equipment under Erection

The cost of Plant and Machinery, erection tools and tackles and other
equipments which are received for erection and commissioning, and all
the expenses incurred on their erection and commissioning shall be
debited to this account. When any plant or machinery is erected this
code is to be credited by debiting the relevant asset code.

1240 Plant and Machinery and other Equipment Awaiting Erection

The account shall be debited with the cost of plant and machinery,
erection tools and tackles and other equipment together with the
incidental expenses when taken on stock. On issue for erection, the cost
shall be debited to account code 1230 “Plant and Machinery and other
Equipments under Erection” by corresponding credit to this account.

1250 Plant and Machinery and other Equipment in Transit

The cost of Plant and Machinery, construction equipments, tools and
tackles and R&D special equipments etc. (including the incidental
expenses incurred allocable) which are in transit at the close of the

33
 financial year, shall be debited to this account and reversed at the
beginning of the next financial year.

1260 Incidental Expenditure for the Acquisition of Plant and Machinery and
other Equipments
The actual incidental expenditure such as ocean freight, custom duty and
local agents’ commission incurred on the procurement of imported plant
and machinery and other equipments shall be debited to this account.
Other incidental expenses like railway/lorry freight, harbour dues,
handling charges, insurance, bank charges etc., wherever identifiable to
specific plant and machinery or other equipments shall be debited to this
account at actual, otherwise incidental expenses calculated at a
predetermined percentage of cost shall be debited to this account with
corresponding credit to 5790– “Price Variance” in the case of imported
plant and machinery/equipment and to 5820 - “Price Variance” in the
case of indigenous purchases. When Plant & Machinery and other
equipment is capitalized or accounted for under “Plant & Machinery and
other Equipments under Erection “, “Plant & machinery and other
Equipments awaiting Erection “and “Plant & machinery and other
Equipments in Transit” or relevant asset account such of these expenses
related to them shall also be added to cost of assets by credit to this
account.

1270 Plant and Machinery Transferred from other divisions awaiting

Erection/commissioning

1280 Construction Stores and Construction Stores in Transit

The cost of stores which have been exclusively procured for capital
construction works shall be debited to this account. The incidental
expenses incurred on the purchase of capital stores such as railway
freight, lorry freight, insurance, siding and other charges paid to
railways, handling charges to contractors on inward consignments and
similar other expenses shall also be debited to this account. On issue of
material to the construction works account code 1210 – “Civil Works in
Progress” shall be debited by credit to this account. Whenever materials
are issued to contractors on recovery basis, this account shall be
credited by a corresponding debit to account code 2420– “Advances for
Capital Expenditure”. In case of transfer of materials from production
stores, this account shall be debited by corresponding credit to account

34
 code 6160 – 6162 or 6260/6261– “Issues – other than Manufacturing
Items” whereas for transfer of materials to production stores this
account code shall be credited by debit to account code 6150 or 6240–
“Transfer from Construction/Surplus Stores”. This account shall not
transact the items which are not of the nature of capital construction
stores, namely, stores meant for repairs and maintenance and production
which are to be accounted under classification groups 56 to 62. The
value of Construction Stores in Transit at the close of the financial year
along with incidental expenses on these stores shall be debited to this
account and reversed at the beginning of the next financial year.

1290 Intangible assets – Internally Developed – Software

1291 Intangible assets – Internally Developed – Patents & Trade Marks

1292 Intangible assets – Internally Developed – Technical Know how

1293 Intangible assets – Internally Developed – Others

Note: Intangible Assets under development

Expenditure on Intangible assets being developed internally and in
progress at the close of the accounting year shall be debited to this
account by credit to respective code in Group 50. When capitalized this
code shall be credited by corresponding debit to code 0885 to 0899;

35
13 & 14 INVESTMENT IN AND OUTSIDE INDIA

1310 Shares in Cooperative Societies

Any investment made in the shares of cooperative societies run by the
employees of BHEL shall be debited to this account on allotment of
shares by corresponding credit to account code 1340 "Advances paid
towards Allotment of Shares / Debentures / Bonds".

1320 Shares in Public Sector Undertakings

Any investment made in the shares of public sector undertakings shall be
debited to this account on allotment of shares by corresponding credit
to account code 1340 "Advances paid towards Allotment of Shares /
Debentures / Bonds".

1330 Shares in Private Sector Undertakings

Any investment made in the shares of private sector undertakings shall
be debited to this account on allotment of shares by corresponding
credit to account code 1340 "Advances paid towards Allotment of
Shares / Debentures / Bonds".

1340 Advances paid towards Allotment of Shares/ Debentures/ Bonds

Any amount paid in advance for the purchase of shares, debentures or
bonds shall be debited to this account and on receipt of the share
allotment letters this account shall be credited by a corresponding debit
to respective investment account.

1350 Investments with Unit Trust of India

1360 Investments in Public Sector Bonds/Debentures

1370 Investment in Mutual Funds

1380 Investment in Government Securities

Note: Codes 1320, 1330 and 1350 to 1380 shall be operated by
Corporate Office only.

36
 All payments made subsequent to the allotment of partly paid shares,
debentures or bonds under account codes 1310, 1320, 1330, and 1350 to
1380 shall be directly debited to respective accounts to the extent of
full value of shares, debentures or bonds, as the case may be.

1390 Deposits Securities other than Cash (As per contraaccount Code 2890)
Security deposits received in the form of securities other than cash,
cheques, bank drafts, postal orders etc., shall be debited to this account
by credit to account code 2890 "Deposits Securities Other than Cash
(as per contra)". For exhibition in final accounts the balance under this
account shall be shown as a deduction from "Deposits Received".

1410 Share in Joint Ventures

Any investment made in the shares of a company, with whom BHEL has
entered into any Joint Venture, shall be debited to this account on
allotment of share by corresponding credit to account code 1340
'Advances paid towards Allotment of Shares/Debentures/ Bonds'. This
account shall be operated by Corporate Office.

1420 Other Long Term Investments

All long term investments not covered in existing account codes in this
group will be debited to this code. This code shall be operated by
Corporate Office only.

1430 Short Term Investments -NCDs

1431 Short Term Investments -Commercial Papers

1432 Short Term Investments -Inter Corporate Deposits

1433 Short Term Investments -Certificate of Deposits

1434 Short Term Investments -Treasury Bills

1435 Short Term Investments -Other Debt Instruments

Note: All short term investments will be debited to code from 1430 to
1435 except investments in Certificate of Deposits issued by banks
which will be debited to account ‘2160’. This code shall be operated by
Corporate Office only.

37
15 INTEREST, DIVIDENDS AND RENT RECEIVABLE ON
INVESTMENTS AND LEASED ASSETS

1500 Interest and Dividends Receivable on Investments

Any amount of interest or dividends which is accrued and due or
accrued on investments with third parties shall be debited to this
account by corresponding credit to account code 4720 "Interest
Received Others", 4760 “Interest Received or Accrued on Investments
in public sector Bonds / Government Securities” and 4780" Dividend
Received or Accrued on Investments with Unit Trust of India".

Note: Interest accrued and due on investments made under 'The

Companies (Acceptance of Deposits) Rules, 1975' shall also be debited to
this code.

1510 Interest Accrued on Term Deposits in Scheduled Banks in India

1520 Interest Accrued on Term Deposits in Scheduled Banks Outside India

1530 Interest Accrued on Term Deposits in Nonscheduled Banks in and

Outside India

1560 Gross Lease Rent Receivable

This account code will be used for assets given on finance lease after
1.4.2001. At the inception of lease this code will be debited with the
amount of Gross Receivable in lease. Gross Receivable in lease is equal to
the total minimum lease payments to be received plus the unguaranteed
residual value. (If the residual/salvage value is guaranteed, it would be
included in the minimum lease payments).

1570 Rent Receivable on Leased Assets

Any amount of rent which is accrued but not due shall be debited to this
account by corresponding credit to account code 4820/4821- “Rental
Income on Leased Assets”. The amount of rent which is accrued and due
shall be debited to account code 1873- “debtors – Others”.

1580 Interest Receivable on Delayed Payment of Rent Receivable on Leased

Assets

38
16 & 17 INVENTORIES

1610 Production Stores and Spares -Indigenous

1611 Production Stores and Spares -Imported

1620 Miscellaneous Stores -Indigenous

1621 Miscellaneous Stores -Imported

1630 Loose Tools -Indigenous

1631 Loose Tools -Imported

1640 Fuel Stores

1700 Stock with Sister Divisions for Fabricating and Subcontracting

1710 Raw Materials and Components -Indigenous

1711 Raw Materials and Components -Imported

1720 Material in Transit -Indigenous

1721 Material in Transit -Imported

1730 Work in Progress

1740 Finished Goods

1750 Finished Goods with Customers

1760 Scrap

1770 Stocks with Fabricators/ Sub Contractors

1780 Transfer in Transit

1790 CENVAT credit relating to Excise Duty element in Transfers in

Transit.

39
18 & 19 SUNDRY DEBTORS

1800 Collectible Debts -EXPORTS

1810 Collectible Debts (SEBs) -Power Sector (PS)

1811 Collectible Debts (SEBs) -Services and Spares Business Group (SSBG)

1812 Collectible Debts (SEBs) -Industry Sector (IS)

1813 Collectible Debts (SEBs) -Regional Operation Division (ROD)

1814 Collectible Debts (SEBs) -Direct Orders

State Electricity Boards And Other State Governments Bodies

(SEBs): It Covers All State Bodies Such As Electricity Boards,
Government Departments, Autonomous Bodies, Corporations, And Nigams
Or Companies Formed By Breaking SEBs, Whether Involved In Power
Generation, Transmission And Distribution Or In Any Other
Products/Services.

NOTES:
1: The identification of Business sector will be done on the basis of the
CCN number issued by them.
2: Industry Sector to include TBG and ROD to include Central Marketing
Group orders

1820 Collectible Debts (CPSUs Power) -PS

1821 Collectible Debts (CPSUs Power) -SSBG

1822 Collectible Debts (CPSUs Power) -IS

1823 Collectible Debts (CPSUs Power) -ROD

1824 Collectible Debts (CPSUs Power) -Direct Orders.

40
 Central Government Power Generation, Transmission & Distribution
PSUs/Corporations (CPSUsPower): It covers central government Public
Sector Undertakings and corporations set up under company act or any
other act, dealing in Power Generation, Transmission & Distribution such
as NTPC, NHEPC, NPC, NLC, DVC, PGCIL, etc. It also includes Joint
Ventures between Central Public Sector Undertakings/Corporations.
Dues from these PSUs for other than power equipment will also be
covered here.

1830 Collectible Debts (CPSUs Non Power) -PS

1831 Collectible Debts (CPSUs Non Power) -SSBG

1832 Collectible Debts (CPSUs Non Power) -IS

1833 Collectible Debts (CPSUs Non Power) -ROD

1834 Collectible Debts (CPSUs Non Power) -Direct Orders.

Central Government PSUs/Corporation/Autonomous Bodies Other Than

Covered In 1820 To 1824(CPSUs non Power) Such As IOC, ONGC,
BEL, GAIL, SAIL, HPCL, BPCL etc. Dues for Captive Power Plant
(CPP) set up by these PSUs will also be covered here.

1840 Collectible Debts (Railways) -PS

1841 Collectible Debts (Railways) -SSBG

1842 Collectible Debts (Railways) -IS

1843 Collectible Debts (Railways) -ROD

1844 Collectible Debts (Railways) -Direct Orders.

1850 Collectible Debts (Central Govt Dep’t) -PS

1851 Collectible Debts (Central Govt Dep’t) -SSBG

1852 Collectible Debts (Central Govt Dep’t) -IS

1853 Collectible Debts (Central Govt Dep’t) -ROD

1854 Collectible Debts (Central Govt Dep’t) -Direct Orders.

41
 Central Government Departments/Ministries (Central Govt. Dep’t):
It includes all the central government departments/ministries (other
than Railways) and institutions/authorities/other organizations set up by
them, such as Ministry of Defense, BSF, IREDA, IIT, ISRO etc

1860 Collectible Debts (Pvt. Parties) -PS

1861 Collectible Debts (Pvt. Parties) -SSBG

1862 Collectible Debts (Pvt. Parties) -IS

1863 Collectible Debts (Pvt. Parties) -ROD

1864 Collectible Debts (Pvt. Parties) -Direct Orders.

Private Parties (Pvt. Parties):

It covers all indigenous private parties irrespective of the type of
product supplied to them (Power and non power both). Joint ventures
between Pvt. Sector and Public sector will also be covered here.

1870 Carriage outward and other charges recoverable from the customer
The amount of freight, insurance and other charges paid on behalf of
customers recoverable from them shall be debited to this account. On
billing to customers this accounts shall be cleared by debiting respective
sundry debtors’ heads of Accounts.

1871 Debtors for Scrap and Surplus Material:

This account code shall accommodate the transactions in respect of
amounts due on account of sale of scrap and surplus material.

1872 Interest Accrued and due from the Customer

The amount of interest on delayed payments due from the customers
shall be debited to this account by a corresponding credit to account
code ‘4720’ Before accounting for accrued interest, confirmation from
customers is necessary. Interest accrued and due in respect of debts
deferred under Special Arrangement is also to be debited to this
account by corresponding credit to account code “4770“

1873 Debtors Others

42
 This account shall include debits arising from sales and services and
other transaction in respect of amount due from persons/parties other
than those covered in any other debtors account head.

Deferred debts Where according to the terms of the contract, the

payment is not falling due immediately on dispatch of goods/completion
of work and the payments is to be made by customer after specified
period/event /milestone.

Deferred debts relating to –Power Sector Marketing

1880 Deferred debts -Material Receipt Certificate ( MRC)- PS

1881 Deferred debts -Milestone/ Event Based – PS

1882 Deferred debts -Final Payment - PS

1883 Deferred debts -Under Special Credit Arrangement -PS

1884 Deferred Debts – Others –PS Not covered in 1880 to 1883

Deferred debts relating to - SSBG

1890 Deferred debts -Material Receipt Certificate ( MRC)- SSBG

1891 Deferred debts -Milestone/ Event Based - SSBG

1892 Deferred debts -Final Payment - SSBG

1893 Deferred debts -Under Special Credit Arrangement -SSBG

1894 Deferred Debts – Others –SSBG Not covered in 1890 to 1893

Deferred debts relating to - IS

1900 Deferred debts -Material Receipt Certificate ( MRC)- IS

1901 Deferred debts -Milestone/ Event Based - IS

43
1902 Deferred debts -Final Payment - IS

1903 Deferred debts -Under Special Credit Arrangement -IS

1904 Deferred Debts – Others-IS Not covered in 1900 to 1903 above

Deferred Debts relating to ROD

1910 Deferred debts -Material Receipt Certificate ( MRC)- ROD

1911 Deferred debts -Milestone/ Event Based - ROD

1912 Deferred debts -Final Payment - ROD

1913 Deferred debts -Under Special Credit Arrangement -ROD

1914 Deferred Debts – Others -ROD Not covered in 1910 to 1913 above

Deferred Debts relating to Direct Orders

1920 Deferred debts -Material Receipt Certificate ( MRC)- Direct Orders

1921 Deferred debts -Milestone/ Event Based - Direct Orders

1922 Deferred debts -Final Payment - Direct Orders

1923 Deferred debts -Under Special Credit Arrangement -Direct Orders

1924 Deferred Debts – Others –Direct Not covered in 1920 to 1923 above

Deferred Debts relating to Exports

1930 Deferred debts -Material Receipt Certificate ( MRC)- Exports

1931 Deferred debts -Milestone/ Event Based - Exports

1932 Deferred debts -Final Payment - Exports

1933 Deferred debts -Under Special Credit Arrangement -Exports

44
1934 Deferred Debts – Others –Exports Not covered in 1930 to 1933 above

Valuation Adjustment Account This account shall accommodate the

difference between the billing and the intrinsic or assessed value of
supplies/dispatches to customers, progress of erection or other services
rendered, as per company’s policy, where the billings are less than the
intrinsic or assessed value. The corresponding credit will be to the
relevant income head.

1940 Valuation Adjustment Account -PS

1941 Valuation Adjustment Account -SSBG

1942 Valuation Adjustment Account -Industry Sector

1943 Valuation Adjustment Account -ROD

1944 Valuation Adjustment Account -Direct Orders

1945 Valuation Adjustment Account –Exports

Accrued Revenue (Sales) Awaiting Formal Billing This group

of account codes shall accommodate billable value of dispatches not
billed, all adjustments of accrued income on account of sales, erection,
other services and PVC not billed for on the customer. The
corresponding credit will be to the relevant income head.

1950 Goods dispatched pending billing (GDPB) -PS

1951 Goods dispatched pending billing (GDPB) -SSBG

1952 Goods dispatched pending billing (GDPB) -Industry Sector & ROD

1953 Goods dispatched pending billing (GDPB) -Direct order

1954 Goods dispatched pending billing (GDPB) -Export Order

45
 PVC not billed / others

1955 PVC not billed/ others -PS

1956 PVC not billed/ others -SSBG

1957 PVC not billed / others -Industry Sector & ROD

1958 PVC not billed / others -Direct order

1959 PVC not billed / others -Export

Provision Short Supplies Where terms of payments in the contract

provide for invoicing full value of a product on dispatch of the last
substantial consignment to the customers, an adequate provision is to be
made in the accounts for such small items not dispatched to them. If
these items are not completed in the year of account and are left over
for manufacture and dispatch during the subsequent accounting year, a
provision for the same shall be made by crediting this account and
debiting account code 4310 to 4314" Sales Less Returns ". At the close
of the financial year this account will be shown as a deduction from
sundry debtors.

1960 Provision Short Supplies -PS

1961 Provision Short Supplies -SSBG

1962 Provision Short Supplies -IS

1963 Provision Short Supplies -ROD

1964 Provision Short Supplies -Direct Orders

1965 Provision Short Supplies -Exports

Provision for Bad and Doubtful Debts At the time of accounts

closing a close scrutiny of sundry debtors shall be made to arrive at the
total figure of bad and doubtful debts to be provided for. Any further
provision, if required, shall be made to the extent of the shortfall in this

46
 account by corresponding debit to account code 9010 to 9015 'Provision
for Bad and Doubtful Debts". Provision made in the earlier year, no
longer required will be written back by credit to account code 5490 to
5495.

When bad and doubtful debts for which provision had already been made
are written off finally under the sanction of the competent authority,
the corresponding provision made for the debts written off under code
197 shall be written back by debit to this account code and credit to
respective account code 5490 to 5495. The bad debts actually written
off will be booked to account code 8380 /8381"Bad Debts Written off"
by credit to the relevant 'Sundry Debtors' code.

1970 Provision for Bad and Doubtful Debts -PS

1971 Provision for Bad and Doubtful Debts – SSBG

1972 Provision for Bad and Doubtful Debts -IS

1973 Provision for Bad and Doubtful Debts -ROD

1974 Provision for Bad and Doubtful Debts -Direct Orders

1975 Provision for Bad and Doubtful Debts -Exports

Provision for liquidated damages (LD) Provision for liquidated

damages (LD) against debtors which are in books of accounts at the time
of Accounts closing, close scrutiny of Liquidated Damages levied
recovered by the customer is made to arrive at the figures of Liquidated
Damages to be provided for/expensed in the year. Any provision, if
required, shall be made by corresponding debit to respective account
code 9030 to 9035 and 9040 to 9045– “Provision for Liquidated
Damages”. Excess provision, if any, made will be written back by credit
to respective account code 5440 to 5445 and 5490 to 5495 When
liquidated damages for which provision had already been made are
written off under the sanction of the competent authority, the
corresponding provision made for liquidated damages charged off under
this code shall be written back by debit to this account code and credit

47
 to respective account code 5440 to 5445 “Withdrawal of provision for
Liquidated Damages”. Liquidated damages actually written off will be
booked to respective account code 8360 and 8361.The booking will be
done based on the business sector category.

1980 Provision for LD (Where debtors are in the books of accounts) -PS

1981 Provision for LD (Where debtors are in the books of accounts) -SSBG

1982 Provision for LD (Where debtors are in the books of accounts) -IS

1983 Provision for LD (Where debtors are in the books of accounts) -ROD

1984 Provision for LD (Where debtors are in the books of accounts) -Direct
Orders

1985 Provision for LD (Where debtors are in the books of accounts)-

Exports

Provision for liquidated damages (LD) against debtors which

are not in books of accounts At the time of Accounts closing,
close scrutiny of Liquidated Damages levied/recovered by the customer
is made to arrive at the figures of Liquidated Damages to be provided
for/expensed in the year. Any provision, if required, shall be made by
corresponding debit to account code 9030 to 9035 and 9040 to 9045–
“Provision for Liquidated Damages”. Excess provision, if any, made will be
written back by corresponding credit to account 5440 to 5445 and 5490
to 5495‘

When liquidated damages for which provision had already been made are
written off under the sanction of the competent authority, the
corresponding provision made for liquidated damages charged off under
this code shall be written back by debit to this account code and credit
to corresponding account code 5440 to 5445 “Withdrawal of provision
for Liquidated Damages”. Liquidated damages actually written off will be
booked to corresponding account code8360 to 8361.The booking will be
done based on the business sector category

1990 Provision for LD (Where no debtors are in the books of accounts) -PS

48
1991 Provision for LD (Where no debtors are in the books of accounts)-
SSBG

1992 Provision for LD (Where no debtors are in the books of accounts) -IS

1993 Provision for LD (Where no debtors are in the books of accounts) ROD

1994 Provision for LD (Where no debtors are in the books of accounts)-

Direct Orders

1995 Provision for LD (Where no debtors are in the books of accounts)-

Exports

49
20 CASH BALANCE IN HAND

2010 Cash in Hand

Balances of cash and revenue stamps at the close of financial year shall
be shown under this head. This account is not meant to be operated for
any transaction other than the temporary holding of cash which could
not be deposited immediately into the bank account or having been drawn
for the purpose of disbursement could not be disbursed within the same
day.

2020 Stamps / Papers in Hand

Balance of postage and stamp papers including the balance in postal
franking machine at the close of the financial year shall be shown under
this head.

2030 Imprest in Hand

Any amount given to cashier or departmental officers on Recoupment
basis for meeting day to day petty payments of nonspecific nature shall
be debited to this account. On receipt of Recoupment bill (Expenses
Statement), this account shall be credited by corresponding debit to
respective expense accounts. At the end of the financial year, a
certificate shall be furnished by such imprest holders to the Books
Section certifying the amount of unspent balance lying with them. The
debit balance under this account should be equivalent to the total of
imprest balances shown in the certificates. For the balance sheet
purpose, the balance in this account shall be clubbed with cash in hand.

2040 Cheques / Drafts on Hand

Any cheques/ Drafts received after close of banking hours on the last
working day of the financial year and hence not deposited in bank shall
be shown under this code head.

2080 Cash Receipts Control Account

All amounts received in the form of cash, cheques, demand drafts, postal
orders etc. shall be credited to this account as and when received in the
cash section. The respective sections at the time of clearing the
receipts shall debit this account by corresponding credit to the relevant

50
 final account. At the end of each accounting month, balance under this
account should be nil.

2090 Remittances in Transit

The remittances of funds from one division/ site to another through
banks or issues of transfer orders or cheques which are routed through
inter division account and not received at the other end at the close of
the financial year shall be debited to this account by the receiving
division. At the beginning of the next financial year, this shall be
reversed.

51
21 BALANCES WITH BANKS IN/OUTSIDE INDIA

2100 Cash Credit Account Debit Balances

At the end of the year, debit balances remaining in bank under
centralised cash credit system will be debited to this account. At the
beginning of the next financial year this entry shall be reversed.

2110 Nationalised Banks in India

2120 Other Scheduled Banks in India

2130 Non Scheduled Banks in India

2140 Nationalised Banks outside India

2141 Other Scheduled Banks outside India

2150 Foreign Banks outside India

2151 Non Scheduled Banks outside India

Account codes 2110 to 2151 shall accommodate the banking transactions
routed through current accounts other than cash credit in/ outside
India. The divisions shall keep account for each bank separately.
Note: See note below narration under code 0310 to 0330

2160 Term Deposits/certificate of Deposits in Scheduled Banks in India

This account shall accommodate deposit of surplus funds in Term
Deposits/certificate of deposits for fixed periods in scheduled banks in
India.

2170 Unclaimed/ Unpaid Dividend Bank Account

As per the provisions of Section 205(A)/205(C) of the Companies Act,
the amount of any Unclaimed/Unpaid – Dividend shall be deposited in
separate bank accounts within the specified period to be named as
Unclaimed/Unpaid – Dividend Account of BHEL.

2180 Term Deposits in Scheduled Banks outside India

52
2190 Term Deposits in Nonscheduled Banks in and Outside India
These accounts shall accommodate deposit of surplus funds in Term
Deposits for fixed periods in banks in and outside India.
Note: Codes 2160, 2180 and 2190 shall accommodate deposit of funds in
Term Deposits for fixed periods in banks in and outside India. Divisions
shall keep subsidiary ledgers for each bank/deposit.

53
22 LOAN

2210 Loans to Subsidiaries

This account shall be debited when payments are made to subsidiaries on
account of loans and this will be credited as and when the loans are
adjusted.

2220 House Building Loans to Employees

2230 Motor Car Loans to Employees

2240 Scooter and Cycle Loans to Employees

NOTE
Loans given to employees for the construction of house, purchase of
motor car/ scooter/ cycle shall be debited to the respective accounts
and recovery/ refund of principal amount of loan shall be credited to the
relevant accounts

2250 Loans to Public Sector Undertakings

This entry shall be reversed as and when the materials issued on loan are
received back or the transaction is converted into sale.

2260 Other Loans to Employees

Loans to employees other than those mentioned under the account codes
2220, 2230 and 2240 shall be debited to this account and on refund this
account shall be credited.

2270 Materials issued on Loan

At the end of the year, materials given on loan to outside parties shall
be debited to this account by corresponding credit to account code
6161/6260 -"Issues other than Manufacturing Items". However, the
detailed record should be kept in the Cost Ledger.
This entry shall be reversed as and when the materials issued on loan
are received back or the transaction is converted into sale.

2280 Loans to Outside Institutions

54
 Loans given to outside institutions like schools, cooperative stores,
cooperative canteens, cooperative banks etc. shall be debited to this
account and on refund this account shall be credited.

2290 Interest Accrued and / or Due on Loans – Housing

This account shall be operated at the year end to bring into account
interest accrued and/or due on all interest bearing housing loan by
credit to account code 4710.

2291 Interest Accrued and /or due on Motor car loans

This account shall be operated at the year end to bring into account
interest accrued and/or due on all interest bearing Motor Car by credit
to account code 4711.

2292 Interest Accrued and /or due on Scooter & Cycle Loans
This account shall be operated at the year end to bring into account
interest accrued and/or due on all interest bearing Scooter & Cycle
Loans by credit to account code 4712.

2293 Interest Accrued and/or due on Loans – Loans to Public Sector

Undertakings
This account shall be operated at the year end to bring into account
interest accrued and/or due on all interest bearing Loan to PSUs by
credit to account code 4740

2294 Interest Accrued and/or due on Loans – Other Loans

This account shall be operated at the year end to bring into account
interest accrued and/or due on all interest bearing other Loan by credit
to account code 4722
Note: Transactions on account of interest on loans to Public Sector
Undertakings and others will also be booked under this code.

55
23, 24 & 25 - ADVANCES RECVOVERABLE IN CASH OR IN KIND

2310 Festival Advances to Employees

2320 Leave Salary and Pay Advances to Employees

2330 Traveling Advances to Employees

2340 Leave Travel concession Advances to Employees

2350 Medical Advances to Employees

NOTE:
Advances paid to employees for specific purposes as indicated shall be
debited to the respective account and refund/ recovery/ adjustment
shall be credited. Any amount due after retirement for the specific
purpose shall be transferred to the head Miscellaneous Recoveries – Ex
employees.

2360 Other Advances to Employees (not bearing interest)

Advances to employees other than those mentioned under Accounts
Code 2310 to 2350 and 2370, which do not bear interest shall be
debited to this account and on refund this account shall be credited.

2370 Miscellaneous Advances to Employees

Advances given to employees as per Payment of Wages Act when the
net salary after deduction falls short of prescribed limit of the gross
salary etc. shall be booked to this account.

2380 Miscellaneous Recoveries Employees

Any income due on account of recoveries from employees on account of
rent, water charges, electricity charges, trunk call charges, transport
charges etc. shall be debited to this account by corresponding credit to
relevant income or expenses account as the case may be.

Note: Code 2400 'Miscellaneous Recoveries Others Outsiders’ is

operated in respect of outsiders. Code 2401 ‘Miscellaneous Recoveries
Exemployees' is operated in respect of Exemployees.

56
2390 Departmental Advances for Expenses -Employee
Advances given to departmental officers for specific purpose shall be
debited to this account. Based on the statements of account furnished
by the concerned departmental officers, the total amount of expenses
shall be credited to this account by debit to the respective expense
account. (Along with the statement of account unspent balance are to be
remitted). As far as possible, the balance under this code at the end of
the year should be NIL.

2400 Miscellaneous Recoveries – Others – Outsiders

Any income due on account of recoveries from outsiders on account of
rent, water charges, electricity charges, trunk call charges etc. shall be
debited to this account by corresponding credit to relevant income or
expense account as the case may be.

NOTE:
Code '2380 – Miscellaneous Recoveries – Regular Employees' is
operated in respect of Employees.

2401 Miscellaneous Recoveries – Ex – Employees

Any income due on account of recoveries from Ex employees on account
of rent, water charges, electricity charges, trunk call charges etc. shall
be debited to this account by corresponding credit to relevant income or
expense account as the case may be. Any other recovery pertaining to
the period of their service on account of specific reasons shall be
transferred to this account.

2410 Advances to Subsidiaries

Advances paid to Companies, which are subsidiaries of BHEL, either
towards supply or other services to be rendered shall be debited to this
account. This account shall be credited on adjustment of the advances.

2420 Advances for Capital Expenditure

Advance paid for the procurement of Plant and Machinery, other fixed
assets and for civil capital works shall be debited to this account. The
account shall be credited on the adjustment of the advance.

2430 VAT credit receivable Account – Revenue

57
 Tax paid on revenue inputs on which credit under VAT scheme is
available will be debited to this account. The balance under this code will
be utilised against payment of VAT on final products (A/c code
3500/3510 as the case may be). Any balance under this code at the end
of the Accounting Year will be shown in Schedule 9 under the head
"Advances to Others".

2431 VAT credit receivable Account – Capital

Tax paid on revenue inputs on which credit under VAT scheme is
available will be debited to this account. The balance under this code will
be utilised against payment of VAT on final products (A/c code
3500/3510 as the case may be). Any balance under this code at the end
of the Accounting Year will be shown in Schedule 9 under the head
"Advances to Others".

2432 VAT Credit Not Due - Capital

Tax paid, to the extent VAT credit is not available during the current
financial year but it will be available in any other financial year under
VAT scheme, will be debited to this account. The balance under this
code will be transferred to VAT credit receivable Account – Capital on
its becoming due. Any balance under this code at the end of the
Accounting Year will be shown in Schedule 9 under the head "Advances to
Others".

2433 VAT Credit due – Awaiting Documents

Any VAT Credit due but can not be claimed due to non availability of
proper documents shall be debited to this account. On receipt of
documents it will be transferred to the original head.

2434 Other adjustable Taxes

Tax paid on inputs on which credit is available will be debited to this
account. The balance under this code will be utilized against payment of
tax. Any balance under this code at the end of the Accounting Year will be
shown in Schedule 9 under the head "Advances to Others".

2440 Advances to Indigenous Suppliers – Against Documents

Advances paid for procurement of indigenous supplies other than capital
goods against dispatch documents shall be debited to this account. This
account shall be credited when the advances are adjusted.

58
2441 Advances to Indigenous Suppliers –Others
Advances paid for procurement of indigenous supplies other than capital
goods without dispatch documents shall be debited to this account. This
account shall be credited when the advances are adjusted.

2442 Advances to Foreign Suppliers – Against Documents

Advances paid for procurement of imported supplies other than capital
goods without dispatch documents shall be debited to this account. This
account shall be credited when the advances are adjusted.

2443 Advances to Foreign Suppliers – Others

Advances paid for procurement of imported supplies other than capital
goods without dispatch documents shall be debited to this account.
This account shall be credited when the advances are adjusted.

2444 Advances to Fabricators/Subcontractors – Against Documents

Advances made to fabricators for doing fabrication work on materials
supplied by BHEL without dispatch documents shall be debited to this
account. This account shall be credited when the advances are adjusted.

2445 Advances to Fabricators/ Subcontractors –Others

Advances made to fabricators for doing fabrication work on materials
supplied by BHEL against dispatch documents shall be debited to this
account. This account shall be credited when the advances are adjusted.

2450 Advance to Others Outsiders

Advances paid to subcontractor for erection and commissioning jobs and
for procurement of services other than capital goods or supplies shall be
booked to this account. This account shall be credited when the advance
is adjusted.

2460 Claims for Short Supplies/ Rejections and Rectification of Materials

The value of goods received short from suppliers or rejected on
inspection or otherwise and for which payments have been made
expenditure incurred shall be debited to this account and on realisation
or replacement, this account shall be credited. This code is operated
when the rejected materials are returned to the supplier and the
advances account is credited or where the cost is recoverable from

59
 Insurance due to transit damages or rectification charges are
recoverable from suppliers (if 100% advance was paid) or where
consignment is lost in transit and the cost is recoverable from
Insurance.

2470 Claims Recoverable

The value of claims lodged and accepted/ admitted by Shipping agents,
customs and port trust authorities, carriers, insurers, Govt. Deptts.,
etc., shall be debited to this account. When the money is received in
settlement of the claims, the same shall be credited to this account.

2480 Claims Recoverable under Group Insurance Scheme

The account shall be operated for claims recoverable under Group
Insurance Scheme. When insurance compensation is paid consequent
upon the death of an employee to his/ her nominee/ legal heirs, this
account shall be debited. When the money is received in settlement of
the claim in Corporate Office and credit is transferred to the Unit from
Corporate Office, the same shall be credited to this Account.

2481 Claims Recoverable from Gratuity Trust

The account shall be operated for claims recoverable from Gratuity
Trust. When any gratuity payment is made to an employee or his nominee
(s) in case of death, against the authorisation from the Gratuity Trust,
this account shall be debited. On getting recoupment of gratuity
payments from Gratuity Trust in the division, this account shall be
credited

2490 Advances to Canteen

The advances paid to the departmental canteen for purchases etc. shall
be debited to this account and on receipt of statement of expenditure,
this account shall be credited. “As far as possible the balance under this
code at the end of the year should be NIL”.

2500 Tax (other than Income Tax) Deducted by Customers and Others
Any Tax (other than Income Tax) deducted at source by Customers to
be adjusted at the time of assessment as per any Legal provision, shall
be debited to this account.

2510 Income Tax deducted by customers and others

60
 Income tax deducted by customers from the invoices for sales and
dispatches as per Section 194 C of the Income Tax Act shall be debited
to this account. Income Tax deducted at source by Unit Trust of India
from the dividend payable or by Scheduled Banks and Central/ State
Governments from the interest due and payable on investments under
the Companies (Acceptance of Deposits) Rules, shall be debited to Code
2510.
As and when the TDS certificates are received, code 2510 should be
credited with corresponding debit to code 2540.

2520 CENVAT credit receivable account – Revenue

Duty paid on revenue inputs, on which credit under CENVAT Scheme is
expected, will be debited to this account. As and when the CENVAT credit
is actually utilised against payment of Excise Duty on Final Products, this
code head will be credited by debit to Excise Duty Account. Any balance
under this code at the end of the Accounting Year will be shown in
Schedule 9 under the head "Advances to Others".

2521 CENVAT credit receivable account – Capital

Duty paid on capital inputs, on which credit under CENVAT Scheme is
expected during the current financial year, will be debited to this account.
As and when the CENVAT credit is actually utilized against payment of
Excise Duty on Final Products, this code head will be credited by debit to
Excise Duty Account. Any balance under this code at the end of the
Accounting Year will be shown in Schedule 9 under the head "Advances to
Others".

2522 CENVAT credit not due Capital

Duty paid on capital inputs, on which credit under CENVAT Scheme is not
expected during the current financial year but it is expected in any other
financial year, will be debited to this account. As and when the CENVAT
credit become due shall be transferred to CENVAT credit receivable
account – Capital. Any balance under this code at the end of the Accounting
Year will be shown in Schedule 9 under the head "Advances to Others".

2523 CENVAT Credit due – Awaiting Documents

Any CENVAT Credit due but can not be claimed due to non availability of
proper documents shall be debited to this account. On receipt of
documents it will be transferred to the original head.

61
2530 Advance Income Tax
This code will be operated by corporate office only.

2531 Advance FBT

This code will be operated by corporate office only..

2540 Tax deducted at source for which TDS certificates have been
collected.
After the certificates are received from customers, this code head will be
operated by the divisions to transfer to Corporate Office the balances
representing the tax deducted at source. Divisions operating this code
head should ensure that the amount relates to relevant year only and are
supported by original TDS certificates. It should be further ensured that
these certificates are deposited with Corporate Office one month before
filling of relevant Income Tax Return of the company. Corporate Office will
account for the amounts so transferred by divisions to code 2540 and
adjust the same at the time of final assessment.

2550 Other accrued Income

Accrued income from Export Incentives on Physical and deemed exports
and any income accrued otherwise than on account of sales and services,
which cannot be booked under codes 1500, 2380 and 2400, such as
commission etc. shall be debited to this account.

2560 Prepaid Expenses

The portion of expenses more than Rs.10, 000/ in each case paid in
advance during the current financial year, corresponding to the
expenditure for which services have not been used in the current year
and therefore, proportionately applicable to later years shall be debited
to this account as and when the voucher is passed. At the
commencement of the next financial year, the amounts applicable to the
then current year shall be transferred to the respective expenditure
accounts.

2570 Bills Receivable

62
 This code head will be used to account for Hundies and Bills received but
not encashed on a particular date. It should be shown in Schedule 9 as
advances to others.

2580 Service Tax Credit Receivable Account

Service tax paid on input services, on which credit as per the Service
Tax Credit Rule 2002 is expected, will be debited to this account. As
and when this credit is actually utilized against payment of service tax
on output services, this code head will be credited by debit to Service
Tax account code 7440. Any balance under this code at the end of the
accounting year will be shown in ‘Loans & Advances’ schedule under the
head “Advances to Others”.

2590 Provision for Bad and Doubtful Advances and Deposits

At the time of accounts closing a close scrutiny of loans, advances and
deposits shall be made to arrive at the total figure of bad and doubtful
loans, advances and deposits to be provided for. Any further provision, if
required, shall be made to the extent of short fall in this account by
corresponding debit to account code 9050' Provision for Doubtful Loans,
Advances and Deposits'. Provisions, if any, made in the earlier year and
no longer required shall be written back by credit to account code 5450
and debit to this account.

When bad and doubtful loans, advances and deposits for which
provisions had already been made are written off finally under the
sanction of the competent authority, the corresponding provisions made
for loans and advances written off, under code 2590 shall be written
back by debit to this account code and credit to account code 5450. The
loans, advances and deposits actually written off shall be booked to
account code 8380/8381 ‘Bad Debts Written Off' by credit to the
relevant loans or advance code head.

63
26 DEPOSITS

2610 Deposits with Customs

2620 Deposits with Port Trust

2630 Deposits with Railways

2640 Deposits with State Electricity Boards

2650 Deposits with Central Excise

NOTE
Deposits made with various authorities from time to time shall be
debited to the relevant deposit accounts and on adjustment of deposits
or receipt of balance amount these accounts shall be credited by
corresponding debit to expenses account or cash receipts control
account.

2660 Deposits with Post and Telegraph and for Telephones

Deposits with Post and Telegraph Department and deposit for
Telephone/Fax, for the installation of new connections or for rendering
any service shall be debited to this account On adjustment of deposit
this account shall be credited by corresponding debit to the relevant
expenses account.

2670 Deposits against Insurance premium

Premium deposited in advance as per clause 64 BV of insurance law. This
advance is adjustable through regular premium.

2680 Taxes and Duties paid under Protest

Excise duty, Customs duty, Sales tax and other statutory taxes which
has been paid under protest shall be debited to this account and on
finalisation of the case, the necessary adjustment shall be carried out
by crediting this account with a corresponding debit to natural heads or
cash receipts control account.

2690 Other Deposits

64
 Deposits with governments and with other agencies other than those
mentioned under account codes 2610 to 2660 shall be debited to this
account. On adjustment of deposits or refund this account shall be
credited by corresponding debit to respective expenses account or cash
receipts control account. Separate Records shall be maintained.

2691 Earnest money Deposits (Dr.)

Any earnest money Deposits with customer shall be debited to this
account. On its redemption this account shall be credit. Separate
Records shall be maintained.

2692 Security Deposits (Dr.)

Any earnest money Deposits with customer shall be debited to this
account. On its redemption this account shall be credit. Separate
Records shall be maintained

65
27 SUNDRY CREDITORS

2710 Admitted Account Capital

2720 Admitted Account Revenue

NOTE
The net amount passed for payment shall be credited to these accounts
according to the nature of transactions i.e. capital or revenue. The
corresponding amount when actually paid shall be debited to these
accounts thereby resulting in a balance which will represent the unpaid
amount at any point of time. Any authorisation issued to bankers such as
telegraphic transfers, railway credit notes, payments under letters of
authority and debits given to the banks on account of bank charges,
interest charges etc., are also to be routed through these accounts. The
operation of these accounts may be dispensed with in the case of small
offices where the number of transactions is not many, with the specific
approval of the Head of Finance and Accounts department.

2730 Sundry Creditors – Capital – Indigenous

2731 Sundry Creditors – Capital – Foreign

2732 Sundry Creditors – Subcontracting – Capital

2740 Sundry Creditors – Revenue – Indigenous

2741 Sundry Creditors Revenue -Foreign

2742 Sundry Creditors – Subcontracting Revenue

NOTE
Liability created against receipt vouchers for the purchase of fixed
assets, raw materials and components, stores and spare parts, both from
foreign and indigenous sources, liability created for direct deliveries,
liability created for fabrication charges for the fabrication and off
loading of items, liability created for claims payable to carriers and
insurers, liability created for the import of materials against payment
authorities issued to High Commission, London (payment of which is to be

66
 made on receipt of advice of payment) amount received from a supplier
in cash or by recovery from his bills which is payable to another supplier,
liability created for stores in transit and plant and machinery in transit
at the close of the financial year and its reversal, outstanding liability
payable to the fabricators and subcontractors at close of the financial
year and agency commission payable on foreign purchases shall be
booked to these accounts according to the nature of transaction i.e.
capital or revenue. When such liabilities are discharged this account
shall be debited. The outstanding balance under these accounts at any
point of time shall represent the liability payable by the Company.

2750 Acceptance / Bills Payable -Capital

2760 Acceptance / Bills Payable – Revenue

NOTE
The amount of bills accepted under 'Sellers' Bill Market Scheme' by the
Company for the payment at a latter date shall be credited to these
accounts according to the nature of transaction i.e. capital or revenue
and when the liability is finally discharged the same shall be debited.

2770 Stale Cheques

Liabilities created in respect of cheques issued but not presented during
their currency and outstanding as at the close of financial year shall be
credited under this account and when such liabilities are discharged this
code shall be debited.

2790 Other Expenses due

Liabilities created on account of goods purchased, services received or
in respect of contractual obligation will be credited to this account
which cannot be accommodated above but which come under the broad
category of Sundry Creditors.

67
28 DEPOSITS RECEIVED

2810 Security Deposits Works Contractors (Cr.)

All moneys received from works contractors in respect of security
deposit for the satisfactory execution of civil construction works,
electrical installation works, structural works, erection works and all
other works contracts shall be booked to this account. This account shall
be debited on refund/ adjustment of security deposit.

2820 Security Deposits Suppliers (Cr.)

All moneys received on account of security deposit for supplies and off
loading shall be booked to this account and shall be debited on refund/
adjustment of security deposit.

NOTE
Account code 2810 or 2820 shall also be credited with the earnest
money amount converted as security deposit consequent on finalisation
of contracts. In case of forfeiture of security deposit for not observing
the terms and conditions stipulated in the contract the account code
2810 or 2820 shall be debited by a corresponding credit to account code
5391/ 5392 ' Other Sundry Receipts'.

2830 Earnest Money Deposits (Cr.)

All moneys received along with the tenders towards earnest money shall
be credited to this account. Refunds to unsuccessful tenderers and
adjustments as security deposits for the successful tenders shall be
debited to this account. Any amounts of Earnest Money Deposits
remaining unrefunded either due to nonavailability/ untraceability etc. of
the concerned tenderer for over 3 years from the date of finalisation of
the tender or on account of forfeiture due to nonobservance of any
terms and conditions of the tender by the concerned tenderer shall also
be debited to this account by corresponding credit to account code
5391/5392' Other Sundry Receipts '.

2840 Deposits for R & D Projects Financed by Government and Other

Outside Agencies
The Company is required to maintain separate accounts on Government
aided R & D Projects in the manner required and also render a statement

68
 of accounts to Government within six months of the closing of financial
year, besides keeping a separate memoranda record of assets valuing
more than Rs.1,000/. To facilitate this purpose, all amounts received
from Government of India or any other agency for R & D Projects will be
credited to this account. All expenditure incurred on tools, equipments,
civil works, consumables, consultancy expenses, computer charges and
other direct specific items relating to R & D Projects financed by
Government of India or other outside agencies will be debited to this
account. These expenditures will not be booked to the natural heads of
account. However, expenditure on staff, office expenditure and
contingencies etc. which may not be always directly identifiable to a
particular project will be continued to be booked to natural heads of
account on incurrence. Such expenditure to the extent reimbursable by
Government of India or other outside agencies, as per terms of relevant
sanction or agreement shall be debited to this account by credit to code
4810. The balance in this account will indicate at any time the net
amount due from or to Government or other agencies on account of aided
R&D projects and this account should be supported by project wise/
party wise details in subsidiary register/ cost ledger.

2880 Deposits – others

Deposits received from handling contractors, clearing agents, transport
contractors, for the sale of surplus and scrap materials, hostel and mess
deposits, deposits received from non entitled patients for treatment in
company's hospitals and any other deposit which is not mentioned
elsewhere shall be booked to this account and shall be debited on refund
or adjustment.

2890 Deposits – Securities Other than Cash (As per contra account code
1390)
Security deposits received in the form of securities other than cash,
cheques, bank drafts, Indian Postal Orders etc., shall be credited to this
account by corresponding debit to account code 1390 'Deposits
Securities Other than Cash (As per contra)'. For exhibition in final
accounts the balance under account code 1390 shall be shown as
deduction from 'Deposits Received'.

69
29 ADVANCES FROM CUSTOMERS AND OTHERS

2900 Advances from Customers -Exports

Note: Advances against export order (physical)

2910 Advances from customers State Electricity Boards and other state
bodies -PS

2911 Advances from customers State Electricity Boards and other state
bodies -SSBG

2912 Advances from Customers State Electricity Boards and other state
bodies -IS

2913 Advances from Customers State Electricity Boards and other state
bodies -ROD

2914 Advances from Customers State Electricity Boards and other state
bodies -Direct Orders

2920 Advances from customers Central PSUs (Power) -PS

2921 Advances from customers Central PSUs (Power) -SSBG

2922 Advances from customers Central PSUs (Power) -IS

2923 Advances from customers Central PSUs (Power) -ROD

2924 Advances from customers Central PSUs (Power) -Direct Orders

2930 Advances from customers Central PSUs (Non Power) -PS

2931 Advances from customers Central PSUs (Non Power) -SSBG

2932 Advances from customers Central PSUs (Non Power) -IS

2933 Advances from customers Central PSUs (Non Power) -ROD

70
2934 Advances from customers Central PSUs (Non Power) -Direct Orders

2940 Advances from customers Railways – PS

2941 Advances from customers Railways -SSBG

2942 Advances from customers Railways -IS

2943 Advances from customers Railways -ROD

2944 Advances from customers Railways -Direct Order

2950 Advances from customers Central Govt. Dep’t. – PS

2951 Advances from customers Central Govt. Dep’t. – SSBG

2952 Advances from customers Central Govt. Dep’t. – IS

2953 Advances from customers Central Govt. Dep’t. – ROD

2954 Advances from customers Central Govt. Dep’t. – Direct Order

2960 Advances from customers Private Parties – PS

2961 Advances from customers Private Parties – SSBG

2962 Advances from customers Private Parties – IS

2963 Advances from customers Private Parties – ROD

2964 Advances from customers Private Parties – Direct Order

Valuation Adjustment Account

This account shall accommodate the difference between the billing and
the intrinsic or assessed value of supplies/dispatches to customers,
progress of erection or other services rendered, as per company’s policy,
where the billings is more than the intrinsic or assessed value. The
corresponding debit will be to the relevant income head.

71
2970 Valuation Adjustment Account -PS

2971 Valuation Adjustment Account -SSBG

2972 Valuation Adjustment Account -IS

2973 Valuation Adjustment Account -ROD

2974 Valuation Adjustment Account -Direct order

2975 Valuation Adjustment Account –Exports

2980 Inter Division Advances :

This account shall be operated in such a case where advance has been
received from customer by one division of the company to be shared
with other divisions on some agreed basis. On transferring the advance
the division shall debit to this account and the receiving division shall
credit the same to relevant ‘Advance from customer’ head of account.

2990 Sale of Surplus or condemned Material

2991 Sale of scrap like tools etc

2992 Sales of fixed assets

2993 Sales of unusable/unserviceable items others.

72
30 –LIABILITY FOR EXPENSES

3000 Interest Accrued but not Due on Debentures/Financial Instruments

Interest accrued on debentures/Financial Instruments but not due for
payment shall be credited to this account code at the close of the
financial year by debit to code 8690 or 8692. As and when the accrued
interest becomes payable this code will be debited by credit to code
0390. This code shall be operated only by Corporate Office.

3001 Interest Accrued but not Due on Bonds

Interest accrued on bonds but not due for payment shall be credited to
this account code at the close of the financial year by debit to code
8691. As and when the accrued interest becomes payable this code will
be debited by credit to code 0390. This code shall be operated only by
Corporate Office.

3010 Interest Accrued but not Due on Loans from Government of India

3020 Interest Accrued but not Due on Loans from State Governments

3030 Interest Accrued but not Due on Deferred Credits and Other loans

3040 Liability Excise Duty

Excise duty payable by the Company on excisable items shall be credited
to this account by debit to account code 7470. When such amounts are
passed for payment the same shall be debited to this account.

3050 Liability Property Tax

Liabilities on account of tax payable on buildings and land to State
Governments or local bodies shall be credited to this account by debit to
account code 7450. When payment is authorized against the liability the
same shall be debited to this account.

3060 Interest Accrued but not Due on Public Deposits

Interest accrued on fixed deposits received from the members of public
under 'The Companies (Acceptance of Deposits) Rules, 1975' but not due
for payment shall be credited to this account at the close of the
financial year by debit to code 8650 “Interest on Public Deposits". This
account shall be debited as and when the payments of interest fall due

73
 and are paid to the depositors. The interest accrued and due on public
deposits but not paid will however be adjusted to code 0600.

3070 Income Tax paid on interest accrued but not due on Public Deposits
This code will accommodate the debit for income tax recoverable at
source and paid in advance on interest accrued on Public Deposits falling
under the 'Cumulative Deposits Scheme' and credited to the accounts of
the depositors annually but payable on the date of maturity of the
deposits. This account will be credited when the income tax so paid in
advance is recovered/ adjusted from the final payment due to the
depositors after the maturity date.

3080 Liability on account of funds received from Government for executing

various Projects.

3090 Liability for Expenses Other Payments

Accruals for goods or services that have been supplied or received but
have not been invoiced or not formally agreed with the supplier/service
provider, although it is sometimes necessary to estimate the amount of
accruals, which can not be booked in codes 2710 to 3080, 3110 to 3170
are to be accounted against this code by debiting the respective
expenditure code. Contribution to PF/Pension Fund on 7 days salary
account will also be booked to this code.

74
31 – LIABILITY FOR PAYMENT

3110 Salaries and Wages Payable -Employees

The net amount of salaries and wages payable to employees shall be
credited to this account. When such amounts are passed for payment
the same shall be debited to this account by corresponding credit to
admitted account.

3111 Salaries and Wages Payable – Ex Employees

The net amount of salaries and wages payable to ex employees shall be
credited to this account. When such amounts are passed for payment
the same shall be debited to this account by corresponding credit to
admitted account.

3120 Salaries and Wages – Unpaid – Employees

Undisbursed salaries and wages after the expiry of the period allowed
by the management from time to time shall be credited to this account
by debit to admitted account. When such payments are reauthorized,
the same shall be debited to this account by credit to admitted account.

3121 Salaries and Wages – Unpaid – Ex Employees

3130 Employees Payments due – Employees

3131 Employees Payments due – Ex Employees

3140 Liability for Bonus – Employees

3141 Liability for Bonus – Ex Employees

3142 Liability for Special Incentive – Employees

3143 Liability for Special Incentive – Ex Employees

3144 Liability for Plant Performance Payment and Others – Employees

3145 Liability for Plant Performance Payment and Others – Ex Employees

3146 Liability for Leave Encashment - Employees

75
3147 Liability for Leave Encashment – Ex Employee

3148 Liability for LTC/LTA - Employees

Liability for LTC/LTA to be created on accrual i.e. at the beginning of
the Blocks as on 1st Jan. The actual expenses on LTC/LTA as and when
incurred shall be debited to this account.

3150 Liability for Others - Employees

3160 Dividend payable A/c (Current Liability)

As per the provisions of Section 205 & 205 (A) of the Companies Act,
1956, the dividend is declared in Annual General Meeting. On declaration,
provision for dividend (code 3640) shall be debited and this account
shall be credited for full dividend amount.

3170 Unpaid/ Unclaimed Dividend Account

As per the provisions of Section 205(A) of the Companies Act, the
amount of any Unclaimed/Unpaid Dividend lying with the company at the
end of the specified period shall be credited to this account.

76
32 CONTRIBUTION TO FUNDS

3200 Company contribution to BHEL Group savings Linked Insurance

Scheme
The contribution made by the Company will first be credited to this
account by debit to code 7000. When the amounts are remitted to LIC,
this head will be debited to that extent. The amount remaining
unremitted under this code at the end of the year will represent the
liability of the company and will be shown in the balance sheet as other
current liabilities.

3210 Employees' Compulsory Contribution Provident Fund

Recoveries from employees towards compulsory contributions to
Provident Fund shall be credited to this account. On payment to the
Provident Fund Trust this account shall be debited.

3220 Company's Contribution Provident Fund

Company's contribution towards Provident Fund shall be credited to this
account by debit to account code 6910' Provident Fund'. When the
payment is made to the Provident Fund Trust, this account shall be
debited.

3230 Recoveries of Loans and Interest Provident Fund

Recoveries from employees on account of Provident Fund loans and
interest thereon shall be credited to this account and when the
payments are made to the Provident Fund Trust, this account shall be
debited.

3240 Staff Benefit Fund/ Labour Welfare Fund

Contribution from the employees and the management, commission on
cumulative time deposits, fines recovered from employees, receipts
through cultural programmes and all other contributions to this fund
shall be credited to this account. Payment towards grants and loans to
employees from the Fund shall be debited to this account. Recovery of
loans from employees shall be credited to this account. When the Staff
Benefit Fund is managed by autonomous committee the transactions shall
not be routed through this account.

3250 Urban Family Welfare Centre/ Medical Officers’ Fund

77
 All moneys received from government under the family planning scheme
shall be credited to this account. All payments and other expenses met
out of this fund shall be debited to this account. When this fund is
managed by an autonomous committee, the transactions shall not be
routed through this account.

3270 Company's Contribution to Pension Fund

Company's contribution towards pension scheme shall be credited to this
account and when payment is made to Provident Fund Commissioner, the
same shall be debited to this account.

3280 Employees' Voluntary Contribution Provident Fund

Recoveries from employees towards voluntary contributions towards
Provident Fund shall be credited to this account. On payment to
Provident Fund Trust, this account shall be debited.

3290 Contribution to Other Funds

The contribution towards any other fund which is not covered under
account codes 3200 to 3280 shall be credited to this account.

78
33 & 34 RECOVERIES FROM PAY PENDING DISBURSEMENTS.

3300 Employees' Contribution to BHEL Group Savings Linked Insurance Scheme

The amount of contributions recovered from the employees will first be
credited to this code and on remittance to the LIC this code will be
debited. Any amounts lying under this code at the year end will
represent the remittances to be made on account of employees'
contributions to BHEL Group Savings Linked Insurance Scheme and will
be shown as other current liabilities in balance sheet.

3310 Income Tax on Salaries

Income tax deducted at source from salaries and wages and payable to
income tax authorities shall be credited to this account. When payment
is made to income tax authorities, this account shall be debited.

3320 Life Insurance Premium

Life insurance premium deducted from the salaries and wages as per the
salary savings scheme shall be credited to this account. When payment is
made to Life Insurance Corporation, this account shall be debited.

3330 Post Office Deposits

The deductions in respect of Cumulative Time Deposit, Recurring
Deposit and National Savings Scheme from the salaries and wages shall
be credited to this account and on payment to Post Office this account
shall be debited.

3340 BHEL Employees' Cooperative Bank Ltd., Thrift Deposits and Other dues.
The deductions in respect of thrift deposit and recoveries of loans and
interest thereon from the salaries and wages payable to the 'Employees'
Cooperative Bank Ltd./ 'Employees' Cooperative Thrift and Credit
Society Ltd' shall be credited to this account and on payment this
account shall be debited.

3350 Staff Benefit Fund/ Labour Welfare Fund Employees' Subscription

Employees' subscription towards staff benefit deducted from salaries
and wages shall be credited to this account. This account shall be
cleared by transferring the balance to account code 3240 at the end of
each month and where this fund is managed by an autonomous committee
by payment to this committee.

79
3360 Death Relief Fund Employees' Subscription
Subscription towards death relief fund deducted from salaries and
wages shall be credited to this account and on making payment this
account shall be debited.

3370 Cooperative Stores and Cooperative Canteens Dues

Recoveries made from the salaries and wages on account of amounts due
to the cooperative stores and cooperative canteen shall be credited to
this account and on payment to cooperative stores/ canteen this account
shall be debited.

3380 Club Subscription

The amount of subscription deducted from the salaries and wages and
payable to community centers, officers' club, senior club, and
international club and similar other organisations shall be credited to
this account. Separate statistical records shall be maintained for each
kind of subscription for the purpose of remittances and this account
shall be debited as and when payments are made.

3390 Employment Tax

Employment tax deducted from salaries and wages and payable to local
bodies or state governments shall be credited to this account and this
account shall be debited when payment is made.

3410 Recoveries from Deputations

All recoveries from salaries and wages of deputations and payable to
their parent departments shall be credited to this account and the same
shall be debited on making the remittance to the respective
departments.

3420 Recoveries from Employees for Personal Computer Loan pending

remittances.

3430 Recoveries from employees for vehicle loan taken from outside agencies
pending remittances

3440 Recurring Deposits with Banks

80
 The deduction in respect of recurring deposits with banks made from
salaries and wages shall be credited to this account and on payment to
the banks this account shall be debited.

3450 Employees' Contribution Employees' State Insurance Scheme

Employees' contribution towards Employees' State Insurance Scheme as
and when deducted from salaries and wages shall be credited to this
account and when payment is made to the Employees' State Insurance
Authorities, the same shall be debited to this account.

3460 Company's Contribution Employees’ State Insurance Scheme

Company's contribution towards Employees' State Insurance Scheme
shall be credited to this account by debit to account code 7030 and
when payment is made to the Employees State Insurance authorities,
the same shall be debited to this account.

3470 Recoveries from employees pending remittance to Housing Development

Financial Corporation and other Housing Finance agencies

3480 BHEL Employees Housing Loan Group Insurance Scheme

The deductions made from salaries and wages of employees on account
of insurance premium towards this scheme will be credited to this
account and when payment is made to LIC, the same shall be debited to
this account.

3481 BHEL Employees – Vehicle Insurance

The deductions made from salaries and wages of employees on account
of vehicle insurance premium towards this scheme will be credited to
this account and when payment is made to Insurance Company, the same
shall be debited to this account.

3490 Other Recoveries from Pay

Recoveries other than those mentioned under account code 3300 to
3481 payable to outside agencies such as postal life insurance shall be
credited to this account and on payment this account shall be debited.

81
35 OTHER LIABILITIES

3510 Central Sales Tax

3520 State Sales Tax

3521 State Entry Tax

NOTE
Liabilities on account of sales tax payable to sales tax authorities shall
be credited to respective account and when payment is made the same
shall be debited to the concerned account. This will also include works
tax deducted from subcontractors.

3530 Other Taxes

This account code may be used to account for liabilities in respect of all
taxes other than those already listed under this group.

3540 Income Tax Deducted from Outside Parties

The amount of income tax deducted from the outside parties under
various sections of Income Tax Act shall be credited to this account and
when deposited with the Income Tax authorities, the same shall be
debited to this account.

3550 Deposits for Royalties from Contractors

The deposits received from contractors on account of royalties payable
to state governments or which are under dispute shall be credited to
this account and on settlement of account, this account shall be debited.

3560 Service Tax

The amount of Service Tax collected & payable to the Excise
Authorities on the value of services rendered shall be credited to this
account. When the amount is remitted to Excise Authorities, the same
shall be debited to this account.

3570 Receipts from Customer pending Allocation/Adjustment

3580 Sundry Receipts Pending Disbursement/Adjustment to Employees

3590 Sundry Receipts Pending Disbursement/Adjustment to Outside Parties.

82
 NOTE
Liabilities on account of receipts from outside agencies payable to
employees of the company or other agencies and which are not
mentioned under account codes 3510 to 3560 shall be credited to code
3580 or 3590 as the case may be and on making payment/adjustment
these accounts shall be debited.

83
36 PROVISIONS

3600 Provision for retirement benefits - EL/NEL

3601 Provision for retirement benefits - HPL

3602 Provision for retirement benefits Post Retired Medical Benefits

NOTE
The provision created for retirement benefits as per actuarial valuation
shall be credited to account code from 3600 to 3602 by debit to
respective expenditure account codes.

3610 Provision for Contractual Obligations

The provision created for meeting the contractual obligations against
guarantee maintenance and after sale services shall be credited to this
account by debit to account code 9020 "Provision for Contractual
Obligations".

3620 Provision for Taxation

This account code shall be operated only by Corporate Office. The
amount of provision created for income tax shall be credited to this
account by debit to account code 8900.

3621 Provision for Taxation Abroad

This account shall be credited in respect of income tax payments abroad
by the concerned divisions by corresponding debit to account code 8910.

3622 Provision – Fringe Benefit Tax

3623 Provision for Wealth Tax

3640 Provision for Dividend

This account shall be operated only by Corporate Office. The amount of
provision on account of dividends payable to the shareholders shall be
credited to this account by debit to account code 9300 ‘Proposed
Dividend'.

84
3650 Corporate Dividend Tax
This account code shall be operated by Corporate Office only. The
amount of provisions on account of tax payable on the amount of
dividend payable to the shareholders shall be credited to this account by
debit to a/c code 9310 ‘Corporate Dividend Tax'.

3660 Provision for loss making contracts

Note: Refer narration under code head 9060

3670 Provision for nonmoving stock

3680 Provision – Inter unit Profit Element

3690 Provision Others

The amount of provision created for liabilities other than those
mentioned under account code 3610 to 3680 be credited to this account
by debit to account code 9080 “Provision for Other Items".

85
37 to 40 INTER DIVISION ACCOUNTS

3700 BHEL Consolidation

This code will be operated by Corporate Office only.

3710 Corporate Office

Note: At the end of the year, i.e. after final reconciliation meeting all
balances under codes 3710 and 4190 will be merged and shown under
code 3710 only.

3720 Hardwar Division

3730 Hyderabad Division

3740 Trichy Division

3750 Bhopal Division

3760 Central Foundry Forge Plant, Hardwar

3770 Jhansi Division

3790 Electronics Division Bangalore

3800 Industrial Valves Plant, Goindwal

3810 Industrial Systems Group, Bangalore

3820 Boiler Auxiliaries Plant, Ranipet

3830 Electro Porcelains Division, Bangalore

3840 Insulator Plant, Jagdishpur

3850 Power Sector (HQ), New Delhi

3860 Power Sector Northern Region, Noida

86
3870 Power Sector Southern Region, Chennai

3880 Power Sector Western Region, Nagpur

3890 Power Sector Eastern Region, Kolkata

3900 Transmission Business Group, Bhopal

3920 Heavy Equipment Repair Plant, Varanasi

3930 Project Engineering Management, Commercial and PM Group, New Delhi

3950 International Operations Division, New Delhi

3960 Corporate Research and Development Division, Hyderabad

3970 Centre for Technology Transfer, Hyderabad

3980 Industry Sector, New Delhi

3990 Components Fabrication Plant, Rudrapur

4000 EMRP Mumbai

4010 Regional Operations Division (HQ), New Delhi

4030 Regional Office, Chennai

4040 Regional Office, Mumbai

4050 Regional Office, Kolkata

4070 Centralised Stamping Unit Jagdishpur

These Inter Division account codes are intended to accommodate all the
transactions (other than those classified under account codes 0100 and
4190) between the divisions and between divisions and Corporate Office.
Balances under these accounts in the books of the divisions shall be

87
transferred to Corporate Office at the end of each accounting month/
quarter/ immediately after each inter division reconciliation meeting.

At the time of preparing the consolidated balance sheet, the inter

division balances with Corporate Office shall be set off with each other.

The inter division accounts will not be operated if the transactions are
below Rs.1000/ but this limit will not apply to personal claims and
purchases of non perishable items made on request. The Directors' fees
and expenses incurred by the Division shall be debited to A/c Code 3710
"Corporate Office". These accounts shall also accommodate the
transactions related to the Share of Expenses of Corporate Office,
Research & Development Division, Regional Operations Divisions,
Commercial Divisions and International Operations Division and other
Cost centres and Interest on Govt. loans/ Cash credits distributed to
the divisions as per procedure laid own by the Management from time to
time. These accounts inter alia will include the following items:

1. Inter Division Transfer of funds, excluding Share Capital and Govt.

Loans

2. Transfer of Fixed Assets in use

3. Transfer of Finished goods for Capital Work in another division

4. Transfer of Raw material and components, Stores and spares, semi

finished components, finished goods and services to be utilized for the
purpose of ultimate sale to the customers.

5. Payments made on behalf of other divisions: Whenever any

transactions are booked to these Interdivisions accounts, intimation
shall be passed on to the respective divisions including Corporate Office.
The monthly accounts for these transactions shall be sent to the
respective divisions within a week of the close of the month. The
concerned divisions will verify the same and send its acceptance within a
week of the receipts of the accounts.

In the case of Regional Operations Division, the following expenses

incurred by that division on behalf of other Divisions will be passed on to

88
the division concerned, although the amount involved is less than
Rs.1,000/:

1. Expenses on hiring of taxis on daily hire basis on behalf of employees'

of other divisions.

2. Entertainment expenses on customers or outside parties or

presentation of gift articles as per request of the other divisions.

3. Booking of hotel accommodation etc. as per request of other

divisions.

4. Expenditure on customs duty, clearance agency commission, Ocean

freight/ air freight/ Lorry Freight, payment to Port Trust authorities in
connection with imports, exports etc., on behalf of other divisions.

89
41 FUNDS TO AND FROM CORPORATE OFFICE UNDER
CENTRALISED CASH CREDIT, INCLUDING BANK
CONTROL ACCOUNTS

4110 Bank Control Account -State Bank of India

4120 Bank Control Account- Canara Bank

4130 Bank Control Account -Bank of Baroda

4140 Bank Control Account – Punjab National Bank

4150 Bank Control Account – HDFC Bank

4160 Bank Control Account – ICICI Bank

4170 Bank Control Account – CITI Bank

4180 Bank Control Account – IDBI Bank

Note: Any payments authorised on or deposits made with banks working

under the Centralised Cash Credit System shall be booked in the
respective Bank Control Accounts.

4190 Funds to & from Corporate Office under CCC

Under the Centralised Cash Credit Scheme, funds transferred to /from
the Bank at New Delhi by/ to the operating Divisions shall be booked to
this account. Each operating division on the basis of Bank Statement for
each accounting month (25th to 24th) shall debit or credit this account
by aggregate net amount for the transfer of funds by a corresponding
credit or debit to the respective Bank Control account under this
classification group. All collections from Customers will also be
transferred through this account.

Note: At the end of the year that is after final I.U Reconciliation
Meeting all balances under Codes 3710 & 4190 will be merged and shown
under Code 3710 only.

90
42 MISCELLANEOUS EXPENDITURE AND LOSSES / DEFERRED
TAX ASSETS /LIABILITIES

4210 Compensation under VRS

Balance in this account code will represent the compensation under VRS
carried over to the subsequent accounting period as per accounting
policy.

4220 Losses pending investigations

Any loss which could not be written off/adjusted during the year,
pending completion of investigation shall be debited to this account.

4230 Stock adjustment account Construction Stores

The discrepancies noticed during stock verification of construction
stores will be debited or credited to this account. As and when cleared,
as a result of reconciliation or sanction for write off from competent
authority, this account will be credited / debited.

4250 Deferred Tax Assets and Liabilities

The amount of tax effect on account of timing differences between
taxable income and accounting income for a period that originate in one
period and are capable of reversal in one or more subsequent periods
shall be booked to this account by corresponding debit/credit to account
code 8920 – Deferred Tax. This will be operated by Corporate Taxation
only. Balance under this code will be classified as Deferred Tax Asset or
Deferred Tax Liability, as the case may be.

4260 Unearned Finance Income

This account code will be used for assets given on finance lease after
1.4.2001. This code will be credited with the difference between the
Gross Receivable in lease (debited to code 1560) and the net investment
in the lease (credited to code 4350). At each date on which lease rentals
are due from the lessee, this code shall be debited with the amount of
finance income calculated in a manner so as to give a constant periodic
rate of return on the net investment in the lease by corresponding
credit to account code 4840.

4290 Balance as per Profit and Loss Account

91
After the preparation of Profit and Loss Account, the balance of Profit
and Loss Account, if loss, shall be transferred to this account at the
time of closing of accounts for the period. However, if there is a balance
under A/c code 0290 ‘Surplus as per Profit and Loss Account’ and is
more than the loss, then the loss shall be transferred to A/c Code 0290.
If there is a profit in any year, and is less than the balance under this
account, the profit amount will be adjusted to this account. If the profit
is more than the balance under this account, the net excess will be
transferred to A/c Code 0290.

92
43 INDIGENOUS SALES

4310 Sales Less Return (against Shop production)

When products are dispatched to the customers and are billed to them,
the value of invoice excluding excise duty shall be credited to this
account by corresponding debit to sundry debtors.

4311 Sales Less Return (against purchase resold within the same state)-
Indigenous
When products (Non BHEL items), procured from indigenous suppliers,
are directly dispatched to the customers within the same state as that
of suppliers and billed to them, the value of invoice shall be credited to
this account by corresponding debit to sundry debtors.

4312 Sales Less Return (against purchase resold not within the same state)-
Indigenous
When products (Non BHEL items), procured from indigenous suppliers,
are directly dispatched to the customers not within the same state as
that of suppliers and are billed to them, the value of invoice shall be
credited to this account by corresponding debit to sundry debtors.

4313 Sales Less Return (against purchase resold -Imported)

When products, procured from foreign suppliers, are directly
dispatched to the customers and are billed to them, the value of invoice
shall be credited to this account by corresponding debit to sundry
debtors.

4314 Sales Less Return (against purchase from Sister Units)

When products, procured from sister units, are directly dispatched to
the customers and are billed to them, the value of invoice shall be
credited to this account by corresponding debit to sundry debtors.

4320 PVC on Sales Less Return (against Shop production)

The price escalation claims raised against CH 4310 shall be credited to
this ac count by corresponding debit to sundry debtors.

93
4321 PVC on Sales less Return (against purchase resold within same state )-
Indigenous
Price escalation claims raised against CH 4311 shall be credited to this
account by corresponding debit to sundry debtors.

4322 PVC on Sales less Return (against purchase resold not within the same
state) -Indigenous
The price escalation claims raised against CH 4312 shall be credited to
this account by corresponding debit to sundry debtors.

4323 PVC on Sales less Return (against purchase resold -imported)

The price escalation claims raised against CH 4313 shall be credited to
this account by corresponding debit to sundry debtors.

4324 PVC on Sales less Return (against purchase from Sister Units)
The price escalation claims raised against CH 4314 shall be credited to
this account by corresponding debit to sundry debtors.

4350 Assets Given on Lease

This account code will be used for assets given on finance lease after
1.4.2001. This code shall be credited with the amount of fair value of
the lease asset or the present value of the lease payments, whichever is
lower

4390 Excise Duty

The excise duty billed to the customers shall be credited to this account
by a corresponding debit to sundry debtors.

NOTE
Any return of materials for such sales should be debited to concerned
Sales code by corresponding credit to sundry debtors. The provision for
short supplies, if any, shall be debited to the above concerned sales Code
account by credit to account code 1960-1965 "Provision Short Supplies".

94
44 PHYSICAL EXPORTS/DEEMED EXPORTS

4410 Sales Physical Export in foreign currency (against shop production)

4411 Sales Physical Export in foreign currency (against purchase resold-

Imported)
Export sale of non BHEL item, which were imported for supply to
customers

4412 Sales Physical Export in foreign currency (against Purchase Resold-

Indigenous)
Export sale of non BHEL item, which were purchased indigenously for
supply to customers

4413 Sales Physical Export in foreign currency (against Purchase from sister
Units)
Export sale of non BHEL item, which were purchased from sister units
for supply to customers

4414 Sales Physical Export in Indian Rs. (against shop production)

4415 Sales Physical Export in Indian Rs. (against Purchase Resold -Imported)
Export sale of non BHEL item, which were imported for supply to
customers

4416 Sales Physical Export in Indian Rs. (against Purchase Resold -Indigenous)
Export sale of non BHEL item, which were purchased indigenously for
supply to customers

4417 Sales Physical Export in Indian Rs. (against Purchase from sister units)
Export sale of non BHEL item, which were purchased from sister units
for supply to customers

NOTE
Income on sale of products or services against direct export orders to
customers in foreign countries shall be credited to concerned account on
billing by corresponding debit to sundry debtors.

95
4420 Dispatches to Customers – Physical Export in foreign currency (against
shop production)

4421 Dispatches to Customers Physical Export in foreign currency (against

Purchase Resold -Imported)
Dispatches to customers of non BHEL item, which were imported for
supply to customers

4422 Dispatches to Customers Physical Export in foreign currency (against

purchase resold – Indigenous)
Dispatches to customers of non BHEL item, which were purchased
indigenously for supply to customers

4423 Dispatches to Customers Physical Export in foreign currency (against

purchase from sister units)
Dispatches to customers of non BHEL item, which were purchased from
sister units for supply to customers

4424 Dispatches to Customers – Physical Export in Indian Rs. (against shop

production)

4425 Dispatches to Customers Physical Export in Indian Rs. (against Purchase

Resold -Imported)
Dispatches to customers of non BHEL item, which were imported for
supply to customers

4426 Dispatches to Customers Physical Export in Indian Rs.(against Purchase

Resold – Indigenous)
Dispatches to customers of non BHEL item, which were purchased
indigenously for supply to customers

4427 Dispatches to Customers Physical Exportin Indian Rs.(against Purchase

from sister units)
Dispatches to customers of non BHEL item, which were purchased from
sister units for supply to customers

NOTE
The above code shall be operated in respect of Income on sale of
products or services against direct export orders to customers in

96
 foreign countries when according to terms of the contract with the
customers, the customers are billed as and when, piecemeal dispatches
are made to them.

4430 PVC on Physical Export –in foreign currency (against shop production)
Against Sales booked under CH 4410

4431 PVC on Physical Export –in foreign currency (against purchase resold –
Imported) Against Sales booked under CH 4411

4432 PVC on Physical Export –in foreign currency (against purchase resold –
Imported) Against Sales booked under CH 4412

4433 PVC on Physical Export in foreign currency (against Purchase from sister
units) Against Sales booked under CH 4413

4434 PVC on Physical Export in Indian Rs.(against shop production) Against

Sales booked under CH 4414

4435 PVC on Physical Export in Indian Rs.(against Purchase Resold -Imported)

Sales booked under CH 4415

4436 PVC on Physical Export in Indian Rs. (against Purchase Resold Indigenous)
Against Sales booked under CH 4416

4437 PVC on Physical Export in Indian Rs. (against Purchase from sister Units)
Against Sales booked under CH 4417

4438 PVC on dispatches to Customers Physical Export – in foreign currency

(against shop production)Against Sales booked under CH 4420

4439 PVC on dispatches to customers Physical Export (against Purchase resold

Imported) Against Sales booked under CH 4421

4440 PVC on dispatches to customers Physical Export in foreign currency

(against Purchase Resold Indigenous)Against Sales booked under CH
4422

4441 PVC on dispatches to customers Physical Export in foreign currency

97
 (against Purchase from sister units)Against Sales booked under CH 4423

4442 PVC on dispatches to customers Physical export in Indian Rs. (against

shop production).Against Sales booked under CH 4424

4443 PVC on dispatches to customers Physical Export in Indian Rs. (against

Purchase Resold Imported)Against Sales booked under CH 4425

4444 PVC on dispatches to customers Physical Export in Indian Rs. (against

Purchase Resold Indigenous)Against Sales booked under CH 4426

4445 PVC on dispatches to customers Physical Export in Indian Rs. (against

Purchase from sister units)Against Sales booked under CH 4427

4450 Income from Erection and other Services – Exports (in foreign currency)

4451 Income from Erection and other Services – Exports in Indian Rs.

4455 Excise duty for goods exported in Indian Rs.

4460 Sales Deemed Export (against shop production)

4461 Sales Deemed Export (against Purchase Resold -Imported)

Deemed export to customers of non BHEL item, which were imported for
supply to customers

4462 Sales Deemed Export (against Purchase Resold -Indigenous)

Deemed export to customers of non BHEL item, which were purchased
indigenously for supply to customers

4463 Sales Deemed Export (against Purchase from sister units)

Deemed export to customers of non BHEL item, which were purchased
from sister units for supply to customers

NOTE:

98
 Income on sale of products or services to customers within India or to
Nepal and Afghanistan against free foreign exchange or against orders
for projects aided / financed by international financial agencies like
International Development Association, International Bank for
Reconstruction and Development, International Finance Corporation and
other affiliates of World Bank, UNO, Asian Development Bank etc.
(which are called Deemed Export) shall be credited to the above
concerned account on billing by corresponding debit to sundry debtors.

4470 Dispatches to Customers Deemed Export (against shop production)

4471 Dispatches to Customers Deemed Export – (against Purchase

Resold -Imported)
Dispatches to customers of non BHEL item, which were imported for
supply to customers

4472 Dispatches to Customers Deemed Export – (against Purchase Resold-

Indigenous)
Dispatches to customers of non BHEL item, which were purchased
indigenously for supply to customers

4473 Dispatches to Customers Deemed Export – (against Purchase from

sister units)
Dispatches to customers of non BHEL item, which were purchased from
sister units for supply to customers

NOTE:
The above code shall be operated in respect of Income on sale of
products or services within India or to Nepal and Afghanistan against
free foreign exchange or against orders for projects aided / financed by
international financial agencies like International Development
Association, International Bank for Reconstruction and Development,
International Finance Corporation and other affiliates of World Bank,
UNO, Asian Development Bank etc. (which are called Deemed Export)
when according to terms of the contract with the customers, the
customers are billed as and when, piecemeal dispatches are made to
them.

4480 PVC on Sales Deemed Export (against shop production) Against Sales

99
 booked under CH 4460

4481 PVC on Sales Deemed Export (against Purchase Resold Imported)

Against Sales booked under CH 4461

4482 PVC on Sales Deemed Export (against Purchase sold Indigenous)Against

Sales booked under CH 4462

4483 PVC on Sales Deemed Export (against Purchase from sister units)
Against Sales booked under CH 4463

4484 PVC on Dispatches to Customers Deemed Export( against shop

production)Against Sales booked under CH 4470

4485 PVC on Dispatches to Customers Deemed Export (against Purchase Resold

-Imported) Against Sales booked under CH 4471

4486 PVC on Dispatches to Customers – Deemed Export (against Purchase

Resold -Indigenous)Against Sales booked under CH 4472

4487 PVC on Dispatches to Customers – Deemed Export (against Purchase from

sister units) Against Sales booked under CH 4473

4490 Income from Erection and other Services Deemed Exports

4495 Excise duty

This Code will be operated only in case of deemed exports where billing
on customers on account of excise duty is admissible and is done and the
rebate of excise duty admissible is to be claimed by the customers.

100
45 DISPATCHES TO CUSTOMERS INDIGENOUS

4510 Dispatches less return (against shop production)

When according to the terms of the contract with the customers
piecemeal dispatches are billed to them, value of such dispatches shall
be credited to this account by corresponding debit to sundry debtors.

4511 Dispatches Less Return (against Purchase Resold within the same State -
Indigenous)
In case of billing to customers on piecemeal dispatches as per terms of
contract, products, procured from indigenous suppliers, are directly
dispatched to the customers within the same state as that of suppliers
and billed to them; the value of invoice shall be credited to this account
by corresponding debit to sundry debtors.

4512 Dispatches Less Return (against Purchase Resold not within the same
State –Indigenous)
In case of billing to customers on piecemeal dispatches as per terms of
contract, products, procured from foreign suppliers, are directly
dispatched to the customers not within the same State as that of
suppliers and billed to them, the value of invoice shall be credited to this
account by corresponding debit to sundry debtors.

4513 Dispatches Less Return (against Purchase Resold -Imported).

In case of billing to customers on piecemeal dispatches as per terms of
contract, products, procured from indigenous suppliers, are directly
dispatched to the customers and billed to them; the value of invoice
shall be credited to this account by corresponding debit to sundry
debtors.

4514 Dispatches Less Return (against Purchase from Sister Units)

In case of billing to customers on piecemeal dispatches as per terms of
contract, products, procured from sister units shall be credited to this
account by corresponding debit to sundry debtors.

4520 PVC on Dispatches Less Return (against shop production) against CH

4510

101
4521 PVC on Dispatches Less Return (against Purchase Resold within same
state Indigenous) Against Sales booked under CH 4511

4522 PVC on Dispatches Less Return (against Purchase Resold not within same
state Indigenous) Against Sales booked under CH 4512

4523 PVC on Dispatches Less Return (against Purchase Resold Imported)

Against Sales booked under CH 4513

4524 PVC on Dispatches Less Return (against purchase from Sister Units)
Against Sales booked under CH 4514

4580 Revenue from Works contracts Supply Portion

In the case of works contracts, when according to the terms of the
contract with the customers, the supplies of equipment etc. are billed to
the customers based on the piecemeal dispatches the amounts so billed
for will be credited to this account. The balance portion pertaining to
erection etc. will be credited to code 4620 'Revenues form works
Contracts Erection Portion'. Even where billing is not done on the basis
of dispatches, contract value will be split up on some rational basis
notionally to arrive at value attributable to supply and Erection portions.
Income attributable to supply portion will be booked to this account
based on the quantum of supplies made.

4590 Excise Duty

The excise duty billed to the customers shall be credited to this account
by a corresponding debit to sundry debtors.

102
46 INCOME FROM ERECTION AND OTHER SERVICES

4610 Income from Erection Contracts

4620 Revenues from Works Contracts Erection Portion

4630 PVC claims on income from Erection and other services

4640 Service Tax from Erection and other services

The amount of Service Tax which is billed to the customer on the value
of services shall be credited to this account by a corresponding debit to
Sundry Debtors.

4641 Service Tax from repair works

4650 Income from Erection Supervision Contracts

4660 Income from Maintenance, Repairs and Rectification Jobs

4670 Income from Testing and other Miscellaneous Services

4690 Income from Consultancy Services

103
47 INCOME FROM INTEREST AND DIVIDENDS

4700 Interest received – Bank

Interest received or accrued from banks for short term deposits, time
deposits, etc. shall be credited to this account.

4710 Interest received – Employees- Housing

Interest received or accrued from the employees for the loans given to
them for the construction of house etc. shall be credited to this
account.

4711 Interest received – Employees - Motor Car

Interest received or accrued from the employees for the loans given to
them for purchase of Motor Car, Scooter, etc. shall be credited to this
account.

4712 Interest received – Employees - Scooter / Cycle etc.

Interest received or accrued from the employees for the loans given to
them for purchase of Scooter, Cycle, etc. shall be credited to this
account.

4720 Interest received Customers

This code shall accommodate Interest received or accrued on account of
delay in payment from Customer.

4721 Interest received – Vendors/ subcontractors

The interest received from vendors / sub contractors in respect of
advance payment made to them shall be booked in this code.

4722 Interest received – Others

This account shall bear credit for all items of interest received or
accrued on investments, loans, etc. which cannot be credited to any
other code in 47 Group.

4740 Interest received on Loans to Public Sector Undertakings

4750 Interest received on completion of Income Tax Assessment

4751 Interest received on completion of Tax Assessment -FBT

104
4752 Interest received on completion of Assessment -Other than Income Tax

4760 Interest received or accrued on Investments in Public Sector Bonds/

Government Securities/Other Long Term/Short Term Investments

4770 Interest on Debts deferred under Special arrangement

When interest amount is received on debts deferred under Special
arrangement (respective Debtors Code is to be booked) this code is to
be operated.

4780 Dividends received (or accrued) from Companies/ Joint Ventures

4781 Dividends received (or accrued) from Mutual Funds

4782 Dividends received (or accrued) from Other Institutions

4790 Capital Gains from Companies

4791 Capital Gains from Mutual Funds

4792 Capital Gains from Other Institutions

105
48 OTHER REVENUES

4800 Excise Duty on scrap sales

4810 Contribution Revenue towards Research and Development Projects

financed by Government and other outside Agencies.
The proportion of expenditure on staff, office expenditure and
contingencies etc. booked to natural heads of account but which have to
be met out of aid received for R&D Projects from Govt. Of India or
other outside agencies, as per the terms of relevant sanction issued by
Government of India or agreement with Government or other outside
agencies aiding the projects, will be credited to this account by
corresponding debit to account Code 2840 -"Deposits for R & D Projects
Financed by Government and Other Outside Agencies".

4820 Rental income on Leased assets Locomotives

Any amount of rent received/receivable on leased assets (locomotive)
including interest on delayed payment of lease rentals shall be credited
to this account.

4821 Rental income on Leased assets Others

Any amount of rent received/receivable on leased assets (other than
locomotive) including interest on delayed payment of lease rentals shall
be credited to this account.

4830 Lease Equalisation Account Locomotives

Against lease rental income booked in a/c code 4820, a matching annual
charge is made to profit & loss account. The said annual charge is
calculated by deducting the amount of finance income for the period
from the amount of lease rental for that period. This account code shall
be debited/ credited with the difference between the amount of annual
charge and the amount of depreciation on leased assets as per our
accounting policy no. 6, with a corresponding credit/debit to account
code 1000,1001 in Group 10 - Lease Adjustment Account' as the case
may be. The amount standing in this code shall be transferred every year
to Schedule 13B (forming part of profit & loss account) and disclosed
separately as deduction from/addition to the amount of 'Rental income
on leased Assets-Locomotives-4820'

106
4831 Lease Equalisation Account Others
Against lease rental income booked in a/c code 4821, a matching annual
charge is made to profit & loss account. The said annual charge is
calculated by deducting the amount of finance income for the period
from the amount of lease rental for that period. This account code shall
be debited/ credited with the difference between the amount of annual
charge and the amount of depreciation on leased assets as per our
accounting policy no. 6, with a corresponding credit/debit to account
code 1000,1001 in Group 10 - Lease Adjustment Account' as the case
may be. The amount standing in this code shall be transferred every year
to Schedule 13B (forming part of profit & loss account) and disclosed
separately as deduction from/addition to the amount of 'Rental income
on leased Assets-Locomotives-4821'

4840 Finance Income on Assets Given on Finance Lease

This account code will be used for assets given on finance lease after
1.4.2001. Lease rentals receivable will be apportioned between
repayment of principal and Finance Income. The amount of ‘Finance
Income’ so calculated shall be booked to this account by corresponding
debit to account code 4260 in Group 42.

4850 Scrap Sales

The value realisable on sale of scrap shall be credited to this account by
corresponding debit to account code 1871.

4860 Excise Duty rebate on Exports

The amounts received/accrued from the Central Excise authorities as
rebate of excise duty paid on physical exports of finished goods
whenever excise duty has initially been paid under claim for rebate or
from JCCIE (CLA)/ RLD (Regional Licensing Authorities) as
supplementary cash assistance on Deemed Exports' (see narration in
group 44 "Exports") shall be credited to this account.

4870 Duty Drawback on Exports

Any amount of duty drawback (tariff concession) on exports claimed and
received/accrued at the rates approved by Government or accepted by
the customs authorities shall be credited to this account.

107
4880 Royalty Income
Royalty received from Joint Venture Companies or from any
foreign/indigenous parties under the terms of Collaboration agreement
shall be booked to this account.

4890 Freight & Insurance Income

The amount of freight & Insurance billable to the customers, not in the
nature of reimbursement of actual expenses incurred in respect of Non
AS 7 (R) contracts, are to be booked in this code.

4891 Bonus & ORC Receipt -Customer

Bonus received for execution of contracts ahead of scheduled dates and
over run charges from customers shall also be credited to this head.

4892 Revenue -Others

Income like cost of tools recovered, cost of materials recovered from
contractors or subcontractors, repair charges recovered from suppliers
or any other income connected with the normal operations and not
specifically covered under classification group 43 to 46 and codes 4810
to 4891 shall be credited to this account.

108
49 INTER DIVISION TRANSFER OUT

4900 Exports/ Deemed Exports

4910 Raw Materials and Components

4920 Stores and Consumable Spares

4930 Semi Finished Goods (WIP) & Finished Goods

4940 Excise Duty on Exports/ Deemed Exports

4950 Excise Duty

4960 Spares for Sale

4970 Scrap

4980 Services Engineering and Erection & Commissioning

4990 PVC on Exports/Deemed Exports

109
50 COST OF JOBS DONE FOR INTERNAL USE

5010 Cost of Jobs done for Division's Internal use -Other than Intangible
Assets.

5020 Cost of Jobs done for Sister Division's Internal use -Other than
Intangible assets

5030 Cost of Jobs done for Internal use Intangible assets Development
The value of Expenditure in the nature of development will be credited
with corresponding debit to assets code. Expenses for capitalization of
Intangible asset may be considered as per guidelines issued on AS-26 in
this regard

5050 Cost of Jobs done for Internal use Intangible assets -Other than
Development.
Expenses incurred in the research phase as well as development phase
where the development cost of the project cannot be distinguished shall
be credited in this account with corresponding debit in 85 Group.

5090 Excise Duty on jobs done for sister Divisions.

110
51 ACCRETION TO WIP, FINISHED GOODS AND OTHERS

5110 Work in Progress -Opening Stock

5120 Work in Progress -Closing Stock

5130 Finished Goods -Opening Stock

5140 Finished Goods -Closing Stock

5150 Finished Goods with Customers -Opening Stock

5160 Finished Goods with Customers -Closing Stock

5170 Scrap -Opening Stock

5180 Scrap -Closing Stock

5190 Inter Division Transfer in Transit (Net)

111
52 RECEIPTS FROM TOWNSHIP

5210 Rent Receipts -Employees

5211 Rent Receipts -Other than Employees

5220 Water Charges Recovered -Employees

5221 Water Charges Recovered – Other than Employees

5222 Conservancy Charges Recovered -Employees

5223 Conservancy Charges Recovered -Other than Employees

5224 Horticulture Charges Recovered -Employees

5225 Horticulture Charges Recovered – Other than Employees

5230 Electricity Charges Recovered -Employees

5231 Electricity Charges Recovered -Other than Employees

5250 Hospital Receipts-Employees

5251 Hospital Receipts -Other than Employees

5270 School Receipts -Employees

5271 School Receipts – Other than Employees

5280 Subsidised Transport Receipts -Employees

5281 Subsidised Transport Receipts – Other than Employees

5290 Guest House Receipts -Employees

5291 Guest House Receipts – Other than Employees

5292 Other Sundry Receipts -Employees

112
 Recoveries on account of household breakages, swimming pool charges,
license fees for dogs and other pet animals, mobile shops etc., and such
other receipts relating to social benefits which are not covered under
account code 5200 to 5290 shall be credited to this account

5293 Other Sundry Receipts -Other than Employees

Recoveries on account of household breakages, swimming pool charges,
license fees for dogs and other pet animals, mobile shops etc., and such
other receipts relating to social benefits which are not covered under
account code 5200 to 5291 shall be credited to this account

113
53 MISCELLANEOUS INCOME

5310 Prior Period Income -Turnover

5311 Prior Period Income -Other Operational Income

5312 Prior Period Income -Other Income

5313 Prior Period Income -Interest

NOTE:
Only those items of income which qualify as “Prior period items” in terms
of ‘AS5’ as prescribed by ICAI are to be booked to this account code.
As per AS5 – ‘Prior period items’ refer only to income or expenses which
arise in the current period as a result of errors or omissions in the
preparation of the financial statements of one or more period. Only
individual items of income exceeding Rs. One lakh are to be booked as
‘prior period items’ to these account codes.

5330 Receipts from Sale of Surplus Stock

Sale proceeds of surplus materials and stores shall be credited to this
account.

5340 Vehicle Hire Charges – Recovered

Receipts from employees or any other outside party on account of hire
of transport vehicles, such as staff cars, jeeps, trucks, buses etc., shall
be credited to this account.

5350 Receipts from Transfer of Surplus Stock

In case of use of materials declared as surplus and charged off to
revenue in an earlier year, the value of such materials shall be credited
to this head by debit to code 6150 or 6240 as the case may be.

5360 Gain on sale of Bonds /Debentures /Other Financial Instruments etc.

All gains on sale/disposal of bonds/debentures/other financial
instruments etc. Shall be credited to this account. The loss on the above
should be taken to a/c code 8370.
Note: This account code will be operated by Corporate office only.

114
5370 Contributions received towards Provident Fund, Gratuity, and Leave Salary
From Government/ Outside Organizations.
Contributions towards provident fund, gratuity, leave salary etc.
Received/ accrued from Government or outside organization in respect
of services of BHEL employees lent by the Company will be credited to
this account. Lump sum payments received from Government of India or
other organizations towards contributions on account of leave salary
when the employees of Government or other organization, initially on
deputation with BHEL are subsequently absorbed permanently in the
company, will also be credited to this account.

5380 Recovery from supplier/contractor towards – Penalty

Penalties/ Liquidated Damages recovered from suppliers/contractors for
late delivery are to be booked to this code.

5390 Receipts – Under RTI Act.

Fees for obtaining information under Right To Information Act are to be
booked in this code.

5391 Other Sundry Receipts (Taxable under Service Tax)

5392 Other Sundry receipts – (Not Taxable under Service Tax)

Note: Other Sundry Receipts

Receipts on account of identity cards lost, cost of lost tools kits,
furniture hire charges, unpaid salaries and wages outstanding for more
than 3 years, unrefunded Earnest money deposits outstanding for over
three years from the date of finalisation of the tenders due to
nonavailability etc. Of the concerned tenderer, cost of gate pass lost,
notice period pay, recovery of training expenses, punitive charges, hire
charges of concrete mixers and other construction equipments, sale of
empty gunny bags, old news papers and raddi paper, old and condemned
furniture and other small items of assets charged off to revenue, table
service collections from canteen, cost of library card lost, Projectors
and amplifiers hire charges, Postal order receipts with applications,
security deposit and earnest money forfeited, sale of tender documents
and other forms, excess cash, amounts of claims from suppliers

115
remaining unpaid for want of a claim for two years (for amounts not
exceeding Rs. 1000), three years (for amounts of Rs. 1000/ and above)
vide Para 7.1.2 of Stores Accounts Manual, Receipts from Insurance
Company on settlement of insurance claim etc. shall be credited to this
account.
Exception: The above provision regarding credit of salaries/ wages
remaining unpaid for more than three years to code 5391 "Other Sundry
Receipts" will not unpaid for more than three years to code 5391 "Other
Sundry Receipts" will not, however, be applicable in respect of BHEL
units in the State of Tamil Nadu, where such unpaid amounts will have to
be paid to the Tamil Nadu Labour Welfare Board for being credited to
the Tamil Nadu Labour Welfare Fund created in terms of the provisions
of the "Tamil Nadu Labour Welfare Fund Act, 1972", read with "The
Tamil Nadu Welfare Fund Rules, 1973" as amended from time to time.

116
54 PROVISION WRITTEN BACK AND ON OPERATING INCOME

5410 Withdrawal of provision for contractual obligation -on Account of usage

This account shall be operated when withdrawal is on account of usage of
provision. Actual expense incurred towards meeting contractual
obligation during the year are booked to natural head of account. At the
year end total expenses incurred towards warranty obligation shall be
credited to this account and to that extent provision will be created by
debiting account code

5411 Withdrawal of provision for contractual obligation -Natural withdrawal

other than above
This account shall be operated when withdrawal is on account of natural
withdrawal as per policy.

5420 Profit on the Sale of Fixed Assets

Any profit earned on the sale of fixed assets (including the amount of
any sale proceed in excess over the original cost) shall be credited to
this account. At the end of the accounting period, the balance under this
account shall be set off against the balance under the account code
9420 to establish the net profit or loss on sale of fixed assets.

5430 Profit on Sale of Capital Stores

Any amount received in excess of the book value of capital (or
construction) stores on sale will be booked to this account.

5434 Withdrawal of provision for Liquidated damage performance related– PS

5435 Withdrawal of provision for Liquidated damage performance related

SSBG

5436 Withdrawal of provision for Liquidated damage performance related – IS

5437 Withdrawal of provision for Liquidated damage performance related

ROD.

5438 Withdrawal of provision for Liquidated damage performance related

DIRECT ORDER

117
5439 Withdrawal of provision for Liquidated damage performance related
EXPORT.

5440 Withdrawal of provision for Liquidated damages for delay – PS

5441 Withdrawal of provision for Liquidated damages for delay - SSBG

5442 Withdrawal of provision for Liquidated damages for delay - I S

5443 Withdrawal of provision for Liquidated damages for delay - ROD

5444 Withdrawal of provision for Liquidated damages for delay -DIRECT

ORDER

5445 Withdrawal of provision for Liquidated damages for delay in supply –

EXPORT

5450 Withdrawal of provisions for doubtful loans and advances and Deposits

5460 Withdrawal of provision for loss making contracts

5470 Withdrawal of provision for nonmoving stock.

5480 Withdrawal of provision for other items.

5490 Withdrawal of provision for bad and doubtful debts –PS

5491 Withdrawal of provision for bad and doubtful debts SSBG

5492 Withdrawal of provision for bad and doubtful debts –I S

5493 Withdrawal of provision for bad and doubtful debts ROD

5494 Withdrawal of provision for bad and doubtful debts DIRECT ORDER

5495 Withdrawal of provision for bad and doubtful debts EXPORT

118
55 INTER DIVISION TRANSFER IN

5510 Direct Materials

5520 Indirect Materials

5530 Semi Finished Goods (WIP) and Finished Goods

5540 Services

5550 Research & Development

5560 Spares for sale

5570 Scrap

NOTE:
The cost of Materials and Services received from other divisions of the
company shall be booked to respective account under this classification
group directly or on clearance from account code 1780, as the case may
be. Any incidental charges shall not be debited to these accounts. For
the purpose of absorbing the incidentals for adjustments in ‘Priced
Stores Ledger’, the element of percentage addition shall be included in
the pricing and shall be transacted in the cost ledger only. However, the
excise duty portion will be responded under the relevant code. The
CENVAT on Transfer in will be adjusted through account code 6010.
The fixed assets, finished goods and services received for capital works
shall not be transacted through these accounts.

5580 Transfer in Transit

The net amount of increase or decrease in the Inter Division transfer in
transit will be booked at the end of the financial year to this account by
corresponding entry to account code 5190.

NOTE:
At the time of consolidation of accounts, the total amount booked under
classification group 49 – ‘Inter Division Transfer Out’ should be equal to
the total of group 55 – ‘Inter Division Transfer In’.

119
56, 57 PURCHASES – FOREIGN

5610 Vendors’ Invoice – FOB

5620 Air Freight

5630 Ocean Freight

5640 Vendors’ Invoice – C&F

5650 Local Agents Commission

5660 Insurance

5670 Vendors’ Invoice – CIF

5680 Bank Charges – Transit Interest

Transit Interest up to the date of crystallization, which forms part of
purchase cost, will be booked to this account. Overdue interest on LCs
will be booked to 86 & 87 group.

5681 Bank Charges – Others

5690 Customs Duty – Project Import

5691 Customs Duty – Merit

5710 Cargo Wharfage

Expenditure on cargo wharfage at sea ports, being in the nature of
compulsory charge on goods passing through Ports Trust area, will be a
normal purchase expense in the case of imported materials and will be
debited to this code.

5730 Handling charges at Port and Port Trust Charges

5740 Clearing Agents’ Commission

5750 Warehouse and Handling Charges on Foreign Air Cargo

120
5760 Other Expenses

5770 Railway Freight and Lorry Freight

5780 Transfer Adjustment – Foreign Purchases

5790 Price Variance

121
58 PURCHASES – INDIGENOUS

5820 Price Variance

The element of predetermined percentage added to the material cost
while pricing the receipt vouchers for raw materials and components and
stores and spare parts shall be credited to this account. After
accounting for the materials subsequent variation in value, if any, shall
be booked to this account if such variation per item of stores receipt
voucher does not exceed Rs.1,000/ or 10% of the basic cost, whichever
is less.

122
59 PURCHASES – INCIDENTALS

5910 Railway Freight

5920 Lorry Freight

5940 Siding and Other Charges to Railways

5950 Handling Charges to Contractors on Inward Consignments

5960 Insurance

5970 Port Trust Charges, Clearing Agents’ Charges, Ocean Freight, etc. on
Stores sent abroad for Construction/Erection in relation to Overseas
Turnkey Contracts

5980 Inspection Charges

Inspection Charges paid to outside agencies for inspection of inward
material shall be debited to this account

5990 Other Expenses

NOTE :Any net unabsorbed balance in group 58 and 59 at the close of
the year representing unabsorbed incidentals will be transferred to
consumption of raw materials and components and stores and spares
(group 61 & 62) in proportion to purchases by credit/debit to code 5820
– “Price Variance”.

123
60 PURCHASES CENVAT & VAT

6010 CENVAT & VAT Credit Relating to Excise Duty & Sales Tax element in
Transfer in.
Excise Duty & Sales Tax relating to Transfer in materials to the extent
to which it can be claimed under CENVAT / VAT Scheme, is to be
booked to this account by corresponding debit to Code 2520 to 2523 –
“CENVAT Credit Receivable Account”. This entry will be in addition to
the entry in 55 Group.
For the purpose of presentation in Annual Accounts, this will be grouped
with ‘61’.

124
61 CONSUMPTION OF DIRECT MATERIALS

6110 Stock at the commencement of the Year

6120 Purchases – Foreign

6130 Purchases – Indigenous

6150 Transfer to/from Construction/Surplus Stores

6160 Issues other than Manufacturing Items – Capital Works

6161 Issues other than Manufacturing Items – Revenue Works

6162 Surplus Stock Charged off

The value of surplus stock charged off with the approval of competent
authority will be credited to this code with debit to code 8320 –
“Surplus Stock Charged off”.

6163 Material issued against work related to warranty obligation

6170 Subcontract Jobs / Out Works

6180 Raw Materials and Components received on Loan

6190 Stock at the Close of the Year

125
62 CONSUMPTION OF STORES AND SPARES

6210 Stock at the commencement of the Year

Note: This account code shall be operated by the Units which are not on
ERP.

6220 Purchases – Foreign

6230 Purchases – Indigenous

6240 Purchases – Non stock items / Transfer to/from Construction/Surplus

stores.

6260 Issues – Other than Manufacturing Items

6261 Surplus Stock Charged off

The value of surplus stock charged off with the approval of competent
authority will be credited to this code with debit to code 8320 –
“Surplus Stock Charged off”.

6270 Sub Contract Jobs / Our Works

6280 Stores and Spares received on Loan

6290 Stock at the close of Year

126
63 EMPLOYEES REMUNERATION - EXECUTIVES

6310 Basic pay

6320 Dearness Allowance

6330 House Rent Allowance

6340 Transport Subsidy

6350 Interim Relief

6360 City Compensatory Allowance

6370 Adhoc Relief

6380 Education Allowance

6381 Night Snack Allowance

6382 Washing Allowance

6389 Other Allowances

Allowances like Non Family Allowance, General Manager Electricity
Allowance, Hindi Increment, Ex gratia Non Taxable etc., are to be
booked under this head.

6390 Payment under Plant Performance Scheme

The provisions made for the payments under 'Plant Performance
Scheme' to the employees at the end of the accounting period shall be
debited to the account codes 6390, 6490, 6590 by corresponding credit
to account code 3140 “Liability for Bonus, Special Incentive and Plant
Performance Payment ”. When payment is made against such provision,
the same shall be debited to account code 3140 TO 3145.

The salaries and allowances paid to executives of the company falling

under category 'E' shall be booked to the classification group under the
relevant accounts.

127
64 EMPLOYEES REMUNERATION - SUPERVISORS

6410 Basic pay

6420 Dearness Allowance

6430 House Rent Allowance

6440 Transport Subsidy

6450 Interim Relief

6460 City Compensatory Allowance

6470 Adhoc Relief

6480 Other Allowances – Education Allowance

6481 Other Allowances – Night Snack Allowance

6482 Other Allowances – Washing Allowance

6489 Other Allowances

Allowances like Mess allowance, Special PP, Hindi Increment, Exgratia
Non Taxable etc., are to be booked under this head

6490 Payment under Plant Performance Scheme

Note: The salaries and allowances paid to supervisors covered under
category 'S' shall be booked to this classification group under the
relevant accounts.

128
65 EMPLOYEES REMUNERATION – INDUSTRIAL WORKERS

6510 Basic pay

6520 Dearness Allowance

6530 House Rent Allowance

6540 Transport Subsidy

6550 Interim Relief

6560 City Compensatory Allowance

6570 Adhoc Relief

.
6580 Education Allowance

6581 Night Snack Allowance

6582 Washing Allowance

6589 Other Allowances

Allowances like Mess Allowance, Special PP, Hindi Increment, Exgratia
Non Taxable, Hazardous Allowance etc., are to be booked under this
head.

6590 Payment under Plant Performance Scheme

NOTE:
The salaries and allowances paid to workers covered under category 'A'
i.e. predominantly technical workers shall be debited to the relevant
accounts under this classification group.

The salaries and allowances paid to predominantly non technical persons

of the company falling under category ‘B’ shall also be debited to the
relevant accounts under this classification group

129
66 PAYMENT TO EXECUTIVES

6610 Bonus
The provision made for the payment of bonus to the employees under
the provisions of the Bonus Act at the end of the accounting period shall
be debited to this account by corresponding credit to account code
3140“Liability for Bonus, Special Incentive and Plant Performance
Payment ”. When payment is made against such provisions, the same shall
be debited to account code 3140 TO 3141.

6620 Special Incentives

Any amount paid in lieu of bonus, which is linked to performance against
MOU targets, to the employees who are not covered under The Payment
of Bonus Act shall be booked to this account.

6621 Payment under Incentive / Reward/ Cash Awards

All payments on account of incentive under Specific production incentive
schemes shall be debited to this account. This account shall also be used
to book cash awards for suggestions and inventions, cash award for
acquiring higher academic qualifications such as AMIE, ACA, AICWA,
ACS and other post graduate qualifications or any other special award
sanctioned by the management or periodical incentives given on special
occasions like BHEL Day.

6630 Rent Residential

Rent paid on account of residences leased by the company for the
executives of the company shall be debited to this account. Any rents
recovered from the executives/ employees occupying such residences at
the rates prescribed by the management shall also be credited to this
account.

6650 Leave Travel Assistance

6660 Leave Travel Concession

All payments on account of leave travel concession to employees under
leave travel concession rules of the company shall be debited to this
account.

6670 Leave –Encashment

130
Amount paid on account of encashment of leave to the employees under
the rules of the company shall be debited to this account. Liability
created at the year end for EEL/NEL/HPL will also be debited to this
account by credit to account code 314.

131
66 PAYMENT TO SUPERVISORS

6710 Bonus

6720 Special Incentive

6730 Overtime allowance/ Honorarium and other payments in lieu of overtime

allowance Supervisors
Overtime allowance paid to supervisors for working beyond the
prescribed hours of duty shall be debited to this account. Any
honorarium or lump sum payment made in lieu of overtime allowance shall
be debited to this account

6740 Payment under Incentive/ Reward Scheme/ Cash Award

6750 Leave Travel Assistance

6760 Leave Travel Concession

6770 Leave –Encashment

132
68 PAYMENT TO INDUSTRIAL WORKERS

6810 Bonus

6820 Special Incentive

6830 Overtime allowance/ Honorarium and other payments in lieu of overtime

allowance Industrial Workers and others
Overtime allowance paid to category 'A' employees for working beyond
the prescribed hours of duty shall be debited to this account. Overtime
allowance of paid to category 'B' employees for working beyond the
prescribed hours of duty shall be debited to this account.

6840 Payment under Incentive/ Reward Scheme/ Cash Award

All payments on account of incentive under specific production incentive
schemes shall be debited to this account.

6850 Leave Travel Assistance

6860 Leave Travel Concession

6870 Leave –Encashment

133
69 EMPLOYEES PAYMENT & COMPANY’S CONTRIBUTION TO
FUNDS

6900 Pension Fund

6910 Provident Fund

6920 Gratuity Fund

6928 Payments under Worker's Compensation Act

All payments made to employees on account of compensation under the
Workmen's Compensation Act shall be debited to this account.

6929 Other Funds

The amount of contribution to funds which are not covered under
account codes 6900 to 6970 and are not of welfare nature, shall be
booked to this account

6930 Payments to NMR/ Daily Rated Employees

6931 Payment to Fixed Tenure Employees

6940 Stipend to Others

Stipend paid to the trainees shall be debited to this account. Any
reimbursement of expenses under this head from State/ Central
Governments may be credited to this account.

6941 Stipend to NMR Employees

6942 Payment to Contract Workers

6950 Foreign Service contribution for Deputationist Pension and Leave Salary
All payments made by the Company to the lending departments in
respect of those employees who have come to BHEL on deputation under
the terms of their deputation towards leave salary and pension
contribution or for any other purpose shall be debited to this account.

134
6960 Payments under Voluntary Retirement Scheme
Lump sum payment made to employees on account of VRS shall be initially
debited to account code 4210 .Amount to be charged off
as per the accounting policy will be debited to this code by credit to
account code 4210.

6970 Leave Encashment – Actuarial Valuation

6980 Payment to PF Trust – All payments made to PF Trust for deficit of

interest income.

135
70 STAFF WELFARE EXPENSES

7000 Company's contribution to BHEL Group Savings Linked Insurance Scheme.

The amount of the contribution paid by the company will be debited to
this code and at the end of the year total amount under this code will be
exhibited in the Profit and Loss Account.

7010 Group Insurance Premium

The amount of premium paid by the Company to the Life Insurance
Corporation of India under the Group Insurance Scheme for all the
employees of the Company shall be debited to this account.

7020 Expenses on Sports Activities

All payments made to sports club shall be debited to this account,
besides the expenses directly incurred by the company on sports
activities in the Factory/ Township.

7021 Expenses on Cultural Activities

All payments towards grant to community centre, security staff
recreation club, ladies club, all other social and cultural organisations
shall be debited to this account, besides the expenses directly incurred
by the company on social and cultural activities in the Factory/Township.

7022 Expenses on Subsidy to Education Institutions

7023 Expenses on Other Employees' Welfare Organisations

7030 Company's Contribution to Employees' State Insurance Scheme

The amount of contribution made by the Company under the Employees'
State Insurance Scheme shall be booked to this account.

7040 Expenses on Canteen (Net)/ Canteen Subsidy

Net expenses incurred for the maintenance and running of departmental
canteen after deducting the receipts from such canteens and the
canteen subsidy given by the company shall be booked to this account.

7050 Expenditure on subsidised Transport (Net)

136
 All payments made to outside transport corporations for provision of
transport vehicles/ buses for staff shall be debited to this account and
the recoveries made from staff at concessional rates for use of such
vehicles/ buses shall be credited to this account. This account shall not
be debited with any expenses incurred for running company's own
vehicles towards transport of staff.

7060 Interest Subsidy on Housing Loans taken by employees from outside

Agencies.

7061 Interest Subsidy on Vehicle Loans taken by employees from outside

Agencies.

7062 Interest Subsidy on Other Loans taken by employees from outside

Agencies

7070 Administration/Inspection charges towards Provident Fund, Employees’

State Insurance Scheme, Employees' Deposit Linked Insurance Scheme
Etc.
Expenditure on purposes indicated in the description shall be debited to
this account.

7080 Expenditure on provision of safety/ Protective Items to Employees/ Site

Kit Allowance.
Expenditure on procurement and supply of all safety and protective
items to the company employees working in shops/stores etc. and at
erection and other sites shall be debited to this account

7090 Other Welfare Expenses – On Uniform (including stitching charges)

7091 Other Welfare Expenses – Festival Celebration Excluding Independence/

Republic Day

7092 Other Welfare Expenses – Gifts

7093 Other Welfare Expenses – Educational Assistance

7094 Other Welfare Expenses – Newspapers Reimbursement

137
7099 Other Welfare Expenses Others
All expenditure in connection with the maintenance of National Cadet
Corps, Independence/ Republic Day, special celebrations, silver jubilee
awards, expenditure on liveries and, maintenance of crèches, expenses
towards BHEL Share of Family Planning incentives (other than the
amounts recouped by State Governments) and all other Welfare
expenditure other than those mentioned under account code 7000 to
7098 shall be debited to this account. Amount incurred on the
maintenance of Holiday homes (including monthly rent thereof) as well as
the receipts from employees as booking charges shall also be booked to
this account.

138
71 MEDICAL EXPENSES

7110 Stock of Medical Stores at the Commencement of the year

7120 Purchases of Medical Stores

7130 Stock of Medical Stores at the close of the year

The codes 7110 to 7130 shall be operated by the divisions who are
running their own hospitals and dispensaries to work out the consumption
of medical stores but where medicines are directly purchased by
dispensary (not attached with a hospital) the entire purchase shall be
considered as consumed during the year (see narration below code
1620/1621 "Miscellaneous Stores").

7170 Medical Expenses – Reimbursement – Retired Employees

Reimbursement of medical treatment expenses to retired employees
under Medical Attendance rules shall be debited to this account.

7171 Payment to empanelled hospitals and doctors- Retd. Employees

Expenditure incurred on payment to panel hospitals for treatment of
retd. Employees under Medical Attendance rules shall be debited to this
account

7180 Medical Expenses Reimbursement – Employees (Hospitals).

Reimbursement of medical treatment expenses towards hospitalization
paid directly by employees under Medical Attendance rules shall be
debited to this account.

7181 Medical Expenses Reimbursement – Employees

Reimbursement of medical treatment expenses paid directly by
employees under Medical Attendance rules shall be debited to this
account

7182 Payment to empanelled hospitals and doctors -Employees

Expenditure incurred on payment to panel hospitals for treatment of
Employees under Medical Attendance rules shall be debited to this
account

139
7189 Medical Expenses – Actuarial Valuation
This head shall be debited with the amount of actuarial valuation on
RHES

7190 Other Expenses on Medical Facilities to Employees

Any expenses which are not of capital nature and which are specifically
incurred towards medical facilities to employees and which cannot be
booked to any of the other existing natural heads shall be debited to
this account.

140
72 POWER AND FUEL CHARGES

7220 Water Charges

7230 Power – Factory

7235 Power – Township

7240 Fuel Cost of LDO, HVO, LPG, etc.

7250 Fuel Cost of Coal

Note: Only manufacturing unit shall book above expenses heads

141
73 PAYMENTS TO COLLABORATORS–FOREIGN & INDIGENOUS

7310 Lump sum payments to Collaborators

7320 Charges for Special Engineering Assistance

7330 Charges for Deputation of Experts by Collaborators

7340 Documentation Charges

7350 Royalty

7360 Charges for Training

7370 Other Charges

7380 Income Tax on Payments to Collaborators

7390 Cess on Imported Technology

142
74 RENT, RATES AND TAXES

7410 Rent – Non residential

7420 Rent – Residential at Site

7430 Taxes and Fees on Vehicles

7440 Service Tax

7450 Taxes on Buildings and other Properties

7460 Statutory Inspection Fees for Boiler, Valves and Others.

7470 Excise duty on Non-BHEL turnover

Excise duty on dispatch of goods to customers to be booked under this
code.

7471 Excise duty on BHEL turnover direct dispatches to customers

7472 Excise duty on BHEL turnover other than direct dispatches to customers

7473 Excise duty claimable as export incentives/drawback

Excise duty claimable as export incentive / drawback shall be booked
under this code

7474 Excise duty-Job done for internal use (including sister unit)

7475 Excise duty on scrap sale

7476 Excise duty accrued on finished goods

This code shall be used for adjustment of excise duty element in finished
goods.

7477 Excise duty (others)

7480 Sales Tax and other Tax not recoverable from the Customers

7490 Others Rates and Taxes

143
75 INSURANCE

7510 Fire Insurance

The fire insurance premium paid on buildings, plant and machinery,
stocks etc., shall be debited to this account.

7530 Transit Insurance Outward Consignments

The insurance premium to be borne by the company on outward
consignments against sales including transit, storage cum erection
insurance shall be debited to this account.

7540 Export Insurance

The insurance premium paid to Export Credit Guarantee Corporation or
other Insurance companies to cover export risks, excluding transit
insurance, shall be debited to this account.

7550 Insurance premium paid against work related to warranty

7590 Other Insurance

The insurance premium paid for the insurance of cash in safe, cash in
transit, theft and burglary, fidelity guarantee, group personnel accident
insurance, special contingency policy and such other insurance which are
not covered under account codes 5660, 5960, 7000, 7510, 7530 & 7540
shall be debited to this account.

144
76 REPAIRS & MAINTENANCE

7610 Roads, Bridges and Culverts – Factory

7611 Roads, Bridges and Culverts – Township

7620 Buildings – Factory

7621 Buildings – Township

7630 Plant and Machinery Factory

7631 Plant & Machinery Township

7640 Electrical Installations – Factory

7641 Electrical Installations – Township

7650 Vehicles – Motor Car

7651 Vehicles – Other than Motor Car

7660 Construction/ Erection Equipment, Capital Tools and Tackles

7670 EDP and Software

7671 Other EDP related Equipments

7680 Drainage, Sewerage and Water Supply – Factory

7681 Drainage, Sewerage and Water Supply – Township

7690 Other Assets – Factory

7691 Other Assets – Township

7692 Reconditioning & Retrofitting – Material

7693 Reconditioning & Retrofitting – Others

145
 NOTE
All payments made to any outside agency for carrying out the repairs
and maintenance of assets of the company other than departmental
repairs and maintenance shall be collected under the classification group
according to the classification of assets. The expenditure on repairs of
assets charged off to revenue shall be debited to code 7690/7691. The
expenditure on the departmental repairs and maintenance shall be
booked to natural expenses account i.e. salary and wages under salary
and wages, material under material etc.
Note: This code shall be operated also to book the expenditure on
‘Repairs and Maintenance of construction tools and tackles’.

146
77 TRAVELLING EXPENSES

7710 Traveling Expenses -Inland (Other than Transfer & Training) – Air Fare
Airfare on travel – Inland (Other than Transfer & Training) should be
debited to this account.

7711 Traveling Expenses -Inland (Other than Transfer & Training) – Fare Other
than Air
Other fare on travel – Inland (Other than Transfer & Training) should
be debited to this account.

7712 Traveling Expenses -Inland (Other than Transfer & Training) – DA

Daily Allowance for the period of travel – Inland (Other than Transfer
& Training) should be debited to this account.

7713 Traveling Expenses -Inland (Other than Transfer & Training)-Hotel

Hotel expenses during the period of travel – Inland (Other than
Transfer & Training) should be debited to this account.

7714 Traveling Expenses -Inland (Other than Transfer & Training) –Conveyance
Conveyance expenses reimbursed for the period of tour Inland (Other
than Transfer & Training) should be debited to this account.

7715 Traveling Expenses -Inland (Other than Transfer & Training) – Others
Other expenses in connection with the tour which is not covered under
classification should be debited to this account.

7720 Traveling Expenses – Transfer – Air Fare

Airfare of travel on account of transfer & retirement are to be booked
under this account code.

7721 Traveling Expenses – Transfer – Fare other than Air Fare

Fare other than airfare of travel on account of transfer & retirement
are to be booked under this account code.

7722 Traveling Expenses – Transfer – DA

Daily allowance for the period of travel on account of transfer &
retirement are to be booked under this account code.

147
7723 Traveling Expenses – Transfer – Freight
Freight for carrying the household articles to be shifted on account of
transfer & retirement are to be booked under this account code.

7724 Traveling Expenses – Transfer – Disturbance Allowance / Transfer Grant

Any payment to the employee in the nature of disturbance allowance /
transfer grant on transfer are to be booked under this account code.

7725 Traveling Expenses – Transfer – Others

Any other expenses in relation to transfer traveling expenses, which is
not covered under any other classification, shall be debited to this
account.

7730 Traveling Expenses – Foreign – Fare in Foreign Currency

7731 Traveling Expenses – Foreign – Fare in Rupees

7732 Traveling Expenses – Foreign – DA in Foreign Currency

7733 Traveling Expenses – Foreign – DA in Rupees

7734 Traveling Expenses – Foreign – Others in Foreign Currency

7735 Traveling Expenses – Foreign – Others in Rupees

7740 Local Conveyance Charges

7750 Fixed Conveyance Charges Reimbursed

7760 Traveling Expenses Recruitment

7770 Traveling Expenses Seminars, Development courses and Training -Air Fare
Air fare paid on account of Seminars, Development courses and training
shall be booked under this account code.

7771 Traveling Expenses – Seminars, Development courses and Training – Fare

Other than Air Fare
Fare other than air fare paid on account of Seminars, Development
courses and training shall be booked under this account code.

148
7772 Traveling Expenses – Seminars, Development courses and Training – DA
Daily allowance for the period of tour on account of Seminars,
Development courses and training shall be booked under this account
code.

7773 Traveling Expenses – Seminars, Development courses and Training- Hotel

Hotel charges paid for the stay during the tour on account of Seminars,
Development courses and training shall be booked under this account
code.

7774 Traveling Expenses – Seminars, Development courses and Training -

Conveyance.
Conveyance paid for tour on account of Seminars, Development courses
and training shall be booked under this account code.

7775 Traveling Expenses – Seminars, Development courses and Training-Others

Other expenses, which are not covered under any other classification, on
account of Seminars, Development courses and training shall be booked
under this account code.

7780 Traveling Expenses Joint Committee for BHEL – Air Fare

7781 Traveling Expenses Joint Committee for BHEL – Fare other than Air
Fare.

7782 Traveling Expenses Joint Committee for BHEL – DA

7783 Traveling Expenses Joint Committee for BHEL – Hotel

7784 Traveling Expenses Joint Committee for BHEL – Conveyance

7785 Traveling Expenses Joint Committee for BHEL – Others

NOTE:
The expenses on account of traveling shall be booked to the respective
accounts. Account code 7740 is meant for collecting reimbursement of
local transport expenses incurred by the employees during their official
duties, account code 7750 is meant for the reimbursement of fixed

149
 conveyance charges paid to them as per the Company's Rules. Payment of
TA to the candidates attending interview for employment and traveling
expenses to external committee members attending interview for
recruitment or promotion shall also be booked to account code 7760.
Payment to TA to the members (other than employees) of Joint
Committee shall be debited to account code 7780. Particulars of
expenditure under 7730 “Traveling Expenses Foreign" shall be
maintained separately for purposes of Tax Audit.

7790 Site Daily Allowance

The site daily allowance paid to employees posted to sites in terms of
the Traveling Allowance Rules in the Personnel Manual will be debited to
this account.

7791 Foreign Site Allowance

150
78 SELLING EXPENSES

7810 Carriage outward -Inland Sales

7820 Carriage outward -Export Sales

7830 Demurrage and Wharfage

7840 Cash Discount Allowed

7850 Export Tendering Expenses

7860 Agency commission on export contracts

The amount of agency commission paid on export contracts during the
year shall be debited to this account.

7870 Carriage outward against work related to warranty

7880 Other Expenses Inland Sales

Cost of operating manuals supplied to the customers for various
equipments sold by BHEL, cost of tender documents purchased for inland
tenders and other miscellaneous selling expenses in connection with
inland sales which cannot be specifically booked to code 7530, 7810,
7830 and 7840 shall be booked to code '7880'.

7890 Other Expenses Export Sales

Any other miscellaneous expenses incurred in connection with exports
and which cannot be booked under codes 7540, 7820 to 7860 shall be
debited to code '7890'.

Note: The expenses on account of carriage on outward consignments

other than transit insurance booked under account code 7530 shall be
debited to this classification group. The discount given to the customers
for making prompt payments of the invoices within the stipulated period
shall be collected under account code 7840.

151
79 PUBLICITY & PUBLIC RELATIONS

7910 Advertisement for inviting Tenders

The cost of advertisement for inviting tenders in connection with the
civil construction and maintenance works, customer project related work,
purchase of materials, sale of surplus materials, scrap etc., shall be
debited to this account.

7920 Advertisement for Recruitment

The cost of advertisement for recruitment of personnel shall be debited
to this account.

7930 Advertisement for Sales Promotion and Publicity within India

Expenses incurred on institutional advertising, product advertising,
goodwill advertising and other advertisement within India shall be
debited to this head.

7940 Publication and Audio Visual

Expenses incurred in respect of institutional publications, product
publications, house journals and other publications, films, slide and sound
projections, other miscellaneous audio visual presentations and
photography shall be debited to this account.

7950 Advertisement for other Purposes

Advertisement charges other than those mentioned in account codes
7910 to 7940 and 7970 shall be debited to this account.

7960 Exhibitions and Stalls within India

Expenses incurred for domestic exhibitions including cost of preparation
of exhibits, models etc., cost of construction and maintenance of stalls,
rent of stalls, remuneration paid to casual salesman and other persons
employed for the purpose shall be debited to this account.

7970 Advertisement for Sales Promotion, Publicity and Exhibitions/Stalls

outside India.
Expenses incurred on institutional advertisements, product
advertisements, goodwill advertisements and other advertisements
abroad and overseas exhibitions including preparation of exhibits and

152
 models and other expenses as specified under code '7960' for such
exhibitions abroad shall be debited to this account.

7980 Press and Public Relations and Miscellaneous Expenses

All miscellaneous expenses incurred on press and public relations,
seminars, diaries, gift items, souvenirs and community activity shall be
debited to this account.

7990 Other Sales Promotion Expenses

All other expenses in connection with sales promotion, which are not
covered in account codes 7930 to 7980, may be booked under this head.

153
80 OFFICE EXPENSES

8000 Electronic Communication Expenses – Lease Line (including HVNET,

BHELNET, INTERNET, EMAIL etc.)
All expenses on lease line of HVNET, BHELNET, INTERNET, EMAIL and
other similar electronic communications shall be booked to this account.

8001 Electronic Communication Expenses – Other then Lease Line

All expenses on hire/rent/usage of HVNET, BHELNET, INTERNET,
EMAIL and other similar electronic communications shall be booked to
this account. Reimbursement of INTERNET charges to employees shall
also be debited to this account.

8010 Books, Journals and Periodicals

The cost of books, journals and periodical irrespective of their value
shall be debited to this account.

8020 Postage, Telegram and Telex charges, Courier services

All expenses of the above nature shall be booked to this account.

8030 Telephone Charges – Lease Line

All charges on account of Telephone and Fax and other service charges
on leased line in connection with use of telephones and Fax shall be
debited to this account. Deposits with Telecom Department for new
connections shall be adjusted to this account as and when the telephones
and Fax are installed.

8031 Telephone Charges – Other than Lease Line

All charges on account of Telephone and Fax and other service charges
like shifting, replacement of parts etc., in connection with use of
telephones and Fax shall be debited to this account. Deposits with
Telecom Department for new connections shall be adjusted to this
account as and when the telephones and Fax are installed.

8032 Telephone Charges – Reimbursement of mobile instrument

The reimbursement towards procurement of mobile instrument to
employees shall be debited to this account code.

154
8040 Printing and Stationery
The cost of printing and stationery at the time of incurrence shall be
debited to this account; cost of photo copying and computer consumables
like printer ribbon, floppy disk, etc., are to be booked under this head.
At the close of the financial year the value of stock of stationery stores
in hand shall be credited to this account by debit to account code 1620
/1621 – “Miscellaneous Stores”. In the case of small non manufacturing
divisions/offices which are not routing stationery through stationery
stores, the closing inventory adjustment will not be made.

8050 Running Cost of Transport Vehicles – Motor Car

The cost of all petrol, oil and lubricants used for the running of staff
cars, jeeps other than those used for materials handling shall be debited
to this account.

8051 Running Cost of Transport Vehicles – Other than Motor Car

The cost of all petrol, oil and lubricants used for the running of buses
etc., other than those used for materials handling and staff cars shall be
debited to this account.

8060 ISO Certification (including TA Expenses of Outside Auditors)

Expenditure incurred in getting ISO certification will be booked to this
account. Expenses on post certification audits will also be booked to this
account.

8070 Directors' Fee and Expenses

The expenditure incurred by divisions on account of Directors' fee and
expenses should be debited to code 3710.

8080 Legal Fees and Expenses

The amount of fees and all other expenses incurred in connection with
legal proceedings, referring the claims to arbitration, execution of
power of attorney etc., including the payment made to any sales tax or
income tax consultant shall be debited to this account.

8090 Other Professional Fees and Expenses – In Rupees

The amount of fees and all other expenses incurred in rupees for
consultancy or other services rendered by outside agencies shall be
debited to this account. Payments made towards salary and other

155
 charges relating to engagement of customs appraisers, shall be debited
to this account.

8091 Other Professional Fees and Expenses – Foreign Currency

The amount of fees and all other expenses incurred in foreign currency
for consultancy or other services rendered by outside agencies shall be
debited to this account. Payments made towards salary and other
charges relating to engagement of customs appraisers, shall be debited
to this account.

156
81-83 MISCELLANEOUS EXPENSES

8100 Audit Fees -In India

Audit fees to Statutory and Branch Auditors in India shall be debited to
this account.

8101 Audit Fees -Abroad

Audit fees to Auditors outside India shall be debited to this account

8102 Audit Expenses -In India

Reimbursement of traveling and out of pocket expenses to auditors in
India shall be debited to this account

8103 Audit Expenses -Abroad

Reimbursement of traveling and out of pocket expenses to auditors
outside India shall be debited to this account

8104 Payment to Auditors for Income Tax matters –In India

8105 Payment to Auditors for Income Tax matters -Abroad

8106 Payment to Auditors for Certification work –In India

8107 Payment to Auditors for Certification work –Abroad

8108 Payment to Auditors for Quarterly Limited Review

8109 Payment to Auditors for Other Professional Work –In India

8110 Payment to Auditors for Other Professional Work – Abroad

8111 Payment to Cost Auditors – Fees

8112 Payment to Cost Auditors – Expenses

8120 Subscription to Trade and Other Associations

157
 Any membership fees or subscriptions paid to trade and other
professional bodies, educational institutions etc., for availing of their
research programmes, seminars etc. shall be debited to this account.

8130 Expenditure on Seminars and Development courses and Training of

Employees – Outside Agency.
The fees paid to any institution or association or society for the purpose
of sending any employee to participate in the seminars conducted by
such organizations for the development of technical or other knowledge
shall be debited to this account. This will also include the cost of in
house courses and the honorarium paid to lecturers.

8131 Expenditure on Seminars and Development courses and Training of

Employees – In House

8140 Discount paid under IDBI and similar Bill Discounting Schemes

8150 Software Expenses

Expenses on software not eligible for capitalilisation shall be debited to
this code.

8160 Hire charges on Data Processing Machines and Computers

Hire charges and other onetime payment for the installation and
operation of data processing machines including computers shall be
debited to this account.

8161 Hire Charges – Motor Cars

Charges for hiring of cars due to shortage or nonavailability of staff
cars shall be debited to this account.

8162 Hire Charges – Other Vehicles

8163 Other Hire Charges

Hire charges incurred on hiring of plant and machinery, office
equipments, calculators, comptometers etc., shall be debited to this
account.

8180 Bank Charges in Connection with issue of Bank Guarantees

158
8181 Bank Charges – Letter of Credit

8182 Other Bank Charges

8185 Bank charges /Commission against performance guarantees

8186 Bank charges /Commission against guarantee pending due to extension of

work beyond contract period

8190 Brokerage/Commission on Borrowings

This account shall accommodate the expenditure on brokerage fees/
commission payable to the approved agents in respect of fixed deposits
etc., procured by them from the members of public.

8191 Expenditure in Connection with Issue of Debentures.

Stamp duty etc., payable in connection with the issue of debentures or
investments in Securities of Unit Trust of India etc., will be debited to
this code. This code will be operated by Corporate Office only.

8192 Guarantee Fee

This Account Code shall be operated to account for Guarantee fee
payable in respect of loans raised by corporate office and allocated to
division.

8200 Expenses on Environmental Protection & Pollution Control

Expenses on account of horticultural activities are also to be booked to
this code.

8210 Payments to Central Industrial Security Force and Other Security

Agencies
Payments made to Central Industrial Security Force and other outside
security agencies in connection with security arrangements within
factory/township/offices shall be debited to this account.

8220 Expenditure on Repairs and Maintenance of Assets not owned by the

Company.
All expenditure incurred on repairs to buildings leased by the company or
other assets not owned by the Company, for which the liability rests
with the company (including maintenance charges for vehicles and

159
 residential leased accommodation reimbursed to employees) shall be
debited to this account.

8240 Miscellaneous Expenses on opening and dismantling of Power

Projects /Repairs and Other sites
Expenditure incurred on freight, handling etc., incurred on transfer of
assets, tools and tackles etc., from one site to another and from
headquarters to site and vice versa, the expenses and dismantling of
temporary structures/construction and other assets, and the expenses
incurred at the time of setting up and dismantling of sites which cannot
be booked to any other natural expenses shall be debited to this
account.

Note: Expenditure on enabling works at sites like temporary roads

etc., is not to be charged off ab initio, but charged off over the life of
the Project.

8250 Donations
All donations paid with the approval of the Competent Authorities shall
be booked to this account. Certificate under Income Tax Act 80G may
be obtained from the Donee.

8260 Entertainment and Courtesy expenses

Expenses on entertainment and courtesy of the company's guests i.e.
customers, Govt. officials and other outsiders shall be debited to this
account. Fixed monthly reimbursement of entertainment expenses may
be booked under this head.

8270 Borrowing costs capitalised (relating to inventory)

This code shall be utilised for booking the amount of borrowing costs
capitalised relating to inventory by credit to account code 8610 or
account code 8620. The balance under this code shall be reckoned while
valuing work in progress by debiting code 1730 and crediting code 5120.

8280 Village Development and Social Expenses

Expenses incurred relating to Village Development as well as other social
expenses are to be booked under this code.

8285 Other expenses against work related to warranty

160
8290 Other Sundry Expenses
Any expense which is not specially covered under codes specified in
group 80, 81 and 83, codes 8200 to 8285 shall be debited to this
account. Brokerage charges paid on leasing of residential and
nonresidential accommodation by the Company shall be debited to this
account.

8310 Exchange variation – Corporate Allocation

Change in rupee liability of foreign currency payments arising out of
exchange rate variations and adjusted in terms of Accounting Policy will
be booked under this head.

8311 Exchange Variation – Others – Transaction

8312 Exchange Variation – Others – Translation

8320 Surplus Stock Charged Off

The surplus materials and stores which are declared as no longer
required with the approval of competent authority and after following
the prescribed procedure shall be charged off and debited to this
account by corresponding credit to account code 6160/6161 or 6260
"Issue Other than Manufacturing Items".

8330 Loss on Sale of Capital Stores

Any loss made on sale of capital (or construction) stores shall be booked
to this account, by credit to 1280 ‘Construction Stores'.

8340 Loss on Transfer of Stores to Division under Construction

Any difference between the book value of the stores and the actual
value, at which the stores are transferred to the divisions under
construction in terms of the policy to transfer such stores at cost or
market price whichever is lower, shall be debited to this account.

8350 Demurrage/Wharfage
Cargo Wharfage, being a purchase expense is booked under code '5710'.
Demurrage/wharfage charges incurred otherwise than in connection with
outward dispatches will be booked under code 8350.

161
8360 Liquidated Damages charged off -Due to Performance
All liquidated damages written off due to performance during the year,
after taking the approval of competent authority, shall be debited to
this account.

8361 Liquidated Damages charged off -Due to Delay in supply

All liquidated damages written off due to delay in supply during the year,
after taking the approval of competent authority, shall be debited to
this account.

8370 Loss on issue /sale/redemption of bonds/debentures/units

This code will be operated by Corporate Office only.

8380 Bad Debts Written off - Other than performance issue

All bad debts, loans and advances written off during the year after
obtaining the approval of the competent authority shall be debited to
this account by corresponding credit to respective account of sundry
debtors or loans or advances irrespective of the fact whether provisions
had been made or not in the earlier years. However, where provisions
had been made in the earlier year under code 1970-1975/ 2590 the
provisions so made will be simultaneously written back in the accounts by
debit to code 1970-1975/ 2590 and corresponding credit to code 5490-
5495/ 5450.

8381 Bad Debts Written off against performance issue

8390 Losses written off

Any loss of cash or property on account of theft, fire or any other
reason including claims not recoverable shall be debited to this account
after obtaining the approval of the competent authority for write off.

162
84 EXPENDITURE ON SUB-CONTRACTS

8410 Expenditure on Erection Sub Contracts

Expenditure on subcontracts at erection sites for carrying out portions
of erection work shall be debited to this account.

8420 Expenditure on Transport Sub Contracts

All expenditure on transport subcontracts at erection sites for carrying
materials from railway station/goods shed/lorry godown to site shall be
booked to this account.

8430 Expenditure on Sub Contracts for Engineering Services

All payments made to outside consultancy firms appointed as sub
contractors for preparation of designs, drawings, documents etc., shall
be debited to this account.

8431 Subcontracting – Hire Charges on erection and Other Equipments

8435 Expenses on sub-contract related to warranty work

8440 Expenditure on other Sub Contracts

All payments to Sub Contractors appointed for various other labour
oriented jobs or those which cannot be accommodated under codes 8410
to 8431 shall be debited to this account.

8450 Expenses on testing charges to outside agencies as per customers

specifications

8460 Expenses on subcontracts for repairs and maintenance and other service
jobs
Sub contract expenses relating to repair & maintenance of owned/taken
on lease assets of the company will be booked to 76 group.

8470 Charges on rework/ rectification/ modification at site

Any amount recovered by the customer from BHEL at the time of final
settlement of dues, in connection with expenditure incurred by him on
any rework/rectification/modification done on behalf of BHEL, based on
mutually agreed terms shall be booked to this code by crediting
respective code of Sundry Debtors under group 18 & 19.

163
 The expenditure incurred at site towards
rework/rectification/modification by BHEL shall also be booked under
this account code by the unit bearing the expenses.

8471 Charges on rework / rectification after supplies on warranty work

8472 Back charges by customer relating to warranty work

8490 Charges for Technical Experts in Foreign Currency– Other than

Collaborators

8491 Charges for Technical Experts in Rupees – Other than Collaborators

164
85 RESEARCH & DEVELOPMENT

8510 Payments to outside Agencies for Research and Development

All payments made to any outside agencies for carrying out research
work for the company shall be debited to this account.

8520 Materials for R & D Projects

Cost of all materials required for R & D Projects and which can be
consumed in the course of completion of the projects shall be debited to
this account.

8540 Grant in Aid of NHVDC Project (proportionate share)

All expenditure pertaining to Grant in Aid of NHVDC Project
(proportionate share) to be booked here. Code 9180 is being introduced
for interunit allocation of above expenditure.

8590 Other R & D Payments

All payments made in connection with Research and Development not
covered under other codes in this group shall be booked to this account.

165
86 & 87 INTEREST COST

8600 Borrowing Costs (Other than interest)

This account code shall be utilized to book borrowing costs (other than
interest) such as legal charges, brokerage, managers fees, stamp duty,
listing expenses, credit rating expenses, discount on issue of bonds, bank
guarantee commission, finance charges of assets acquired under financial
lease and other ancillary costs of the like nature.

8610 General Borrowing costs capitalised

This code shall be utilized for allocating the amount of general
borrowing costs relatable to qualifying assets by debiting respective
code of qualifying assets 8270 a/c.

8620 Specific Borrowing costs Capitalised

This code shall be utilized for allocating the amount of specific
borrowing costs relatable to qualifying assets by debiting respective
code of qualifying assets 8270 a/c.

8630 Interest on Deferred Credits on Purchases

The amount of interest on deferred credits on purchases paid or payable
to the suppliers during the year shall be debited to this account by a
corresponding credit to account code 3030 for interest accrued but not
due at the end of accounting period. On payment when due, account code
3030 shall be debited.

8640 Interest on delayed letters of Credit

8650 Interest on Public Deposits

The amount of interest payable on fixed deposits received from the
members of public under 'The Companies (Acceptance of Deposits)
Rules, 1975' shall be debited to this account. Any provision for interest
accrued on fixed deposits from public shall be debited to this account by
corresponding credit to code 3060 ‘Interest Accrued but not due on
Public Deposits' at the end of the financial year and on payment account
code 3060 shall be debited.

8660 Interest on Cash Credit -SBI

166
8661 Interest on Cash Credit -ICICI Bank

8662 Interest on Cash Credit -HDFC Bank

8663 Interest on Cash Credit -PNB

8664 Interest on Cash Credit -Other Banks

Note:
The amount of interest paid on cash credit obtained from banks by
hypothecation of stores and spare parts, raw materials, work in progress
and finished goods shall be debited to this account. Any provision for
interest accrued on cash credit account shall also be debited to this
account by corresponding credit to account code 3030' Interest
Accrued but not due on Deferred Credits and Other Loans' at the end
of the financial year and on payment, account code 3030 shall be
debited.

8670 Interest on Loans from Companies

This code is to be operated by Corporate Office only.

8680 Interest and Other Borrowing Costs allocated by Corporate Office

The Corporate Office shall periodically allocate the interest and other
borrowing costs to the divisions towards their share. On making such
allocations, Corporate Office shall credit to this account whereas the
divisions shall pass a corresponding debit to this account code in their
books. At the time of consolidation of accounts, this account shall be
paired off with each other and balance under this account shall be nil.

8690 Interest on debentures

This account code shall be operated only by Corporate Office.

The amount of interest payable shall be debited to this code. For

interest accrued and due the credit will go to code 0390 in respect of
debentures/bonds, code 0520 for Central Govt. loans and codes
0370/0550 for State Govt. loans. For interest accrued but not due the
credit will go to the respective code in group 30. On making payments
codes 0390, 0520 or 0370/0550 shall be debited as the case may be.

167
8691 Interest on bonds

8692 Interest on Other Financial Institutions

8693 Interest on Central Government Loans

8694 Interest on State Government Loans

8700 Interest on Foreign Loans from Financial Institutions

Interest on foreign loans, like loan from Morgan Guarantee Trust etc.,
paid or payable shall be debited under this code.

8701 Interest on Foreign Loans from Banks

8702 Interest on Foreign Loan on Packing Credit in Foreign currency

8703 Interest on Foreign Loans on External Commercial Borrowings

8710 Interest Payments on Completion of Assessment of Income Tax

8711 Interest payment on completion of fringe benefit tax assessment

8720 Penal Interest

Penal interest, levied by Statutory Authority or on account of delayed
payments under small scale and Ancillary Industries undertaking Act,
may be debited to this account.

8730 Interest on deferred sale

8740 Interest/Finance charges on equipment taken on loan/finance lease

8750 Interest on packing credit

8760 Interest on post shipment credit

NOTE:
The amount of interest paid to banks and other financial institutions for
packing credits, pre shipment credit and post shipment credits etc., shall
be debited to these accounts. The amount of interest accrued and due

168
 shall be debited to these accounts by credit to code 3030 and
0450/0469 respectively.

8770 Interest on Commercial Paper

8780 Interest on advances from customers

8790 Interest on other items

The amount of interest not covered by account code 8600 to 8780
including interest paid to Controller of Accounts, Ministry of Finance
(Dep’t. of Economic Affairs) (Formerly Accountant General, Central
Revenues) New Delhi on over due payments for imports made under
letter of authority given by the Central Government shall be debited to
this account. Any amount of interest so due but not paid shall also be
debited to this account by a corresponding credit to account code 3090
– ‘Liability for Expenses – Other Payments’. On payment, account code
3090 shall be debited to clear the liability.

169
88 DEPRECIATION ON FIXED ASSETS

8800 Depreciation on Assets Taken on Lease, whose written down value at the
beginning of the year is Rs. 10,000/ or less -Factory

8801 Depreciation on Assets Taken on Lease, whose written down value at the
beginning of the year is Rs. 10,000/ or less -Township

8810 Depreciation on Fixed Assets taken on lease -Factory

8811 Depreciation on Fixed Assets taken on lease -Township

8820 Depreciation on fixed assets costing more than Rs. 10,000/ and whose
written down value at the beginning of the year is Rs.10,000/ or less –
R&D Equipments procured for specific projects -Factory
Depreciation on assets costing more than Rs. 10,000/ and whose written
down value at the beginning of the year is Rs. 10,000/ or less, capitalised
under code 0850, shall be booked to this code by credit to code 1050.

8830 Depreciation on fixed assets costing more than Rs. 10,000/ and whose
written down value at the beginning of the year is Rs.10,000/ or less –
Non R & D

8840 Depreciation on Fixed Assets costing up to Rs. 10,000/ at the time of

Purchase – R&D

8850 Depreciation on Fixed Assets costing up to Rs. 10,000/ at the time of

purchase – Non R&D

8870 Depreciation on intangible assets

The amount of amortization calculated on intangible assets in accordance
with management’s policy and charged to accounting period shall be
debited to this account by credit to account code 1085 to 1099–
'Intangible Assets Accumulated Depreciation'.

8880 Depreciation on Leased Assets (Loco) -Factory

The amount of depreciation calculated on Loco given on lease in
accordance with management policy and charged to accounting period

170
 shall be debited to this account by credit to account code 0910 ' Assets
given on lease Accumulated Depreciation'.

8881 Depreciation on Leased Assets (Loco) Township

The amount of depreciation calculated on Loco given on lease in
accordance with management policy and charged to accounting period
shall be debited to this account by credit to account code 0911 ' Assets
given on lease Accumulated Depreciation'.

8882 Depreciation on Leased Assets ( Others) - Factory

The amount of depreciation calculated on others fixed assets given on
lease in accordance with management policy and charged to accounting
period shall be debited to this account by credit to account code 0910-
Assets given on lease –Accumulated Depreciation'.

8883 Depreciation on Leased Assets ( Others) -Township

The amount of depreciation calculated on others fixed assets given on
lease in accordance with management policy and charged to accounting
period shall be debited to this account by credit to account code 0911-
Assets given on lease –Accumulated Depreciation'.

8890 Depreciation on Fixed Assets – Factory

The amount of depreciation calculated on fixed assets located in
factory, other than Fixed assets costing up to Rs.10,000/ each, in
accordance with the Management Policy and charged to the accounting
period shall be debited to this account by credit to respective
accumulated depreciation accounts for fixed assets under classification
group 09, 10 and 11 – 'Fixed Assets Accumulated Depreciation'.

8891 Depreciation on Fixed Assets – Township

The amount of depreciation calculated on fixed assets located in
township other than Fixed assets costing up to Rs.10,000/ each, in
accordance with the Management Policy and charged to the accounting
period shall be debited to this account by credit to respective
accumulated depreciation accounts for fixed assets under classification
group 09, 10 and 11 – 'Fixed Assets Accumulated Depreciation'.

171
89 INCOME TAX

8900 Income Tax

The Income Tax paid on the income of the Company in accordance with
the provisions of the Income Tax Act, 1961 shall be debited to this
account.

8910 Income Tax paid abroad

Income Tax paid abroad shall be debited to this account.

8920 Deferred Tax

The amount of tax effect on account of timing differences between
taxable income and accounting income shall be booked to this account by
corresponding debit/credit to account code 4250 – Deferred Tax Assets
and Liabilities. This will be operated by Corporate Taxation only.

8930 Fringe Benefit Tax

To be operated by Corporate Taxation only.

8940 Wealth Tax

To be operated by Corporate Taxation only.

8950 Banking Transaction Tax

172
90 PROVISIONS

Provision for Bad and Doubtful Debts

The balances under sundry debtors shall be reviewed at the end of the
year and doubtful debts shall be provided for under this account by a
corresponding credit to account code 1970 to 1975 'Provision for Bad
and Doubtful Debts'.

9010 Provision for Bad and Doubtful Debts -PS

9011 Provision for Bad and Doubtful Debts – SSBG

9012 Provision for Bad and Doubtful Debts – IS

9013 Provision for Bad and Doubtful Debts -ROD

9014 Provision for Bad and Doubtful Debts -Direct Orders

9015 Provision for Bad and Doubtful Debts -Export

9020 Provision for Contractual Obligations

Any provision made for contractual obligations for the year shall be
debited to this account by a corresponding credit to account code 3610.

9030 Provision for Liquidated damages performance related –PS

9031 Provision for Liquidated damages performance related –SSBG

9032 Provision for Liquidated damages performance related –IS

9033 Provision for Liquidated damages performance related –ROD

9034 Provision for Liquidated performance related Direct Order

9035 Provision for Liquidated damages performance related –Exports order

9040 Provision for Liquidated damages for delay – PS

173
9041 Provision for Liquidated damages for delay – SSBG

9042 Provision for Liquidated damages for delay – IS

9043 Provision for Liquidated damages for delay – ROD

9044 Provision for Liquidated damages for delay - Direct Order

9045 Provision for Liquidated damages for delay – Exports order

9050 Provision for Doubtful Loans and Advances and deposits

The balances under loans and advances shall be reviewed at the end of
the year and doubtful loans and advances shall be provided for under
this account by a corresponding credit to account code 2590–' Provision
for Bad and Doubtful Loans and Advances'.

9060 Provision for loss making contracts

Provision for estimated loss where current estimates of cost and selling
price of a contract indicates loss may be created under this head with a
corresponding credit to code head 3660.

9070 Provision for non-moving stock

9080 Provision for other items

Any other provisions made which are not covered under account codes
9010 to 9070 shall be debited to this account code by a corresponding
credit to account code 3690.

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91 ALLOCATION OF EXPENDITURE

9110 Corporate Office, New Delhi

9120 Research and Development Division, Hyderabad

The amount under this account should be included in the informative
portion about R&D expenditure in the annual account.

9140 Regional Operations Division, New Delhi

9150 Power Sector Commercial Division

9160 International Operations Division, New Delhi.

9170 Industry Sector, New Delhi

NOTE:
The share of expenses of the Corporate Office, Services Divisions such
as Research and Development Division, Regional Operations Division,
Power Sector Commercial Division and Industry Sector shall be debited
to these accounts by the divisions bearing the expenditure and shall be
credited to these accounts by the allocating division. At the time of
consolidation, the debits in the above accounts will be set off against
the corresponding credits appearing in the same accounts in the books of
the allocating divisions.

9180 Contribution to TPG for NHVDC Project (Proportionate share)

9190 Inter Unit allocation of Income/Expenditure between units (Other than

cost centres)
This account shall accommodate all transfer of Miscellaneous expenses
incurred by one unit and transferred to other units at agreed terms
where common facilities are shared. On consolidation this code will show
nil balance as credit taken by one unit and corresponding debit towards
expenditure will be booked by the other units in the same code head.

175
92 RESERVES

9230 General Reserve

9240 Foreign Projects Reserve

Any appropriation made from the profits of the company during the year
of account on account of Foreign Projects Reserve shall be debited to
this account code by a corresponding credit to code 0260 – “Foreign
Projects Reserve Account”.

9270 Debentures/Bonds Redemption Reserve

176
93 DIVIDENDS

9300 Proposed Dividend Final

Any proposed appropriation from profits of the Company towards
payment of final dividends shall be debited to this account by
corresponding credit to account code 3640 'Provision Dividend'. This
account will be operated by Corporate Office only.

9301 Interim dividend

Any appropriation from profits of the Company towards payment of
interim dividends shall be debited to this account by corresponding
credit to account code 3640 'Provision Dividend'. This account will be
operated by Corporate Office only.

9310 Corporate Dividend Tax

This account code shall be operated by Corporate Office only. The
amount of provisions on account of tax payable on the amount of
dividend payable to the shareholders shall be debited to this account by
credit to account code 3650 ‘Provision Corporate Dividend Tax’.

177
94 NON-OPERATING / PRIOR PERIOD EXPENDITURE

Prior Period Expenses

Only those items of expenses which qualify as ‘Prior period items’ in
terms of ‘AS5’ as prescribed by ICAI are to be booked to this account
code. As per AS5 – ‘Prior period items’ refer only to income or expenses
which arise in the current period as a result of errors or omissions in the
preparation of the financial statements of one or more periods.

Only individual items of expenses exceeding Rs. One lakh are to be

booked as ‘prior period items’ to this account code.

9410 Prior Period Expenses- Consumption of Raw Materials & Components

9411 Prior Period Expenses- Employee’s Remuneration and Benefits

9412 Prior Period Expenses- Depreciation

9413 Prior Period Expenses-Payment to Subcontractors

9414 Prior Period Expenses- Interest

9415 Prior Period Expenses- Other Expenses

9420 Loss on Sale/ Discarding of Fixed Assets

Any loss occurred on the sale of fixed assets shall be debited to this
account. However, at the end of the accounting period, the balance
under this account shall be set off against the balance under account
code 5420 to establish the net profit or loss on sale/ discarding of fixed
assets; in case of profit the same shall be shown under account code
5420 otherwise under this account.

Transfer Entry for Provision of Tax, Dividend and other

items to/from Corporate Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9430 Provision for Doubtful Debts transferred to/from Corporate Office

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 to / from Corporate Office

9431 Provision for Liquidated Damages due to non performance transferred

to/from Corporate Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9432 Provision for Liquidated Damages due to delay in supply transferred

to/from Corporate Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9433 Provision for Loans & Advances transferred to/from Corporate Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9434 Provision for Contractual Obligation transferred to/from Corporate

Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9435 Provision for Loss Making Contract transferred to/from Corporate Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9436 Provision for Non Moving Stock transferred to/from Corporate Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9437 Provision for Income Tax transferred to/from Corporate Office

This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9438 Provision for Fringe Benefit Tax transferred to/from Corporate Office
This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9439 Interim Dividend transferred to/from Corporate Office

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 This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9440 Provision for Final Dividend transferred to/from Corporate Office

This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

9441 Provision for Others transferred to/from Corporate Office

This code head is to be used to transfer the effect of entries passed by
Corporate Office on behalf of other divisions for the above.

180