Overview of Finance Function of NTPC

By: R.C.Mukherjee Sr.Faculty Member, PMI

The Finance function is organised in three tiers: 1. Corporate Finance (SCOPE/Delhi &
EOC/NOIDA)

Organisation Structure of Finance

2. Regional Finance(NRHQ/Lucknow, ERHQ/ Patna, SRHQ/Hyderabad WRHQ/Mumbai and NCRHQ/NOIDA) 3. Site Finance(all projects and power

Corporate Finance Organisation Chart

Director(Finance) Executive Director(Finance) General Manager (Finance) AGM (Fin) General Manager (Finance) DGM (Fin) DGM (Fin) General Manager (Finance) AGM (Fin) DGM (Fin) General Manager (Finance) DGM (Fin) DGM (Fin)

DGM (Fin)

Several Sr.Mgr.(F) & Manager(F) report to each AGM/DGM. Below Sr.Mgr.(F)/M(F) are AAOs/Aos/Sr.Aos & Dy.Mgr.(F)s

Regional Finance Organisation Chart

GM/AGM(Finance)

Sr.Mgr. (Fin)

Mgr. (Fin)

Mgr. (Fin)

Dy. Mgr.(F)

Sr.AO

AO /AAO

Dy. Mgr.(F)

Sr.AO

AO /AAO

Sr. AO

AO /AAO

Project Finance Organisation Chart

DGM(Finance) / CFM

Sr.Mgr. (Fin)

Sr.Mgr. (Fin)

Mgr. (Fin)

Dy. Mgr.(F)

Sr.AO AO /AAO

Dy. Mgr.(F)

Sr.AO AO /AAO

Sr. AO

AO /AAO

Areas of Corporate Finance

Accounts and Audit

responsible for review of audited accounts of projects, regional offices, preparation & audit of unit accounts of Corporate offices, consolidation of NTPC accounts leading to NTPC B/S and P&L a/c and C&AG audit of the same
Treasury responsible for preparing cash/funds flow statement (daily/weekly etc.), investing

Areas of Corporate Finance

contd.
of banks, remittances to projects & regional offices Establishment responsible for payroll accounting and payment, payment of all employee entitlement claims like travelling allowance, LTC, medical bills, contingent expdt., HBA, car/two-wheeler advance, computer advance etc. Provident Fund(PF) responsible for employee PF deductions, employers contrn., filing returns with PF commissioner and maintenance of PF trust.

Areas of Corporate Finance

Internal Audit responsible for conduct of internal audit of all projects, regional offices and corporate offices. CA firms are short-listed for internal audit of projects & regional offices while NTPC Finance executives do the internal audit of corporate offices MIS responsible for preparation and submission of all MIS reports internal(to NTPC management) as well as external(Ministry of Power & Finance, CEA etc.)

contd.

Areas of Corporate Finance

Financial Concurrence responsible for financial vetting of cost estimates of work and purchase order proposals, financial vetting of comparative statements after tendering and financial concurrence of work/purchase order proposals Budget(Construction and O&M) responsible for review of project & region construction and operation and maintenance budget, preparation of capital and revenue budget of corporate offices, consolidation and submission of NTPC budget to Ministry of Power

contd.

Areas of Corporate Finance

contd.
International Finance responsible for arranging foreign syndicated loans, issue of bonds in foreign capital markets and forex risk management Commercial responsible for liaison with CERC for tariff fixation, liaison with SEBs for payments against our oustanding bills, debtors reconciliation, interface with coal cos. for fuel supply, fixation of financial terms etc.

Areas of Corporate Finance

Taxation responsible for income tax, service tax and sales tax assessment; issuance of circulars for important changes in taxation laws; attending court hearings Bonds responsible for issue and redemption of domestic bonds Investors Services deals with payment of dividend, all issues pwertaining to shareholders of equity shares of NTPC

contd.

Areas of Corporate Finance

contd. Company Secretariat

This section deals with holding of Board meetings of NTPC, holding of AGM of shareholders, Delegation of Powers and maintaining compliance to all clauses of the Companies Act relevant to NTPC

Areas of Project Finance

Accounts, Audit and Cash & Bank Establishment Budget Concurrence Commercial responsible for preparation and submission of data for energy billing and commercial reports

Areas of Project Finance contd. MIS

Stores Bills responsible for payment and accounting of suppliers bills against purchase orders and pricing of received materials for taking on stock Priced Stores Ledger responsible for inventory accounting opening & closing balances and receipt and issue of materials both in quantity and

Areas of Project Finance contd.

Works Bills responsible for payment and accounting of contractors bills against work orders based on measurement books certified by Engr.-in-charge and rates, terms award & conditions of Letter of

Areas of Regional Finance

Accounts, Audit and Cash & Bank Establishment Budget, Commercial and MIS Concurrence Works and Suppliers bills