Resultados del tratamiento de lavado a distintos tiempos

HOW THEY TAKE DECISIONS

 The only thing that is considered at the time of taking decisions  The only thing that is considered at the time of taking decisions

regarding fund raising is lower markup rates down because this is what regarding fund raising is lower markup rates down because this is what makes loans feasible or

makes loans feasible or otherwise.otherwise.

FINANCE DEPARTMENT SECTIONS FINANCE DEPARTMENT SECTIONS

MATERIAL MANAGEMENT FINANCE/LOGISTICS MATERIAL MANAGEMENT FINANCE/LOGISTICS

The logistics department comprises a part of the finance department. It is headed by The logistics department comprises a part of the finance department. It is headed by Mr.M. Hanif and further consist of a senior accoun

Mr.M. Hanif and further consist of a senior accounts officer, two junior executives andts officer, two junior executives and two accountants. The basic

two accountants. The basic task carried out by the persons working in task carried out by the persons working in the logisticsthe logistics section are:

section are:

•

• daily check on productiondaily check on production

•

• daily check on stock (materials and finished goods)daily check on stock (materials and finished goods)

•

• controlling the production plan for the controlling the production plan for the futurefuture

•

• control on orders in handcontrol on orders in hand

Materials imported by PEL basically remains in bank custody. The

Materials imported by PEL basically remains in bank custody. The bank makes paymentsbank makes payments for these materials to the foreign suppliers and releases them

for these materials to the foreign suppliers and releases them to PEL as per payments byto PEL as per payments by them. The bank further

them. The bank further higher higher mucaddam companies/clearing agents tmucaddam companies/clearing agents to watch over ando watch over and monitor these materials. The materials are generally store in PEL

monitor these materials. The materials are generally store in PEL premises. Materialpremises. Material requirement for appliances and power good manufacturing are different hence their  requirement for appliances and power good manufacturing are different hence their 

Finance

requisition are also different. PEL uses cash financing

requisition are also different. PEL uses cash financing and various other credit facilityand various other credit facility  provided by the bank.

 provided by the bank.

The basic cycle as follows:

The basic cycle as follows:

Raw materials are imported using the different financing facilities. Materials are then u Raw materials are imported using the different financing facilities. Materials are then u sese to make finished goods. The materials when enter the production cycle aa term as to make finished goods. The materials when enter the production cycle aa term as work-in-process (WIP). WIP is hypothecated and loans taken ag

in-process (WIP). WIP is hypothecated and loans taken against it. Then a portion of ainst it. Then a portion of  finished goods produced are further pledged and payments for raw materials is made finished goods produced are further pledged and payments for raw materials is made through it.

through it.

The whole procedure must be carried out in a timely way with correct information The whole procedure must be carried out in a timely way with correct information reaching at the right time from factory to material section,

reaching at the right time from factory to material section, so that materials may beso that materials may be requested and obtained at the right time without delay.

requested and obtained at the right time without delay.

The main documents included are:

The main documents included are:

•

• sales tax invoicesales tax invoice

•

•  pledge letter  pledge letter 

•

•  bill of export bill of export

•

• release documentrelease document

SALES TAX INVOICE SALES TAX INVOICE

The invoice document consist of

The invoice document consist of particulars of buyer and particulars of buyer and supplier ie; name, address,supplier ie; name, address,  phone number, net

 phone number, net tax inclusive value, lastly the person purchasing the tax inclusive value, lastly the person purchasing the materials requiredmaterials required to sign and specify his name and designation.

to sign and specify his name and designation.

PLEDGE LETTER  PLEDGE LETTER 

Pledge letter , this document is u

Pledge letter , this document is used to pledge material with the bank. sed to pledge material with the bank. Material whenMaterial when imported deposited at the bank. The pledge letter clarifies that goods are unencumbered imported deposited at the bank. The pledge letter clarifies that goods are unencumbered  property of the company. Detail of the

 property of the company. Detail of the goods ie; number of packages, goods ie; number of packages, type of commodity,type of commodity,  packing, rate and value are specified on this document.

 packing, rate and value are specified on this document.

BILL OF EXPORT BILL OF EXPORT

This is a transshipment permit also. The particulars included are

This is a transshipment permit also. The particulars included are consignor and consigneeconsignor and consignee name and address, the additional document attached. Mode of transport and of discharge, name and address, the additional document attached. Mode of transport and of discharge, number of packages, description of goods, per unit value and a number of other details.

number of packages, description of goods, per unit value and a number of other details.

The total detail add up to 66 for which separate sections are made on this document.

The total detail add up to 66 for which separate sections are made on this document.

RELEASE DOCUMENT RELEASE DOCUMENT

This document is basically a formal request to the bank to release goods that have been This document is basically a formal request to the bank to release goods that have been store by them. It contains the following particulars: materials, quantity, rate and v store by them. It contains the following particulars: materials, quantity, rate and v alue.alue.

Release may be of finished goods

Release may be of finished goods or raw-materials as per situation.or raw-materials as per situation.

CORPORA

CORPORATE TE FINANCEFINANCE

BANK GUARANTEE BANK GUARANTEE

PEL has guarantee dealings with a number of banks. Parties to a guarantee are as follows:

PEL has guarantee dealings with a number of banks. Parties to a guarantee are as follows:

•

the guarantee procedure is basically for big projects under taken by PEL for other asically for big projects under taken by PEL for other  companies. The guarantee is necessitated because the customer ie; other company feel companies. The guarantee is necessitated because the customer ie; other company feel more secure if a schedule bank intervenes in the dealing of these two parties and provides more secure if a schedule bank intervenes in the dealing of these two parties and provides additional surety of contract fulfillment. The period of validity of the gu

additional surety of contract fulfillment. The period of validity of the gu arantee is untilarantee is until the contract is fulfilled satisfactorily by PEL. It then expires. There is facility of date the contract is fulfilled satisfactorily by PEL. It then expires. There is facility of date extension in a guarantee also. The bank may not only extend the date up to which the extension in a guarantee also. The bank may not only extend the date up to which the guarantee is under taken, but also ‘enhancement facility is provided whereby the bank  guarantee is under taken, but also ‘enhancement facility is provided whereby the bank  increases the amount up to which the guarantee is taken. Bank charges commission for  increases the amount up to which the guarantee is taken. Bank charges commission for  these services which is 0.4% of the

these services which is 0.4% of the contract amount. Federal excise duty (FED) is chacontract amount. Federal excise duty (FED) is chargerge  by bank which is essentially government income.

 by bank which is essentially government income. The margin amount of 5% is refundedThe margin amount of 5% is refunded to PEL if the guarantee

to PEL if the guarantee expires without use. Guarantee may be of expires without use. Guarantee may be of the following types:the following types:

Mr Nadeem

•

•  performance bond performance bond

•

• advance paymentadvance payment

•

•  balance of payment balance of payment

•

• retention moneyretention money

TENDER BOND TENDER BOND Tender bond is taken

Tender bond is taken by the company when it is placing by the company when it is placing a bid or proposal for a a bid or proposal for a particular particular   project. During the bidding process the

 project. During the bidding process the contract is made. If PEL wins the ccontract is made. If PEL wins the contract theontract the tender bond automatically becomes performance bond. In case of rejection of proposal tender bond automatically becomes performance bond. In case of rejection of proposal the margin is return to PEL.

the margin is return to PEL.

PERFORMANCE BOND PERFORMANCE BOND This bond is created by con

This bond is created by conversion of tender bond. It remains valid until the version of tender bond. It remains valid until the project isproject is  being work upon b

 being work upon by the party. When the project is completed y the party. When the project is completed by the party, who won theby the party, who won the  proposals the may acquire their margin from the b

 proposals the may acquire their margin from the bank and the bond ank and the bond automatically expire.automatically expire.

RETENTION MONEY RETENTION MONEY In this case a percentage

In this case a percentage of the cost of the total project of the cost of the total project is retained by the bank as ais retained by the bank as a security for the customer. On completion of work b

security for the customer. On completion of work by the contractor, the money isy the contractor, the money is returned to him. In case o

returned to him. In case of failure to complete work the money is credited f failure to complete work the money is credited to customer to customer  account.

account.

COUNTER GUARANTEE COUNTER GUARANTEE

Counter guarantee is used in c

Counter guarantee is used in case of dealings with a foreign party. When ase of dealings with a foreign party. When a local supplier a local supplier  contracts to supply goods abroad he is required to provide security to a scheduled bank  contracts to supply goods abroad he is required to provide security to a scheduled bank  abroad who is in business with the

abroad who is in business with the foreign party. This is done via a foreign party. This is done via a local scheduled bank.local scheduled bank.

The local bank on behalf of the supplier provides assurance to the bank abroad that the The local bank on behalf of the supplier provides assurance to the bank abroad that the work shall be completed. Once

work shall be completed. Once satisfied, the foreign bank assures the customer or satisfied, the foreign bank assures the customer or   provides a guarantee on behalf of the local bank.

 provides a guarantee on behalf of the local bank.

Suppose PEL has a contract with a company in Saudi Arabia. The foreign company Suppose PEL has a contract with a company in Saudi Arabia. The foreign company wants to get a guarantee

wants to get a guarantee of quality performance from PEL. PEL will get a of quality performance from PEL. PEL will get a local bank e.glocal bank e.g  National Bank to give a counter guarantee to a local scheduled bank of Saudi Arabia  National Bank to give a counter guarantee to a local scheduled bank of Saudi Arabia

which will further give guarantee to the foreign company. In completion of contract, the which will further give guarantee to the foreign company. In completion of contract, the  procedure is similar to guarantee. The

 procedure is similar to guarantee. The major portion of the payment is returnable to themajor portion of the payment is returnable to the company ie; PEL. The FED is government income which is forwarded to it. The

company ie; PEL. The FED is government income which is forwarded to it. The commission is the bank income. The

commission is the bank income. The margin infect is returned to the supplier company.margin infect is returned to the supplier company.

BUDGETING BUDGETING

BUDGET PREPARATION METHOD AND APPROACH:

BUDGET PREPARATION METHOD AND APPROACH: