Finance & Accounts Departments (FA&CAO Office) Welcome you to the Vendor Meet

 Import Finance  Store Finance  Store Bill Three Sections of Accounts directly related with the Vendors

Store/Import Finance Mainly Concerns with  the Vetting of Purchase Order after TC Acceptance  Concurrence & Vetting of Modification Advice which are having Financial Implication and Needs to Change Original PO Conditions like deferment/ refixation of DP, Increase/ Decrease of Quantity, Changes in the Tax Rate and any other conditions.  Vetting of PVC

Import Finance Deals with  Letter of Credit Against any Purchase order of DLW for supplies by foreign supplier the Letter of Credit (LC) are being opened after receipt of unconditional acceptance of PO by the firm. Against any Purchase order of DLW for supplies by foreign supplier the Letter of Credit (LC) are being opened after receipt of unconditional acceptance of PO by the firm. Railway Board has authorized only Public sector banks to open the LCs for foreign suppliers. Railway Board has authorized only Public sector banks to open the LCs for foreign suppliers. In DLW LC is being opened only through SBI. In DLW LC is being opened only through SBI.

Letter of Credit  LC Charges : All banking charges in India and the country of the vendor will be borne by the Purchaser However the following will be exception to this rule:- All banking charges in India and the country of the vendor will be borne by the Purchaser However the following will be exception to this rule:- (I ) If the vendor chooses his own LC advising / negotiating bank and confirming bank, then foreign banking charges will be borne by the vendor. (I ) If the vendor chooses his own LC advising / negotiating bank and confirming bank, then foreign banking charges will be borne by the vendor. (II) All expenses on account of amendments to LC on behest /request of the vendor will be borne by the vendor. (III) The vendor will not choose the Applicant bank (i.e. LC opening bank ) in India. This will be decided by the DLW in accordance with DLW’s banking and administrative procedures. If vendor does so they will have to bear India bank charges also..

Letter of Credit  LC Opening Charges : Quotations are called yearly (for financial year) from Public Sector bank to open the LC and Bank is selected on the basis of lower rates and their performance. LC is being opened by DLW on SBI as their rates found minimum. LC opening charges are levied by Bank as per their norms and over and above there are some other charges like swift charges, commitment charges, amendment charges (In case of any amendment is being issued). Quotations are called yearly (for financial year) from Public Sector bank to open the LC and Bank is selected on the basis of lower rates and their performance. LC is being opened by DLW on SBI as their rates found minimum. LC opening charges are levied by Bank as per their norms and over and above there are some other charges like swift charges, commitment charges, amendment charges (In case of any amendment is being issued).

Letter of Credit  Nature of Discrepancy found by bank due to variation in documents submitted by the firm against LC which are illustrative and not exhaustive :- (i) Certificate of Country of Origin not as per LC. (ii) LC Expired. (iii) Required Certificates not submitted./not in original /unsigned. (iv) Late Shipment. (v) Shipment not as per DP of LC/PO. (vi) Air Freighting done by the firm without approval of DLW. (vii) Original WTC not submitted. (viii) Late Presentation of shipping documents. (ix) WBG not submitted by the firm alogwith negotiating documents, if required as per LC. (ix) WBG not submitted by the firm alogwith negotiating documents, if required as per LC. (x) Draft amt. and invoice value differ. (x) Draft amt. and invoice value differ. (xi) PO No./LC No. not mentioned in negotiating documents / difference in PO or LC number etc.

Exchange Rate Variation  As per codal provision vide para 2828(e ) the exchange rate variation on higher side, if, any, will be on firm’s a/c. Accordingly on mutual agreement with DLW and firm following clause have been included in the PO:- (i) If discrepant documents on account of firm’s fault/ discrepancy are received and discrepancy is reported to DLW, any adverse financial repercussion due to the exchange rate variation during the period up to seven days from the date of acceptance of discrepancy by stores department of DLW, on higher side, if any shall on firm’s account. (i) If discrepant documents on account of firm’s fault/ discrepancy are received and discrepancy is reported to DLW, any adverse financial repercussion due to the exchange rate variation during the period up to seven days from the date of acceptance of discrepancy by stores department of DLW, on higher side, if any shall on firm’s account. (ii) It has been confirmed by railway board, vide their letter no. 2012/f(s) –i /misc/7 dated which will be incorporated further in bid document (already vetted) and is being incorporated in all the tenders issued after (ii) It has been confirmed by railway board, vide their letter no. 2012/f(s) –i /misc/7 dated which will be incorporated further in bid document (already vetted) and is being incorporated in all the tenders issued after

Store Bill  Mainly Deals with Passing of Bills for Materials Received thru Purchase Order Issued by COS Office.  Bills are directly received by Store Bill Section from Vendors  Up to date Bill Passing positions are put up in the DLW Web Site  Bill is scrutinized as per P.O. clause and if found correct is all respect the bill is passed.

Store Bill  The reason to return the bill to the firm. a). If Vender Code has not been linked with EFT Bank master through EFT Mandate form which is submitted along with cancelled cheque. i). New business. ii). Firm’s Vendor Code has been changed. iii). Firm has changed the dealing Bank and Bank A/c No. not submitted new bank detail through EFT Mandate Form. b). If firm has not submitted B.G/ S.D as per P.O. clause or B.G submitted to COS office but not submitted to Accounts by COS office after vetting of B.G from Law officer and Bank s confirmation.  c). Bill not submitted along with proper documents as per P.O. clause.

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