Claim satlement

“Claim settlement in THDC ”
Summer Training Report submitted to Hemwati Nandan
Bahuguna GarhwalUniversity in Partialfulfillment of the
requirement for the award of
Bachelor & Master Business Administration
By
XXXXXXX
BBA/MBA
(Finance)
Under the supervision of
Mr.NaveenDwivedi
Assistant Professor
Department of management studies
OIMT
Omkarananda Institute of Management
Technology
Rishikesh

(2016-2019)
ACKNOWLEDGEMENT
Completion of any project report is the milestone in the life of every management
student and the success of a live project than enhances the self Confidence of the
student. A successful and satisfactorily completion of any task is the out come of
the direction explicity or implicitly.
I feel grateful thanks to Mr.BR.NAUTIYAL senior account Manager of F&A
Department of THDCIL for his valuable guidance in the project and information
related to my topic claim settlement.
First of all I feel highly indebted to Dr. Rajul Dutt Director of ,O.I.M.T
Rishikesh who supported me during my project work
I am thanks to Mr .Naveen Dwivedi assistant Professor of OIMT Rishikesh.for
his valuable guidance ,advice and encouragement ..
My special thanks are due to all the staff member of OIMT Rishikesh who always
extended their help without which completion to the work even possible .
Finally I show my deep gratitude to my parents ,friends and other family member
for their support and encouragement during the course of the study.
XXXXX
BBA 5th
Sem.

CANDIDATE DECLARATION
I hereby certify that the work which is being presented in the project entitled study
of “Claims settlement in THDC “ in partial fulfillment of the requirement for the
award of degree of BBA in finance submitted in Omkarananda Institute of
Management and Technology from HNB Garhwal University Srinagar is record
my own work carried out for a period of eight week in THDC ,Rishikesh under the
supervision of Mr. Dayal Sajwan (junior executive) under the guidance of Director
Dr. Rajul Dutt and Mr. NaveenDwivedi Professor in O.I.M.T, Rishikesh, is my
original work and that it has not previously formed the basis for the award of
any other degree, Diploma, Fellowship or other similar titles.
Date candidate name
XXXXX

Guide’s Certificate
NaveenDwivedi
Department of Management studies
OIMT, Rishikesh
This is to certify that the Summer TrainingReport entitled “A Study on claims
settlement in THDC” submitted by (XXXXX) is a bonafide record of research
work done by him under my guidance and supervision.
Guide name-; Mr. Naveen Dwivedi
(Assistant Proffesor)

TABLEOF CONTENT
Certificate
Acknowledgement
Preface
Experience during summer training
Chapter I
Profile of the Organization
Chapter II
Introduction of Study
2.1 Meaning
2.2 claims in THDC
2.3 Objectives of the Study
Chapter III
ResearchMethodology
3.1 Research Design
3.2 Source/s of Data
3.3 Data Collection Method
3.4 Date Collection Instrument
Chapter IV
Data analysis and interpretation
Chapter V-: Finding, Conclusion
Bibliography

PREFACE
As a part of my BBA (Bachelor of Business Administration) program I was asked
to undergo forty five day summer training in any organization, so as to give
exposure to practical management and to get familiar with the various activities in
the organization.
Bachelor of Business Administration courses which combines both theory and its
application in the field of management .
As part of this course every aspirant has to undergo ‘’project work”
The purpose of this research project is to expose the students of management with
the happening of real world .
,I was fortunate enough to get this opportunity by taking the project on “Claim
settlement process system” regarding this are of operation every students has to
prepare and submit a report on the working of its project this report is the research
work of the aspirant is an attempt to present an account of practical knowledge of
the same.

OBJECTIVE OF THE STUDY
1.To know about the term of claims.
2. To know the claims settlement in THDC.
3. To know the working process of claims settlement in THDC.
4. To know how to deal/ settle different-different types of claims in THDC.
5. To know the policy regarding claims which are set by the company top
management.

EXPERIENCE DURING SUMMER TRAINING
Experiences make life enjoyable and enriching just as my summer training in
THDC INDIA limited proved to be an asset for me. I got practical exposure in
various aspects of finance and I also learnt the dynamics of work related behavior
of the people working in the organization.
I am very impress from the behavioral approach used by organization
And the employees are very helpful and corporative with everyone. I ca n’t face
any bottleneck during my training period. There are lots of facilities which are
provided to employees like canteen, library ,clubs, various camps, health check ups
facility, employees development programs.
On the whole my summer training was an enriching experience for my future and I
am always obliged to them for giving me such type of knowledge.

CHAPTER 1
Company profile
1.About the corporation
2. Vision/Mission /Values
3. S.W.O.T Analysis
4. Significant Acccounting Policies

About the Corporation
THDC India Limited is a Joint Venture of Govt. of India and Govt. of Uttar
Pradesh. The Equity is shared in the ratio of 75:25 between Go I and Go UP. The
Company was incorporated in July’ 88 to develop, operate & maintain the 2400
MW Tehri Hydro Power Complex and other hydro projects. The Company has an
authorized share capital of ` 4000 cr. THDCIL is a Mini Ratna Category-I and
Schedule ‘A’ CPSE.
The initial mandate of THDCIL was to develop, operate and maintain the 2,400
MW Tehri Hydro Power Complex (comprising of 1000 MW Tehri Dam & HPP,
1000 MW Tehri Pumped Storage Plant & 400 MW Koteshwar HEP) and other
Hydro Projects.
Total installed capacity of THDCIL presently is 1400 MW. THDCIL has two
generating stations namely Tehri Stage-I (4X250 MW) and Koteshwar HEP
(4X100 MW).
The Memorandum and Articles of Association of the Company has been modified
to reflect the current business reality of projects outside Bhagirathi valley. The
object clause has been amended to incorporate development of Conventional/ Non-
conventional/ Renewable sources of Energy and River Valley Projects.
The Corporation has grown into a multi-Project Organization, with Projects spread
over various States as well as neighboring country, Bhutan.

THDCIL presently has a portfolio of 14 projects totaling to an installed capacity of
6071 MW under various stages of implementation / development. The total
operational capacity is 1400 MW.
The 1,000 MW Tehri Power Station was commissioned by THDCIL in 2006-07.
The Tehri Project is multipurpose Project providing electricity to the Northern
Region, Irrigation benefits to Uttar Pradesh, and Drinking Water to NCT of Delhi
and U.P. Due to regulated releases from the Tehri storage reservoir, the existing
downstream hydro projects of the State are also benefiting by way of augmentation
in generation at no additional cost to them.
The 400 MW Koteshwar HEP, downstream of Tehri was commissioned in 2011-
12. The 1,000 MW Tehri Pumped Storage Plant, which is under construction,
would utilize the Tehri and Koteshwar reservoirs as the upper and lower reservoirs.
In addition to the 2,400 MW Tehri Hydro Complex, THDCIL is implementing the
444 MW VishnugadPipalkhoti Hydro Electric Project (VPHEP) on the river
Alaknanda in Uttarakhand. THDCIL is also implementing 24 MW Dhukwan Small
Hydro Project on the Betwa river in Uttar Pradesh. In addition, there are various
hydro projects of THDCIL under Survey & Investigation / DPR preparation.
THDCIL is consistently profit making company since the commissioning of Tehri
Dam & HPP in the year 2006-07.
Government of UP has allotted Khurja Super Thermal Power Plant (2X660 MW)
in BulandshaharDistt to THDCIL for implementation.
Towards diversification of the company into Renewable Energy areas, THDCIL is
constructing 50 MW Wind Power Project at Patan, Gujarat. THDCIL has signed
MoU with Solar Energy Corporation of India (SECI) for setting up Grid Connected
Solar Power Projects up to 250 MW capacity. THDCIL has also signed a tripartite

agreement with SECI and Kerala State Electricity Board for development of 50
MW Solar project in Distt. Kasaragod, Kerala.
Under India-Bhutan Co-operation in hydro Sector development, THDCIL is
involved in implementation of Bunakha HEP (180 MW) as a Joint Venture Project.
The Company has also taken up work of updation of DPR of Sankosh HEP (2585
MW) in Bhutan as a consultancy assignment.
Tehri Dam has been conferred the Prestigious award of “International Milestone
Project” of International Commission of Large Dam (ICOLD) in Oct.’09 at China,
considering the Uniqueness of its design and construction features. Koteshwar
HEP has been conferred the PMI India Best Project Award of the year in long term
duration (More than 3 years) category in 2011-12. Koteshwar HEP has won the
prestigious “5th CIDC Vishwakarma Award-2013”. Koteshwar project adjudged
winner in Category “Best Construction Project” among more than 70 submissions
from all sectors under this category. THDCIL has been conferred the Power Line
Award in the category of 'Best Performing Generation Company (in Hydro
Sector)’ in May 2012. THDCIL has been conferred SCOPE Meritorious Award for
Corporate Social Responsibility and Responsiveness in April’12.
THDCIL has obtained ISO 9001:2008 Certificate of Quality Management System,
ISO 14001-2004 Certification (Environment Management System) and ISO
18001:2007 (Occupational Health and Safety Management System) Certification
for Corporate Office, Rishikesh, Tehri HPP, Tehri PSP, Koteshwar HEP and
VishnugadPipalkoti HEP.

VISION:
A major global player in power sector, providing quality affordable and
sustainable power with commitment to environment ,ecology and social values.
MISSION:
 To plan ,promote, develop hydro as well as other energy resources from
concept to commission and operate power station to meet the growing energy
demand ,ensureing environment and ecological balance contributing to national
prosperty.
 To accept Corporate social Responsibility (CSR) ,including Rehabilitation and
Resettlement of project affect persons (PAPS)with humane face.
 To meet the challenges of dynamically transforming business environment and
settling global benchmarks.
 To build sustainable and value based relationship with stakeholder for mutual
benefit and growth .
 To achieve performance excellence by inspiring a dedicated workforce in all
environment of organization learning and mutual trust.
VALUES
 Zeal to excel and zest for chance .
 Integrity and fairness in all matters .

 Respect for dignity and potential of individuals .
 Ensure speed of response .
 Strict adherence to commitments .
 Foster learning , creativity and team work .
 Loyalty & pride in CPSE.
Objectives :
The corporation’s objectives are as under:
a) Short term objectives :
 Possession of 1200 acre land from UPSIDC to THDC for khurja STPP
(1320MW) and commencement of works.
 Commissioning of 50 MW wind power project in Gujarat.
 Commissioning of 50 MW solar power project in Kerala.
 Formation of joint venture with Bhutanese PSU for implementation of
bunakha HEP.
 To fill up Tehri reservoir up to full capacity 830m EL with the
permission of the Group.
 Plugging of diversion tunnel of Koteshwar HEP.
 Utilization of the available in-house technical and managerial expertise
to take up consultancy assignments as part of business diversification.

b)Medium term objectives
 Commissioning of Tehri PSP (1000MW) by 2019-20.
 Commissioning of Dhukwan SHP (24MW) by 2017-18.
 Commissioning of Vishnu gad Pipalkoti HEP (444MW) by 2019-20.
 To award the contract for 1320 MW Khurja super thermal power
project.
 To commence works of JelamTamak HEL (180 MW).
 To commence works of Bunakha HEP (180 MW),
C) Long term objectives
. To ensure commissioning of the following projects with in Xlllthplan.
SL. NO. NAME OF SCHEME CAPACITY
1. Khurja STPP 1320 MW
2. Bunakha HEP 180 MW
3. MalshejGhats PSS 700 MW
 To reach up to installed capacity of 250 MW in renewable energy sector (wind
power and solar power) up to Xlll plan.
SWOT ANALYSIS
Opportunities and Threats have to be against strength and weakness be analysis
.The SWOT analysis of THDCIL as given below.

A) Strength
 Strong Technical Skill Bases
 Engineering and constructional skills in underground work in complex
Himalayan Geology
 Capable of handling complex issues relating to Environment and R&R
involved in the implementation of Hydro electric generation plant
 Competent and committed workforce
 Sound financial position
B.) Weakness
 Presently confined to Hydro sector only.
 Predominantly State Specific – Project mainly concentrated in only one
State Uttarakhand.
 Procedural constraints associated with Public Sector ownership.
C.) Opportunities
 Untapped Hydro Power potential in India:
 Hydro Power Potential in Neighboring Countries:
 Other conventional/ nonconventional energy resources provide potential for
diversification such as
 Solar energy
 Wind Energy
 CONSULTANCY
D) Threats:
 Time in clearances
 Land acquisition
 Geological uncertainties

 Natural calamities
 Regulatory Risk.
FUTURE OUTLOOK
Capacity Addition:
The future of human prosperity depends on successfully we tackle the energy
challenges facing us today .The future outlook of the company is on the
Sustainable Development focused on :
 Generation of Green ,Renewable power to protect the but
 Environment and safeguard the future;
 Energy Efficiency reduce demand and
 Innovation to promote the emergence of efficient, environmentally friendly
technologies.
Considering the various stages if development of projects the likely
contribution of the company would be 74(24MW XII th plan.
The Company would endeavor to leverage its core competencies in
development of Hydro Resources in various State/Countries ,on its own or
through joint Venture with the State Govt. / other PSUs and Organization in
India and Abroad .
The Company further intend to harness other sources of energy like
Thermal and Renewal. Solar and Wind power .The Company also intend to
offer consultancy to other Govt .Department /PSUs/Developers in various
aspect of Hydropower development , ,survey and investigation ,planning
and development , project management, and operation and maintenance.

PROJECT OF A GLANCE
TEHRI HYDRO POWER COMPLEX(2400MW)
Tehri Hydro Power Complex (2400MW)comprise of the following components :
a. Tehri Dam &Hydro Power -1000MW
b. Koteshwar Hydro Electric Project - 400MW
c. Tehri Pumped Storage Plant -1000MW
Benefits From The Tehri Hydro Power Complex
 Addition to the installed generation capacity in Northern Region :
2400MW
 Annual Energy availability(Peaking) : 5219.82MU
 Command Area :8.74 lakh ha.
 Addition annual generation
in Down Stream Project :200MU
 300 cusecs (162MGD) Of Drinking Water for towns and villages of Uttar
pradesh ,to meet the requirement of about 40 lakh population.
 200 cusecs (108MGD) of drinking water for towns and villages of Uttar
Pradesh ,to meet the requirement of 30 lakh population.
 Flood Moderation .
 Integrated development of Garhwal Region ,including development of
New Tehri Town with provision of all civic facilities : improved
communication ,education, health, tourism, development of horticulture,
fisheries, and afforestation of the region.

SIGNIFICANT ACCOUNTING POLICIES
1. General
The accompanying financial statements have been prepared on the historical cost
basis in conformity with the statutory provisions of the companies Act,2013,
provision of Electricity Act 2013, applicable CERC Regulation and the statement
,standards and guidance notes issued by the Institute of Charatered Accountants of
India from time to time.
2. Use of Estimate
The preparation of financial statement requires estimates and assumption that
affect the reported amount of assets, liabitity ,revenue and expenses during the
reporting period. Although such estimate and assumption are made on a reasonable
and prudent basis taking into account all available information , actual result could
differ from these estimate and assumption .Such differences are recognised in the
year in which the actual result are crystallized.
3. Grants-in -Aid
Grants –in-Aid received from the Central/State Government or other authorities
toward capital expenditure as well as Contribution received from the Consumer i.e.
Government of Uttar Pradesh toward irrigation component of the project cost of
Tehri H.E.P. stage-I is treated initially as capital reserve and subsequently adjusted
as income in the same proportion as the depriciation written off on the assets
acquired out of such contribution / grants-in-aid.
4.Fixed Assets
 Fixed Asset includes intangible assets are stated at their cost of
acquisition / construction .Assets and system common to more than one
generating Unit are capatilized on the bases of engineering

estimate/assessment .However ,Fixed assets acquired/constructed especially
for construction purpose which would get merged with the main fixed
assets or cease to be of use after construction period, are carried as part of
capital work –in-progress of the main items of the Fixed Assets to be
capitalized therewith.
 Fixed assets created on land not belonging to the company ,but under the
control and possession of the company ,are included in Fixed Assets.
 In respect of land acquired through special land acquisition officer (SLAO)/
on lease ,those portions of land are capitalized which are utilized/intended
to be utilised for construction of building and infrastructural facilitate of the
company .Cost of land acquired through SLAQ is capitalized on the basis
of compensation paid though SLAQ or indirectly by the Company
Expenditure on rehabilitation of the out sees of such land is capitalized on
the basis of lease amount paid.
 In case where the final settlement of bills with contractors is yet to be
effected ,but the assets is complete and ready for use , capitalization is
done on provisional basis subject to necessary adjustment in the year of
final settlement.
5. Capital Work-in-Progress
 Cost incurred towards lease amount and rent on lease hold land and
compensation for land and properties etc. used for submergence and other
purpose (such as re-settlement of out sees, construction of new Township
afforestation ,expenses on maintenance and other facilities in the re-
settlement colonies until takeover of the same by the local authorities etc)
and where construction of such alternative facilities is a specific pre-
condition for the acquisition of the land for the purpose of the project ,is
carried forward in the capital work in progress of Rehabilitation .On the
commercial operation of the project the same shall be capitalized as Land-
unclassified.

 Deposit works are accounted for the basis of statements of accounts
received from the Agencies concerned . z
 In respect of supply –cum-erection contracts, the value of supplies received
at site is treated as Capital-Work-in –Progress .
 Claims for price variation in case of contract are accounted for on
acceptance.
 Administration and General overhead expenses of Corporate office /Service
centers attribute to Construction and Fixed assets are identified and
allocated on a systematic basis to Construction projects.
Expenditure during Construction (EDC)(net) including attributable administration
and General overhead expenses of Corporate Office/Services center for the year ,
is apportioned to Capital Work-in-Progress on the basis of accretions thereto and
include in the cost of related assets till they are ready for their intended use.
 Expenditure during Construction (EDC), relating to rehabilitation Work of
Projects is carried forward and is to be dealt in line with Policy No5(i)
6. Borrowing Cost
Borrowing cost directly relatable to acquistion and construction of specific
qualifying assets are capitalised as the part of the cost of such assets upto
the date when such assets is ready for its intended use.
Borrowing cost in respect of fund borrowed generally and used for the
purpose of obtaining a qualifying assets but not directly relatable to specific
Fixed assets during their construction are capitalized. Such borrowing cost
are apportioned on the average balance of capital work in progress for the

year. Other borrowing costs are recognised as expenses in the period in
which they are incurred .
7. Foreign Currency Transaction
 Transaction dealt with in foreign currency are recorded at the rate at which
transacted
 At the balance sheet date,foreign currency monetary items are reported
using the closing rate . Non-monetary items denominated in foreign
currency are reported at the exchange rate ruling at the date of transaction.
 Exchange differences in respect of loan/deposits/liabilities related to Fixed
assets/capital work-in-progress arising out of transaction entered into prior
to 01/04/2004 is adjusted to the carrying cost of respective fixed
assets/capital work-in-progress. However , Exchange difference arising out
of transaction contracted on or after 01/04/2004 are accounted for in
accordance with AS-11(Revised 2003) “The Effect of Change in Foreign
Exchange Rate”.
 Other exchange differences are recognised as income &expences in the
period in which they arise.
8. Depreciation
 Depreciation is charged on straight –line method following rates notified by
the Central Electricity Regulatory Commission (CERC) for the purpose of
fixation of teriff. In respect of assets, where rates has not been notified by
CERC , depreciation is provided on straight line method as per rates
prescribed under the Companies Act in force.
In case of change in cost of asset due to increase/ decreasein long- term liability
on account of exchange fluctuations, award of Courts, etc, revised
prospectively over the residual useful life of the asset.

 Low value items costing up to Rs.1500/-, which are in the nature of asset s
are not capitalized and charged to revenue.
 In respect of Assets costing up to Rs 5000/-but more than Rs.1500/-
(excluding immovable assets) 100% depreciation is provided in the year of
purchase.
 Depreciation is charged from the date the asset become ‘ready for use’.
 Cost of Leasedhold Land is amortized over the lease period.
 Cost of computer Software is recognised as intangible asset and amortised
on straight line method over a period of legal right to use or 5 years, which
ever is earlier .
Machinery spares which can be used only in connection with an items of fixed
asset and whose use is expected to be irregular are capitalized and depreciated
over the residual useful life of the related plant and machinery.
9. Stores & Spares
 Stores and spares are valued at cost determined on weighted average basis
or net realizable value whichever is lower .
 Diminution in value of obsolete and unserviceable stores and spares is
ascertained on review and provided for.
10. Income & Expenditure
Income Recognition
 Sale of energy is accounted for as per final tariff notified by Central
Electricity Regulatory Commission (CERC) . In case of Power Station
where final tariff is not notified ,recognised of revenue is based on the
parameter and method provided in the applicable Regulation framed by the

appropriate authority i.e. CERC . The recognition of revenue would be
independent of the Provisional Rate adopted for the purpose of collection
pending notification of ‘Annual Fixed Charges ‘ by CERC . Recovery
/refund toward foreign currency variation in respect of foreign currency
loans are accounted for on year to year basis.
 Incentives /Disinccentives are accounted for based on the applicable norms
notified/ approved by the Central Electricity Regulatory Commission or
agreement with the beneficiaries . In case Power Station where the same
have not been notified/ approved/agreed with beneficiaries , incentives/
disincentivesare accounted for on provisional basis.
 Surcharge recoverable from sundry debtors for sale of energy and
liquidation damages/ warranty claims are not treated as accrued due to
uncertainty of its realization /acceptance , and are therfore, accounted for
on the basis of receipt.
 Income from consultany work is accounted for on the basis of actual
progress/ technical assessment of work executed or cost reimbursable in
line with terms of respective consultancy contracts.
 Interst earned on advance to contractors as per term of contract,, are reduce
from cost incurred on construction of the respective asset by credit to
related Capital Work-in-Progress Account.
 Value of scrap is accounted for at the time of sale.
 Insurance claims are Accounted for in the year of receipt/ acceptance by the
insurer/ certanity of realizaation.

Expenditure
Cost of store and spares used on repairs and maintenance are charged to the
Repairs and Maintenance Account.
 Prepaid expenses and prior period expences/ income of items of
Rs10,000/- or below in each case,are charged off to the natural heads of
accounts.
 Net income /expenditure prior to Commercial operationis adjusted directly
in the cost of related assets and systems.
 Preliminary expences on acount of new projects incurred prior to approval
to feasibility report are charged to revenue.
 Amount at appropriate % of profit of previous year as prescribed under
DPE gidelines is set aside as non lapsable fund for Research and
Development .
 Expenditure on CSR activities shall be mad eas per the provision of Section
135 of the companies Act 2013 . Any unspent amount shall be set aside as
non-lapsable fund as per DPE guidelines
 Provision for doubtful debts / advances/ claims outstanding over three years
(except Goveernment dues) is made unless the amount is consider
recoverable as per management estimate .However , Debts/ advances /
claims shall be written off on case to case basis when unrealisability is
finally established.
11. Employee’s Benfits.
 Liability for retirement benefits to employees in respect of grauity ,leave
encashment and post retirement medical benfits , baggage allowance
,mement to retiring employees and funeral expenses etc. as defined in AS-
15 is accounted for on accrual basis based on actuarial valuation
determined as at the year end.

 The company has established a separate Trust for adminstration of
Provident Fund and the company contribution to the Fund is charged to
expenditure every year . The liability of the company in respect of shortfall
(if any) in interest on investment is ascertained and provided annually on
actuarial valuation at the year end.
12. Miscellaneous Expenditure
Deferred revenue expenditure is being fully charged in the year of expenditure.
13. Cash flow statement
Cash flow statement is prepared in accordance with the indirect method prescribed
in Accounting Standard (AS)3 on Cash Flow Statement.
14. Taxes on income
Taxes on income for the current period is determined on the bases of taxable
income under the Income Tax Act,1961. Defferred tax is recognised on timing
differences between the accounting income and taxable income for the year and
quantified using the tax rates and laws enacted or substantively enacted as on the
BalanceSheet date. Deffered tax assets are recognised and carried forward to the
extent there is a reasonable certainity that sufficient future taxable income will be
available against which such deffered tax assets can be realised .Deffered Tax
Recovery Adjustment Account is credited/dabited to the extent tax expense is
chargeable from the Beneficiaries in future year on actual payment basis.

Introduction to claims
Claim Settlement
Claim is the one of the most important services that a company can provide to its
employees.
Claims is a legal document or assertion by claimant for compensation ,payment or
reimbursement for a loss under a company policy .
Claim Can Be Defined as
 A demand for ,or an asertion of right to compensation.
 An intimation of an intention to seek compensation or damages.
Claims is a formal request for the company by there employees and the
company also asking for payment based on the terms of the company’s policy .
The company review the claims and related claims policy for its validity and
then party once approved.
Claims cover every thing from death benefits on life insurance policies,
employee personal claims and departmental claims, and third party claims
also.
As assertion of a right(as to money or properly).’His claim asked for damages
an assertion that something is true or factual’.,’his claim that he was
innocent’.”evidence contracted the government claims.”
“demand for something as rightful or due; “.
CLAIMS SETTLEMENT
According to company policy, claims facilities are provided to their employees
.so that existing empolees gets the different different claims facilities.
IN THDC there are two type of claims
1. Employee Claims
2. Outsider claims

 Employee claims: Employees claims are the claims that
are set by the company itself for their employee according to their
company policy to claims for compensation.
Employees claims are of two type
 Personal claims
 Departmental claims
1. Personal claims :personal claims are the claims in which
the employee claims for compensate on the company for their personal
reason .According to the company policy. Every company have some
facilities to compensate for their personal reason.
Personal claims are of three type:
 Medical claims
 Tour and travel claims
 Ltc claims
MEDICAL CLAIMS :medical claims
are the claims in which the employees are want a
compensation by claiming the the company for illness
,sickness ,any diseased , any accident etc.
Rules for medical claims ;

1. claims settlement must be settled under personnel departmental
policy which are set by the company .
2. Medical claims facilities are provided to the employee of the
company and his/her family member which they are mention in their
company document.
3. payment of fees of the doctor according to the doctor degree MBBS
,POST GRADUATION , MS/MD (SUPER SPECILIATION) .
4 .payment according to OPD (outdoor patients) and IPD (indoor
patients)
Steps for file a claims:
1.Claims intimation/ notification:
The claimant must submit the written intimation in the company.
2. Document required for claim processing:
The claimant will be required to provide a claimant’s statement
.claimant should submit bills like medicine bills, different-different type
of test bills , doctor fees bills and different-different type of report bills etc.
3. Submission of required document for claims processing:
For faster claim processing , it is essential that the claimant submits
complete documentation as early as possible .company will not be able to
take a decision until all the requirement are complete . once all relevant
documents , record and form have been submitted ,the company can take a
decision about the claim.
4. Settlement of claims :

After checking all the form , document and record of bills next step is
to consolidate bank/ cash voucher is passed as per the format of voucher
prescribed by the vender.
This voucher is send to the authority who has the power as per provide by
the firm / entity .
Next this voucher is posted in the same format , so that the necessary
entries may become in the concerned account head.
Next- check is issued in the name of party/ employees for whom
the bill has been passed.
 Check bills
 Journal entry
 Cash management
 Bank work
 THDC account cr.
 Other party account dr.
Medical claim requirement:
1. Claim form issued by the company and supporting document.
like medicine bills, other test bills, various report etc.
2. Copies of medical record ,Test reports ,discharge summary etc.
Tour and travel claims:
According to tour and travel claim the employees of the company claim for
compensate the company .In tour and travel claim settlement some policies are
made by company for their employees in which.

If a employee are a salaried member of staff & and travel an official business tour.
Then you are entitled to a reimbursement of your travel and accommodation cost
.
According to the official business travel reimbursement regulation.
In THDC if a employee are entitled to have official travel and subsistence
expenses , reimbursement under the term of company policy.
Rules for tour and travel claims ;
1.claims settlement must be settled under personnel departmental
policy which are set by the company .
2 .Tour and travel claims facilities are provided to the employee
of the company not any one else.
3. Compensation for claims should be reimburse only if the
purpose of tour is official only.
3. payment of claims should be on set policy such as business
class tickets of any transportation mode.( airways ,railways etc.)
.

The claimant will be required to provide a claimant’s statement .claimant
should submit bills like ticket of modes of transportation , residential bills,
bills of fooding , etc.
complete documentation as early as possible. Company will not be able to
take a decision until all the requirement are complete once all relevant
After checking all the form , document and record of bills next step is to
consolidate bank/ cash voucher is passed as per the formate of voucher
the firm / entity.
Next this voucher is posted in the same format , so that the Necessary entries
may become in the concerned account .
Next- check is issued in the name of party/ employees for whom the bill has
been passed.
 Check bills
 Journal entry
 Cash management
 Bank work

LTC (Leave travel consection)
This is the only claim in which THDC sets some policy for employee and their
family . Earlier in THDC LTC claim are settle as a personal employee claims but
now a days LTC claims are settle in their salaries account .
In THDC LTC is the facilities that the company give to their employee and their
family a destination tour in the end of the year and according to their performance
during the year.
2. DEPARTMENTAL CLAIMS
Departmental claims are the claims in which the department of the company
claims for compensate on their department . THDC provide some facilities for
department for compensate on some term .
Departmental claims are done under department to department only . This the way
by which top level management , middle level management, lower level
management.
Departmental claims are of three types:

 Permanent imprest claims
 Temporary imprest claims
 Misliniouss claims
PERMANENT IMPREST CLAIMS
Permanent imprest claims are the claims in which a company department give a
permanent amount of fund to the cash management department in the starting of
the month and cash management department settle some claims which are fixed
on every month.
THDC give some electronic gadgets facilities to the employee of the company
these gadgets includes like mobile , laptops, pendrive and and many other personal
things to their employee as per the company’s policy .
And if the gadgets needs repairing and it damaged or not working properly from
their guaranty period from 3 year to 5 year then employee of the company can
claim for new allowances of the gadgets as per company policy .
Then company use the amount of permanent imprest fund for resettlement their
claims
Rules For Permanent Claims

Claims should be settle only on the mobile, laptops, pendrive and othere personal
things provide by the company to their employee
The claimant will be required to provide a claimant’s statement .claimant
should submit bills like repairing bills, different-different type of bills on
which dates the gadgets was handle to the employees , etc.
3. Submission of required document for claims
processing:
consolidate bank/ cash voucher is passed as per the format of voucher

the firm / entity .
Next this voucher is posted in the same format , so that the
Necessary entries may become in the concerned account .
Next- check is issued in the name of party/ employees for whom the
bill has been passed.
 Check bills
 Journal entry
 Cash management
 Bank work
TEMPORARY IMPREST CLAIMS
Temporary imprest claims are the claims in which a company department give a
temporary amount of found to the cash management department in starting of the
month.
And cash management department settle some claims which are not fixed and
generated under some condition
Temporary imperest claims generated when the company organized some function
cultural programe etc.

According to the temporary imprest . THDC gave different funding facilities for
organizing different type of programe and function in thdc on different occation .
For the settlement of these type of claims thdc provide temporary imperest claim
for compensate these type of claims by the organization.
Temporary imprest claims provide immediate fund for settle employees claims.
RULE FOR TEMPORARY IMPREST CLAIMS
 Temporary imprest claim settle only for organizing function and
culture programmes .
 Estimate budget should maintain for organizing the whole activities.
 A valid reason are given to the company for organizing
 Bills, receipt and account of the whole programme should prepared
for matching the actual and estimate budget at the end .
.claimant should submit bills like repairing bills, different-different type
of bills on which dates the gadgets was handle to the employees , etc.

consolidate bank/ cash voucher is passed as per the format of voucher
the firm / entity .
Next- check is issued in the name of party/ employees for whom the bill has
been passed.
 Check bills
 Journal entry
 Cash management
 Bank work
Misceleneous claims

Misceleneous claim are the claim in which department claims on department for
compensate .
Misceleneous claims is the lumsum claims that generate in the front of auditors ,
top management like CEO ,Chairmen , MD etc
Expenses that face THDC in front of top level for arranging fooding, for staying ,
and other facilities . These expenses come under misceleneous claims.
THDC also provide mobile canteen facilities , the whole thdc use these facilities
as TEA, COFFEE , BISCUITS etc .
RULES FOR MISCLENEOUS CLAIMS
 Only lumsum expenses are settle in miscleneous claims.
 Bills, receipt and account of the whole programme should prepared
for matching the actual and estimate budget at the end .

.claimant should submit bills like repairing bills, different-different type
of bills on which dates the gadgets was handle to the employees , etc.
After checking all the form , document and record of bills next step is
to consolidate bank/ cash voucher is passed as per the format of voucher
the firm / entity .
Next- check is issued in the name of party/ employees for whom the
bill has been passed.
 Check bills
 Journal entry
 Cash management
 Bank work
 Other party account dr

OTHER PARTY CLAIMS:
Other party claims are the claim in which the outsider party claims on the
company for compensate in monetary term for their services provided.
IN thdc the other party are construction dealer , service provider, likes ,
electricity providers and long term assets provider like AC computer and
other machiner
IN thdc there are two type of other party claims
 Purchase claims
 Resettlement and Rebursement claims
Purchase claims:
Purchase claim are the claims by outsider party for the purchase of long
term and short term assets like machinery & equipment like computer and
AC etc .
Resettlement and Rebursement claims:
RR claims is settle before the establishment of thdc .They provide some
resettlement policy like “LAND ON LAND” and other monetary helps to
the people lived in puranitehri
Other party claims are comes under project and service department
Process of settlement of these claims
 Administrative approval
 Detailed estimate
 Technical sanction
 Allotment of fund
OBJECTIVE OF THE STUDY
1.To know about the term claims.
2. To know the claims settlement in THDC.
3. To know the working process of claims settlement in THDC..

4. To know how to deal/ settle different-different types of claims in thdc.
5. To know the policy regarding claims which are set by the company top
management.
Chapter 3
RESEARCH AND
METHODOLOGY

METHODOLOGY
The research was conducted over a period of 45 Days based on the financial
parameter. The research methodology adopted for the proposed study includes the
following:-
Research Design: -In the study descriptive research design has been
used. As descriptive research design is the description of state of affairs, as it exists
at present. In this type of research the researcher has no control over the variables;
he can only report what has happened or what is happening
In the present study descriptive research design is adopted, As the purpose of the
research is to describe payroll , its function, process involved in payroll
management system at THDC, various rules and policies, computation of Pay roll
in THDCIL COMPANY .
Research area :-In Tehri Hydro Development Corporation India limited .
Data Type:- The present study is based on secondary data.
The secondary data are those which have already been collected by someone else
and which have already been passed through the statistical processes. When the
researcher utilizes secondary data then he has to look into various sources from
where he can obtain them. For e.g. books, magazine, newspaper, internet,
publications and reports.
In this study data have been taken from various secondary sources like:
 Internet
 Books
 Magazines
 Newspapers

 Journals
Data Source :-The date was collected through the THDCIL company
website , Some Books , Internet, Magazines, Newspapers, Journals personal
observation etc.
Data Analysis Tools: - Data is analyzed by using MS- Word, MS-
Excel , Pie chart .
Research methodology is a way to systematically solve the problem. It is a game
plan for conducting research. In this we describe various steps that are taken by the
researcher.
“All progress is born of inquiry. Doubt is often better than overconfidence, for it
leads to inquiry and inquiry leads to invention.”
Research in a common parlance is a search for knowledge. Research is an art of
scientific and systematic investigation. Thus research comprises defining and
redefining problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data, making deductions and reaching conclusions.
Research methodology is the arrangement of condition for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research Methodology is the conceptual structure within
which research is conducted. It constitutes the blueprint for the collection
measurement and analysis of the data.
Research methodology is a framework for the study and is used as a guide in
collecting and analyzing the data .It is a strategy specifying which approach will be
used for gathering and analyzing the data .it also includes time and cost budget
since most studies are done under these two constraints. The research methodology
includes overall research design, the sampling procedure, the data collection
method and analysis procedure.

TYPE OF RESEARCH USED:-
Descriptive Research
In the study descriptive research design has been used. As descriptive research
design is the description of state of affairs, as it exists at present. In this type of
research the researcher has no control over the variables; he can only report what
has happened or what is happening
Descriptive research designs are those design which are concerned with describing
the characteristics of particular individual or of the group. In descriptive and
diagnostic study the researcher must be able to define clearly what he wants to
measure and must find adequate method for measuring it.
This type of Research Design must focus on following
 Formulate the objective of the study
 Designing the method of data collection
 Selecting the sample
 Collection the Data
 Processing and Analyses the data
 Reporting the findings
DATA COLLECTION
The task of data collection is began after a research problem has been defined and
research designed /plan checked out. Data collection is to gather the data from
population. The data can be collected of two types.
1. Primary Data

2. Secondary Data
 Primary data:- The data which are collected fresh for the time and this
happened to be originally in character. Primary data has been used in this
study.
 Secondary data:- The data which have already have been collected by
someone else and which have been passed through the statistical tool. In
the present study the secondary data has been referred to and use for
analysis . it has been collected from the company files, annual reports
 There are many ways of classifying data.
 A common classification is based upon who collected the data.
Primary Data
The primary data are those, which are collected afresh and for the first time, and
thus happened to be original in character. We can obtain primary data either
through observation or through direct communication with respondent in one form
or another or through personal interview.
PRIMARY
DATA
SECONDRY
DATA
TYPES OF DATA

Secondary Data
The secondary data on the other hand, are those which have already been collected
by someone else and which have already been passed through the statistical
processes. When the researcher utilizes secondary data then he has to look into
various sources from where he can obtain them. For e.g. books, magazine,
newspaper, internet, publications and reports.
In this study data have been taken fromvarious secondary sources like:
 Internet
 Books
 Magazines
 Newspapers
 Journals
Some Features of Secondary Data
 It saves time
 It is always be in finished form
 It is adjusted for the objective
 It is collected through other person
I choose the project of claim settlement in THDC. I discussed the project with my
instructor Mr. Dayal Sajwan in THDC and my guider Mr. Naveen Dwivedi in
OIMT.
He approved the project after that: a simple course of action has been followed for
Claim settlement in THDC on this report the entire information and data are
gathered from the respective Annual reports of THDC IL Rishikesh. All the facts
and figures Are taken from their Policies reports and files of the respective year
and the other internal document which are personally shown by the members of
company.
My Instructor provide a great help. He made the facts and figures possible to
under stand and ask query from that person who can answer it best than any body
else in the company. This data engagement was carried out in accordance with pay
roll standards. Various pay scale policies files last year annual report.

Chapter 4
DATA ANALYSIS
AND
INTERPRETATION

DATA ANALYSIS
Analysis of data is a process of inspecting , cleaning , transforming and modeling
data with the goal of discovering useful information , suggestion conclusion and
supporting decision making . Data analysis has multiple facts and approaches,
encompassing diverse techniques under a variety of names , in different business ,
science , and social science domains.
I analysis the data with personal observation and secondary data like companies
policies regarding claims , annual report of thdc, journal books , internet.
In THDC there are two type of claims:-
 Employees claims
 Other party claims
 Employee claims are of two type:-
 Personal claims
 Departmental claims
 Personal claims are of three types:-
 Medical claims
 Tour &travel
 Ltc (leave tour compensation)

Departmental claims are of three types:-
 Permanent imprest claims
 Temporary imprest claims
 Misceleneous claims
 Other party claims:-
 Purchase party claims
 Resettlement and Reimbursement.
Different different claims are different different type of policy sets by the
company top management for settling their employee claims

FINDINGS
 THDC have differentdifferenttypesof claimslike medical ,tour&
travel , LTC , permanentimprestclaim,temporaryimprestclaims
miscellaneous claim,purchase claims,RRclaims.
 Process of claims settlement starts from filling a claims form which
are set by the company . After that manual work start for claims .
Employee of the F&A department check the claims are fill with the
according to the rule and regulation as per company sets for next
after processor .After checking the bills computerized work start for
further process.
 Policy of claims settlement in thdc is different different according to
claim ,the different- different claims have different different policy.
 They fulfill their claims of their employee with good policy
regarding claims settlement set by company policy.

Conclusion
After the whole study of claims settlement in THDC . I reached to the
conclusion that THDC provide various facilities regarding claims to their
employees . THDC fulfillment the basic need of the employee . Employee gets
various compensation facilities on different claims . THDC provide various claims
like
 Employees claims are two type
 Employees personal claims
 Departmental claims
 Other party claims
 Purchase party claims
 Resettlement & reimbursement claims

Bibliography:
WWW.Thdc. Govt.in
www. Google .com

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