Draft the BG as per the PO/WO terms and conditions and in compliance with companys standard format. Get the draft BG vetted by secretarial and legal department. Forward the draft BG to the vendor. On receipt of BG verify the same. Enter the relevant details in the system about the BG at the time of processing.
All the BGs received with companies name should be kept in safe custody with accounts
MONI TORI NG: Keep the track on the maturity date of the various BG and inform the concerned department. RENEWAL:
If the conditions are not full filled, follow-up with the vendor for renewal of the guarantee or issue of the new guarantee after proper amendment. In case BG has an auto renewal clause, obtain confirmation from vendor, if required to renew. Verify the renewal or extension papers and update it in the system and document it. In case of auto renewal, send a letter to renew the guarantee to the particular bank under intimation RETURN OR CANCELLATION:-
If the conditions of the BG have been fulfilled, inform the accounts department to cancel or return Send original documents to concerned department and also obtain a acknowledgement from the party. Update the information in the System. If there is Non receipt of the reply or Non renewal extension of the BG or violation of the terms and conditions inform the accounts department for the further action. Send the reminder letter to the party under intimation to the concerned department If the BG is not renewed or extended within the specified time then send the guarantee documents to the bank for encashment same will be in case of violation.
Pass the accounting entry for the amount received and update the record relating to the guarantee. ARRANGEMENT OF BANK GUARANTEE: BANK GUARANTEE DOCUMENT:
Prepare a Requisition for BG and get it approved by the respective CMO/ CCC. Forward the approved requisition to the CFD along with the duly filled format for the BG and details about the bank (BG should not be of more than 3 years) Verify the request and send for modification if required. If required BG should be vetted by the secretarial and legal department. Prepare and send the request for the BG along with the draft BG format to the bank. Receive the BG paper from bank and record details like Party details; issue date, Bank details etc. MONI TORI NG:
Keep the trace of BG maturity date Review a report of the BGs expiring in the next 1 month Verify if the particulars BG needs to be renewed then get the report approved by concerned HOD. B.3 RENEWAL/ EXTENSI ON: ` Prepare a request for renewal/ extension and get it approved by CMO/ CCC Forward the approved request to CFD. Verify the request and modify it if required in mutual agreement with concerned department Prepare a request for renewal of the BG and get it signed by authorised signatories and submit it to the bank. Follow-up with the bank for the same once the receipt of same is received forward the document to the concerned department. Update the relevant details in the system for renewal of the original guarantee and forward the original document to the concerned party. The person who is keeping the custody of BG should maintain the extended or renewed documents and also obtain acknowledgement from the party and documents with the original BG paper. CANCELLATION OF BANK GUARANTEE: `
If the conditions are fulfilled, send a letter duly signed by the authority to the party to return Original BG along with no claim certificate. Follow up with the party if required to get back the original BG along with the certificate. When the BG is received it is forwarded it is forwarded to the CFD for cancellation. Submit the BG document to the bank with the certificate and request them to cancel the BG. Now obtain the cancellation certificate from the bank and update the record in the system. Forward the certificate to the concerned department. In case of cancellation of BG before maturity send the request to the bank to reverse the BG charges. Update the record in system to cancel the BG and also ensure that the bank charges are reversed and recorded in the system.