Administration Manual - B.E.S.T. Undertaking.

4. Working detail procedure for Investments :
A. Investment in Treasury Bill :
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i) On ascertaining the available surplus & its duration, if investible period is less than 7
days and above 2 days funds are to be invested in T Bill if available.
ii) Information regarding T Bill :
Treasury Bills are of 91 days, 181 days and 364 days maturity and this maturity is as
per RBI auction and the yield is dependent on market condition at that time. The
Treasury Bills so issued are redeemed by RBI at the stipulated period maturity dates.
The Treasury Bills are purchased from secondary market by inviting quotes through
brokers who are on the approved list of the Undertaking. In this way even for the
less number of days some amount of interest is earned by the Undertaking’s, which
otherwise would have remained idle in the Current Account of Undertaking with
various banks.
While purchasing Treasury Bill from secondary market the Undertaking’s investible
fund is transferred to Undertaking's SGL A/c with Indian Bank/HDFC Bank where
Subsidiary General Ledger Account is maintained. The above two banks are located
in Fort Area. After the deal the banks and the brokers are informed. An offer letter is
given to the Indian Bank,/HDFC Bank who pays to the seller of Treasury Bill, from
our SGL A/c and receives the T Bill Security & debit our Subsidiary General Ledger
Account. Similarly, on the day of maturity of the T Bill, the Indian Bank/ HDFC Bank
receives the maturity proceeds of T Bill from RBI and credits our SGL A/c. This
service is rendered by both these banks on free of cost as a special case.
The settlement date / value date in case of Treasury Bill is next date of
transferring the funds from current account to Indian Bank/HDFC Bank. In other